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Sponsored by De Beers: institute.debeers.com

Show Notes

01:45 Tiffany’s Night to Remember
12:53 Smart Ways to Harness AI
21:3: All Eyes on JCK Las Vegas

Episode Credits
Hosts: Rob Bates and Victoria Gomelsky
Producer and engineer: Natalie Chomet
Plugs: @jckmagazine; institute.debeers.com

Show Recap

A night to remember marks the dawn of a new era for Tiffany & Co.
The April 27 fete for Tiffany & Co.’s reopened New York City flagship was even flashier and splashier than expected, Victoria reports. Close to 1,200 guests attended, and tourists thronged Fifth Avenue to catch a glimpse of A-listers like Blake Lively, Zoë Kravitz, and Mark Wahlberg on the red carpet.

After more than three years in the works, the spectacular new flagship looks nothing like the Tiffany’s store of old, Victoria says. The Landmark, as Tiffany now calls its store, is filled with light wood, glass, digital screens, artwork, a dramatic curvilinear staircase, and, of course, beautiful jewelry. Victoria’s first stop was the seventh floor, which houses gemstone masterpieces like Bird on a Rock brooches and the Patek Philippe salon. Nearly as awe-inspiring as the gems was the sheer amount of wealth of the guests in attendance, she says.

The Fifth Avenue icon was long venerated as a democratic slice of Americana, Rob notes—a place where anyone could feel at home admiring the pieces on display. He wonders if the Landmark will be as welcoming. That depends on what kind of person you are, Victoria surmises. Sleek and grand, this indisputable temple to luxury may well intimidate certain shoppers. Then again, it’s bound to be a tourist attraction—and there are affordable items to be had, she notes. (The entry price for a silver Return to Tiffany bracelet is $250.) For those confident or curious enough to be undaunted by the glamour, Victoria says it’s well worth going up to the seventh floor to admire the art, the homages to Tiffany windows, and the digital Audrey Experience—with a replica of Audrey Hepburn’s black Givenchy dress from Breakfast at Tiffany’s and original notes from the Truman Capote novella that inspired the film.

Want more detail? Read Victoria’s report on the party.

AI update: smart ways to harness artificial intelligence
Next, Rob shares highlights from the recent American Gem Society Conclave, where he found himself socializing without fear of COVID for the first time in several years.

Despite warning signs like inflation and bank failures—and waning from the boom of 2020 and 2021—jewelry businesses are holding up well based on the buzz at Conclave, Rob says. Traceability and lab-grown diamonds were much discussed, but the session that piqued his interest most was on ChatGPT. He found a story told by business consultant Ford Saeks particularly compelling because it demonstrated AI’s potential value as a customer service tool. When Saeks asked ChatGPT to craft an email to a disgruntled customer, the recipient was delighted by what seemed like a personalized note. “This is why I like working with you,” the customer responded. “It was ironic,” Rob observes, that what seemed like such a human touch was crafted by a machine.

Rob’s takeaway based on the session and his own experimentation with ChatGPT? “It’s a powerful tool, but to really master it, you have to understand the prompts, capabilities, and limitations,” he cautions. “As far as factual accuracy, it’s wrong more often than right.”

Rob and Victoria debate what artificial intelligence means for the future of their work and journalism in general. While it may usurp basic writing tasks, Victoria considers the threat minimal, because AI can’t replicate reporters. “ChatGPT isn’t about to call up 10 different sources and distill their conversations into pearls of wisdom and weave that into a story,” she says.

On the other hand, the technology may have big-picture cultural implications most of us haven’t even considered yet. She cites New York Times columnist and podcaster Ezra Klein, who recently pointed out that since AI focuses on culling existing content and data, increasing reliance on it could lead us to rehash things we already know rather than search for new knowledge. “What does that do for us as a society?” Victoria asks.

All eyes on JCK Las Vegas
The conversation shifts to Las Vegas, as excitement builds for the Luxury by JCK show (May 31–June 1) and JCK Las Vegas (June 2–5). Rob wants to catch the educational sessions on ChatGPT, TikTok, sustainability, and how to do a social media audit. Victoria is eager to get the scoop on DEI (diversity, equity, inclusion), to attend Friday’s Women’s Jewelry Association breakfast on disability inclusion in the industry, and to hear about viral videos at the Innovation Hub’s new Social Stage. She also wants to listen to keynote speakers, including Olympic gold medal–winning gymnast Dominique Dawes and retail innovator Johnny Earle, aka Johnny Cupcakes.

Rob will moderate two Hot Topics panels: Friday’s Natural Diamond Updates (featuring speakers from the Natural Diamond Council, the Jewelers Vigilance Committee, and the De Beers Group) and Saturday’s Lab Grown Diamond Updates (with representatives from the International Grown Diamond Association and the International Gemological Institute and analyst Edahn Golan). Rather than pit the two camps (natural and lab-grown) against each other, “we decided to look at these two different segments as individual markets,” Rob explains.

Other not-to-miss events include Sunday’s Jewelers for Children gala, followed by the JCK Rocks concert, headlined by country singer-songwriter Andy Grammer.

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Sponsored by De Beers: institute.debeers.com

Show Notes
00:52 Tiffany & Co.’s Landmark Event
03:44 Carrying on the Hess Family Legacy
05:07 Remembering Jose Hess
08:20 Striking Out on His Own
11:08 What’s in a Name?
14:42 A Brief History of the Plumb Club
18:09 The Future Looks Bright
20:31 Three Trends to Watch
24:22 Lab-Grown Diamonds in Simple Terms
25:52 Aligning With RJC

Episode Credits
Hosts: Rob Bates and Victoria Gomelsky
Producer and engineer: Natalie Chomet
Plugs: @jckmagazine; institute.debeers.com

Show Recap

Tiffany & Co.’s Landmark event
Victoria relays highlights from the Tiffany & Co. extravaganza that marked the Fifth Avenue flagship store’s reopening as the Landmark in April. It wasn’t just the beautiful space and the star-studded guest list that impressed her, but also the obvious wealth of the clientele. One guest sported a limited-edition Tiffany Blue Patek Philippe Nautilus watch, which sells for $3 million on the secondary market.

Carrying on a family legacy
Victoria and Rob welcome guest Lawrence Hess, executive director of the Plumb Club, which Victoria says is one of the industry’s most esteemed organizations, boasting a membership of distinguished manufacturers. Calling in from his office in Englewood, N.J., Lawrence says he is gearing up for JCK Las Vegas, where 50 Plumb Club members will exhibit in the group’s 75,000-square-foot pavilion.

Lawrence is the son of iconic jewelry designer Jose Hess. Victoria asks Lawrence about his memories of being raised in the business, thanks not just to Jose but also to stepmom Magdalena “Maggie” Hess, a designer in her own right.

Jose instilled a deep love of the industry and its people in his children. “The two most important things to him were family and jewelry,” says Lawrence, who tagged along to work with his dad when he didn’t have school. He recalls his father’s years as president of the Plumb Club, when early plans for the pavilion covered their dining room table while Jose fine-tuned them.

Rob notes that Jose Hess was renowned for his catchphrases, most famously “strong like a bull.” Lawrence remembers: “That was his answer to everything, whether things were good or bad.” Many of Jose’s observations are collected in The Beauty in All, a book Jose and Maggie co-wrote.

Striking out on his own
Another Jose Hess motto was that nothing should be handed to you. So before joining the family business, Lawrence needed real-world experience. He earned his gemology degree from GIA and spent the mid-1980s working in the jewelry business, from store floor to factory floor.

When he finally joined his father, he felt confident he brought value to the company in the form of new ideas and perspective. Even so, there was no cushy berth waiting. “I started literally cleaning bathrooms, sorting diamonds, cleaning up the benches in the factory.” Design wasn’t Lawrence’s forte, but he often weighed in on Jose and Maggie’s creations and discovered he had a knack for picking winners.

What’s in a name?
Victoria wonders what prompted Jose’s decision to sell his designs under his own name, a bold move at the time. Lawrence says it happened at the dawn of the designer clothing movement. In typical Jose fashion, he summed up his decision quotably: “I remember my father once saying that if Gloria Vanderbilt can put her name on someone’s behind, then I can put my name on a piece of jewelry,” Lawrence recalls.

After Jose sold his business and semi-retired, Lawrence went to work for a family friend who chaired the Plumb Club. When the group created an executive director position, “I felt I could make a difference, so I threw my hat in the ring,” says Lawrence. He’s served in the post for almost 14 years, helping to grow the Plumb Club into one of the industry’s premier supply organizations.

A brief history of the Plumb Club
Flashback to the 1980s, when the industry’s leading trade show took place in New York. Tradition held that suppliers threw competing parties for retailers on Saturday night during the show. That left retailers hopping from event to event, and hosts scrambling to spend quality time with them. Inspiration struck when the competitors combined forces to throw one big party where clients could spend the whole evening. The approach was so successful that the group applied the same concept to exhibiting. When JCK Las Vegas launched, the Plumb Club built its first Las Vegas pavilion. This year marks the club’s 40th anniversary—and its 31st year at JCK.

Lawrence mentions that though its roots were as a social club, the Plumb Club has evolved to offer year-round programming that provides education through its Jewelers Resource Center, a comprehensive, searchable database of industry knowledge.

The future looks bright
Plumb Club members are “cautiously optimistic” about the future, according to Lawrence. While the pandemic business boom is slowing, signs point to continued growth in the jewelry industry.

Looking for data to back up those predictions? The Plumb Club will present its third research paper and consumer survey at JCK Las Vegas on Sunday, June 4 (11 a.m. at the Showcase Stage). Another not-to-miss event on Sunday: the JCK Rocks concert, featuring Andy Grammer, the singer-songwriter behind hits like “Honey, I’m Good.”

Three trends to watch
Lawrence reveals a trio of noteworthy trends from the Plumb Club’s new research:

– Female self-purchasers are on the rise, with 67% of women making a non-bridal purchase for themselves in 2022.

– Millennials are big spenders. Though they make up just 23% of the world population, they account for 57% of all jewelry expenditures globally. In fact, millennials on average spend 157% more on jewelry than consumers in general, Lawrence says.

– Sustainability and responsible business practices matter to buyers. Plumb Club research suggests that 71% of consumers are willing to pay more if a retailer is committed to sustainability, and 69% will pay more to a retailer that demonstrates diversity and inclusivity. “We’ve been talking about sustainability and responsible business practices for years, but that is really now coming to fruition at the cash register,” Lawrence observes.

Lab-grown diamonds in simple terms
Rob asks what the club’s research shows about lab-grown diamonds. In short, they’re here to stay, Lawrence says. “While natural is still preferred overall, the majority told us they are open to either buying or receiving a piece of jewelry with lab-grown diamonds,” Lawrence notes. “The key is in education.”

With almost half of respondents confessing that they don’t really understand the differences between natural and lab-grown diamonds, retailers need to educate themselves—and to be able to give customers a clear, unbiased explanation of the options. Looking for help? The Plumb Club offers a brochure to keep on hand and share with customers.

Aligning with RJC
Victoria asks about the Plumb Club’s requirement that members join the Responsible Jewellery Council. Lawrence says it’s a timely move, given that as consumers ask more questions about responsible business practices, retailers are asking more about how their products are sourced. That can be a tough question for suppliers. However, once members complete the rigorous RJC certification process, “every retailer can be assured that if they’re doing business with a Plumb Club member, the product they’re purchasing has been vetted to be responsibly sourced.”

(Photo courtesy of the Plumb Club)

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Sponsored by De Beers: institute.debeers.com

Show Notes
00:49 Tiffany & Co. Reimagines Its Famous Flagship
05:30 Rob Heads to AGS Conclave to Gauge the State of the Industry
07:10 Rolex Brightens a Busy Watches and Wonders Exhibition
15:18 What’s New at Signet Jewelers

Episode Credits
Hosts: Rob Bates and Victoria Gomelsky
Producer and engineer: Natalie Chomet
Plugs: @jckmagazine; institute.debeers.com

Show Recap

Tiffany offers a sneak peek at its reimagined flagship
Victoria seldom flies across the country to attend a party, but she’s making an exception for the highly awaited reopening of Tiffany & Co.’s flagship Fifth Avenue store on May 27. After a three-year closure and a complete makeover, what will the Landmark—as it’s now called—look like? Rob remembers visiting the iconic store as a JCK mystery shopper and finding it surprisingly warm and welcoming. It was almost homey in those days, he says. Victoria predicts the new iteration will be decidedly sleeker and more luxe since the brand’s target demographic is now considerably more affluent.

“There’s a parallel story about the importance of brick-and-mortar,” Victoria observes. When she interviewed Tiffany CEO Anthony Ledru recently, he called the Landmark “the heart and soul of Tiffany.” The company is putting a major focus on its physical locations, expanding and renovating stores in Seoul, São Paulo, and other parts of the world, she adds. When the pandemic peaked, it looked like retail’s future might be entirely virtual and digital, but “that’s not the case at all,” Victoria says. “The importance of brick-and-mortar is more apparent than ever.”

Rob to moderate Conclave panel
Victoria’s not the only one with travel plans. In early May, Rob will head to Louisville, Ky., for the American Gem Society Conclave, where he’ll moderate an expert panel on how the industry is faring in 2023 and gauge the outlook for the future. Victoria is eager to hear his takeaways. She predicts JCK’s audience will be too. “It’s been a confusing year, with the lingering specter of recession,” she points out. “People are waiting for some guidance.”

Rolex brightens a busy Watches and Wonders
The conversation shifts to Victoria’s recent trip to Switzerland for Watches and Wonders in Geneva. This year’s bustling conference was a far cry from the quiet show of 2022, when quarantine kept Chinese buyers, retailers, and press away. “It felt upbeat and buzzy” in spite of the logistical frustrations inevitable in a crowded convention center, she says.

The optimism surprised Victoria, who expected the drop in secondary watch prices after last spring’s crypto collapse to put a damper on people’s moods. Instead she found an enthusiastic crowd and a robust array of new offerings. The most talked-about were whimsical, colorful watches from Rolex, a new direction for the brand. One featured a dial with balloons in a rainbow of colors. Another was an off-catalog model with 31 emojis and seven inspirational words like “love” and “faith” instead of dates and days of the week. Victoria says this is the first time she has seen Rolex introduce a concept piece, and despite some hate from internet trolls, show attendees loved the fresh, vivid newcomers. She gives the company kudos for its innovative pieces that break through some sameness in the category.

Rob asks about Rolex’s new certified pre-owned program. Victoria says people still aren’t sure how it will work, but she thinks secondhand dealers are likely diversifying and refocusing on other brands because they may not be able to compete with Rolex’s proprietary program.

Signet focuses on affordable luxury
Turning their attention back to the U.S., Rob reports on Signet Jewelers’ investor day, which he attended last week at the New York Stock Exchange. He was impressed by Signet’s executive team—and the fact that the majority of its members are female. “Five or six years ago, it would be all men and one woman,” he notes. “It’s a very, very different company than before CEO Gina Drosos came in,” one he believes is in very capable hands.

Signet is focusing on expanding its “accessible luxury” offerings, though Victoria notes that the term is highly subjective. In Signet’s case, Rob expects it will mean higher price points. The company also plans to expand its bridal offerings and attract more female shoppers, a goal that may pose challenges for Signet’s traditionally male-focused brands like Jared, James Allen, Blue Nile, and Diamonds Direct, Rob says. These four companies were once competitors, so finding their place in the Signet family  may take some time, Rob predicts.

Signet also reported that engagements are expected to return to normal levels now that the boom is subsiding. Rob points out that Signet has become the go-to source for market statistics, and he and Victoria agree such data is extremely valuable for the industry.

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Sponsored by De Beers: institute.debeers.com

Show Notes
2:40 Perfect pair
8:34 A memorable meeting
13:40 Diamond prices stabilize
14:43 New G7 requirements on diamond imports
19:27 With Tracr, provenance takes center stage
21:33 GemFair’s win-win approach

Episode Credits
Hosts: Rob Bates and Victoria Gomelsky
Producer and engineer: Natalie Chomet
Plugs: @jckmagazine; institute.debeers.com

Show Recap

Perfect pair
Victoria introduces her London-based guests and asks how the world of diamonds brought them together. Mahiar was born in Iran, grew up in Salt Lake City, and went to college in California—continents away from Feriel, born to Algerian parents in Abu Dhabi and raised in the U.K. Though he started his career in tech and financial services, Mahiar was offered a job in the diamond industry in London—and jumped at it. The move exposed him to the best kind of culture shock: “I was used to contracts and letters of intent,” he recalls. In diamonds, “the word mazal was your bond.” The trust and passion people showed felt like a breath of fresh air, says Mahiar, who worked with De Beers and Venus Jewel before joining UNI.DIAMONDS, which provides real-time data-driven insights on market prices, supply, demand, and availability to diamond retailers and wholesalers.

After earning her degree in mathematics and business management, Feriel also found her way to the diamond industry—as a supply chain analyst for De Beers. Her job was to use blue sky thinking to improve diamond forecasting accuracy. She too experienced culture shock, but of a different kind: Almost 20 years ago, she was the only woman and the youngest person in the room. “I stood out like a sore thumb,” she says. Happily, the industry has made great strides to improve diversity, she says.

A memorable meeting
When Feriel and Mahiar first met during a 2008 business trip to India, they were on opposite sides of the table. It was “sales versus ethics,” as she puts it: Mahiar was managing rough diamond sales globally, Feriel was managing De Beers’ best practice principles.

“She came so well prepared…for any question that I would have, and I was completely taken away not just by her beauty and her charm but very much so by her intellect,” Mahiar recalls. He insisted the group have dinner together, then visit the top of the InterContinental hotel, famous for its breathtaking views. Feriel and Mahiar talked for hours—until she left for the airport the next morning. On the plane home, she told her co-workers she’d met the man she was going to marry.

Tragically, terrorists struck Mumbai that day, and the budding romance was put on pause. “We worked very hard to get the sales team out,” Feriel remembers. “When [Mahiar] finally got out, I was so eager to see him that I actually asked him out. And he said…no.”

For Mahiar, the attack triggered painful memories of the Iranian revolution. “I needed to work through some of the stuff I had boxed up neatly in my brain,” he explains. After clearing his head, he “profusely apologized and asked her out. Now we’re 13 years married, we have a beautiful baby girl, and we’re working hard to change the industry,” he reports.

Diamond prices stabilize
Speaking of changes, Rob asks the couple’s views on the current state of the industry. Prices spiked at the end of the first quarter but have decelerated, now hovering slightly above 2021 levels, says Mahiar. “We’re seeing much more price stability in the market, which means supply-and-demand aspects are starting to fall in line,” he says. “I’m quite pleased with where we are.”

New G7 requirements on diamond imports
In addition to existing sanctions on diamonds from Russia, the G7 countries will soon impose new regulations on all natural diamonds coming into member countries, Feriel notes. “They’re going to be at customs, so they’re going to impact everybody.” And in an industry that has always sorted diamonds based on the 4Cs, the idea of provenance is still new, particularly to the informal sector, creating a learning curve, she says.

While details aren’t yet known, the new requirements must support the G7’s objectives without negatively impacting the legitimate natural diamond trade, says Feriel. She praises U.S. ambassador James O’Brien and his team for their recent fact-finding mission to better understand the supply chain and work toward a solution that won’t leave anyone behind.

With Tracr, provenance takes center stage
Rob invites Feriel to elaborate on Tracr, De Beers’ traceability solution, launched in 2018,  which GIA recently joined. “We always knew provenance was going to be very important for natural diamonds and, frankly, for any product that’s going to be sold into the consumer market,” she says. Consumers want products that reflect their values, but how can you know what your product stands for without knowing where it originated?

Enter Tracr, which provides provenance information, ensuring that a diamond’s origin story can be accurately represented when it’s sold to a consumer. “When we came up with it, most people were saying, ‘Why do you need this? No consumer is asking,’” says Feriel. “They’re not asking now, but they’re going to be asking in the future. We truly believe that.”

GemFair’s win-win approach
Feriel is perhaps even prouder of GemFair, De Beers’ program with artisanal miners to raise the standards of mine sites and develop a fair route to market for their product.

“Being able to see diamonds on a platform like ours from Sierra Leone, and being able to talk about what positive impact diamonds have in various countries that they’re in, has been a great story to [share with] consumers,” Mahiar says. It provides an “opportunity to fully appreciate how wonderful natural diamonds are in the countries they come from.”

Miners can sell to De Beers once they meet GemFair standards—guidelines De Beers worked with miners to develop. The De Beers team uses these interactions as educational opportunities, helping miners understand the value of their product, even if they choose to sell elsewhere.

During the pandemic, the company shifted its business in Sierra Leone to support the mining community in the face of massive inflation, ensuring that people had access to food and health care. “We found a solution with them where we would rehabilitate old mines and transform them into farming grounds. We have rehabilitated 126 mines since COVID. The women of the community manage the farming, [and] the overflow product is what they use to sell into the market,” Feriel explains. “It’s created new livelihood solutions for the mining communities and helped us build trust. Now that the communities know we’re here to stay, the volume of diamonds coming our way because of that trust has increased.”

While you won’t find GemFair diamonds at JCK Las Vegas, “if you want to try on a diamond from Sierra Leone or anywhere else—Botswana, Namibia, Canada, South Africa—come to my booth and you can virtually try it on,” Mahiar says.

(Photo courtesy of Feriel Zerouki and Mahiar Borhanjoo)

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Sponsored by De Beers: institute.debeers.com

Show Notes
01:45 24 Karat weekend
05:00 U.S. sanctions on Russian diamonds
13:00 Lab-grown diamond prices
15:00 Lab-grown diamond quality variance
23:00 Silicon Valley Bank

Episode Credits
Hosts: Rob Bates and Victoria Gomelsky
Producer and engineer: Natalie Chomet
Plugs: @jckmagazine; institute.debeers.com

Show Recap

24 Karat Weekend
Rob attended the 24 Karat Gem Awards, while Victoria sadly had to stay home. It was a beautiful event, which included a lovely tribute to the late Steven Kaiser. JCK writer Amy Elliott was up for a media award. Victoria and Rob give a big shout-out to Amy, and express their pride at her nomination. And they congratulate National Jeweler’s Michelle Graff, who won this year’s media award.

Rob also attended the Jewelers’ Security Alliance (JSA) lunch, where it was reported that last year was the worst for crime that JSA has seen in a very long time. On the lighter side of things, Rob enjoyed Joe Piscopo’s performance at the 24 Karat dinner (lots of Sinatra).

At the Jewelers Vigilance Committee (JVC) luncheon, Jeffrey Fisher was presented the Stanley Schechter Award in a warm, emotional ceremony. The speaker at the luncheon was Ambassador James C. O’Brien, head of the U.S. Office of Sanctions Coordination. He gave an effective, folksy speech about the U.S. efforts to put sanctions on Russia.

Stricter Russian diamond sanctions on the horizon
The G7 wants to put further restrictions on Russian diamonds to close the “substantial transformation” loophole, which allows Russian diamonds that are cut and polished elsewhere to come into the U.S.  One thing being looked at is requiring sellers to make a declaration that the diamonds they are selling are not from Russia. This would be a big change in the market.

In a brief interview with O’Brien following his speech, Rob asked what happens if people don’t have the proper information about Russian origin. O’Brien said you can get into a lot of trouble if you aren’t honest with Customs officials. There are still questions about many of the details, including what the size cutoff would be and what type of proof would be required. Rob warns that the changes are on the horizon, and it will have a big effect on the industry.

Rob gives a little context for these changes: Belgium has been under pressure to block imports of Russian diamonds. But Belgium’s argument has been that if Russian diamonds just go to Dubai and then the U.S., Belgium will lose out. But if the U.S. market is closed off, then Belgium is on an even playing field with Dubai. The sanctions proposal is due to be presented at the G7 conference in May and then put into action after. Rob hopes there will be a clear set of rules that are attainable and easy to follow.

Lab-grown diamond prices
Victoria asks Rob to chart when we started to see the prices of lab-grown diamonds fall. Rob notes that it has been a steady decline, and an expected one, though it may still be shocking to see now that it’s a reality. He remembers checking the price of a high-end lab-grown diamond and then seeing it thousands of dollars lower just three days later. The market is flooded right now. People say current prices are bottoming out and lab-grown diamonds will no longer profitable to produce if the prices get lower. However, further price decreases could still happen, if people dump their goods as they exit the business.

Quality variances among lab-grown diamonds
Victoria has been writing JCK Special Report newsletter articles on lab-grown diamonds. She watched a great presentation on quality in lab-grown diamonds, which was led by the co-founders of Ada Diamonds, a direct-to-consumer lab-grown diamond brand—and she learned a lot. The speakers explained that they started noticing a bigger distinction in the quality of lab-grown diamonds in 2019. They showed examples of lab-grown diamonds that all had—in theory—the same color and clarity grades but had very obvious differences. They explained the quality characteristics and issues in terms that were easy for laypeople to understand.

The overall message is, as this market has grown, and as people rushed to fill demand—which skyrocketed during the pandemic—growers prioritized speed to market. And when you cut corners in the growing process in order to get goods out the door, quality issues show up in the diamonds. Victoria’s article “Why Not All Lab-Grown Diamonds Are Created Equal” goes into more detail about the presentation and her takeaways.

Rob’s reaction is that this is a sign of the maturation of the lab-grown market. The discussion around lab-grown diamonds has long focused on whether they are the same as natural diamonds. While Rob agrees that they are diamonds, they are a different product, with a different market and different characteristics—which doesn’t make them less than regular diamonds, just different. The trend is to offer less information in lab-grown reports, which makes them cheaper, since if a report costs more than the diamond being sold, it’s not worth getting. Rob believes consumers deserve to have more information about what they are buying, especially when it comes to color tinges that you can see with the naked eye.

Victoria notes that Ritani sold a $99,000 26 ct. lab-grown diamond online. It’s fascinating that there’s still high demand for these diamonds. Getting to a larger size is much easier with lab-grown diamonds, and it is more accessible now than it used to be. The person Victoria interviewed at Ritani predicted it will be much more common to see big diamond jewelry flashing at the grocery store. And it won’t shock anyone anymore! It’s interesting to ponder what that will mean for the natural diamond industry.

Bank troubles and their impact on the jewelry industry
There were concerns about First Republic Bank after the failures of Silicon Valley Bank and Signature Bank. But has there been any impact on the jewelry industry? Every time a bank fails, the price of gold seems to get higher. It’s concerning for the industry, in terms of the overall economic picture. The irony is that so many diamond banks or diamond divisions of banks have already closed but didn’t get the same helping hand that the tech sector did. Victoria and Rob make a note to revisit the topic.

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Sponsored by De Beers: diamondeducation.debeers.com

Show Notes
3:01 Tom Nolan’s journey to Kendra Scott
5:46 From door-to-door sales to jewelry powerhouse
10:39 Cultivating a customer-first culture
13:57 In the brand’s wheelhouse
16:01 The icon behind the name
18:15 Experiential retail specialists
24:26 What’s next for Kendra Scott?

Episode Credits
Hosts: Rob Bates and Victoria Gomelsky
Producer and engineer: Natalie Chomet
Plugs: @jckmagazine; kendrascott.com; diamondeducation.debeers.com

Show Recap

From Baseball to Business
Victoria introduces Tom Nolan, CEO of Austin-based jewelry brand Kendra Scott. Founded in 2002, the company (named for its founder) has grown into a 130-store powerhouse valued at more than a billion dollars. Victoria invites her guest to share his background.

The son of working-class parents in New York City, Tom was the first in his family to finish high school. He earned a baseball scholarship and graduated from college in 1999, landing a job selling classified ads for magazines. This led to a stint as publisher of Condé Nast’s Golf World, then to Ralph Lauren, where he served as a senior vice president before leaving to start his own holding company, Prospect Brands, named for the street where he grew up.

In 2014, Norwest Capital, Kendra Scott’s first institutional investor, invited Tom to join its board. He had no experience in jewelry and had never heard of the brand but flew to Austin to meet with Kendra and was impressed enough to accept the offer. He’s been with the company ever since.

An Upstart Becomes a Power Player
When Tom joined Kendra Scott, it was a $40 million business with eight retail stores. Outside the Lone Star State, it was an unknown. But within three years, a transaction with another private equity firm catapulted the company’s value to over a billion dollars. Today, Kendra owns the majority of her namesake business, though strategic partners remain peripherally involved and have facilitated growth.

How did it all start? Flashback to 2002: Kendra Scott was a struggling single mom who had dropped out of college to help her stepfather cope with terminal brain cancer.  After a hat business failed, she turned her attention to jewelry. She set up shop in a spare bedroom, fine-tuned her line—featuring affordable natural gemstones—then went door to door with her infant son in tow, selling her collection.

The early days were strictly wholesale. But when the 2008 recession hit, her customer base dried up, so Kendra boldly opened her own store. And something remarkable happened. She had always helped those in need, and the community showed its gratitude by patronizing her shop. It didn’t hurt that her designs were stylish and her prices were right.

Soon she had a thriving business with a unique vibe. While high-end retail often feels intimidating, Kendra Scott was the opposite. Products in the store were top of counter. Sales associates greeted customers with a glass of champagne and encouraged them to try on items. The store bustled with energy and frequently hosted events.

The company opened “retail stores in secondary and tertiary markets because we couldn’t afford to be in big markets,” Tom recalls. Plus, in smaller cities “we could control the experience and really become a part of the community.” The brand built its business from the middle of the country toward the coasts, inverting the traditional geographic strategy of retail chains.

A Customer-centric Culture
Tom likens working at Kendra Scott to being part of a family. The company strives to make its 3,000 employees and its customers feel cared for.

This approach has served the brand well through challenges from social unrest to COVID to the slowing economy. “It allows us to be really nimble, thoughtful, creative, compassionate, and sensitive to the customer,” Tom says.

The Best Sellers List
More than half of Kendra Scott’s sales have a price point under $100. Perpetual best sellers include the Elisa pendant necklace and the Danielle earrings. Both have been in the line for 20 years and sell for $55–$60.

Regardless of the category, the company’s designs emphasize four core principles: shape, color, material, and value. “When I think about great brands, I think about things you can see across the room,” Tom says. He believes Kendra Scott has achieved this, as fans instantly recognize her vivacious, colorful natural gemstones in their iconic hexagonal shape.

The Face Behind the Brand
“[Kendra] is the great American success story—one of less than 20 females [to] have created and founded a business valued at north of a billion dollars, and she did it with nothing,” says Tom. Despite her success and frequent appearances on Shark Tank, she remains down-to-earth, just like her stores, he says. “She has a Midwestern sensibility that is approachable and kind and warm and aspirational at the same time. Those things generally don’t go together.”

Yet Kendra Scott is far from a household name. Just 5% of the country knows her name and her brand. Tom says this offers enormous potential for growth and winning new devotees not just with product but with Kendra’s inspirational story.

All About the Experience
The chain had a banner 2022 with double-digit growth and is off to a good start in 2023. “We’ve been able to zig when other brands are zagging because we have the balance sheet to support making aggressive decisions like opening retail stores,” says Tom.

What’s more, the company is built to weather economic storms thanks to its focus on experiential rather than transactional business. “When you look at what’s winning now, it’s experiences. It’s restaurants and bars. People were so cooped up over COVID, they want to get out and live their lives. We’ve been able to stay ahead [by delivering] a great experience and a beautiful product at an affordable price.”

What does that famous in-store experience actually look like? Store managers are empowered to tailor offerings to local tastes, so it changes a bit from market to market. “You can always expect somebody greeting you as soon as you walk in, offering you a glass of champagne, beer, water, or soda,” says Tom. They’ll chat with you, asking questions in a friendly, non-pushy way, and encourage you to try on as many products as you’d like.

“When I’m in shopping centers, I always pay attention to what’s happening in other stores. By and large, they don’t look like happy places,” says Tom. “Our stores are fun. We have an amazing retail team filled with happy, excited people who are proud to work at our company. And we invite our customers to participate in the fun in that experience. That’s what retail is all about.”

The chain’s stores hosted 20,000 events last year—all tied to causes and organizations dedicated to improving lives. “Lots of companies make pretty things. We win because we create connections with our customers,” he says. “We win on philanthropy, storytelling, and aspiration.”

Trend Watch
Never willing to rest on its laurels, the brand has branched into several new areas recently. In 2022 Kendra Scott entered the engagement ring category, building on its strong wedding business. (The core of this is Color Bar, a go-to for wedding party jewelry such as matching earrings and bracelets for bridesmaids.) Offerings are predominantly lab-grown, which appeals to Gen Z-ers and millennials, notes Tom. Plans for the future involve making the ring-buying experience more immersive, perhaps with stand-alone Kendra Scott engagement and bridal stores.

Another new addition is the men’s line Scott Bros., named for Kendra’s sons. During the pandemic, Kendra found herself once again designing in her house, much as she had done in the company’s infancy. Her work piqued her sons’ interest, which gave rise to the new line and made the company a true family business. “It’s been really successful,” says Tom. He notes that 25% of the stores’ customers are men, many of whom come to buy gifts but are delighted to be able to pick out something for themselves too.

In addition, Kendra Scott has launched watches and Yellow Rose, inspired by the Texas ranch lifestyle, Tom notes. “There are a lot of exciting things on the horizon for us in new categories that will allow us to broaden our reach and our product offerings beyond our core [jewelry] business.”

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Show Notes
02:25 Thoughts on Tucson gem shows
12:35 Diamond market news
20:40 Testing out ChatGPT

Episode Credits
Hosts: Rob Bates and Victoria Gomelsky
Producer and engineer: Natalie Chomet

Show Recap

Gem shows shine through cloudy economy
Victoria notes that those shows depend so much on how the fourth quarter went for retailers: if the holiday season went well and if they need to restock for their upcoming collections. Many economic uncertainties also affected business, from the specter of recession, to inflation, to the war in Ukraine. Despite all the looming questions, Victoria reports that Tucson was a great set of shows.

At the high end, despite price increase of 20 to 30% across the board, demand was still very steady. Victoria spoke with many people who reported having record shows. Dealers explained this was, in part, a reflection of gems’ longstanding reputation as a reliable way to store wealth. During times of economic uncertainty, the wealthy may opt to buy gems as a hedge against inflation. And when the economy is booming, people are in good moods, and up goes the demand for colorful jewels—but for a very different reason. So there are diverse economic circumstances when gems can fare very well.

What designers looked for
Victoria observes that there were many designers at the shows this year—teams from many of the French houses (Louis Vuitton, Boucheron, Tiffany & Co., and Cartier, to name a few) and countless independent designers, including Stephen Webster, Lauren Harwell Godfrey, Lauren Kessler, Katherine Jetter, and Robert Turner. And they were all looking for different things.

Stephen Webster was a unique designer to follow, since he was invested in finding rough stones. Victoria describes Webster spraying a rough Peruvian pink opal with water to get a sense of the color. Because you can’t see into a stone, all you have to go on is its outside; it’s only after cutting into the stone that you know what you’re working with. Victoria quotes Stephen’s colorful comment on that process: “Sometimes you get what we call ‘angel’s skin’…and other times you get ‘angel’s toenail.’”

Most designers start with the stones and build their collections around them. And everyone had particular things they were drawn to. Robert Turner loves zircons, tsavorite, and stones in brilliant colors. Katherine Jetter is an opal specialist and also was looking for Mahenge spinels, which come in vibrant hot pinks and were very popular with many designers. Victoria enjoyed following these designers on their treasure hunts.

In Tucson, Victoria spoke to Dave Bindra, who had made some predictions in an earlier episode of what he thought would be hot at the gem shows. He had talked about sunset and sunrise colors, which did do very well. There was also a lot of interest in demantoid garnet. Demantoid from Russia is hot right now, but of course supplies are complicated. There was growing interest in a newer demantoid supplier in Madagascar, Prosperity Earth, founded by John Ferry (another podcast guest), that both mines and cuts the stones.

Diamond supplier news
De Beers and Botswana signed a 10-year deal in 2011, which moved all De Beers’ diamond sales from London to Botswana. That change made Botswana’s capital, Gaborone, a new hub of diamonds. The deal expired in 2021, but it has been extended three times. Now it’s time for a new contract, and the negotiations have been complex and lengthy.

Rob explains that both De Beers and Botswana are very dependent on each other: Botswana’s economy relies heavily on its diamond revenues, while De Beers relies on Botswana as its biggest diamond producer. It’s one of the reasons De Beers is a dominant force in the industry. There has been some tension renegotiating the contract—which is understandable considering how much is riding on it for both parties. It’s in both sides’ best interests to come to an agreement, but the process has been more complicated and drawn-out than people expected.

In other diamond supply news, one year has passed since Russia’s war on Ukraine began, and though Russian diamonds are officially sanctioned in the U.S., there is a loophole. Diamonds can be mined in Russia, but if they are cut in India, they are not considered Russian diamonds due to the doctrine of “substantial transformation.” There has been a lot of discussion about tightening sanctions as the one-year anniversary of the war approached. The United States might decide to remove that loophole, so companies would have to declare and provide evidence that their diamonds did not come from Russia—which can be difficult to do, depending on what documentation is available. According to the latest Kimberley Process stats, Russia keeps exporting diamonds, despite all the sanctions. They’ve lost a lot of money because of the war, but the sanctions may not have had the impact the U.S. had hoped.

Putting ChatGPT to work
Rob has been fascinated and somewhat appalled by the artificial-intelligence-powered ChatGPT, so he has been experimenting with it. He used ChatGPT to write a poem in the style of Dr. Seuss about whether lab-grown diamonds are truly mining-free. It produced five paragraphs that are coherent, amusing, and even show a sophisticated understanding of some of the issues. An excerpt:

Oh, the term “mining-free,” it sounds so grand
But let’s look closer, let’s take a stand
For labeling something as such can be a trap
And lead to misconceptions and a big mishap.

The amazing thing is that the bot did all this in only three seconds! Rob has spoken with David Sherwood, CEO of Daniel’s Jewelers, who is a ChatGPT enthusiast and used it to brainstorm a Valentine’s Day slogan, which the jeweler put on a billboard. (The slogan was “Bling it.”)

Victoria teases an interview she did with two people about AI, the metaverse, and watches, which she wants to cover in a later episode. Her interview pairs watch lover Miles Fisher—creator of the “Deepfake Tom Cruise” TikTok account—with Edouard Meylan, CEO of H. Moser & Cie., who has experimented a lot with the metaverse and NFTs.

Any views expressed in this podcast do not reflect the opinion of JCK, its management, or its advertisers.

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Sponsored by De Beers: diamondeducation.debeers.com

Show Notes
1:53 From body chain to brand launch
5:09 Expanding organically
8:04 Turning obstacles into opportunities
10:53 Finding creative inspiration
13:57 High-profile partnerships
17:58 In the spotlight on SNL
20:51 The Black in Jewelry Coalition: making a difference
23:52 Tips for aspiring designers

Episode Credits
Hosts: Rob Bates and Victoria Gomelsky
Producer and engineer: Natalie Chomet
Plugs: @jckmagazine; madebymalyia.com; diamondeducation.debeers.com [Use promo code JCKPRO_15 at checkout for 15% off workshops.]

Show Recap

From body chain to brand launch
Victoria introduces Brooklyn-based designer Malyia McNaughton, founder of Made by Malyia, and asks how she started creating jewelry. The daughter of Jamaican immigrants was born in the Bronx, raised in Florida, and attended Florida State University, where she studied fashion merchandising and product development. After graduating, she moved back to New York to pursue a career in fashion, starting in sales and product development for Nicole Miller and eventually designing for another fashion brand.

In 2014, Malyia had tickets to a music festival in Philadelphia. She wanted to make a statement by wearing a body chain but couldn’t find the right piece. Undeterred, she sourced materials and designed her own. Little did she dream she was making her first item of jewelry. “I got stopped by so many people asking me where I’d gotten it,” Malyia recalls. “After the fifth or sixth person, my friends said, ‘You might be onto something.’ We went to lunch, and they helped me come up with the name Made by Malyia.’ It was one of those Oprah aha moments.”

Expanding organically

After months of trial and error, Malyia developed a body chain she felt was ready to put on Etsy. To her delight, orders poured in. Still, she viewed Made by Malyia as a creative outlet, not a business. Gradually she added products based on buyers’ feedback. When a client asked if she could make a temporary nose ring, Malyia branched into nonpermanent nose and body jewelry. Next someone asked for a ring. “It started to expand very organically,” she says. Eventually, growing demand persuaded her to build a collection and a website.

“Etsy was a great launching pad,” she says. “I credit my customers [there] for amplifying my voice and bringing me to market.” Though she has moved away from the platform, she hopes to do another Etsy-specific collection.

Turning obstacles into opportunities

Rob asks what challenges Malyia faced as a newcomer to the industry. She points out that the jewelry business is famously generational. While those family bonds are admirable and she hopes to build her own legacy, they have a downside: They create a major entry barrier for self-taught designers of color and anyone else who lacks personal connections.

Malyia turned the disadvantage into an advantage. As a newcomer, she felt less pressure to put out product than established insiders might. This freed her up to focus intensely on design. She is very intentional in the projects she takes on, releasing small, effective capsule collections that will sell through.

Finding creative inspiration

Malyia has said her work celebrates the intersection of art, nature, and culture. Victoria wonders how this translates into her creative process. The designer starts by placing raw materials in her workspace and spending a week surrounded by them. She also immerses herself in nature, drawing particular inspiration from the movement of water. Sometimes weeks go by before an idea strikes her—then ideas come fast and furious, and she finds herself making 100 sketches in a row. Her rough sketches go up on the wall, where she can study and tweak them. Next she engineers her designs to ensure they’re structurally sound before sending them to her CAD designer to see what they look like in 3D. “It’s a pretty unique process, but I’ve learned to embrace it,” she says.

On her inspiration board, Malyia keeps an old magazine article about Monique Péan that she clipped when Made by Malyia was taking root. “She really is a trailblazer,” says Malyia. Other role models include Sheryl Jones, “a phenomenal designer” and personal mentor, as well as Elsa Peretti. She feels a kinship with the late Peretti because, like Malyia, the designer saw herself as an artist.

High-profile partnerships

Victoria points out that Malyia has done quite a few well-publicized collaborations despite being relatively new to the industry and asks how these came about.

In 2021 the Natural Diamond Council launched an emerging designer initiative. Eager to explore the fine jewelry space, Malyia applied. She not only got accepted, she impressed the council enough with her sketches that they commissioned her to design an 11-piece collection as part of a global ad campaign featuring actor Ana de Armas. “I was ecstatic because, if I do say so myself, it was a hit,” says Malyia.

That success led to other opportunities, including partnering with nationwide chain Banter by Piercing Pagoda and its creative director, Grammy-nominated rapper, songwriter, and artist Tierra Whack. “I’m a huge fan,” says Malyia. Being entrusted to execute Whack’s creative vision was an honor. So was revisiting her roots with a trip to a Banter store in the Bronx. “I brought my nieces, my nephews, my sister,” Malyia recalls. “It was such an amazing experience to walk into the mall and to see…pieces that I was responsible for designing. If I’ve had an Oscar moment, that was it.”

In the SNL spotlight

Malyia enjoyed another star moment recently when Lizzo wore her earrings on Saturday Night Live. Rob asks for the backstory. A stylist contacted Malyia and asked to borrow a pair of her Wave Hoop earrings with channel-set baguettes but refused to name the event or the celebrity she was dressing until the day the episode taped. “I was in disbelief when it came on the screen,” says Malyia. “To have one of the biggest stars of our time wear my earrings on SNL, I don’t know if I can top that.”

Celebrity placement is influential, especially for a smaller brand like Malyia’s, she says, because it piques the interest of the public and the media. Reposting the coverage brings people to her site, which translates into sales and visibility.

BIJC: making a difference
In the wake of George Floyd’s murder during the 2020 pandemic, Malyia was working from home when fellow Black jewelry professional Elyssa Jenkins-Pérez reached out with a timely question: Would Malyia join a conversation about how the industry could help move the Black community forward? “I immediately said yes,” she remembers. Soon, she, Jenkins-Pérez, and others who shared their concerns were brainstorming strategies. They formalized their efforts by founding the Black in Jewelry Coalition (BIJC) and assembling a nine-member board that represents all aspects of the business. “We’ve been on calls once a week for about two hours for the last two years,” says Malyia. “It’s been phenomenal work.” BIJC has collaborated with industry organizations on initiatives to help advance Black professionals in gems and jewelry, partnering with New York City Jewelry Week on an event last year. Plans are also in the works to have a BIJC presence at the JCK show in June.

Tips for aspiring designers
For younger creatives hoping to follow in her footsteps, Malyia offers these words of wisdom: Trust your instincts. She credits her intuition with guiding her from the initial decision to make and market a body chain to her current thriving career. “I just trusted that what I was creating was worth sharing. Don’t wait to have it all figured out. Go for it. You never know where you can end up.”

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Sponsored by De Beers: institute.debeers.com

Show Notes
2:22 A lively January VicenzaOro fair
7:21 Jaeger-LeCoultre unveils first vintage watch collection
12:22 What Sarine’s purchase of GCAL means for the future of diamond grading
18:09 The FTC’s move to ban noncompete clauses

Episode Credits
Hosts: Rob Bates and Victoria Gomelsky
Producer and engineer: Natalie Chomet
Plugs: @jckmagazine; institute.debeers.com

Show Recap

Viva VicenzaOro
Just back from Italy’s January VicenzaOro goldsmith and jewelry fair, Victoria says she was delighted to find the show packed and the mood optimistic. She had expected inflation, the war in Ukraine, and fear of recession to trigger cautiousness and a comedown from the boom the industry has enjoyed since the pandemic started. However, this was the best-attended VicenzaOro ever in terms of both exhibitors and attendees. Victoria spent most of her time in the crowded hall where Roberto Coin, Damiani, Fope, and other luxury brands that export to the United States were exhibiting. Also bustling was the adjacent T.Gold show, featuring jewelry machinery and technology for everything from engraving to laser welding.

Victoria is still amassing information on the show’s top sellers, but one trend is certain: Big, bold pieces are replacing the small, delicate ones favored during quarantine. Understated jewelry suited people well when they were working from home, she says, but now subtle looks (such as stacking multiple delicate bracelets on the wrist) are making way for powerful statement pieces—especially cuffs and collar necklaces.

Jaeger-LeCoultre Unveils Vintage Collection
Victoria’s recent European trip included a visit to Geneva to learn about Jaeger-LeCoultre’s first-ever vintage watch collection. She explains that the Swiss company is known as the watchmaker’s watchmaker. The brand has made all of its timepieces in its own workshops in the Vallée de Joux since its foundation in 1833, and Jaeger-LeCoultre calibers and movements have powered many other brands’ watches over the years. Now Jaeger-LeCoultre has mined its own rich history to create The Collectibles, 17 models from its archives produced between 1925 and 1974. Each reflects a watchmaking innovation from the 20th century. Twelve of these models were sourced from auction houses and vintage dealers and are available for purchase. Included are the Reverso, the company’s best-known model, and several interesting watches from the 1950s and 1960s, according to Victoria. The Collectibles is an evolving collection, so the models will remain the same, but different editions may be introduced along with new capsules, she says.

This is the first time Victoria has seen a Swiss watchmaker invest such effort into selling vintage pieces rather than new models. She likens it to Rolex’s Certified Pre-Owned program and points out the advantage of having such treasures returned to the workshops where they were created to be fine-tuned with the very tools and components that were used to build them. How will other brands respond? Victoria is eager to find out. She predicts that we’re on the brink of a new era of modern-day Swiss watchmakers taking much more care with vintage pieces that have potential to be resold.

Sarine Acquires GCAL
In other news, Rob reports that Israeli equipment manufacturer Sarine has bought the family-owned diamond-grading lab Gem & Certification Assurance Lab (GCAL). Though GCAL is relatively small, it is widely respected for giving tough grades based on GIA standards and offering a certificate guaranteeing those grades.

Rob finds the acquisition intriguing, given that Sarine uses machines that rely on artificial intelligence (AI) to grade diamonds. This allows them to grade gemstones in the factory rather than sending them to a lab, as Rob reported last year. The fact that Sarine is using a well-established lab to roll out its AI approach and promising to honor GCAL’s grading guarantee shows how much confidence they have in the technology, he says. Clearly, Sarine believes its technology can match GCAL’s standards. Rob and Victoria say the acquisition will help the industry get used to the concept of AI grading, a method many labs are exploring. How will AI play out in the industry? That’s anyone’s guess, but Victoria predicts it will become increasingly important throughout the supply chain.

Rob also notes that International Gemological Institute (IGI), a well-known and profitable appraisal lab focused on lab-grown diamonds, has been put up for sale by its owner, the Fosun Group. He and Victoria are interested to see who purchases it.

The FTC Moves to End Noncompete Clauses
Victoria mentions a recently proposed rule by the Federal Trade Commission to ban employers from issuing noncompete clauses. Rob explains that many workers miss clauses hidden in the fine print of employment contracts and find themselves hamstrung when they lose or quit a job and want to find new employment in their chosen field. For CEOs at high-profile companies, noncompetes might make sense, he says, but for the average person, they’re problematic—and widespread: Data suggests that one in five American workers is subject to a noncompete clause.

Despite objections from business groups and possible court challenges, the FTC rule could be enacted before year’s end, phasing out existing noncompete clauses and prohibiting new ones. If so, Rob envisions sweeping changes in the economy.

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Sponsored by De Beers: institute.debeers.com

Show Notes
02:08 An unexpected journey into a jewelry career
10:57 Encouraging youth and diversity in the industry
13:53 What’s ahead for colored gemstones
15:33 The traceability factor
17:13 What to see at JCK Tucson this year
21:10 Underappreciated gems and personal favorites (or garnets, spinels, and sneakers)

Episode Credits
Hosts: Rob Bates and Victoria Gomelsky
Producer and engineer: Natalie Chomet
Plugs: @jckmagazine; @gemfluencer; institute.debeers.com

Show Recap

An Unexpected Career Path
Victoria introduces guest Dave Bindra, vice president of Los Angeles–based B&B Fine Gems and Instagram personality @gemfluencer, and invites him to share his backstory. Dave recounts his unexpected journey into the world of colored gemstones. Though his parents started B&B after emigrating to the United States and he grew up on the fringes of the jewelry business, he set his sights on law school after graduating from USC. When he realized his heart wasn’t in studying law, he decided to accompany his father to Bangkok on a buying trip and saw the inner workings of the business for the first time. “I fell in love with it,” recalls Bindra, who was moved by the role trust played in transactions. “A handshake was more important than any piece of paper in this business. It takes a lifetime to build these relationships.”

When the pandemic hit in 2020, Dave found himself—and B&B—evolving in unanticipated ways. After being locked out of his office for a month, he started sneaking into the building ninja-style to retrieve stones and posting them on Instagram from his backyard. Soon he was taking Zoom meetings and selling stones virtually to his retail and private jewelry partners. By nimbly growing its digital presence, B&B finished the year strong, streamlined operations, pared down inventory, and gained market share in its overseas sourcing networks. All this positioned them for a fruitful 2021 and 2022.

Though Instagram served B&B well during COVID, Dave now uses the platform for creative expression rather than e-commerce, showcasing whatever inspires him, from architecture to fashion to color schemes that echo certain stones. He also uses it to showcase his sneaker collection, matching vividly colored stones with colorful sneakers, and drawing on his years as a deejay during college to pair images with music.

Improving Inclusivity and Diversity
Rob observes that Dave is one of the jewelry world’s younger members and asks if he thinks there’s a problem attracting young talent to the industry. Dave says he was fortunate to have family ties that gave him an entrée, but the barrier to entering the jewelry business is real. Fortunately, the industry is taking steps to address the issue. Lack of diversity is another weakness the industry is working to correct, he adds. He believes female industry leaders and diversity initiatives by groups like the Black in Jewelry Coalition and the American Gem Society are paving the way to positive change.

Increasing the Focus on Colored Stones
Rob wonders whether the colored gemstone business could benefit from a powerhouse like De Beers to promote it. Dave says it’s a catch-22: The romance of colored stones lies in the fact that they are off the beaten path; mass commercialization could dull that mystique. However, he says colored stones are already becoming more mainstream, as evidenced by coverage in upscale publications such as Robb Report, Architectural Digest, and Vogue and jewelry advertised by heavy hitters like Louis Vuitton, Cartier, and Tiffany. Dave believes this heralds more organized promotion and education to come in the next five years.

Why Traceability Matters
Because the value of colored gemstones is more subjective than that of diamonds, gold, and other precious metals, they aren’t generally traded or sold for contraband or tied to illegal activity, Dave explains. This makes traceability less of a concern from a consumer protection standpoint than it is for diamonds and precious metals. Still, Dave sees value in tracing the journey of colored stones to market because it creates beautiful stories. He gives an example of a couple whose sapphire engagement ring came from Madagascar, making an exotic place on the other side of the world part of their love story.

Victoria wonders whether customers are demanding traceability or whether the industry is the driving force behind it. Dave thinks everyone is asking questions about transparency. The shift is being driven by younger consumers, who like to know where the things they buy come from and to make sure ethical practices are involved.

Talking Tucson
Victoria asks Dave his predictions for JCK Tucson. Inflation has hit the market, so people may feel a little sticker shock, he says. Still, he expects strong buyer turnout, given the scarcity of available hotel rooms. A tight supply chain is making replacing merchandise a challenge for Dave and his peers, especially for rare, exotic gemstones. An unprecedented amount of liquidity in the market in the past two years also makes it highly competitive.

Expect to see the strongest selection of sapphires from B&B in the company’s history at the show this year, along with stunning spinels, which are also in high demand. The most sought-after spinels are hot pink stones from Tanzania. The “it” colors are not Viva Magenta (Pantone’s color of the year), but orange-reddish pinks, peaches, and neon shades, which he predicts will stay strong for years to come. Another B&B option in today’s coveted color range is a selection of interesting tourmalines in shades from rose to peach.

Underappreciated Gems and Personal Favorites
Victoria asks Dave what he considers an undervalued gem. People dismiss garnets as dark red stones they would find in a grandmother’s pendant, but garnets are actually versatile, durable, and available in a dramatic range of colors. As examples, he mentions green tsavorite garnets, rose-peach malaya garnets, purple Umbalite garnets, and bright orange mandarin garnets. Thanks to designers like Lauren Harwell Godfrey, who use the stones in their work, public perception is starting to change.

Rob asks if Dave has a favorite gemstone. He’s partial to spinels, which he collects. Their value has appreciated tremendously since he started in the business in 2007. Back then, he saw boxes of multicolored stones for $20 or $30 a carat. Now they top $1,000 a carat. He notes that B&B was the first company to buy a major parcel of cut Mahenge spinels from Tanzania. At the time, they assumed more would be readily available, not realizing a freak deposit had produced the large quantity. Since then, no major production has emerged. As a result, stones that once traded for $700–$800 a carat command $15,000–$20,000 a carat today.

Rob inquires about the sneaker collection Dave showcases in his Instagram feed. Dave says the idea of matching shoes to stones happened accidentally. He was complaining to his best friend from high school that the light in his office was perfect, but his feet were always in his photos. The friend pointed out that Dave, a longtime sneakerhead, had footwear in every color. Why not pair it with colorful gemstones? The rest is Instagram history.

Dave and Victoria discuss the fact that the sneaker market has cooled off, due partly to brands such as Nike abandoning the limited runs of the past. Victoria says this underscores the value of scarcity, a theme that ties into JCK Tucson, where B&B and other companies will showcase rare gemstones.

Photo courtesy of Dave Bindra