Pearls Needed

I received a post this morning from a Mr. Trotta of Boston, USA, who runs a pearl store on Museum Way. He sent me a link to an interesting article from Charleston, Calling All Girls with Pearls.

The High Hopes fundraising committee is calling for girls to donate their pearls to create some magnificent ensemble to auction off at an event. Petit Jewellery Designs has agreed to put together this one-of-a-kind ensemble. They are requesting either cultured or freshwater pearls. I know, I know, freshwater pearls are cultured too. I didn’t write the bloody thing.

I’m keen to see this finished ensemble of pearls. Designing a piece with odds and ends, most likely reject pearls, by a designer who differentiates between cultured and freshwater, is a recipe for a jolly concoction.

If any readers have an extra pearl or two (or 3000) they feel like dumping into this prize pool, pearls can be delivered to Petit Jewellery Designs at 1012 ½ Bridge Road, Charleston, West Virginia, 25314 USA. The only catch, pearls must be there by Monday! It would be amusing to dump a few kilo of pearl on these blokes. There wouldn’t be anything petit about that ensemble.

Fiji Pearl Auction Success

Could this be a glimmer of hope for the rebound of the industry? Is it simply a lucky break for one farmer of Pinctada margaritifera? It is likely too early to tell, but the tremendous results of JHunter’s Pearls Fiji auction in Japan are a promising sign to this industry observer.

“I can’t really tell you why this happened,” Justin told me. “But my thoughts are along these lines. 1) Pearls are very unique color wise and size. 2) People like knowing exactly from who and where these pearls are from.”

“Unfortunately South Sea Pearls and Tahitian Black pearls have become all too common. Our buyers like having the point of difference that our pearls present, and are willing to support us to keep it this way.”

All 23,000 pearls on auction were sold with proceeds totaling more than $550,000 US, far beyond the pre-auction estimate of $350,000. Europeans were the strongest bidders, lead by two German buyers and one Italian. These results are simply outstanding, considering circle lots and “the works” were a part of the average.

Justin is understandably thrilled with the blinding results. Most P. marg. producers in FP would bite your arm off for those numbers just in rounds these days. “I cannot even begin to tell you how happy I am,” Justin said. “This was a shot in the arm for me.”

Sometimes it pays dividends to be different and focus on quality over quantity.

Cultured Pearl Industry Analysed

Andy Müller was a featured speaker at the 2009 European Gemmological Symposium earlier this month and shared a brief yet thorough analysis of the global saltwater pearl industry, which examined the past, present and the future.

For those pearlers of you who’ve lived under a rock for the past 40 years or have been so far removed from the society on some remote atoll, Swiss-born Andy Müller began his pearl career with the now disintegrated Golay Buchel in 1968. His career timeline is featured on his company homepage, Hinata Trading, and shows an exceptional career in pearls. He is also the author of “Cultured Pearls … The First Hundred Years.”

Mr. Müller has been generous enough to post a copy of his EGS presentation for the benefit of all interested parties. A simple download is available here.

Müller’s analysis explains well the shrinking value by over production phenomenon we’ve all seen plague the industry. He notes the saltwater cultured pearl industry was worth $800 million in 1993, shrinking more than 50% to an estimated value of $370 million this year.

Nothing in this report is sugar-coated as Müller confronts the realities facing all who trade in pearls. Akoya, Tahitian and South Sea production are analysed by timeline, and values not often publicly disclosed are given to each segment. South Sea pearl production, for example has increased from 650kan in 1998 with a total value of $220 million, to 3,350kan in 2009 with a decrease in value to $172 million, or 4,870 yen per momme.

Whilst the 4,870 yen does account for the bodgy production in Indonesia and the Philippines, it certainly does raise another question for Arafura investors who are waiting for an 18,000 yen per momme windfall.

Kelly Ouster Official

The official announcement has been made, Kelly has retired as Chief Executive Officer of Paspaley Pearling Company. The announcement, dated June 23rd and signed by Nick Paspaley himself follows.

Paspaley Pearls now really is a family company. A list of rellies in top positions are included with the announcement.

We are going to miss John's flowing locks. Now that he is not as busy as a cat burying shit, he is off to pursue other interests, whatever they may be.

Company Announcement

John Kelly will retire as Chief Executive Officer of Paspaley Pearling Company Pty Ltd on July 1st 2009. John will be assisting the company with the transition to the new management structure during July and August 2009.

John has been Chief Executive Officer for over ten years. During this time Paspaley Pearls Group has experienced significant development and growth, and I personally thank John for his tireless contribution during this time.

Following John's departure, I am pleased to announce the following appointments and changes to the management structure of Paspaley Pearling Company Pty Ltd.

* James Paspaley -- General Manager - Pearling;
* Michael Bracher -- Executive Director - Sales and Distribution;
* Peter Bracher -- Executive Director - Sales and Distribution;
* Tony Thiel -- Manager - Pearl Production;
* David Parker -- 2nd in Charge - Pearl Production;
* John Weadley -- Manager - Pearling Finance and Administration (the poor bloke)

Signed sincerely by Nicholas Paspaley

Pondering Paspaley Pearls

This is turning out to be quite a year for the Paspaley Pearls. It turns out that the fire did little to no damage. According to a friend in Broome, the warehouse was filled with useless old farming material stock. But it seems the good news ends there.

Is Paspaley beginning to implode? Is family turning on family? It seems no management at any level is safe. The Hong Kong sales manager has left. Did she resign or was she fired? Within a few days we will hear of the fate of the CEO – John Kelly is getting the boot. He received his marching orders some time ago, and has now been demoted to pearl-farm management duties until his time is up.

Talk is up that the Aston Martin-driving brothers are lining up to take over. This scares folk in Japan. Change is not always welcome, and disarray combined with lacklustre sales and low executive morale does not paint a pretty picture of days to come.

Finally, word is out that Paspaley are dumping their natural pearl stock on the market. Why? Is this financial crisis affecting them more than immediately evident? Paspaley’s pearls have historically sold at premium. Their pearls are the best and there is no producer arguing this. They have never been the sort to sell product for less than they believe its value. So why are they rapidly selling off their cache of natural pearls, collected o’er the last 50 years, for less than half market value? Pondering that question, I can only wonder if we’re seeing an act of protectionism for their cultured production, staying afloat making a quick buck by selling off their naturals.

Paspaley Arsonist Caught

ABC is reporting that the fire was intentionally set, and a young bloke will be appearing in court today facing charges for intentionally starting the fire. Allegedly, he lit the fire with a cigarette lighter and hid in the trees watching it burn.

Some damage was done to Paspaley's historical pearl sheds, pearl racks were burnt out creating a massive black cloud over Kimberley. It could've of been much worse if not for the efforts of the local fire department.

Paspaley Catches Fire!!!

Paspaley was apparently the target of an arson attack this past evening. Someone set the building afire with damages totalling near a quarter million so far. This was the office in Broome on Carnarvon.

Nothing is worse than a pyromaniac at the end of a hot summer.

More details to come!