LEAD IN:

Diamond encrusted guitars, giant rubies and golden pyramids were just some of the highlights of 2016's run of jewellery fairs across the globe.

But war, political uncertainty and economic turmoil took centre stage this year as most countries reported a downturn in jewellery markets.

STORY-LINE:

In January, Tokyo kicked off a year of glittering jewellery fairs in a sparkling mood.

The increasing economic uncertainty around the globe that marked the end of 2015 did not seem to be weighing heavily on the industry with organisers remaining optimistic about the market as a whole.

The centrepiece of the show was this 400 karat diamond guitar worth a cool US$2 million.

In March 2015 it was certified by the Guinness World Records as the world's most 'valuable guitar'.

It took 68 designers and craftsmen 2 months to complete this unique piece, which is made with 10,000 diamonds.

Other extravagant and novel designs included unique LED jewellery by Tohkoo.Co. Ltd.

The company developed very small LED lights and incorporated then into jewellery items such as earrings and even nails.

By February in Bangkok prospects for the industry were not looking quite so shiny.

The Thailand Gems and Jewellery Fair takes place twice a year and is Asia's second largest trade show, attracting around 1,800 exhibitors.

But traders at the fair reported that the industry was struggling.

Foreign exhibitors were allowed to sell gems and jewellery duty-free. Many local exhibitors cut their prices too. This meant buyers saved about 20 percent, which traders hoped would encourage people to buy more.

The tactics became necessary due to the continuing effects of the global economy knocking onto the gems and jewellery market.

Anthony Peter Brooke, Vice President of the Thai Gem and Jewellery Traders Association said the collapse of China's market had been particularly damaging.

"The China market has now unfortunately collapsed, and that's not the wrong word to use, it genuinely has collapsed. It's probably going to take another 4 to 5 years to get back to the state that it was before. What that means is that prices have basically collapsed. The raw material producing countries are no longer able to sell the amounts that they were before because of this big price differential."

But rubies and sapphires were still deemed safe bets - remaining in demand by the China market and maintaining their price.

Over in Hong Kong, platinum was the saviour at March's International Jewellery Show.

Traders said they were revelling in record low costs for the metal, with prices at their lowest for 7 years.

Platinum remains a popular material for jewellery, particularly in western wedding rings and minimal design pieces.

More than 2,500 exhibitors from 41 countries and regions including India, Thailand and Turkey showcased their products at the 2016 show.

As one of the biggest jewellery consuming countries, gold-loving India said its jewellery industry had been slowing down and Indian traders voiced concern that their government's plan to reintroduce excise tax could result in a drop in sales.

For Istanbul's spring show, luxury and extravagance took centre stage with designers showcasing high-end pieces to customers.

This was the most expensive creation costing 6.3 million US dollars.

The miniature model of the Pyramids of Giza is made of 1,568 pieces of 24 carat gold, and weighs 157 kg.

In the jewellery pavilions, this queen of the Istanbul exhibition gold ring made of 20 and 7 carat diamonds was priced at 345,000 US dollars.

This dagger made of gold and giant rubies was valued at 250,000 US dollars.

And anybody who took a shine to this gold coated Mercedes car would have needed a cool 220,000 US dollars to drive it away.

But behind the luxury and extravagance, Turkish jewellery exporters reported that regional tensions between Turkey and Russia were having an impact on the market.

Relations between Russia and Turkey have soured over the conflict in neighbouring Syria, and have become particularly strained since Turkey shot down a Russian warplane in Syria on November 24.

The Kremlin, meanwhile, was displaying an array of jewellery of its own.

Known for its dazzling golden domes, at the end of March it presented a sparkling collection of jewellery in its museum.

The diamond flowers and gold birds form part of a collection of work on display by award-winning Russian jewellery designer Ilgiz Fazulzyanov.

Fazulzyanov is the first living designer to have been given a solo exhibition in the Kremlin since Pierre-Karl Faberge in 1917.

In Mumbai in August, the annual India International Jewellery Show saw jewellery makers reporting a slowdown in the industry due to soaring gold prices.

But they said designers were compensating by getting more innovative with their designs.

The gems and jewellery sector contributes about six percent to India's gross domestic product (GDP), according to the India Brand and Equity Foundation.

That's due to high local demand and India's role as major centre for cutting and polishing diamonds.

Jewels play an important role in weddings, festivals, or any special occasion in India, making them a much sought after commodity.

Not only jewellery, but also art works, ornaments and even clothing are crafted from gold, silver and platinum and studded with diamonds and precious gems.

One of the highlights of the show was the "Peacock Ring", which holds the Guinness World Record for the most diamonds set in a single ring: 3,827 diamonds in all.

Weighing slightly more than 50 grams, the ring was created by Savio Jewellery and has an estimated value of 2,744,525, US dollars.

The majority of the show had jewellery designed for women, priced from a few hundred dollars to several thousand.

Jewellery designer and blogger, Prernaa Makhariaa says Indian designers were experimenting with innovation, blending traditional Indian styles with Western designs to attract buyers.

"There has been an infusion of diamonds with gold, or diamond with different kind of textures. It's not only diamonds, but even coloured stones are being mixed with gold or with silver or with brass and copper. So India is getting innovative with a lot of different manufacturing techniques and they are trying to play with textures and different kind of materials."

In London, UK traders were confident their products had not lost their sparkle despite the Brexit vote.

Experts at the International Jewellery London show said a weak pound, innovative design and a diverse marketplace for suppliers were just some of the reasons the UK jewellery market was thriving.

Michael Rawlinson is chief executive of The National Association of Jewellers, the main industry body in the UK.

He said: "The British market actually has responded quite well post Brexit at the moment, people have some level of certainty, even if it is leaving the European Union, so we've seen a strengthening of trade in the last couple of months."

With innovative designers continuing to emerge from the UK's most important jewellery schools in London and Birmingham, Rawlinson said 'brand Britain' was as strong as ever.

Examples of innovation came in the form of London-based designer Joanna Boyen of Biiju and her explosion designs and Katy Tromans' fairytale inspired silver rings.

Finishing off the season in October it was back to Istanbul.

Dazzling Turkey's 2nd jewellery fair of the year was this miniature of Istanbul's Camlica Mosque made of gold.

The 300 kilogram piece honouring the largest mosque in Asia Minor (Anatolia) was valued at 10 million US dollars.

But Turkish traders were not celebrating.

Turkey is one of the top three global producers together with Italy and India, but the usually buoyant jewellery sector was waning.

The situation in Syria, terror attacks, a failed coup and a long-running internal conflict with the Kurdish minority all impacted.

Exhibitors attending the show reported an export market drop of 18% overall in the last year according to the Turkish Jewellery Exporters Association. Total exports were 1.4 billion US dollars

Russia, Iran, UAE and Iraq, traditionally the biggest customers of Turkish jewellery, bought fewer Turkish products.

Russia was in 2014 one of the main buyers of Turkish jewellery and gold, but bilateral trade was halted a year ago when Turkey shot down a Russian warplane in Syria.

After resuming business this year, Russia is now the 18th buyer of Turkish jewellery.

Iran is now the top buyer, but the purchase of jewellery and gold has decreased by 38 per cent to 384 million US dollars from January to September compared to the same period last year, according to figures from the Turkish Jewellery Exporters Association.

Tokyo, January 20, 2016

1. Tilt down $2 million guitar

2. Left Pan of Aaron Shum, President of Aaron Shum Jewellery holding the $2 million guitar his company made

3. Guinness World Records certificate for the most valuable guitar

4. Right pan - close up of body of guitar

5. A Japanese samurai helmet (kabuto) adorned with pearls

6. Tilt down of a golden teapot

7. Close of rings

8. Tilt down of coloured necklace

9. Wide of LED jewellery stand

10. Various of LED jewellery

Bangkok, Thailand, 26 February, 2016

11. Mid of gem and jewellery booth exterior at Bangkok Gems and Jewellery Fair

12. Mid of customers looking at gold and silver jewellery

13. Close of gold and silver jewellery

14. SOUNDBITE: (English) Anthony Peter Brooke, Vice President, Thai Gem and Jewellery Traders Association:

"The China market has now unfortunately collapsed, and that's not the wrong word to use, it genuinely has collapsed. It's probably going to take another 4 to 5 years to get back to the state that it was before. What that means is that prices have basically collapsed. The raw material producing countries are no longer able to sell the amounts that they were before because of this big price differential."

15. Close of ruby earrings

16. Close of ruby necklace

17. Close of rubies

18. Close of blue sapphire necklace

Hong Kong - 3rd March, 2016

19. Wide of Victor Chan, Executive Director of Continental Holdings Limited putting a diamond necklace on a holder

20. Close of 11.64 carat diamond and platinum necklace (Price: USD 35,000)

21. Close of diamond and platinum bracelets and ring. (Price of bracelet on top: USD 22,000; small bracelet on left: USD 8,000; ring: USD 4,000)

22. Wide of buyer in an Indian jewellery shop

23. Close of hands counting money

24. Pan to right of Indian style jewellery

25. Various of Ravi Ajmera, Director of Ravi Jewels & Handicrafts Pvt Ltd looking at an Indian wedding jewellery

Istanbul, Turkey - 10 March 2016

26. Various of a miniature of Pyramids of Giza made in gold by Turkish company Nadir Doviz, 1,568 pieces of 24 carat gold, 157 kilograms in total, valued at 6.3 million US dollars

27. Close of gold camels

28. Close of ring by Zen Diamond, made of 20 and 7 carat diamonds and gold, valued at 345,000 US dollars

29. Close of necklace by On Mucevherat made of 18 carat diamonds and gold, priced at 26,000 US dollars

30. Mid of On Mucevherat necklace and earrings, made of 18 carats diamonds and gold, price of earrings 8,000 US dollars

31. Various of Baget-Is dagger made of gold, diamonds, rubies, valued 250,000 US dollars, not for sale

32. Wide of Mercedes gold coated car, by Nadir Doviz, valued at 220,000 US dollars

Moscow, Russia - March 30, 2016

33. Wide of cathedral in the Kremlin

34. Various of Jewellery by Ilgiz Fazulzyanov on display

Mumbai, India - 5 August, 2016

35. Mid of Taj Mahal shaped ring

36. Zoom out of a replica of Howrah Bridge (in Kolkatta) which is made of gold and silver, on man's wrist

Mumbai, India - 4 August 2016

37. Mid of peacock ring made out of diamonds, which holds the 2015 Guinness World Record for the most diamonds set in one ring (3827)

38. Tilt up of New Fusion necklaces with uncut diamonds, set diamonds and gold costing approximately 27,600 US dollars

39. Pull focus of necklaces on display

40. Tilt down of model wearing jewellery

41. Model wearing jewellery

42. SOUNDBITE (English) Prernaa Makhariaa, Jewellery Designer and Blogger:

"There has been an infusion of diamonds with gold, or diamond with different kind of textures. It's not only diamonds, but even coloured stones are being mixed with gold or with silver or with brass and copper. So India is getting innovative with a lot of different manufacturing techniques and they are trying to play with textures and different kind of materials."

43. Pull focus of strings of coloured stones

London, UK - 4 September, 2016

44. Pull focus of large diamond

45. Close of ring

46. Mid of women looking at ring

47. Close pan left from woman to emerald earring

48. Close of blue topaz explosion ring by Biiju

49. SOUNDBITE: (English) Michael Rawlinson, Chief Executive, The National Association of Jewellers:

"The British market actually has responded quite well post Brexit at the moment, people have some level of certainty, even if it is leaving the European Union, so we've seen a strengthening of trade in the last couple of months."

50. Various shots of Bright Young Gem Katy Tromans demonstrating her Rapunzel tower ring

51. Close of Tromans' Alice in Wonderland ring ornament

Istanbul – 13 October 2016

52. Various of a miniature of Camlica Mosque, made in gold and silver by Turkish company Nadir Doviz, valued 10 million US dollars

53. Various of visitors

54. Close up to rings by Zen Diamond: (below) ring made by 20 and 7 carats diamonds and gold, valued at 324,000 US dollars; (upper right) ring made of 20 carats diamonds, valued at 97,000 US dollars

55. Various up of necklace by On Mucevherat made of 18 carats diamonds and gold, valued at 25,000 US dollars

LEAD IN:

Diamond encrusted guitars, giant rubies and golden pyramids were just some of the highlights of 2016's run of jewellery fairs across the globe.

But war, political uncertainty and economic turmoil took centre stage this year as most countries reported a downturn in jewellery markets.

STORY-LINE:

In January, Tokyo kicked off a year of glittering jewellery fairs in a sparkling mood.

The increasing economic uncertainty around the globe that marked the end of 2015 did not seem to be weighing heavily on the industry with organisers remaining optimistic about the market as a whole.

The centrepiece of the show was this 400 karat diamond guitar worth a cool US$2 million.

In March 2015 it was certified by the Guinness World Records as the world's most 'valuable guitar'.

It took 68 designers and craftsmen 2 months to complete this unique piece, which is made with 10,000 diamonds.

Other extravagant and novel designs included unique LED jewellery by Tohkoo.Co. Ltd.

The company developed very small LED lights and incorporated then into jewellery items such as earrings and even nails.

By February in Bangkok prospects for the industry were not looking quite so shiny.

The Thailand Gems and Jewellery Fair takes place twice a year and is Asia's second largest trade show, attracting around 1,800 exhibitors.

But traders at the fair reported that the industry was struggling.

Foreign exhibitors were allowed to sell gems and jewellery duty-free. Many local exhibitors cut their prices too. This meant buyers saved about 20 percent, which traders hoped would encourage people to buy more.

The tactics became necessary due to the continuing effects of the global economy knocking onto the gems and jewellery market.

Anthony Peter Brooke, Vice President of the Thai Gem and Jewellery Traders Association said the collapse of China's market had been particularly damaging.

"The China market has now unfortunately collapsed, and that's not the wrong word to use, it genuinely has collapsed. It's probably going to take another 4 to 5 years to get back to the state that it was before. What that means is that prices have basically collapsed. The raw material producing countries are no longer able to sell the amounts that they were before because of this big price differential."

But rubies and sapphires were still deemed safe bets - remaining in demand by the China market and maintaining their price.

Over in Hong Kong, platinum was the saviour at March's International Jewellery Show.

Traders said they were revelling in record low costs for the metal, with prices at their lowest for 7 years.

Platinum remains a popular material for jewellery, particularly in western wedding rings and minimal design pieces.

More than 2,500 exhibitors from 41 countries and regions including India, Thailand and Turkey showcased their products at the 2016 show.

As one of the biggest jewellery consuming countries, gold-loving India said its jewellery industry had been slowing down and Indian traders voiced concern that their government's plan to reintroduce excise tax could result in a drop in sales.

For Istanbul's spring show, luxury and extravagance took centre stage with designers showcasing high-end pieces to customers.

This was the most expensive creation costing 6.3 million US dollars.

The miniature model of the Pyramids of Giza is made of 1,568 pieces of 24 carat gold, and weighs 157 kg.

In the jewellery pavilions, this queen of the Istanbul exhibition gold ring made of 20 and 7 carat diamonds was priced at 345,000 US dollars.

This dagger made of gold and giant rubies was valued at 250,000 US dollars.

And anybody who took a shine to this gold coated Mercedes car would have needed a cool 220,000 US dollars to drive it away.

But behind the luxury and extravagance, Turkish jewellery exporters reported that regional tensions between Turkey and Russia were having an impact on the market.

Relations between Russia and Turkey have soured over the conflict in neighbouring Syria, and have become particularly strained since Turkey shot down a Russian warplane in Syria on November 24.

The Kremlin, meanwhile, was displaying an array of jewellery of its own.

Known for its dazzling golden domes, at the end of March it presented a sparkling collection of jewellery in its museum.

The diamond flowers and gold birds form part of a collection of work on display by award-winning Russian jewellery designer Ilgiz Fazulzyanov.

Fazulzyanov is the first living designer to have been given a solo exhibition in the Kremlin since Pierre-Karl Faberge in 1917.

In Mumbai in August, the annual India International Jewellery Show saw jewellery makers reporting a slowdown in the industry due to soaring gold prices.

But they said designers were compensating by getting more innovative with their designs.

The gems and jewellery sector contributes about six percent to India's gross domestic product (GDP), according to the India Brand and Equity Foundation.

That's due to high local demand and India's role as major centre for cutting and polishing diamonds.

Jewels play an important role in weddings, festivals, or any special occasion in India, making them a much sought after commodity.

Not only jewellery, but also art works, ornaments and even clothing are crafted from gold, silver and platinum and studded with diamonds and precious gems.

One of the highlights of the show was the "Peacock Ring", which holds the Guinness World Record for the most diamonds set in a single ring: 3,827 diamonds in all.

Weighing slightly more than 50 grams, the ring was created by Savio Jewellery and has an estimated value of 2,744,525, US dollars.

The majority of the show had jewellery designed for women, priced from a few hundred dollars to several thousand.

Jewellery designer and blogger, Prernaa Makhariaa says Indian designers were experimenting with innovation, blending traditional Indian styles with Western designs to attract buyers.

"There has been an infusion of diamonds with gold, or diamond with different kind of textures. It's not only diamonds, but even coloured stones are being mixed with gold or with silver or with brass and copper. So India is getting innovative with a lot of different manufacturing techniques and they are trying to play with textures and different kind of materials."

In London, UK traders were confident their products had not lost their sparkle despite the Brexit vote.

Experts at the International Jewellery London show said a weak pound, innovative design and a diverse marketplace for suppliers were just some of the reasons the UK jewellery market was thriving.

Michael Rawlinson is chief executive of The National Association of Jewellers, the main industry body in the UK.

He said: "The British market actually has responded quite well post Brexit at the moment, people have some level of certainty, even if it is leaving the European Union, so we've seen a strengthening of trade in the last couple of months."

With innovative designers continuing to emerge from the UK's most important jewellery schools in London and Birmingham, Rawlinson said 'brand Britain' was as strong as ever.

Examples of innovation came in the form of London-based designer Joanna Boyen of Biiju and her explosion designs and Katy Tromans' fairytale inspired silver rings.

Finishing off the season in October it was back to Istanbul.

Dazzling Turkey's 2nd jewellery fair of the year was this miniature of Istanbul's Camlica Mosque made of gold.

The 300 kilogram piece honouring the largest mosque in Asia Minor (Anatolia) was valued at 10 million US dollars.

But Turkish traders were not celebrating.

Turkey is one of the top three global producers together with Italy and India, but the usually buoyant jewellery sector was waning.

The situation in Syria, terror attacks, a failed coup and a long-running internal conflict with the Kurdish minority all impacted.

Exhibitors attending the show reported an export market drop of 18% overall in the last year according to the Turkish Jewellery Exporters Association. Total exports were 1.4 billion US dollars

Russia, Iran, UAE and Iraq, traditionally the biggest customers of Turkish jewellery, bought fewer Turkish products.

Russia was in 2014 one of the main buyers of Turkish jewellery and gold, but bilateral trade was halted a year ago when Turkey shot down a Russian warplane in Syria.

After resuming business this year, Russia is now the 18th buyer of Turkish jewellery.

Iran is now the top buyer, but the purchase of jewellery and gold has decreased by 38 per cent to 384 million US dollars from January to September compared to the same period last year, according to figures from the Turkish Jewellery Exporters Association.

Tokyo, January 20, 2016

1. Tilt down $2 million guitar

2. Left Pan of Aaron Shum, President of Aaron Shum Jewellery holding the $2 million guitar his company made

3. Guinness World Records certificate for the most valuable guitar

4. Right pan - close up of body of guitar

5. A Japanese samurai helmet (kabuto) adorned with pearls

6. Tilt down of a golden teapot

7. Close of rings

8. Tilt down of coloured necklace

9. Wide of LED jewellery stand

10. Various of LED jewellery

Bangkok, Thailand, 26 February, 2016

11. Mid of gem and jewellery booth exterior at Bangkok Gems and Jewellery Fair

12. Mid of customers looking at gold and silver jewellery

13. Close of gold and silver jewellery

14. SOUNDBITE: (English) Anthony Peter Brooke, Vice President, Thai Gem and Jewellery Traders Association:

"The China market has now unfortunately collapsed, and that's not the wrong word to use, it genuinely has collapsed. It's probably going to take another 4 to 5 years to get back to the state that it was before. What that means is that prices have basically collapsed. The raw material producing countries are no longer able to sell the amounts that they were before because of this big price differential."

15. Close of ruby earrings

16. Close of ruby necklace

17. Close of rubies

18. Close of blue sapphire necklace

Hong Kong - 3rd March, 2016

19. Wide of Victor Chan, Executive Director of Continental Holdings Limited putting a diamond necklace on a holder

20. Close of 11.64 carat diamond and platinum necklace (Price: USD 35,000)

21. Close of diamond and platinum bracelets and ring. (Price of bracelet on top: USD 22,000; small bracelet on left: USD 8,000; ring: USD 4,000)

22. Wide of buyer in an Indian jewellery shop

23. Close of hands counting money

24. Pan to right of Indian style jewellery

25. Various of Ravi Ajmera, Director of Ravi Jewels & Handicrafts Pvt Ltd looking at an Indian wedding jewellery

Istanbul, Turkey - 10 March 2016

26. Various of a miniature of Pyramids of Giza made in gold by Turkish company Nadir Doviz, 1,568 pieces of 24 carat gold, 157 kilograms in total, valued at 6.3 million US dollars

27. Close of gold camels

28. Close of ring by Zen Diamond, made of 20 and 7 carat diamonds and gold, valued at 345,000 US dollars

29. Close of necklace by On Mucevherat made of 18 carat diamonds and gold, priced at 26,000 US dollars

30. Mid of On Mucevherat necklace and earrings, made of 18 carats diamonds and gold, price of earrings 8,000 US dollars

31. Various of Baget-Is dagger made of gold, diamonds, rubies, valued 250,000 US dollars, not for sale

32. Wide of Mercedes gold coated car, by Nadir Doviz, valued at 220,000 US dollars

Moscow, Russia - March 30, 2016

33. Wide of cathedral in the Kremlin

34. Various of Jewellery by Ilgiz Fazulzyanov on display

Mumbai, India - 5 August, 2016

35. Mid of Taj Mahal shaped ring

36. Zoom out of a replica of Howrah Bridge (in Kolkatta) which is made of gold and silver, on man's wrist

Mumbai, India - 4 August 2016

37. Mid of peacock ring made out of diamonds, which holds the 2015 Guinness World Record for the most diamonds set in one ring (3827)

38. Tilt up of New Fusion necklaces with uncut diamonds, set diamonds and gold costing approximately 27,600 US dollars

39. Pull focus of necklaces on display

40. Tilt down of model wearing jewellery

41. Model wearing jewellery

42. SOUNDBITE (English) Prernaa Makhariaa, Jewellery Designer and Blogger:

"There has been an infusion of diamonds with gold, or diamond with different kind of textures. It's not only diamonds, but even coloured stones are being mixed with gold or with silver or with brass and copper. So India is getting innovative with a lot of different manufacturing techniques and they are trying to play with textures and different kind of materials."

43. Pull focus of strings of coloured stones

London, UK - 4 September, 2016

44. Pull focus of large diamond

45. Close of ring

46. Mid of women looking at ring

47. Close pan left from woman to emerald earring

48. Close of blue topaz explosion ring by Biiju

49. SOUNDBITE: (English) Michael Rawlinson, Chief Executive, The National Association of Jewellers:

"The British market actually has responded quite well post Brexit at the moment, people have some level of certainty, even if it is leaving the European Union, so we've seen a strengthening of trade in the last couple of months."

50. Various shots of Bright Young Gem Katy Tromans demonstrating her Rapunzel tower ring

51. Close of Tromans' Alice in Wonderland ring ornament

Istanbul – 13 October 2016

52. Various of a miniature of Camlica Mosque, made in gold and silver by Turkish company Nadir Doviz, valued 10 million US dollars

53. Various of visitors

54. Close up to rings by Zen Diamond: (below) ring made by 20 and 7 carats diamonds and gold, valued at 324,000 US dollars; (upper right) ring made of 20 carats diamonds, valued at 97,000 US dollars

55. Various up of necklace by On Mucevherat made of 18 carats diamonds and gold, valued at 25,000 US dollars