RAPAPORT… Business was good for gem and pearl dealers at the American Gem Trade Association (AGTA) GemFair Las Vegas, held June 3 through 7. Although traffic was lighter than expected, most exhibitors acknowledged that the mood was upbeat, and people were buying, albeit cautiously. Companies with unique products offering great value reported solid sales, as well as those selling higher-priced rarities.
The general consensus was that the worst of the recession is over and people were looking to spend. But most agreed that sales would not revert to prerecession patterns. “Jewelers are more careful in how, what and when they buy,” described Niveet Nagpal for the Los Angeles–based Omi Gems. “They’re not buying merchandise because things are going well. They’re spending their money more thoughtfully on things that really work for them.”
While JCK show organizers reported a 20 percent increase in attendance, many exhibitors in the AGTA section did not think traffic reflected that claim. “It was not as busy as we would have liked,” said Betty Sue King of King’s Ransom in Sausalito, California. While she described sales as “not amazing,” she was, however, encouraged by a “30 percent increase in new customers” at the show.
Eric Braunwart, Columbia Gem House/Trigem Designs, Vancouver, Washington, noted that while the major retailers appeared to be out in force, the number of independent jewelers in attendance seemed to have declined. King said many of her regular customers did not come to the show this year, some of whom she delivered orders to prior to coming to Vegas.
Buying Trends
Sales at the AGTA show reflected three buying trends: fun, inexpensive items; unusual products for great value and larger, more expensive gems.
Of particular interest to buyers were freshwater pearls. “That’s the price point jewelers are selling,” said Jack Lynch of San Francisco–based Sea Hunt Pearls. “Large, lustrous baroque freshwater pearls sold very well for me because of their terrific perceived value — a big look, great quality and good price points.” Called “fireball” in the trade, these pearls are formed by inserting a bead nucleus in an existing pearl sac during second nucleation. Strands wholesaling for $400 to $700 are best sellers.
King noted that buyers especially gravitated to dyed pearls: 9 mm to 10 mm camel taupe, round, keshi petal, top-drilled, at $150 a strand retail; 9 mm by 30 mm tropical deep blue-green sea biwa, at $110 a strand retail and 8.5 mm by 9.5 mm copper keshi flakes, at $70 a strand retail.
Larger sizes of King’s Chinese freshwater coin-shaped pearls in natural color, high luster and metallic sheen sold out — from 22 mm to 28 mm by 38 mm to 60 mm, retailing at $1,900, and 4 mm to 5 mm by 22 mm to 39 mm, retailing at $720. King also had natural-color peach, pink and purple coin pearls, 16 mm to 17 mm, center drilled on strands — what she calls “coin collars” — and the largest keshi pearls she’s ever found, 18 mm by 35 mm to 60 mm — described as “watercolor keshi sculptures.”
Reporting a “gangbuster show” selling lesser-known gems, Bill Heher, Rare Earth Mining Co., Trumbull, Connecticut, cited “skylite” hemimorphite, carasite, variscite, prehnite, azurite and rare black jade with magnetite crystals.
“Snowball jasper was one of our best sellers,” Heher said, noting that his company works with 300 different gems, 50 of which are drusy styles. “Designers and custom jewelers who work with these gem types love them for their unique look but also because they cannot be price-shopped. There is zero competition. The wholesale prices are great and the markups for jewelers are even better.” Also popular are drusy gem rings, pendants and bangle bracelets set in exotic wood with 18-karat gold accents, wholesaling below $150.
Growing demand for fair trade gems, said Braunwart, drew younger designers to his booth. His company initiated fair trade practices in 2001 that protect and support workers and the environment, tracking gems from mine to market. Its portfolio of fair trade gems includes such branded products as Nyala ruby and sapphire from the Chimwadzulu Mine in Malawi and Cortez pearls, saltwater cultured pearls from the rainbow-lipped Pteria sterna oyster, native to Mexico’s Sea of Cortez. “Being able to purchase a beautiful item that also does good in the world has become increasingly important to consumers,” Braunwart said. Although there were more inquiries than sales at the show, he was encouraged by the great interest.
Rare large gems, untreated gems and specialty gems continue to sell well. Nagpal reported more action for larger, expensive stones in ruby, sapphire and emerald, as well as interesting material like alexandrite and spinel.
Bill Larson of Pala Gems International, Fallbrook, California, concurred, relating that mostly finer, high-end items moved. “We sold finer-quality gems like demantoid, blue and pink sapphire, Mozambique Paraiba tourmaline, rubellite and one outstanding 26-carat fine opal gem.”
