Friday, October 23, 2009

Pearl prices, supplies adjust with recession

By Catherine Dayrit with National Jeweler



Pearl prices fell earlier this year amid poor economic conditions, but experts say both prices and demand are rising as supply adjusts and the category gains fashion fans.Design Trends: A new generation is eyeing pearls, thanks to the emergence of boldly colored pearls, which began with "chocolate" pearls and moved on to vivid green and blue "peacock" hues, says Kathy Grenier of the Cultured Pearl Association of America (CPAA), also citing sterling silver with pearls and long, versatile strands.Supply and Demand Issues: While the prized Japanese akoya enjoys greater demand than its Chinese counterpart, supplies of both have suffered. Chinese akoya farms were hit hard by typhoons, including Typhoon Pabuk in 2007, resulting in tremendous losses, says Peter Bazar, vice president of the CPAA and president of Imperial. And while Japanese akoyas continue to be dogged by pollution, the industry is paying attention to Mikimoto, which announced in August that its new successful akoya farming venture in Ainoshima, Japan, heralded a new advance in Japanese pearl production. Production is limited, but if the process is deemed an improvement, it will be adopted, Bazar says.Interest remains in Tahitian and South Sea pearls, but the volume demand is less, says pearl purveyor Betty Sue King of King's Ransom.Price Points: While poor demand led farm levels to plummet precipitously over the first half of this year, prices are now rising fast as supply adjusts to the market, says Bazar.At the entry level, freshwater pearls remain a major option. Pollution and overproduction have led to a proliferation of low-quality freshwaters on the market. Yet high-quality versions, competing in size with akoyas and even South Sea varieties, provide value for those seeking a big look for less, says Sea Hunt Pearl owner Jack Lynch, adding that Tahitian pearl prices decreased earlier this year and that the sector saw a few Tahitian pearl farmers go out of business. With limited supply, both demand and prices for Tahitians are expected to increase.

Source: National Jeweler
www.dillonpearl.com

32-carat Annenberg astonishes at auction

An anonymous buyer paid $7.7 million for the 32.01-carat Asscher-cut Annenberg Diamond at Christie's on Wednesday. The stone features D color and flawless clarity.


New York--In an event Christie's is terming "an auction to remember," an anonymous buyer paid $7.7 million for the 32.01-carat D-flawless Annenberg Diamond on Wednesday, well surpassing the stone's estimated sale price of $3 million to $5 million.The diamond, owned by philanthropist Leonore "Lee" Annenberg, who died in March at the age of 91, was mounted in a ring by Manhattan jeweler David Webb.Its sale set a new, world-record auction price of $240,000 per carat for a colorless diamond, according to Christie's.
Overall, Christie's "Jewels: The New York Sale and the Annenberg Diamond" and "Rare Jewels and Objets d'Art: A Superb Collection" held on Wednesday in New York City, totaled $46.5 million and achieved a combined sell-through rate of 85 percent by lot and 94 percent by value.In a press release, Rahul Kadakia, head of jewelry at Christie's New York, said the activity at the auction defied these recessionary times."For three-and-a-half hours, between 10:00 a.m. and 1:30 p.m. on Oct. 21 at Christie's, it was as if the recession never happened," he said.
"Virtually every lot exceeded its estimate, and the $7.7 million Annenberg Diamond astonished even the most seasoned diamond dealer. It was an auction to remember. And if this were not enough, the sale started again at 2:30 p.m. and continued until 7:00 p.m., giving collectors opportunity to acquire exceptional masterpieces from the superb collection of Rare Jewels and Objets d'Art."Also sold on Wednesday was a 16.33-carat circular-cut diamond with E color and flawless clarity, purchased by a private Asian dealer for $1.6 million, or $97,000 per carat.
Among the pieces exceeding estimates were a belle epoque diamond and rock crystal bow brooch by Cartier, which was expected to fetch between $200,000 and $300,000, but was purchased by a member of the U.S. trade for $1.1 million, and a Harry Winston emerald and diamond necklace, circa 1956, expected to fetch between $500,000 to $700,000 that sold for $950,500.

Source : National Jeweler, October 22, 2009
www.dillonpearl.com