JNA Jan/ Feb 2021

SPECIAL FEATURES 14 | JNA Jan/Feb 2021 Padparadsha sapphires are likewise highly favoured but supply is tight, even of those from Mozambique and Nigeria – making it even rarer. “Jewellery designers should look for more available gemstones to create classic lines of gem-set suites. We expect that blue sapphires, aquamarines, topazes, garnets, opals, and a whole host of other gems will make their way into wave- making designer jewellery in 2021,” noted Sabbagh. Cheng of Rio Pearl remarked that the crisis had peaked, and economic resurgence started to take shape as of the third and fourth quarters of 2020. Real and lasting recovery however will only happen once travel returns to normal and nations successfully contain the virus. “We are still far from a full recovery. The first half of 2021 will be the same as the second half of 2020. We can probably hope for some real changes to start happening by the second half of 2021 when borders are once again open and international travel is no longer impeded,” he noted. In the pearl sector, most producers scaled back production in 2020 while some even shut down operations. There is no shortage of goods in the short term, but there may be fewer pearls in the market over the next two years, especially if business picks up again. Ma of DFHK said while the pandemic created a great deal of panic during the first half of the year, there was no real evidence of a credit squeeze, adding that markets were relatively calm in terms of liquidity. In addition, a reasonable gross domestic product growth of about 2 or 3 per cent and stable asset prices could support consumption, noted Ma. All these however depends on whether the vaccines are proven viable and effective, and how soon people can start traveling again. “How long will this pandemic drag out? I don’t have a crystal ball, so I can’t make predictions, but I think we have seen the worst. I believe in the vaccine and I’m optimistic about people wanting to celebrate life’s occasions with jewellery,” he continued. Platinum jewellery is another promising area. Zhenzhen Liu, director of Global Corporate Marketing at Platinum Guild International (PGI), said strong momentum in China from the second quarter of 2020 led the recovery in platinum jewellery. India, Japan and the US also followed suit. “The recovery is driven by product innovation and emotional connection of platinum jewellery that captured high spenders, and a price gap between platinum and gold,” noted Liu. “Our strategic partners continue to report better sales with exciting new platinum products that reposition platinum for today’s younger consumers.” Bridal jewellery demand is likewise on the rise amid delayed wedding ceremonies. In terms of designs, PGI is expecting a strong interest in classic pieces that celebrate femininity. In 2021, jewellery designs are likely to focus on fashion, 50s icons and women empowerment. Bolder, more assertive and adventurous designs could also make waves in 2021, according to PGI. Unisex styles with sharper contours and witty themes resonate more with younger consumers. Incorporating new materials like enamel also add colour and novelty, allowing more creative freedom. This will continue to be embraced by consumers in 2021. A Nielsen study commissioned by PGI in November meanwhile showed that consumers in India, China and the US plan to purchase non-bridal jewellery within the next 12 months for themselves or as a gift. “Consumers show a strong willingness to spend on products that celebrate important occasions and mark special moments,” revealed Liu. “Platinum is well- positioned in the trade as it is the rarest among precious metals and represents and reinforces heightened emotional connotations.” ICA’s Sabbagh meanwhile expects stable demand for coloured gemstones in 2021, especially for Paraiba tourmalines from Brazil, spinel (red from Burma and cobalt from Vietnam), rubellite from Brazil and Nigeria, as well as tsavorite garnet from Kenya. Platinum jewellery Photo credit: PGI 鉑金首飾