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Policy Framework on Diamond Trade in China

Policy Framework on Diamond Trade in China

wholesale pearlsChanges in the taxation policy and policy on import-export of diamond were effected since 2000. These changes were introduced in order to develop China’s consumer market for diamond jewellery, to give full play to the labour and the technological advantages that China enjoys in this field, and to develop its processing, and increase export, employment and revenue. The changes were prompted by both domestic and international factors.

The policy framework for diamond trade evolved and altered as a function of several domestic and international factors impinging on the diamond trade in China. Taking the international issues first:

  1. As China opened up to the international economic system starting late 1970s, China’s rudimentary but growing diamond market came under severe strain. China’s diamond resources are limited, and prior to the new regulations, diamond trade in China was rather chaotic and lacked regulation. Especially, the composite trade in diamond import was perceived to be high as compared to that in major diamond producing or trading countries, thereby acting as a disincentive to foreign diamond players from investing in China.
  2. Second, China’s diamond processing industry is not only disparate, but its dependence on overseas resources is also large. Figures from China Customs reflect that, in the period between 1995 and 2001, average annual import of diamond in processing trade was US$271 million, while average annual export volume was less at US$226 million. Thus, as China entered the WTO, it realized that unless the existing situation where processing trade was not contributing in value added terms was reversed, the situation would be even more difficult under intensified competitive rules within the WTO.
  3. Third, China is a party to the certificate-based Kimberley process for legal international trade in diamonds. Thus preventing smuggling and non-standard trade in diamonds was an obligation that China was internationally mandated to complete.
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As for domestic compulsions prompting the regulatory changes, the following needs to be highlighted:

  1. First, it needs to be noted that China has emerged in a relatively short span of time as the second largest diamond processing nation, after India. Import of semi finished diamond in 1995 was barely US$ 88.44 million, which increased to US$ 510 million by 2001. Rapid growth in diamond processing in China exhorted a streamlining of the framework of diamond trading.
  2. Second, the diamond jewellery market in China has also undergone rapid development since the 1990s. Sales volume of diamond jewellery in the domestic market was only over 2 billion RMB (about US$ 244 million) in 1995, and by 2001, the figure increased to 14.5 billion RMB (about US$ 1.8 billion). De Beers has declared China as the fifth largest market in the world. As China tries to achieve the goal of rapid economic development and modernization, the prospects for the diamond industry appear to be bright.
  3. Third, in keeping with China’s developmental priority which values development of capital- and technology-intensive industries like diamond processing (which also generates employment), the industry has come in for special focus of the State. China’s processing trade based on import of raw material raises dependency on foreign suppliers, as most need to go through foreign intermediaries for raw material. Second, the processing and trade firms are of small scale, thereby lacking in economies of scale. A further characteristic of the diamond trade in China is that it is incongruous with the country’s resource endowment. For instance, in the period 1995-2001, average annual import of diamond was 450,000 carat, while export was over 7 million carat, making China a net exporter of diamonds. Article source: Articles source: Gems & Jewellery Industry in China, Embassy of India, Beijing south sea pearls wholesale

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Various Segments of the Chinese Jewelery Market

Various Segments of the Chinese Jewellery Market

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In order to understand the overall and sectoral growth trends in gems and jewellery in China, it would be useful to study the matrix of forces at work in the individual segments of the market:

Diamond

Demand for diamond in China is increasing and the diamond industry is growing quite fast. Previously, diamond was used only for industrial use, and rarely for jewellery. After diamond was found in the three provinces of Liaoning, Shandong and Hunan, the diamond industry started developing in the 1980s. In those days, it was mainly used for export, with a total annual earning of US$ 60-80 million. Now, with increasing domestic demand, a substantial portion needs to be imported. At present, there are over 200,000 people engaged in the diamond industry. Diamond consumption in China is estimated at over US$ 2 billion, and is growing at the rate of 15% and more, especially engagement and wedding rings with 0.5 carat or 1 carat of diamond, which are very popular with young consumers.

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According to some experts with the China Gemmological Association, diamond consumption in China will surpass Japan in 10 years’ time, with annual consumption reaching over US$ 10 billion. In diamonds, China occupies 1.8% of the world’s diamond market share. Shanghai accounts for one-fifth of China’s total diamond consumption. Shanghai is moving towards becoming one of the world’s top diamond jewellery markets, registering a 40% annual growth in the last four years. In the first 11 months of 2002 China imported diamonds and related products worth US$ 38.3 million through the Shanghai Diamond Exchange (SDE), the only legal trading channel in China (functioning since June 2002).

During this period, the SDE imported US$ 37.4 million worth of diamonds for ornament making, including finished diamonds making up 97.7% of the company’s total diamond imports. The other US$ 900,000 worth of diamond imports were for industrial use. The figure highlights the rapid growth in legal diamond imports and increasing non-industrial use of diamonds ever since the central government exempted the SDE from tariffs on diamond products in July 2002. In 2003, transactions volume at Shanghai Diamond Exchange was US$ 277 million.

Business turnover in diamond trading reported a 39% rise year-on-year to US$ 80.8 million during the first quarter of 2004 at the Shanghai Diamond Exchange. A continuing rise in diamond wholesale price in international markets shored up the trading in Shanghai, with the volume registered in March 2004 hitting a record high. In March 2004, trading of diamond totalled at 40.7 million dollars, up 91% year-on-year, with diamond imports rising 48% to 12.2 million dollars, and raw diamond trade soaring 270% to 3.71 million dollars. Trade in raw diamond accounted for 10.45% of the total trading volume during the first quarter of 2004, rising many times over the previous year.

However, the import volume lags far behind consumer demand for diamond products in China. Diamond smuggling is still a widespread problem. The large percentage of imported diamonds used for ornament making indicates China’s demand for diamonds remains brisk. Since 1993, China’s diamond retailing business has made rapid progress. China’s economic growth in the 1990s and a large population base of 1.3 billion has attracted the world’s attention, and a number of international brands have wasted no time opening up retail outlets in major cities like Beijing, Shanghai and Guangzhou.

Most prominent have been businesses from Hong Kong and Taiwan, with all famous gems and jewellery businesses in Hong Kong having shifted their strategic nerve-centre towards the Chinese mainland. For instance, four Hong Kong jewellers, namely Chow Tai Fook, Tse Sui Luen (TSL) Jewellery, Chow San San and Luk Fook Holdings, rank among the top 10 diamond jewellery brands in China, according to an industry magazine Gold Jewellery. Sales volume has also grown in tandem. In 2001, sales volume of diamond jewellery was 14.6 billion RMB (about US$1.8 billion), and its annual growth at 30.36% was the highest within the whole gems and jewellery sector.

In 2002, sales volume increased a further 20.55% to 17.6 billion RMB (about US$2.1 billion). Year = Sales volume of diamond (RMB billion) 1990 = 1.4 RMB billion 1993 = 2.0 RMB billion 1996 = 4.444 RMB billion 1999 = 8.831 RMB billion 2000 = 11.2 RMB billion 2001 = 14.6 RMB billion 2002 = 17.6 RMB billion Article source: Articles source: Gems & Jewellery Industry in China, Embassy of India, Beijing south sea pearls wholesale

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Pearls, Gems, and Jewellery Industry in China

Pearls, Gems, and Jewellery Industry in China

The Jewellery Market In China

This chapter includes information on:

  1. History and development trends of China’s jewellery market
  2. Prospects for the jewellery market in China
  3. Individual segments of the jewellery market in China
  • Diamond
  • Gold
  • Platinum
  • Silver
  • Pearl
  • Others
  • Regulatory framework
  • Shanghai Diamond Exchange
  • Policy changes in trade in Diamond
  • Shanghai Gold Exchange
  • Operational framework
  • Geographical Distribution of the jewellery industry in China

Gems and jewellery industry in China has over the past 25 years of reforms and opening-up grown from a non-existent base to emerge as a new industry with dynamism and high development prospects. The annual production of the industry, including various types of gems and jewellery, is valued at 120 billion RMB (about US$14.6 billion). The industry employs an estimated 5 million people. Further, the industry is growing at the rate of over 10%. This is coupled with sustained high growth rate of the Chinese economy for more than two decades and the prospects for continued growth as China unveils a scheme for realization of comprehensively well-off society (xiaokang) by the year 2020. Gems and Jewellery businesses all over the world have started turning towards the Chinese market, trying to promote their brands and sell their
products.

There are plenty of factors as to why gems and jewellery industry in China should be able to maintain its growth over the medium term.

  1. First, jewellery is traditionally a luxury item of consumption, and demand for jewellery is highly elastic to income. As China’s per capita disposable income rises, jewellery, after real estates and automobiles, has emerged as the third hottest item of consumption in recent times.
  2. Second, the appeal for jewellery is the highest among younger consumer sections. China’s young working age population is quite high. There is also a large demand from the matrimonial market. Every year, about 18-22 million people in China get married. Total annual wedding expenses in China are estimated at 250 billion RMB (about US$ 30.5 billion). Even if one-tenth of that is used for jewellery consumption, the figure is a high 25 billion RMB (about US$ 3.1 billion). The younger consumer section is also fashion-conscious, and the rate of design obsolescence is fast, thereby helping innovation and sales. The high growth of diamond and platinum jewellery witnessed in the Chinese market after the initial rush for gold in the 1980s can be attributed to the desire for new and trendy ornaments among the younger consumers. According to consumer research of Diamond Trading Company (DTC), a subsidiary of the De Beers Group, three out of four brides in Beijing and Shanghai expect their husbands to buy them diamond wedding ring. Wedding rings account for one-third of all diamond sales in China.
  3. Third, foreign tourists in China are also one of the major categories adding to jewellery demand in China. Every year, over 30 million travellers from all around the world visit China, and it has been estimated that their annual spending on Chinese jewellery is over 10 billion RMB (over US$1.2 billion). As China brand becomes popular overseas, especially in traditional areas of Chinese strength like jadeite, jade ornaments and pearls, as well as new areas like diamond processing, the demand in these segments would only grow.
  4. Fourth, as China’s GDP and per capita income increases, a part of the consumer class has started using jewellery items as items of domestic use, for instance gold and silver cutlery and decorative items. Due to a combination of all these factors, it is predicted by industry sources that by 2010, China’s jewellery consumption, at the existing rate of growth, will exceed US$ 35 billion, making China the second largest consumer nation in the world.

Article source: Articles source: Gems & Jewellery Industry in China, Embassy of India, Beijing
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We send your purchasing parcel via FedEx, we inform you the tracking number as soon as possible
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Wholesale south sea pearls : PEARLS QUALITY & PEARLS CRITERIA

Wholesale south sea pearls : PEARLS QUALITY & PEARLS CRITERIA

The quality of a pearl is determined mainly by the following five factors.

  1. Size
  2. Coating
  3. Luster
  4. Shape
  5. Color

An expert assesses each single criterion on the basis of a detailed grading of the individual factors. In the case of single or double strings of pearls, the combination of individual pearls plays an important role. Nevertheless, the standards used in their assessment are very much more diverse and closely interlinked. A conclusive evaluation of the quality of a pearl or string of pearls therefore calls for enormous experience. (reference: wholesale south sea pearls )

PEARLSCOM.QUALITY_2048x2048

(reference: wholesale south sea pearls )

DETERMINING THE VALUE OF PEARLS – ASPIRING TO THE HIGHEST POSSIBLE QUALITY

Ultimately, the interplay of these quality factors determines the value of a pearl. Assessing these criteria calls for a good deal of experience. In order to simplify the customer’s choice of the right pearls and to guarantee the highest possible quality, Bucherer became the fi rst jewelers worldwide to introduce a pearl certifi cate. Here, an expert provides a detailed description of the individual quality criteria and endorses them for the customer. (reference: wholesale south sea pearls )

  1. A = Top quality in all ranking categories (approx. 3 %).
  2. B = Very good quality, with very slight divergences from top quality (approx. 10 %).
  3. C = Good quality with visible divergences regarding surface quality and shape, good luster (approx. 12 %).
  4. D = Inferior quality with visible divergences in all ranking categories (approx. 25 %).
  5. E = Poor quality with very marked divergences in all ranking categories (approx. 30 %).
  6. F = Defective pearls, which as a rule cannot be used for jewelry (approx. 20 %).

(reference: wholesale south sea pearls )

PEARLS SIZE

Depending on species, pearl size varies between approx. 3 and 18 mm in diameter and in very rare cases may be even larger. The value and rarity of a pearl increase with its size. (reference: wholesale south sea pearls )

White_South_Sea_Pearls_Wholesale_Miss_Joaquim_Lombok Pearls_Indonesia
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PEARLS SURFACE QUALITY

A pearl’s surface quality is assessed on the basis of the naturally occurring signs of growth. The surface itself should be as smooth and uniform as possible. The smaller the number of natural irregularities, the more valuable the pearl. (reference: wholesale south sea pearls )

Surface Quality Grade
Surface Quality Grade

(reference: wholesale south sea pearls )

a) Spot Level (type and size of blemish)
b) Distribution of blemishes over the surface

  1. No inclusions, or at least 80 % of the surface is pure, i. e., it has absolutely no imperfections or inclusions, otherwise just very small spots.
  2. At least 60 % of the surface is pure, i. e., it has absolutely no imperfections or inclusions, otherwise just very small spots.
  3. The surface has only few imperfections, i. e. slightly weak spots (not deep) are distributed across the surface.
  4. The surface has many clearly visible inclusions, i. e. relatively deep and visible spots are distributed across the entire surface.

c) Coating
Since pearls are a product of Nature, their coating, or grain, may not always be as flawless as we might wish. Th e structure of a pearl’s skin may range from completely smooth to a coarse grain.

(reference: wholesale south sea pearls )

PEALRS LUSTER

pearl table
pearl table

(reference: wholesale south sea pearls )

A pearl’s luster, or inner glow, is the most important factor in assessing its value. It is determined mainly by the layers of nacre and the overall surface quality. Th e better the luster, the more pronounced the pearl’s iridescent shimmer.

  1. Finest quality : very good clarity, optimum refraction, clear reflection
  2. Very fine quality, excellent: very good refraction and good reflection
  3. Fine quality, good : good refraction and reflection
  4. Commercial quality, matte : possibly thin coating with “ milky ” (weak) refraction and reflection

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PEARLS SHAPE

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pearls shape – Miss Joaquim Pearls Wholesale – Whatsapp +6287865026222

Pearls come in an array of shapes, such as round, drop, pear and baroque. The most coveted – and thus most expensive – of these are perfectly round pearls. Nevertheless, well-balanced baroque shapes are becoming increasingly popular. (reference: wholesale south sea pearls )

SHAPE:

  1. round
  2. near round
  3. drop /oval
  4. button
  5. baroque
  6. circled

PEARLS COLOR

South_sea_pearl_colours
South_sea_pearl_colours

(reference: wholesale south sea pearls )

The choice of color depends on the wearer’s skin tone and personal taste. Regarding color, a basic distinction is made between actual body color and the overtone – the color of the reflection on the surface. Th ese two tones may be identical or completely diff erent. For example, pearls with a basic gray-greenish undertone and intensive iridescence in a different color are known as peacock pearls. (reference: wholesale south sea pearls )

Reflections
like these, however, are also found in other pearls. It is simply that the dual colors of the peacock pearls from French Polynesia are the most readily visible. And because color is a descriptive feature, the variety of descriptions is virtually unlimited. Every pearl possesses a diff erent combination of color and reflection. Its price, therefore, depends very much on the popularity and rarity of the individual color combination. (reference: wholesale south sea pearls )
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This is my name, my phone number and my address, as a sender (written by FedEx)
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We send your purchasing parcel via FedEx, we inform you the tracking number as soon as possible
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Water Pearls Wholesale : VARIETIES OF PEARLS

Water Pearls Wholesale : VARIETIES OF PEARLS

A NATURAL WEALTH OF COLOR

natural pearl shapes

( Foto Source: Water Pearls Wholesale )

The color of a pearl is determined by the species of mussel. Silvery-gray to black or also dark gray and green Tahiti pearls come from French Polynesia. South Sea pearls, cultivated in Lombok Pearls Indonesia, Australia and in the Philippines, vary from brilliant white and cream-colored all the way through to intensive golden tones. The colors of freshwater pearls range from white through pink to an intensive purple. ( source: Water Pearls Wholesale )

SOUTH SEA PEARLS – THE LARGEST PEARLS OF THEM ALL

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Indonesia south sea pearls wholesale – Miss Joaquim Pearls – whatsapp +6287865026222

( foto/source: Water Pearls Wholesale )

South Sea cultured pearls are widely considered to be the queens of all pearls. They are large, rare and breathtakingly beautiful, attaining a diameter of up to 20 mm, and, in some rare cases, even more. Pale South Sea cultured pearls are produced by Pinctada maxima, one of the biggest known varieties of oyster. Th is tropical mussel, which has a diameter of up to 25 cm and weighs up to 5 kg, is the source of correspondingly valuable cultured pearls. These rare gems have a soft , velvety luster that gives them a very delicate overall appearance. Pearls grown in the Pinctada maxima oyster range in color from silvery white or cream to golden. They are cultivated on the coasts of the Indian and Pacific Oceans. ( source: Water Pearls Wholesale )

GOLDEN PEARLS – THE NEW GOLD

By selectively isolating or crossing different species of oyster, pearl cultivators constantly aim to breed pearls in new and different colors. Gold-colored pearls from the South Seas, for instance, have been on the market since the late 1970s. Until recently these pearls from the Philippines, which range in color from a very intensive gold to pale orange-tinted shades, were mainly traded in Asia. Th ere, in the past ten years, they have gone from strength to strength and, next to white South Sea pearls and the beautiful black varieties from Tahiti, have a fixed place in the standard pearl collection of any self-respecting lady. ( source: Water Pearls Wholesale )

The Vanilla Overtone Golden Pearls now available from Miss Joaquim Pearls are the result of many years of working to isolate a subspecies of the gold-lipped Pinctada maxima from other species. The pearls tend to be a slightly paler gold in color and are therefore perfectly suited to European skins, which are likely to have far less long-term exposure to the sun. To date, only very few farmers in southern Indonesia have succeeded in breeding pearls in this rare color tone. ( source: Water Pearls Wholesale )

PEARLS FROM TAHITI AND FIJI – DARK BEAUTIES

Tahitian Black Pearls 1
Tahitian Black Pearls

( foto/source: Water Pearls Wholesale )

Tahitian cultured pearls are known as dark South Sea cultured pearls and are cultivated exclusively in the turquoise-colored lagoons and atolls that encircle French Polynesia. These rare pearls, which have a diameter of 8 to 16 mm (even larger in some rare cases), are produced by the black-lipped Pinctada margaritifera oyster. Apart from their size, the mysterious colors and tones are among the most enchanting characteristic of Tahitian pearls. This iridescent play of colors ranges from pale, silvery gray through to dark green, luxurious anthracite and jet black. ( source: Water Pearls Wholesale )

INTENSIVE COLORS THAT MIRROR NATURE

Fijian pearls are likewise the product of the black-lipped oyster and thrive in the completely unspoilt waters around the island of Vanua Levu to the north of Fiji. Farmed only in small numbers, Fijian cultured pearls come in shimmering nuances of natural pistachio-green and other pastel tones that seem to refl ect the lush vegetation of this South Sea paradise. ( source: Water Pearls Wholesale )

AKOYA PEARLS – THE MOTHER OF ALL CULTURED PEARLS

pearl table
pearl table

( source: Water Pearls Wholesale )

Just over 100 years ago, akoya-gai, as the Japanese call the Pinctada martensii oyster, was the source of the first cultured pearls of them all. The akoya pearl stands out head and shoulders above all other cultured pearls when it comes to the most fascinating and highly valued quality criterion of them all : luster. Th is explains why they have been so highly sought aft er on the world’s markets ever since they first appeared in 1921. It is also considered to be the most classic and feminine type of pearl. Today, akoya pearls are available in sizes from approximately 6 to 10 mm in diameter. Strings of pearls averaging 9.5 to 10 mm in good quality are more of a rarity. The best of all akoya cultured pearls, which also satisfy Bucherer’s exacting demands, still come from Japan. ( source: Water Pearls Wholesale )

FRESHWATER PEARLS – FREEDOM OF FORM AND COLOR

fresh water pearls
fresh water pearls

( source: Water Pearls Wholesale )

The myriad shapes and colors, combined with the attractive prices of cumingii cultured pearls, have enabled them to assume a new, young and feminine image. Unlike akoya and South Sea cultured pearls grown in salt water, which always have a mother-of-pearl core, freshwater pearls are as a rule coreless. Cumingii pearls are produced either by the Hyriopsis cumingii mussel or by crossing with the Hyriopsis schlegeli mussel. This kind of mussel is considerably larger than the akoya oyster and capable of producing several pearls at once. With few exceptions, almost all cultures are found in southern China. ( source: Water Pearls Wholesale )

MING PEARLS

ming pearls
ming pearls

( source: Water Pearls Wholesale )

Research into pearl cultivation continues undiminished, and it is now possible to cultivate freshwater pearls with a core. All previous attempts had garnered little success and resulted merely in the production of a few Japanese pearls known as kasumiga. Th e “new” freshwater pearls with a core come from the same mussel (Hyriopsis cumingii / Hyriopsis schlegeli) and are cultivated in China. They are reputed to have been called Ming pearls in honor of the great emperors of the mighty Ming dynasty. ( source: Water Pearls Wholesale )
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abdurrachim pearl fedex
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This is my name, my phone number and my address, as a sender (written by FedEx)
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We send your purchasing parcel via FedEx, we inform you the tracking number as soon as possible
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