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2 February 2009
Wealthy clients investing in significant jewels
New York--The sinking economy has meant a lot of bad news for independents: Retail is down overall and jewelry sales were off for many over the holidays.
One ray of light in an economy dominated by a plunging stock market and failing real estate sector stands to be a boon for jewelers: High-end customers are turning to significant gemstones as investments, independents recently told National Jeweler. Industry leaders report similar patterns throughout the marketplace.
"Historically, diamonds have been a proven asset on multiple levels, and independent jewelers are seeing this trend today," says Sally Morrison, director of the Diamond Information Center. "In extremely soft economic times, people look to very hard assets, and diamonds prove to be less volatile than pretty much anything else I can think of."
Levinson Jewelers in South Florida has seen a 100 percent increase in sales of jewelry for investment purposes, says owner Mark Levinson. He says clients like to add jewels to their investment portfolio--especially because the asset is easily transportable to the best market.
"If the euro is stronger than the dollar, you can have your diamond in pocket and take advantage of that," Levinson says. "You cant put gold or platinum or real estate in your pocket. But you can put millions of dollars of diamonds in your pocket. In that way, it is discreet--its not like a piece of real estate you have to register. Plus, its an investment category that is fun and exciting. If you own a stock, you get a certificate. With a beautiful diamond, you can wear and enjoy and have fun with it."
B.W. David Leavitt, owner of Antique and Estate Jewelry in Rancho Santa Fe, Calif., says business has been booming among his high-end customers who are scooping up significant investment jewels.
"All of the biggest diamonds Ive ever sold have been to men who buy as investments to hoard," Leavitt says. "If its over 20 carats, its for an investment. They dont let their wives wear it--even if it is in a ring. Today, there is more interest in that than in the past. People understand that diamonds are a good investment, and theyre hedging against inflation."
Leavitt says his customers are also interested in rubies and sapphires from Myanmar, a country that is the subject of a gemstone embargo. High-quality Burmese stone supplies are increasingly rare and, therefore, increasingly valuable. Leavitt also does swift trade in certified stones.
"Anytime I get a necklace with all certified diamonds, I could sell 11 of them," Leavitt says. "A couple of times Ive gotten investment portfolios--a whole box of 60 GIA [Gemological Institute of America] certified diamonds for $2.5 million to $3 million. I sold every single one of them--either loose, or set in one piece or a suite."
Three years ago, Leavitt sold a necklace of 149 total carat weight, D-color, Asscher-cut stones for $525,000, and in late November, sold it for his client at $1.42 million.
"What other investment could I have sold in the worst week of the year?" he asks.
Morrison, Leavitt and Levinson all attribute this trend to an increasingly sophisticated clientele who are better educated about both finance and jewelry than ever before.
"In the 1987 stock crash, everyone stopped buying jewelry," Leavitt says. "People were just blindsided. But now people are more world-savvy and are looking for other ways to invest."
Historically, significant diamonds have proven to be much more solid investments when compared with their smaller counterparts.
The Rapaport Group reported that as of Sept. 15, half-carat diamond prices were up 9 percent over the previous year, while 5-carat diamond prices were up a whopping 40 percent during the same period. Prices are poised to grow by double to $40 billion by 2016, while mine production is projected to grow by just 50 percent to 20 million carats, according to Rapaport Group, which forecasts diamond demand.
Over the long term, the market for small diamonds has been rocky.
Rapaport last year told MarketWatch that the value of a half-carat diamond in 1980 would have fallen 20 percent by 2006, and a 1-carat diamond would have dropped by 40 percent during that period. By comparison, a 5-carat diamonds value would have tripled in the past 25 years.
While all of the experts interviewed confirmed they are also seeing this trend, the very exceptionally high-end corner of the market does seem to be showing weakness.
Market leaders took notice of Sothebys Nov. 20 Magnificent Jewels Sale in Geneva, where just 60 percent of the 371 lots actually sold, and many of those items went for below expected prices. These include an 8.02-carat fancy-pink diamond ring that fetched $1.32 million--just below its pre-auction estimate--and a natural pearl, emerald and diamond necklace, which went for the same price, at the low end of the pre-auction estimate.
Meanwhile, the 71.73-carat Lesotho diamond, which was expected to command from $3 million to $5 million, did not sell, nor did a 10.48-carat fancy deep-blue diamond, which the auction house expected to sell for between $6 million and $9 million.
Similarly, Christies Dec. 2 Hong Kong jewels sale sold 63 percent of its 289 lots on offer. Sothebys Magnificent Jewels auction in May, by contrast, reached near record levels.
At press time, Laurence Graff, of Graff Diamonds, paid a record $24 million at Christies London for the Wittelsbach Diamond, a 35.56-carat blue diamond that made history as the priciest diamond ever sold at auction.
Leavitt says his very wealthy customers are also buying jewelry simply for the sake of buying jewelry.
"I was worried after the market crashed that we would die this season," he says. "But Ive done my best year ever. My clients have lost craploads of money, but they still want a Christmas present."
By Emma Johnson, National Jeweler
1 February 2009
Global Diamond Demand
RAPAPORT... Antwerp
In rough:
• Nice goods smaller than 2 carats are still moving. The reason is that, after the violent reduction in prices they have been through, it could turn out to be profitable to polish them and sell the polished in about two months. That presumes, of course, that prices do not continue to drop.
In polished:
• Melees, 4-per-carat and 5-per-carat are doing well because they are
20 to 25 percent cheaper than in September 2008.
• Premiums on triple EX goods are vanishing.
• The 5 to 15 percent premiums on oversizes are gone as well.
China
• The wholesale market has improved due to the Chinese New Year sales season.
• Most in demand are rounds in 0.15- to 0.69-carat G+, VS and in 0.15- to 0.69-carat I-J, VVS.
• Ox-themed talisman jewelry, gold bars and figurines of various sizes are popular.
Hong Kong
• K-M colors in most sizes are in demand as buyers look for low price points.
• Sizes larger than 5 carats in H-J colors are also finding some movement.
• Demand is good for SI clarity in all colors.
• Demand is relatively good for G-I colors in VVS clarities in a wide range of sizes.
• Small setting sizes are weaker in both rounds and fancies.
India
• Domestic market demand is good for VVS-VS in G-J colors in 0.30- to 2-carat round shapes and in D-H colors in 0.30- to 1-carat oval, marquise, pear, heart and princess shapes.
• Demand is strong for pointers from 0.30 to 0.90 carats and 1 to 1.49 carats in VVS-SI goods.
• U.S. market demand is for ideal and excellent cuts from G to J in VVS-SI round shapes.
Israel
• Trade is running at about 25 percent of the volume at this same time
in 2008.
• Medium-sized stones of 1 to 3 carats are moving at large discounts.
• Due to liquidity problems, companies are willing to sell goods at discounts as high as 50 percent below list.
• Large stones above 5 carats are still not selling.
• People are afraid of large quantities of returns after the poor U.S. Christmas.
• A lot of cancellations came in for the Macau show. Those who went reportedly were very disappointed.
Japan
• Following the New Year, Japan’s largest holiday, the market is not yet fully reopened so market activities were minimal.
Russia
• Russian jewelers consumed 3.2 percent less gold and 31 percent more silver in 2008 compared with 2007, according to the Russian Assay Chamber.
• The chamber stamped 43.57 million golden items in 2008, which is 5 percent fewer than in 2007. The number of silver items stamped increased 25 percent.
• The Assay Chamber stamped 30,040 platinum items, which is 28 percent more than in 2007.
U.S. Retail
• The best-selling shape for engagement rings is round.
• 1.5 carats is the most popular size.
• SI1 is the clarity most people buy, though VS2 is a tempting alternative.
• The top color is G, though more budget-conscious customers trend toward H, and more-well-heeled clients prefer F.
• Platinum is strong again, though it’s neck-and-neck with 18-karat white gold at all but the most high-end stores. Palladium is increasingly popular as well, while yellow gold has all but vanished.
• The average price for an engagement ring, including stone and setting, is $7,500, though sales in the $3,000 range are becoming more common.
U.S. Wholesale
• Sales of fine-quality, large diamonds are very slow.
• SI2 and lower clarities are selling in weights up to 3 carats.
• H through J colors are meeting some demand.
• Certified goods and collections are moving much slower than in 2008.
• Colored diamonds in all sizes are meeting moderate demand.
• Rounds remain the most popular shape, with princesses increasing slightly in popularity.
Diamonds.net - New York,NY,USA
1 February 2009
Global Diamond Demand
RAPAPORT... Antwerp
In rough:
• Nice goods smaller than 2 carats are still moving. The reason is that, after the violent reduction in prices they have been through, it could turn out to be profitable to polish them and sell the polished in about two months. That presumes, of course, that prices do not continue to drop.
In polished:
• Melees, 4-per-carat and 5-per-carat are doing well because they are
20 to 25 percent cheaper than in September 2008.
• Premiums on triple EX goods are vanishing.
• The 5 to 15 percent premiums on oversizes are gone as well.
China
• The wholesale market has improved due to the Chinese New Year sales season.
• Most in demand are rounds in 0.15- to 0.69-carat G+, VS and in 0.15- to 0.69-carat I-J, VVS.
• Ox-themed talisman jewelry, gold bars and figurines of various sizes are popular.
Hong Kong
• K-M colors in most sizes are in demand as buyers look for low price points.
• Sizes larger than 5 carats in H-J colors are also finding some movement.
• Demand is good for SI clarity in all colors.
• Demand is relatively good for G-I colors in VVS clarities in a wide range of sizes.
• Small setting sizes are weaker in both rounds and fancies.
India
• Domestic market demand is good for VVS-VS in G-J colors in 0.30- to 2-carat round shapes and in D-H colors in 0.30- to 1-carat oval, marquise, pear, heart and princess shapes.
• Demand is strong for pointers from 0.30 to 0.90 carats and 1 to 1.49 carats in VVS-SI goods.
• U.S. market demand is for ideal and excellent cuts from G to J in VVS-SI round shapes.
Israel
• Trade is running at about 25 percent of the volume at this same time
in 2008.
• Medium-sized stones of 1 to 3 carats are moving at large discounts.
• Due to liquidity problems, companies are willing to sell goods at discounts as high as 50 percent below list.
• Large stones above 5 carats are still not selling.
• People are afraid of large quantities of returns after the poor U.S. Christmas.
• A lot of cancellations came in for the Macau show. Those who went reportedly were very disappointed.
Japan
• Following the New Year, Japan’s largest holiday, the market is not yet fully reopened so market activities were minimal.
Russia
• Russian jewelers consumed 3.2 percent less gold and 31 percent more silver in 2008 compared with 2007, according to the Russian Assay Chamber.
• The chamber stamped 43.57 million golden items in 2008, which is 5 percent fewer than in 2007. The number of silver items stamped increased 25 percent.
• The Assay Chamber stamped 30,040 platinum items, which is 28 percent more than in 2007.
U.S. Retail
• The best-selling shape for engagement rings is round.
• 1.5 carats is the most popular size.
• SI1 is the clarity most people buy, though VS2 is a tempting alternative.
• The top color is G, though more budget-conscious customers trend toward H, and more-well-heeled clients prefer F.
• Platinum is strong again, though it’s neck-and-neck with 18-karat white gold at all but the most high-end stores. Palladium is increasingly popular as well, while yellow gold has all but vanished.
• The average price for an engagement ring, including stone and setting, is $7,500, though sales in the $3,000 range are becoming more common.
U.S. Wholesale
• Sales of fine-quality, large diamonds are very slow.
• SI2 and lower clarities are selling in weights up to 3 carats.
• H through J colors are meeting some demand.
• Certified goods and collections are moving much slower than in 2008.
• Colored diamonds in all sizes are meeting moderate demand.
• Rounds remain the most popular shape, with princesses increasing slightly in popularity.
Diamonds.net - New York,NY,USA
1 February 2009
Pink Diamond Treatment
A three-step treatment process produces pink diamonds that look almost natural.
Due to the rarity and the high cost of natural-color pink diamonds, there is great interest in methods to produce treated pink diamonds. The latest treatment method involves a complex three-step process: high-pressure/ high-temperature(HPHT) annealing, followed by an irradiation with electrons and then a low-temperature annealing. The process can transform a natural light yellow or brown, type Ia — nitrogen-rich — diamond into a fancy color pink, as well as red or purple, diamond. Colored stones produced using this process became commercially available beginning in 2004.
Many gemological and spectroscopic properties that distinguish natural from color-treated diamonds have been previously identified. However, the recent study of a pink color-treated diamond shows, for the first time, that it is possible to treat a diamond in order to create a color distribution with the same aspect as a natural-color pink diamond.
Natural-color type Ia pink diamonds
The color zoning observed in natural-color pink, but also red and purple, diamonds is the result of external stress applied to the diamonds during the time they spend in the earth.
This stress causes some planes of carbon atoms to slip with respect to each other. As a result of this plastic deformation, these naturally colored diamonds show a color distribution that appears striated. The color planes are oriented in the direction of the slip, so that pink, but also purple or red, planes are seen in an otherwise near-colorless diamond. These striations are commonly called “colored graining” in gemology and are described as characteristic of such natural-color diamonds.
Treated-color type Ia pink diamonds
The presence of colored graining is strongly believed to be characteristic of natural-color pink, red and purple diamonds. However, this criterion should be interpreted with care. The recent examination of a 0.36-carat, fancy intense purplish pink diamond illustrates the complexity. Face-up, the treated diamond appears homogeneously colored.
However, a microscopic examination reveals an uneven color distribution that is identical to the color distribution previously described for a pink diamond of natural color. The color zoning shows a very delicate colored graining, with purplish pink bands of different widths, ranging from very thin to large, running through the whole stone, in an otherwise near-colorless matrix. The color zoning of this treated diamond is very different from that reported previously for a treated diamond. The color zoning for the earlier treated pink to red to purple diamonds consists of a combination of straight, angular and irregular-shaped colored areas.
Dr. Andru Katrusha, of the Institute for Superhard Materials in the Ukraine, and Professor Dr. Heiner Vollstädt, of SedKrist GmbH in Germany, were the two scientists who treated the stone. They carefully selected a light brown natural type Ia diamond that they submitted to HPHT treatment at approximately 2200ºC. After HPHT treatment, the stone turned greenish yellow. It was then further irradiated with electrons, which turned the diamond dark green. Finally, in the third step, the diamond was treated with heat at 1000ºC for two hours to produce its purplish pink color.
This fancy intense purplish pink diamond is the first treated diamond reported to possess a color distribution identical to that of a natural-color pink, type Ia diamond. Although this stone is small, it opens new possibilities for making treated diamonds look more natural.
Identification
When exposed to both long-wave and short-wave ultraviolet (UV) radiations, the 0.36-carat treated diamond shows a combination of orange and chalky green-yellow fluorescence of weak intensity. Careful examination of the luminescence pattern reveals that the two fluorescence colors are limited to different growth structures. These luminescence reactions are consistent with those previously described for pink, type Ia, color-treated diamonds. On the other hand, when a natural-color pink, type Ia diamond has a luminescence reaction under UV illumination, it is usually blue under long wave and blue or yellow under short wave.
In order to comprehend the color origin of a diamond, the use of a sensitive spectrophotometer is required. The color center associated with pink, red and purple plastically deformed diamonds produces a large absorption band centered at about 550 nanometers (nm). Often, in type Ia diamonds, the N3 color center also can be detected. The presence of both centers is then responsible for the overall color of natural diamonds. With treated diamonds, the pink, purple and red coloration is mainly due to the single nitrogen/single vacancy (NV¯) centers produced during the multistep treatment process. The treated diamond recently studied has an absorption peak at 637 nm and an absorption band centered on 570 nm. Other color centers of weaker intensity, including H3 and H4, also can be observed.
In some cases, a desktop gemological spectroscope may help to identify a treated pink, as well as red or purple, diamond, if the absorption line at 637 nm has sufficient intensity.
Dr. Erel is a gemologist with the Gübelin Gem Lab in Lucerne, Switzerland.
By dr Eric erel, Diamonds.net - New York,NY,USA
27 January 2009
DODAQ Launches Online Cash Market for Diamonds
Antwerp –Tuesday 27th January 2009: The world’s first online electronic diamond exchange was launched today. Based in Antwerp, Belgium, the diamond capital of the world, it will enable polished diamonds to be globally traded like other commodities. See the trading platform at www.exchange.dodaq.com
DODAQ (Dealers Organisation for Diamond Automated Quotes) offers two-way auctions for individual categories of polished diamonds, thus creating real-time spot prices and the first cash market for diamonds. The two-way auction mechanism provides price transparency to eliminate the mystery of diamond pricing and allows the market to decide fair value, just as markets for stocks, currencies and other commodities are determined.
DODAQ is open to all, both within and outside of the industry, enabling diamonds to be realized for the first time as an asset class, and an alternative investment opportunity to gold. It provides both a liquid entry and resale point for investors, representing a revolutionary step in the evolution of the global diamond industry and bringing it up to date with 21st century trading practices. It also provides the necessary vaulting to solve the burden of physical ownership.
All client funds are held by ABN AMRO Bank, and DODAQ uniquely offers instantaneous settlement, steering the industry away from the current reliance on credit. Chief executive officer (CEO) Simon Okuniew said: “DODAQ is a cash market. For us to guarantee settlement we need to be satisfied that the diamond is real and this is achieved through certification. The system calls for the original certificate, which will then be checked to verify that the certificate and diamond match. They are then sealed so that at no stage can they be handled. The diamonds are then sent to our specialist vault in the Freeport of Geneva which is run by our professional custodian Malca-Amit, one of the most respected security and storage operators in the world with a 21-year proven track record.”
Specific changes in the diamond industry as well as progressions in technology and trends prompted the establishment of the DODAQ exchange. Simon Okuniew said: “In recent years certifying diamonds has become an industry standard. By standardizing diamonds we are realistically able to call them a commodity and therefore trade them as such. All global markets are traded electronically, so the logical next step was to create a fully automated electronic exchange for diamonds.”
DODAQ is currently offering online webinars for those wishing to understand the trading platform, which can be arranged on the homepage at www.dodaq.com, where a simulator version of the exchange is available. They also welcome visitors to their popular demonstration room at their offices in Antwerp.
Rapaport News
27 January 2009
Diamonds highlight the new First Lady
[AFNS] WASHINGTON D.C., USA, 27 January - Michelle Obama, the wife of President Barack Obama, wore diamond jewelry to the inaugural ceremonies earlier this month, according to the Diamond Information Center.
This included round diamond stud earrings surrounded by pavé stones that she wore on the whistle-stop train ride to the inauguration, and simple diamond stud earrings at the ceremony itself.
At the inaugural balls on January 20, Obama sported diamond linear earrings by Loree Rodkin, diamond bangle bracelets and a diamond ring.
A service of the Antwerp Facets News Service (AFNS).
27 January 2009
Diamonds highlight the new First Lady
[AFNS] WASHINGTON D.C., USA, 27 January - Michelle Obama, the wife of President Barack Obama, wore diamond jewelry to the inaugural ceremonies earlier this month, according to the Diamond Information Center.
This included round diamond stud earrings surrounded by pavé stones that she wore on the whistle-stop train ride to the inauguration, and simple diamond stud earrings at the ceremony itself.
At the inaugural balls on January 20, Obama sported diamond linear earrings by Loree Rodkin, diamond bangle bracelets and a diamond ring.
A service of the Antwerp Facets News Service (AFNS).
27 January 2009
Tiffany-owned Canadian diamond polishing plant closes
[AFNS] YELLOWKNIFE, CANADA, 27 January - A Canadian diamond polishing plant owned by Laurelton Diamonds, a subsidiary of U.S. fine jeweler Tiffany & Co., has shut down due to lack of rough diamond supplies.
The plant, which opened in 2003, employed 38 people in Yellowknife, capital of the Northwest Territories. The vast far northern territory is home to the Ekati Mine, which is 80 percent owned by BHP Billiton, and the Diavik Mine, a 60-40 joint venture between Rio Tinto and Harry Winston Diamond Corp. Both mines supplied the Laurelton plant.
Twenty-five of the workers at the plant are out on the street, while the other 13 will get jobs in other Laurelton facilities outside Yellowknife, Linda Buckley, a spokeswoman for Tiffany and Co., was quoted as saying.
Sirius Diamonds and other polishing plants located in Yellowknife, where the provincial government hoped to get a diamond polishing industry started, have also closed in recent years.
A service of the Antwerp Facets News Service (AFNS).
27 January 2009
NRF predicts U.S. retail sales to drop 0.5% in 2009
[AFNS] NEW YORK, USA, 27 January - The National Retail Federation (NRF) is predicting that U.S. retailers will post their first annual fall in sales in 2009 since the body started tracking the data in 2005. The NRF forecasts a decline of 0.5 percent this year.
The prediction follows data showing that Christmas retail sales in November and December dropped by 2.8 percent on the same period of 2007.
The NRF said retailers might see sales start to rise in the final quarter of 2009, forecasting a sales rebound of 3.6 percent.
Retailers in the United States, however, face a long and difficult path to the final quarter of this year, the NRF said, predicting sales will drop 2.5 percent in the first half of the year, and by 1.1 percent in the third quarter.
"Most of the consumer behavior we saw in 2008 will continue well into this year," said Rosalind Wells, chief economist for the NRF. "Shoppers will be seeking value and trading down to discount and off-price retailers in order to stretch their purchasing power."
A service of the Antwerp Facets News Service (AFNS).
27 January 2009
Shanghai Diamond Exchange reports record business levels in 2008
[AFNS] SHANGHAI, CHINA, 27 January - The Shanghai Diamond Exchange reported a record $1.31 billion in transactions in 2008, a 30.5 percent increase over 2007.
Diamond imports into China, driven by demand for wedding jewelry, totaled $535 million in 2008, up 21.7 percent, although growth slowed in the final quarter as the worldwide slump set in.
Diamond imports and exports combined were $1.17 billion in 2008, up 29.1 percent, and bonded trades between Shanghai Diamond Exchange members totaled $100 million, a 78.6 percent increase.
A service of the Antwerp Facets News Service (AFNS).
27 January 2009
BHP Rio Tinto cut thousands of jobs
AFNS] GABORONE, BOTSWANA, 27 January - BHP Billiton will lay off 6,000 mineworkers at several different mines by the middle of this year, mostly in Australia. The firm has more than 100,000 employees worldwide.
The news follows rival Rio Tintos announcement that it is laying off 14,000 employees and cutting $5 billion in spending.
In the final quarter of 2008, BHP Billiton produced 594,000 carats of diamonds, down 30 percent from the fourth quarter of 2007 and down 23 percent from the third quarter of 2008.
Production in the second half of 2008 totaled 1.367 million carats, down 27 percent from the second half of 2007.
"Production decreased due to lower grades following changed ore sources," the company said in a statement.
It added that its 80 percent owned Ekati Mine in Canadas Northwest Territories is changing over from open-pit to underground mining, which will result in variations in the mix of ore processed from time to time.
A service of the Antwerp Facets News Service (AFNS).
27 January 2009
DTCs January sight one-sixth the level of year-earlier figure
A service of the Antwerp Facets News Service (AFNS).
20 October 2008
Two giant South African diamonds sold
TWO GIANT diamonds were sold for more than 6million (R60m) to a Middle Eastern buyer at an auction last week, bucking a wave of gloom that has taken the shine off luxury sales.
The Ponahalo diamonds, mined in South Africa and named after a tribal word meaning “vision”, sold at Christie’s in New York at the end of an auction overshadowed by massive losses on world stock markets.
The Ponahalo weighed 316 carats when discovered in its rough form in 2005. Two separate diamonds were cut, weighing 70.87 and 102.11 carats, about the size and shape of chocolates.
The first sold for R21.5m, including commission, and the second for a total of R41.1m after a bidding war.
Although the winning bid came in anonymously to a telephone operator , the buyer was apparently so proud that he wanted to be revealed.
“The buyer of the diamond was Mr Amer Radwan of Dubai and he has asked us to relate to you that he purchased this diamond,” auctioneer Rahul Kadakia announced, prompting surprised laughter and a few gasps.
The diamond industry now fears a painful end to the year. “The now inevitable economic slowdown will impact the entire diamond pipeline,” the industry website idexonline.com said. — Sapa-AFP
Dispatch Online - South Africa
21 October 2008
Burdened diamond dealers welcome supply cut
Reuters Tuesday October 21 2008 *WFDB President Avi Paz concerned about industry debt
*Says total industry debt at around $12-$15 bln
*Welcomes De Beers move to cut sales to sightholders
By Eric Onstad
LONDON, Oct 21 (Reuters) - The head of a diamond trading group said a downturn in the United States, the worlds top consumer, may compound his members debt burden, and as such he welcomed a move by De Beers to trim supply in the coming months. Avi Paz, president of the World Federation of Diamond Bourses, told Reuters in an interview on Tuesday he was concerned about the debt burden in the diamond industry.
"The banks are nervous, the banks are looking at every diamond dealer, and looking at the debt and how they are covered," he said by telephone from Israel.
"I call on my colleagues to be careful, to have liquidity."
A rough estimate of total debt in the diamond industry was $12 billion to $15 billion, but so far there had been only isolated problems, he added.
The Belgium-based federation is an umbrella organisation representing 26 member bourses that trade in rough and polished diamonds and precious stones.
Paz issued a statement last week asking diamond producers to reduce supply during the current economic turmoil to stabilise the sector.
He welcomed a move by diamond giant De Beers, which controls around 40 percent of the market, to reduce the amount of unpolished gems at its next two sales due to reduced demand.
"This is a very important statement, it will assure the diamond industry worldwide."
"BE CAREFUL"
He said De Beers "sightholders" -- tightly screened clients -- had an obligation to buy the unpolished diamonds on offer at periodic sales.
In the current economic climate, however, they might find it difficult to sell all the processed material to jewellery makers and end up with increased debt burdens.
Diamond prices, which have surged in recent years on tight supply and buoyant demand, have recently been hit by the global credit crisis.
Until now mass-market jewellery using small diamonds have been hardest hit by the downturn in the United States, the biggest consumer of diamond jewellery, accounting for half of the total market.
But recently, even prices of large, high-quality stones that appeal to the very wealthy have declined.
A lot of diamonds were still being sold in the United States and the product should appeal to people wanting a safe haven investment, Paz said.
But he urged those in the industry to be cautious about developments in the future. "Im worried, I think people should be careful about next year... they should take steps to be liquid and not over-buy in polished and in rough (diamonds)."
De Beers, 45 percent owned by mining group Anglo American Plc, said in August it had boosted rough diamond prices by around 16 percent so far in 2008 due to strong demand.
But it said in July it was cautious about developments in the second half due to a downturn in the United States. (Reporting by Eric Onstad; editing by Simon Jessop) Printable version larger | smaller Business
The Guardian newspaper, UK
21 October 2008
Victorias Secret offers $5 million diamond bra
NEW YORK, USA 21 October - Victorias Secret has come out with the latest edition of its "fantasy bra," featuring 3,575 black diamonds, 117 certified white rough brilliant cut diamonds weighing 1 carat each, 34 rubies and two black diamond "drops" that hang from the lingerie and together weigh 100 carats.
The total weight of the bra is 1,500 carats, and the asking price is $5 million. But in 2006, the lingerie company offered a bra priced at $6.5 million that was set with 800 carats of diamonds by Hearts on Fire and also featured a 10-carat diamond brooch as a centerpiece.
Earlier editions were even more expensive, with the 2003 model priced at £11 million (approximately $20 million then), a 2001 bra that was worth $12.5 million and a bra worn by supermodel Tyra Banks in 2004 that was valued at $10 million.
A service of the Antwerp Facets News Service (AFNS).
21 October 2008
Diamond analyst sees demand falling worldwide
AUSTRALIA 21 October - World consumer diamond demand could decrease 2-3 percent this year, James Allan, managing director of Allan Hochreiter, said at a conference in Perth, Australia, according to the online journal Mining Weekly.
But rough diamond prices have increased an average of 13 percent (ranging from 5 percent to 25 percent in different categories) so far this year due to declining production in the major international diamond mining centers; the expected result is that world diamond production will total 138 million carats worth $14.3 billion this year, compared with 148 million carats worth $12.6 billion last year.
Canada is turning out 2 million fewer carats in 2008 than in 2007, Russia and Botswana are each producing 1 million fewer carats and Rio Tintos Argyle Mine in Western Australia is producing 6 million fewer carats.
A service of the Antwerp Facets News Service (AFNS).
19 October 2008
Slump increases demand for diamonds in Spain
Madrid - Spains economic crisis has spurred the demand for precious stones, especially large diamonds, gemologist Adolfo de Basilio said Friday.
The price of diamonds and gold is going up, probably because people are worried about the fluctuations of the stock market and prefer to invest in tangible goods, said de Basilio, who heads a new Gemological Institute in Madrid.
People interested in investing in diamonds should find out their real rather than current market value, because the losses can be enormous if you later try to sell a diamond that had been bought above its value, he advised.
Monsters and Critics.com - USA
10 October 2008
Diamonds: Losing Luster or Still Sparkling?
Diamonds: Losing Luster or Still Sparkling?
Financial world chaos and extreme market volatility have pretty much sidelined the vast majority of the juniors in the diamond mining sector, according to RBC Capital Markets’ highly regarded diamond analyst Des Kilalea. The senior players remain solidly in the game—albeit in a rather defensive posture—and can anticipate strong price performance to return once the economic storm subsides. In this exclusive Gold Report interview, the veteran analyst also steps back to give us a fascinating Cliffs Notes synopsis of Diamond Geology 101.
The Gold Report: Tell us your thoughts about diamonds vis-à-vis other commodities. For some reason, diamond stocks don’t seem to be enjoying the commodities boom so much.
Des Kilalea: No, they haven’t. Diamonds first and foremost are not driven by industrial demand; they have industrial uses, but disposable income and consumer confidence drive the diamond market because most diamonds in value terms are sold in jewelry. The fact that they’re mined is almost incidental.
Pricing and how they are sold is far more important. The funding structure for the channel that gets diamonds from the mine to the store differs markedly from that of other commodities. Even more important is who buys the diamonds; the U.S. is buying half of them.
TGR: Could you explain the relevance of the difference in the channel and the way it’s funded?
DK: That calls for a bit of history. When De Beers Canada Inc. monopolized the business, it mined and sold its own diamonds, as well as most diamonds mined in Russia and Australia and 30% of the diamonds from Ekati when it came into production. De Beers slowed down its own production when times got tough, and asked its contracted suppliers to cut production. That turned off the spigot. Then to maintain a price level, De Beers bought up some of the surplus diamonds washing around in the markets.
That worked okay except that to fund it, De Beers built a lot of bank debt. At one stage in the late ’90s, it had $5 billion in diamonds on its balance sheet at cost, and nearly $5 billion of bank debt. If you’re the only player in town, you can sustain that because there’s nobody to undermine you. But once new producers start coming in, with the likes of the Canadians saying, “We don’t think it’s a good idea to trade with a monopolist, so De Beers can’t sell our diamonds anymore,” and the Russians and Australians becoming irritated with quotas and deciding to sell more diamonds on their own, De Beers got the carpet tugged little by little from under its feet.
In response, De Beers changed its business model to sell primarily its own diamonds, stopped stockpiling, and stopped supporting the market. It moved into loose partnerships to encourage customers to market the stones more aggressively and get them to commit six to nine months in advance, so De Beers could meet their supply needs, have more certainty and avoid the horrible bank debt.
As a result, De Beers sold $4 billion worth of diamonds from its balance sheet, all of which the market absorbed. But what funded it when it got absorbed was bank debt, which went from about $4 billion to about $9 billion in the cutting centers. In other words, De Beers passed on the financial burden.
As the market grew, the bank debt grew. The people in the middle—the cutters, polishers and traders—don’t generally have much equity in their businesses, so they use a lot of bank debt. At the same time, everybody from Wal-Mart to Tiffany started flexing buying muscle. Cutting centers had surplus inventory after De Beers sold, so they accepted onerous terms—up to 180 days to pay sometimes, and if the customers didn’t sell some of the polished diamonds they bought, they had the right to return some.
The cutting centers have $15 billion or more in bank debt now. That’s fine if the market is growing. But if it slows down, the retailers push more diamonds back to the cutting centers. Because they’re receiving less money, those cutting centers can’t redeem all their debt at the bank and end up with more diamonds they can’t sell. That’s a recipe for a pretty torrid time in the cutting centers. And that’s why the channel financing is so important.
TGR: How do the other commodities differ?
DK: You sell zinc or copper etc for cash, and that’s it. It gets used to build something. But Tiffany could have a piece of jewelry in the store a year before it goes, and maybe they won’t pay the supplier until they’ve had it for six months. So the unhealthy financial storm brewing in the cutting centers actually may turn into a hurricane.
TGR: If cutters can’t pay their debt, isn’t their equity the diamonds they’re holding?
DK: Yes, I suppose the banks could wind up holding a bunch of diamonds and try to liquidate them. But the better banks will have their credit lines secured on easier to liquidate assets such as quality receivables.
TGR: Doesn’t this argue for consolidation among cutters?
DK: Some of the large cutters are financially strong; some actually have commercial paper out in the market. But 50% or 60% are likely to be smaller Indian businesses. About a million people work in the cutting industry in India, and you could see some serious issues when liquidity becomes a problem. You can’t keep your factory going; you can’t pay your people. You go bankrupt—and distressed diamonds don’t sell very well. They’re not investment stones.
The average value of a rough mined diamond is $100 a carat, but the variance is huge. At the top end of the market, the Sultan of Brunei or the Maktoums of Dubai may well be persuaded to buy stones of great value. Some diamonds sell at more than $55,000 a carat in the rough—those are like Picassos. But a lot of the jewelry in the windows in the diamond district of New York is pretty average. That’s what the Indians have been doing quite a lot of. If U.S. consumer confidence is low and disposable income is under pressure, there won’t be buyers.
TGR: That’s a pretty dismal outlook.
DK: But that’s the short term. The long-term picture is actually quite good because unlike other commodities, there is a shortage of diamonds. They aren’t easy to find, and when you find them, it takes a long time to develop a mine, and the good diamonds are extremely rare.
I’ll give you a statistic: Kimberlites—the rocks that host the diamonds—were only discovered in the back end of the 1800s. Some 6,500 kimberlites have been discovered since, and of these, fewer than 50 have become mines—less than 1%.
TGR: Is it due to infeasible economics?
DK: Yes, it is. Many of the kimberlites may have diamonds, but a lot don’t have enough of economic significance to mine. With grams per ton in the rock very, very low, you’d need very valuable diamonds to make it pay. The average kimberlite would have a one-quarter carat per ton, and the grade is low. A carat is one-fifth of a gram, that’s one-quarter of a fifth of a gram. It will cost between $10 and $50 to mine that ton, so either you need a very valuable quarter of a carat or you need a mine that has maybe one carat per ton. Plotting or analyzing and defining your ore body also takes a long time and it’s expensive.
So diamond exploration generally is not for junior companies. It’s for the senior companies with more patience and deeper pockets.
TGR: So production is pretty unpredictable?
DK: I can give you a pretty good idea today what production in carats—not in value—will be in five years. That’s because any kimberlite discovered today will not be a mine for five to seven years, and the kimberlites that have been discovered are pretty well known. One in Botswana will be a mine in three years.
TGR: What about Canada?
DK: They keep discovering more kimberlites, but they’re way up in Quebec and the Northwest Territories where it’s expensive to operate because of the weather. It’s difficult to explore because it’s marshy and you can drill only when it’s frozen. Stornoway has a very promising exploration program—and delivered another 12 kimberlites recently, but if any of those become a mine, it probably won’t happen for several years.
Eira Thomas, who runs Stornoway and is well known and highly respected in the diamond geology field, recently made the point about huge swathes of Canada that aren’t mapped. The potential to find kimberlites there is great. There’s no reason to believe some of the next major mines won’t be in Canada. Ultimately, though, it’s a question of how costly it will be to explore the kimberlites, and then mine them if they’re mineable.
They need to be quite big to justify the infrastructure and the costs. As I say, you can drill only during the ice season, and when you finally have a mine, you bring all your fuel in on ice roads. You warm your plant and fly people in and out. You keep a lot of supplies in inventory; in South Africa you’d just go down to the store to buy new winder, for example.
Canada has a great regulatory environment, but it is certainly more expensive to work than many parts of Africa. It might cost $10 to $15 a ton to mine a kimberlite in southern Africa, versus $80 to $120 in northern Canada. So you need great resources, and lots of carats with good values.
TGR: But back to your production prediction?
DK: Diamond production, about 160 million carats a year now, will be 165 million in five years. It’s not going to be 200 million or 120 million. I feel fairly comfortable that I’m not going to be embarrassed saying that, because you don’t have to be a magician. We know what production is, what people have discovered and what they’re doing. It’s a very small sector.
But let’s go back to the demand side for a bit. Even with a hiccup in its growth for the next year or two, as China industrializes, you’ve got to imagine in a decade its GDP per capita is probably going to be at least double what it is now as people come into the cash economy. Already they’re starting to buy diamonds. If China goes up from 1% or 2% of the diamond market to 8%, it would make a very big difference. There won’t be enough diamonds to supply that demand, so prices will go up.
Whether we revisit 1929, I have absolutely no idea. But if you suppose within five years we’re out of this mess, I’d say that diamond prices then will be very strong. Bets are off for the next 12 to 24 months, but the outlook is very good beyond that.
At a lunch in Cape Town in February 2006, somebody asked Tom Albanese—before he had the top job in Rio Tinto—which product in Rio’s portfolio he was most optimistic about.
“Diamonds,” he responded. “They’re rare. They’re the rarest.” At the right price, there’s lots of uranium, and at the right price, there’s lots of coal. Of the major commodities in Rio’s portfolio—iron, coal, copper, nickel, uranium, borax—only diamonds did he say were truly rare.
TGR: And you agree with that assessment.
DK: I think he’s absolutely right. I run a supply-demand model. It’s not as sophisticated as WWW International’s because they model different categories of diamonds, but my numbers show a gap—an undersupply—as do theirs. On average, they’re looking at 3% to 5% real price increases annually on the average diamond. And at the top end, you can probably write your own price on some diamonds. Gem Diamonds Ltd. (GEMD.L, GEMD.VX, ZVW.F), which is mining in Lesotho, recently recovered a 478 carat D; D is the best color—the flawless diamond. That could go and should go, for north of $45,000 a carat.
TGR: But that’s like a special piece of art; a stroke of luck. If I’m drilling, how do I know whether kimberlites hold the high-end, larger-carat diamonds?
DK: First, it’s where the kimberlites are that is most important as to whether there are diamonds. If somebody says, “I’ve got a kimberlite in Israel,” you’d probably say, “Not interested.” Same in England; if there are kimberlites in England, they won’t have diamonds. These places are not on old rock structures called cratons, and most of the world’s better diamond propositions are in cratonic areas—southern and central Africa, northern or northwest Canada, Brazil, Eastern Siberia, a bit of Australia and Karelia in Finland. In these areas, volcanic eruptions transported diamonds to the surface. In the transport, the diamonds either made it or got burned because the kimberlite didn’t move fast enough or was too hot.
TGR: How do alluvials differ from kimberlites?
DK: Alluvials come from kimberlites that eroded over millions of years. The erosion process liberated the diamonds, which then found their way into rivers and ultimately the ocean. But they originated in kimberlites somewhere, millions of years ago. The traditional picture of a kimberlite shows it’s shaped like a carrot. When the top erodes, volumetrically you lose an awful lot more because it’s wider at the top and it tapers.
When they find alluvial diamonds in Sierra Leone and the DRC, scientists have developed ways of predicting, depending on what they find with them, how far they might be from the source kimberlite. The big chase in the DRC at the moment is to find the next large kimberlite that could support a mine. Some serious geologists and sedimentologists are there trying to crack the DNA of what is happening in the DRC. It could be the next big diamond field.
TGR: Putting on our investor hats for a moment, you talked about cutters being really financially strapped in the short term. Some may consolidate, but essentially diamonds will sit in that section of the channel for 12 to 24 months. Meanwhile, mining companies still looking for diamonds now have no flow-through to create cash flow due to that clog in the channel. Shouldn’t I be worried about these miners at this point?
DK: You should. But the main explorers are the big companies. . .and they have deep pockets. They may tail their exploration programs back a bit as they do in bad times, but they’re fine. . . for the main part, it’s business as usual or maybe a little slower. They will keep their mines running at roughly the same output as last year and this year, but will take a hit on the price they get for their diamonds.
That’s how what’s happening in the cutting centers is likely to affect the seniors; they will see prices come down a bit. Some people will say I’m wrong; that prices will keep going up, but that’s just illogical. The United States accounts for nearly half, by value, of all jewelry diamonds; Europe is 15% to 18%. They’re both going into slower growth, if not recession. That’s more than two-thirds of the market, so it’s inconceivable that average diamond prices will go up.
The guys who will hurt are the juniors that could raise money and go hunting for diamonds in the boom, and there were lots of them—not in the kimberlite space, but mostly in the alluvial space, where it’s quicker to get a mine going.
The trouble is that the gravel requires large-scale earth moving operations—cheaper than underground or kimberlite mining, but you still need quite a lot of capital up front. The juniors that developed these little mines now need millions; nobody is prepared to give it to them, and they’re not even in production to be able to fund themselves.
At the moment, if a junior diamond company tries to raise money in London—where most of them have been raising their money—it will find it a very hostile market. Fund managers are struggling; they’ve got redemptions; they’ve got to sell shares; they’re not buying risk assets. . . The key is having production in categories less vulnerable to economic downturns, where prices might be stable or fall only slightly. In other words, bigger diamonds, better quality diamonds, better color diamonds, etc. So juniors that are generating cash are okay. . .
For the complete article, including some of Des Kilaleas comments on specific companies, go to
http://www.theaureport.com/cs/user/print/na/1733
London-based Des Kilalea, Global Mining Research Analyst at RBC Capital Markets—the corporate and investment banking arm of Royal Bank of Canada (NYSE, TSX:RY)—focuses on AIM mining companies and on diamond producers. Before joining RBC, he was head of sales for Nedcor Securities in Johannesburg, with special responsibility for mining sales. He also handled diamond and diversified mining company research at Fleming Martin, a Johannesburg-based stockbroker. An accomplished journalist as well as premier diamond analyst, he won Financial Journalist of the Year honors for his work at Finance Week (1989).
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Gold Seek - USA
7 October 2008
Harry Winston CEO sees growing demand following credit crisis
NEW YORK, USA 7 October - Despite the current economic turmoil spreading around the world, diamond demand is poised to grow due to demand from Russian, Middle Eastern, Indian and Chinese consumers and investors looking for a safe haven, Robert Gannicott, CEO of Harry Winston Diamond Corp., told the Bloomberg news service.
In the new consumer markets, women are especially keen on receiving diamond jewelry for their weddings because divorce laws in those countries offer them little protection, he said.
Gannicott noted that it was difficult to develop new diamond mines due to regulatory and technological hurdles.
His company and Rio Tinto, which are 40/60 partners in the Diavik Mine in the Northwest Territories, Canada, are increasing their spending on exploration of lands near the mine by 20 percent, he said.
He also said his company plans to buy or partner with another diamond mining company some time in the next three years.
A service of the Antwerp Facets News Service (AFNS).
7 October 2008
Jay-Z splashes more than $5million on ring for Beyonce
October 07, 2008 12:00am
ONE person has evaded the worldwide economic crisis - Jay-Z, whose wedding ring for Beyonce cost more than $5million.
Although the couple married in a secret ceremony in April, the ‘Bootylicious’ singer had so far refused to show off the band until she was seen on a Miami beach with younger sister Solange last weekend.
The eye-catching piece is believed to be from celebrity jewellers Schwartz, a long-term favourite of the star.
Mohammed Cimark, who runs Precious Gems and Jewels in London, confirmed the huge octagon-cut diamond was a rarity.
He said: “If it is 18 carats then it’s a lovely size, an exceptional diamond. It’s clearly a premium stone.
“You can’t recognise the colour from the photo and the clarity is hard to see, but the best clarity is internally flawless.”
The jeweller said he believed the stone had been sourced from Africa.
He added to the MailOnline website: “Most diamonds this size you would get in South Africa or Sierra Leone. That’s where you get the biggest diamonds.”
The £2.5 million price tag is not likely to have troubled the rapper.
Jay-Z – real name Shawn Carter - reportedly earned £41 million last year from his live performances and album sales, as well as his many other ventures, including a hotel and clothing range.
Melbourne Herald Sun - Australia
1 October 2008
No price increase at De Beers
AFNS] LONDON, U.K. 29 September - De Beers Diamond Trading Company did not impose a price increase at its September sight, the eighth of 2008, and the total value of goods sold in London, Botswana, Namibia and South Africa was estimated at $600 million by the Rapaport diamond news service.
This meant the company has so far sold $5.15 billion worth of goods in 2008, up 2 percent from last year, Rapaport estimated. But despite the lack of a price increase this time, the news service said sightholders are still hurting from Julys 5 percent average price increase, which they have not been able to make up with polished diamond sales.
Some sightholders rejected some of the goods offered in sight boxes this time around. Sales were further slowed by the seasonal approach of the Jewish holidays and Indias Diwali festival. The next sight will be held November 3.
A service of the Antwerp Facets News Service (AFNS).
30 September 2008
Harry Winston Says Diamond Prices May Rise When Markets Calm
Sept. 30 (Bloomberg) -- Demand for safe-haven investments and a dearth of significant new mines will lift diamond prices after the worlds financial markets stabilize, Harry Winston Diamond Corp. Chief Executive Officer Robert Gannicott said.
Global supplies of rough diamonds are unlikely to meet expected demand as purchases rise with wealth in Russia, the Middle East and elsewhere in Asia.
``Theres a lot more upside in diamond prices than the public market appreciates, Gannicott said yesterday in an interview in New York. ``I dont think the supply-demand gap is understood very well.
Gannicott, 61, is positioning Harry Winston to benefit from heightened price competition for diamonds. Since early 2007, the price of some 3-carat diamonds have risen fourfold on speculation demand would outstrip supply.
``If you bought good quality stones five years ago, youre looking at a much bigger win than anything in the stock market, Gannicott said.
Harry Winston fell $2, or 13 percent, to $13.28, yesterday in New York Stock Exchange composite trading. Shares of the Toronto-based company plunged to their lowest since Jan. 14, 2002.
The Standard & Poors 500 Index fell 8.8 percent, the most since 1987, after the U.S. House of Representatives rejected a $700 billion plan to rescue the countrys financial system.
Looking Forward
Harry Winston, which owns its namesake chain of 18 luxury jewelry stores and 40 percent of the Diavik mine in Canada, plans to buy or tie up with another diamond producer within three years to ensure access to supplies of rough diamonds, Gannicott said.
Harry Winston and its Diavik partner, Rio Tinto Group of London, also are increasing spending on diamond exploration by 20 percent on lands they jointly control near the mine.
``Rough diamond supply is likely to fall short of expected demand within the next three to five years, London-based RBC Capital Markets analyst Des Kilalea said in an Aug. 27 note to clients. ``Production growth will be limited as older mines become deeper and production is scaled back, while new production is not expected to fill the gap.
A slow regulatory process in some countries will delay the startup of new mines, Gannicott said. Significant new diamond discoveries will probably await development of the industrys next ``magic wand, or some breakthrough technology that improves the odds of explorers finding diamonds, said Gannicott, a geologist by training.
Cultural Reasons
On the demand side, Gannicott expects sales to rise in China, India, the Middle East and Russia, partly for cultural reasons that are not well understood in Western countries. As sales in the U.S. have slowed, women in Russia and the Middle East have been increasing purchases of diamonds as security against the possibility of divorce, he said.
``The ladies that become owners of these things dont have the benefit of divorce laws that were used to, said Gannicott. ``The ownership of a very expensive piece of jewelry that is clearly theirs and is clearly portable means a lot more than it would in our society.
By Christopher Donville and Ron Day, Bloomberg - USA
21 September 2008
Worlds biggest diamond discovered
A gem stone which could become the largest polished round diamond in history has been discovered in southern Africa.
The massive stone weighs 478 carats and was found in gem mines in Lesotho, which have already produced three of the worlds biggest diamonds over the years.
Another similar sized rough stone from the same mine was recently valued at 12 million US dollars, but the clarity and round shape of this gem mean it could be worth considerably more.
Belfast Telegraph - United Kingdom
17 September 2008
Emmys 60th Anniversary to Glitter with Diamonds
17.09.08, 12:27 / World
This year’s annual Primetime Emmys, marking the 60th anniversary of the awards, is going to be dripping with diamonds.
The 625-square-foot hall will reportedly be shaped like a diamond and it will feature sparkly mirrors and diamond-patterned floors.
But most of the glitter will be coming from a big chandelier of diamonds featuring 3,300 of the stones. Its total carat weight is 1,000.
The Hearts on Fire diamond jewelry company created the three-tiered chandelier for the Architectural Digest Green Room. Its price tag after the happy event? $10 million.
By: Rachel Lieberman, Israel Diamond Industry Portal
16 September 2008
Harry Winston sales rise 7 percent
AFNS] NEW YORK, USA 16 September - Harry Winston Diamond Corporation said its sales were $186.1 million in the quarter ending July 31, with earnings from operations of $73.4 million. That was an increase of 7 percent and 30 percent, respectively, compared with sales of $173.3 million and earnings from operations of $56.2 million in the corresponding period of 2007.
Net earnings were $49.9 million, more than double last years figure of $20.1 million. However, net earnings last year were reduced by a net $11.8 million foreign exchange loss, as a result of the strengthening of the Canadian dollar relative to the U.S. dollar, compared to a net $5.3 million foreign exchange gain in the current year.
"Our businesses in Asia, Europe and the Middle East have been sufficient to offset the general market softness in the U.S. and Japan; this contributed to our strong retail finish for [July] quarter," company President Thomas J. ONeill said.
Production was lower than anticipated at the Diavik Mine, in which Harry Winston holds a 40 percent stake to Rio Tinto’s 60 percent, due to the transition from one open pit to the next and the resulting uncertainty in production forecasting, Chairman and CEO Robert A. Gannicott said.
Still, earnings from operations for the mining segment increased 27 percent to $67.5 million. compared to the comparable quarter of the prior year. Rough diamond production was down 23 percent in weight terms to 1 million carats
A service of the Antwerp Facets News Service (AFNS).
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