Dossier with focus on sea water pearls Akoya – South Sea – Tahiti INTERNATIONAL PEARL FORUM Saturday, 15. February 2014 9.00 a.m.
The word “pearl“ appears in the 18th century for the first time. It derives from Latin “perna“ which means “ham“ due to the similarities between the form of a pearl oyster and the form of a ham. Prior to this, the word “union“ was used in England (derived from Latin “unio“; “one single giant pearl“). The ancient Greeks and Romans called the pearl “margarita“ what can been associated with “marine“. Other assumptions lead to the Persian word “murwari“ which means “child of light“.
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INDEX
Introduction 1. International Pearl Forum 2014 2. Market overview 3. Pearls and Pearl jewellery – History 4. Need-to-know to round off the pearl topic
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1. International Pearl Forum 2014 09:00 - 09:30
Welcome Cocktail
09:30 - 09:35
Opening, Renate Wittgenstein & Stefan Hencke
09:35 - 09:50
Introduction and overview of the market, Laurent Cartier
09:50 - 10:05
Golden Pearls, J.C. Branellec
10:05 - 10:20
The Mexico- and Cook islands’ pearls, Kira Kampann
10:20 - 10:35
Impressions of a shopping trip, T. Schoeffel
10:35 - 10:50
Handling of pearls and pearl testing, M. Krzemnicki
10:50 - 11:05
Pearl prices, J. Gellner
11:05 - 11:20
Market analysis and customer segments, Julie Nash
11:20 - 11:35
Sale of pearls on the internet and on TV, Nick Kwan
11:35 - 11:40
Video trailer POWER OF PEARL (Inspire), Laurent Cartier
11:40 - 12:00
Discussion, moderated by Laurent Cartier
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2. Market overview Pearls belong to the oldest jewellery of humanity. Natural pearls which randomly evolve in the mantle tissue of a shell are very rare and therefore particularly precious. Often, to find such a pearl, thousands of shells have to be searched. Being farmed in large amounts today, these pearls were not on the market before the year 1910. The culture pearl market is classified into saltwater pearls and freshwater pearls. Freshwater pearls for the jewellery market are mainly produced in China – over one billion pearls in the year 2012. With a global market share of 80 percent, Japan is the largest producer of saltwater pearls. It is estimated that, through saltwater pearls, there has been made a turnover of approximately 397 million US $ in 2013, whereby, considering the price, the white South Sea pearls make up the bulk, followed by Akoya pearls and the black South Sea pearls. As bred pearls can hardly be distinguished from natural pearls, but as this distinction has a great impact on the price, the opportunities to define the pearl mussel type as well as a guarantee of origin for purchasers are of increasing importance. This is the only way to detect fraud and fakes.
Facts: o The demand for high-quality culture pearls is still high and the prices are stable to slightly rising. o Regarding the commercial qualities, there is currently a surplus on the world market, explaining the falling prices. o As regards to the production of “black“ pearls, Tahiti has a world market share of 95% and produces 15 tons (90 million US $) every year, state 2013. o In the last months, large rises regarding the prices for certain types of Tahiti pearls could be tracked. o The pearls oft he highest quality are cultured in Australia, being of large sizes and featuring interesting pure colours as well as an excellent shine. However, the Australian pearl industry is currently suffering from the high costs and the great risk in farming. o On the Philippines, the pearl production increases.
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o In Myanmar, thanks to a well organised industry, the pearl production rises again. During the last four years, the production increased from 201 to 302 o Während der letzten vier Jahre, stieg die Produktion von 201 auf 302 kan. o It is estimated that, for the year 2013, the total turnover of saltwater pearls is approximately 397 million US $. o The world market’s volume is divided as follows: Akoya pearls
111 milliom US $ for 6.750 kan
White South Sea pearls
192 million US $ for 3.400 kan
Black South Sea pearls
94 million US $ for 4.200 kan
Total
397 million US $ for 14.350 kan (1 kan = 1.000 momme = 3.75 kg)
Source: Convensis Research 2014, according to Andy Mueller – Kobe, Japan, 2013
o Background: In the last years, the pearl farmers went through a crisis. While the demand, especially in Europe and America, went down since the economic crisis, the farming of pearls has become more and more expensive. However, the production quantities have not been adjusted to the new situation, having a surplus on the world market as a consequence. As the pearl farmers are in urgent need of liquidity, they sell their pearls below their self-imposed price limit respectively even below the production costs, trying to dissolve the pearl stocks accumulated over the years. o With a market share of 80%, Japan remains the largest producer of saltwater pearls. o There is a boom in demand from the Far East, especially from China.
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Boom in demand from Far East There is a strong demand from China, especially as regards to Akoya culture pearls. After World War 2, Japan became the leading pearl exporter. In a relatively short period of time, the production quantities increased from one ton in the year 1952 to 230 tons in the years 1966 and 1967. This led to an overproduction, having considerably falling prices as a consequence. It took a few years until Japan was able to adjust its production amounts to the world market. In the 90ies, the production quantities declined further, whereas they are just under 20 tons today. The main reason for this lies in the strong competition regarding South Sea pearls as well als the increased production costs. Also, the growing pollution is seen as a trigger.
Source: Convensis Research 2014, according to Andy Mueller – Kobe, Japan, 2013
Source: Convensis Research 2014, according to Andy Mueller – Kobe, Japan, 2013
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In addition, the golden South See culture pearls are very popular with Chinese buyers.
Global „White“ South Sea Pearl Production for 2013 State
Weight in Kg
Price in B. Yen
Price in M. US$
Australia
3,750
9
90
Indonesia
5,437.5
5.8
58
The Philippines
2,062.5
2.2
22
Myanmar
1,125
2.4
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Total
12,750
19.4
192
Source: Convensis Research 2014, according to Andy Mueller – Kobe, Japan, 2013
Source: Convensis Research 2014, according to Andy Mueller – Kobe, Japan, 2013
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Source: Convensis Research 2014, according to Andy Mueller – Kobe, Japan, 2013
Due to the surplus, the prices for commercial Tahiti culture pearls as well as for South Sea culture pearls fall.
Source: Convensis Research 2014, according to Andy Mueller – Kobe, Japan, 2013
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Global Black Pearl Production for 2013 State
Weight in Kg
Price in M. US$
Tahiti
15,000
90
Others
750
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Total
15,750
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Source: Convensis Research 2014, according to Andy Mueller – Kobe, Japan, 2013
o A reduction in production oft he large pearl farmers will help to stabilise the market even if smaller farms will hang on to their production quantities. o Tahiti culture pearls in peacock green as well as in new colours, such as gold, copper, silver, blue and pistachio are very popular at the moment, and it is very likely that they will also be in fashion in the coming year. o The prices for Tahiti culture pearls have notably declined just recently. o Last year‘s most popular forms were perfectly round or drop-shaped with sizes over 12 millimetre.
Result In the meantime, less and less freshwater pearls from China enter the market. In the year 2011, with a decline of 30% already, the production notably went back and sank even further in 2012. Among others, one reason for this is policy, trying to limit the regions in which farming is permitted. However, the prices still remain at 80% of 2008’s pre-crisis level, although, due to the wages for workers, the production costs have strongly rised since then. Being cultured with a core and perfectly, Chinese freshwater pearls are much in demand. In the coming two years, the shall make more than half of the supply.
German market In the German market, the cheaper prices are hardly noticeable. However, cheap prices alone will not be able to boost the demand. For being able to tap into new target groups, it is much more important to offer pearl jewellery which is more contemporarily, fresher and younger. As experts see a certain saturation as regards to existing target groups, it is about retail trade to refresh the market with new impulses and ideas.
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3. Pearls and pearl jewellery – History The phenomenon of pearls has always been enveloped with stories and tales all over the globe. In China for example, pearls are linked to the mythical creatures of dragons, as, according to early Chinese narrations, they evolve while dragons fight during thunder storms. For the Hellenes, pearls were the tears of water nymphs. While the Slavs considered them as reflections of lightnings in the eye of a mussel, the Chinese believed that it is the moon light which, under water, turned into stone. Pearls and pearl jewellery in ancient times In the very earliest time alreay, men and women have worn pearls as jewellery. This is proved by literary sources, archaeological findings as well as preserved art treasures. It is said that the Chinese emperor Yu received pearls as a present from Yangze approximately 5,000 years ago. A necklace from the year 300 B.C. is displayed in the Museum of Art in New York. Louvre hosts pearl jewellery which is said to be older than 2,400 years. During the Holy Roman Empire, pearls were among the most popular goods which decorated the powerful and wealthy citizens who, to some extent, used them lavishly. The Roman emperor Caligula’s wife for example took every opportunity to decorate herself with masses of pearls. Caligula himself got his boots adorned with pearls, and he even embellished his favourite horse with a pearl necklace. In his triumphal processions in Rome, Pompeius presented a portrayel of himself which was adorned with pearls. Middle Ages – the pearl as sacral jewellery In Middle Ages, pearls played a less important role for private people, as church demanded the abandonment of personal luxury. However, she never lost her symbolic meaning entirely – quite the contrary: In Christianity, the pearl turned into a symbol for Virgin Mary’s purity and God’s love. Therefore, in the sacral gold work or on pictures of The Virgin Mary and on relic vessels, pearls were used for ornamentation Perls and pearl jewellery in modern times In the 15th and 16th century, pearl jewellery reached a new peak as Christoph Kolumbus found out that, on the new continent, there are many natural pearls, among them approximately 300 unkown pearl-building freshwater mussels. Not much later, pearls turned
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into demanded jewellery at Europe’s royal courts. Elisabeth I (1533 - 1603) is said to be the greatest pearl enthusiast. On paintings, she mostly let herself depict with decorations of pearl necklets, whereby some of the strings even touched her knees. Besides, in Europe, a group of wealthy citizens emerged, wearing pearl jewellery in large amounts and enjoying presenting their richness
4. Need-to-know to round off the pearl topic 4.1 Characteristics of pearls Pearls are either ball-shaped (perfecty round or nearly perfect), symmetric (equally oval or drop-shaped) orr baroque (amorph and unequal). As soon as the pearl has been taken of the shell, it can be worn – a slow milling process as with gemstones is not necessary. When it comes to the evaluation of pearls, translucence, lustre, surface cleanliness and -texture, size, shape and symmetry are decisive. Also the ground colour and the orient respectively the overtone (nuance) are distinctive features. In addition, the origin of the pearl plays an important role as regards to the evaluation. The primary colours of pearls range from apricot (yellowish-orange) and champagne (roseyellowish) over black, blue, bronze (reddish-brown), chocolate brown, cream, gold, green, grey, orange, peach (rose-orange), plum (reddish-purple), purple, red, violet, white to yellow and many shades in between. The “orient” or “overtone” is the nuance of the pearl and does, together with the luster, only comes with pearls of the highest quality. Consisting of translucent colours, this overtone moves along the ground colour of the pearl body. It accentuates, contrasts and intensifies the depth and the shine of a pearl. Although the orient is unicoloured, a variety of colours can be seen. The luster is also influenced by the size of the nacre, whereas the surface condition is crucial. As a pearl with a smooth, regular surface better reflects the light as a pearl with inclusions and defects..
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4.2 Pearl classification: natural and cultured pearls Natural pearls Genuine pearls evolve when, through embedded parasites or violation’s of the auster, the skin cells of a mussel’s mantle tissue enter the mantel tissue. A cyst, the so-called pearl sack, emerges. Around it, layer by layer, calcium carbonate matures, leading to the formation of a pearl after months to years. The pearl’s characteristics are thereby determined by different factors. The bigger the penetrated foreign body is, the larger the pearl will be. But also the region, in which the mussle lives, is of influence. With perfect characteristics and an accordingly high value, genuine pearls are extremely rare. This explains why the pearl market is mainly dominated by cultured pearls since the 20th century. Cultured pearls To favour the emerge of a pearl, with
cultured pearls, man interferes in the natural
conditions. In this process, the tissue of the pearl mussle is scratched, and one part of the tissue is placed in another mussle. Back in its natural habitat, mother of pearl evolvs around this violation. In cultured pearls which are farmed with a core, a second one is inserted. After that, the mussle has to be watched and cared for for two to six years. Thereby, the mussle is cleaned on a regular base, and there are steady controls whether the mussel’s living conditions are correct. Because the quality and the temperature of the water are highly important for the growth of the mussle and therefore of the pearl. Nevertheless, as most factores are related with the natural living circumstances of the mussels which are can hardly be influenced by farmers, cultivation remains difficult. This is why, as a result of pollution, typhoons or eathquakes, great losses arise again and again. But even when the conditions are optimal, only a low percentage of the pearls are of good and only one to two percent of a very quality.
4.3 Types of pearls 4.3.1 Saltwater pearls Akoya culture pearls Akoya culture pearls are the classic Japanese culture pearls of the Akoya auster ("Pinctada martensii" and "Pinctada fucata"). It is one of the oldest and most famous types of pearls in the world and convinces with perfectly round shapes and a brilliant shine. They exist in sizes
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between 2 mm and approximately 10 mm. The colour palette ranges from creme to whiterose, from champagne to grey-blue.
South Sea culture pearls South Sea culture pearls mainly come from Australia, Indonesia, the Philippines and Tahiti and are cultured with a core. As an auster, the "Pinctada maxima" respectively the "Pinctada margaritifera" is used. Depending on the farming region, the colours of the pearl range from white-blue (Australia) over crème-gold (Indonesia/Philippines) to light grey-black (Tahiti). It reaches a size of 8 mm to 20 mm and is one oft he most expensive cultured pearls. Although the Tahiti culture pearl is treated as an individual culture pearl type, it belongs, as well as the others, to the South Sea culture pearls. For a better understanding, we have presented the Tahiti culture pearl as an independent pearl type. Amount offered in one year: approximately 16 tons. Tahiti culture pearls In sizes between 6 mm to 20 mm, Tahiti pearls evolve in the black-lipped "Pinctada margaritifera" which mainly lives in French Polynesia. This type of pearl is especially known for its strong colours like silvergrey-green and black, with nuances in green and peacock. Also, they often have a good luster, giving them the name "Queen of pearls". Amount offered in one year: approximately 16 tons. Keshi pearl Keshi pearls (poppy seed pearls) are tiny little pearls which emerge unplanned, while a much bigger pearl with core matures in the Akoya mussle. Although Keshi pearls have no core, they only evolve through human intervention in an Akoya mussle, explaining why they cannot be considered as natural pearls. They have the same colour spectrum as Akoya pearls.
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Mussels which bring forth South Sea and Tahiti pearls also produce Keshi pearls. Sometimes, they are longer than 10 mm. Thanks to their interesting and Muscheln, die Südsee- und Tahiti-Perlen hervorbringen, produzieren auch Keshi-Perlen, die manchmal mehr als 10 mm lang sind. Aufgrund der interessanten und exceptionalo shapes, they are often used to make jewellery.
4.3.2 Freshwater pearls Freshwater pearls are distinctive in the way that no core is inserted, but that the mussel is stimulated to build pearls through a small cut in the tissue in which a tiny tissue peace of another mussle is placed. This is done approximately 50 times per mussle, so that, theoretically, the same amount of pearls can emerge. The mussels, among them Hyriopsis schlegelii (Martens, 1861) are then taken back in their habitat and are cared for for two to six years. As the pearls are without a core, they shine especially strong and are very colourful. However, they are only seldom perfecty round, but baroque shaped. As these mussels are less sensitive and, in freshwater, are exposed to less natural disasters, they are much easier to be cultured. In the last years, more and more freshwater culture pearls enter the market, for example the Ming or Edison pearls. After providing the first freshwater culture pearls without a core at the beginning oft he 60ies, China is still their biggest producer. In the meantime, it is possible to culture nearly round pearls of a size of 20 millimetres and with a fine luster even without a core. However, China also produces freshwater pearls with a core which can reach a size of up to 14 millimetres and look similar to the Japanese freshwater culture pearl. . Biwa pearls Biwa pearls are named after their origin, Japan’s biggest lake. They are famous for their regular and strong luster which emerges trough an especially smooth surface. They are available in the colours crème-white, white-rose, salmon-organe, dark wine red and violet. As the austers do not accept cores, the pearls grow in different shapes and are almost never round. In the market, to rise the price, Chinese freshwater pearls are often labeled as Biwa pearls. Kasumigaura culture pearls This type of pearl originates from the Kasumigaura lake and stands for a new generation of Japanese freshwater culture pearls. A round core is inserted in the mussel, letting large pearls grow up to a size of 16 millimetres. Most of them are perfectly round. The coulour
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palette ranges from light to dark rose over orange, violet, white to purple, whereby most pearls have an excellent luster. So far, there are only three farms on which this type of pearl is cultured, explaining why the demand is much higher than the offer. Approximately 10,000 of these pearls are produced per year. Similar pearl types are the Ming and the Edison pearls from China.
4.3.3 Freshwater pearls The river pearl mussel “Margaritifera“ only lives in absolutely clean and waters deficient in lime which can be found in the Northern hemisphere and whoch are considered an optimal environmental indicator. It reaches a maximum size of 14 cm, explaining why only smaller, not entirely round pearls can emerge in her. In addition, they have a weaker luster than saltwater pearls. A pearl of four millimeter requires a growth period of 20 to 25 years, a pearl of six to seven millimetres requires 40 to 50 years. Freshwater pearls with a size of over 20 millimetres are extremely rare, as they can only be found in over 250 year-old mussels. Therefore, it is not surprising that these pearls often turn out to be artifacts.
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Sources
Internet www.hinatatrading.com (Andy Mueller – Kobe, Japan) www.geller.com www.gz-online.de www.ethilfe.ethz.ch www.perlenforum.de www.gaurapearls.de www.wikipedia.com
Report „A brief Analysis of the Global Seawater Cultured Pearl Industry“. 2013, Andy Mueller, Kobe Japan.
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