Next Marilyn sought to sell emeralds over diamonds

 

London

Ian Harebottle is searching for a global celebrity to do for emeralds what Marilyn Monroe and Audrey Hepburn did for diamonds.

The chief executive officer of Gemfields Plc, the biggest producer of the green stones, said he wants "to bring in an A- lister to be the face of emeralds," mirroring what the actresses did in past decades that helped then-monopoly producer De Beers sell diamonds as symbols of lasting love. Clear gems still dominate today's $21 billion precious stone industry.

Rarer than diamonds yet cheaper, emeralds are gaining among consumers. At current growth rates they may take more than 20 percent of their competitor's market share within two decades, according to the trade group the International Diamond Manufacturers Association. Gemfields' share price has gained 78 percent this year.

"Sometimes rarity is not an asset," Harebottle said in an interview. "You need the volumes of supply, which is what we're doing."

Harebottle's strategy, from buying African ruby and emerald mines to leveraging iconic names, is supported by Brian Gilbertson, ex-CEO of the world's largest miner, BHP Billiton. Gilbertson heads an investment fund that licensed the Faberge brand name to London-based Gemfields and bought a controlling stake in 2007.

High-quality emerald prices increased more than 10-fold in the past three years, out pacing a 21 percent gain in diamonds, according to calculations based on Gemfields and WWW International Diamond Consultants Ltd. data. Still the red, green and blue stones comprise just 10 percent of global gem sales and lack standardized pricing.

A 0.9 carat round diamond that's internally flawless and of rare white color would cost about $7,000, according to online retailer Blue Nile. A round emerald with "excellent clarity" of the same size would cost about $3,500, according to Africa Gems, an online retailer of the stones.

Gemfields' market value increased to about 140 million pounds ($225 million) this year as prices increased for its Zambian output. That's where it owns 75 percent of the Kagem emerald mine, the world's largest. It also has 75 percent of the Montepuez ruby field in Mozambique. The biggest investor is the Rox unit of Pallinghurst Resources, a Guernsey, Britain-based fund that invests in natural resources whose chairman is Gilbertson. Rox owns 63 percent of Gemfields.

The company lacks the heft of the 20th century De Beers model, in which a single firm mined, marketed and largely controlled wholesale prices. Colored stones are a fragmented industry that's largely supplied by individual miners — sometimes parents and children — across about 10 countries.

At the same time it has benefited from singer and clothing purveyor Jessica Simpson, actress Halle Berry and the Duchess of Cambridge receiving engagement rings containing colored stones.

Global imports of rough emeralds, rubies and sapphires totaled about $2.2 billion in 2011, according to the United Nation's Comtrade data. Rough diamond sales totaled about $18.9 billion, according to BMO Capital Markets research.

"During the past three years, these other gemstone categories have taken away yet another half percent from our market share, of our display space, of our sales in the jewelry retail shops," Moti Ganz, president of the diamond manufacturers group, said in a speech at the World Diamond Congress on Oct. 15.

De Beers dropped so-called generic marketing of the stones when its monopoly was ended after losing a 10-year legal battle with the United States over price-fixing in 2004.

Polished diamond prices have declined for five straight quarters as Asian purchases slowed and the euro region debt crisis eroded demand, according to PolishedPrices.com data. Rough, or uncut, prices have fallen for the past two quarters and are heading for the first annual decline since 2008 after rising by more than 20 percent in each of the past three years.

The colored gem market was about equal in size with the diamond industry in the 1940s. Generic marketing is where participants buy advertising that benefits them all — such as the "Got Milk" campaign in the U.S. for the dairy industry.

De Beers, the world's biggest producer, created the industry and developed the "Diamonds are Forever" tagline that was voted as the best slogan of the 20th century by Advertising Age. Monroe's recording of "Diamonds are a Girl's Best Friend" and Hepburn's "Breakfast at Tiffany's" film helped cement an allure in consumers' minds, spurring a boom in demand and prices that were underpinned by cartel.

While the growing popularity of colored gems is reflected in the shop windows on London's Bond Street, diamonds are still the first choice of consumers who are better educated about the stones.

"Colored stones are mainly bought by more experienced customers who already have diamond pieces," said Richard Campbell, whose family runs the jeweler Lucie Campbell on New Bond Street. "It's incumbent on the buyer to have confidence in the jeweler or their own knowledge."

Lucie Campbell's display is dotted with emerald, ruby and sapphire jewelry, including the shop's most expensive piece, a pair of 22.45 carat and 21.66 carat emerald earrings set in platinum and surrounded by diamonds. The display carries no prices.

News
John Travolta is a qualified airline captain and employed the pilot with his company, Alto
people'That was the lowest I’d ever felt'
Life and Style
healthIt isn’t greasy. It doesn’t smell. And moreover, it costs nothing
News
i100

Other places that have held independence referendums
Arts and Entertainment
Jack Huston is the new Ben-Hur
film

It scooped up an unprecedented 11 Academy Awards when it was first remade in 1959

PROMOTED VIDEO
News
ebooksAn unforgettable anthology of contemporary reportage
Arts and Entertainment
Pharrell dismissed the controversy surrounding
musicThe singer said 'the last thing I want to do is degrade'
News
news

Arts and Entertainment
Blossoming love: Colin Firth as Stanley and Emma Stone as Sophie, in 'Magic in the Moonlight'
film

Actors star in Woody Allen's 'Magic in the Moonlight'

News
A male driver reverses his Vauxhall Astra from a tow truck
newsThe 'extremely dangerous' attempt to avoid being impounded has been heavily criticised
News
peopleThe Times of India said actress should treat it as a 'compliment'
Arts and Entertainment
Maxine Peake plays Hamlet at Manchester's Royal Exchange
theatreReview: Maxine Peake brings emotional ferocity to Shakespeare's starring part
News
news

Watch this commuter wage a one-man war against the Circle Line
Property
Home body: Badger stays safe indoors
lifeShould we feel guilty about keeping cats inside?
Life and Style
fashion

Olympic diver has made his modelling debut for Adidas

Travel
travel

...and the perfect time to visit them

Sport
Jonas Gutierrez (r) competes with Yaya Toure (l)
football

Newcastle winger reveals he has testicular cancer - and is losing his trademark long hair as a result

Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

Head of Marketing - London

£60000 - £85000 per annum: Ashdown Group: Interim Head of Marketing / Marketin...

Primary supply teachers needed in Downham Market

£21000 - £35000 per annum: Randstad Education Cambridge: Primary teachers requ...

SEN Teacher

Negotiable: Randstad Education Birmingham: SEN Teacher required with immediate...

Maths Teacher

Negotiable: Randstad Education Reading: Maths Teacher required for a College i...

Day In a Page

Mystery of the Ground Zero wedding photo

A shot in the dark

Mystery of the wedding photo from Ground Zero
His life, the universe and everything

His life, the universe and everything

New biography sheds light on comic genius of Douglas Adams
Save us from small screen superheroes

Save us from small screen superheroes

Shows like Agents of S.H.I.E.L.D are little more than marketing tools
Reach for the skies

Reach for the skies

From pools to football pitches, rooftop living is looking up
These are the 12 best hotel spas in the UK

12 best hotel spas in the UK

Some hotels go all out on facilities; others stand out for the sheer quality of treatments
These Iranian-controlled Shia militias used to specialise in killing American soldiers. Now they are fighting Isis, backed up by US airstrikes

Widespread fear of Isis is producing strange bedfellows

Iranian-controlled Shia militias that used to kill American soldiers are now fighting Isis, helped by US airstrikes
Topshop goes part Athena poster, part last spring Prada

Topshop goes part Athena poster, part last spring Prada

Shoppers don't come to Topshop for the unique
How to make a Lego masterpiece

How to make a Lego masterpiece

Toy breaks out of the nursery and heads for the gallery
Meet the ‘Endies’ – city dwellers who are too poor to have fun

Meet the ‘Endies’ – city dwellers who are too poor to have fun

Urbanites are cursed with an acronym pointing to Employed but No Disposable Income or Savings
Paisley’s decision to make peace with IRA enemies might remind the Arabs of Sadat

Ian Paisley’s decision to make peace with his IRA enemies

His Save Ulster from Sodomy campaign would surely have been supported by many a Sunni imam
'She was a singer, a superstar, an addict, but to me, her mother, she is simply Amy'

'She was a singer, a superstar, an addict, but to me, her mother, she is simply Amy'

Exclusive extract from Janis Winehouse's poignant new memoir
Is this the role to win Cumberbatch an Oscar?

Is this the role to win Cumberbatch an Oscar?

The Imitation Game, film review
England and Roy Hodgson take a joint step towards redemption in Basel

England and Hodgson take a joint step towards redemption

Welbeck double puts England on the road to Euro 2016
Relatives fight over Vivian Maier’s rare photos

Relatives fight over Vivian Maier’s rare photos

Pictures removed from public view as courts decide ownership
‘Fashion has to be fun. It’s a big business, not a cure for cancer’

‘Fashion has to be fun. It’s a big business, not a cure for cancer’

Donatella Versace at New York Fashion Week