The subject of a unified pearl grading. CIBJO Pearl Commission once again raising the banner of a unified grading system.
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1 Pearl Commission CIBJO Pearl Commission once again raising the banner of a unified grading system By Kenneth Scarratt, President CIBJO Pearl Commission The subject of a unified pearl grading system has been discussed on numerous occasions over the years, and it will be once again a subject on the agenda of the Pearl Commission, when it meets at the CIBJO Congress this month in Moscow. Pearl Commission Vice President Jeanne Lecourt has for the last few years lobbied for a unified Pearl Grading System to be developed under the umbrella of CIBJO. Jeanne is now putting together a team that will tackle this subject under the leadership of the French Polynesia Pearl Federation (FPPF), and it will begin work on this programme shortly. A few pearl grading systems have been developed over the years, both as educational tools and for laboratory reporting. Experience has shown that a universal grading system that covers nacreous pearls from all molluscs is a challenging task, as are the interpretation of the results. Further discussions with regards to the programme will be discussed when the Pearl Commission meets on May 20. We look forward to observing the process as it evolves, and seeing the results presented at a future CIBJO Congress. IDENTIFICATION AND SEPARATION Recent reports from the Gem and Pearl Testing Laboratory of Bahrain (GPTLB) have indicated a disturbing presence on the global market of small Chinese Akoya non-bead cultured pearls PAGE 1
2 Ken Scarratt, President of CIBJO s Pearl Commission. with microradiographic structures that are natural in appearance. They are being represented as natural pearls. As GPTLB notes, traders with knowledge of these pearls have said that all laboratories have issued reports stating these to be natural. These and similar challenges continue to place pressure on laboratories that test pearls to become more research oriented. Rather than relying upon historic experience, labs are increasingly trying to collect and analyse both natural and cultured pearls from first-hand, verifiable sources. Such information is required to face the greatest challenge to the natural pearl markets in the Arabian Gulf, which involves the separation of natural seed pearls from tiny (less than 2 millimetres) non-bead cultured pearls. Thousands of pearls of this size are often designated for single necklaces and frequently prove to be a mixture of saltwater and freshwater cultured pearls, as well as natural pearls. The separation process can be very tedious, difficult and costly, and yet it is extremely important to the Gulf natural pearl market. As with the examination of larger pearls, answers to this challenge must be found that are acceptable to the trade, the buying public and those responsible for the test procedures. OBTAINING NATURAL PEARLS FOR RESEARCH Natural pearls are rare and for this reason it is more difficult to obtain first-hand definitive or verifiable samples for research, whereas there are far less difficulties for all types of cultured pearls. Hence, when a recent expedition of GIA researchers to Australian waters, organised by the Paspaley Pearling Company, was able to collect 776 natural pearls from 20,488 large wild P. Maxima, many were astounded if not shocked by the success rate. These pearls are now forming a useful resource in natural pearl identification. But as identification problems intensify, considerably more research into every pearl type is required, placing a greater strain on the small group of global specialist laboratories. The expedition was part of an initiative of the Australian pearling industry, which began during the global financial crisis, and involved research into identifying the differentiating structures of natural pearls, so that such materials can be authoritatively identified and certified. The work was done in conjunction with the GIA, SSEF, and the Gem and Pearl Testing Laboratory of Bahrain. Nick Paspaley, whose family ties with natural pearls goes, back more than 70 years, believes that this is a very important issue for the entire pearl industry. Natural pearls are the pinnacle of the hierarchy of the industry. They set the standards for all pearls. It is important that they can be positively and confidently identified to A large natural pearl discovered in a P. Maxima shell during the GIA/Paspaley expedition. PAGE 2
3 preserve their value. The value of the entire pearl industry is derived from the reputation and value of the natural pearl. AUSTRALIAN SOUTH SEA CULTURED PEARLS The South Sea Pearl industry is emerging from a prolonged downturn that commenced with the global financial crisis in Indeed, reports Mr. Paspaley, prices of South Sea pearls are on the rise. Using his own company as a yardstick, he says that Paspaley has recorded growth in demand in every month since the beginning of The market is already experiencing shortages in the most popular categories of high quality South Sea Cultured pearls. This has resulted in prices increasing by more than 30 percent since January 2013, he notes. But explains Mr Paspaley, while Australia is the dominant producer of the world s fine quality cultured pearls, between 2009 and 2012 many Australian South Sea pearl producers departed the industry due to the fall in demand for pearls during that period. His own company, he states, closed 50 percent of its Australian pearl farms, noting that [i]t would take at least 10 years for Paspaley s farms to be brought back into full production, however there are no plans at this time to do so. As a consequence, production of Australian South Sea pearls will remain at less than 60 percent of pre-2009 levels for the foreseeable future. The trend of rising market demand was Shigeru Akamatsu, Vice President of CIBJO s Pearl Commission. Jeanne Lecourt, Vice President of CIBJO s Pearl Commission. independently confirmed by Atlas Pearls and Perfumes Ltd., also of Australia. The company s Wholesale and Distribution Manager, Tim Jones, recently announced that due to a significant increase in pearl prices in the past year, their six-month revenue to 31 December, 2013, was $8.6 million, compared to $6.9 million for the corresponding period in Mr. Jones said the main variables influencing the recent surge in pearl prices are the declining production levels and strengthening demand as the global economy improves. At the moment the size range of 9-12 millimetres is in scarce supply in the market. The relative shortage of goods combined with our current selective auction selling format triggered continuous price firming up to an accumulated 30 percent increase across the board over the past 12 months, he stated. Stephen Birkbeck, Executive Chairman of Atlas, said that in addition to favourable trends in pearl prices, the increase is supported by Atlas value adding strategy and the use of pearl by-products in perfumes and cosmetics. Technical innovation allows us to link perfume into the pearl retail sector and is the cornerstone of our corporate strategy: generating demand for value added pearls, releasing higher margins and creating consumer demand for perfumes through the global jewellery retail sector, he said. Atlas Director and Marine Biologist, Dr Joseph Taylor, said collaboration is a key word for Atlas PAGE 3
4 Pearls and Perfumes. It is through collaborative efforts with Universities in Australia, scientists and gem labs that Atlas was able to develop and fine tune its oyster breeding program, he said. It is the operating techniques and the ability to reach the level of consistency in harvests that led to our current unique position in the market. But science is nothing without people and the collaborative spirit of the company is also a reflection of the inherent philosophy of sharing which is prevalent in Bali, the company s Indonesian home base. The process of pearl farming is a long and risky cooperation between man and nature, or as we should say in this particular case between woman and nature. Atlas is unique in the sense that 100 percent of our pearl technicians are women, trained in-house. In a business widely dominated by men, this is not a light statement. As the confidence to invest in South Sea pearls has returned, Japan and Hong Kong have resumed their positions as the dominant buyers, said Mr. Paspaley, However, he added, for the first time, two China-based companies have featured in the top 10 buyers list. There is also a gradual return of U.S. buyers who have been noticeably absent since Looking at the Australian pearling sector, Mr. Paspaley notes that, during the past five years the Australian pearling industry has experienced major structural changes. Research and development has concentrated on the improvement of pearl quality instead of the increase in production, with the primary focus today being the production of pearls destined for the top end of the jewellery industry in other words pearls of both natural beauty and high value that do not necessitate any artificial enhancement. To ensure that rare naturally coloured cultured pearls of high quality can be readily differentiated in the market from artificially treated pearls, Mr. Paspaley has cooperated with the Gemological Institute of America in developing natural colour pearl reports. The GIA Report has assisted in differentiating between the market for high quality pearls and that for cheaper or lower quality categories, such as the Chinese freshwater cultured pearl. Another milestone for the South Sea pearl industry was the sale at Christies Magnificent Jewels Auction in Hong Kong in November 2013, of an important Australian natural pearl from the Paspaley s pearl collection. Called the Aurora, it sold for U.S. $409,000, more than $100,000 above the auction catalogue high estimate. It was the first pearl sold at public auction by the Paspaley, since the death of company s founder, Nicholas Paspaley, in in STRUCTURAL CHANGES IN FRENCH POLYNESIA Pearl Commission Vice President Jeanne Lecourt informs us that according to an official report published in January 2014 by the French Polynesia Statistic Institute (ISPF), 466 pearl producers and 21 Polynesian wholesalers were operating in Exports decreased by around 5 percent in terms of quantity, but for the same average price. The situation has renewed calls to prove the quality of Tahitian cultured pearl. In June 2013, French Polynesia s recently appointed marine minister, Mr Tearii Alpha, decided to close Maison de la Perle, which was Pearl farming on Rangiroa Atoll in French Polynesia. PAGE 4
5 a public institution in charge of Tahitian cultured pearl promotion since Explaining the move, Mr. Aplha said he wished to leave the mission to Tahitian pearl professionals. Maison de la Perle shut its doors in December Since the beginning of this year, many meetings organised between professionals and Pearl Ministry concluded in the creation of a Tahitian Cultured Pearl Council. It will be in charge of local regulations, controlling production, fraudulent export and the development of a research department. The objective of the research department will be to raise the quality of the Tahitian cultured pearl and develop local auctions. Last year seven pearl auctions were organised in Tahiti. In February 2014, a group of Polynesian professionals decided to create the French Polynesia Pearl Federation (FPPF). It was established by four commissions, respectively representing producers, exporters, jewellers and crafts professionals. FPPF aims being to promote the know-how of its members and organise different promotional actions, such as study tours, educational programmes, promotional materials, and more. Its president is CIBJO s Pearl Commission Vice President Jeanne Lecourt, who has more than 20 years of experience with Tahitian Cultured Pearls. As she explains the current situation, it seems that the goal of the new team in the Pearl Ministry is to better control the activities in French Polynesia, to increase the quality of this ocean gem and assist local professionals to take charge of the promotion of Tahitian cultured pearls. THE CIBJO PEARL BOOK The updated and comprehensive CIBJO Pearl Book version is now available on the CIBJO web site at download/ %20official%20pearl%20 Book.pdf. As in previous editions, the introduction for the Pearl Book states: this CIBJO Pearl Standard/rules is designed to assist all those involved in natural pearls, cultured pearls, composites and imitation pearls. The standard/rules is non-judgmental and the definitions and clauses contained therein are formatted and worded only to ensure that each pearl bought or sold is done so with clarity and honesty. The stability of the market place depends upon the use of the proper nomenclature, and the declaration of all known facts that ensure a fully informed purchase or sale. The book is free to download from the CIBJO site in a PDF format and it is hoped that the content will help guide all those involved in this unique marketplace. In particular those new to the various pearl markets are encouraged to review the Pearl Book s content. The best practices it contains, if adhered to, will help secure pride and faith in a truly distinctive product, industry and trade. Since the last CIBJO Congress efforts have been and are continuing to be made to harmonise the structure of all the various CIBJO Books without compromising the content. These efforts will be discussed and debated during the upcoming Moscow Congress after which all of the Blue Books will be re-published in similar formats and where possible with common definitions. ALL RIGHTS RESERVED CIBJO, The World Jewellery Confederation PAGE 5
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