U.S.-China Trade War is the Talk of the June Hong Kong Jewelry Fair

Hong Kong industry leaders talk about the issues at the June Hong Kong Jewellery & Gem Fair

In September the Hong Kong Jewelry & Gem Fair was closed for a day for the first time in its long history by a typhoon. For the June Hong Kong Jewellery & Gem Fair, two other storms are brewing and both are man-made. The first is the threat by President Donald Trump to slap a 25% tariff on all goods exported from China to the U.S. The second is perhaps the largest protests in the history of Hong Kong, which may continue. 

During the opening day press conference, leaders of the trade organizations from Hong Kong spent a great deal of time talking about the first issue while not mentioning the second at all. 

Lawrence Ma, president of the Diamond Federation of Hong Kong, says U.S.-China trade tensions are putting pressure on the world economy. 

“Trade uncertainty is what we don’t like,” he said Thursday. “If they agree to something everything would change in a moment. But I think we have to live with this uncertainty for the next few months.” 

Sze Ho Yin, president of the Hong Pearl Association said the increased infrastructure improvements between Hong Kong and China have made it easy for Hong Kong wholesalers and retailers to do business with those from the mainland. 

“About 40% of our buyers are from Mainland China because it is very convenient for buyers from China to come to Hong Kong,” he said. “They are pretty much supporting the jewelry industry (in Hong Kong). It’s very convenient to sell directly to China. Because of this the trade war between the U.S. and China hasn’t had a dramatic effect.” 

Ken Lo, chairman of the Hong Kong Jade & Jewellery Manufacturers, says Hong Kong’s strength as a trading center will mitigate much of the detrimental impact of a trade war. 

“Hong Kong is the number one city in the world in terms of ease when it comes to setting up a business,” he said. “And it has an advantage because of its proximity to China and its ease of trade between the two markets. I think because of this Hong Kong will remain a very important trading center for the entire world.”

The leaders also talked about issues important for the jewelry and gem industry in Hong Kong. For example, Ma spoke about some of the myriad of issues the diamond industry is facing. They include the difficulty of financing for much of the diamond trade, the effect of lab-grown diamonds and the steady decline of sales among Hong Kong retailers. 

He said diamond imports in Hong Kong are down 2.8% for the first three months of the year compared to last year. Meanwhile, exports are up by 9.1% for the same period. On the retail level, there are more Chinese tourists visiting Hong Kong but they are spending less, he said. 

“The good news is that there are more Chinese coming,” he said. “The bad news is spending has come down significantly. Overall, it’s a good trend.”

Lo spent much of his presentation talking about how technology is changing the jewelry industry. The items he covered included:

* Lab-grown diamonds and how it has taken up some jewelry industry sales.

* CAD-CAM technology is speeding up the process from design to finished jewels and is a catalyst when in terms of allowing retail customers the ability to design their own jewels.

* The decline of distributors because manufacturers are using the Internet and social media to go directly to retailers and consumers.  

Yin said the Hong Kong pearl industry is working with China to develop a freshwater pearl industry to replace the Akoya pearl. 

Divisive Donald Trump Election Leads Jeweler To Donate 50% Of Sales To Charities

An Arizona jeweler became so disheartened with the election of Donald Trump as president of the United States that she decided to create a campaign to donate half of her company’s sales to causes that she fears will be neglected when the new administration begins.

Konstantina Mahlia, owner of the jewelry brand, Mahlia Collection, “impulsively” started this campaign a week ago out of frustration, and it quickly gained traction with several non-profit organizations. The National Association for the Repeal of Abortion Laws (NARAL), Environmental Defense Fund, Sierra Club, Equality Arizona, Planned Parenthood and Sea Turtle Conservancy are on board with this campaign and in some cases are providing marketing assistance.

No one is more surprised by this initial success than Mahlia.

“I (cold-called) the presidents of these organizations saying ‘I don’t know what I’m doing but I’m looking for help to make it work’ and everybody called me back,” Mahlia said.

The name of the campaign is “We Can” and the impulsive nature of it shows as it is incorrectly listed as “Our Way,” on the Mahlia Collection website. It has since been corrected. The campaign is scheduled to run until December 31 but she may extend it. Mahlia also purchased the domain for “We Can” and is in the process of creating a dedicated web presence for the campaign. 

For Mahlia, this isn’t a marketing ploy to increase sales or brand awareness. “If I get any money out of this it will be a miracle,” she said.

Konstantina Mahlia

The campaign is being managed directly through the Mahlia eCommerce website. When someone purchases a product, right before paying a pop up window comes up with the list of partner organizations. Buyers can direct half of the cost of the product to the non-profit of their choice. Each organization has dedicated space on their website for the campaign for accountability and credit to donors for tax purposes (donations are tax deductible).

Buyers can also choose to opt out of directing the money to any organization. 

Ultimately, she says she hopes to build a network of people who have the same concerns as she. 

“I hope it inspires others to step up the plate to do something that is civic minded and empowering,” she says. “Hopefully, we can create an affiliation of like-minded people and know that you’re not just huddled in your world depressed at the demise of the world that is on the way.” 

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Donald Trump’s Huge Harry Winston Engagement Ring To Marla Maples Sells For $300,000

The 7.45-carat Harry Winston diamond engagement ring that Donald Trump gave to his second wife, Marla Maples, sold at auction Wednesday for $300,000. 

The rectangular, steep-cut diamond on a platinum ring was sold to a private collector whose name was not immediately released during the “Fine Jewels & Timepieces” sale at the Joseph DuMouchelle auction house in Birmingham, Mich. The sides of the ring are channel set with 16 graduated, straight baguette cut diamonds.

The ring had an estimate of $300,000 to $350,000. DuMouchelle reportedly said prior to the sale that the estimate was based on the diamond ring’s intrinsic value. The celebrity significance did not enter into the price. 

However, in a statement following the sale, DuMouchelle said he was pleased with the price it fetched.

“We are thrilled that the ring sold for the estimated price,” he said. “We're happy that the Maples-Trump Diamond now has a new home. It's an extraordinary Harry Winston ring and we hope that the new owner will enjoy the rarity of its beauty.”

Marla Maples reportedly sold the ring to a collector in 1999 for $110,000, following their divorce in the same year. The couple married in 1991. 

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