There are several unlikely reasons to buy fine jewelry right now: toxic oceans and taxes.
Pollution is killing off the large oysters that produce some types of cultured pearls, says Gianmaria Buccellati, a Milan jeweler with a store in Beverly Hills.
At the same time, pearls--the oversize South Seas variety in particular--have become increasingly popular. First Lady Barbara Bush, who wears her costume-jewelry version on many public occasions, influenced the trend.
Because large pearls are scarce, prices have gone up three times in the last two years, Buccellati says. He predicts prices will continue to escalate.
A choker of 12-millimeter South Seas pearls sells for $120,000 and up. A strand of rare gray South Seas pearls sells for $510,000 at Harry Winston, the New York-based fine jewelry store that opened a branch on Rodeo Drive this month.
Not all pearls command astronomical prices. Some, in fact, are bargains this season.
Smaller, 6- to 8-millimeter pearls have remained stable in price, says Devin Macnow, spokesman for the Cultured Pearl Assn. "That's where the best buys are."
For example, 7-millimeter pearls in longer, more versatile lengths, especially the 32-inch strands, range from $2,500 to $3,500.
The demand isn't limited to real pearls. At Kenneth Jay Lane, a costume jewelry store that carries the triple strand favored by Barbara Bush, \o7 faux \f7 pearls are the foundation of the business. Prices start at $25, for earrings.
"Pearls just won't die," says Melissa Parker, vice president of marketing and retail operations for Ciro, which owns Ciro and Kenneth Jay Lane stores.
The newest costume looks are the same exaggerated styles in demand in the fine jewelry market. "Bigger-millimeter pearls--as many as 18 millimeters," Parker notes. "I don't see demand tapering."
For the holidays, the firm is featuring gray, gold and black pearl chokers. Spring will bring more colored pearls, including beige and pink, she predicts.
Diamonds are in demand this holiday season, too. And, as with pearls, the preference is for rare varieties. "People are looking for colored diamonds--pink, gold, canary, blue," says Ronald Winston, president of Harry Winston.
"Fancy, colored diamonds have gone up five to eight times in price over the last four or five years," he says.
