Promoting on 11 Cents per Pearl

Liquidation is continuing at the doomed GIE Perles de Tahiti. The 15-year-old promotional arm of the industry is in the final death throws, moving to appoint a liquidator to disburse the remaining US$650,000 in the coffer to debtors and other commitments.

The move for dissolution has been a while in coming, first planned for September 30th, then moved to January 1st likely related to a conflict of interest between the minister in charge of the pearl industry (Teva Huiouto-Hapaitahaa) who happens to be Michael Yip’s son in law (one of the biggest players in the production game).

With the dissolution of GIE, the 200 CFP per gram tax might not return, and if it does, it will likely be reduced to 10 CFP per pearl. That comes out to a whopping US$0.11 per pearl! I wonder what sort of promotional activities the new promotional arm of the industry will be able to accomplish for 11 cents per pearl. One thing is certain, the champagne dinners and celebrity hobnobbing of the directors is going to be cut short. The farmers have made it clear that this sort of abuse will no longer be tolerated on the backs of those that do the grunt work in the atolls. Those who are responsible for replacing vanilla as the number one export from French Polynesia.

Is there hope for the industry? Probably not, without some sort of central control and regulation of the industry. With 46% of production going straight from producers to foreign buyers, pricing and quality are going to continue unabated fluctuation at the whim of immediate need and want.

Ancient Pearl Earring Found

Submitted by Perlemeister.

We are not accustomed to trolling about for tales of old, natural pearls. However, this piece from National Geographic News caught my eye, and I pass it on as a reminder of what pearls used to be in this age of man-made or man-assisted pearl-like wonders.

November 11, 2008—This stunningly intact 2,000-year-old gold, pearl, and emerald earring was discovered under a parking lot just outside Jerusalem's Old City.

The earring was found in the remains of a fourth- or fifth-century A.D. Byzantine-era structure, which the parking lot had been built over.

However, archaeological data indicate the earring was produced sometime from the second to the fourth century A.D., when the area was under Roman rule.

"Valuable objects such as these were handed down from one generation to the next," said Doron Ben-Ami of the Israel Antiquities Authority, who co-led the excavation.

"The time gap [between the Roman and Byzantine periods] is not so big, just 200 or so years."

"The earring was astonishingly well preserved, so much so that it seems it was manufactured only yesterday," he said.

This style of jewelry was typical of the Roman Empire and was likely worn by a woman of high status.

The bauble is similar to illustrations of jewelry found in tombs from Roman-era Fayum, Egypt, Ben-Ami said.

"These earrings are surprisingly reminiscent of the earring [from Jerusalem], and it seems that they were fashioned in a similar technique."

The new find may have been produced locally or may have reached Israel from Egypt via a trader, merchant, or other traveler, Ben-Ami said.

—Mati Milstein in Tel Aviv, Israel

Olga does 007 ... Again

Submitted by Olga Noitapitsnokovna

"The star-gazer often trips up." Wise words for movie-goers.

I am blatantly going to ignore the above old Russian proverb, told to me by my late babushka, and go ahead and foolishly use my hard-earned money as a remedy for my unrequited and obsessive lusting after a common "action film" actor. We all know that the lusting after of possessions is the most dangerous passion of all, yet, strangely, I think I have found a pretty damn-good substitute for Daniel Craig. For all my hard criticism of today's unbridled consumerism, I am, nonetheless, not dead yet. There lies the trouble; death is the cheapest way of existing, and I, still kicking, hate cheapness more than I hate Hummers and the people who drive them.

Just look at this amazing necklace! I mean, just look at it. Notice how the blue stones in this magnificent creation from Assael are the same dreamy frosted diluted-Windex colour as the new and improved gritty James Bond's eyes? And notice too, just like all the logos on the sponsored luxury items in The Quantum of Solace, how the disproportionally big double"D" necklace clasp, smacks of the utterly important person or house who designed it? The sheer joy of thinking of the possibility of possessing this necklace is intoxicating! Ah, but a certain forum-administrating girlfriend of mine must wonder, "How can you trade Daniel Craig for a necklace and some earrings?" That, my dear, is easy because necklaces and earrings always obey you; they never talk back, and they are never unfaithful. Also, this particular necklace has just the right amount of vulgarity, and is quite impressively bulging with baroque South Sea pearls. Coincidentally, just the way Olga likes her leading men.

What is to be done with this awful lust and yearning? Absolutely nothing. The necklace has already stamped itself into my mind (along with Craig's torso). Olga's intelligence and judgement are undermined and so is her character. That's the sad and silly part. I know that buying this thing will have me sleeping under a bridge in no time, but on the other hand, I do have a magic credit card that needs to be tested. It is my duty after all, to live up to the distinction my platinum American Express card confers. It says I am a power-buyer, not a peasant!

Having a limited budget here in North America is much more difficult than it used to be in Russia. Ostentation is also not frowned upon in Russia. Ostentation is vied for there! Maybe moving back to Russia would lighten Olga's conscience and give her some quantum of solace about these brand-name-luxury-goods relapses of hers. What a tortured, tortured soul I am---just like James Bond in the new film.

Olga does 007

Just when I thought we had seen the last of our favorite poster, Olga Noitapitsnokovna, she comes back with a thought-provoking post after seeing Quantum of Solace.

Quantum of Solace, the new James Bond movie, hit theatres last week and it seems that at the moment, all a luxury goods company has to do to sell one of their "special" ridiculously overpriced products, is to hint that it is made for MI6 spies with a licence to kill.. Ah yes, James Bond would have liked the new limited edition of Bollinger Champagne with the 007 inscribed on its exterior. How very subtle. Just the thing secret agents are looking for to get pie-eyed on during an assignment. Especially in public. But, the prominent 007 numbers on the bottle are not the only thing that defies common super spy-sense (besides the price), it's also the bottle's questionable shape. Supposedly it is designed after a bullet befitting James Bond's weapon of choice. Now I know that the nice people at Bollinger didn't mean to allude to James Bond's other weapon---you know, the totally embarrassing thing that keeps popping into your head---on purpose. No, of course not.

So for a mere $5,765USD, and while the bubbly lasts, you too can briefly feel what it is like to be a womanizing, deadpan wisecracking, bespoke London suit wearing, able to leap tall buildings and murdering every traitor in sight---kind-of super spy. The empty bottle can then be used as a container for things not apt to be strewn about, and it even has a key chain at one end of it. Super spy cool, isn't it? Never you mind that Daniel Craig, who is a real person with a real good physique, loves to guzzle cheap beer at the local pub. True, he is no Vladimir Putin, but Craig is buff enough. Yes, never you mind about reality, cheap beer calories and strenuous work outs, you just go ahead and get that super expensive bottle of 007 Bollinger bubbly and use your super imagination.

As for Olga, she would prefer the "real" scraggly faced, yet meaty Daniel Craig over the suave "make believe" James Bond any day. But that is just her. Maybe it is because every single one of "make believe" James Bond's girlfriends ends up dying a horrible death, while "the real" Daniel Craig's girlfriend is still very much alive and seems to be sporting a huge diamond engagement ring lately.

And what does this have to do with pearls, you ask? Well, if you are going to actually buy some of that limited edition Bollinger 007 Champagne, you might want to up the super spy ambience a bit and pop that cork on board a mother-of-pearl lined super yacht (real or imagined).

Alvaro Ferranti is making nacreous tiles fit for plastering anything and everything, and they have made a big splash with the super yacht crowd and their trendy super yacht interior designers. Just think what new heights the nacre tile plastering of your ho hum super yacht toilet can reach! Finally, a "throne" worthy of any filthy rich pearlmeister's behind! And that is not all, Alvaro Ferranti prides itself on keeping the cost down on these pearly tiles, so that super yacht owners can save some money using them instead of the usual super expensive fancy exotic woods! Oh, I am so super excited to have found this. It sounds like even I can afford it.

Just think how impressed Olga's camping and hiking friends would be if she micro-mosaic-ed some of that mother of pearl on the interior of her Souris River canoe! Maybe do matching paddles and her waterproof pack too. What fun! Algonquin Park here I come!

Pearl Farmers are a Resilient Lot

Farming pearls is a labor of love for most entrepreneurs these days. The risks so often outweigh the rewards. Japan’s akoya pearl farms have been hit repeatedly in the last 20 years with natural and manmade disasters, China’s akoya farms have been devastated twice in the past two years and their freshwater farms are plagued with pollution. Tahitian pearl prices have ridden a roller coaster ride for the last 20 years, going from prices higher than Paspaley production to lower than a farm-sustaining level. The trade is wrought with uncertainty and impending disaster.

But to a special group of farmers, there is that labor of love and a never-ending passion and hope that keeps their spirits alive and helps them thrive through diversity.

Three farmers come immediately to mind: Edward Kong, Douglas McLaurin and Justin Hunter.

Edward Kong is the farmer in Malaysia we just discussed a couple of days ago, and Douglas is the principal of Sea of Cortez Pearls. For both of them, farming pearls is not about the money. It is about the pride and the passion.

And then there is Justin Hunter.

In 2000, Justin Hunter returned home to Fiji from the United States and established J. Hunter Pearls Fiji. Farming pearl with the Pinctada margaritifera shell, one would expect his small upstart to pale in comparison to the big boys of French Polynesia. But Justin has a dream – a dream to grow pearls that looked completely different than the traditional Tahitian.

Justin’s pearls are different. Their colors show a range not typically seen in French Polynesia. The golds, pistachios and blues are more the norm than the exception.
So what makes Justin so different? Just today he was featured in The Fiji Times Online. The global economic depression has so many scrambling, scared to death. Even the mighty Paspaley is feeling the pain with worries about the current crisis and falling sales. But for Justin, the global crisis is not dampening his optimism. He is already planning a second farm in Buca Bay.

Some may wonder how he can afford it. Tahitian pearl prices are lower than ever and the market is soft. But Hunter Pearls has been controlling the market. His pearls are unique. They’re special. His auctions are attended by hand-picked buyers. He selects the quality- and rarity-based buyers like Vock, and refuses other dollar-based buyers like Druzy. His auctions sell out and his harvests command a premium.

It is the love of the art, the passion for the game, combined with a strong marketing skill that sets him apart from the rest. When the world wakes up and the buyers return, it is easy to assume Justin will be leading the pack – at least in his own small niche.

Appraisals Gone Wild

One of the most enjoyable things about writing this blog are the emails I’ve been receiving. Some are good (I love your blog), some are nasty (how dare you, you son of a bitch), some are just down-right interesting (guess what my jeweler said?).

About a week ago I received this email from a gal named Paula in Atlanta, a follower of this blog. She is, of course, a pearl lover.

“Dear Professor,
I have a question and I trust your word completely. I have a stand of 11-12 mm peach freshwaters I had restrung and appraised. The appraiser said there is no such thing as a natural pastel freshwater pearl. She says they are ALL immediately bleached after arrival to the factory and that would remove all color on ANY pearl. Now, Fred Ward and everyone else in the world says there are such things as natural pastel freshwaters-peach, lavender etc. Is my appraiser clueless or right? I just paid her $120.00 for her to tell me this. She wasn't saying only my strand was enhanced, she was insistent that all freshwater pastel pearls are dyed. She said the rose overtoned whites are the most valuable and that may be true but the rest of what she was saying are at odds with everything I have been reading. She said if the pastel pearls weren't enhanced they would be worth "a million." Please help.”

My response was not one of real astonishment. Paula was dealing with an appraiser that doesn’t know squat about pearls. Well, maybe she knows something, but her knowledge certainly isn’t worth $120 a pop! No such thing as natural-color pastel freshwater pearls, eh? Could she be confusing freshies with akoya? A pastel strand of pearls worth a million? I better get over to China quick, buy some pearls and offer her a good deal. You know, just $100,000 or so! Gotta do it quick before somebody schools her on pearl basics!

Paula and I corresponded back and forth about this, me explicating the ins and outs of pearls and pearl colors and Paula becoming more and more dissatisfied with her appraiser.

It turns out this was the second strand Paula had taken to this appraiser. The first strand was an off-round to semi-baroque, 9-10 mm freshwater white with good luster. A decent piece - nothing to write home about - it probably cost someone about $150 in China. But the appraisal was for a mindboggling $8000 retail! Appraiser, what are you smokin’!? It turns out that Paula had argued against the appraisal, knowing it was laughably high, even the owner of the jewelry store hesitated. But the appraiser stood firm. This was the number her Drucker program was spittin’ out, so damn it, it must be right!

When Paula went back to get her appraisal for the 11-12 mm pastel strand, the valuation was a bit more in line - about $2100-retail for the strand. But the appraiser had described the piece as a low-luster strand, and had obviously input faulty intelligence into that super-appraiser program.

As you can see quite clearly in the photo, the luster of the pastel strand is pretty damn close to the luster of the white. Maybe a tad bit less, but that pastel is no string of chalk. Calling one high luster and the other low is a bit of a stretch.

What is clear by looking at the photos is that the pastel strand is unmistakably more costly than the white. It ain’t worth $8000, but the white isn’t worth $2000. Now I have never used Drucker’s appraising program, but either it sucks, the problem is with the user, or the appraiser was simply pulling numbers out of her ass.

Paula finally got this appraiser to talk to her on the phone and you can imagine she was not in the best mood. She got just a wee-bit defensive. She is an expert!

What this all indubitably comes down to is education. Ten years ago, Paula would not have questioned her appraiser. She has, after all, the credentials! But Paula is a 21st century consumer. She does her own, independent research – on the Internet. I think it is about time that any appraiser that wants to save face in front of a customer does the same thing.

Malaysia is Set to Pearl Again

Malaysia has always held promise for the industry. The water is right, the latitude is right, the Indonesians are growing pearls and they are right next door, but Malaysia has never had much success culturing pearls. The Borneo Pearl Company of Japan set up shop there in 1963, under the laws of Japan’s Diamond Policy, but they were growing black pearls and blisters. This is prime location for a South Sea pearl farm.

A few farms did pop up, but the last was closed in 1993.

But they’re back! Edward Kong, a Malaysian native, is (successfully) culturing South Sea pearls on Timbun Mata Island. Apparently his farm was financed by a loan from Rosario Autore, a million bucks on a hand-shake deal. That man knows potential when he sees it. He is, after all, Paspaley’s only major competitor.

Edward’s pearl farm is the real deal. His production is not enough to make a global dent, but it is nice to see a new player and a new location in the game.

On another note, there’s not much news in the Pearl World of late. It seems everybody has been concentrating on that election thing over in the good US of A. As always, if any of you see or hear of something I have missed, be sure to drop me a post!