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26 April 2010
Price Hikes at DTC Sight
The Diamond Trading Company (DTC) has raised prices by 4-5 percent at its Sight held in London this week, according to initial reports. The Sight started today (Monday).
According to the company, there are “some minor price adjustments in some areas.”
The price increases are more pronounced in the larger goods, closer to 7 percent, according to Sight attendees.
High premiums for DTC goods in the market prompted the expectation that prices will be raised by the company. This in turn resulted in speculative buying, further driving up prices in the secondary market.
As Europe’s air travel is slowly returning to normal after the volcanic eruption in Iceland, a lower Sightholder attendance is noted.
This week’s Sight, the last one until June and the important JCK Las Vegas trade show, is the first Sight of the new ITO period.
IDEX Online
26 April 2010
De Beers to Limit Production to 40 Million Carats a Year
In a drive to extend diamond reserves, De Beers will place a 40 million cap on its annual diamond production starting in 2011. The move will likely drive up the price of rough diamonds, ahead of an expected public listing of the company.
In an interviewed with the Financial Times, De Beers Managing Director Gareth Penny spoke about the company’s production plans. “Do we want to ramp production back up to 48 million carats, given the lack of availability in the future? Diamonds are a treasure of nature that should be properly protected, because there will be less to sell. The reality is that supply cannot keep up, and that will become very accentuated over the next 15 years,” Penny said.
In the past, De Beers was accused of using its diamond stocks to affect diamond prices in the market. Possibly anticipating such an accusation in this context, Penny told the Financial Times "We are not seeking to manipulate anything,” adding “But there is a natural supply-demand imbalance that is leading to certain realities.”
According to analyst Chaim Even-Zohar (IDEX Online February 13, 2010), De Beers prefers leaving diamonds in the ground, instead of mining them. Penny was quoted recently in a number of occasions as saying, “We don’t mind leaving the goods in the ground,” and “We don’t mind extending the life of our mines.”
At current demand, prices may rise in such a scenario by at least 5 percent per year for the next five years, according to RBC Capital Markets analyst Des Kilalea.
De Beers can expect to return to profit as well as enjoy what Penny called “a natural supply-demand imbalance.”
Even-Zohar believes that by early next year, De Beers will seek a public primary listing on the London Stock Exchange, with secondary listings on the Botswana and Johannesburg stock exchanges, and “timed with the beginning of the renewed growth of consumer demand” in the U.S.
The current shareholders, Anglo American (45%), the Oppenheimer family (40%) and Botswana (15%) are not expected to relinquish their control of the diamond miner. Instead, they are seeking to raise money to cover more than $3 billion in debt.
Further, Even-Zohar is speculating that the Oppenheimers may be interested in keeping some of the assets, such as the retail partnership with LVMH, out of the deal, essentially making only the mining operations part of IPO.
IDEX Online
25 April 2010
De Beers Cuts Diamond Production as Supply Seen Falling, FT Says
April 26 (Bloomberg) -- De Beers Consolidated Mines Ltd. is reducing production of diamonds as it expects the supply of the gems to decline, the Financial Times reported, citing Gareth Penny, managing director.
The tightening in production could mean diamond prices rising by 5 percent a year for the next five years, the newspaper said, citing Des Kilalea, an analyst at RBC Capital Markets in London.
Bloomberg
16 March 2010
Growing recovery evidenced in Belgian diamond imports and exports for February
rowing confidence that the global economy is recovering appears to have received fresh confirmation from the Belgian statistics for imports and exports of both polished and rough diamonds for February. Given Antwerps role as the largest centre in the world for the sale of rough and polished diamonds, the data released by the Antwerp World Diamond Centre Diamond Office serves as an important indicator for the state of international markets.
Belgian rough diamond exports in February soared by 164.3 percent from February 2009 to 10.8 million carats worth $904.0 million, a jump of 162.2 percent.
For the first two months of the year, rough diamond exports jumped 143.4 percent from the same period of 2009 to 21.2 million carats worth $1.72 billion, a jump of 165.1 percent.
As for imports of rough diamonds, Belgium brought 10.5 million carats of rough goods last month with a value of $781.7 million, rises of 150.2 percent and 182.0 percent, respectively on February 2009.
For January-February, rough diamond imports jumped 67.1 percent from a year earlier to 21.5 million carats worth $1.55 billion, a rise of 109.6 percent.
Meanwhile, polished exports in February totalled 582,934 carats with a value of $875.3 million, increases of 1.0 percent and 15.4 percent, respectively.
For the first two months of the year, polished exports climbed 5.4 percent to 1.1 million carats worth $1.52 billion, a jump of 15.7 percent.
In polished diamond imports, Belgium bought 573,146 carats in February, a rise of 15.3 percent from February 2009, with the diamonds value being $662.9 million, a rise of 21.6 percent on February 2009. In January-February, polished diamond imports jumped 9.5 percent from a year earlier to 1.22 million carats worth $1.40 billion, a rise of 16.5 percent.
As for export destinations, the United States posted an 18.9 percent fall in polished diamonds in financial terms, but a 62.8 percent jump in volume, indicating a sharp rise in price per carat. For the first two months of the year, however, the United States imported 1.4 percent more diamonds at 132,000 carats worth $451.4 million – a jump of 48.5 percent.
Overall, the U. S. accounted for 11.9 percent of Belgiums polished diamonds in carat terms, and 29.6 percent in dollars. Hong Kong was the second-largest importer of Belgian polished stones last month, taking in 20.5 percent in carats, and 19.9 percent in financial terms.
Israel was the third-largest importer of Belgian gems, 8.1 percent in volume, and was followed by the UAE, Switzerland, India, China, the U.K., Italy and France.
A service of the Antwerp Facets News Service (AFNS).
11 March 2010
Diamantaires Hold Steady on Forbes Billionaires List
Forbes released its annual list of the world’s billionaires on Wednesday, bringing to light the financial standing of the world’s top diamantaires. Nicky Oppenheimer and his family took the top spot among them on the Forbes list at #154, followed by Laurence Graff at #374, Beny Steinmetz at #488 and Lev Leviev at #655.
Oppenheimer, who ranked #98 on last year’s list, has a net worth of $5 billion. His wealth, inherited from his family’s long time holding in De Beers, remained intact during an arduous year for the company, which saw sales for the worlds largest diamond drop 44 percent to $3.8 billion. Despite posting a net loss of $220 million in 2009, cutting costs has allowed De Beers to remain cash positive and consumer demand is starting to recover thanks to an increase in demand from China and India.
Graff, while dropping from #305 on the 2009 list, saw his wealth increase from $2.2 billion to $2.5 billion last year — thanks to a revival in demand for high-end diamonds this year. Forbes notes that jewelry business insiders call the British diamond merchant the “new Harry Winston.”
Steinmetz dropped in ranking from his spot at #334 last year but his net worth of $2 billion remained the same. Steinmetz chairs the Geneva-headquartered Steinmetz Diamond Group, which he inherited from his father. The company is De Beers largest buyer of rough diamonds and is slowly starting to see profits again as diamond sales are beginning to rebound with the market.
Despite the many public hardships his company is enduring, Leviev has also maintained his 1.5 billion net worth since 2009, when he was #468 on the Forbes list. Both this year and last, Forbes notes that the “worlds largest cutter and polisher of diamonds is trying to hold his empire together.”
IDEX Online
11 March 2010
Graff Opens Charity and Leadership Center in Lesotho
Laurence Graff opened the first Graff Leadership Centre in Lesotho last Saturday, complete with training facilities for children, youth and adults in programs that will teach pre-employment skills. The center works in conjunction with Graff’s new F.A.C.E.T. (For Africas Children Every Time) charity in Lesotho.
Lesotho is home to the Letseng Diamond Mine where Graff sources many of his diamonds. The charity is meant to function as a ‘fund of funds to raise money for the education, health and wellbeing of the children of Africa. The second floor of the new center provides a hostel for 50 young girls in a leadership program meant to develop peer leaders in their villages.
Graff has donated $1 million to launch F.A.C.E.T and plans to continue to support the organization with further donations.
“We would like to give something back to the country which gives us our remarkable diamonds. There is such appalling poverty and hunger in Southern Africa, yet with more help from donations the situation will begin to improve,” Graff said.
The tiny mountain Kingdom of Lesotho, completely landlocked inside South Africa, has the world’s third highest incidence of HIV/ AIDS. One of the poorest countries in the world, 63 percent of its population is under 24 years of age with a life expectancy of 37 years. In parts of Lesotho, the percentage of children who are orphaned can reach 40 percent.
IDEX Online
8 March 2010
Rare blue diamond set to fetch £3.8m
A rare internally flawless blue diamond which was displayed at the Millennium Dome in Greenwich is expected to fetch up to £3.8 million when it is sold at auction next month.
The 5.16-carat, pear-shaped stone, which is set in a ring, is the first blue diamond from the De Beers Millennium Jewels collection to go under the hammer.
It was among 12 stones displayed at the former Millennium Dome in 2000, in a collection which included the 203.04-carat Millennium Star white diamond, and 11 blue stones of various shapes and weights.
The gem will be sold by Sothebys in Hong Kong on April 7, with an estimated price tag of 4.6 to 5.8 million US dollars (£3.04 to £3.8 million).
It has been graded as having "fancy vivid blue" colour which is the highest for coloured diamonds.
Blue diamonds get their colour if the element boron is present when the stone is formed. They are extremely rare.
Quek Chin Yeow, from Sothebys Asia, said: "It is an unprecedented opportunity to acquire at auction a gem with this unique historical provenance."
Each stone in the collection was laser-inscribed with a De Beers Millennium number, and this blue diamond is "De Beers Millennium Jewel 11".
Sothebys sold a 7.03-carat internally flawless blue diamond, called the Star of Josephine, in May last year which fetched 9.48 million US dollars (£6.27 million).
At the time it set a world record auction price per carat of 1,349,751 million US dollars (£892,000).
UK Press Association
3 March 2010
IDEX Online Research: Polished Diamond Prices Up Significantly in February
Polished diamond prices rose a sharp 2.3 percent in February, according to the IDEX Online Global Polished Price Index. There are three key factors pushing polished diamond prices higher: rough diamond prices are rising; the global economic recovery has begun, led by exceptional strength in the U.S., the largest market for diamonds; and anticipation of re-stocking in the diamond pipeline, especially at the retail level.
The IDEX Online Polished Diamond Price Index averaged 112.6 during February 2010, up over 2 percent from the average of 110.1 for January. This was the third consecutive month that polished diamond prices have risen, after languishing for most of 2009 at around 108.
The IDEX Online Polished Price Index started the month at 111.4 and ended the month at 113.2. It showed steady gains throughout the month.
U.S. Economy & Diamond Prices Moving Together
After sluggishness during most of 2008 and early 2009, the global economy has begun to show signs of a recovery. In particular, the U.S. economy posted a dramatic 5.9 percent growth in the fourth quarter of 2009, after generating a solid 2.2 percent gain in the third quarter of that year. Historically, jewelry demand and GDP move together.
Because U.S. consumers purchase roughly half of the world’s diamonds and diamond jewelry, a strengthening economy in America is good news for the diamond industry. Polished diamond prices have begun to brighten as a result of prospects that shoppers will loosen their purse strings and head to their neighborhood jewelers to buy diamonds, diamond jewelry and other jewelry accessories.
Further, economies in other diamond-consuming nations have also begun to stir from their doldrums of the past two years. Thus, there is an expectation that diamond demand will pick up globally during 2010.
Within the diamond industry, rough diamond prices have been rising for the past two years, despite weak demand downstream in the diamond pipeline. In 2009, rough diamond prices were up by perhaps 13-15 percent, but were highly volatile. So far in 2010, rough diamond prices are up about 15 percent, after only two DTC Sights. Clearly, higher rough diamond prices are putting pressure on polished diamond producers.
Monthly Diamond Price Improvement Extended Across All Stones
While shoppers did not stop buying jewelry during the recession of 2008-2009, they were more value-conscious. They bought “down” – that is, they purchased smaller, lower-quality stones. Now, however, it appears that diamond demand may be reverting to historic norms. As the graph below illustrates, monthly prices rose across all diamond sizes, though some sizes experienced greater price appreciation that others.
Outlook: Polished Diamond Prices Will Continue to Rise
After falling for the past year and a half, polished diamond prices are on the rise. It is likely that polished diamond prices will show a substantial increase in 2010, as demand recovers from the so-called Great Recession of 2008-2009. It is possible that prices could climb by double-digit levels for the full year.
IDEX Online
8 March 2010
Oscars Prove Diamonds are a Movie Star’s Best Friend
Hollywood’s royalty were not the only ones to take center stage at the 82nd Academy Awards in Hollywood Sunday night, as the expansive variety of diamond jewelry they wore stood out quite brilliantly on its own.
The newest generation of Hollywood’s start went for diamond looks that were both edgy and glamorous, as the trends recorded by the Diamond Information Center takes note.
“This year we saw the emergence of a new generation of actors who have embraced their individuality,” says Jamie Cadwell, director of the DIC. “They are using the red carpet to express their personal styles, whether vintage inspired or very modern, we are seeing diamonds used in an exciting variety of ways.”
Best Supporting Actress nominee Anna Kendrick showed a penchant for old-Hollywood glam in Kwiat’s diamond pendant earrings. Big Love’s Amanda Seyfried offset her ethereal gown with 250 carats of contrasting Brown, champagne and mint diamond geometric bracelets by Lorraine Schwartz. Twilight star Kristen Stewart went understated in a simple H. Stern diamond bracelet while Rachel McAdams went for perfect match in show stopping natural multi color diamond earrings by Lorraine Schwartz.
Mirroring a look seen last month at the Golden Globe and Screen Actor’s Guild Awards, diamonds in the hair were spotted on seasoned actresses and freshman starlets alike. Presenter Elizabeth Banks accented her gown with a delicate diamond head band by Fred Leighton, while Diane Kruger went floral in her Chanel fine jewelry black and white diamond flower hair pin.
The most stunning diamond moment of the night, according to the DIC, came with Best Actress Nominee Carey Mulligan’s 19th Century cascading diamond and diamond briolette earrings paired with a delicate Everlon diamond knot ring, all by Fred Leighton.
The following celebrities wore diamonds to celebrate the 82nd Annual Academy Awards:
Amanda Seyfried - Lorraine Schwartz - brown, champagne and mint diamond geometric bracelets, 250 carats; delicate blackened platinum diamond earrings; brown diamond ball ring.
Amy Landecker - Everlon diamond knot collection/Camilla Dietz Bergeron - Everlon diamond knot double row pave bracelet; diamond pendant earrings from Camilla Dietz Bergeron.
Anna Kendrick – Kwiat - diamond oval motif bracelet; diamond pendant earrings; diamond web ring.
Anika Noni Rose - diamond bracelet; flower cluster diamond earrings; diamond ring.
Cameron Diaz – Cartier – diamond pave trinity circle earrings in white, yellow and rose gold; diamond and white gold ring from Cartier private archive collection; princess and round cut diamond ring set in white gold.
Carey Mulligan - Fred Leighton - 19th Century cascading diamond and diamond briolette earrings; Everlon diamond knot ring by Fred Leighton; 19th Century pear-shaped diamond ring, 2 1/2 carats.
Charlize Theron – Harry Winston – vintage marquise diamond wave bracelet; diamond cluster earrings, 17.25 carats.
Deborah Ann Woll - Everlon diamond knot collection - Everlon pave diamond double knot bangle; Everlon pave diamond knot bangle; Everlon diamond knot bangle; Everlon diamond knot tassel earrings in oxidized white gold.
Demi Lovato – Vanity Fair Party - Everlon diamond knot collection - Everlon diamond knot tennis bracelets; William Goldberg diamond bracelet; Everlon diamond pendant earrings in antiqued gold; Everlon Pave diamond double knot ring.
Diane Kruger – Chanel fine jewelry - diamond line bracelet; diamond floral stud earrings; black and white diamond flower brooch.
Elizabeth Banks - Fred Leighton - rose-cut diamond briolette pendant earrings; diamond head band.
Emma Roberts – Vanity Fair Party - Martin Katz - Everlon pave diamond knot drop earrings.
Faith Hill - Lorraine Schwartz - Lorraine Schwartz-black diamond bangles in blackened platinum, 180 carats; white diamond bangles.
Helen Mirren – Chopard - oval shape diamond necklace, 125 carats; fancy and rose-cut diamond cuff; diamond pear-shape drop earrings, 9 carats.
Jennifer Lopez – Cartier - diamond and platinum bracelet; diamond ear clips, Cartier London 1934; diamond Cartier Panthere Maillon XXl ring in white gold.
Joe Jonas – Vanity Fair Party - Everlon diamond knot collection - Everlon diamond knot cufflinks.
Julianne Moore – Bulgari – two diamond and platinum bracelets, circa 1930 from Bulgaris Historical Archives; three diamond and platinum bracelets from Bulgari’s high jewelry collection.
Kate Winslet - Tiffany & Co. - yellow diamond necklace created exclusively for her by Tiffany & Co., $2.5 million; yellow diamond bracelets; yellow diamond drop earrings, 10 carats.
Kathryn Bigelow – diamond bracelet.
Kathy Bates - Diamond in the Rough - rough diamond Astra necklace, 61.48 carats; stacked rough diamond Astra bangles with over 54 carats; rough diamond Astra earrings, 56.59 carats.
Kevin Jonas - Everlon diamond knot collection - Everlon diamond knot cufflinks.
Kristen Stewart - H.Stern - diamond bracelet.
Maggie Gyllenhaal - Fred Leighton - 1940s diamond cuff bracelet; 19th Century diamond and ivory calla lily earrings.
Mariah Carey – Various - William Goldberg oval-cut diamond bracelet; H.Stern top floral diamond cuff bracelet; stacked diamond tennis bracelets; chopard rose-cut diamond hoop earrings, 43 carats; diamond flower rrooch.
Mariska Hargitay – Fred Leighton - 19th Century diamond cluster necklace.
Meryl Streep - Fred Leighton – magnificent Art Deco diamond and onyx bracelets; square pave-set diamond ear clips; 1920s diamond and onyx ring.
MoNique – Chopard – princess-cut yellow diamond tennis bracelet; radiant-cut light yellow diamond line bracelet, 46 carats; radiant-cut fancy yellow diamond and white diamond earrings, 17 carats.
Nick Cannon - Everlon diamond knot collection - Everlon diamond knot cufflinks.
Nick Jonas – Vanity Fair Party - Everlon diamond knot collection - Everlon diamond knot cufflinks.
Nicole Richie – Lorraine Schwartz - Diamond stud earrings in blackened platinum; iridescent cluster diamond ring in blackened platinum, 110 carats; diamond ring in blackened platinum.
Paula Patton - Martin Katz - diamond tambourine bracelet, 14.86 carats; diamond cuff bracelet, 18 carats; diamond tassle earrings, 25.22 carats; diamond mosaic ring, 8.5 carats.
Penelope Cruz – Chopard - Asscher-cut diamond bracelet, 23 carats; emerald-cut gradual diamond bracelet, 28 carats; diamond line bracelet; pear-shape diamond drop earrings, 18 carats; fancy-cut diamond cocktail ring; diamond pave band, 16 carats.
Rachel McAdams – Lorraine Schwartz - natural multi-color diamond earrings; diamond pinky ring.
Rashida Jones – Vanity Fair Party - Everlon diamond knot collection - Everlon diamond knot chain bracelets; oxidized Everlon 3 knot drop earrings; Everlon diamond knot stacked rings.
Sandra Bullock – Her own personal jewelry from Neil Lane - diamond drop earrings; diamond line bracelet.
Sarah Jessica Parker - Fred Leighton - 1950s diamond swirl bracelet; cognac diamond flexible bracelet; rose-cut diamond bracelet; 19th Century diamond cluster earrings; antique cushion-cut diamond ring, 9 carats.
Sherri Shepherd - William Goldberg - diamond aero bracelet; diamond cluster chandelier earrings.
Sigourney Weaver - Neil Lane - diamond link bracelet; round diamond drop earrings, 7 carats each.
Stana Katic - Neil Lane - 3 antique diamond Bracelets; diamond oval pendant earrings; diamond cluster ring.
Vera Farmiga - Fred Leighton - 1920s diamond ear clips; 1960s diamond cluster cocktail ring; diamond leaf brooch in her hair.
Zoe Saldana - Lorraine Schwartz - custom-made 20-carat bronzed platinum diamond drops.
Zoe Kravitz - Fred Leighton - 1920s diamond square-link bracelet; 1920s diamond and cognac diamond bracelet; 1930s old-mine cut diamond drop earrings, 3 1/2 carats; diamond paisley ring; 3 stacked diamond rings; 19th Century diamond wing brooch worn in her hair.
IDEX Online
1 March 2010
507-Carat Cullinan Heritage Sells for $35.3 Million
The 507-carat Cullinan Heritage diamond has been sold for $35.3 million, the highest sale price on record ever achieved for a rough diamond, Petra Diamonds announced Friday. The diamond was sold on tender in South Africa and was purchased by Hong Kong-based Chow Tai Fook Jewellery.
The purchaser, a Diamond Trading Company (DTC) Sightholder, has not yet disclosed its plans for the diamond.
According to Petra, the price of the Cullinan Heritage, recovered in September 2009 from Petra’s Cullinan mine, reflects the incredible rarity of the diamond. At 507.5 carats, it is the nineteenth largest gem quality diamond ever discovered.
IDEX Online
24 February 2010
Petra Diamonds 507-carat gem could raise $25 million in sale on Friday
The 507-carat egg-sized diamond discovered by Petra Diamonds at its Cullian mine in South Africa is due to be sold on Friday and could raise $25 million for the company after it drew more buying interest than originally expected.
Analysts originally placed a value of around $20 million for the 100-gram stone named the Cullinan Heritage. Rising rough diamond prices, however, are likely to have raised its price further.
"There has been very strong interest in viewing the stone and in being involved in bidding," said Petra Finance Director, David Abery. "We have been very pleasantly surprised to see the level of interest."
The sale of the diamond, one of the 20 largest high-quality rough diamonds ever found, will also provide a boost to Petras full-year financial results. "We are very confident for second-half earnings," said Abery. "We are looking forward to some nice strong full-year numbers."
A service of the Antwerp Facets News Service (AFNS).
25 February 2010
Million-dollar engagement sparkler for actress/singer Hilary Duff
ctress and singer Hilary Duff has reason to celebrate after receiving a marriage proposal sealed with a diamond engagement ring estimated to have cost around $1 million.
Media reports suggest the diamond could weight from 7 to 14 carats, and is either a princess or cushion cut.
The ring is estimated to have cost fiancé Mike Conrie, a National Hockey League player, anywhere from $750,000 to a cool $1 million.
Some reports said that since the ring is the same size as her finger, the diamond is likely to be in the 10-carat range.
And since money does not seem to be an issue for the couple, reports said they were looking for a Beverly Hills mansion for around $10 million.
A service of the Antwerp Facets News Service (AFNS).
25 February 2010
American Idol star Cowell proposes with $400,000 Graff diamond ring
American Idol star Simon Cowell has bought his fiancée a £250,000 ($400,000) diamond ring from London jeweller Graff Diamonds.
Cowell, aged 50, and know for his taciturn personality and sarcastic comments on American Idol, Britains Got Talent, and the X-Factor, has proposed to make-up artist Mezghan Hussainy, according to media reports.
Hussainy, 36, was photographed wearing the Graff ring on her wedding finger.
Cowell, who has refused to comment on the reports, proposed to Hussainy several weeks ago, according to the Daily Mail.
Cowell, one of the most powerful men in showbusiness, has reportedly always refused to consider marriage, fearing the loss of a huge part of his personal fortune following a divorce.
A service of the Antwerp Facets News Service (AFNS).
18 February 2010
DTC raises prices by 7-9 percent at February sight - report
The Diamond Trading Company (DTC) reportedly increased its prices by 7 to 9 percent at this week’s February sight, however it expects short-term stability in prices. The sight began on Wednesday and finishes at the end of this week.
There were “incremental adjustments to DTC box prices over the past few sights and a further and higher single digit increase for sight two,” said Mahiar Borhanjoo, DTC’s executive director of sales and sightholder services, in a letter to sightholders cited by Rapaport News. “We now anticipate a period of stability in respect of our prices, subject, of course, to any further major changes in market conditions.”
The DTC has been able to alter prices in recent months due to increasingly positive economic and supply-demand developments, Borhanjoo added.
"Clearly, it would be premature to say that the period of uncertainty is over, but the industry does appear to be moving in the right direction,” he said. “Our sights in [the second half of] 2009 and into 2010 have seen demand consistently increase and we are confident that this trend will continue throughout 2010.”
DTC has increased prices in light of rising U.S. consumer confidence and diamond jewellery sales. In addition, there is strong demand for some types of rough diamonds, and growth in China and India is also helping.
Meanwhile, Rapaport said reports from BHP Billiton customers showed that prices rose by an average of three percent at the firms rough tender last week.
A service of the Antwerp Facets News Service (AFNS).
17 February 2010
Brilliant cut diamond ring for reality star Nicole Ritchie
Hollywood celebrity Nicole Ritchie is making headlines after receiving an engagement ring. Media reports quoted diamond experts as saying the ring was worth anywhere from $60,000 to $85,000.
The ring contains a brilliant cut centre stone weighing around 3 to 4 carats set in platinum and featuring pave diamonds surrounding the center stone makes it modern.
"This diamond is set in platinum so it makes the diamond sparkle brighter. Also, Nicole wont have to worry about the large diamond falling out since platinum settings hold stones more securely than other metals," jewellery and style expert Michael OConnor.
The reality star turned designer, aged 28, is to marry singer Joel Madden, with whom she has two children called Harlow Winter Kate and Sparrow Midnight.
Nicole Ritchie is the daughter of singer Lionel Ritchie who achieved fame in the 1980s and 1990s.
A service of the Antwerp Facets News Service (AFNS).
16th February 2010
Investors bought more gold than jewellers for first time in 30 years in 2009
Demand for gold as an investment surpassed demand from the jewellery industry last year for the first time since 1980 as prices reached record highs, according to AngloGold Ashanti Ltd., Africa’s largest producer of the metal.
“The U.S. market continued its rally with the case for gold investment gaining traction with both retail investors and institutions,” the firm said in its earnings report. “There is now also talk of significant bar purchases by some of the larger buyers which are opting for bullion rather than paying the storage and management fees charged by” so-called exchange-traded funds (ETF), AngloGold said.
Gold jumped to a record $1,226.56 an ounce in December, rallying for a ninth year, as investors, worried about the possible inflationary impact of massive government financial stimulus packages worldwide, as well as low interest rates, poured huge amounts of cash into gold.
The price of gold was also boosted by central bank buying of gold, particularly in India and China.
Meanwhile, the World Gold Council said global gold demand climbed 2.6 percent in the fourth quarter to 819.7 metric tons. North American and Western European retail investment demand jumped 77 percent.
A service of the Antwerp Facets News Service (AFNS).
12th February 2010
Gareth Penny says De Beers may raise output by 20 percent in 2010
De Beers may increase output by more than 20 percent this year due to “strong” growth in demand as the gem industry recovers from global recession, said managing director Gareth Penny.
Production may rise to more than 30 million carats this year and “in the 40 millions of carats” in 2011, Penny told Bloomberg News.
"We’ve seen quite a strong rough diamond market emerging in 2010,” Penny said. "We’re going to be pretty close fairly shortly to the price levels that prevailed at the end of 2008.”
De Beers slashed output by 49 percent last year as demand slumped for luxury goods, the company reported in its annual results for 2009.
Sales at DTC fell 46 percent to $3.23 billion last year, De Beers said.
Rough diamond prices began rising from mid-2009 as De Beers cut output and gem dealers rebuilt stockpiles in the run-up to the Christmas holiday.
Christmas-season sales globally were better than expected, Penny said. In the U.S., the largest retail market for the gems, sales rose 1 or 2 percent from a year ago, he said.
A service of the Antwerp Facets News Service (AFNS).
10 February 2010
CIBJO calling for renewed effort over natural and synthetic nomenclature
The Diamond Commission of CIBJO, The World Jewellery Confederation, is calling for a renewed effort to reach industry-wide agreement on nomenclature that accurately distinguishes between natural and synthetic diamonds ahead of the 2010 CIBJO Congress.
The appeal is contained in CIBJOs annual report which it has released in the run-up to the annual congress which takes place in Munich and starts on February 19.
In their report, Udi Sheintal and Jon Phillips, respectively the president and vice president of the Diamond Commission, note that they will be meeting with representatives of the International Diamond Council in London before the start of the CIBJO Congress. The aim of the meeting is to investigate whether progress can be made in creating a joint set of nomenclature for natural and synthetic diamonds.
"Hopefully all participating parties will concur that the lack of an agreed to nomenclature for diamonds - natural and synthetic - ultimately will affect consumer confidence negatively across the globe," they write in the report.
Delegates to the CIBJO 2009 congress in Istanbul decided not to change the nomenclature permitted for gem-quality synthetic diamonds. As a result, the only descriptor permitted by CIBJO is the adjective "synthetic."
The other terms that were proposed were: "man-made," "laboratory-grown," "laboratory created" or "[company name]- created."
In a similar vein, the Diamond Commission report looks at the misrepresentation of diamonds in the mass media, and in particular in-flight magazines and sales catalogues. Without a common, joint directive from the major umbrella organisations, such as the WFDB, IDMA, IDC and CIBJO, offenders "will continue to get away with arguments that the nomenclature is not clear-cut and therefore ineffective," the reports authors write.
The Diamond Commission report also looks at a study conducted by a task force created by the Accredited Gemmologists Association (AGA) into the impact of lighting on colour-grading colourless diamonds. The Task Force was established in response to allegations in recent years from gemmologists and appraisers that colourless diamonds exhibiting blue fluorescence were being over-graded by gem-testing laboratories.
A service of the Antwerp Facets News Service (AFNS).
1 September 2009
Diamond-set watch individualised by wearer’s fingerprint
Piaget, the Swiss luxury watchmaker and jeweller, has developed new way to enable its more wealthy clients individualise their purchases. Its Altiplano Fingerprint watch features a diamond-set dial with a design based upon the wearer’s own fingerprint.
Buyers of the Altiplano Fingerprint watch supply Piaget with an impression of their own fingerprint, and then the company uses it to create a one-of-a-kind dial in gold and round brilliant diamonds, in its Geneva workshop. No one watch, like no one fingerprint, is like any other.
And it’s not only about the diamonds. The Piaget Altiplano Fingerprint watch features a hand-wound mechanical movement, contained in one of the slimmest casings in the industry. In look and performance the watch is all high-quality.
Among the individuals whose fingerprints have been recreated in diamonds are reportedly Monaco’s Prince Albert II and the pop-star Ludacris.
Piaget was founded in 1874 by Georges Piaget in the Swiss village of La Côte-aux-Fées. It is today owned by the Richemont group.
A service of the Antwerp Facets News Service (AFNS).
1 September 2009
Belgium consumer confidence rises to highest level since September 2008
The National Bank of Belgium has reported that its consumer confidence indicator has risen to its highest level in almost a year. According to the bank, the indicator stood at minus 11 in August, up from minus 17 in July. It was the highest level reported since September 2008.
Other indicators were also more upbeat, the central bank reported. Its measure for households saving capacity over the coming 12 months rose to to 5 in August from 2 in July, while the financial situation indicator climbed to 1 from minus 2 in June. The measurement for the economic situation in Belgium during the coming 12 months stood at 7 in August, up from minus 4 in July. The measure for unemployment fell to 57 from 65 in July.
According to the Organisation for Economic Cooperation and Development, GDP in the euro zone dropped by 0.1 percent during the second quarter of 2009, following a decline of 2.5 percent during the first quarter.
A service of the Antwerp Facets News Service (AFNS).
1 September 2009
Diamonds are a guy’s best friend
Published: August 28 2009 17:54 | Last updated: August 28 2009 17:54
My better half never used to like jewellery – thank goodness – but, after talking to one of her friends, she’s started leaving leaflets about diamonds lying around the house. Even the children have mentioned it recently – according to my daughter: “Mummy says she’d love a nice diamond”. Well, Daddy would love a nice twin-engine plane, but he’s not getting that either.
This response has so far failed to silence the ‘debate’. Apparently, my wife’s friend has declared that, “diamonds are a much better safe haven than all that brash gold”. She’s obviously been listening to the marketing bods from De Beers who are preparing an advertising campaign based around just such a thought: why bother buying gold as insurance against monetary fiat, when you could have a lovely white diamond?
EDITOR’S CHOICE
Adventurous Investor: More columns from David Stevenson - Oct-28..This also seems to have been the thinking of the super-slick diamond thieves who took down a Mayfair jewellers a few weeks ago for £40m plus.
In honesty, I do see their point. Gold is so, well . . . boring and samey. What I mean is that gold never looks unique. In a generic sense, it all looks the same. Diamonds, on the other hand, have always struck me as distinctive and individual – no two high grade diamonds are ever quite the same and I’m guessing that the market for investment grade diamonds is inefficient and riddled with ‘emotion’.
Like all emotional assets – a term I’ve discussed before with reference to collectables – value is set by what a buyer will pay. So, if that buyer is a Russian oligarch or Middle Eastern potentate, then the sky’s the limit. That imperfection in the marketplace is both a risk and a potential source of reward.
The risk is that ‘insiders’ will take you for a ride. It’s a particularly big risk in the diamond sector where many auctions are closed. But the potential rewards are that, with the right ‘alpha’ – or expert investment manager – you can exploit these markets to add some non-correlated returns to your portfolio.
Until recently, there wasn’t a way of testing this theory. Then, last summer, some adventurous types launched a listed diamond fund called Diamond Circle Capital. It buys high-grade polished diamonds, including coloured and large white stones, with an average purchase price of £3m-£5m. The fund is 90 per cent invested and is managed by the commodity specialist Diapason Commodities Management.
With hindsight, the summer of 2008 was not the ideal time to launch a fund that invests in a luxury product influenced by high-spending Americans (50 per cent of the market), Russians and Gulf princes. De Beers, for instance, cut back Q1 2009 output 91 per cent year on year, and profits tumbled. So the fund is down 50 per cent in price terms since launch, with net assets down 28 per cent.
But my contrarian instincts suggest that this woeful situation might be worth a second look based on the following:
● 5ct diamond prices have outperformed gold bullion over the last 25 years – they may even be a better hedge against inflation.
● Global supply of crucial Kimberlite deposits is in decline.
● Chinese demand is ramping up. A recent article on the IDEX news website noted: “Chinese diamond imports were up nearly seven per cent in the first half of 2009 . . . between January and June, China’s foreign diamond trade amounted to $692m, a growth of 6.9 per cent compared with the same period last year. The total included a record $300m in imports, up 12.7 per cent . . . China has become the world’s third largest diamond consumer after the US and Japan.”
● US demand for diamonds might also increase when the US economy picks up.
● Shares in Diamond Circle Capital are trading at a 30 per cent discount to net asset value (NAV) in a sector where pricing is fairly liquid and open.
Take these together, and you can begin to see why diamonds might make a very small ‘alternative assets’ holding.
But, before you get too carried away, consider one piece of recent research. Last year, I wrote about Bernard Duffy and a team of academics who had studied “emotional assets” including diamonds and other collectables. They found that, over the 30 years between 1976 and 2006, diamonds (as measured by the HRD Carat D Flawless Index) had produced a return of 4.4 per cent (above coins, clocks and watches) but with a massive standard deviation of 19.5 per cent. Over the 20 years to 2006, that return had dropped to just over 2.5 per cent but still with a big 10 per cent standard deviation.
They also noted: “Some collectable items show a tendency to move in line with each other, with a high correlation coefficient, such as diamonds and coins, books and atlases, and clocks and watches and stamps.”
However, diamond enthusiasts argue that this recent under-performance has ended and supply/ demand forces will reassert themselves. If they’re right, Diamond Circle Capital could be an interesting, sideways bet on growing affluence in the emerging world
Financial Times (ft.com) By David Stevenson
25 August 2009
iaget, the Swiss luxury watchmaker and jeweller, has developed new way to enable its more wealthy clients individualise their purchases. Its Altiplano Fingerprint watch features a diamond-set dial with a design based upon the wearer’s own fingerprint.
The Hope Diamond will get a new setting with your help and a vote as the Smithsonian Channel wants you to have a say in where a beautiful and exquisite 45-carat diamond sits. Gene Byrd takes a look at the way to move the big massive rock from its traditional setting to a new one.
Some think its foolish to ever move it with one adding, These people are idiots to even think about resetting the Hope Diamond... it is beautiful just the way it is, surrounded by diamonds... the three choices offered by Harry Winston are completely underwhelming, and look nothing short of cheap... why is it everyone thinks everything needs to be changed or improved at some point, even when it doesn\t need such? I call that pretty damned arrogant. " Have your vote and see the designs at Smithsonian Channel.
National Ledger
12 August 2009
Christies predicts top price for five-carat pink gem
A service of the Antwerp Facets News Service (AFNS).
12 August 2009
Platinum and diamonds make cellphone one of worlds most expensive
British craftsmen have turned a Nokia mobile phone one of the world’s most expensive such devices by using platinum and diamonds.
The Nokia Royal Plus costs £30,000 ($50,000) and was created by Goldstriker International founder Stuart Hughes and three craftsmen who took several months to transform the handset.
The company removed the carbon fibre from the phone and replaced it with 65 grams of platinum. By way of comparison, the average platinum wedding ring weighs just four grams.
The platinum was then set with 1,160 diamonds totaling 8.2 carats of VVS F coloured stones.
The finishing touch is a granite case and the mobile can only be bought at high-end London store Harrods.
Hughes specializes in using gold, platinum and diamonds on mobile phones, iPods, pens and lighters.
It has also created an 18 K rose gold iPhone set with 53 pink diamonds with a price of £21,995 ($33,000).
A service of the Antwerp Facets News Service (AFNS).
12 August 2009
London police say $65 million of jewellery stolen in Graff Diamonds raid
A retail value of £40 million ($65 million) has been given by London police for the jewellery stolen from Graff Diamonds luxury jewellery store in Londons up-scale Mayfair area last Thursday.
The raid makes it by far the largest of its kind in Britain, eclipsing the almost $40 million of jewellery stolen from the same store in May 2003.
The police said that two men dressed in suits, under which they had handguns, placed 43 jewellery items in a bag and got away as they threatened workers with warning shots.
The stolen items were set with 1,437 individual diamond stones.
Police said the stolen jewellery includes a pair of white gold earrings set with 216 white diamonds; a platinum and yellow gold ring set with 179 yellow and white diamonds; a set of white gold earrings set with 84 diamonds; a large platinum and gold necklace containing 272 pink and yellow diamonds; and a necklace set with 78 diamonds.
Police have released a closed circuit film from the store showing the men – one white and one black – being let in through the security doors. After gaining entry, they took out their handguns and threatened staff.
They then placed the jewellery items in a bag before briefly taking a female employee hostage. She was released as the men made their getaway in a blue BMW.
They were nearly caught when the car crashed into a taxi and members of the public pursued them. However, the men fired warning shots in the air and escaped in a silver-colour Mercedes, before later swapping that for a black vehicle.
Police suspect that the bag of jewellery was handed over to man on a motorbike who was able to escape quickly through the busy streets of Londons West End.
London Metropolitan police detectives suspect the robbers knew exactly which items to steal, and may already have a market for the jewellery.
Although the suspects details were sent to all of Britains ports and airports, the police believe they likely had a well-organised escape route and the jewellery may already have found its way abroad.
A service of the Antwerp Facets News Service (AFNS).
12 August 2009
Belgium extradites man to France in connection with Paris Chopard robbery
The Belgian authorities said that last month they extradited a man to France in connection with the theft of several million euros of goods from a luxury Paris jewellery house.
They said the suspect, aged 52, was detained in the Belgian port city of Antwerp, the hub of the countrys diamond industry, in mid-July following a request from French justice authorities.
He was extradited to France several weeks later where he is in custody, according to the Associated Press report.
Investigators say the man, wearing a suit and a hat, entered the Chopard jewellery boutique on the chic Place Vendome on May 30. He calmly left the store some minutes later having stolen up to 6.5 million euros of jewellery after threatening staff with a gun.
Neither the Belgian nor French authorities have released any other details about the suspect. And police are not willing to comment on whether the jewellery was recovered.
A service of the Antwerp Facets News Service (AFNS).
2 August 2009
Diamond makeup gives Madonna extra sparkle
As if pop star Madonna does not make a stunning enough impact in her live shows, the pop icons makeup artist has found a new way of making her sparkle with crushed diamonds.
For her Sticky & Sweet 2009 tour, Madonna has extra glitter by having her eyelids dusted with a mixture of white shadow and flawless, crushed rose-cut diamonds.
And to add to that, another two carats of small diamond pieces are being affixed to her brow bones in a move inspired by her hit “Ray of Light.”
Madonnas Artistic Director Gina Brooke said of the impact of the diamond makeup: “The resulting brightness and glow from Madonna’s eyes captivate the audience and reinforces the fact that there are always new possibilities with makeup — and no rules," according to People magazine.
A service of the Antwerp Facets News Service (AFNS).
12 August 2009
Tiffany & Co. to open fifth store in Australia as economy picks up
U.S. jewelry retailer Tiffany & Co. plans to open a fifth store in Australia in November.
The jeweler already runs stores in Melbourne, Sydney, Brisbane and Perth. The latest addition will be its first shop in the country to be in a suburban setting in Melbourne.
The Tiffany & Co announcement comes as Australia provides increasing proof that it will be the first Western country to emerge from the global recession.
While the United States, Europe and Japan are all forecast to post falls in gross domestic product this year, Australia is projected to post growth, albeit at a low level of around 0.3 percent, with stronger expansion of around 1.5 percent in 2010.
The Australian economy has been aided by strong sales of commodities such as iron ore to China, and because its relatively healthy financial system managed to largely avoid the bad-loan problems that battered banks in the United States and Europe.
A service of the Antwerp Facets News Service (AFNS).
20 July 2009
Despite cutbacks, De Beers expects to be profitable in 2009
In spite of a near freeze of diamond production during the first part of 2009, De Beers expects to end 2009 in the black.
Speaking to Reuters, David Prager, De Beers director of communications, said that the company will achieve both postive interim and full-year results, even output was cut by 90 percent in the first quarter. “It wont be negative... clearly therell be a drop, but I dont think it will be dramatic... maybe some people will even be surprised because its better than they thought,” Prager said.
“The company will be profitable this year and obviously thats critically important,” he added.
Prager said that De Beers is pushing forward with its plan reduce operating and capital costs by $1.5 billion in 2009. This, he said, will leave it in a strong position for the future as recovery takes hold. Full He predicted that full year output would fall by 50 percent.
Prager reiterated comments made in Antwerp earlier by De Beers Managing Director Gareth Penny that there are signs of a market rebound. “Weve definitely seen signs of recovery in the market,” he told Reuters, “but were talking about first half numbers and its certainly no surprise that at least the first quarter of the first half was historically difficult.
“Obviously things arent back to normal and people are still cautious, but were certainly not in the place we were even in March,” “Prager said.
“We expect to see in the second half a further return in demand, and then moving into 2010, more of a return to normal trading conditions. All the signs point to a progressive recovery,” Prager stated.
A service of the Antwerp Facets News Service (AFNS).
20 July 2009
Domestic considerations behind Russia’s stockpiling of rough diamonds
Political considerations rather than pure economics are a major factor behind Alrosa’s decision to maintain rough production levels, at a time when other producers were cutting back sharply, according to a report by Oxford Analytica.
In May, stated Oxford Analytica, it was estimated that the world wholesale market for polished diamonds would fall from $21.5 billion in 2008 to around $12 billion in 2009. Despite this, Alrosa continued producing at 2008 levels, with production down by a minimal 1.9 percent from January through May, compared to the same period in 2008. In contrast, De Beers cut its output by 91 percent.
A consideration of paramount importance, stated the Oxford Analytica report, is Moscow’s relationship with Yakutia, the site of most of Russia’s producing diamond mines. Alrosa’s largest shareholder is Russia’s federal government, and the chairman of its supervisory board is Finance Minister Aleksei Kudrin. Prime Minister Vladimir Putin has centralised control over many of the country’s natural assets, but is keen to maintain a working relationship with the Yakutian government. As a major employer in Yakutia, any dramatic cut in production by Alrosa would have brought about a sharp rise in unemployment and tension between Moscow and the Shtirov adminsitration.
Alrosa has managed to maintain production levels by selling increasing amounts of its output to Gokhran, the state repository of precious metals and precious stones. Sales to the world market have fallen considerably. In effect, wrote Oxford Analytica, production by Alrosa, a Ministry of Finance-supervised business, is now being sustained by selling output to an entity that is also controlled by Ministry of Finance, Gokhran.
When market conditions improve, Russia will be holding on to large amounts of rough diamonds, and that could have positive economic consequences. But, surmises the Oxford Analytica report, the long-term effect on the international diamond market is not likely to be substantial.
Oxford Analytica is an independent strategic-consulting firm drawing on a network of more than 1,000 scholar experts at Oxford and other leading universities and research institutions around the world.
A service of the Antwerp Facets News Service (AFNS).
20 July 2009
Survey provides hopeful news regarding U.S. bridal market
Encouraging news regarding the U.S. jewellery market has emerged from a survey carried out by The Knot Inc., the owners of The Knot Wedding Network, which includes the Internets most-trafficked wedding websites and communities, TheKnot.com and WeddingChannel.com.
The recently held survey of more than 9,000 recently married couples captured detailed feedback on everything from the proposal itself to the engagement ring, wedding bands, and wedding day jewellery.
Among the highlights of the survey are that 67 percent of brides are involved in the selection and/or purchase of the engagement ring, a slight increase of 5 percent over the past few years. A third of brides are even visiting ring retailers without their fiances.
Among brides significantly involved in the engagement ring purchase, the couple spends three months looking at approximately 28 rings at more than four different retailers, on average, before choosing the one.
The average amount spent on an engagement ring is $5,800, with more than 20 percent of couples spending more than they had originally planned. Most couples, 80 percent, claimed that they were not downsizing their ring as a result of the current economic slowdown, and although 16 percent of couples determined the engagement ring budget together, it was the groom who ultimately made the decision (82 percent).
Most brides received their first choice of stone shape and cut (67 percent) and metal (78 percent). When it came to choosing a ring, stone cut and shape, and style and setting were the most important attributes, with 53 percent and 52 percent, respectively, ranking it as number one or number two. Price and value and stone size tied as the fourth attribute under consideration.
Couples are spending more than $2,000 for both of their bands, with almost twice as much spent on the brides ring.
More than 9,000 qualified couples of mixed ethnicities, education, and income levels were polled across 50 states. Wedding dates of those polled fell between August 2008 and September 2009
A service of the Antwerp Facets News Service (AFNS).
20 July 2009
Rose gold and pink diamond iPhone revealed
Yet another uber-luxurious phone is on offer with the news that four craftsmen have created a the worlds first 18ct solid rose gold iPhone 3GS complete with copious amounts of diamonds.
The luxury offering contains approximately 150 grams of 18ct rose gold, finished off with no less than 53 pink diamonds housed in the 18ct rose gold Apple logo.
The iPhone will go on sale at www.stuarthughes.com later this week priced at a mere £21,995
Pocket-Lint.com
14 July 2009
GIA Adds Fluorescence Info to Diamond Reports
Effective immediately, the Gemological Institute of America (GIA) will include a description of a diamond’s ultraviolet fluorescence in its GIA Diamond Grading Reports and Diamond Dossiers. The Institute will use in their newly revised diamond grading reports to help better educate the public on this “common, but little understood phenomenon in diamonds,” the Institute said in a recent press release.
A separate, four-color insert chart will explain the properties of a diamond’s fluorescence in consumer-friendly terms and includes comparison images of diamonds in both natural and UV light to illustrate varying intensities of fluorescence. The five terms GIA uses to classify the intensity of the fluorescence are: None, Faint, Medium, Strong, and Very Strong.
“Some diamonds show fluorescence and some don’t,” said Thomas Moses, GIA’s senior vice president of Laboratory and Research. “Fluorescence is the emission of visible light by a diamond when it is stimulated by invisible ultraviolet (UV) rays. It is a common characteristic of diamonds. The diamond simply glows under the UV lights, usually a blue color, which most often stops when the energy source causing it is removed.”
For more than 50 years, GIA has indicated the presence of diamond fluorescence on its diamond grading reports, but described it on the report as an “identification characteristic only – not a grade,” Moses said.
“This insert will help the public better understand diamonds in general, which gives them more confidence and knowledge when making a decision about a diamond,” Moses added.
GIA has additional information on fluorescence on its website, including a scientific article, “A Contribution to Understanding Blue Fluorescence on the Appearance of Diamonds,” by Thomas M. Moses, Ilene M. Reinitz, Mary L. Johnson, John M. King and James E. Shigley, which appeared in the Winter 1997 issue of GIA’s Gems & Gemology.
JCK-Jewelers Circular Keystone, 7/7/2009
11 July 2009
Antwerp hopes to keep its sparkle
Antwerp is the capital of the global diamond trade.
Its gripped gently between tweezers and is worth millions in almost any currency youd care to choose.
The stone Im looking at is about the size of a walnut, and its being assessed at a laboratory in Antwerp, Belgium, so it can be given the equivalent of a diamond identity card.
A certificate will be issued confirming authenticity, and recording its essential characteristics, or the 4 Cs: carat, colour, clarity and cut.
I find it difficult to take my eyes off the 30 carat monster, but for the people grading the diamonds its another day at the office, and music from a radio drones on in the background.
Were told later by a diamond dealer that the stone should fetch up to $5m (£3m), and thats wholesale.
Diamond capital
Antwerp has certainly secured its place as capital of the diamond trade - 80% of the worlds rough diamonds and 50% of all polished stones pass through the city. But these are hard times for diamonds.
Philip Claes says the industry is optimistic.
"Diamonds are a luxury product, one of the first things that consumers drop from their list," says Philip Claes of the Antwerp World Diamond Centre (AWDC), which represents the industry.
"We have been hit quite hard by the economic and financial crisis."
In the first four months of this year, imports of uncut diamonds to Antwerp fell by 45% compared to 2008, and exports dropped by 30%. For polished diamonds, import and export volumes were down by 32% and 28%, respectively.
The coming months are very important for Antwerp, as jewellers prepare to buy for the Christmas shopping period.
"50% of all polished diamonds are sold in the US, most of them during that period," Mr Claes tells me.
"The predictions are that it will be better than last year, people are optimistic, but a full recovery wont be before the end of 2010."
We talk as he shows me around the Beurs voor Diamanthandel, one of Antwerps diamond exchanges.
Its huge windows are to catch the clear northern light so traders can assess the diamonds on offer.
Theyve been doing deals at this exchange since 1904, but with some traders now preferring to do business away in company offices its also something of a social club.
The Beurs voor Diamanthandel is an institution based on security and trust.
Looking at the lost property board I see several notices saying "found, one stone". Its apparently all too easy for the occasional diamond to drop from a table unnoticed.
Global competition
Antwerp has had to adapt over the years as globalisation has shaped the industry. In the 1960s the Antwerp area was home to about 30,000 diamond polishers; today there are only 1,000 left.
Traders also use the diamond exchanges as social clubs
Most polishing is now done in other parts of the world where labour is cheaper.
Im taken to the seventh floor of an anonymous looking building in Antwerps diamond district to see how rough diamonds acquire perfect brilliance.
At Meylemans & Somers Diamondcutters it looks and sounds like an industrial process, with half a dozen men bent over noisy polishing equipment.
It takes the polishers, each with at least 10 years experience, about four weeks to make a diamond truly sparkle.
At Meylemans & Somers theyve managed to resist competition from elsewhere in the world because they specialise in polishing large stones.
"Were talking about huge values, so the cost of manufacture is not that important," says Dany Meylemans.
"Of course theres the low cost of India and China, but were sitting in the heart of Antwerp.
"Were very close to the owners, and they see the manufacture and their stones every day, we discuss the process and they can change the plan. When youre in India or China its much more difficult to do this."
Government support
To deal in diamonds you obviously need access to a lot of cash, and with the recession biting the industry has had to develop a new way to secure credit.
Raj Mehta says the industry expects the Flemish government to help.
The banks have now agreed to accept diamonds as collateral so that Antwerps diamond trade can access new credit of up to 1bn euros ($1.4bn; £856m) for two years.
The AWDC has also asked the regional Flemish government to support the trade in the form of a temporary additional guarantee of 200m euros.
"Like in every other industry, governments have come into the picture and have helped industries," says Raj Mehta, senior vice president of the diamond group Rosy Blue.
"Antwerp does deserve help and the industry expects it will come."
Before the crisis, about 8,000 people were employed in Antwerps diamond sector, and indirectly a further 26,000 jobs relied on the trade. Its estimated that about 1,000 jobs have been lost because of the downturn in diamonds.
Mr Mehta stresses that diamonds are an important part of the social and economic fabric of the city. Antwerp has been a trading centre for diamonds for more than 500 years.
"History is very important, the prestige, and theres a lot of employment here," he says.
"To keep a good part of the economy of Antwerp, this [help for the industry] will be an important thing for the government to do."
De Beers first used the advertising slogan "A diamond is forever" more than 50 years ago. "Fewer, better things" is now its message for these straitened times.
BBC News, By Mark Sanders
11 July 2009
The Diamond Trade Week in Review 07/10/2009
RAPAPORT... Global Markets
The market in the U.S. has slowed with the advent of summer vacations. Summer wedding season was driving demand at retail, with wedding bands being the top seller. On the whole, though, retailers are seeing slower traffic. Rounds and cushions in 1.25-2.00 ct., color and near-color, SI-I1, are selling well. Retail demand for princess-cut stones is outlasting current supply as prices have increased for those goods that are left in the market.
In Belgium, the market has picked up slightly but remains relatively slow. Small goods are selling well and there is high demand for rounds of 0.30-0.90 ct., D-H, VVS-VS1, and for 1.00 ct. collection goods. BHP Billiton and Diamdel hosted tenders in the past few weeks whose results indicated continued price increases, although there was some resistance at certain levels, signaling that the rise in prices for rough has started to slow.
The market in Israel is stable but has showed signs of weakening in the past week. Manufacturers are frustrated that polished prices have held steady while those for rough have increased in the past month, cutting into their profits. The items which are selling best are diamonds of 0.50-0.89 ct., H-J, VS2-SI2, while stones larger than 1.50 ct. are moving much less.
The polished market in India has slowed in the past week as buyers are resisting higher asking prices and expecting some price reductions. Large gaps have developed between buyers’ asking prices and sellers’ offering prices. Activity in the local rough market is also slow, although Indian dealers continue to seek out rough. Low liquidity, currency fluctuations and high prices, however, continue to impact transactions in the rough market.
Demand remains strong in China for 0.30-1.10 ct., D-H, VS triple-EX and double-EX goods, with round uncertified stones below 0.20 ct., H-I, SI, also selling well. The market is slow but stable, with little changes from week to week through the summer months. There remain some expectations for price increases in the market following the uptrend seen in the past month.
Shortages continue to plague the market in Hong Kong, and dealers with the right inventory are able to sell their stock easily. Popular items remain 0.50-2.00 ct., G-I, VVS and 0.50-2.00 ct., D-F, SI goods. Trade is generally quiet through the summer months, and little is expected to change until before the September show.
Between the Lines
Petra Diamonds reported that rough prices have increased 25 percent since the beginning of the year, after falling some 65 percent in the fourth quarter and the early part of 2009. The company, which surpassed its production target of 1 million carats in fiscal 2008-09, noted that since April, a degree of liquidity has returned to the market, the mood has improved and “inter-dealer trading, that had become almost nonexistent, has started to pick up.” Petra, a major stake in which is owned by Saudi investment firm Saad, has kept production at near-full capacity and has sold all of its production throughout the crisis.
Junior diamond mining companies have, on the whole, kept their operations closed since the downturn, and it seems that the longer they do so the more attractive their projects become as acquisition targets. Such was the case this week, when BRC DiamondCore sold its South Africa assets to KIG Mining for $11 million. Tenders from the company’s Silverstreams alluvial mine generated approximately $6.5 million in 2008 before operations were suspended in December. The value of diamond-project acquisitions in 2008 fell 73 percent to $210.5 million, offset primarily by Harry Winston’s sale of 9 percent of the Diavik mine. While it remains to be seen whether any of the large operations change hands this year, the trend of attractive smaller development and exploration projects being purchased is expected to continue.
Birks & Mayors followed other major jewelry retailers in posting a 23 percent decline in sales during the quarter that ended March 31, further displaying the poor performance of the jewelry sector during the period. The company said it had lower traffic and price points during the period, which affected the sales total. On an encouraging note, B&M noted, as other retailers did, that the rate of decline has progressively improved in the second quarter and continued to do so in July. The question remains to what extent it has done so.
Members of the Kimberley Process review team to Zimbabwe reportedly accused the country’s state-controlled military and police of being major contributors to the illegal activities, human rights abuses and murders that took place at the Marange diamond fields in 2008. While government officials denied any wrongdoing, Zimbabwe has reportedly committed to withdrawing its troops from the fields. Securities forces opened automatic fire on illegal diggers at the alluvial mine in November 2008, killing 12. Subsequently, guards at the mine were found to be digging illegally. Of concern, however, has been the late reaction of the Kimberley Process (KP) to the events at the mine. While the KP declined to give official comment, the review visit and the Marange discussion should have taken place much sooner than eight months after the incidents. Still, Zimbabwe remains a key test for the Kimberley Process, which increasingly appears to be at a crossroads.
Quote of the Week
As patience is needed during these challenging times, one might remember the advice of self-help author Robert Collier, who said, “Success is the sum of small efforts, repeated day in and day out.”
Diamonds.net - New York,NY,USA
11 July 2009
De Beers Botswana Unit May Restart Orapa 2 Earlier Than Planned
July 10 (Bloomberg) -- Debswana, the joint venture between De Beers and Botswana, said it may reopen its Orapa No. 2 mine earlier than planned to meet growing demand for the gems.
“As demand for rough diamonds from clients has picked up, we are looking at ways to meet that demand,” said De Beers spokeswoman Lynette Gould. One of the options to meet this demand may be to restart operations at Orapa No. 2 “soon,” she said in an e-mailed response to questions today.
“We’ll be able to comment in more detail once these plans are solidified,” Gould said. Debswana said in February it would keep Orapa No. 2 and Damtshaa shut for the rest of the year because of a slump in diamond sales.
The venture restarted the Jwaneng, Orapa No. 1 and Letlhakane mines on April 15 after an extended shutdown from December. Debswana said on June 12 there has been a “slight” improvement in sales of rough diamonds.
Labor unions in Botswana have been told “the chances are high” that Orapa No. 2 may start producing again soon, said Sebataladi Ramoitoi, deputy general secretary of the Botswana Mineworkers Union, in an interview in Jwaneng, Botswana, yesterday. “That is a positive indication.”
Debswana told the labor union that preparations to restart the mine will begin this month, Regent Reid, chairman of the union’s Jwaneng branch, said in an interview.
Bloomberg
6 July 2009
Russia Stockpiles Diamonds
In response to falling global demand, Russia continues production and sells output to the state.
Russias response to the fall in global diamond prices has been to continue production--but to stockpile, rather than sell. This behavior has prompted speculation that the authorities are planning to manipulate international market prices.
In May, it was estimated that the world wholesale market for polished diamonds would fall from $21.5 billion in 2008 to around $12 billion this year.
Most diamond-mining companies responded to the weakness in the market by halting production, in most cases for several months. De Beers, which in recent years has supplied around 40% of the world market, cut its output earlier this year by 91%. The Argyle mine in western Australia, the countrys largest, stopped production, resuming only very recently. Botswanas major mines were closed for three months, putting 4,500 people out of work.
Russian response. The Russian response has been different. From January-May, diamond production was officially reported to have been down only 1.9% compared with the year-earlier period. The new Russian arrangement has been that the dominant producer, Alrosa (which accounts for 97% of Russian output), has been selling a large part of its output to the State Repository of Precious Metals and Precious Stones (Gokhran)--and selling very little onto the world market.
Role of Alrosa. Before other producers closed their mines, Alrosa accounted for about 25% of world output, against De Beers 40%. In recent months, it has become by default the worlds largest producer. Alrosa controls some production in Angola and western Russia, but the bulk of its output comes from the Republic of Sakha (Yakutia) in eastern Siberia. The regional government of Yakutia used to have a great deal of control over the industry, but under Prime Minister Vladimir Putin, the center has--in this as in other affairs--asserted itself. This is reflected in the present ownership structure of Alrosa:
--The company is state-owned and is therefore subject to direct state supervision. The main direct link is with the Ministry of Finance (MinFin): Finance Minister Aleksei Kudrin chairs Alrosas supervisory board.
Forbes - NY,USA
6 July 2009
The Diamond Trade Week in Review 07/03/09
RAPAPORT... Global Markets
The U.S. market slowed again this week due to the July 4th long weekend and jewelers starting their summer vacations. The market is still being driven by bridal goods, and the bread-and-butter engagement stones are selling best. There is short supply of princess cuts over 1.00 carat, but there are reports that cutters are now beginning work on these goods. Melée dealers, particularly Indian buyers, seem anxious for goods.
The market in Belgium has slowed in the past week, softening the mood slightly after a positive Hong Kong show. While activity is low, rounds of 2.00 ct., G, VVS remain the hot item, with 0.50-2.00 ct., D-H, VS goods also selling well. There is also good demand for collection fancy goods above SI clarities. Princess-cut, 1.00 ct., D-F, VS stones are also in demand. Dealers are expecting further increases in rough prices with the start of the BHP Billiton tender in Antwerp this week.
The market in Israel has been slow but stable since the Hong Kong show. Buyers have become fussier about the goods they are seeking, indicating some oversupply in the market. Buyers are asking for triple-EX goods with no fluorescence, and stones that are not perfect are becoming very difficult to sell. Manufacturers are expanding the range of their portfolios, moving to new commercial sizes where the demand lies. They are also exploring new jewelry and retail avenues to help boost revenues. Demand remains relatively good for 0.50-1.50 ct. H-I, SI+ stones.
Shortages continue to plague the market in India even though local demand for polished goods remains soft. Activity has been slowed by higher asking prices for polished stones, and the volatile rupee-dollar exchange rate is affecting activity in larger-size items. The local rough market remains slow, due to continued liquidity issues and manufacturing units operating well below full capacity.
In China, the wholesale market is slow but steady, with no major holidays coming up in July to boost sales. Demand and prices for 0.30-1.10 ct. D-H, VS, triple-EX and double-EX goods remain relatively strong, while sales of triple-VG goods are stable. Round, uncertified stones below 0.20 ct., H-I, SI are also selling well. Suppliers are expecting prices to rise after seeing an upward trend in the market over the past month.
The Hong Kong market has slowed after the hype of the June show that ended last week, and as things taper off in the summer months. Traditional Hong Kong goods of 0.50-2.00 ct., G-I, VVS and 0.50-2.00 ct., D-F, SI remain in demand. The market is expected to remain quieter until the end of August when activity usually increases in anticipation of the September show.
Between the Lines
There has been some talk in the past few months of ALROSA replacing De Beers as the number one diamond producer. The claim is based on first-quarter production figures, in which De Beers saw a 91 percent drop in output as the two companies adopted different responses to the economic crisis. While De Beers cut production to level with lower demand, ALROSA kept production at near-normal levels and kept sales up by selling to government agencies rather than solely to the market. In such an environment, one needs to take a long-term approach and look at reserves rather than actual production to determine which company is the biggest, if such a determination is really at all important. By this measure, De Beers continues its reign as the largest.
Nevertheless, De Beers production outlook continues to be weak as Namdeb, its joint venture with the Namibian government, forecast that production will drop 63 percent to 800,000 carats. The company lowered its estimate from the declines of 48 percent and 60 percent it predicted in February and April, respectively. The main cause of the decline has been the three-month production break that was implemented, which comes to an end this week. A company spokesperson was quoted by AllAfrica as saying that, “while the return to production is a positive sign for future growth, a return to pre-crisis levels is still a long way off.” Of primary concern is the fate of the 11 manufacturing companies that were set up to ensure the effective beneficiation of the country’s diamonds.
India’s diamond manufacturing companies have had a tough time in the past nine months as they cope with the effects of the recession. However, a closer look at the 10 companies listed on the Bombay Stock Exchange (BSE) that are covered by Rapaport News indicates some solid sales growth overall during the year that ended March 31, 2009. With the exception of three companies, all of them posted sales increases, and only Suashish Diamonds experienced significant double-digit declines. Most of these companies have diversified into jewelry manufacturing and retail, a move which appears to have paid off. Sales were boosted across the board by the companies’ respective jewelry divisions, while their diamond units’ sales were relatively slack. Despite the positive sales trends, profits remained in a downtrend, as expenses generally increased in line with sales.
U.S. June unemployment figures released this week gave a clear indication that the recession is far from over. The data showed that 14.7 million people in the U.S. are currently unemployed and that the unemployment rate has reached 9.5 percent, its highest level in 26 years. The economy lost 467,000 jobs during the month. Concurrently, consumer confidence weakened in June according to a poll by the Conference Board. The Board’s director summed it up best, saying, “The decline….caused by a less-favorable assessment of business conditions and employment, continues to imply that economic conditions, while not as weak as earlier this year, are nonetheless weak.”
Quote of the Week
“Not only our future economic soundness but the very soundness of our democratic institutions depends on the determination of our government to give employment to idle men.”
Franklin D. Roosevelt (1882-1945) 32nd President of the U.S.
Diamonds.net - New York,NY,USA
6 July 2009
Kevin Jonas Proposed With 3 Carat Diamond Ring
Kevin Jonas got engaged to girlfriend Danielle Deleasa last Wednesday and now a picture of the ring has been released.
The Jonas Brothers singer designed the platinum, 3 carat, cushion cut diamond ring with Jacob and Co. The band of the ring is covered in two rows of round pave diamonds. See a picture of the ring in the photo gallery below.
Jonas proposed on the doorstep of Deleasa’s New Jersey home Wednesday morning. Deleasa, 22, tells People magazine about the moment she realized what Jonas, 21, was doing. “I didn’t see the ring for a while because I couldn’t believe what he just asked me. I was looking at him, like, ‘Are you serious?’ When he pulled out that ring, I was like ‘Oh gosh.’ I said something like ‘Oh my God,’ and then I started crying,” she says.
No wedding date has been set yet.
TransWorldNews (press release) - Monroe,GA,USA
29 June 2009
Argyle diamond mine back in production
After three months of not processing a single diamond, Australias largest diamond mine, is now back in production.
The Argyle mine in Western Australias far north stopped producing to avoid low diamond prices, but was able to keep the majority of employees working, spending $9 million on upgrading its processing plant.
General manager of production, Maryanne Kelly, says Argyle is in a better position to take advantage of higher prices, which she says are just around the corner.
"Were starting back up because we want to put diamonds back into the marketplace in a more controlled manner, so were actually feeding some of our lower grade material to use it up during tough times," she says.
"It (the lower grade material) has to go through the processing plant at some stage.
"Well feed it through sooner rather then later to enable our plant to run at full production, so that when the price returns mid to late next year, well be able to feed higher grade material and get a better price for our diamonds."
ABC Online - Australia
25 June 2009
Recession takes the sparkle out of Antwerps diamond quarter
Orthodox Jews have controlled the diamond trade since the turn of the 20th century. Despite rising nationalism, they have no problems in the Flemish quarter.
A young woman strolled into the small, secured office where 15 government officials and customs officers were seated under notices demanding silence. She carried a brown envelope, which an official sliced open with a Stanley knife. The spilled contents revealed a twinkling pile of polished carbon. The desk sparkled with hundreds of tiny gems, worth a small fortune.
Another man walked into the same office and set down two stones. They were bigger diamonds; one worth $1.5m (£918,00), the other $950,000.
It is a routine scene, repeated dozens of times every day in Antwerps square mile – three main streets and a warren of alleys behind the Flemish ports central railway station. This is where diamonds for export are officially scrutinised, a considerable feat given that $200m worth of gems leave the city every day.
"This is what puts Belgium on the map," said Freddy Hanard, the chief executive of the citys World Diamond Centre. "Every diamond that enters or leaves passes through this office."
That is a lot of gems – four out of five uncut diamonds produced anywhere in the world and more than half of the polished stones travel from Australia, Russia, Canada, India, Botswana and London to Antwerp for buying and selling.
Outside, a female police officer with an automatic machine gun appeared relaxed as a Brinks armour-plated van disgorged its treasure trove. There were no other vehicles. For what appears as a normal city centre pedestrian zone is, in fact, probably the most heavily protected and closely monitored concentration of wealth in Europe – Antwerps diamond quarter.
But with Europe and America in recession and much of the rest of the world also feeling the pinch, diamonds are suddenly no ones best friend.
"January, for example, is usually busy, but this January there was no market any more," said Hanard, a former banker. Philip Claes, the diamond centres corporate affairs officer, said production worldwide has almost totally ceased, down 91% year on year.
You can see the impact in the long, luminous hall of the elegant main diamond exchange, built by the citys Jewish community at the turn of the 20th century. In good times, the place bustles with business, eyeglasses scrutinising the trays and pads of stones by the pure northern light. This week, the exchange was more a place to go to trade gossip.
The recession is clearly affecting the wealthy. The banking crisis has also compounded the problem since diamond dealing in Antwerp is a capital-intensive business, requiring liquidity and lines of credit from the five banks that grease the deals. They are no longer lending like they used to.
"We feel it right across the industry," said Karin de Mulder, spokeswoman for the Antwerp diamond business. "A lot of people are being fired."
Hanard said that rough trade, dealing in uncut diamonds, has collapsed by 60% in Antwerp over the last year, while the buying and selling of polished gems has decreased by up to 40%.
De Beers, the worlds biggest diamond producer, halted mining at the beginning of the year. Alrosa of Russia, the second-biggest, followed suit.
All this is taking its toll on the square mile, where turnover in diamonds averages $42bn a year, with 1,800 dealers crammed into an area that takes 10 minutes to explore on foot.
The businessmen are placing their faith in the tilting balance of power and economic clout in the world, reflected in patterns of global consumption. The US is currently the biggest market for diamonds, with gem-studded "tennis bracelets" selling well among the bling generation. But Antwerp is looking to the Middle East, India and China as the key to the revival of a trade that started in the 16th century.
In the car-free square mile, though, the Homburg-hatted Orthodox Jews who have controlled the trade for the last century still dominate the streets, carrying black briefcases chained to their bodies in and out of the bank vaults and office safes. It is probably the only quarter in Europe where the language most commonly heard is Yiddish.
The streets are criss-crossed by surveillance cameras, uniformed and plainclothes police abound. The magnetic, heat, movement, and sundry other sensors installed behind the thick steel doors are as sophisticated and as expensive as they get. But they failed to prevent two daring raids in 2003 and 2007, the first by Italian criminals netting €100m worth of gems, jewellery and cash, the second theft grabbing €20m worth.
Nonetheless, confidence is such that the streets are full of people carrying millions of dollars worth of stones and jewellery around in envelopes, plastic bags, and suitcases.
There are problems in Antwerp with Flemish nationalists, who hate immigrants and distrust foreigners, and in Belgium generally there are problems regarding the hostility between its Dutch-speaking north and French-speaking south.
Given that the diamond trade is dominated by minorities such as Orthodox Jews, Indian Jains, Maronite Christians from Lebanon and Armenians, friction with nationalists might be expected. But that is the least of Hanards troubles.
"There are no tanks on our borders. Our hotels are not being bombed. Theres no revolution next door. Theres political stability. And people are not upset with diamond traders."
guardian.co.uk, Tuesday 23 June 2009 19.34 BST
22 June 2009
De Beers Penny: Early signs of recovery
Ramat Gan, Israel--The Israel Diamond Institute Group of Companies (IDI) teamed up with De Beers for Israels first-ever "Diamond Town Hall Meeting," an open discussion inviting members of the Israeli diamond industry to ask questions and exchange views with the management of the rough-diamond giant.
IDI Chairman Moti Ganz hosted the June 18 event with De Beers Group Managing Director Gareth Penny and Diamond Trading Co. (DTC) Managing Director Varda Shine, with hundreds of Israeli diamantaires in attendance.
Industry expert Chaim Even-Zohar moderated the meeting, and Shine delivered opening remarks, saying, "This is an industry that is highly adaptive and adept at finding new ways to succeed. Innovation is part of the DNA of our industry."
Penny delivered a presentation in which he described the current economic situation as contributing to "extraordinary times, which require extraordinary action." He said that over the past 120 years, the diamond industry has proven its resilience, and he noted that after every recession the diamond industry has experienced an immediate resurgence.
Penny spoke on the outlook for the industry, saying that there have been early signs of recovery given that there is an increased demand for rough. Looking forward, he said he believed that the upcoming holiday season would be ahead of last year, but that it might take until the 2010 holiday season to reach former levels.
One issue that arose during the question-and-answer period was on the topic of DTC rough supply for non-sightholders, to which Penny confirmed that De Beers is still committed to supporting non-sightholders through Diamdel, part of the De Beers Group.
"This meeting is an additional step in IDIs broad-based efforts to support and promote the Israeli diamond industry during this difficult time," Ganz said. "The event testifies to the importance and vitality of Israel as a world-class diamond center. There is no doubt that this meeting offers an important opportunity to raise issues and to receive answers to the questions regarding pertinent issues facing the industry at this time."
National Jeweler
22 June 2009
Zalemark Designs, Donates Diamond Pendant for Rolls-Royce Owners Club
RAPAPORT... Zalemark Holding Company donated a custom-designed diamond and gold pendant to the Rolls-Royce Foundation. The pendant, which features the Rolls-Royce Owners Club logo, will be auctioned off at the Rolls-Royce Owners Club National Meet on June 20, 2009, in New Orleans, Louisiana.
Steven Zale, Zalemarks creative director, stated, "The diamond and gold pendant was developed for individuals who have a passion for fine motorcars. We hope that our unsurpassed quality, award-winning designs and commitment to style, like these fine motorcars, will communicate luxury and elegance."
Diamonds.net - New York,NY,USA
22 June 2009
The Diamond Trade Week in Review
Global Markets
Wholesalers and retailers in the U.S. are finding it difficult to find 0.90 to 1.50 ct. princess cuts, as supply is drying up. With relatively strong demand, there is very little in the way of VS2, D-I goods on the market, due to the lull in manufacturing during the first quarter. In rounds, bread-and-butter goods below a carat are still moving. There is also some movement in the larger items. Retailers report seeing more action in the past month, and they are starting to sell jewelry again. Discounts continue to tighten as prices edge up, with melees back at pre-December levels.
There is more movement of goods in Belgium. Dealers went to the Hong Kong June show hopeful of finding success. There is high demand for rounds, 1.00 ct., D-I, VS-SI. There are also many requests for round, 1.00 to 3.00 ct., D-J, VS-SI goods. Large sizes above 5.00 ct. are still difficult to sell. Princess cuts are emerging as the new hot item. The rough market is being spurred by Indian companies that are keen to buy as manufacturing increases on the subcontinent.
The market in Israel remains stable, although diamantaires are growing skeptical as rough prices increase while polished prices hold firm. There is good demand for round, 0.50 to 1.50 ct., H-K, SI stones, which moved well at JCK. Goods up to 0.70 ct. that are suitable for the jewelry market are also enjoying good demand, with some short supply of D-E colors. Demand for 2.00 ct., D-H, SI1+ stones is starting to improve. In preparation for the Hong Kong June show, L-M colors in white VS2+ clarities moved to the Far East. The market for large stones is sporadic, but generally quiet.
In India, manufacturers are eager to buy rough, as their factories have resumed after the summer vacation and the market has shown signs of life. Workers are still cautious about returning from their rural homes, however, out of fear of another downturn. Demand for rough in India is strong, despite recent price increases, particularly for goods that will polish into -0.01 stars or melees above 1.00 ct., I+, VS+. Demand in the polished market is being restricted by uncertainty about the availability of popular items. There is better demand for goods below 1.00 ct., SI-I2. There is growing demand for princess-cut stones, which are in short supply, as Indian manufacturers stopped production of these over the past two years.
The wholesale market in China is slow but stable, as June is traditionally a quieter month. Fewer buyers from mainland China attended the Hong Kong show. There is small but reasonable demand for round, 1.00 ct., J-L, SI2-I1 goods as promotional items. International certificates such as those of the Gemological Institute of America (GIA) or the International Gemological Institute (IGI) are usually not required for such goods, but retailers tend to request certification from local laboratories. Prices for triple-EX and double-EX goods with GIA certificates remain strong, and demand for these items is consistent.
Dealers came to the Hong Kong June show seeking an opportunity to meet with partners and test the market rather than to buy. The show, which started Wednesday, is considered less important than the larger March and September shows. Nevertheless, buyers are interested to see how the Hong Kong market is developing since demand has picked up. Prices are strengthening for rounds and fancies, although wholesalers and retailers have not yet adjusted to these new levels. While they could get good discounts on stock two to three months ago, that is not the case today. Demand for rounds is strengthening due to the lack of nice goods on the market, and only those who are willing to pay can find the goods. There is demand for VS-SI triple-EX goods.
Between the Lines
There was a surge in demand for rough diamonds at the De Beers Diamond Trading Company (DTC) June sight, which was valued at an estimated $425 million, up 70 percent from the previous sight. Similar reports filtered in from the BHP Billiton tender last week, where prices are said to have increased 10 to 15 percent from a month ago. The rush for rough has raised concerns, since the retail market remains stagnant. Sightholders have either depleted existing inventories or are buying while they can, as De Beers production shortages are still expected. DTC also benefited from the fact that Russian miner ALROSA and Angola’s Endiama have been staying out of the market. The question is what will happen when these companies start selling again in the next month or two? The bottom line is that if we don’t see similar movement at the consumer level, the current wave of confidence may be leading to disappointment.
De Beers held its second “Town Hall Meeting,” its series of discussions with the industry, in Ramat Gan. Gareth Penny, managing director, observed that the industry may be on its way out of the crisis, but with “great caution.”He reasoned that consumer confidence is rising, polished prices are stable, demand for De Beers rough has improved and production at mine has resumed. “We have returned to more normal levels in the market where rough and polished is better aligned,” Penny said. He added that De Beers is expecting Christmas to be in line with if not better than last year.
Finlay Enterprises is emerging as the jewelry retailer that epitomizes the new economy in the U.S. as it seeks to completely restructure its business model and drastically cut sales while remaining in business. The company is in the process of exiting department store counters and closing nearly half its specialty stores in 2009, as it moves to sell fewer low-price-point items — the average price per item at Finlay’s department store counters was $270, while at its stores it was $1,275. The company saw its sales increase 12 percent to $159.3 million in the first quarter ending May 2, boosted by liquidation sales at its department store counters. More telling was the 20 percent drop in sales at its specialty stores to $62.5 million, a decline that was in line with other retailer’s results for the period. The company’s net loss grew from $11 million a year ago to $28.7 million due to higher expenses and costs of managing debt. By the end of its implementation of its strategic plan, Finlay’s sales will fall from $750 million in 2008 to less than $200 million — a move necessary for it to “continue as a going concern,” the company explained.
The auction market continues to surprise after a successful jewelry sale at Christie’s New York. The auction sold 91 percent by lot, for total sales of $11.4 million. The highlight was a pear-shaped, 6.29 ct., fancy intense blue, IF diamond which sold for $3.5 million, or $565,000 per carat. The auction house said that following its Hong Kong and London sales, the New York auction “reaffirmed the strength of the jewelry market.”
The directors of Rockwell Diamonds again escaped a bid by Pala Investments to oust them, after shareholders voted to keep John Bristow, the chief executive officer (CEO), and two other directors in their roles. Pala, which owns nearly 20 percent of Rockwell, has tried before to shake things up at the diamond mining junior, with no success. With a deflated share price and depressed diamond sales, the pressure will now be on Bristow & co. to bring results. If not, it may be “third time lucky” for the company’s largest shareholder to finally take over.
Quote of the Week
As the recession continues despite rising confidence in the diamond market, we encourage diamantaires to continue their battle through tough times and note the advice of American poet Robert Frost, who said, “The best way out is through.”
Diamonds.net - New York,NY,USA
15 June 2009
India Sees Slight Recovery in Diamond Industry
ndias diamond-polishing and fine jewelry-making industry is experiencing a slight relief from the recent economic woes as demand rises from both local and international markets, Business Standard reported.
Over the past two months, demand for rough diamonds has greatly improved, but because diamond miners have significantly slowed production supply of rough diamonds of all sizes have reduced tremendously, creating a supply crunch.
The US market, which was responsible for 90% of India’s diamond and fine jewelry exports, continued to remain a concern for exporters because the it is still in the midst of a deep recession.
However, demand for Jewelry and diamond from the Middle East and China has largely compensated for the drop in demand from the United States market. Demand for jewelry within India has also picked up in the last two months.
Indias diamond and fine jewelry industry employs about 650,000 people, and has re-employed about 10% of the work force it had laid off since September last year.
Israel Diamond Portal, Ramat Gan,Israel
15 June 2009
Interational Diamond Council publishes updated rules
Antwerp, Belgium--The International Diamond Council (IDC) announced earlier this month that is has released an updated version of its "IDC Rules for Grading Diamonds."
According to a press release issued by the organization, the new rules, which outline terminology for both mined and lab-grown diamonds, were updated to reflect the changes brought about by industry-wide consultations on diamond nomenclature.
The updated rules allow grading laboratories to call diamonds that have been grown in a laboratory "laboratory created," "laboratory grown" or "synthetic" when describing a stone that did not come from the earth.
By amending its rules, the IDC incorporates the recently published CEN Workshop Agreement on consumer confidence and diamond nomenclature.
Commenting on the latest revision and its publication, IDC Chairman Stephane Fischler said in the release that it was a necessary step the IDC had to take to amend, correct and make public a number of revisions discussed and agreed upon by the IDC board, but not yet incorporated into the document.
"It is essential that we keep our focus on bringing forward shared and transparent nomenclature, based on technological and other advances in the diamond industry, with the purpose to consolidate the trust of the consumer and help to maintain a stable market for diamonds," he said.
The updated IDC rules will be available for downloading shortly on the IDC Web site, www.internationaldiamondcouncil.org.
Established in 1975, the IDC is a joint committee created by the World Federation of Diamond Bourses and the International Diamond Manufacturers Association to create international rules, working methods and nomenclature for diamonds.
National Jeweler
8 June 2009
De Beers Says Demand for Rough Diamonds Is ‘Picking Up’
June 8 (Bloomberg) -- De Beers, the producer of 40 percent of the world’s diamonds, said demand for rough, or uncut, gems is “picking up.”
Managing Director Gareth Penny said retail sales are also showing an improvement. The comments were released today in a statement from Antwerp World Diamond Centre after he spoke at a conference on June 3.
Bloomberg
7 July 2009
Harry Winston optimistic on sustained diamond market gains
TORONTO (miningweekly.com) – Diamond-miner and high-end jewellery retailer Harry Winston is confident it will find itself in “much better shape” at the end of the current year than the one just past, CEO Robert Gannicott told shareholders on Thursday.
After the worst of the financial crisis hit in late 2008, the diamond market “disappeared”, he said at the companys annual meeting in Toronto.
For both rough and polished diamonds "there was simply no demand", Gannicott said.
Now, however, the firm, which owns a stake in the Diavik mine, in Canadas Northwest Territories, is optimistic that the recent uptick in prices and demand for rough diamonds will be sustained.
The company markets its own share of rough diamonds from Diavik, and buys polished diamonds separately for its high-end jewellery and watch business.
After posting a first quarter loss for the period ended April 30, and significantly weaker sales compared with a year earlier, Harry Winston is expecting improved numbers when it reports on the second quarter, as rough diamond prices creep back and customers return to the firms retail stores.
Diamond processing and jewellery manufacturers froze purchases and emptied stocks last year, but are now returning to the market as positive demand from Asia coupled with the first signs of activity from the US market have encouraged manufacturers to begin restocking.
Since March this year, there has been a “different sentiment” in the diamond market, compared with the November to January period, Gannicott reported.
“And I think that there is a reasonable expectation that diamond prices will continue to recover.”
Any economic improvements in the US will inevitably be good news for the diamond sector, he added.
“America is far more important to the world of diamonds, for instance, than it is to the world of copper or iron-ore.
“Fifty per cent of the worlds offtake of diamonds was going into America, before this crisis hit, whereas China was already the biggest consumer of copper, and by far the biggest consumer of iron-ore.”
DIAVIK
Diversified miner Rio Tinto, which owns 60% of Diavik and is the mines operator, said earlier this year that it will shut the mine for two periods this year - first for six weeks from July 14, and then again in winter for the same period – because of weak market conditions.
But Gannicott said on Thursday that, while the July shutdown will definitely be implemented, the mid-December to end-January stoppage could be scrapped if demand continues to recover.
“Personally, I think the second shutdown is unlikely to occur, but there has been no real decision on that yet.”
Although it will delay a project to develop an underground mine at Diavik, Rio Tinto has drawn up a mine plan that will enable it to adjust carat production by varying the mix of ore that comes from the A-418 kimberlite pipe and the higher grades from the A-154 South pit.
This year, the base case plan would result in production of 5,4-million carats, including assuming both shutdowns are implemented.
However, if diamond demand and prices improve, additional carats can be produced by shifting the mix of ore from A-418 to the higher-grade A-154 South.
For the quarter ended April 30, Harry Winston reported rough diamond sales of $57,7-million, compared with $81,4-million a year earlier.
Rough diamond prices were at their lowest level since Diavik began operation, and the companys achieved prices were particularly low in the first quarter because the sales mix contained a significant proportion of lower-value goods carried in inventory from January, the firm said.
Harry Winston, formerly known as Aber Diamonds, bought high-end jewellery retailer Harry Winston in 2006.
In March, Harry Winston agreed to sell 19,9% of itself, plus an effective 15% interest of the Diavik diamond mine, to Canadian gold-miner Kinross, for $150-million.
The transaction allowed Harry Winston to repay all the senior debt it had in place related to its mining division.
Shares in the company rose 1,8% on Thursday, to C$7,40 apiece by 12:22 in Toronto.
Creamer Medias Mining Weekly - Garden View,South Africa
7 July 2009
Brad Pitt gives daughter diamonds
Los Angeles, June 4 (PTI) Recession seems an alien word for Hollywood star Brad Pitt who gifted his daughter Shiloh two diamond and platinum necklaces for her third birthday.
Angelina Jolie and Pitts three-year-old daughter celebrated her birthday on May 27 and and the Curious Case of Benjamin Button star surprised the tiny tot with priceless gifts from designer Neil Lane, including a 1.5-carat chain worth a whopping USD 15,000, Us magazine online reported.
The 45-year-old star did not forget his superstar partner at this occasion and bought her a bracelet decorated with mini gold and diamond jet planes.
Press Trust of India - New Delhi,India
7 July 2009
De Beers ramps up diamond output
ANTWERP, Belgium (Reuters) - Diamond inventories have fallen to levels justifying a ramp-up of production with signs that the key Christmas sales season will be better this year than last, according to the head of De Beers, the worlds largest diamond group.
Gareth Penny told a meeting of diamond dealers in Antwerp that rough stocks were 20-30 percent down from mid-2008 peaks.
"There is clear evidence that rough (diamond) stocks have come down to reasonably acceptable levels... I am hearing that more rough needs to come into the system," he said.
De Beers, 45 percent owned by mining conglomerate Anglo American PLC, slashed production in the first quarter by 90 percent from the last three months of 2008 and by 91 percent year-on-year.
But the diamond group, which has 41 percent of the rough market, has hiked output in the second quarter with the restart in April of the major Debswana mines, which accounted for over 65 percent of De Beers production in 2008.
Penny said mining at the Debswana sites in Botswana was now pushing above 80 percent of capacity.
Demand for polished diamonds has fallen by as much as 30 percent and for rough diamonds by as far as 60 percent from mid-2008 peaks.
However, De Beers believes that consumer demand for jewelry is down a more modest 10-15 percent and has actually risen in China.
"This is not a 50-60 percent drop-off," Penny said.
De Beers noted that polished prices had stabilized in March and April and believes retailers should have worked through excess stocks by the first half.
"December, Christmas of 2009 will be better than December, Christmas of 2008. I think thats a pretty reasonable assumption from where we are sitting now," Penny said late on Wednesday. His comments were cleared for the media on Thursday.
"Stock markets are up, U.S. confidence indices are improving. There are a number of drivers suggesting that."
For the dealers, the hottest topic was whether De Beers would be increasing prices at monthly "sights." For them, a spread between rough and polished prices is crucial.
Rough prices fell by 30-70 percent from mid-year peaks in 2008, far more than the 20-30 percent decline of cut diamond prices.
"We would expect similar levels of magnitude to polished. We will continue to be prudent so we will show moderation," Penny told the audience, but added prices must be "aligned."
De Beers chose Antwerp for its first town hall meeting, given the Belgian city handles about 80 percent of all rough stones and over half of polished diamonds. It plans further meetings in Israel later this month and in Mumbai in July.
Reuters
3 June 2009
World diamond body acknowledges some recovery
In what could be an early sign of recovery for Botswanas diamond industry and the economy at large, diamond prices and sales appear to be stabilising with consumers slowly coming back on board, says the President of the World Federation of Diamond Bourses (WFDB), Avi Paz.
Botswana, whose export revenues are projected to go down by more than 50 percent this year due to a slump in the diamond market, will benefit immensely if a recovery came sooner than earlier anticipated.
In a note published on the WFDB website, Paz says the diamond industry is resilient and will survive the global economic crisis.
Botswana, whose diamonds made up 65 percent of its exports in 2008, has sold few gems since November last year. Diamond revenues have hitherto given the country one of Africas largest fiscal surpluses, but the market slump has resulted in an unusual budget deficit for 2009/10.
After five years of an average of 4.4 percent growth, experts now estimate Botswanas economy to contract by 5.2 percent through to this month and 6.2 percent in the 12 months after that, according to Moodys Investor Service.
The countrys Aa3 credit rating, the highest in Africa, is under threat if the government fails to rein in expenditure. Already Moodys and Standard & Poors have cut Botswanas foreign currency rating outlook from stable to negative.
But if a diamond market recovery is on the horizon, the countrys gloomy days will be shortened, giving respite to the government which has vowed not to cut social spending despite reduced revenues.
The worlds biggest diamond miner, De Beers, also reported last April it had begun to see "signs of improvement" on the market, a trend it expected to continue for the rest of this year.
The diamond industry has been one of the worst affected by the global economic crisis, with demand for rough falling sharply since the fourth quarter of last year. Cutters, polishers and retailers responded to the financial crisis by conserving cash and reducing inventory levels, prompting diamond miners to cut production and close mines.
Meanwhile, Paz notes that it is important for the industry to consider how to conduct itself in a recovering market. "Times of upheaval, while clearly complicated, also present opportunities for positive change," he says. "This current crisis is no exception."
This was a "golden chance" for the industry to correct two standard operating procedures that have "placed a tremendous burden" on WFDB members and have had a "devastating effect" on profitability. Paz names these as memo sales and extension of inordinately lengthy payment terms with clients.While memo sales were not a new phenomenon, the industry had become too reliant on it, he explains. Further, rough producers demanded cash for what they sold to WFDB members while retail clients were given "generous" payment terms.
"Add to that the fact that the goods were supplied on memo, and you will realise that a year could pass before you actually (saw) a return on the investment you made when you purchased the rough diamond," he says, adding that WFDB members had become the jewellery sectors primary financier over the past two decades.
However, with the markets in turmoil, this has to change. "The burden of financing the diamond pipeline needs to be more evenly distributed," he notes. "Both the rough producers and the jewellery trade must play a more active role." (Additional reporting by Miningweekly)
Mmegi Online - Gaberones,Botswana
1st June 2009
Natural-color diamonds hold margins, value
Las Vegas--Jewelers looking for a product that sets their store apart and holds its own when it comes to margins might want to try natural-color diamonds, retailers told an audience of hundreds at a breakfast event held on Friday morning during the JCK Las Vegas show.
For the event, titled "The Language of Color," Natural Color Diamond Association (NCDIA) Executive Director Robert May and consultant Diane Warga Arias, of DWA Communications, introduced four retail jeweler panelists, who then spent about an hour sharing stories of selling natural-color diamonds in their stores.
At Wick and Greene Jewelers in Ashville, N.C., owner Michael Greene told the story of a professional athlete who entered his store looking for an anniversary gift for his wife when a display of natural-color diamonds caught his eye.
He gave his a wife a piece showcasing the stones and it was a success, so much so that the wife is now requesting additional natural-color diamond jewelry as a gift to mark the upcoming birth of their first child.
"Natural-color diamonds--they are the ultimate colored gemstones," Greene said.
In addition to being a favorite among customers, natural-color diamonds--unlike colorless diamonds--cannot be shopped on price, Greene said, which allows jewelers to obtain greater margins with these stones.
"There are no Rap lists or other comparative lists for our fancy natural-color diamonds," he said.
Michael Pollack, co-founder and chief executive officer of Hyde Park Jewelers, with stores in Denver, Phoenix and Las Vegas, agrees.
"If you sell something that can be compared, the consumer is going to see if there is a better value out there for them," he said.
Pollack said he sold a customer a five-carat natural fancy yellow diamond ring simply because she fell in the love with the piece and, though she tried, couldnt find anything exactly like it anywhere else.
Pollack also noted that natural-color diamonds hold their value--they have doubled in value every 10 years since the 1970s--and have their place in history.
Recently, a 7.03-carat blue diamond sold at Sothebys set the per-carat record price for a gemstone sold at auction, and some of the worlds best-known diamonds are natural-color stones, including the Hope Diamond, the Tiffany Diamond and celebrity-gifted stones, such as singer Jennifer Lopezs pink engagement ring from ex-fiance Ben Affleck.
The stones also are rare--only one in 10,000 stones that come out of the ground are considered natural-color diamonds.
When asked about how to market natural-color diamonds, retailer Alfredo Molina, of the Phoenix-based Molina Group, said that to sell natural-color diamonds, retailers have to advertise that they carry them.
He said he recently had success advertising a yellow diamond on The Robb Report.
George Walton, of Golden Diamond Co. in Anchorage, Alaska, said that traditional ways of marketing, such as advertising in the newspapers, dont work for natural-color diamonds, just as they dont work for general advertising anymore.
He recommends that retailers "step out of the box" and embrace new forms of advertising when marketing natural-color diamonds.
National Jeweler
1st June 2009
WFDB president sees diamond prices stabilising, market recovering
JOHANNESBURG (miningweekly.com) – Diamond prices and sales appear to be stabilising with consumers realising that the “sky has not fallen”, says World Federation of Diamond Bourses (WFDB) president Avi Paz.
He said in a note published on the WFDB website, that the diamond industry was resilient and would survive the global economic crisis.
The worlds biggest diamond-miner, De Beers, also reported in April that it has begun to see “signs of improvement” in the market, a trend it expected to continue for the rest of this year.
The diamond industry had been one of the worst affected by the global economic crisis, with demand for rough diamonds falling sharply since the fourth quarter of last year. Cutters, polishers and retailers responded to the financial crisis by conserving cash and reducing inventory levels, prompting diamond-miners to cut production and close mines.
Meanwhile, Paz noted that it would be important for the industry to consider how it would conduct itself in a recovering market.
“Times of upheaval, while clearly complicated, also present opportunities for positive change. This current crisis is no exception,” he noted.
This was a “golden chance” for the industry to correct two standard operating procedures, namely memo sales and the extention of inordinately lengthy payment terms with clients, which have “placed a tremendous burden” on WFDB members and have had a “devastating effect” on profitability, he stated.
While memo sales were not a new phenomenon, the industry had become too reliant on it, explained Paz.
Further, he said that rough diamond producers demanded cash for what they sold to WFDB members, but retail clients were given “generous” payment terms.
“Add to that the fact that the goods were supplied on memo, and you will realise that a year could pass before you actually see a return on the investment you made when you purchased the rough diamond,” stated Paz, adding that its members had become the jewellery sector’s primary financier over the past two decades.
However, with the markets in turmoil, this had to be changed.
“The burden of financing the diamond pipeline needs to be more evenly distributed. Both the rough producers and the jewellery trade must play a more active role,” he asserted.
Creamer Medias Mining Weekly - Garden View,South Africa
1st June 2009
Russia Diamond Monopoly Seeks to Avoid Market Flood
May 28 (Bloomberg) -- Russia will avoid flooding the world diamond market, as it did in the 1990s, with the stocks it has been building up since demand slumped last year, the nation’s monopoly producer ZAO Alrosa said.
“The situation is completely different and the mentality changed a lot,” Chief Executive Officer Sergei Vybornov said in an interview. “Nobody wants to destroy the market.”
More than a decade ago, Russia began offloading rough, or uncut, diamonds as its need for hard currency became acute, leading to a rift with distributor De Beers. This time, the state and Alrosa will coordinate to avoid a repetition of events that “crushed the market for a very long time,” Vybornov said.
Polished gem values have fallen by an average 31 percent since peaking in August, according to PolishedPrices.com, as the global economic slowdown prompts consumers to curb spending on luxury goods. Gem Diamonds Ltd., the operator of the Letseng mine in Lesotho, said this month that first-quarter diamond prices collapsed 52 percent from a year earlier.
State-owned Alrosa suspended sales to the market last year, instead shipping gems to government depository Gokhran, Vybornov said on May 26. As a result, the company pared output by about 4 percent, he said, in contrast with De Beers’s 91 percent cut in the first quarter. This year, in a sign of improving conditions, it plans to offer about two-thirds of production to the state.
Other producers are also anticipating a rebound.
Resuming Sales
De Beers, the world’s biggest diamond producer, has resumed operations at a joint venture in Botswana that produces a fifth of global supply after suspending output in February. Gem Diamonds CEO Clifford Elphick said prices rose by “low single- digit percentages” at recent sales, while Petra Diamonds Ltd. chief Johan Dippenaar said declines had stopped.
Alrosa is resuming sales of rough diamonds to the market this month, Vybornov said, with as much as $1 billion going to 15 companies in Antwerp by the end of the year.
That may spur a turnaround in the Belgian city, which handles most of the world’s diamonds, after imports tumbled 45 percent in the first four months. Exports also fell 30 percent, according to the Antwerp World Diamond Centre trade group.
“Prices and sales appear to be stabilizing as consumers realize that the sky has not fallen in,” Avi Paz, president of the World Federation of Diamond Bourses, said in an e-mailed statement from Antwerp yesterday. More than 1,500 international diamond companies have their headquarters in the city in an area called the Diamond Square Mile, which has four diamond bourses.
Seeking Influence
Alrosa may gain influence over the diamond market as a result of Russia’s increased holdings of gems, and buy mining companies that aren’t able to survive independently, including some that may be listed in London and Toronto, Vybornov said.
“It would be a good time for sure to look at possible mergers and acquisitions, but we need first to get a clear vision for the sales,” he said.
“We will have these stocks, huge stocks, after the crisis,” he added. “We will play a definitely much more important role than before.”
Bloomberg
1st June 2009
Christies Hong Kong Jewelry and Diamond Sale Sees Strong Asian Demand
28.05.09, 11:13 / World
Christies Hong Kong Spring Sale of magnificent jewels totaled US$33 million and was 90% sold by lot, 95% sold by value, the auction house announced yesterday.
The top lot of the day was a diamond pendant set with pear-shaped D color, flawless type IIa diamonds of 20.70 cts and 10.02 cts that sold for $3,328,182.
“The May 26th Hong Kong Jewellery auction reaffirmed the unquestionable health and strength of the diamond market with as much as US$111,000 per carat paid for a perfect rectangular-cut diamond of 15.02 cts,” Christie’s said in a statement.
“The 95% sell through rate is further proof of the enthusiasm of Asian collectors for fine gems as well as quality jewels. A packed saleroom with competitive bidding resulted in almost half of the lots exceeding their high estimates,” Vickie Sek, Director of the Jewelry and Jadeite Department, Christie’s Asia, said.
Israel Diamond Portal - Ramat Gan,Israel
27 May 2009
The Bling is the Thing: Diamond Encrusted Nokia E71
Yikers, when I noticed this all I could think about was how much it would cost… and why anyone would buy it.
The folks at Continental Mobiles have listed the super-slim Nokia E71 for sale on their website for £5,999… Oh, did I mention it happens to be encrusted with VS1 Diamonds? Yep, here’s the official description from Continental Mobiles:
Smart, efficient, versatile and discreet. The E71 is a busy executive’s dream PA. With it’s subtle backlit centre key to show you when an event is due or an e-mail has arrived, compatibility with Exchange or your favourite personal e-mail provider such as GMail or Yahoo and a full, responsive and accurate QWERTY keyboard all wrapped up in the slimmest case of its kind, this phone is an immediate “must have” for those on the move.
Finished in VS1 Diamonds, this phone will charm everyone who encounters it and represent you as someone with taste, style and organizational finesse.
If you want one (you’re crazy! ) you can head over to Continental Mobiles for all the details. You’ll have to wait 14-21 working days for delivery, but chances are if you want one of these bad boys… a few weeks’ delay while the device is being ‘hand crafted’ will be worth the wait.
IntoMobile - Los Angeles,CA,USA
26 May 2009
South African Diamond Production to Fall Until 2011, Frost Says
May 25 (Bloomberg) -- Diamond production in South Africa will continue declining until at least 2011 amid expectations that the global economic recovery will be protracted, Frost & Sullivan said.
Output will drop to 12 million carats in 2011, from 15.8 million carats last year, Wonder Nyanjowa, mining analyst at Frost’s Cape Town office, said in an e-mailed report today.
There are “no sharp rebounds expected in the demand for commodities in the near to medium term,” Nyanjowa said.
Bloomberg
26 May 2009
How to Preserve Wealth By Investing In Colored Diamonds
Recent turmoil in the global financial markets has convinced countless investors to explore alternative assets, and smart investors are no longer solely focused on ways to maximize their capital gains. They are all seeking tried-and-true strategies for preserving wealth, and a great many have chosen to invest in natural colored diamonds.
In times like these, investors would be wise to consider alternative assets that provide a reliable store of value. A meaningful capital preservation strategy is the path of the responsible investor during these chaotic times. With this in mind, there has never been a better time to consider investing in rare colored diamonds. Lets explore a few of the characteristics that make natural colored diamonds such an attractive store of value.
Diamonds have an extremely high value in contrast with their diminutive size and weight. A two carat intense fancy yellow diamond is worth approximately $25K, and weighs less than 1/70 of an ounce. If the need ever arose, millions of dollars worth of diamonds could be concealed and transported on ones person. For hundreds of years, diamonds have been used as a medium to discreetly transport wealth across troubled borders. As a wise man once said, wealth knows no borders.
Natural colored diamonds also have a rock solid history of steady price appreciation, which is a very appealing characteristic for the keen investor. Just recently, the Wittelsbach blue diamond sold for $24.3 million at Christies in London, setting a record price for any diamond or jewel sold at auction. An oval-shaped, vivid yellow diamond weighing 36.99 carats, sold at Sothebys New York in December 2008 for $71,870 per carat.
Lastly, demand for fancy colored diamonds has skyrocketed in recent years. This is partially due to consumer awareness regarding the natural rarity of coloured diamonds, for out of 10,000 carats of diamonds mined only one carat will turn out fancy colored; with the rarest colored diamonds being red, blue, green orange and pink. The reality is that supplies of coloured diamonds are decreasing while demand is increasing, resulting in a great opportunity for investors as prices continue to increase.
NuWire Investor - Bellevue,WA,USA
21 May 2009
De Beers taking serious look at diamonds as investment
19 May 2009 London--The drop in traditional demand for diamonds has De Beers taking a "serious look" at an alternative market for the stones--diamonds for investment, a company spokeswoman confirmed to National Jeweler.
De Beers spokeswoman Lynette Gould said over the last few months, a number of people--both representatives of high-net-worth individuals and funds--have approached De Beers expressing interest in investing in diamonds as an asset, likely due to the recent investment boom in commodities.
"These approaches," she said, "have caused us to have a serious look at this opportunity."
Gould notes that while De Beers traditionally has not been interested in diamonds as an investment--fearing that it would cause price volatility and speculation that could ruin the market for the stones as a luxury product--the "changing business environment" has the diamond giant changing its tune.
"Diamonds for investment could offer an, as yet untapped, further source of demand," Gould said.
Goulds response came after an article appeared on Friday in Londons Financial Times, stating that De Beers has launched a "global campaign" to convince investors that diamonds are on par with gold as a safe haven for investment.
Gould, however, stopped short of calling De Beers current interest in diamonds as an investment a "campaign" on the same level as the enduring-value campaign it used to promote diamonds this past holiday season.
"Its just something were looking into, very early days," she said.
She also noted that De Beers "core messages" around diamonds as the ultimate symbol of love and romance arent changing.
"Diamonds are always in fashion, like the little black dress of jewelry," she said. "Theyre elegant and timeless. These are foundations on which our industry is built and should always be front of mind."
National Jeweler
18 February 2009
De Beers woos safe-haven investors
Published: May 16 2009 03:00 | Last updated: May 16 2009 03:00
De Beers has launched a global campaign to convince investors that diamonds are an alternative to gold as a safe-haven investment.
The move is a sign of the pressure on the worlds biggest diamond miner to find new markets following the collapse of traditional sales.
Stephen Lussier, De Beers executive director for corporate affairs, told the Financial Times the group had been approached in the past two months by "half-a- dozen" brokers linked to sovereign wealth funds and wealthy individuals. He refused to identify them but said talks were in early stages.
But analysts and investors said that the closed nature of the diamond market made them a much less attractive option than gold.
Chaim Even-Zohar, an industry expert who runs Tacy, an Israeli diamond consultancy, said De Beers, which is weighed down by $3.6bn of bank debt, has been scouting for new sources of sales because of a collapse in demand which is expected to force the company to cut production by 40 per cent this year.
"De Beers are leaving no stone unturned to find buyers," he said.
The privately-held company, whose biggest shareholders are mining giant Anglo American, the government of Botswana and South Africas Oppenheimer family, had sales last year of $6.89bn.
One emerging markets fund manager, who invests in commodities, said: "When you have people asking questions about golds intrinsic value, its difficult to see a bankable case for diamonds as a store of value."
Brock Salier, mining analyst at Ambrian, a London-based resources investment bank, said the uncertainty that has gripped equity and currency markets had sparked demand for "hundreds of millions of dollars of something they can stick in a vault", such as diamonds. An anonymous private buyer at a Geneva auction this week paid a record $9.5m for a rare blue stone from Petra Diamonds Cullinan mine in South Africa.
But Mr Salier added that diamonds represent a much riskier investment than gold. Unlike the yellow metal the stones, traded through auctions and private tenders, have no public market price and there is no instrument investors can use to hedge against fluctuations.
One Johannesburg mining executive suggested De Beers was targeting Saudi Arabia, which is in the process of creating what could be the worlds biggest sovereign wealth fund.
But De Beers said Gareth Penny, its chief executive, had not had any meetings with the Saudis during a recent visit to the Gulf, "nor are we aware that anyone has made a presentation to them on our ideas".
State-backed funds in oil-rich Middle Eastern nations and Asian exporters flush with foreign exchange cash have been investing huge sums in western assets in recent years but have suffered losses of late, notably in US financial stocks.
"Theyve been so badly burned in equities they are likely to look further afield into holding resources and buying resource companies," said Nigel Rendell, senior emerging market strategist at RBC Capital Markets.
"China has been stockpiling commodities. I wouldnt be surprised if other sovereign wealth funds are doing the same."
But he added: "Diamonds are of limited interest to a lot of people because of the difficulty in buying and -selling. Gold remains the ultimate hedge."
The Financial Times
18 May 2009
De Beers presents diamonds as safe-haven investments
South African diamond-mining giant De Beers, a unit of Anglo American PLC (AAUK), has launched a campaign to lure investors, presenting diamonds as an alternative to gold as a safe-haven investment, according to weekend media reports.
The Financial Times reported Saturday on the companys plan for the campaign, citing company sources, analysts and investors.
According to the report, analysts said, however, that diamonds are less attractive due to the close nature of the market.
Stephen Lussier, De Beers executive director for corporate affairs, also told the Financial Times that the group had been approached by sovereign wealth funds and wealthy individuals in the past two months, but that talks are still in early stages.
MarketWatch - USA
18 May 2009
The Diamond-Covered Blackberry Bold
You might think the diamond-covered phone market had dried up in this economy but companies are still creating them. Luxury designer and jeweler Knalihs Athem has come out with their latest diamond-covered phones: The Diamond Blackberry Bold(BlackBeauty) and The Diamond Nokia 8800 Carbon Arte(SnowWhite). The custom phones can be decorated with pink, yellow, black, champagne and white diamonds and personalized with initials, lucky number, logos and anything else your heart and back account desire. Each one is a custom creation although the Nokia clearly offers more room for stones to be inlaid. The Knalihs Athem Blackberry Bold looks almost modest by comparison with its small rim of diamonds.
Luxist - Santa Monica,CA,USA
18 May 2009
Steinmetz Diamonds Again Adorn Racing Helmets at 2009 Monaco Grand Prix
Steinmetz Diamonds and Vodafone McLaren Mercedes are again teaming up for the Monaco Grand Prix. For the past 4 years, Steinmetz Diamonds has been a partner of the team at the Monaco Grand Prix.
In 2008, Steinmetz and the Vodafone McLaren Mercedes team cooperated to produce each driver’s signature set in Steinmetz diamonds. This year Steinmetz has worked closely with drivers Lewis Hamilton and Heikki Kovalainen, to create their own diamond-studded and personalized race helmets.
The Steinmetz helmets have been crafted by experts to display Lewis Hamilton’s #1 and Heikki Kovalainen’s # 2 positions with Steinmetz diamonds inscribed with the Forevermark hallmark. Hamilton was crowned World Champion in 2008.
Martin Whitmarsh, team principal of Vodafone McLaren Mercedes, stated: "Vodafone McLaren Mercedes are delighted to announce the continuation of their successful partnership with Steinmetz Diamonds. Being creators of the world’s finest diamonds, Steinmetz fit particularly well in our world-class partner portfolio and we are looking forward to a long and productive cooperation with them. “
Marketing Director of Steinmetz, Lior Levin, noted: "We’re looking forward to the Monaco GP as always this is the main event of the season; we hope that Lewis and Heikki will outshine the diamonds in their helmets."
Israel Diamond Portal - Ramat Gan,Israel
18 May 2009
Mariah Carey Sports Her Finest Diamonds At Cannes Film Festival
Mariah Carey donned some of her finest diamonds to attend the premiere of her new film in Cannes today (May 15).
The actress, who stars as a social worker in Precious, emerged outside her hotel this morning wearing an eye-catching full length ivory-coloured gown.
Mariah, whose face was hidden behind sunglasses, finished off the outfit with an ensemble of diamonds, including two rings and a pair of hoop earrings.
Precious, which also stars singer Lenny Kravitz, sees Mariah play a social worker in New York Citys Harlem district in 1987.
The singers character, Mrs Weiss, cares for a teenage girl who falls pregnant for a second time at the age of 16.
The film is in the running for the Un Certain Regard award, which recognises unusual and original films.
The Cannes Film Festival kicked off earlier this week with the premiere of 3D animation Up.
Entertainmentwise - London,UK
13 May 2009
Rare blue diamond sells for record $9.5 million
GENEVA (Reuters) - A flawless vivid blue diamond weighing 7.03 carats sold on Tuesday for a record 10.5 million Swiss francs (6.2 million pounds), the highest price paid per carat for any gemstone at auction, Sothebys said.
The rectangular-shaped blue stone, the rarest to enter the international market this year, went to an anonymous buyer bidding by telephone after hectic bidding see-sawed between two callers for 15 minutes.
It was the centrepiece of its semi-annual sale in Geneva, conducted by David Bennett, chairman of Sothebys jewellery department in Europe and the Middle East, who said the results showed the markets resilience despite the economic downturn.
"This is already a new world record price for a fancy vivid blue diamond and a new world record per carat for any gemstone (at auction)," Bennett told reporters.
"It is fantastic in this market and shows that these rare things are very much in demand," he said.
The final price includes a commission paid by the buyer to the auction house. The stone sets a record price per carat for any gemstone sold at auction of $1,349,752, (890, 275 pounds) Sothebys said.
The previous record price for a fancy vivid blue diamond was $7.9 million, including commission, for a stone weighing 6.04 carats at sale in Hong Kong in October 2007, also by Sothebys.
The new owner will have the right to name the stone, which is mounted in a platinum ring. The pre-sale catalogue estimate was 6.8 million to 10 million francs, excluding commission. The hammer price excluding commission was 9.3 million francs.
It was put up for sale by London-listed Petra Diamonds, which extracted it last year from the historic Cullinan mine in South Africa, the worlds most regular supplier of blue diamonds of size and quality. Blue are the rarest of the diamond family after reds.
"To have a stone mined last year and cut the early part of this year so it is absolutely virgin coming straight from the mine has never happened before," Bennett said. "This is one of the extremely rare substances in our universe."
The sale fetched a total of 39.5 million swiss francs for 266 lots which found new owners, while another 80 pieces were stranded on the block.
"In this general economic environment to see $35 million worth sold in a session shows a lot about the resilience of fine jewels no matter what the climate," Bennett said.
Fresh stones to the market, including coloured diamonds, fetched good prices, the Briton said.
Reuters
13 May 2009
Wealthy consumers choose Graff as best luxury jewelry brand
NEW YORK, USA, 13 May – The Luxury Institutes 2009 Luxury Brand Status Index (LBSI) survey conducted among wealthy customers found that the Graff jewelry brand was the "Best of the Best" among 21 luxury jewelry brands.
The annual report surveys rich consumers in order to identify the top luxury brands in a range of categories.
Graff received a score of 7.88 out 10, while Harry Winston received 7.51 and Buccellati got 7.49.
The participants were asked to rate luxury brands based on four criteria: consistent superior quality, uniqueness and exclusivity, making the consumer feel special across the entire experience and being consumed by people who are admired and respected.
Consumers who selected Graff said the luxury jewelry brand’s products were "large and understated, but offer beautiful diamond jewelry" with "ultimate quality and design."
"Today, as even the ultra-wealthy have reassessed their priorities and values, it is critical to deliver extraordinary customer experiences beyond the design, quality, craftsmanship and heritage of a luxury brand," said Luxury Institute CEO Milton Pedraza. "Ultra-wealthy and wealthy consumers tell us that the customer service, and the people who deliver it, leave a great deal to be desired, and few luxury brands are heeding the warning.”
A service of the Antwerp Facets News Service (AFNS).
12 May 2009
Russia Stockpiles Diamonds, Awaiting the Return of Demand
MOSCOW — The global recession sapped demand for all kinds of commodities — like steel and grain — yet small burlap bags are still arriving by the planeload at Russia’s state-owned diamond company.
Each day, the contents of the bags spill into the stainless steel hoppers of the receiving room. The diamonds are washed and sorted by size, clarity, shape and quality; then, rather than being sent to be sold around the world, they are wrapped in paper and whisked away to a vault — about three million carats worth of gems every month.
“Each one of them is so unusual,” said Irina V. Tkachuk, one of the few hundred people, mostly women, employed to sort the diamonds, who sees thousands of them every day.
“I’m not a robot. I sometimes think to myself ‘wow, what a pretty diamond. I would like that one.’ They are all so beautiful.”
It could be years before another woman admires that stone. Russia quietly passed a milestone this year: surpassing De Beers as the world’s largest diamond producer. But the global market for diamonds is so dismal that the Alrosa diamond company, 90 percent owned by the Russian government, has not sold a rough stone on the open market since December, and has stockpiled them instead.
As a result, Russia has become the arbiter of global diamond prices. Its decisions on production and sales will determine the value of diamonds on rings and in jewelry stores for years to come, in one of the most surprising consequences of this recession.
Largely because of the jewelry bear market, De Beers’s fortunes have sunk. Short of cash, the company had to raise $800 million from stockholders in just the last six months.
The recession also coincided with a settlement with European Union antitrust authorities that ended a longtime De Beers policy of stockpiling diamonds, in cooperation with Alrosa, to keep prices up.
Though it is a major commodity producer, Russia has traditionally not embraced policies that artificially keep prices up. In oil, for example, Russia benefits from the oil cartel’s cuts in production, but does not participate in them.
Diamonds are an exception. “If you don’t support the price,” Andrei V. Polyakov, a spokesman for Alrosa, said, “a diamond becomes a mere piece of carbon.”
In an attempt to carefully calibrate its re-entry on the global market, without forcing prices still lower, Russia is relying on two things: the Soviet-era precious gem depository — created to hold jewelry confiscated from the aristocracy after the 1917 revolution — and capitalist investors, whom Alrosa hopes will buy diamonds as an investment, like gold.
Russia is taking a leadership role in other ways, too.
Sergei Vybornov, Alrosa’s chief executive, said that he had helped persuade the central bank of Angola — which, like Russia, is still relatively flush with oil money — to buy 30 percent of the production of Angola’s diamond mines, keeping these stones off the market.
And last fall, Alrosa began what it called the St. Petersburg Initiative, along with De Beers and other large producers, to invest collectively in generic diamond advertising, akin to De Beers’s promotion of the slogan “Diamonds are forever.” Russia assumed the task as De Beers has principally shifted to promoting its own branded gems.
Still, it is a precarious time for the Russian diamond company to assume leadership of the industry.
Until last year, De Beers produced about 40 percent of the global rough stone supply, and Alrosa 25 percent. But De Beers, which is prohibited under its European Union antitrust agreement from stockpiling, closed mines in response to the glut in rough stones. Russia is loath to do that, as authorities in Moscow, gravely concerned about potential unrest by disgruntled unemployed workers, try to keep workers on the payroll.
In the first quarter, De Beers reduced output by 91 percent compared with the previous year. The diversified mining companies Rio Tinto and BHP Billiton also curbed production.
Meanwhile, the market for wholesale polished diamonds, worth about $21.5 billion, is expected to fall to about $12 billion in 2009, according to Polished Prices, an analytical service for the industry.
Rough diamond prices have fallen even more, as much as 75 percent since their peak last July at some auctions.
The two markets are distinct. Typically, about 60 percent of a rough diamond is lost as dust or shavings in the cutting process.
Mr. Vybornov blames diamond traders who pledged diamond stocks as loan collateral for part of the world glut. When credit dried up last fall, banks and other creditors seized those gems and sold them, he says, flooding the market. By December, his company decided to withdraw entirely from the market rather than further erode prices.
Russia historically remained mostly a behind-the-scenes player, perhaps because Soviet authorities would have had to perform some ideological gymnastics to promote a product consumed principally by the rich of the capitalist world.
Instead, twisting politics, the Soviets concluded a semisecret agreement with apartheid-era De Beers to sell Siberian diamonds in a way that would not undercut the market.
After the collapse of the Soviet Union, the Russian diamond industry created a formal alliance with De Beers, selling the South African company half of each year’s production at a discount intended to subsidize De Beers’s generic diamond advertising undertaken in the 1990s, mostly in the United States.
Now, the Russians are in the driver’s seat.
Charles Wyndham, a former De Beers evaluator and co-founder of Polished Prices, said Russia had thus far managed the transition well: withholding gems to make more money in the long run rather than further depressing the market.
“Whatever one wants to say about the Russians, they certainly aren’t stupid,” Mr. Wyndham said.
Alrosa is seeking to jump-start demand by selling gems under long-term contracts to wholesale buyers in Belgium, Israel, India and elsewhere. Under these contracts, six of which have been signed, prices are set at a midpoint between the peak last August and this winter, and fixed for a period of several years.
“A diamond ring should not cost $100,” Mr. Vybornov said. “We don’t want that type of client.”
Alrosa is also working with a Moscow investment bank, Leader, a subsidiary of the Russian natural gas monopoly Gazprom, to market diamonds to investors. Under the plan, investors would buy diamonds but the gems would not be released to jewelers for several years.
It is a program, essentially, of outsourcing the stockpiling function to investors in exchange for the chance to profit from a possible recovery in the market.
At one of Alrosa’s cutting shops in one of Moscow’s outer districts, Aleksandr A. Malinin, an adviser to the president of Alrosa, showed a typical collection that might become the basis for such an investment vehicle.
The gems fit in a felt box about the size of a laptop computer.
The larger stones, a circular-cut 10 carat flawless white and a princess-cut yellow, were estimated at about $400,000. The smaller ones ranged from $16,000 to $100,000. But the value of the box, while surely several million dollars, is something of a mystery just now given the depressed market.
How the buy-in price for the stones will be set, and how the company will determine when the price goes up and down, is unclear, Mr. Malinin said.
“We have to tell people that diamonds are valuable,” he said. “We are trying to maintain the price, just as De Beers did, as all diamond producing countries do. But what we are doing is selling an illusion,” meaning a product with no utility and a price that depends on the continued sense of scarcity where there is none.
At the Alrosa unit that receives diamonds, called the United Selling Organization, where about 90 percent of the output of the Siberian mines arrives for processing, Elena V. Kapustkina pours about 45,000 carats of diamonds though a stainless steel sieve every day to sort them by size.
“It’s just a job,” she said.
When asked whether diamonds had lost their romance for her, Ms. Kapustkina paused, looked down at the pile of gems on her table and blushed.
In fact, she said, her husband, a truck driver, gave her a half-carat ring 22 years ago. “Of course I love it,” she said. “It’s from my husband.”
New York Times - United States
11 May 2009
Color Grading Diamonds At GIA: The First Fifty Years
In the more than half a century since the Gemological Institute of America (GIA) introduced its D-to-Z system for color grading colorless to light-yellow diamonds, it has become the premier color grading system in the global diamond industry. During this time, technological progress, new diamond sources and developing markets have changed the way the industry does business. As John King, Ron Geurts, Al Gilbertson and James Shigley explain in the lead article in the Winter 2008 issue of Gems & Gemology, the GIA color-grading process has evolved to meet the industry’s ever-changing needs. This section of the piece reviews the history of GIA’s D-to-Z color grading system.
It started with Shipley. Although GIA did not formally grade diamonds until the 1950s, the development of a uniform standard and a repeatable methodology was a priority years earlier for founder Robert Shipley and later Richard T. Liddicoat, who succeeded him as president in 1952. Before the GIA system, diamond color was expressed in myriad confusing terms and systems. Some, such as “River” and “Wesselton” for top color and “Cape” for deeper color, are still heard occasionally within the industry.
Grading environments differed just as much. The old dictum that color should be judged only in north daylight did not take into account that such light could vary by geographic location, weather and time of day. With no standardized light source for diamond grading available in the early 1940s, the task of creating one fell to Shipley, Shipley’s son, Robert Jr., and Liddicoat.
This was difficult, given that no light source at the time could consistently approximate “north” daylight. The younger Shipley’s experiments with various types of lighting, however, led to the GIA Diamolite, introduced in 1941, which used a specially filtered incandescent bulb that approached the color appearance of north daylight. Fluorescent lighting, the basis for all modern diamond grading environments, was just becoming commercially available and was still years away from being stable enough for such an application.
Also in 1941, the GIA team developed an early color grading unit for internal use to grade master stones. Adapted from the medical field, the GIA Colorimeter did not have electronic measuring components like today’s color grading instruments. Instead, it featured a movable, transparent wedge with a graduated scale that went from colorless at the tip to the equivalent of the modern P color. Roman numerals, starting with zero, served as color grades — that is, 0, I, II, III, up to VI. GIA used this system to grade master diamonds for American Gem Society (AGS) members. Using these master stones with the Diamolite, retailers could grade diamonds with greater consistency, and communicate with one another and their suppliers about the color of a particular stone.
Evolution of the D-to-Z system. A breakthrough came in 1953, when Liddicoat unveiled GIA’s terminology for diamond color grading. The system started with the letter D for colorless, because so many diamond companies had been using the first three letters of the alphabet, particularly A, for their own proprietary quality grades. At first, the new system was used only in the classroom, but many students began to look to GIA to verify their own attempts at grading — and eventually to grade the diamonds for them.
Gradually, the system was adopted throughout the diamond industry. In the 1960s, after a decade of grading diamonds commercially, GIA began to use the now much-improved fluorescent lamps and to refine the viewing environment — surroundings, distances, angles and the like — to yield more consistent results.
As the diversity of diamonds available to the jewelry industry has broadened over the years, GIA has also expanded its color grading terminology. For decades, diamonds with a light-brown — rather than yellow — component seen in the lab fell at the high end of the color grading scale and so were easily accommodated by the D-to-Z grading system. With the influx of a broader range of brown diamonds from the Argyle mine starting in the mid-1980s, however, the laboratory began to see such stones in colors covering the full range of the scale more regularly. Accordingly, GIA developed a set of brown master stones for internal use. All brown diamonds below J are noted with the letter grade and a color description. K, L and M colors come with the designation “faint brown,” while N-to-R colors are described as “very light” brown and S to Z as “light brown.”
A special approach was also developed for grayish diamonds. In the E-to-J range, gray diamonds are assigned a letter grade, as is done with browns. Beginning with K, however, they receive a description only. For example, diamonds in the K, L and M range are graded “faint gray,” and those in N to R are “very light gray.”
The difficulties of grading subtle differences in hue and tone as color becomes more noticeable prompted GIA to adopt a two-grade range — O-P and Q-R, for example — for stones below N color. Indeed, the trade traditionally has not demanded finer distinctions at the low end of the scale.
The lab also faces unique challenges when it grades fancy shapes below Q color, because the bodycolor of these diamonds can appear several grades darker when viewed face-up. The lab assigns a grade that balances face-up and face-down appearance up to the letter Z in these cases. Face-up appearance takes precedence at Z, because it is the point of transition to fancy colors, which are always graded face-up.
Machine-supported color grading. While the institute’s attempts at developing color grading devices date back to at least 1941, it was not until the turn of the 21st century that GIA developed an instrument that yields results that correlate with those of human graders. This device — which is not available commercially — is the product of years of testing involving millions of diamonds.
A prototype was built in 1999, and subsequent adjustments brought a very close match between instrumental and visual grading. Once the unit’s accuracy was tested and verified, it was put into service in GIA’s labs. Since its introduction, most diamonds have been graded by combining visual observation with color measurement by the proprietary device.
While keeping the same color grades and the same standards for each of those grades, GIA has adopted new technologies to ensure consistency and efficiency. In addition to the integration of an instrument into the color grading process, other recent developments have involved the choice of the Verilux 15-watt lamp for the GIA DiamondDock, the standard grading environment for diamonds in the laboratory. GIA will continue to incorporate advances in technology to maintain its goals for a consistent color grading process that can be replicated across both time and distance.
Gems & Gemology article on Rapaport News
11 May 2009
Rio Tinto Diamonds launches its Champagne Diamond design competition
Rio Tinto Diamonds has launched a jewelry design contest aimed at promoting champagne diamonds. Rio Tintos Argyle diamond mine in Australia is a leading supplier of these goods.
The Champagne Diamond Design Competition intends to attract new jewelry designers who will be inspired to showcase the full color range of champagne diamonds in new and innovative designs.
Last year Rio Tinto launched a new series of champagne diamond promotional materials focusing on educating retailers, generating consumer interest and developing new distribution channels.
According to Jean-Marc Lieberherr, general manager for sales and marketing, “The design contest is a natural extension of our market development for champagne diamonds in the U.S.” Rio Tinto is seeking to encourage the growth of champagne diamond jewelry and is counting on exciting designs to inspire retailers and consumers alike.
The competition comprises four categories with the overall winner receiving the title of “Champagne Visionary.” The four winning designs will form part of an exhibition hosted at leading jewelry retail locations, in time for the holiday season.
“The timing is perfect for a design contest because it provides inspiration and new ideas to invigorate our industry,” said Rebecca Foerster, manager of Rio Tintos Diamonds Sales and Marketing U.S. representative office. ”The market is hungry for creativity and the combination of flawless craftsmanship and consumer appeal will set the winners apart.”
The design contest closes on July 1, with judging by a panel of fashion and jewelry experts in New York City on July 14.
IDEX Online
10 May 2009
Christie’s to Auction 20.70 carats, D/FL Pendent
Christie’s will hold its spring auction in Hong Kong on May 26, offering a selection of white and colored diamonds as well as jadeite jewelry. Other items include rare period pieces, signed jewels and a wide range of jewels offered at no reserve.
Leading the May sale is a pear-shaped 20.70 carats, D color and Flawless clarity diamond pendant. The diamond, graded excellent polish and excellent symmetry, is mounted with a 10.07 carats pear-shaped D color and Internally Flawless clarity diamond. Both stones are Type IIa. The auction house did not publish an estimated value for this item,
Also on the block is a necklace boasting 56 colored diamonds, including stones certified fancy deep, vivid and intense pink as well as blue, yellow and green diamonds. Estimated at $1.35-1.9 million, the total weight of the diamonds in this unusual jewel is 14.67 carats.
IDEX Online
6 May 2009
Trade gives champagne diamonds warm reception
When champagne diamonds were introduced to the American market in the early 1990s, retailers snubbed the brown stones, categorically dismissing them as cheap, low-quality, industrial diamonds.
"The connotation in the trade was that browns were no good," said Robert May, executive director of the Natural Color Diamond Association. "But the perception to the consumer was different. The perception was that they were valuable."
At the turn of the millennium, designers began to help bridge the gap between retailers perceptions and consumer reality by taking advantage of the less costly browns to create experimental designs in warm, nuanced palettes. Once relegated to department stores and mass merchants, champagne diamonds, along with their darker-hued and more valuable cousins, cognacs, are now being co-opted by the high-end.
Brazils H. Stern was among the first luxury jewelers to incorporate the stones into its repertoire. Seduced by "the ability to do color in diamonds with much better price points than pinks and yellows," Creative Director Roberto Stern said he was also drawn to "the fact that we could think bigger with cognac diamonds--wider distribution, frequent use, both one-of-a-kind and also collection pieces available in all stores."
Retailers, long schooled by De Beers and the Gemological Institute of America to value white, or colorless, diamonds as the top of the pyramid, were the only ones who still questioned the appeal of browns.
About a year and a half ago, Rio Tinto embarked on a campaign to convince them once and for all. The mining giant owns the Argyle Mine in Western Australia, the worlds largest supplier of brown diamonds. To help stimulate demand among retailers, the company has launched a trade campaign that includes sales training for retailers, new marketing materials and a revamped consumer Web site, ChampagneDiamondCenter.com.
Yesterday, Rio Tinto announced the latest component of the campaign: a champagne-diamond jewelry-design competition that will culminate this fall in an exhibition of winning pieces that will travel to select retail stores around the country.
"We felt the next logical step was to do a design contest," said Rebecca M. Foerster, manager of the U.S. representative office of Rio Tinto Diamonds. "The downturn didnt make me think any differently about it. What better time to inspire design?"
Contest participants will join a competitive field. From the cloistered salons of Place Vendome to the workshops of up-and-coming designers, champagne diamonds have finally found their footing in the trade. The popularity of the eco-movement along with the markets desire for less flashy, more understated jewels, has played no small part in their wider acceptance.
"Very trendy now is to mix different types of stones and colors in the same pave setting," said Frederic Mathon of Mathon Paris, a well-regarded manufacturer.
The perception of browns, in certain precincts of the trade, is so lofty that some designers are touting them as the next big thing in bridal.
Eddie Le Vian, design director and CEO of Le Vian, needs no convincing. He is introducing Chocolate Vows, a bridal collection of brown-diamond engagement rings, at the JCK show in Las Vegas. Building off of Le Vians signature Chocolate Diamonds range, introduced in 2000, the collection relies on a trademarked color-grading system based on various flavors of chocolate: Pave Chocolates, Chunky Chocolates and Chocolate Truffles, for example.
"For some independents, the tide is changing and theyre starting to realize its a huge business theyre missing," Le Vian said.
National Jeweler
4 May 2009
Diamonds Are a Girls Best Friend
Can we say A-list? Last night Cartier celebrated their 100th Anniversary and we must say they have never looked better.
Anne Hathaway, Justin Timberlake, Jessica Biel, Eva Mendes, Demi Moore, Kate Hudson and Elton John were on hand to help blow out some of Cartiers candles.
Although Kate Hudson looked amazing in a barely there ensemble, it was her jewelry that definitely caught the eye. Kate was dripping in over $1million dollars worth of diamonds at last nights event. What recession??
Anne Hathaway stayed modest as she was rocking over $500,000 worth of Cartier jewels.
Not to be left out, Justin Timberlake also decided to accessorize with some serious bling. He accessorized with a diamond panther tie pin and some serious diamond cufflinks.
Besides looking good, all of this excess and luxury was also for a good cause. The birthday bash was benefiting Service Nation, an organization that encourages volunteering. Happy Birthday Cartier!
Hollyscoop - Los Angeles,CA,USA
4 May 2009
Demis diamond performance for Cartier
Updated 11.31 Sat May 02 2009
Actress Demi Moore adds a touch of star power to mark the 100th anniversary of Cartiers presence in the US.
She unveiled the new limited-edition Trinity bracelet in yellow, rose and white gold and diamonds which has been launched to benefit ServiceNation.
The charity urges Americans to step forward and give their time for community and national service.
The bracelets will be sold on individual red, white and blue silk cords at all Cartier boutiques nationwide.
Demi said: "Its not just about a one time deal. Its about really changing our perception of the culture we live in.
"I think, even almost selfishly, the best way we can give back to ourselves is by giving to others and doing so it always removes the separation between us."
ITN - London,UK
30 April 2009
Jewelry Price Inflation Diminishes
Inflation in the jewelry industry continues to diminish, both at the supplier level and the consumer level. This is no surprise, for two reasons:
There is weak demand at all levels of the distribution pipeline. When demand is weak, prices tend to stabilize or fall, rather than rising.
No single supplier or retailer has pricing power. The industry is highly fragmented at both of these links in the distribution chain.
While the jewelry industry deals with weaker pricing, economists around the world are worried about inflationary trends, especially over the long term. All of the government stimuli that have been thrown at the current recession will likely create inflation – perhaps flaming inflation – when the economy eventually recovers.
If inflation is coming, according to the economists (remember, though, they are the same people who didn’t see the current recession coming), what does this mean for the jewelry industry? As commodity prices rise – and they surely will – materials costs will increase. Wage and salary costs are also expected to rise, as workers demand more money to pay for increasingly expensive goods and services. It is clear that price inflation is in store for the jewelry industry, but probably not until late this year or beyond.
Our reaction: enjoy this momentary lull. It appears that the industry has reached a balance or equilibrium between deflation and inflation trends. We are no longer facing the prospects of deflationary pricing. But we are likely to face inflation, perhaps by 2010. Thus, we’d begin to add goods to our inventory while prices are still low.
Jewelry Price Inflation: March 2009
Here’s the summary of inflation at the jewelry retail and supplier level for the month of March 2009, as expressed as a percentage change year-over-year (March 2009 versus March 2008) in the U.S. market:
Jewelry Producer Price Index +1.0 percent
Precious Metals for Jewelry 0.0 percent (flat)
Jewelry & Watch Consumer Price Index +3.1 percent
Jewelry CPI +3.1 percent
Watch CPI +3.2 percent
At the retail level, inflation has continued to moderate, as predicted, primarily because we are nearing the anniversary date of last year’s price increases that jewelers implemented in the second quarter. Comparisons in the first few months of 2009 versus the same period in 2008 reflect “old pricing” in 2008 versus “new higher prices” in 2009. In subsequent months in 2009, retail prices will be compared to the higher prices which were implemented in the second quarter of 2008. Since there have been no material retail price increases since mid-2008, inflation at the retail level in the U.S. market should remain modest. Even when demand recovers, we don’t look for any significant retail price increases until perhaps 2010. Merchants are going to be cautious before they implement new higher prices which might scare off their loyal customers.
Jewelry Producer Price Index (JPPI) +1.0 percent in March
U.S. jewelry producer prices (JPPI) rose by a very modest 1.0 percent in March 2009, according to the U.S. Bureau of Labor Statistics (BLS). This was one of the smallest gains in the past two years; further, it was barely above the very modest gains for January and February – +0.3 percent and +0.6 percent respectively. It was far below the Jewelry Producer Price Index for 2008, which topped out at +6.3 percent for the full year. The 1.0 percent gain in March is just above the annual inflation rate – which averaged about 0.7 percent – that characterized the jewelry producer industry in 2000 through 2002, a recessionary period. It primarily reflects relatively stable precious metals prices. Further, March’s inflation rate is well below the long term Jewelry Producer Price Index increase of about 1.4-1.5 percent annually.
Jewelry prices at the supplier level – as measured by the Jewelry Producer Price Index – have held relatively steady for a multiplicity of reasons, including the following:
Retail jewelers have cut back on re-ordering merchandise. Thus, with no solid demand, suppliers have no pricing power.
There is still a large backlog of high-cost goods in the distribution pipeline that suppliers need to pass on to their customers.
Retail jewelers simply won’t accept higher prices in the current recessionary environment.
Prices for both precious metal jewelry and gemstone jewelry have moderated. The graph below compares the JPPI (red bars) to inflation for precious metals (gold bars); gold had been the primary driver of precious metals inflation in 2007 and most of 2008. In January 2009, gold prices pulled back modestly, but have risen – and held steady at about $900 per ounce in February and March. In our opinion, $900 gold has been priced into goods produced by jewelry manufacturers, and therefore producer prices aren’t likely to rise notably from current levels.
As the graph below illustrates, precious metals jewelry prices at the supplier level showed deflation in January and February, but leveled off in March. The JPPI for Precious Metals in March was flat (thus, there is no gold bar showing on the graph).
We note, further, that the Jewelry Producer Price Inflation Index in March – +1.0 percent – was significantly below the Jewelry Consumer Price Inflation Index of +3.1 percent for March. These trends illustrate the lag effect between rising producer prices and the resultant rising retail prices.
Jewelry Consumer Price Index (JCPI) +3.1 percent in March
U.S. jewelry consumer prices (JCPI) rose by 3.1 percent in March 2009, as calculated by the BLS. After rising sharply through the second quarter of last year, jewelry price increases at the retail level moderated in the late summer of 2008, a trend which continues due primarily to the current recessionary environment.
For the full year 2008, retail price inflation for jewelry in the U.S. market ran at an annual rate of +6.9 percent. Now, however, it is clear that jewelry price inflation is moderating, and it will likely remain lower than 2008 in the coming months, especially as we reach the anniversary of last year’s price increases that jewelers implemented in the second quarter of 2008.
However, we note that jewelry price inflation at the retail level is still running well ahead of its two-decade annual gain of about +1.6 percent.
Early in 2008, the components of jewelry and watch price inflation at the retail level reflected a disparity in price increases. Jewelry retail prices were up consistently during the first half of 2008, but watch retail prices showed virtually no price inflation. In the past few months, watch price inflation has steadily increased, though it moderated in January, picked up again in February, but softened in March. While there were several factors which contributed to inflationary pricing trends of watches – a shortage of watch mechanicals in Switzerland and strong demand at the very high end – these factors have largely dissipated due to weak demand at most all levels and price points of the watch distribution chain. We expect watch price inflation to track more closely to retail jewelry price inflation over the near term.
Outlook: Modest Jewelry Price Inflation in 2009
After rising by nearly 7 percent in 2008, we continue to forecast more modest jewelry price inflation during 2009. The wild card, of course, is the price of commodities, including gold, silver, and platinum. If investors continue to buy these commodities as hedges against inflation, it will put upward pressure on jewelry prices. If the global economy recovers faster than the economists are predicting, prices of commodities could spike.
Our current prediction calls for 2009 price inflation to be in the low single digit level. This is a departure from our earlier forecast of modest deflation. The U.S. economy – which accounts for roughly half of all jewelry demand worldwide (by value) – is showing signs that the recession has bottomed. Thus, if consumer demand recovers, we won’t experience price deflation; instead, we could experience modest price inflation. Now, that’s a pleasant thought!
IDEX Online
28 April 2009
Gems & Gemology Spring Issue Highlights French Blue Diamond
RAPAPORT... Press Release: The Spring 2009 issue of the Gemological Institute of America’s (GIA) Gems & Gemology features a revealing look at the French Blue diamond, as well as rare colored diamonds from Australias Argyle mine and the cause of pink zones in copper-bearing tourmalines from Mozambique. It has long been believed that the 45.5-carat Hope Diamond was cut from the 69-carat French Blue, which disappeared in 1792 during the French Revolution. A lead cast of the fabled French Blue recently discovered at the Muséum National d’Histoire Naturelle (MNHN) in Paris appears to validate this theory. In “The French Blue and the Hope,” Dr. François Farges of MNHN and his coauthors used the cast to create a computer model that sheds new light on the Hope-French Blue connection.
“This article reconstructs the history of the French Blue and offers implications for its fate,” says Alice Keller, Gems & Gemologys editor-in-chief. “Its a significant breakthrough in our understanding of this mythic diamond and the famous stone cut from it.”
In “Gray-to-Blue-to-Violet Hydrogen-Rich Diamonds from the Argyle Mine, Australia,” Dr. Carolyn van der Bogert leads an investigation of the gemological and spectroscopic features associated with this rare color group. These features can separate Argyle diamonds from goods of similar color that may be treated or synthetic.
The issue’s other articles explore hackmanite/sodalite from Myanmar and Afghanistan, radioactive solution-related pink zones in blue to blue-green copper-bearing tourmalines from Mozambique and the identification of endangered pink-to-red Stylaster coral by Raman spectroscopy. The Lab Notes section features purplish-pink spinel from Tajikistan, cubic zirconia reportedly coated with nanocrystalline synthetic diamond and more. Among the many Gem News International reports are new play-of-color opals from Welo, Ethiopia, gem-quality rhodochrosite from China and amethyst from Morocco.
Two special features are the announcement of this years Dr. Edward J. Gübelin Most Valuable Article Award winners and the G&G Challenge, a multiple-choice quiz based on articles from the 2008 issues. Subscribers who successfully complete the G&G Challenge can receive a GIA Continuing Education Certificate and recognition in an upcoming issue.
Diamonds.net - New York,NY,USA
28 April 2009
The Stats on Heidi Montags Borrowed Wedding Bling
Every bride needs "something borrowed and something blue" and jeweler-to-the-stars Neil Lane helped Heidi Montag fulfill the borrowed aspect with millions of dollars worth of jewelry for her weekend nuptials.
Lane tells "The Insider" that Heidi (photographed above picking out her jewels) wanted to be like Hollywood royalty for her wedding to Spencer Pratt last Saturday, and borrowed $1.5 -- $2 million in platinum and diamonds from the jeweler.
Neil compared Heidi to a "kid in a candy shop" while choosing which jewels she would borrow, and said that she originally wanted a tiara, but decided against it because she thought it would be too much.
Heidi, who told Lane she was going for an Elizabeth Taylor look, loaded up her wrists with diamond bracelets and wore a total of approximately 350 karats in diamonds.
TheInsider.com - San Francisco,CA,USA
28 April 2009
Rio Tinto’s Blue Diamond Tender Ends, "Exceeds Expectations"
Rio Tinto’s tender of rare blue and violet diamonds ended recently, realizing record prices according to the company, which did not disclose any specific figures. The diamonds, dubbed the ‘Once in a Blue Moon “collection, included a range of diamonds, divided into16 lots weighing 287 carats in total.
Sourced from several years of production at the Argyle diamond mine in Western Australia, the company said the tender prices "far exceeded the company’s expectations."
But while the company is sheepish on the sale prices, not disclosing the total prices or even if all the diamonds were sold, according to Jean-Marc Lieberherr, Rio Tinto’s general manager of diamond sales and marketing, “it was a bold move, with numerous lots selling in excess of the reserve prices, which is a great sign in the lead up to our annual pink diamond tender.” A request for more details about the tender was not answered at publication time.
"We have been overwhelmed by the enthusiasm from new and existing colored diamond collectors around the globe," said Josephine Archer, sales and marketing manager for Argyle Pink Diamonds.
The collection was showcased in Tokyo, Hong King and Perth with bids closing on April 8. It included single cuts, a number of matching pairs and a selection of smaller diamonds. In terms of quality, Rio Tinto defined the diamonds as “premium” and commercial diamonds.
The Argyle diamond mine is known for its colored diamonds. While most are brownish in color, the mine also produces rare pink, red, violet and gray stones. Rio Tinto usually polishes these diamonds in-house and tenders them to traders and collectors.
IDEX Online
27 April 2009
De Beers production cut to improve diamond mart
A production cut effected by De Beers, the world’s leading diamond producer, would help improve market dynamics for diamond this year, according to Varda Shine, managing director of Diamond Trading Company (DTC), the distribution arm of De Beers.
There were already signs of improvement in demand compared to the fourth quarter of last year, she told reporters here today. Against the backdrop of the global slowdown last year, De Beers has decided to cut its production by 40-50 per cent during this year.
The company has also decided to cut costs by 47 per cent. The cut also includes closure of some of their unviable mines.
Some slump-hit leading diamond producers have either shut some of their mines for maintenance or reduced capacity utilisation since the beginning of the recession. And some others have declared mining holidays.
According to Shine, diamond demand would see a fall between 5-10 per cent this year, but the fall in supply would be much larger, which will lead to an improved scenario for the industry.
On the Indian market, she said the country’s diamond processors have seen “some improvement” this year and are trying to “come back on track”. Three “sights” of DTC have seen steady improvement in sales in the current year and the trend is expected to continue, she said. DTC, the world’s largest supplier of rough diamonds, has a global market share of nearly 40 per cent.
However, a leading diamond processor here said that BHP Billiton, a rival of De Beers, has fetched high prices for rough diamonds put in an auction, indicating an improvement in demand.
BHP Billiton sells diamond through auctions, while De Beers trades rough diamonds through DTC and its sightholders.
US consumes 50 per cent of the polished diamond and Japan is second with 16 per cent of sales. According to DTC, India is the third-largest market for polished diamond.
To improve sales, DTC has planned a marketing campaign in the fourth quarter of this year in the US, which would benefit Indian traders also. “We have earmarked a big budget for this campaign and this will help Indian producers to sell more polished diamonds and diamond-studded jewellery in the biggest market,” Shine said.
She said that “last year was an aberration” as the processors were buying rough diamonds “at any price and at some stage, rough prices have gone up much faster than polished diamond”.
“Now, rough prices have aligned to more realistic levels. DTC has also revised prices of rough diamonds downwards,” she said. Shine, however, refused to divulge price details.
Business Standard - Mumbai,Maharashtra,India
27 April 2009
When Cartier Was Just for the Likes of Liz
LUXURY once denoted stuff that was costly and hard to obtain. The noun bespoke well-upholstered and Gatsby-esque lives played out against a backdrop of mansions and servants and among others who, as Holly Brubach once observed in The New York Times, “ordered their trunks from Louis Vuitton, their trousseaux from Christian Dior, their Dom Pérignon by the case.”
Carriage-trade luxury went south a while ago and with it went the carriage trade itself. On the way out, it passed a new class of people who — although they might never be able to afford an apartment at 740 Park Avenue or a summer place in Dark Harbor — had acquired both the ability and the hankering to purchase themselves little nothings from Vuitton, Chanel or Dior.
And thus, even in a recession, the client most crucial to luxury goods purveyors is no longer a Rockefeller but a Real Housewife of New York.
And that may account for the decision made by Cartier, the 163-year-old French jewelry house now owned by the Richemont group, to take a populist tack when celebrating its United States centenary. Gathering baubles commissioned over the last century by the celebrated, the rich and the swell, Cartier has installed them in its Fifth Avenue flagship for “Cartier ... 100 Years of Passion and Free Spirit in America” (opening May 1) a rare chance for hoi polloi to get a close look at how the other half once lived.
“Cartier is a true luxury brand,” Frédéric de Narp, president and chief executive of Cartier North America, said last week, adding that “there is no fashion at Cartier, there are no seasonal products. There is just the timelessness of something valuable cherished for generation after generation.”
Yet like most of its competitors, Cartier long ago expanded its scope to include perfume and eyewear, stuff that lacks the recherché glamour of an emerald parure but that does a lot for a company’s bottom line.
It is true that people are left in the world who recognize where to go when they suddenly find themselves in need of a diamond tiara, but they are few. Even before the economy got Madoffed, the pool of clients had dwindled for the sort of baubles the ultrarich once bought to amuse themselves.
And so, particularly at a time when strapped consumers are questioning both their buying habits and the durable value of last year’s “It” bag, there is a certain pleasure to be gained from ogling the keepsakes of boom times, when people with plenty of money — but also time and taste — dropped into Cartier when they felt the itch for a jeweled card case.
Borrowed from clients, estates or else the vaults of Cartier’s Swiss archive, the show is replete with objects like the Duchess of Windsor’s lorgnette and the diamond and panther brooch created for the Woolworth heiress Barbara Hutton.
There is a bracelet of carved emeralds and rubies made for Ganna Walska, the marginally talented opera singer whose genuine gift was marrying well and often (six times). There is the jeweled handbag Condé Nast’s wife had engraved with her home address (1040 Park Avenue) in the possibly delusional expectation that it would be returned if ever mislaid.
And among the other giddily refined oddments is Mary Pickford’s vanity case, Mrs. Cole Porter’s tutti-frutti dress clips, J. P. Morgan’s perfume bottle, the Triple Crown trophy, Mrs. Vanderbilt’s jeweled car travel case and Grace Kelly’s poodle pin. From Elizabeth Taylor’s legendary trove is a ruby and diamond suite that her husband Mike Todd gave her (at poolside, as captured on a film clip that is part of the show). Also there is La Peregrina, a pear-shaped pearl that was discovered in the early 16th century, owned by Mary Tudor, the Spanish queens Margarita and Isabel, and purchased at auction in 1969 by Richard Burton for $37,000. Cartier set it with diamonds, pearls and rubies in 1972.
“We are all about stories at Cartier,” said Mr. de Narp, an assertion seconded by Ms. Taylor herself.
“Of course I wear my jewelry!” the actress said in an e-mail exchange. “I wear the important pieces as well as the simpler ones that I love as much. ‘’ Wearing an exceptional gem “gives me a real high,” she added, and playing with jewelry is among her preferred pastimes, “because each piece tells a story, taking me back to a special person or time or place.” Stones have a life of their own, said Ms. Taylor, whose authority on the subject is incontestable. “There’s something mystical about them. They have their own vitality.”
For Cartier and other luxury goods houses, as Mr. de Narp said, “We are in a defining moment because people are disoriented and need reassurance,” by the economic downturn. “They need something rock solid,” he added, like rocks.
New York Times - United States
27 April 2009
Rare flawless blue diamond to be exhibited by Sotheby’s
Sotheby’s is preparing to conduct a preview exhibit of a rare fancy vivid blue internally flawless diamond sourced from the Cullinan diamond mine. The presentation is scheduled to be held on 27th April 2009 at the Sotheby’s New Bond Street galleries, 34-35 New Bond Street, London W1. The diamond is credited as one of the most important blue diamonds ever to be offered for sale by Sotheby’s and is estimated to be worth £3.9-5.8 million ($5.8-8.5 million) carrying a weight of 7.03 carats.
As rare as they are known to be, blue diamonds are one of the most envied jewels, amongst others. The Sotheby’s diamond has the highest possible grading – vivid – and it is also internally flawless. It has been cut from 26.58 carat rough discovered in 2008 at Petra Diamonds’ Cullinan diamond mine in South Africa, the world’s most consistently reliable source of blue diamonds.
During the presentation, David Bennett, Chairman of Jewellery, Sotheby’s Europe and the Middle East, Adonis Pouroulis, Chairman, Petra Diamonds, owner of the Cullinan mine and Gary Monnickendam, expert diamond polisher who oversaw the process from rough to polished stone will be present to address the gathering. Sotheby’s is conferring the honour of naming the diamond to its buyer during the auction.
Sotheby’s has also sold another famous diamond from Cullinan: the 69.42 carat polished diamond that Richard Burton gave to Elizabeth Taylor and came to be known as the Taylor Burton diamond.
Diamond World Magazine - Mumbai,Maharashtra,India
27 April 2009
Diamonds Hold Steady at Sotheby’s New York Auction
RAPAPORT... In keeping with auction tradition, fine signed and decorative jewelry sold well at Sotheby’s New York sale as, no matter what happens in the economy, strong prices are always realized for these items. The sale tallied up $11,098,638 and was sold 68 percent by lot and 55 percent by value.
The top lot of the sale was a diamond necklace, which sold to a European private collector for $698,500. An Asian private collector nabbed the second top lot of the sale — a 13.98-carat GVS2 diamond ring for $482,500, or $34,514 per carat. Although the sale lacked the very special large DIF stones that generally sell at auction, there was still movement in diamonds, but mostly in the under-10-carat range.
Bidding was primarily from the private sector, with some in the trade holding back from buying diamonds because they felt that prices were a bit steep or they weren’t the stones the dealers could flip quickly. On the upside, it provided consumers with an opportunity to buy diamonds more easily than in the past couple of years when prices were soaring over the estimates. Privates took advantage of the new more realistic diamond prices and bought stones that are easily wearable for everyday.
Notably, sapphires, emeralds and natural pearls did well at this sale. Natural pearls are becoming a hot item at auction as buyers from the Gulf region scoop up these wonders of the sea prized for their rarity.
Rapaport News
24 April 2009
30 Carat Diamond Sells for $130,000 P/C at Christie’s
A 30.02 carat pear-shaped D, Internally Flawless type Iia diamond was sold for $4,002,500 to an unidentified private buyer at Christie’s New York jewelry auction on Wednesday. The winning bid represents a $133,000 per carat sale price.
“The market for colorless diamonds remains absolutely firm and very much in line with prices realized for similar stones this time last year,” said Rahul Kadakia, Christie’s head of jewelry.
Another top selling item was a 6.76 carats cushion-cut Burmese ruby and diamond ring that was sold for $866,500, or $128,000 per carat, to an Asian private buyer.
A rectangular-cut D, VS1 diamond weighing 32.72 carats sold for $1,650,500, within the estimated range of $1.4 - $1.8 million.
“The sale attracted buoyant participation from private collectors and members of the trade from all over the world, setting a great tone for the spring jewelry auction season,” Kadakia added.
IDEX Online
24 April 2009
U.S. jewelry inflation index rose 3 percent in March
[AFNS] WASHINGTON D.C., USA, 23 April 2009 – The U.S. Bureau of Labor Statistics consumer price index (CPI) for jewelry in the rose 3 percent on the year in March.
The index was a little more than one point higher than in February, thus making March the 14th straight month where the jewelry CPI was above 150 points.
Previously, the index had not reached 150 points since February 1998.
The indexs watch and jewelry categories together rose in March by 3 percent to 149.4 points.
A service of the Antwerp Facets News Service (AFNS).
24 April 2009
Rio Tintos diamond output soars in first quarter
AFNS] SYDNEY, AUSTRALIA, 23 April 2009 – Higher grades of diamonds mined at the Argyle mine in Australia helped Rio Tinto increase diamond output by 67 percent in the first quarter of this year, the firm said.
Rio mined 5.5 million carats of diamonds in the three months of 2009 compared with 3.3 million carats in January-March 2008.
The main driver of the rise in output was the Argyle mine where production rose by 100 percent to 4.4 million carats. Rio Tinto said there was a 43 percent fall in the amount of ore processed at the mine and deduced that the increase in output must have been caused by the processing of higher-grade ore.
But since Rio reduced operations at the Argyle underground mine in March to vital development work and put diamond processing on an extended maintenance shutdown for three months because of the slump in demand for diamonds, the rise in diamond output will clearly be affected in the coming months.
Meanwhile, output was largely flat at 1 million carats in the first quarter at the Diavik mine in Canada where Rio has a 60 percent share.
Production will also be lower at Diavik this year, since the firm said last month it would close down production and be put on care and maintenance for six-weeks this summer and again next winter.
Rios share of output at the Murowa diamond mine in Zimbabwe, where Rio Tinto owns 77.8 percent, dropped 40 percent to 31,000 carats during the first quarter.
A service of the Antwerp Facets News Service (AFNS).
21 April 2009
JCK Special Report: Africa Comes to the Oscars
Rob Bates, Senior Editor -- JCK-Jewelers Circular Keystone, 4/21/2009 9:38:00 AM
This is a special report from the May 2009 issue of JCK Magazine.
The week before the Academy Awards, the Diamond Information Center usually hosts a lavish suite celebrating diamond jewelry. But this year, it worried that wouldn’t feel right.
Given the worldwide economic downturn, DIC thought a glitzy diamond suite would be out of step with the prevailing mood. So the organization decided on an approach that would target the conscience as much as the desire for glitz.
The result was a (comparatively) low-key dinner and a cocktail party at the Chateau Marmont hotel in Los Angeles that was filled with celebrities, jewelry, fashion people, and jewelry designers (African students who won De Beers’ "Shining Light Diamond Design" competition). Yet, despite the big names in attendance, the party’s real guest of honor—and in many ways, its reason for being—was a small, serious man who most attendees had never heard of.
He was Festus Mogae, the former president of Botswana, who served for 10 years, until 2008. And he wasn’t there to rub elbows with celebrities. He had a mission: to talk about the benefits the diamond industry brings to his country.
"I want to assure all of you that you must wear diamonds with confidence and pride," he said in a brief address to the crowd. "Because of diamonds, we have transformed ourselves from the world’s poorest country in 1966 to the middle-income country we are today.
"I want you to continue to buy diamonds," he added. "Why? Because it is an act of charity, believe it or not. By doing so, you are providing employment in my country." He closed by saying, "I love you people. You are providing help to my country."
It was a naked appeal that over the years Botswana has shied away from making. But it grew out of the turmoil currently roiling diamond producers (see sidebar) and the fear that image-conscious celebrities would find it unseemly to wear diamonds in these hard times.
"We were worried that people were going to cut back," says Diamond Information Center director Sally Morrison, "and that they would not consider it appropriate to wear huge pieces of diamond jewelry, or that it might seem frivolous or insensitive at a time when many people were facing economic hardship."
So DIC decided to emphasize diamonds’ "greater value."
"It’s about giving people a justifying narrative about doing these things when they may feel a little sensitive about being frivolous," Morrison notes.
Mogae’s visit to Hollywood was spurred in part by a DIC-sponsored trip to Africa by actress Julianne Moore. Earlier this year Moore toured South Africa and Botswana and their diamond mines, and she was quite moved by it.
"I think Julianne very much responded when we were down there," says Morrison. "She saw that the mines were closed. And she saw some of the things that have been done with diamond revenues."
The journey culminated in a dinner with Mogae. "[Meeting Mogae] really put it into a different perspective for her, because he really does see things on a deeper level," Morrison says. "She thought, ‘Wow. Wouldn’t it be great if we could get him to talk to people, particularly in Hollywood, where people have been such a strong supporter of this particular product?’"
This could have been a mere pipedream, but the continuing worldwide economic crisis raised the stakes for Botswana and its diamond industry. So Mogae came to Los Angeles, taking in not only the DIC event but also the Independent Spirit Awards (the Oscars for the independent film scene).
"We were thrilled when Mogae agreed to come," Morrison says. "That was a measure of how seriously he takes this."
The idea behind Mogae’s Hollywood debut was to have a "bit of a mix," Morrison says. So people who were already friends of the industry, like Moore and Russell Simmons, mingled with people from the fashion and entertainment worlds who are less familiar with these issues.
There may have been a culture shock or two—Mogae was said to be surprised at the informality of some stars at such a glitzy event. (Russell Simmons came in his trademark baseball hat and sneakers.) But the celebrities that JCK saw interacting with Mogae—including Forest Whitaker, Moore, and Debra Messing (who noted that her father was a jeweler)—seemed receptive to Mogae’s message.
"I think he did a great job, and I think what he said resonated," says Morrison. "The guests loved him. He basically told people we need your continued support, and that not only is it not a bad thing to wear diamonds, but it’s actually a very good thing because it drives Botswana’s development. I think he was very articulate, and I think they got it."
Sidebar: Botswana Feels the Impact
Botswana is one of those countries where it could be said, "If the U.S. catches a cold, it gets pneumonia." And now that the United States has something akin to pneumonia, the impact has been devastating.
De Beers has virtually ceased production at its major mines in Botswana, and overall production is likely to drop by some 40 percent. There have been thousands of layoffs, and the ambitious plans to cut, sort, and polish diamonds in the country have either been slowed down or put on hold.
"Things are bad," former Botswana President Festus Mogae told JCK. "Activities have been downsized. There will be almost zero new revenues for the government. We are trying to cushion the negative impact, but it is a huge challenge."
There have been similar cutbacks in other producing countries, like South Africa and Namibia, as well as Third World countries also involved in the diamond industry.
One of the hardest hit has been India. Reports say the crisis has thrown an estimated 100,000 Indian diamond cutters out of work, which has led to more than 40 suicides by unemployed diamond cutters.
Mogae’s successor, Ian Khama, recently told the Financial Times that he’s hopeful things will get back to normal by the end of 2010. Even so, the world financial crisis has dealt a shattering blow to a country that was once the envy of Africa. As a Botswana newspaper put it: "After a long boom, it’s suddenly: Goodbye good times."
Jewelers Circular Keystone Online - New York,NY,USA
21 April 2009
Diamond Sales Rising Steadily - De Beers
De Beers, the world largest diamond producer, said sales are rising "steadily" after demand for the diamonds plunged last year, Bloomberg reported.
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"While still at lower-than-normal levels, diamond sales have been steadily increasing since the end of last year," spokeswoman Lynette Gould said in an emailed statement to Bloomberg. Cash flow was positive in March, and the Johannesburg-based company is "optimistic" about meeting annual goals, she said.
In February, De Beers suspended diamond mining at its Debswana joint venture in Botswana that produces a fifth of global diamond supply and said it would borrow $500 million from shareholders.
Shutting diamond mines and diamond cutting jobs may help De Beers, 45 percent owned by Anglo American Plc, to remain profitable even at "significantly lower level of sales," Gould said. De Beers may save more than $1.5 billion of planned expenditure this year, she said.
Debswana, which is 50 percent owned by Botswanas government, resumed diamond production at its Jwaneng, Orapa and Letlhakane mines on April 15. The venture produced 32.3 million carats in 2008, according to the report. Recently De Beers announced that it will be profitable in 2009 even if turnover halves, its finance director said in an interview published in the Financial Times on Thursday last week.
"Trading conditions are tough," Stuart Brown told the paper."But because we saw it early and took very dramatic steps around the business, we are in a position to weather trade in 2009 and 2010 without any recourse to shareholder funds."Our plan for 2009 sees us rmaining profitable, cash neutral and meeting covenants on our loans, even if overall turnover drops by 50 percent."
He disputed an estimate from Barclays Capital that the firm lost $100-million per month in the first quarter of 2009 after a sharp fall in diamond prices over the past year.
Brown said De Beers was modestly cash-positive in March and although cash-negative February, "not anywhere close to the [$100-million] cited," the paper reported.
He said the firm, which is 45 percent-owned by mining group Anglo American, would cut production to save $1,5-billion in operating costs this year.
Mmegi Online - Gaberones,Botswana
20 April 2009
Regional report on bridal: How big is the diamond?
By Joseph Dobrian, April 17, 2009
For bridal, what size diamonds are customers asking for, on average? National Jeweler asked jewelers around the country to weigh in for our Regional Report.
NORTHEAST
--"Between 1.20 and 1.30 carats is the average. Two-carat stones had been more popular, but pricing got out of control," says Solly Refael, Danielle Trissi Ltd., Scarsdale, N.Y.
--"The trend has been to larger stones over the years, but nowadays, with the economy what it is, it may trend smaller. For us, average is one to two carats," says Gordon Robbins, Robbins Diamonds, Philadelphia.
SOUTHEAST
--"Over the past few years, the average diamond size has increased. It used to be a carat, but lately people have been asking for about a carat and a half," says Tommy Thomas, Thomas Jewelry, Jackson, Miss.
--"We havent noticed any change. The average is still about three-quarters of a carat," says Richard Frank, Goldsteins Jewelry, Mobile, Ala.
--"So far this year, all were selling are big stones. One carat was our biggest seller for years, but now its all two-plus. Before Christmas, though, only the smaller stones were selling," says Chris Myers, The Diamond House, Pigeon Forge, Tenn.
MIDWEST
--"Theyre not asking for many stones, period, but Ive seen no big change in size. Half- to three-quarter-carat stones outsell one-carat diamonds by quite a bit," says James Casey, Casey Jewelers, Columbus, Ind.
--"Its not the size so much as the price point. Not many people around here want to go over $1,000 for the whole thing. Kids out of college are willing to spend more for one carat and above, but older people usually shop for price point," says Tony Hansen, Hansen Jewelers, Shenandoah, Iowa.
SOUTH CENTRAL
--"One carat and above is still the most popular size; that hasnt changed," says Kurt Eskew, Eskews Fine Jewelers, Lees Summit, Mo.
--"One carat and above, SI1 to VS and up. Younger people, if its not a carat and above, they dont want it, and they require a nicer-cut stone. I used to sell little-bitty rings like crazy, but not now," says Connie Dayer, Dayer Jewelers, Conway, Ark.
WEST
--"A lot of people here are starting at one carat, then replacing the stone with a larger one in one to five years. We dont sell as many quarter- and half-carat stones as we used to," says Pat Gibson, Vans Jewelry, Kent, Wash.
--"People are hardly asking for diamonds at all these days," says Val Hayes, Capital Jewelers, Carson City, Nev.
--"People want bigger stones, even if they have to drop from VS to SI," says Flint Carpenter, Big Island Jewelers, Kailua Kona, Hawaii.
National Jeweler
15 April 2009
Anglo American Says De Beers Will Not Require Further Loans
April 15 (Bloomberg) -- Anglo American Plc said De Beers, the world’s largest diamond producer, will not require further loans after borrowing $500 million from its shareholders in February.
De Beers management “believes that it will not require further loans,” Pranill Ramchander, spokesman for Anglo American, which owns 45 percent of De Beers, said in an e-mailed response today. “Diamonds remain a core business to Anglo’s portfolio of mining assets.”
Bloomberg
14 April 2009
Debswana to reopen some Botswana mines on Wednesday
GABORONE, April 14 (Reuters) - Debswana, the worlds biggest diamond producing company by value, said on Tuesday it would resume production on Wednesday at three of its four mines in Botswana, after suspending output due to weak demand.
A global economic slowdown has slashed demand for diamonds, leading to output cuts in Botswana, and led to a large budget deficit for the country after revenue dried up.
Debswana, a 50/50 joint venture between the government of Botswana and De Beers, which is 45 percent owned by mining group Anglo American (AAL.L), said in February it would close its Orapa, Letlhakane and Jwaneng mines from Feb. 25 to April 14.
On Tuesday, Debswana said in a statement production at the firms fourth and smallest mine, Damtshaa and at Orapa No. 2 plant would remain suspended for the rest of the year because demand was expected to be depressed.
The closures had cut production costs and preserved jobs, and given the company a chance to sell off some of the diamonds that had piled up in its inventories, it said.
It had also and carried out maintenance during the closure.
"At the time of suspending operations, the company was carrying uneconomic quantities of inventories (diamonds) occasioned by very low sales of the 2008 fourth quarter production," Debswana said.
Ratings agencies have cut the countrys foreign currency rating outlook, and forecast the economy will contract in the 2008/09 and 2009/10 financial years. (Reporting by Moabi Phia; editing by James Jukwey)
Reuters - USA
14 April 2009
What recession? Hollywood piles on diamonds
Los Angeles--As millions of Americans struggle to pay their monthly bills, the word on Main Street is that this is no time for the affluent to be showing off with flashy cars and lavish jewels.
But over in Hollywood, the show does goes on, with the biggest stars of movie and TV dressing up in diamonds and gemstones for the winter awards season, thus providing that window into the glamorous life the public so craves.
Fears that the economy might inspire drab attire and pared-down accouterments at shows such as the 81st Annual Academy Awards, 66th Annual Golden Globes and the 15th Annual Screen Actors Guild (SAG) Awards proved to be unfounded, with color and flash out in full force.
Pulled-back hair, fishtail-style gowns and classic diamond jewelry were among the style hallmarks of the Oscars, with Hollywoods leading ladies forgoing potential fashion risks and instead turning to elegant, sophisticated looks. In terms of jewelry, the most popular combination appeared to be diamond stud or drop earrings paired with a diamond ring and diamond bracelets at the wrist.
Kate Winslet, who snagged the Best Actress award, accepted her Oscar in a Chopard bracelet featuring 117 carats of multi-cut diamonds, which she paired with pear-shaped diamond cluster earrings in platinum and a diamond ring.
At the Globes, statement necklaces made a major appearance. Actress and singer-songwriter Beyonce donned a dazzling Lorraine Schwartz platinum loop necklace featuring a whopping 200 carats of diamonds, and Eva Mendes sported a much-talked-about collar-style turquoise and diamond necklace from Van Cleef and Arpels. Meanwhile, at the SAG Awards, diamonds falling all at once from the ears, neck and wrist proved ubiquitous, with actress Christina Applegate serving as a prime example by wearing looped diamonds-by-the-yard necklaces, stacked diamond bangle bracelets and drop-style diamond hoops, all by Lorraine Schwartz.
Michael OConnor, a style expert and consultant for Platinum Guild International USA, says the stars excelled in playing the roles that they know best: being celebrities.
"A lot of people asked [prior to the shows] if the mood was going to be more somber, and my thought on that is that people dont go to the movies to live in their own reality, and they dont watch any awards shows to be in their own reality," he says. "I believe that if Hollywood did not dress up and really look glam, they were not doing their job, which is helping to alleviate peoples reality and the stress of everyday life."
Andrea Hansen, international communications director for Brazilian jeweler H. Stern, had similar thoughts.
"At the end of the day, do we appreciate [celebrities] for the entertainment they bring or do we want them to emulate us?" she asks. "They have to make good movies; thats what they are paid for. They are not paid to fix the economy."
Hansen says that while a few socially and politically minded celebrities laid low amid the economic downturn (Angelica Huston, for example, skipped the September Emmy Awards, which took place the week Lehman Brothers closed), Hollywood remains relatively insulated, and box-office revenues remain strong, paving the way for business as usual.
Michael Coan, the chair of the jewelry design department at New Yorks Fashion Institute of Technology, says Hollywood has not, historically, dialed down the glamour in tough economic times.
"If you look at the 1930s, [the times] couldnt be more depressing than they are now," he says, noting that the era was a heyday for Hollywood glamour. "I think the ostentation is going down, but the elegance is in. Overall, theyre going classic, as people do in times of trouble."
Classic diamond jewelry, including studs and small drops, had a strong showing at both the Golden Globes and the SAG Awards.
Newcomer Freida Pinto, a breakout star from the film Slumdog Millionaire, wore a bolder look to the Globes, but at the SAG Awards, she donned more traditional diamond designs from Martin Katz: drop earrings, a blue and white crossover ring, and a seven-row bracelet, topped off with a second bracelet in her hair.
And some of the shows biggest winners wore simple diamond looks too, including 30 Rocks Tina Fey, in Judith Ripka stacked diamond bracelets and diamond pendant earrings at the SAGs, and Kate Winslet, who chose Chopard oval-shaped diamond drop earrings and a five-row diamond bracelet for the Globes.
Coan says that celebrities appeared to be most playful with their choice of earrings.
"Theyre bold, large and oval," he said, calling out a prevalent drop-hoop style at the SAG Awards.
Consumers can easily emulate the bold earring designs, such as those worn by Applegate and the yellow gold and ruby Bochic pair chosen by Jane Krakowski for the SAG Awards, Coan says.
"The outline is very replicable and thats very important to know," he says. "Everything they were wearing in jewelry can be modified to any price point."
And in terms of diamond jewelry, customers may be asking jewelers for lower-carat-weight versions of Hollywood pieces they like, but experts say its a good time for sales associates to emphasize the idea of "fewer, better things," as promoted in De Beers 2008 holiday campaign.
"Fashions come and go, but during a recessionary period, what you have to do is invest in pieces that you can mix and match with your outfits to create totally different looks," OConnor says.
From Hollywood to hockey moms
--Classic diamond jewelry will always be a winner. Emphasize the lasting power and versatility of traditional designs.
--Hoop earrings, from small diamond versions to oversized drop styles, were red-carpet favorites, but lightweight versions offer a big look without the big price tag.
--Style expert Michael OConnor and H. Sterns Andrea Hansen both call out long chain necklaces, which can be worn in numerous ways: long and simple, layered a few times around the neck or twisted around the wrist.
National Jeweler Network - New York,NY,USA
14 April 2009
Petra Diamonds to Auction Cullinan Blue Gems
Petra Diamonds has announced intentions to auction its rare 7.03-carat diamonds.
Officials said the centrepiece of the upcoming Sothebys Sale of Magnificent Jewels will be their important and rare fancy vivid blue, internally flawless, cushion-shaped diamond weighing 7.03 carats.
In a statement released by Russell and Associates in Johannesburg on March 31, 2009 and made available to East African Business Week, the diamond was cut from the 26.58-carat rough stone discovered in 2008 at Petra Diamonds historic Cullinan diamond mine in South Africa.
The pre-sale estimate is between US$5.8 and US$8.5 million and the buyer will have the honour of naming the diamond.
At a weight of 7.03 carats, the diamond ranks among the most important blue diamonds ever to be offered for sale by Sothebys.
The Gemological Institute of America (GIA) has graded the stone as fancy vivid blue in colour and internally flawless in clarity, the highest possible grading for a blue diamond.
"Blue diamonds, which are among the rarest of all gems, owe their colour to the presence of the chemical element boron during the stones formation. The Cullinan mine is the worlds most consistently reliable source of blue diamonds and this stone is a perfect example of Cullinan diamonds at their best," the statement said.
A marketing programme to exhibit the diamond in Hong Kong, Paris, New York and London has been arranged by Sothebys ahead of the sale to be held at the Beau-Rivage Hotel in Geneva, Switzerland on May 12, 2009.
Johan Dippenaar, Chief Executive Officer of Petra Diamonds commented: "This fancy vivid blue, flawless diamond is a very rare and unique gem.. Its quality is enhanced by its Cullinan origins, a mine that has produced some of the worlds most famous diamonds."
David Bennett, Chairman, Europe and the Middle East, Sothebys International Jewellery Department, said: "Blue diamonds are among the rarest of all natures treasures and it is very exciting to have such a fine example as the centrepiece of our forthcoming Geneva Magnificent Jewels Sale."
"This stone certainly ranks among the most important blue diamonds that I have had the privilege of offering for sale in my career at Sothebys and what makes it particularly special for us, is that weve been able to follow its production from the initial rough state through the various stages of its cutting and polishing," Bennett added.
Petra Diamonds has five producing mines in South Africa - Cullinan, Koffiefontein, Helam, Sedibeng and Star; and has also reached agreement to acquire, from De Beers, the Kimberley Underground mines.
In Tanzania, Petra has recently acquired a 75% interest in Williamson mine at Shinyanga.
Trading Markets (press release) - Los Angeles,CA,USA
9 April 2009
De Beers Diamond Sales Advance, Remain Below Normal
April 9 (Bloomberg) -- De Beers, the world’s largest diamond producer, said sales are rising this year after demand plunged in 2008 because of the worldwide economic slowdown.
“While still at lower-than-normal levels, sales have been steadily increasing since the end of last year,” spokeswoman Lynette Gould said in an e-mailed statement, dated yesterday. Cash flow was positive in March, and the Johannesburg-based company is “optimistic” about meeting annual goals, she said.
De Beers suspended mining in February at a joint venture in Botswana that produces a fifth of global diamond supply and said it would borrow $500 million from shareholders. Rio Tinto Group and other mining companies have cut production and jobs after the worst recession since World War II hurt jewelry demand.
Shutting mines and cutting jobs may help De Beers, 45 percent-owned by Anglo American Plc, to remain profitable even at “significantly lower level of sales,” Gould said. De Beers may save more than $1.5 billion of planned expenditure this year, she said. Diamond mines in Botswana probably will return to operation next week, the statement shows.
The producer’s sales may halve in 2009 after diamond prices fell at least 30 percent during the past year, the Financial Times reported today.
Less Spending
The newspaper reported one of several scenarios considered and not necessarily the most likely one, Gould said. Spending was cut to the extent that the company would remain profitable even if sales were to fall by 50 percent, she said.
De Beers said Jan. 20 it would reduce the amount of rough gems, or diamonds that aren’t cut or polished, offered to clients by about half until April.
Diamond prices fell 7 percent in the first quarter after slumping 9.2 percent in 2008, according to a PolishedPrices.com index. Tiffany & Co., the world’s second-largest luxury-jewelry retailer, reported a 76 percent plunge in fourth-quarter profit last month after even the wealthiest shoppers spent less.
Rough diamonds don’t trade on commodity exchanges. Instead, De Beers -- which sells about 60 percent of the world’s uncut gems -- holds 10 annual sales, known as sights, to selected customers from Belgium, Israel and other countries known for diamond-cutting.
The Debswana venture, which is 50 percent-owned by Botswana’s government, is expected to resume production at its Jwaneng, Orapa and Letlhakane mines on April 15, Gould said. The venture produced 32.3 million carats in 2008.
Bloomberg
8 April 2009
IDMA announces plans for international meeting
AFNS] ANTWERP, BELGIUM, 8 April 2009 – The International Diamond Manufacturers Association (IDMA) Presidents Meeting held in Antwerp announced plans to host an international conference of diamond industry bankers and service providers. The meeting will ensure that all players in the diamond supply pipeline are implementing sound and sustainable credit and business practices.
IDMA President Moti Ganz said that the organization, which is the representative body of the worlds diamond manufacturers, seeks to facilitate an open exchange of views with the aim of creating a sustainable diamond supply pipeline that should ensure a stable and viable long term growth of the diamond industry.
During these challenging times, IDMA urges the diamond industrys financial institutions to continue their support for the diamond industry and their clients based upon sound and transparent business practices.
"The current economic crisis has made it apparent that were living in a different world where new rules apply," Ganz said. "Therefore, it is important that we organize a high-level conference with the banks -- our financial partners and credit providers -- to discuss what new financially sound business models we need to implement," the IDMA President stated.
A service of the Antwerp Facets News Service (AFNS).
8 April 2009
Diamonds - an investors best friend?
Some investors worried about the financial crisis are putting their money into these slow, steady earners.
A growing number of Polish investors are sheltering their money from the financial crisis by investing in diamonds. According to P½emysl Synek, general director of Diamonds International Corporation (DIC), the price of diamonds has risen for the last 100 years and annual growth on the global diamond market has come in at between three to seven percent over the past 20 years.
"Every wise investor diversifies his wealth and diamonds are one means of investing money; they are considered the second safest [investment] after gold," said Synek, whose Czech-based company was established in 2005. Its Polish subsidiary was launched a year later.
REKLAMA Czytaj dalej
In mid-2007, when the first signs of a global slowdown started to become visible, the diamond industry noted a significant rise in demand. Then in 2008, due to the falling US dollar, diamond prices jumped by as much as 50 percent, according to Synek.
"At the end of last year the yield stabilized at nine percent annually, which can be considered a success, given the crisis circumstances," he continued.
David Franke, CEO of DIC PL, explained the appeal of diamonds. "They are a world currency, can be capitalized quickly and are hard to destroy. Plus diamonds are a symbol of fashion, success and social status," said Franke.
Investments can start at a one carat gem, and a stones cut, color and clarity are all taken into consideration when assessing its value. For example, a high-quality four-carat stone is worth around E120,000 (zł.563,800).
Asked about negative associations with diamonds, particularly African "blood diamonds," the company explained that it is a member of the Antwerp Diamond Bourse (Beurs voor Diamanthandel), which carefully monitors the source of diamonds.
Wirtualna Polska - Gdańsk,Poland
8 April 2009
D Flawless marquise diamond earrings sell for HK$13 million
April 8 (Bloomberg) --
The top jewelry lot was a pair of marquise-shaped D-color flawless diamond earrings, weighing 16.58 carats in total, which fetched HK$13 million. Diamonds graded D are considered colorless; a carat is one-fifth of a gram.
Sotheby’s said mainland Chinese clients were among the top buyers. Of the 10 priciest watches sold, four went to Chinese bidders, said Vanessa Herrera, head of the watch department.
“We saw a number of new buyers from mainland China, many of whom were transacting at levels that we have not seen,” Quek Chin Yeow, Sotheby’s head of jewelry department and the deputy chairman for Asia, said in a statement.
Diamonds outshone jadeite, which doesn’t have an established resale market. Competition was especially fierce for diamonds of 5 carats or larger with few flaws.
The sale continues today with the auction of Chinese ceramics and other artifacts, including an 8th-century tortoiseshell vanity box given to Japan’s Emperor Shomu that’s expected by Sotheby’s to fetch more than HK$40 million.
Sotheby’s buyer’s commission is 25 percent of the hammer price for the first HK$400,000, 20 percent for between HK$400,001 and HK$8 million, and 12 percent above that.
Bloomberg
5 April 2009
Found on the Street: Jacket with Pockets Filled with Diamonds
IDEX Online Staff Reporter
2 April 2009
Polished Diamond Prices Mostly Steady in March
(April 2, 09, 15:04 Ken Gassman)
Much like stock prices on the world’s financial markets, polished diamond prices appear to have stabilized in the past month or so, based on the IDEX Online Polished Diamond Price Index. Average polished diamond prices declined in March 0.6 percent versus average diamond prices during February and dipped by 7.3 percent versus March 2008.
In one or two specific categories, prices seem to be inching up, though it is far too soon to call this a trend. However, there was some price weakness – which we view as temporary – at the end of March.
Prices of larger diamonds – 3 carats and up – appear to have stabilized around the long term trend line, after their price bubble burst in late 2008. While prices of smaller diamonds – 2 carats and lower – appear to be in a holding pattern, they are selling at prices below their long term trend line.
We believe that demand for larger diamonds may have stabilized for two reasons: 1) investors have been focusing on larger stones; and, 2) very high-end old-money consumers are not as pinched as newly wealthy consumers who had been buying large stones. It appears that some of these old-money shoppers are in the market seeking bargains in superior quality polished diamonds.
On the other hand, in the U.S. market, demand at the mass market – typically where most 0.5 to 2.0 carat diamonds are sold – has recovered more solidly than demand at the high end. For example, Sterling Jewelers (Kay, Jared and regional brands) reported that its same-store sales were down only 2.7 percent for February and most of March. In contrast, Tiffany indicated that its U.S. same-store sales were down in the low 20 percent range for the same period.
Overall, despite negative numbers, the sales figures for Sterling and Tiffany are encouraging (we never thought we could say that a 20 percent decline in same-store sales was positive). Here’s why: in the 2008 holiday selling period, Sterling’s same-store sales fell by16.4 percent, so a recovery to a 2.7 percent decline represents a real victory. For Tiffany, its same-store sales fell by 39 percent in November, and have now recovered to a decline in the low 20 percent range. The absolute numbers aren’t pretty, but the sales trends are clearly positive.
Further, there are anecdotal signs that the American consumer – optimistic by culture – has had enough bad news. The media is being bashed for being so negative. For example, Stephen Joyce, CEO of Choice Hotels (5,800 hotels with 470,000 rooms), said, “When we stop barraging people with bad news, they will take a deep breath and go back to work.” (Financial Times, March 30, 2009). Forbes.com just published an article in which the writer irresponsibly began with these words: “Sadly, someday this recession is going to end.” The media won’t have anything unpleasant about which to write, if the recession ends.
Consumer confidence is not a harbinger of consumer demand – despite what the mass media claims – but it appears to have stabilized in March. At least, consumers aren’t feeling any worse.
In our opinion, we are probably past the worst of the recessionary environment. In the U.S., most economists, along with the Federal Reserve, believe that the American economy will begin to recover sometime in 2009. America’s government was very aggressive in the steps it took to keep the economy from plunging into a depression. In fact, it has been much more aggressive than any other country in the world (some would argue that President Obama implemented recovery programs so quickly that he was heard to say “Ready, Fire, Aim.”) Whatever you believe, the American economy is substantially more stable and resilient than most people understand.
Because of the strength and resilience of the American economy, we believe that diamantaires who have deserted this huge market – representing an estimated 50 percent of global diamond sales – in search of emerging markets elsewhere in the world may have made a strategic error. There may be pockets of vibrancy here and there in overseas markets, but the aggregate spending power of consumers in those markets is far too small to make them viable for diamantaires over the long term.
March Polished Diamond Price Trends Encouraging
Based on March data, polished diamond prices are no longer in a free fall, according to the IDEX Online Global Diamond Price Index. After peaking last summer, polished diamond prices declined sharply beginning in October 2008, a trend that continued through January. However, while diamond prices softened during the last week of March – a temporary anomaly, in our opinion – they have stabilized from prior months’ weakness.
While diamond prices fell through the long term trend earlier this year, we are not particularly concerned. Actual prices move up and down to generate what mathematicians call a “sine wave.” Much like waves in the ocean, prices are characterized by sine waves which surge, reach a peak, then pull back substantially, only to build, surge, and wane again. We believe that we may be near the bottom of the sine wave for polished diamond prices, based on a mathematical analysis of the current diamond price trend line. Will reality follow the mathematical projection? Only time will tell. (Still confused about a “sine wave?” Google it and read Wikipedia’s explanation.)
Monthly Polished Diamond Price Trends:
March 2009 versus February 2009: (0.6 percent)
For the month of March, average global polished diamond prices declined by a miniscule 0.6 percent versus average diamond prices during February. This represents a reversal of substantial month-to-month price declines that we experienced earlier this year. We view this as a positive sign.
Further, it reflects a general stabilizing of financial and commodities markets around the world. Diamond prices began to soften in the early fall of 2008, after almost six months of unusually high inflationary pricing for polished stones.
On an annualized basis, March’s price decline represents about a 7 percent annual deflation rate for polished diamonds. Compared to prior months – February’s decline was about 50 percent on an annualized basis – March’s price decline is a welcome respite from the bad news coming out of the market in recent months.
The current deflationary trend is beneficial to downstream participants in the diamond pipeline since their margins have been squeezed for sometime, with a particular tightening in 2008.
We believe history is a great forecaster for the future. As we have seen in March, the rate of diamond price deflation has begun to moderate. The longer term inflation rate will return, in our opinion, perhaps this year or by 2010. The IDEX Online Polished Diamond Price Index, calculated on the average daily, stood at 109.96 for the month. At the end of March, the IDEX Online Polished Diamond Price Index had slipped to 109.17, reflecting weakness that we view as temporary. The IDEX Online Polished Diamond Price Index stood at 100.00 in July 2004.
Beginning in the first quarter of 2008, polished diamond prices showed large gains during every month in the first half of the year. Since then, prices have generally decreased as consumer demand has weakened.
March 2009 versus March 2008: (7.3 percent)
On a year-over-year basis, global polished diamond prices dipped by 7.3 percent in March versus March 2008. This was the ninth consecutive month of deceleration of year-over-year price increases for polished diamonds, and it was the third month that year-over-year prices dipped. At first glance, March’s year-over-year deep price decline appears to be worrisome, but upon further examination, it is less of a concern. Polished diamond prices began their surge in March of 2008, so comparisons against those “bubble” prices look unfavorable. In subsequent months, we could continue to see significant percentage declines, but they are more of a mathematical anomaly than a reflection of reality. While this measure has dipped below the historical trend line annual inflation rate of 3-4 percent, we believe that diamond prices will return to their historic annual inflation in the future.
The historical inflation rate is sustainable, in our opinion, over the long term. While some forecasters are predicting a “new economy,” diamonds and diamond demand have remained more or less on the sidelines during the recent turmoil in the commodities markets. Thus, we believe that they are more likely to remain relatively untouched in the future, once the U.S. and the global economies stabilize. Based on 50,000 or more years of solid demand based on archeological and historical evidence, we do not expect to see any major shift in consumer demand for diamonds or other jewelry as the future unfolds. Further, diamonds are a “green” purchase. That is clearly something that other luxury goods cannot claim. Finally, we believe that polished diamond prices will ultimately reflect market demand and supply; when demand stabilizes, prices will stabilize. The IDEX Online Polished Diamond Price Index stood at 109.96 in March 2009 versus 118.62 in March a year ago.
Prices of Larger Diamonds Stabilizing
In March, price declines slowed, especially among the larger diamond sizes – 3 carat and above.
Forecast: Diamond Prices May Be Stabilizing
We’ve been surprised to see that the descent of polished diamond prices has slowed. We had been forecasting further significantly softening. But, as they say on Wall Street, “don’t fight the tape.” The polished diamond price trends we’ve seen in February and March are encouraging. Diamond prices have remained far less volatile than stock prices, so we think the current trends may suggest that the market has about reached bottom. Unlike the stock market which will continue to test historic lows before it moves solidly into bull territory, diamond prices don’t move quickly, and thus, won’t be testing for the low point.
It’s not time to celebrate, but unless we get some surprises in April and May, we may have seen the worst.
The IDEX Online Diamond Price Index
The IDEX Online Diamond Price Index is a real-time index derived from actual asking prices in the global diamond industry. The IDEX Online Diamond Price Index objectively reflects price trends as they happen. The Diamond Index and Diamond Drivers were formulated following comprehensive research and analysis of the IDEX Online inventory database, aggregated since 2001. Research and development were conducted in cooperation with Dr. Avi Wohl, Senior Lecturer of Finance at the faculty of Management, Tel Aviv University, Israel.
IDEX Online
2 April 2009
GROWING INCIDENCE OF UNDISCLOSED TREATED DIAMONDS IN AUSTRALIA
DCLA Warns of Undisclosed Treated Diamonds In Australia
(April 2, 09, 10:17 Edahn Golan)
The Diamond Certification Laboratory of Australia (DCLA) said on Wednesday that it has been seeing a growing number of treated diamonds being submitted to the lab as natural diamonds.
Following is the warning DCLA published on its website and via email:
DCLA has seen an alarming increase in the number of treated diamonds being submitted as natural diamonds to the laboratory for certification.
It should first be said that diamond treatments are neither good, nor intrinsically bad in and of themselves. There is nothing wrong with buying a treated diamond, provided that the treatment is fully disclosed and that you pay the appropriate price for the diamond. Because of their lower cost and value, treated diamonds can allow a person to buy a diamond that appears to be of a higher quality than it truly is.
However, too often the presence of such diamond treatments is concealed. Whether this deception is by intent or negligence, such concealment is tantamount to fraud.
Not only does artificially treating a diamond significantly reduce its value, but most diamond treatments are unstable and reversible. For this reason, all internationally accepted rules for diamond grading forbid the certification of treated diamonds. An extremely disturbing discovery just recently in the DCLA Laboratory was that of a coated diamond accompanied by a certificate from a supposedly legitimate Australian ‘laboratory’.
Members of the diamond industry have a responsibility to consumers to convey accurate and transparent information, and each individual that handles a diamond as it moves down the diamond pipeline from the mines should be held accountable for making known any treatments that a diamond has undergone.
It is deceptive and unfair to fail to disclose treatment of a diamond when it has a significant effect on a diamond’s value. In its pursuit of consumer protection, DCLA is offering a ‘Diamond Amnesty’ for diamond owners Australia-wide – any diamond brought in with its matching diamond grading certificate will be verified for grading accuracy and tested to ensure that it is natural and free of treatments. This service will be provided free of charge.
IDEX Online
2 April 2009
Jewelry Demand Seems to Have Stabilized for Tiffany
The media’s doomsday naysayers, along with the bears of the investment world, were probably disappointed with Tiffany’s fourth quarter and full year results. Not only were earnings (excluding unusual items) above management’s forecast, but a drill-down analysis into the company’s sales trends indicates that demand has stabilized, and the trend seems to point toward improving results.
We note that it may have been hard to discern these encouraging bits of news based on the company’s news release, but you need to remember: SEC lawyers dictated how the financial results must be disclosed.
We’re not sugar-coating Tiffany’s results for the fourth quarter and year: they were extremely disappointing. However, they represent a broad view of the period. For example, Tiffany’s U.S. same-store sales declined by a whopping 33 percent in the quarter. Month-by-month, they were down 39 percent in November (versus +7 percent in November 2007); down 33 percent in December (versus -5 percent in December 2007); and, down 23 percent in January (versus flat in January 2008). It is clear that, after adjusting for the prior year’s comparisons, Tiffany’s sales decline has been moderating since its woeful November performance.
However, management did note that the sales decline appears to have hit a plateau in the first quarter – the decline is no worse, nor no better, than fourth quarter trends. In our opinion, that is reason for encouragement. Comparisons against last year are reasonably difficult, with worldwide sales up 8 percent (constant currency) in last year’s first quarter, so a worldwide sales decline of 20 percent or slightly more in the first quarter of this year isn’t as bad as it might seem initially.
Fourth Quarter Results Analysis
Tiffany’s global net sales declined 20 percent in the fourth quarter. However, excluding the impact of currency swings, global net sales declined by 19 percent and global same-store sales declined by 23 percent on a constant currency basis. “Constant currency” comparisons show the underlying demand trends, since currency swings are eliminated. However, GAAP (Generally Accepted Accounting Principles) require companies to report results including currency swings; we believe this distorts results for multi-national companies such as Tiffany.
Sales in the Americas – including the U.S., Canada, and Latin American/South American stores –declined by 29 percent in the fourth quarter. Difficult economic conditions in the U.S., coupled with heavy price-based promotions by competitors, hurt demand for Tiffany’s merchandise.
In the U.S. market – 76 stores – total sales declined 30 percent in the fourth quarter, and same-store sales dropped by 33 percent. Both the number of transactions and the average ticket fell in the fourth quarter in Tiffany’s U.S. stores. The table below summarizes additional detail about Tiffany’s U.S. sales as well as sales in other global markets.
Tiffany management noted that its sales per gross square foot of store space in its New York Flagship unit were about $6,500 last year. This compares to the typical independent jeweler’s sales of $483 per square foot, according to the Jewelers of America (JA) Cost of Doing Business Survey (2007 edition). Tiffany’s New York Flagship store on Fifth Avenue represents about 10 percent of corporate sales, or about $286 million, more or less. That’s the equivalent of about 285 independent jewelers, based on JA statistics that show the typical independent generates annual sales of just over $1 million. Tiffany is an AGS (American Gem Society) jeweler – these jewelers tend to be higher-end merchants whose methods of doing business are superior to other jewelers; the typical AGS jeweler generates annual per-store sales of just over $2.4 million. Thus, Tiffany’s New York Flagship store generates about the same amount of business as about 120 typical AGS stores.
Tiffany’s five highest volume stores in 2008 were – in order – 1) South Coast Plaza in Costa Mesa, California; followed by stores in Chicago, San Francisco, Beverly Hills, and the Washington, DC store in Vienna, Virginia.
Every price strata reflected a sales decline. However, the sales decline was more modest in merchandise priced below $500 and above $50,000.
In the U.S., sales to Americans declined by about the same amount as sales to overseas tourists. As the U.S. greenback strengthened near the end of 2008, overseas tourists’ trips to the U.S. – along with their spending – declined. For the full year, sales to foreign tourists who shopped in Tiffany’s U.S. stores represented 16 percent of U.S. sales versus 14 percent in 2007 and 11 percent in 2006. The very weak U.S. dollar early in 2008 helped boost tourist spending in the first half.
Tiffany’s online and catalog sales declined by 20 percent in the quarter due to a lower number of orders shipped. The average ticket held relatively steady. There was a modest decline in the number of catalogs mailed in 2008, a trend that will continue into 2009, as more customers shift to ordering goods online rather than via the catalog.
In Canada, Tiffany posted “healthy” sales growth in the fourth quarter. This was in stark contrast to Birks & Mayors which posted an 18 percent same-store sales decline for its fourth quarter.
Sales for Tiffany rose in Brazil, but were soft in Mexico during the fourth quarter ended January 2009.
Sales in Tiffany’s “other” channel declined by 71 percent in the fourth quarter due largely to reduced wholesale sales of diamonds. In addition, results from the under-performing Iridesse pearl stores are included; this division will be shut down gradually during 2009. Sales in the “other” channel were a mere $66.7 million for the year, or about 2.3 percent of corporate revenues, an inconsequential level.
During 2008, Tiffany opened 22 new stores, and finished the year with 206 locations in 21 countries. This is a 12 percent increase in the number of Tiffany locations, and a 9 percent increase in square footage. The company operates 935,000 gross square feet, including 600,000 in the Americas, 242,000 in the Asia-Pacific region and 93,000 in Europe.
By merchandise category, high-end statement jewelry sales posted a worse decline than the company average. This correlates to other trends that we are seeing. For example, the Financial Times carried a news story (March 27, 2009) which stated, “For years the conventional wisdom was that large diamonds were the most prized jewelry possessions. Yet attitudes to conspicuous consumption have changed in tandem with the downturn in the global diamond business during the worldwide recession. As a result, consumers’ decisions are more considered: a diamond the size of Manhattan now teeters on the edge of the distasteful, while investors want more for their money than simple stones devoid of design innovation.”
Sales of fine jewelry collections were also disappointing, with lower unit sales and a decline in the average ticket, particularly in the Americas.
Engagement jewelry sales were down less than average; bridal is a relatively stable category. Contrary to some media reports, the number of weddings does not decline in recessionary periods.
Silver and gold jewelry also posted a smaller sales decline than the company average. Management said sales of charm jewelry were strong. Tiffany has introduced a new collection called Tiffany Keys, a collection of pendants in a wide range that spans platinum and diamond, gold, and silver.
Watch sales were soft for Tiffany in the fourth quarter. However, the company is touting its new relationship with the Swatch Group which will result in new designs and expanded distribution during 2009.
As a result of the recessionary environment as well as reviewing its total financial outlook, management highlighted the changes it has made in its operations in recent months.
It closed its diamond facility in Yellowknife Canada due to its high cost and lack of new rough diamond supply opportunities in Canada.
It offered early retirement to 800 employees, of whom 600 elected to participate.
The Iridesse pearl division is being phased out.
Selective staff reductions have been completed.
Its investment in a diamond mining company has been written down.
Its new store opening program has been trimmed for 2009. After opening 22 stores in 2008, about 13 units are planned in 2009. In the U.S., three new stores are planned. An additional store is planned in Toronto as well as Mexico. Outside the U.S., a new store is slated to open in Europe, and seven units are scheduled to open in the Asia-Pacific region including China.
Tiffany’s capital expenditures will likely be about $100 million this year or just under 4 percent of projected sales, down considerably from its normal 6 percent to 7 percent of sales.
It has suspended the buyback of TIF shares to conserve cash.
Management’s outlook for this year (fiscal year ending January 2010) is as follows:
Global sales are expected to decline by about 11 percent to $2.6 billion. This is in the range of the IDEX Online Research sales forecast.
Sales in the Americas – mostly the U.S. – are expected to decline by a mid-teen percentage. Sales declines will be larger in the first half than the second half of the year.
Online and catalog sales are expected to decline by a high single-digit percentage.
In global markets, the company is looking for a 10 percent sales decline in local currency in the Asia-Pacific region, including Japan. In Europe, sales in local currency are expected to be about flat. Wholesale sales of diamonds are expected to be down by about 20 percent for Tiffany. We note that these numbers do not coincide with the numbers that Tiffany reported in its press release. Because of legal regulations, the company must report its estimated sales in dollars; thus, management must guess at demand levels by market and potential currency swings. Even professional financial managers have difficulty guessing currency swings. With Tiffany’s management guidance, we have taken out the forecasted currency swings, and shown forecasts in local currency by market.
Profits will be under pressure.
Tiffany is approaching the recessionary environment like any good merchant: as competitors close their doors, it means more market share for Tiffany. Further, since the jewelry business is relatively capital intense, and since capital is scarce, there are likely to be few new entrants into the market.
The company plans a continuing program of new jewelry and collections in order to provide something new for its loyal customer base.
IDEX Online Staff Reporter
31 March 2009
Ten Things To Buy Before The Economy Improves
Sadly, someday this recession is going to end.
After 17 months of steep decline, both the presidents Council of Economic Advisors and the Federal Reserve now believe the economy will begin to recover sometime in 2009.
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Yahoo! BuzzGreat news, to be sure. But its also a warning to consumers: The deals youre seeing on everything from houses and cars to televisions and furniture wont last forever. Luckily, for a host of goods and services, the sale of the century (literally) is still on.
In Pictures: 10 Things To Buy Before The Economy Improves
The reason is simple: no buyers. Personal savings in 2008 were nearly six times greater than in 2005, amounting to $191 billion or 1.8% of the nations disposable income. In 2009, annualized savings for January and February exceeded $450 billion, or more than 4% of disposable income.
For those feeling bold enough to bargain shop, opportunities abound. Some deals, like housing and automobiles, might be obvious, but others, like diamonds, might not be.
Forbes - NY,USA
1 April 2009
Economic slowdown not affecting wedding spending, report says
A survey by Modern Bride magazine found that couples planning to wed are not scaling back on their wedding budgets despite the financial slowdown, but are moving their expenses to other items such as the honeymoon, photography and the engagement ring.
The study also found that 90 percent of brides reported they were either sticking to their original budget or planning to increase their spending.
The magazine study found that 86 percent of the brides-to-be were spending the same amount on jewelry as six months ago or even more.
A service of the Antwerp Facets News Service (AFNS).
31 March 2009
Leviev Observes a Jump in Demand for Rough Diamonds During March
RAPAPORT... Demand for rough diamonds is on the increase following months of depressed sales at the mines. Diamond mogul Lev Leviev told journalists in Tel Aviv Monday that demand for rough diamonds in March rose 50 percent compared with February, TheMarker reported. He added that rough prices grew 10 percent during the month.
Demand for rough fell dramatically when the economic crisis hit in the third quarter of 2008, as diamantaires cut back their purchases because of the fall in sales of the polished end-product and the lack of available credit to finance their inventory purchases. Leviev said that the depressed market was a result of the banks tightening their lending to the industry, which influenced prices to fall and the mining houses, including majors De Beers and ALROSA, to cut down on production.
Leviev’s comments support earlier industry reports of a more positive mood at rough tenders in March, which brought higher winning bids than in previous months. Reports from the major diamond centers — Antwerp, Tel Aviv and Mumbai — indicated a rise in business activity in March as polished prices stabilized. Diamantaires were reportedly looking to buy rough again. The true litmus test will come at the Diamond Trading Company (DTC) March/April sight, which is underway this week. The estimated values of the past three DTC sights have averaged around $100 million, about one-fifth the value of those a year ago.
Leviev’s LLD Diamonds saw its exports from Israel drop 20 percent in 2008, but it was still the country’s top diamond exporter. The company owns a polishing factory in Namibia, which scaled back operations earlier in March, dismissing 77 out of approximately 107 workers at the facility. Leviev also operates a luxury jewelry retail business. Leviev’s property holding company Africa Israel on Monday reported a net loss of $638.4 million (NIS 2.7 billion) for the fourth quarter of 2008, compared with profits of $66 million (NIS 278 million) a year earlier.
Rapaport News
31 March 2009
Diamond May Get $8.5 Million at Sotheby’s
March 31 (Bloomberg) -- Petra Diamonds Ltd., a miner of the gems in Africa, plans to sell its first cut and polished stone at Sotheby’s in an auction that it estimates will fetch as much as $8.5 million.
The 7.03-carat blue diamond was cut from a 26.58-carat rough stone found at its Cullinan mine in South Africa, St. Helier, Jersey-based Petra said today in a statement. A carat equals 0.2 gram. The gem will be exhibited in Hong Kong, Paris, New York and London before being auctioned in Geneva on May 12.
“This stone certainly ranks among the most important blue diamonds that I have had the privilege of offering for sale,” David Bennett, head of jewelry for Europe, the Middle East and international at Sotheby’s, said in a separate statement today.
Petra, which previously sold rough diamonds for other companies to cut and polish, is getting involved in marketing and selling as industry demand plunges because of the world economic slump. De Beers, the world’s largest producer, has closed mines. Miner and retailer Harry Winston Diamond Corp. said yesterday it plans shutdowns at the Diavik mine in Canada.
“Rough-diamond prices currently aren’t that good, so we decided to go this route and ensure the stone gets maximum exposure,” Petra Chief Executive Officer Johan Dippenaar said in a telephone interview. “Sotheby’s is known to sell rare items, be it art or a stone like this.”
$7.9 Million
Polished diamond prices have dropped 15 percent in the past six months, according to an index from PolishedPrices.com.
Sotheby’s sold a vivid blue emerald diamond in October 2007 for a then-record $1.32 million per carat. The 6.04-carat stone fetched $7.9 million in Hong Kong, the company said. It has since sold two further pear-shaped blue diamonds for $4.9 million and $4.7 million.
Petra sold a 39.19-carat rough blue diamond from Cullinan for $8.8 million in October. The world’s most expensive blue diamond is the 17th century Blue Wittelsbach Diamond, which fetched $24.3 million at Christie’s in December, according to the International Colored Gemstone Association’s web site.
Petra dropped 0.25 penny, or 1 percent, to close at 24.75 pence in London trading. The shares have slumped 69 percent this year, the second-biggest decline in the 135-company FTSE AIM Basic Resources Index, which has gained 24 percent.
Bloomberg - USA, By Thomas Biesheuvel
30 March 2009
Malaysian Designer to Debut $30 Million Diamond Dress
Malaysian designer Faisol Abdullah is creating the worlds most expensive dress decorated with 751 diamonds from Middle Eastern jeweler Mouawad. The $30 million frock tops Chris Aires $20 million diamond dress (above) created last year and ties the $30 million diamond bikini in terms of the worlds most expensive item of clothing. Abdullah plans to debut the silk and taffeta evening gown, which features a central 70 carat pear-shaped diamond and is dubbed the "Nightingale of Kuala Lumpur," in time for next months STYLO Fashion festival in the Malaysian capital. Mouawad, which produces Heidi Klums jewelry line, is a red carpet favorite of Nicole Kidman, Angelina Jolie, Jennifer Lopez and Britney Spears.
"Stocks drop, gold is even falling but a diamond is forever," Abdullah tells Reuters. "This is a dress with diamonds. Why go backwards, why cant we go forwards? We are going to the fantastic, but its real. You are getting value for money with these diamonds." "Its a security and insurance nightmare buts its worth it," adds Antoine Bakhache, head of Mouawads Asia operations. "Its not throwing $30 million right down the drain, it is an investment for the super-rich." Nancy Yeoh, chief executive of STYLO which commissioned the dress, says they plan to present the garment to royal courts around the world starting with the Middle East, noting, "Its art and there are still enough rich people who would want to buy."
Luxist - Santa Monica,CA,USA
26 March 2009
Tiffany expands Internet marketing with Facebook page
NEW YORK, USA, 25 March 2009 – In a new marketing step for the jewelry industry, Tiffany and Co. has decided to enter the sphere of social networking with a page on the Facebook social networking website. The page aims to create contact with fine jewelry lovers across the globe.
The page was created last month, and has already received 124,000 visits from surfers interested in viewing Tiffany jewelry designs and are providing feedback.
The page provides links to Tiffanys environmental awareness campaign and provides a platform for surfers to discuss issues with the jewelry retailer.
A service of the Antwerp Facets News Service (AFNS).
26 March 2009
Harry Winston soars after Kinross announces investment
NEW YORK, USA, 25 March 2009 – Shares of miner and jewelry retailer Harry Winston Diamond Corp, which have slumped in the last year, jumped after it announced it had received a $150 million investment from Kinross Gold Corp.
Kinross will acquire a minority 22.5 percent interest in the partnership that holds Harry Winstons 40 percent interest in the Diavik diamond mine in Canadas Northwest Territories for $104.4 million. The other 60 percent of Diavik is owned by Rio Tinto.
The other $45.6 million will buy an almost 20 percent stake in Harry Winston Diamond Corp with 15.2 million shares at $3 each.
"We are acting on a rare opportunity to acquire a stake in one of the worlds great diamond mines, operating in northern Canada," said Kinross CEO Tye Burt. "We view diamond mining as complementary to our core business of gold mining."
A service of the Antwerp Facets News Service (AFNS).
24 March 2009
Christie’s Places 30ct D/IF Diamond on the Block
While the large and exceptional diamonds were the gems that suffered the worst price tumble in the current financial crisis, Christie’s still has a strong belief in their viability. The auction house is offering a number of high-end diamond items, some estimated at about $1 million.
Christie’s Jewels Sale in New York on April 22 will offer diamonds, colored gems, and signed jewels including Antique, Belle Époque, Art Nouveau, Retro and Contemporary creations. Five jewels created by JAR are leading highlights in the sale.
Leading the diamonds in the sale is a pear-shaped diamond ring of 30.02 carats, D color and internally flawless clarity, set with an intense pink diamond band. Christie’s did not publish an estimate for this item, saying it will provide one on request.
Other highlights include a rectangular-cut diamond ring of 32.72 carats, D color and VS1 clarity estimated at $1.4 - 1.8 million, and a pear-shaped diamond pendant of 15.05 carats by Harry Winston, D color and VVS2 clarity, with an estimated sale price of $700,000 - $1 million.
Among the colored diamonds in the sale is a fancy grayish yellowish green "chameleon" briolette-cut diamond pendant necklace of 19.13 carats estimated at $800,000 - $1.2 million. The color of this diamond changes temporarily when gently heated, or when left in the darkness for a period of time and is therefore referred to as a “chameleon” diamond – this is the largest briolette-cut chameleon diamond in the world to be offered at auction.
The sale includes signed and vintage jewels, featuring an impressive antique ivory and multi-gem elephant, circa 1900, which is carved from a single piece of ivory.
“This exotic elephant is a rare relic of Indian refinement and a symbol of great power and prestige,” Christie’s writes in the auction catalogue. It has chrysoberyl bejeweled eyes, pearl tassels and golden toenails. The purple velvet carrying case is befitting of those made for orders originating on the Indian subcontinent, so this showpiece was likely made for an important Indian family. The auction house valuators estimate the value of the elephant at $80,000 - $120,000.
IDEX Online Staff Reporter
24 March 2009
Tiffany Q4 Net Sales Declined 20% to $841.2 Million
(March 23, 09, 9:31 Edahn Golan)
Tiffany & Co. reported on Monday a decline in fourth quarter earnings. Worldwide net sales declined 19 percent and comparable store sales declined 23 percent. Sales declines of 29 percent in the Americas were the most significant contributing factor to the company’s sales decline.
Fourth quarter net sales declined 20 percent to $841.2 million. On a GAAP-reported basis, net earnings in the fourth quarter were $31.1 million compared with the prior years $127.4 million, a 75.6 percent drop.
Annually, net sales of $2.86 billion were 3 percent below the prior year. On a constant-exchange-rate basis, worldwide net sales and comparable store sales declined 4 percent and 9 percent. The full years net earnings were $220.0 million versus $323.5 million in the prior year.
“Tiffany has clearly not been immune from global economic turmoil in recent months and we are taking a cautious view to business conditions in 2009,” said Michael J. Kowalski, chairman and chief executive officer. “We have addressed our cost structure in order to maintain reasonably healthy levels of profitability and strong liquidity, and position Tiffany for future growth.”
The companys earnings included pre-tax charges of $7.5 million due to inventory and other charges related to the closing of the IRIDESSE operations
In the fourth quarter, Tiffany offered an early-retirement package to approximately 800 U.S. employees and approximately 600 accepted the offer. Combined with additional staff reductions that were made and the anticipated closing of IRIDESSE stores, management expects to incur a reduction of 10 percent of worldwide staffing. This is expected to generate approximately $60 million of pre-tax savings in 2009, to be realized in selling, general and administrative expenses and in cost of sales.
In the Americas, fourth quarter sales of $458.9 million were 29 percent below the prior year and full year sales of $1.59 billion were 10 percent below the prior year. Comparable U.S. store sales declined 33 percent in the fourth quarter and 16 percent in the year. This included New York flagship store sales declines of 34 percent in the quarter and 9 percent in 2008.
“We have not yet seen signs of an upturn in our business with worldwide sales in the quarter-to-date declining more than 20 percent, which is in-line with our expectation,” Kowalski said in his 2009 Outlook.
“Our planning is based on the assumption that economic conditions will remain challenging throughout the year.” The company expects a worldwide sales decline of approximately 11 percent in 2009 and sales declines in the mid-teens percentage in the Americas.
IDEX Online
23 March 2009
Alrosa Acting to Form Investment Diamond Market
Russian diamond monopoly Alrosa is a step closer to forming a market for investing in diamonds, after it has signed an agreement with asset management company Leader to create an infrastructure for trading in such diamonds.
The agreement, signed Thursday March 19 by Alrosa President Sergei Vybornov and Leaders CEO Anatoly Gavrilenko, calls for the formation of an investment center that will also provide banking services, diamond backed loans, diamond evaluation and certification services as well as risk insurance.
According to Interfax, specialized stock market tools, which include the option to buy shares in mutual funds backed by investment-graded diamonds, may also be instituted.
“Its an attempt to create a new class of investor, who will put money into a new product, the base for which will be Alrosas diamond stocks,” the Russian news agency Interfax quoted Vybornov.
According to Vybornov, the companies expect a $500 million diamond investment market to emerge in the short term, while cautioning that there are regulatory problems that wont be quickly resolved.
Gavrilenko said his company has asked the Federal Financial Markets Service (FFMS) to adjust regulations to allow the formation of such a market place, adding that initially small closed funds could be set up with a limited number of investors.
Alrosa is reportedly overhauling its sales system, forming three individual divisions: sorting, customer relations, and marketing and sales. The company said this would be done “in order to eliminate conflict of interests which arise when one division is responsible for all three functions.”
IDEX Online
20 March 2009
GIA to Debut Mini Jewelry Career Fair
The Gemological Institute of America (GIA) will debut a “GIA ‘Mini’ Jewelry Career Fair” in Las Vegas on May 31 during the JCK Show.
The fair, sponsored by JCK Events, will be a condensed version of the Institute’s popular career coaching and job search events that have helped place job candidates in the jewelry industry for the last 18 years.
The career fair will focus on how to thrive in a challenging economy. It will include a “Working to Win” panel featuring some of the industry’s top executives and career coaching sessions with business leaders providing advice in various subject areas.
Although there will be no on-site recruiting, GIA will provide information on the career opportunities being offered by show exhibitors and buyers.
IDEX Online Staff Reporter
20 March 2009
Scholarships for Children of Jobless Indian Diamond Workers
India’s Gem & Jewellery National Relief Foundation donated Rs. 18 million ($357,210) to help educate 36,000 children of diamond industry workers in Gujarat. The funds will pay for tuition in the coming academic year and will be given directly to the schools.
The scholarships will pay for tuition for children in 1,309 schools across Gujarat. This includes 540 schools in Ahmedabad, 70 schools in Amreli, 167 schools in Bhavnagar, 80 schools in Navsari, 92 schools in Palanpur, 140 schools in Surat and 220 in Surendranagar.
Hundreds of thousands of people working in diamond manufacturing in India have lost their jobs as a result of closures and scale backs in the industry.
“The industry has voluntarily come forward in a bid to alleviate the suffering of those affected, and wants to save the school year of their children. We further wish to work towards a subsidized food distribution program, and would like the State Government to help us implement this.”
“Diamond workers are nurtured and cultivated by the industry over decades. They help the industry maintain its leadership position in the world markets. It is essential to continue with relief measures over the next six months,” he added.
IDEX Online Staff Reporter
17 March 2009
DMCC Consolidates Diamond, Pearl and Gems Under One Management
The Dubai Multi Commodities Centre (DMCC) decided to consolidate its diamond, pearl and colored exchanges into a single unit, the Precious Gems Division. Coloured Stones & Pearls Executive Director Gaiti Rabbani has been appointed executive director of the division as well as chief executive officer of diamond exchange.
The DMCC decided on the move to achieve greater working synergies and pursue strategic growth opportunities, Rabbani told IDEX Online.
The new division will include the activities of the DMCC’s Diamonds Division, Coloured Stones & Pearls Division, Dubai Diamond Exchange (DDE), Dubai Pearl Exchange (DPE) and Dubai Gems Club.
The DMCC has also created a Diamond Control Office (DCO). Its role is to regulate and oversee the trade of diamonds and the implementation of the Kimberley Process Certification Scheme. Maryam Al Hashemi, who has been heading the Kimberley Process operations at DMCC since 2003, will head the DCO.
According to Rabbani, Peter Meeus, who until recently served as executive director for diamonds, has been appointed chairman of the board of directors of the Dubai Diamond Exchange (DDE). He will continue in his role as chief executive officer of the International Diamond Lab, the Dubai headquartered diamond grading lab. Meeus has been given the mandate to lead certain special projects at the DDE.
“All of the initiatives will continue as before,” reassured Rabbani adding that personnel cuts are not planned following the consolidation.
Among the initiatives are regular rough diamond and pearl tenders. In addition, polished diamond tenders are in the planning.
Rabbani held a string of management roles with the DMMC, including business development manager.
“This consolidation of our precious gems operations is a natural step in DMCC’s evolution,” said DMCC Executive Chairman Ahmed Bin Sulayem. “Many of our member companies trade across the spectrum of precious gems, and through our new integrated division, we can offer more synergized and personalized services. We are confident that the integrated team will further strengthen the services provided by DMCC.”
IDEX Online
16 March 2009
De Beers JV mine in Namibia may close from April
JOHANNESBURG, March 16 (Reuters) - De Beers, the worlds top producer of rough diamonds, said on Monday its Namibia joint venture, Namdeb, was considering closing its mines in that country from April 1 for three months due to weak sales.
De Beers -- 45 percent held by Anglo American Plc (AAL.L) -- has said it would cope with the hard times brought on by the global financial crisis by significantly reducing output levels, costs, including jobs, and capital expenditure at its mines.
De Beers said in February total sales for 2008 rose 1 percent to $6.9 billion.
Last month, De Beers joint venture in Botswana, Debswana Diamond Co., also temporarily shut its mines, and De Beers is in talks with unions in South Africa to cut some 1,000 jobs.
Namdeb, owned 50-50 by Namibias government and De Beers, was in talks with unions and other parties over the closures.
"Namdeb has put this proposal (forward) and is in discussion with unions and other parties. It is likely that if the proposal is accepted it will take effect from April 1," a spokesman for De Beers in Johannesburg told Reuters.
"For now Namdebs mining operations continue. The mines are definitely not shut, they may be planning to do that but it may take a few weeks to implement something like that."
"Production will be halted for three months by the company in order to cut costs," she said.
"The workers will be paid as normal. We have informed the minister for mines and energy and there will be a one month notice (before the closure)."
Namdeb would not lay off workers because some workers had opted to reitre early or take retirement packages, she said.
Essential services of health, safety, environment and education nature would continue, as would maintanance work.
Three of De Beers shareholders, including Anglo, said last month they had agreed to loan the company $500 million to help it weather the economic downturn, following muted sales in 2008.
Analysts have said the performance of De Beers, which controls around 40 percent of the rough diamond market, might worsen this year as the global economic crisis hits demand.
Debswana Diamond Co., the worlds biggest diamond producing company by value, shut down all its mines until at least April 14. The Damtshaa mine and Orapa No. 2 plants will be shut for the rest of the year, Gaborone-based Debswana said.
Moodys on Thursday cut the outlook for Botswanas foreign currency rating to stable from positive citing a possible lengthy downturn in demand for diamonds, the countrys main source of budget and export revenue.
Reuters, Reporting by James Macharia
16 March 2009
Chocolate cake decorated with diamonds, gold leaves
Businessman Angelito Araneta Jr., 21, shows a chocolate cake topped with 15 African diamonds and covered with 24-karat gold leaves, which he displayed at his residence in Manila March 16, 2009. Araneta, who commissioned his catering service to create the cake, says he plans to sell the cake at 124,000 pesos (2,558 U.S. dollars) to men for use as a marriage proposal gift.
Xinhua - China
16 March 2009
Diamonds and Divas debut on the net
Diamonds, gold and gorgeous fashion were all on display at last night’s glittering gala celebrating the Metropolitan Opera’s 125th anniversary.
The Opera (with a capital “O”) is NOT the place for the pants suit, and I’m happy to report nary a one could be found as stars like Brooke Sheilds, Patricia Clarkson and Juliana Marguiles lit up the runway with tasteful diamond looks and gowns galore by the evenings sponsor, Yves Saint Laurent.
Big Love’s Gennifer Goodwin looked lovely in a YSL printed dress with black diamond earrings and metallic cuffs, and supermodel Claudia Schiffer opted for a similar statement on the wrist with a series of silver bangles to go with her basic black.
Other red carpet highlights included Kanye West’s main squeeze, Amber Rose, in icy diamond studs, Becki Newton and Diane Kruger keeping the bling to a minimum with gorgeous strapless gowns – both by YSL – and Zoe Saldana in verdant green with diamond drop earrings.
Fashion misses included Parker Posey in a burgundy bolero and layered gold chains, Emily Mortimer in an unflattering maroon sequined YSL number with minimal bling, and Mary Kate Olsen, whose right hand rings and black kimono dress would have worked better without the Elvira make up and bed-head hair.
Not to be missed, however, were the amazing gala performances, which included a tribute to Placido Domingo and a star-studded sampling from The Met’s upcoming season. Clocking in at over three hours, the jam-packed program perhaps gave the crowd a reason to root for the ‘fat lady’ to sing. But regardless of the singers’ stamina, a diamond-filled, pants suit-less night at the opera is a glowing success in my book.
Jewelery Insider blogspot
16 March 2009
On Forbes List of Billionaires: Oppenheimer, Graff, Steinmetz, Leviev
The annual list of the world’s billionaires published by Forbes lists four members of the diamond industry: De Beers stakeholder Nicky Oppenheimer, diamond jeweler Laurence Graff, commodity miner and diamond trader Beny Steinmetz and vertically integrated diamantaire Lev Leviev.
At number 98 in the list of wealthiest people, Nicky Oppenheimer and family is estimated to have a net worth of 5 billion. Oppenheimer, 63, went through “a sea change,” according to Forbes, listing the settlement of the U.S. price-fixing suit, the partial sale of De Beers to a black-empowerment company in South Africa and a third of its holding in Anglo-American. According to Forbes, Oppenheimer’s response to declining markets, “If youre going through hell, keep going.”
The self made Laurence Graff, ranked number 305 with an estimated net worth of $2.2 billion is the only jeweler on the list. Graff, 70, specializes in the highest end of jewelry retailing, has 30 stores worldwide and a list of clients that also appear on the Forbes list such as the Sultan and Queen of Brunei and Donald Trump. A self-made tycoon that spent his childhood in Londons gritty East End, his assets include jewelry company Graff Diamonds International, miner Gem Diamonds, a polished diamond trading company in Antwerp, a real estate company in Luxembourg and a stake in South African Sightholder Safdico.
With a net worth of $2 billion, Beny Steinmetz, 52, has diversified from diamonds, focusing on iron and other commodities as well as real estate and mining operations. Like most others on the list this year, Steinmetz took a blow as the financial markets tumbled, hurt especially by a drop in real estate interest. Forbes lists real estate holdings in Kazakhstan, Russia and Eastern Europe. “Worth of mining assets, including privately held Cunico and publicly traded Katanga Mining, down 75 percent since last year,” the magazine noted. While adding that he “Remains opportunistic.”
Number 468 on the list of billionaires, 53 year-old Lev Leviev, saw his net worth decline to $1.5 billion. The self made diamantaire is the worlds largest diamond cutter and polisher, according to Forbes and “trying to hold his empire together.” Holding a controlling stake in conglomerate Africa Israel Investments, he is selling off properties to meet debt obligations. “High end diamond business slowing as demand dries up; jewelry stores in Russia holding their own as Russians flock to gems because of unsteady banking sector.”
IDEX Online
16 March 2009
Tiffany & Co Opening Amsterdam Store
Tiffany & Co. plans to open a store in Amsterdam, the Netherlands, in fall of 2009. The approximately 2,100-square-foot store will be located in a historic building at 86-88 PC Hooftstraat, in the citys premier shopping area.
Tiffany architects and designers will preserve the buildings original façade and create a modern and gracious interior.
“Opening our first store in Amsterdam is another indication of our optimism about Tiffanys substantial long-term growth potential throughout Europe,” said Melvyn Kirtley, group vice president, Tiffany & Co. Europe. “Our prominent location in Amsterdams most desirable shopping area provides us with the ideal environment for introducing everyone to Tiffanys heritage of design, craftsmanship and outstanding service.”
The new store features signature details of Tiffanys famous New York flagship store, including brushed stainless steel and custom furnishings.
IDEX Online Staff Reporter
12 March 2008
Harry Winston price target and rating slashed
TORONTO, CANADA, 10 March - RBC Capital Markets slashed it price target to $5 from $13 for diamond miner and jewelry retailer Harry Winston while also cutting its financial forecasts and rating for the firm, leading to speculation the company could be a takeover target.
RBC reduced its rating to "reflect the near-term risks relating to Harry Winstons financing situation, and overall volatility and low visibility in the diamond industry."
RBC said Harry Winston was likely to become cash negative during the coming two to two and half years unless it was able to refinance an expected debt of $75 million due in 2009 and find more sources of financing.
RBC forecasts rough diamond prices could fall by up to 40 percent which would slash the price of the diamonds it mines at Diavik in Canadas Northwest Territories to $50-$60 per carat over the coming quarters. That would compare with the $90-$115 per carat price it secured in 2008, RBC said. Harry Winston owns 40 percent of the Diavik mine.
The Harry Winston retail operation has 19 stores worldwide. RBC believes some of the more marginal stores may be closed down in order to cut costs.
A service of the Antwerp Facets News Service (AFNS).
12 March 2008
Sightholders report slight rise in DTC February sight
LONDON, U.K., 10 March - There was a slight pick-up in activity in the Diamond Trading Companys (DTC) February sight according to media reports, although it was still very small at around $110 million.
The December and January sights sold goods worth approximately $100 million and $80 million, respectively according to Rapaport News estimates.
Sales in the December-February period of around $300 million are around 83 percent lower than those for the three DTC sights from December 2007 through February 2008 when approximately $1.7 billion of diamonds were sold.
The DTCs prices are higher than other rough goods in the market, with one sightholder estimating that DTC diamonds were still 15-20 percent too high, according to Rapaport News. Another sightholder reported that DTC was staying firm in its price levels.
A service of the Antwerp Facets News Service (AFNS).
10 March 2009
Botswana President Khama: We’ll Look at Assisting Polishers
The government of Botswana may assist local diamond polishing plants in trouble, President Ian Khama said. In an interview with the Financial Times, Khama spoke about the country’s diamond production, De Beers and the global economic crisis.
President Khama told FT that revenue from diamonds is predicted to fall by 50 percent, adding that diamond production will be lowered by 40 percent, a decision De Beers and Botswana made together.
About the closure of Damtshaa and Orapa No. 2, Khama said they were not economically viable until rough diamond prices increased. “So obviously they would be the first ones to be moth-balled when there’s a problem like this.”
Asked about brining value addition into the country and the problems the cutters and polishers are facing, Khama replied, “Well, those are independent entities, private sector operations. And that is just something that we are talking to them about, that if they need us to assist them as a government in trying to keep them afloat, we can look at that. And as I said, it’s something that we are monitoring.”
Khama denied reports that the move of De Beers’ aggregation operations is not taking place, stating that its “going ahead,”, and that De Beers is “indeed” honoring its commitments.
IDEX Online Staff Reporter
10 March 2009
Gresso Lady Diamond Luxury Phone Costs $5,500
Russian luxury phone maker Gresso today unveiled the Lady Diamond collection, a magenta-colored gold and titanium handset with diamond accents.
The company said the case of the phone is made of titanium -- originally used in the space industry due to its combination of hardness yet extreme lightness.
The handset is covered with a magenta diamond-colored ceramic for a sparkling shell.
Its navigation keys are made of 18 carat gold and crowned with four white diamonds totaling 0.44 carats.
The screen is made from hand-polished 42 carat sapphire glass.
Inspired by complicated swiss skeleton watches, the Lady Diamonds open back has a sapphire crystal, allowing customers to view the inner mechanisms.
The battery cover has a magnetic lock made of stainless steel and decorated with genuine leather. The name and individual number of each handset is laser-engraved on the metal plate under the battery cover.
It runs on Windows Mobile 6 Standard and has a built-in 2.0-megapixel camera, MP3 player, Bluetooth and 2GB of memory.
The Gresso Lady Diamond is available now for a retail price of $5,500.
Mobiledia - Ellicott City,MD,USA
9 March 2009
Jennifer Lopez Holds on to Loaned Diamond Jewelry
It has been reported that Jennifer Lopez is holding on to diamonds that were loaned to her from a Swiss jeweler. The diamond jewelry in question is valued at $50,000.
Last week, Jennifer Lopez borrowed the big bling from Robert Mouawad and wore the diamond jewelry to a fashion event at Barneys in Beverly Hills.
Some other celebs such as Ellen Pompeo and Gwen Stefani also wore borrowed jewels to the event but returned the valuables the very next day. Benny Medina, Lopezs manager, is said to have called Mouawad telling him that Ms. Lopez would be keeping the diamond jewelry.
According to a Swiss jeweler, "We received a call from Benny Medina, informing us that Jennifer Lopez was going to keep the jewelry. As far as Mr. Mouawad is concerned, Jennifer can have whatever she wants, but a premature demand seemed presumptuous."
Benny Medina told Page Six that Jennifer Lopez was offered the jewelry in exchange for her participation in the fashion event at Barneys and that the offer was "very clear".
"There was an offer. It was very clear. She was the only celebrity whose name was on the invite. She would have done it for nothing. But this was how it was presented. It was quite a generous offer," Medina is quoted as saying.
Israel Diamond Portal - Ramat Gan,Israel
6 March 2009
Auction of $3 Million Versace Tiara
Bidz.com, an online jewelry auction site, today announced it will be offering the recently acquired Gianni Versace tiara in a public auction. The auction will begin with an opening bid of $699,000 on Monday, March 23 at 9 a.m. PDT. The Tiara has an estimated worth of more than $3 million.
This is the first time that the tiara, which contains more than 1,200 diamonds – all of which are GIA or EGL certified – has been offered in a public auction.
“Many investors move towards trusted and time tested commodities, such as gold and diamonds in uncertain times. The Tiara, with its unique brand cache, and intrinsic value has widespread appeal to the most discriminating jewelry buyers around the world,” said Leon Kuperman, president of Bidz.com Inc.
Bidz.com will donate a substantial amount of the funds raised from the auction to Aid for AIDS, a non-profit premier service provider for Los Angeles County whose mission is to provide direct financial assistance and critical support for the necessities of life to those impoverished and disabled by HIV/AIDS.
Actress Carol Channing (who sang “Diamonds Are a Girl’s Best Friend” in her role as Lorelei in the Broadway show Gentlemen Prefer Blondes) will be making media appearances nationally on behalf of Aid for AIDS to help promote the Bidz.com Versace Tiara Auction.
IDEX Online Staff Reporter
6 March 2009
Nivea Selling Diamond-Encrusted Jar for UK Mothers Day
In honor of Mothers Day in the UK (March 22), Nivea is selling a diamond-studded jar. The proceeds from the sale will be donated to the Breast Cancer Care to charity help those affected by breast cancer.
The jar, which will retail exclusively through fine jewelers, Moiras on New Bond Street, is encrusted with 441 white diamonds set in white gold and is worth approximately £80,000 ($113,184). However, the one-off item is on sale for just £16,000 ($22,636).
The buyer of the special jar will also receive a years supply of NIVEA Visage Expert Lift, a new skincare range that is specifically designed for women over 50.
According to Nivea, 80 percent of women diagnosed with breast cancer are over 50.
IDEX Online Staff Reporter
4 March 2009
Hilton gets diamond-studded dashboard for her Bentley
London, March 4 (PTI) The recession does not seem to have hit Paris Hilton who is ready to flaunt a 200,000 pound diamond-encrusted dashboard made for her pink Bentley.
The 27-year-old hotel heiress will have it flown out from the firms British Head Quarters in Crewe to be fitted to her 140,000 pounds Continental GT in Los Angeles, the Sun.Co.Uk reported.
Paris also called the authorities, where the vehicle was made, to ask if it would be possible to give it a little more sparkle.
"When the man said she wanted to stud the dashboard with a couple of hundred grands worth of diamonds, we were stunned. Were used to dealing with the stars so we expect the odd extravagance, but this is something else," a source from the car company said.
Paris bought the Bentley in December as a Christmas present to herself.
She had it sprayed pink and the Bentley badge replaced with her own initials. The upholstery, grille and hubcaps of the car were also painted pink.
"Ive just always wanted a pink car," Hilton had said.
"I think when youre a little girl and you have the Barbie Corvette youre always like, Oh, I wish I had a car like this one day. I think it just comes from being a fan of Barbie for so long."
Press Trust of India - New Delhi,India
3 March 2009
Rio Tinto Tenders a Rare Offering of Blue Diamonds
PERTH, March 3, 2009: Rio Tinto’s Argyle Diamond Mine is set to showcase its rare blue diamonds to the world in a unique sale known as the "Once in a Blue Moon" collection. While the Argyle Diamond Mine is well-known for producing rare pink and champagne diamonds, it is a lesser-known fact that it produces other colors such as rare blue diamonds.
The “Once in a Blue Moon” collection comprises a range of premium and commercial diamonds, and features single cuts, a number of matching pairs and a selection of smaller diamonds. Josephine Archer, sales and marketing manager for Argyle Pink Diamonds, says of this rare offering, “We are excited to showcase our first-ever collection of precious blue and violet Argyle diamonds, sourced from several years of production at the mine. It is an enchanting collection that will appeal to connoisseurs and collectors alike.”
With only ten years of production left from the Argyle mine, and only a sporadic occurrence of blue diamonds, this collection is likely to attract considerable attention, both within Australia and overseas. It is a closed tender and will be showcased in Perth, Hong Kong and Tokyo, prior to bids closing on April 8.
Rapaport News, Diamonds.net
2 march 2009
Botswana Diamond Manufactures Lay Off Workers
(March 2, 09, 10:33 IDEX Online Staff Reporter)
The economic fallout is reaching all the way down to line workers in Africa’s diamond producing countries, as miners and manufacturers are curtailing and sometimes even closing their operations. According to a recent report, an estimated 1,800 people have lost their jobs in Botswana’s diamond mining and mining related industry.
The Botswana press reported that eight cutting and manufacturing companies have retrenched 441 workers. According to a report that appeared in Mmegi, the manufacturers are Diamonds Manufacturing Botswana, DDA of Botswana, Suashish Diamonds Botswana Steinmertz Diamonds Botswana, Leo Schachter Botswana and Lazare Kaplan Botswana. In addition to them, DTC Botswana has reportedly laid off a number of workers.
Most of these cutting and manufacturing companies opened their operations in Botswana as part of the local beneficiation effort to generate more of the diamond revenues in Botswana. Many of diamond manufacturers have received local rough diamond allocations to provide the local work.
But with limited demand in the global market for polished diamonds and falling prices for those goods that are traded, diamond manufacturing around the globe has taken a blow, and everywhere workers are losing their jobs.
In addition to the hurting manufacturing operations, many local diamond miners have limited their output, leading to an additional 1,400 job losses. So far, nine mining and exploration companies have retrenched workers this year: DiamonEx, BCL, Moolman, Mowana, Gope Exploration, Mine Tech, Mupane Gold Mine and Dewet Drilling.
The number of job losses is expected to increase if Debswana will cut jobs as well. The company is currently in negotiations with worker unions over the issue.
The number of job losses is expected to increase if Debswana will cut jobs as well. The company is currently in negotiations with worker unions over the issue.
IDEX Online Staff Reporter
27 February 2009
DTC Launches Southern Africa 2009 Collection
RAPAPORT... Press Release: 27 February 2009: The Diamond Trading Company (DTC) launched a new collection of diamond jewelry — the DTC Shining Light Awards Southern Africa 2009 Collection — at the Radisson Hotel in Sandton overnight. The new collection comprises 18 spectacular pieces of diamond jewelry set with more than 14,000 diamonds, including natural black diamonds, green diamonds, canary yellow and cape colored diamonds and, of course, brilliant white diamonds. There was an assortment of fancy cut diamonds including marquise, princess, baguettes and emerald-cut diamonds in the collection, with a total weight of more than 400 carats.
The new Southern Africa collection consists of eight jewelry pieces crafted by local South African designers, five designs created and designed by Namibian designers, and five designs created by Botswana designers. Together, the 18-piece collection comprises the first ever DTC Southern Africa Shining Light Collection.
Of the 18-piece collection, eight pieces contained Forevermark diamonds. Forevermark is a diamond brand launched by the De Beers Group in 2008.
First launched in 1996, the objective of the DTC Shining Light Awards has been to provide support for the future of the South African jewelry industry by helping to develop both technical and design skills of South African designers, as well as an ethos for South African jewelry design. However, the launch of the eighth DTC Shining Light Awards Collection marked an historic occasion: For the first time ever, the competition was opened to South Africa’s neighboring diamond-producing countries — Namibia and Botswana — making the 2009 Shining Light Competition one that is truly southern African.
Through the Shining Light Awards competition, the DTC has pioneered the way for DTC sightholders, the sponsors of the collection pieces, local manufacturers and designers to collaborate in producing innovative and progressive design work. “A direct result of this collaboration,” said Thoko Modisakeng, head of marketing for Southern Africa of De Beers Group Marketing, “has been the securing of employment at a time when the challenges in the global economy remind us of the interdependence of nations and economies, and of the necessity for us to meet our goals through cooperative endeavor."
Modisakeng added, “[O]ne of the key pillars of the DTC Shining Light Awards project is the transference of skills and knowledge.” This was highlighted during the manufacturing stage of the competition, when two of the Shining Light winners were flown to India by their sponsors to participate in the manufacture of their winning pieces. Additionally, it was with the input of previous Shining Light winners that some of the 2009 winners were assisted in the final manufacture of their pieces. “This is just one facet of the commitment that these Awards encourage,” Modisakeng added, “proving that, with the right partners, truly great things can happen.”
Intrinsic to the competition are the design workshops hosted by the DTC on a biennial basis in all three major centers of South Africa, in Windhoek and in Gaborone. It is at the Design Forums that students of jewelry design, established jewelers and experts in the field of design from around the world come together to network and increase their skill base. The design workshops, fully sponsored by the DTC, cover a host of business- and design-related topics and are offered to attendees every year the competition is run. Additionally, as part of the DTC Shining Light Awards competition, the Company provides five jewelry design schools with education grants in recognition of their commitment and dedication in the field of jewelry design.
The eighth DTC Shining Light Awards collection is a statement of bold design expression — each piece captivates the imagination and beauty intrinsic to this prized gemstone. The overall winning piece of the eighth DTC Shining Light Diamond Design Awards Competition in South Africa was chosen for its contemporary minimalism and unique execution in design. The overall winner, designer Bhekithemba Ngema, a 2008 Tshwane University of Technology graduate, created his ring using 18-karat yellow gold and 725 diamonds with a total carat weight of 16 carats, provided by sponsor and DTC client Schachter & Namdar.
Rapaport News, Diamonds.net
27 February 2009
Botswana diamond industry loses 4,500 jobs
GABARONE (AFP) — Botswana, the worlds largest diamond miner, has lost 4,500 jobs in the industry so far this year as global demand for the precious stones plummets, the governments labour agency said Friday.
A total of 4,528 jobs have been lost, according to the agencys data, about half of them at Debswana -- the mining giant co-owned by De Beers and the government.
The company, which last week announced the closure of two mines, has laid off a total of 1,000 staff and another 1,000 contract workers, Debswanas managing director Blackie Marole told a press conference Friday.
Debswana last year produced 32.3 million carats, but will reduce production by 35 percent this year, he said.
The rest of the jobs were lost at two dozen smaller companies involved in diamond exploration, cutting, and other parts of the industry, the labour data showed.
Economist Keith Jefferies, a former Bank of Botswana deputy governor, said he feared further losses.
"Obviously for a small population of 1.8 million, 4,000 job losses is quite a lot," said Jefferies, who is heading a government team tasked with finding ways of mitigating the fallout from the global slowdown.
"Very soon companies in the Debswana mines supply chain will lose business, and we could see more job losses in Botswana in the next few months," he added.
Botswana is the worlds largest producer of diamonds, both by value and by volume. Rough diamonds are the countrys largest industry, contributing 50 percent of public revenue, 33 percent of gross domestic product and 70 percent of foreign exchange earnings.
AFP
25 February 2009
Role of New Umbrella Diamond Industry Organization Endorsed in Principle
A meeting of more than 60 leading diamond industry participants was convened in London yesterday to discuss the opportunity for a new diamond industry organization to engage in category marketing and advocacy of major industry issues. The meeting was the outcome of a series of discussions initiated by industry representatives in St. Petersburg, Russia, in 2008.
Participants in the London meeting focused on the results of research on the role that similar organizations effectively play in other industries, the business case for category marketing and related governance, and funding issues. It was agreed to form a working group including leading diamond producers, the existing industry organizations the International Diamond Manufacturers Association (IDMA), the World Federation of Diamond Bourses (WFDB) and the Gems and Jewellery Export Promotion Council (GJEPC), and leading representatives from the diamond cutting and wholesale sectors, to further pursue the concept and to communicate on its progress to the broader industry.
Rapaport News, Diamonds.net
25 February 2009
Diamond Fund Set to Launch
KPR Capital Limited announces the launch of the KPR Diamond Fund. The fund offers investors a unique access to physical diamonds capitalising on the price appreciation of top quality colourless diamonds.
The Fund aims to provide returns which are not correlated with traditional asset classes, act as a hedge against inflation and benefit from the supply/demand imbalance over the long term. The fund is part of KPR Fund SPC, a Cayman Islands open-ended investment company.
The investment manager has engaged a team of diamond industry experts that have in-depth knowledge and industry insight of the diamond market.
The fund’s investment adviser is Goldwinds Asset Management Limited, a London based asset management firm.
Giovanni Pennetta, CEO of Goldwinds Asset Management, said:
“The long term outlook for diamonds is robust. We are confident that this fund will provide the means for investors to diversify their portfolio and gain exposure to physical diamonds in a cost-efficient way. We see this as a huge investment opportunity that investors should not miss.”
The fund is open to investors in February and will launch on the 2nd March 2009. The fund has a minimum investment of US$ 250,000. Investors in the fund may benefit from the option to purchase stones on selected diamond sales by the fund at a wholesale price. The Diamond Segregated Portfolio may be offered, sold or transferred directly or indirectly to Non US Taxpayers and US Tax-exempt investors. US Taxpayers may invest in interest of the Partnership, KPR Diamond Fund L.P.
HedgeCo.net - West Palm Beach,FL,USA
24 February 2009
Hollywood gets lesson on diamond importance
Los Angeles--Diamonds flashed from all ends of the 81st Annual Academy Awards held on Sunday evening, but even before the red-carpet parade began, the precious stones were the highlight of a private pre-Oscar dinner hosted by actress Julianne Moore and Diamond Information Center (DIC) Director Sally Morrison.
The event was held on Saturday evening at the exclusive Chateau Marmont, with guests including the likes of actresses Camilla Belle, Debra Messing, Julia Ormond and Sharon Stone, along with fashion designers Tom Ford, Ozwald Boateng and Monique Lhuillier, among many others.
But the guest of honor for the evening was former Botswana President Festus Mogae, who addressed the crowd of celebrities and spoke about the importance of diamonds to the future of his country. According to the DIC, Botswanas growth and responsible use of its resources has made it a poster child for African development.
On display at the dinner was a collection of diamond designs, including a number of important international pieces and the never-before-seen "Shining Light Diamond Collection," which served as an example to guests of how diamonds create an enduring value and a sustainable source of economic diversification for producing countries.
"We felt it was important for Hollywood to understand that diamonds, while synonymous with Hollywood and glamour, are also a lifeline for people in the countries where they are mined, providing healthcare, infrastructure, education and employment," Morrison said in a media release. "By bringing President Mogae to the Oscars, he was able to deliver that message in person and to highlight the importance of diamonds to his country."
National Jeweler Network - New York,NY,USA
23 February 2009
Classic Diamonds Dazzle At The Oscars
RAPAPORT... Many Oscar nominees and attendees wore diamonds, adding glamour to their looks on the red carpet, as Hollywood gathered Sunday for the 81st annual Academy Awards ceremony. The "legacy and beauty of diamonds were showcased in the evenings top diamond trends," according to the Diamond Information Center (DIC). These included classic diamond drop earrings, diamond statement necklaces and diamond bracelets, including diamond line bracelets and cuffs.
The DIC reported that the classic diamond jewelry worn by many at the event "showcased sophistication and old Hollywood glamour." Kate Winslet, Academy Award winner for best actress, for example, wore 28-carat pear-shaped diamond cluster earrings, a 117-carat multi-cut diamond bracelet and a diamond ring by Chopard.
Other highlights on the red carpet included best supporting actress nominee Taraji P. Henson, who wore a 19th-century diamond statement necklace with 6-carat cushion cut diamond drop earrings from Fred Leighton. Anne Hathaway, nominated for best actress, wore a diamond starburst brooch in her hair, a diamond watch bracelet, diamond swirl earrings and diamond rings by Cartier. Academy award winner Penelope Cruz chose classics to complement her look and wore a diamond riviere necklace, stacked diamond line bracelets and diamond studs, all from Chopard.
Rapaport News, Diamonds.net
23 February 2009
De Beers Rough Diamond Prices +14% in 2008
RAPAPORT... De Beers rough diamond prices rose 14 percent on average in 2008, but the increase was mainly due to the boom period in the first fiscal half, according to De Beers. “From January to August, demand for diamonds remained strong and we saw consistently strong Diamond Trading Company (DTC) price growth,” explained Lynette Gould, De Beers spokesperson. She noted, however, that lower consumer demand for most categories of polished diamonds in the second half of 2008 “led to downward pressure on DTC prices and lower purchase requirements from our sightholders whilst they adjusted to liquidity and inventory-level challenges and the global financing situation.”
The company has generally committed to informing the public of its cumulative price adjustments at three points during the year: before the JCK Las Vegas show in late May, before the Hong Kong show in September and at its annual review, which usually takes place in February — this year it was this past Friday. But De Beers didnt hold a conference call during its annual results as it has in the past, instead participating in the larger Anglo American results call, during which prices were not addressed. At its previous announcement in August, prior to the Hong Kong show, the company reported that rough diamond prices increased by an average of 16 percent in the first eight months of the year through its August sight.
Starting in September, however, the market turned south, and demand for DTC goods started to slip, resulting in smaller sights through December — a trend that is continuing this year with the sight running this week. According to Rapaport records, DTCs sales in the fourth quarter fell 40 percent to approximately $1 billion. Sightholders reported only slight decreases, if any, in prices at the final sights of the year. Still, the final three sights of 2008 weighed heavily on De Beers, which ended 2008 with its rough diamond sales flat at $5.9 billion, after being on course for a record year through September.
Gould stressed that the company expects trading conditions to remain challenging in 2009, but that De Beers expects improvement in the second half. “[A]s pipeline inventories are reduced, we expect to see an improvement in demand as the year progresses,” Gould said. “It is anticipated that as economic conditions improve, emerging demand for the DTC’s finite availability will form a positive foundation for future growth in DTC prices.”
Rapaport News, Diamonds.net
22 February 2009
Angelina Jolie $20 Million Necklace 2009 Oscars
Angelina Jolie will walk the 2009 Oscars red carpet in a new $20 million dollar diamond necklace? See photos, video and find out more about the gorgeous ‘Changeling’ star’s reported quest for the perfect necklace.
Sources claim the 33-year-old actress has been visiting jewelry stores.
“She’s been driving all of the high-end jewelers of New York crazy,” a source tells OK! “She’s looking for the impossible — a drop dead gorgeous $20 million diamond necklace to wear to the Oscars.”
Angelina and partner Brad Pitt will be at the 81st Academy Awards, as both are nominees this year; Jolie for ‘Changeling’ and Pitt for ‘The Curious Case of Benjamin Button.’ The pair have graced red carpets all over the world so what makes the Oscars worthy of a $20 million necklace?
Could it be that after four long years Angelina Jolie her love rival, Brad Pitt’s ex-wife Jennifer Aniston (with John Mayer in tow) will cross paths? And Jolie wants to look her best? (No major chore, we would say with or without a a 20 million dollar diamond necklace!) Or perhaps a special occasion is just a special occasion?
Bling and bling speculation aside, it is always a treat to see Hollywood’s power couple on the red carpet. Perhaps the celebrated actress, mother of six (”The center of my life is my kids,” she has been quoted as saying) and humanitarian will take home that little statue that’s worth its weight in diamonds. Angelina Jolie delivered an emotionally powerful performance as the mother of a missing child in Clint Eastwood’s Changeling, set in the 1920s and based on a true story.
Right Celebrity - Lafayette,CA,USA
20 February 2009
De Beers to Borrow $500 Million as Demand Declines
Feb. 20 (Bloomberg) -- De Beers, the world’s largest diamond company, plans to borrow $500 million from Anglo American Plc and other shareholders to “withstand any shocks” after gem demand fell more than 50 percent.
The loan is “prudent” in the current economic environment, said Finance Director Stuart Brown on a conference call from London today.
Jewelry sales are plunging as the global slowdown forces even the wealthiest consumers to curb spending on luxury goods. New York-based Tiffany & Co., the world’s second-largest luxury- jewelry retailer, said last month holiday sales declined 21 percent. Switzerland’s Cie. Financiere Richemont SA, the maker of Van Cleef & Arpels jewelry, said in January it saw “no cause for optimism” amid the “toughest” market conditions in 20 years.
The loan “is indicative of the problem in the diamond industry at the moment,” Brock Salier, a mining analyst at Ambrian Partners Ltd. in London, said in an interview. “If you are unable to sell production, it leaves you with a cash hole,’ said Salier, who estimates diamond prices fell at least 50 percent in “recent” months and demand declined even more.
De Beers, which is based in Johannesburg, said Jan. 20 it would cut the amount of rough gems, or diamonds that aren’t cut or polished, offered to clients by about 50 percent until April.
Anglo, based in London owns 45 percent of De Beers. The Oppenheimer family owns 40 percent and Botswana the rest.
‘Challenging’ Conditions
“De Beers might not need a further cash injection” following the loan, Anglo’s Chief Financial Officer Rene Medori said in a conference call today.
Trading conditions are expected to be “challenging” throughout 2009, Gareth Penny, De Beers’s managing director, said on the diamond company’s own conference call.
De Beers may defer or delay projects to ensure a “sustainable business” this year, he said. “We’ll continue to closely monitor demand from customers.”
Potential job cuts are still being discussed with labor unions, he added.
Diamond demand may pick up in the fourth quarter of 2010, and that will only happen “if we are lucky,” Chaim Even-Zohar, principal at industry consultant Tacy Ltd., said in a telephone interview Feb. 18. There is a “problem of oversupply” in the diamond market, he said.
Sales Gain
De Beers said today sales rose to $6.89 billion in 2008 from $6.84 billion a year earlier, after an increase in average diamond prices. Net Income was $90 million, compared with a loss of $521 million, it said in an e-mailed statement.
De Beers produced 48.1 million carats, compared with 51.1 million carats in 2007. Production in Botswana fell to 32.3 million carats, from 33.6 million, and Namibian output slipped to 2.1 million carats, from 2.2 million carats. South African output fell to 12 million carats, from 15 million carats. Canadian production was 1.6 million carats, up from 81,000 carats.
The U.S. accounts for about half of diamond purchases. Global retail demand may drop 15 percent between last November and October this year, according to Even-Zohar. He forecast a 22 percent decline in North America and a plunge of as much as 63 percent in rough-diamond demand.
Bloomberg - USA
19 February 2009
Will Hollywood dim the bling for Oscar night?
Actress Laura Elena Harring wore Stuart Weitzman shoes with $1 million worth of gems in 2002.
The red carpet is usually all about escape -- but this year could be different. Still, as one commentator says: Its a recession, not an apocalypse.
Around this time every year, accessories designer Stuart Weitzman debuts a one-of-a-kind pair of Oscar shoes festooned with $1 million worth of precious gems. Its a stunt he started in 2002, when "Mulholland Drive" actress Laura Elena Harring pranced down the red carpet in diamond-encrusted sandals. Since then, actress Regina King and singer Alison Krauss, among others, have worn the high-profile "Cinderella" slipper, and the ploy has always garnered lots of publicity.
But this year, with the economy backfiring, Weitzman wont be playing Prince Charming. Many actresses will undoubtedly adorn themselves with plenty of carats at Sundays Academy Awards, but no one wants to be branded an out-of-touch fairy princess.
The issue of appearance is playing out all over Hollywood this week: How do you deliver the red carpet glamour expected on Oscar night, but also show some sensitivity to the state of the economy? Its a delicate balance to strike in a town not known for its restraint.
Oscar parties such as the Vanity Fair bash and Madonnas annual soiree are being scaled back considerably, but certainly not canceled. (Expect to munch on mini hamburgers instead of foie gras, and dont be surprised to see recycled decor from parties past.)
Lavish gifting suites are on the wane and there are fewer outrageous offerings like the "diamond facial" (in which tiny diamond chips are used to exfoliate the skin). But the red carpet, a factory in itself and the most public spectacle associated with awards season, is having a harder time dialing it back. Picture a prom queen being asked to skip the limo.
"Would you really want to tune in and see a bunch of women walking down the red carpet in black pantsuits?" asked Hal Rubenstein, fashion director of InStyle magazine and an Oscar fashion commentator on "Good Morning America."
"Its a recession, not an apocalypse."
Rubenstein isnt alone in defending the necessity of glamour. Many fashion stylists, jewelers and makeup artists interviewed for this article insist that the red carpet represents escapism. They say that a toned-down parade wouldnt be nearly as transporting for viewers who tune in for the Technicolor thrill of seeing their favorite stars dressed like royalty in borrowed finery.
And its not just about the viewers. A traipse down the Oscar red carpet in the right dress can land an actress on the cover of thousands of newspapers and countless websites worldwide. Beauty endorsement deals and brand ambassadorships also are riding on a stars style quotient -- best actress nominee Kate Winslet is a Lancome ambassador; Beyoncé is a face of LOreal.
Its not as though those in the glamour business are in denial. "You would be beyond ignorant not to be acknowledging" the economy, said celebrity stylist Rachel Zoe, whose clients include Cameron Diaz and best actress nominee Anne Hathaway.
But, Zoe added, "there are still movies and movie stars and designers doing fashion shows. My attitude is: Lets put a smile on peoples faces even if its just for an hour."
At this point, no one knows for certain whether the Oscar red carpet will be a sea of black sheaths or a rainbow of pastel hues. Stylists typically pull a few gown options from design houses and decisions are almost always made at the eleventh hour.
Right now, there are whispers of lots of metallics, and nude and taupe tones (seen in prevalence at the Golden Globes). Winslet, who wore a pale sherbet-green Valentino gown to the 2007 Oscars, has worn mostly black on the red carpet this year. Or simple, unfussy dresses like the royal blue Narciso Rodriguez she donned for the Screen Actors Guild Awards.
And its safe to assume that cameras wont be zooming in on anything like the dark green couture Dior by Galliano gown worn by Charlize Theron in 2006, with a bow the size of a capuchin monkey on her shoulder. Excess is out, and that includes wedding cake dresses with tiers of lace and tulle and trains that require an extra set of hands.
When it comes to jewelry, the aesthetic sentiments are similar. "No one wants to be inappropriate in a time when people are struggling," said Sally Morrison, director of the New York-based Diamond Information Center. "The trend is fairly big, but fairly simple. Classic styles with sizzle that any woman can wear." Other jewelers say colored stones are also being considered over diamonds.
"Rather than making sure that you have the necklace, earrings, bracelet and ring, its more about the one thing that can say it all," said Rebecca Selva, spokeswoman for jeweler Fred Leighton.
"People are looking for that one statement piece."
Such as a bejeweled watch. Penelope Cruz sported a dainty Chopard timepiece encrusted with 5 carats of diamonds to the recent SAG Awards. Marion Cotillard wore a bolder style with diamonds floating inside the watch face to last weeks British Academy of Film and Television Arts Awards in London. What could be more down to earth than a watch -- even if it costs more than a years tuition at Stanford?
No ones talking price tags, though. Three years ago, nominee Dolly Parton proudly announced to reporters that her Fred Leighton earrings were worth $1.2 million. Thats a no-no these days.
"It used to be chic to say, Im wearing $16 million worth of jewels, " said publicist Howard Bragman, who specializes in crisis counseling for celebrities. "Thats distasteful right now." The Academy of Motion Picture Arts and Sciences has made occasional changes to its dress codes in deference to political sensitivities. In 1941, with the country mobilized for World War II, attendees were asked to wear dark, semiformal attire. In 1967, hippie staples such as love beads, miniskirts and turtlenecks were banned. "In the 70s, there wasnt such a focus on the clothes and nobody wanted to win an Oscar anyway," film historian Robert Osborne said.
Nowadays, though, the focus on style is intense. "Beyoncés brand is glamour," said hairstylist Kim Kimble, who swept the singers hair into a ponytail for the Golden Globes, so it wouldnt compete with her 200-carat Lorraine Schwartz diamond necklace. "She has an image to live up to. Its her job."
But glamours getting a closer inspection with so many pink slips emerging across the country. Andy Lecompte, who styled Jennifer Lopezs tresses for the Globes, scaled back on the drama and went with a simple bun. "She wore that gold dress, and with the economy the way it is, she didnt want to overdo it with jewels or her hair," he said.
Such adjustments may seem almost imperceptible from afar -- Lopezs dress had enough shimmer, after all, to put the rest of her look in the shadows. But in some circles, the effect of Hollywoods "less is more" impulses has been dramatic.
In the last 11 years, evening bag designer Mary Norton has seen her jeweled and feathered accessories carried by celebrities such as Catherine Zeta-Jones and Miley Cyrus. This time, demand is flat. "Overall, its been a dismal season."
Of course, any glimpse of glamour is ephemeral; it lasts only as long as the red carpet itself. The jewels go back, the dresses get returned and even the elegant chignons fall into disarray. "Everyone knows its make-believe," stylist George Kotsiopoulos said. "Everything is borrowed."
But with a country in the red, borrowing too much can be considered poor form.
By Monica Corcoran and Melissa Magsaysay ,
18 February 2009
Industry forecast 2009: Diamonds
As polished prices go flat, jewelers go for basics
Diamond Promotion Service research shows that diamond stud earrings, like these 1-carat princess-cut earrings set in 18-karat white gold from Kay Jewelers, top consumers wish lists. The earrings retail for $2,599.
New York--There is both good news and bad news for retailers looking to dazzle with diamonds in 2009.
The good news: The supply pipeline is stuffed with goods, and industry experts say that retail jewelers should have no problem laying their hands on diamond jewelry and loose diamonds of all sizes.
The bad news: The worldwide financial crisis will continue to shake out weaker players all along the pipeline, including producers, manufacturers and retailers.
Retailers who had the fortitude to make it through 2008 will have to work harder this year to convince consumers--even the more high-end shoppers--to part with their dollars and buy diamonds.
Although the financial climate heading into 2009 is a unique one, industry analyst Ben Janowski says the diamond game at retail hasnt changed much: Retailers should limit their debt, stock diamond jewelry at price points that will attract wallet-conscious consumers and promote diamonds through special events.
"Retailers need to make sure that theyve got a good diversity of products in the more attainable price levels," he says. "People will be buying, but people will be aiming lower."
Rough and tumble
Charles Wyndham, the co-founder of WWW International Diamond Consultants and founder of PolishedPrices.com, says 2009 will continue to be a rocky road for rough prices--which plummeted in late 2008 amid the global financial meltdown and subsequent liquidity crunch. He predicts that polished prices will remain flat throughout 2009, with the first signs of recovery not expected until 2010.
That said, Wyndham points out that diamond industry prognostication is difficult given the markets volatility.
"It has been quite a roller coaster, but so far, only on the down side," he says. "We must remember that roller coasters also go up and, until summer, were going up at a ridiculous rate."
Wyndham says while diamonds as a commodity have held up fairly well as compared with other commodities, drooping consumer confidence has hurt demand worldwide.
"Recovery will depend on when the economy picks up and this regenerates consumer confidence," he says.
Similarly, Janowski says it is difficult to say what will happen to diamond supply in 2009 because certain factors, like the fate of ABN Amro bank, the diamond industrys major lender, remain up in the air.
At press time, ABN Amro bank and its parent company, Fortis, were under the control of the Dutch government after a bailout attributed to Fortis financial struggles stemming from the purchase of ABN Amro in 2007. Janowski says if ABN Amro disappears from the scene, the supply pipeline will tighten up.
However, experts anticipate that jewelers will not have any problems obtaining diamonds in all sizes this year, including the larger stones that were in short supply in 2008.
Janowski says plummeting prices for large diamonds will prompt some who had been holding onto the stones to sell.
"The idea is to turn," he says. "Sitting on merchandise just doesnt do it."
Classics revival
At the end of 2008, De Beers surprised with a last-minute holiday push promoting diamonds as an "icon of enduring value" in uncertain times.
This is the message that will carry into 2009, based on recent research indicating that 80 percent of consumers who had been planning to make diamond jewelry purchases were sticking with their plans, despite the economy, according to Diamond Promotion Service Director Claudia Rose.
Plus, Rose can sum up what those diamond jewelry stalwarts are after in three words: "diamond stud earrings."
Studs are a quintessential part of any diamond jewelry wardrobe and can be passed down through generations without losing their value, she says.
"As the economy has gotten more and more depressed, people are looking for purchases they are confident will hold their value," Rose says. "I think [diamond stud earrings] are the most timeless piece of all."
Greg Kwiat, chief financial officer for Kwiat Diamonds, also sees the coming year as one in which consumers will be sticking with classic diamond jewelry styles that offer "long-term enduring value."
He says high-fashion diamond jewelry will be susceptible to a slowdown in sales.
Kwiat, whose company opened its first flagship boutique in 2008 on Madison Avenue in New York, says hot sellers will include stud earrings, straight-line diamond necklaces and tennis bracelets.
"That is what will get consumers comfortable with spending money in this environment," he says. "Customers that are spending [money] on high-fashion pieces might fear that theres a possibility that they will become dated. People are looking for a lot of longtime value in their purchasing."
Diamond points for 2009
--Price/supply: Prices for rough diamonds are expected to continue to plummet, while polished will flatline in 2009. Supply wont be a problem for retailers.
--Marketing message: Heading into the new year, De Beers plans to continue emphasizing diamonds as a store of value, a mantra that many in the industry have echoed.
--Merchandise mix: Retailers say diamond stud earrings, simple necklaces and classic bracelets will move in a tough economy, as consumers seek out items they believe will hold their value.
Editors note: This story first appeared in the January 2009 print edition of National Jeweler.
By Michelle Graff, National Jeweler Network
19 February 2009
Warren Buffett buys into Tiffany for $250 million
[AFNS] NEW YORK, USA, 17 February - U.S. fine jeweler Tiffany & Co. said it sold $250 million worth of its shares to subsidiaries of billionaire investor Warren Buffetts Berkshire Hathaway Inc.
The stock is in the form of senior notes, half of which fall due in eight years and the other half in 10 years. Tiffany will use the proceeds to refinance existing debts and for general corporate purposes.
Tiffanys holiday season sales in 2008 totaled $687.4 million, down 21 percent compared with 2007.
A service of the Antwerp Facets News Service (AFNS).
South African diamond production down 16 percent in 2008
19 February 2009
[AFNS] JOHANNESBURG, S. AFRICA, 17 February - South African diamond production declined 16.2 percent in 2008, according to Statistics South Africa, which did not provide carat figures.
Diamonds made up 8.3 percent of the country’s total mining production in 2008, the agency added.
The Kimberley Process states South Africa’s diamond production in 2007 as 15.2 million carats, which would put 2008 figures at 12.7 million carats if Statistics South Africas relative figures are correct.
Production of gold and platinum groups metals also fell sharply in 2008, declining 16.1 percent and 10.1 percent, respectively.
A service of the Antwerp Facets News Service (AFNS).
18 February 2009
New Fund Projects Investment Opportunity in Colored Diamonds
Codiam Fund, which invests in high-end polished colored diamonds, is upbeat about the prospects for the colored diamond market, according to an announcement it released on Thursday. The fund launched in September and reported a 9 percent increase in its net asset value in the first three months of operation.
Mahyar Makhzani, managing director and cofounder of the fund, stressed the investment value of colored stones, whose price points have maintained a reasonable level through the financial crisis. “The investment in this category rather than white diamonds has been proven correct as we are not dealing nor speculating but intelligently investing in a very rare commodity,” he said.
The fund reported that colored diamonds have not decreased in price on a wholesale level in 35 years, and that their value has increased on average between 10 and 15 percent a year. “Colored diamonds have held their value and not suffered from the current economical crisis as other traditional assets have,” Codiam explained in its statement.
The fund was founded by Makhzani and Philip Baldwin, who count more than 50 years experience in the diamond and jewelry industry between them, having served in managerial positions at the likes of Bulgari, Tiffany & Co. and Habsburg. At Codiam, they have laid out a very clear investment strategy. They only look at polished colored diamonds, avoiding the more risky rough market and the volatile market for white stones. The fund therefore only buys intense colored diamonds larger than 1 carat, in the top colors, including red, intense purple, intense green, purple red, purplish red, bluish green, greenish blue, pink, blue, orange and yellow.
The focus on colored diamonds has allowed it to capitalize on traders’ need for liquidity, particularly those with both white and colored diamonds in their inventory. They are still able to sell their colored stones at some profit, which is not the case with white diamonds, Makhzani explained. Codiam also sources stones from private sellers, and while it has in turn resold some of its stock to private buyers and to its own investors, the focus for now is on buying.
Having launched with an estimated kitty of more than $5 million, Makhzani reported that the fund has the cash to make the purchases for now. “We do not need to borrow at this stage to make purchases. What we raise is what we spend,” he added.
That’s not to say it has an open checkbook. The fund sticks to its strict purchasing guidelines, and Makhzani explained that its investment strategy extends beyond merely buying diamonds and hoping they rise in value. The increase in the funds net asset value, he noted, has resulted from creating collections by matching stones of different colors. “The sets are worth more than if we sold the stones individually,” he said. Makhzani stressed that the valuation was based on the opinion of third-party dealers.
Still, Codiam will be hoping the fund’s increase in net asset value, along with its spending power, will woo members of the colored diamond market, particularly at its next major stop, the BaselWorld Watch and Jewellery Show in late March. “We are ready for Basel,” Makhzani said. With a spending power rare in today’s recessionary climate, the funds presence there may spell good news in a difficult diamond market.
By Avi Krawitz, Rapaport News, Diamondsnet
17 February 2009
Diamond Hedgers Report Increase in Fund Assets
West Palm Beach (HedgeCo.net) - Recently launched Codiam Fund, which invests in pre-cut colored diamonds, has reported an increase of 9% in the fund’s net asset value over the first three months of trading.
"We launched the fund in difficult market conditions, confident that our experience and expertise would enable us to identify and purchase rare coloured diamonds that would grow in value for our investors, and the increase to our net asset value has proved this to be true," says Codiam managing director Philip Baldwin, who co-founded the business with Mahyar Makhzani.
The fund managers believe the colored diamonds offer a hedge against market and political crises, as they have not decreased in price on a wholesale level in 35 years, consistently outperforming other diamond categories, with their value increasing on average between ten and 15% a year.
HedgeCo.net - West Palm Beach,FL,USA
15 February 2009
Belgian Polished Diamond Exports Fall 34% in January
Belgian imports and exports of rough and polished diamonds continued to fall in January, according to the Antwerp World Diamond Centre (AWDC).
Belgian polished diamond exports fell 34.1% to 471,048 carats last month. In dollar terms, exports were 25.9% lower at $558.4 million.
The declines in polished diamond imports were less dramatic, but were still down strongly. They dropped 25.1% by volume to 616,615 carats in January, and 13.1% by value to $656.4 million.
Rough diamond exports showed a steep decline of 68.8% to 4.64 million carats in January, while in dollar terms, exports fell 68.4% to $304.7 million.
Rough diamond imports also dropped in January, albeit less than the rough diamond export figures. Imports of rough diamonds were down 34.5% to 8.67 million carats by volume, and a 44.1% to $460.6 million by value.
With the recession in the United States worsening and retail sales continuing their slump, exports fell by more than half to the worlds leading export destination, with a 56.5% fall by volume to 49,140 carats. In dollar terms, exports fell 42.5% to $147.4 million.
The fall was offset to some extent, however, with a 9.7% rise in diamond exports to Hong Kong of 108,442 carats, but a 37.5% by value decline to $74.9 million.
Meanwhile, Switzerland imported 28.9% fewer diamonds in volume terms at 50,558 carats, but a 7.8% rise in value terms to $66.7 million.
Israel, the United Arab Emirates, India, Italy, Japan and France all imported fewer diamonds both in volume and value terms
Israel Diamond Portal - Ramat Gan,Israel
12 February 2009
Diamonds That Rock
William Goldberg, Sothebys and Christies find that special stones still sell, despite the financial crisis.
In Pictures: Diamonds That Rock Rare colored diamond sales have been solid as a rock in recent months. In fact, the Wittelsbach blue diamond sold for $24.3 million at Christies in London on Dec. 11, 2008, setting a record price for any diamond or jewel sold at auction. The buyer was billionaire Laurence Graff.
Christies Rahul Kadakia believes rare colored gems will remain at respectable price levels. "When it comes to colored diamonds, especially blues and pinks, those are rare in any market," he says.
Says Lisa Hubbard of Sothebys (nyse: BID - news - people ), "Those appear to be holding their value, and they have not been subject to the ups and downs of the white diamond market." Sothebys has also logged strong results in its recent colored diamond sales. An oval-shaped, vivid yellow diamond weighing 36.99 carats, internally flawless, sold at Sothebys New York in December 2008 for $71,870 per carat.
These gems are still the most sought after by famous private purveyors like the William Goldberg Diamond Corp. in New York, which has produced some of the most extraordinary colored diamonds in history, including the 30-carat, $50 million Blue Lili and the 5.11-carat, $20 million Red Shield, the largest red diamond ever graded by the Gemological Institute of America.
"Ive heard different talk totally, about mines shutting down, like the Argyle mine [in Australia]," says Barry Berg of the William Goldberg Diamond Corp., adding that he expects pink and blue diamonds to become ever scarcer. "Its very hard to find a blue today, rough or polished," he says. "Yellow is a little more available, but orange, I havent seen in ages."
The Goldberg family business has seen prices for important stones remain strong. "We recently sold a 10-carat intense pink diamond for more than $8 million," notes Eve Goldberg. "We also sold a bracelet with 58 carats of fancy colored diamonds, all over one carat, for close to $3 million."
The company has moved from selling stones into jewelry and is pushing deeper into markets like Brazil, Russia, China and India in the hunt for new clients. Back in New York its opening the William Goldberg Diamond Corp. boutique, designed by William Green. This new apartment showroom above Fifth Avenue boasts an outdoor terrace. In contrast to street-level retailers like Harry Winston, Cartier and De Beers, the Goldberg showroom offers privacy and calm to clients ready to spend millions of dollars, protecting them from the prying eyes of the public.
Clients have started to ask the Goldbergs whether they should consider buying diamonds as an investment and a shelter from plunging markets. Sothebys Hubbard is not surprised. Diamonds have an international market, and they are seen as a way to preserve wealth, she says.
But with the economy as unstable as it is, its tough for both auction houses and retailers to know how to price their wares. "Were putting together our spring sale, and its not easy," notes Hubbard, "because values are in a state of flux."
Forbes - NY,USA
11 February 2009
Diamonds are a hot pick with celebrities at 51st Grammy Awards
Diamonds seemed a hot favourite for the celebrity list who sported their classic diamond jewellery pieces at the 51st annual Grammy Awards ceremony in Los Angeles.
Katy Perry sported six-stone princess-cut diamond drop earrings, diamond bangle bracelets and a floral diamond right-hand ring, designed by H.Stern. Another popular Hollywood actress Gwyneth Paltrow adorned a Chopard designed 11- carat heart-shaped diamond right-hand ring. The choice of Grammy Award-winner Jennifer Hudson was square diamond dangle earrings and a diamond cuff bracelet. The Best New Artist winner – Adele wore 3.96-carat diamond drop earrings, a 28-carat antique diamond flower brooch and an antique diamond and tortoise hair comb, from the design house of Stephen Russell.
Most celebrities who were admired that evening for their dress code, carried off diamond jewellery.
Diamond World Magazine - Mumbai,Maharashtra,India
11 February 2009
Sothebys New York auction fails to sell more than one-third of jewelry lots
AFNS] 11 February. In another sign of falling demand even at the top end of the jewelry market due to the deepening recession, Sotheby’s reported that only 63.6 percent of the lots offered at its February 4 Important Jewels sale in New York were sold. Similarly, only 67.6 percent of the auction goods were sold by value.
The auction house raised a total of $5.1 million in the sale. The top lot, a 20.35-carat diamond ring, was sold for $230,500 to a private collector. The next 10 lots, ranging in sale price from $56,250 to $164,500, were all diamond jewelry as well.
"We were particularly encouraged to see renewed interest in white diamonds from the trade, as evidenced by three of the top four white diamonds selling to American dealers," Gary Schuler, Senior Vice President and Director of Sothebys Jewelry Department, New York, said in a statement.
"We were also pleased by the amount of spirited bidding amongst private collectors, both American and international, who continue to appreciate auction as a place to find the finest signed and period jewels."
A service of the Antwerp Facets News Service (AFNS).
10 February 2009
De Beers sees recovery in diamond prices by end-2010
CAPE TOWN, Feb 10 (Reuters) - Rough diamond prices may recover by Christmas 2010 after big players reduced output in response to a sharp drop in demand, the worlds top diamond producer, De Beers, said on Tuesday.
Global demand for rough diamonds is expected to drop by some 60 percent this year as the global recession hits demand for luxury goods, industry consultants have said, noting lower demand from the vital U.S. market.
De Beers, 45 percent owned by Anglo American Plc (AAL.L), has said it wants to slash production by a "significant" amount.
Stephen Lussier, De Beers marketing director, said De Beers production cuts were confidential, but that together with cuts being made by others they would see prices rise.
"We have no clue when prices will rise, maybe later this year. But realistically by the fourth quarter of next year, we shall see by Christmas 2010. If it comes quicker we are ready to ramp up production," he said on the sidelines of a mining conference in Cape Town.
The company also wants to lay off about a third of its 3,500 workers in South Africa, citing low demand for luxury goods. Consultations on job cuts have also begun at mines in Botswana, Namibia and Canada and its London headquarters.
Lussier said the diamond sector was characterised by reduced consumer demand, low liquidity levels, industry debt and high inventory levels.
Poor retail Christmas sales last year would see a significant return of unsold goods to cutting centres in the first quarter of this year, he said.
Huge debts and high inventories held by cutting centres had choked demand for rough diamonds, he said.
Their debt peaked at $13.9 billion in September and was at $12.6 billion in December, Lussier said, adding that the industrys borrowing base was shrinking owing to the credit crunch. Demand for rough diamonds would only recover once this was addressed, and possibly return to previous levels.
"This crisis has come upon us with great speed and caught us by surprise. In September we could not get diamonds out of the ground fast enough to meet demand," Lussier said.
Until recently, the rough and polished diamond market has been estimated at $50 billion a year, but prices of polished diamonds have fallen 13 percent since reaching a peak in August, according to Polishedprices, an independent news and price list provider to the diamond industry.
The United States, which accounts for about one-half of world diamond demand, as well as major consumers Europe and Japan have been hit hard by the global economic slowdown.
Lussier said diamond markets in China and India were growing fast and would equal U.S. demand by the end of this decade.
"Chinese have an inherent desire for diamonds, they have a much higher per capita consumption than the U.S., the appetite is there," he said. "They should reach the consumption levels of U.S. by the end of this decade."
Reuters, Reporting by James Macharia, Editing by Peter Blackburn
8 February 2008
Asian Buyer Names 101-Carater The Shizuka Diamond
RAPAPORT... The owner of the largest colorless diamond ever sold at auction in Asia has named the stone The Shizuka Diamond. Christie’s sold the 101.27 carat, F color, VVS1 shield shape diamond in May 2008 for $6.21 million (HKD 48.9 million), or about $61,333 per carat.
The unnamed buyer named the diamond as a gift for his wife of 16 years, Christie’s reported. The stone was cut from a 460 carat rough to 101.27 carats, into an unusual modified shield shape flaunting 92 brilliant facets, the auction house added.
Diamonds.net - New York,NY,USA
6 February 2009
De Beers, Brides Magazine Partner on Duo Diamond Ring Launch
RAPAPORT... De Beers Diamond Jewellers will debut Duo, an interlaced diamond engagement ring and wedding band, at stores on February 10, 2009. The Duo diamond ring design incorporates what De Beers calls an "intimate twist" of two bands, tiny diamonds on a smooth platinum ring and a central round stone. "The delicate entwine effect and contrast in texture of the sparkling micropavé and flawless platinum create a modern and elegant style," according to De Beers.
De Beers and Brides magazine have partnered on the launch of Duo (pictured) in conjunction with the magazines 75th anniversary. Duo will be featured in the March/April issue of Brides, and readers may enter a drawing to win a Duo ring, valued at $18,000. De Beers stores, meanwhile, are hosting interactive events for engaged and preengaged women in New York, Washington D.C., Bal Harbour, Naples, Dallas, Houston, Las Vegas, Beverly Hills, Costa Mesa and San Francisco. Ten De Beers stores will also unveil "bridal windows" to highlight Brides magazine, featuring floral designs and photo exhibitions.
Rapaport News
6 February 2009
Diamonds & Gemstones: brighter long term prospects
After a strong first half in 2008 current conditions in the diamond market are tough. Retail sales of diamonds, a discretionary purchase, have been hit by the economic crisis. The credit crunch has dried up liquidity in the diamond pipeline, which has relied heavily in the past on bank finance. Diamond stocks are high. The producers are cutting back production to support prices and conserve cash, while explorers are battling to find funding. Share prices in the industry are down some 75% over the year.
But the industry has a long history and has survived worse downturns in the past returning leaner and fitter each time. Although the odds may be long the returns on capital in the sector can be huge. For example the world’s largest diamond mine by value, (Jwaneng in Botswana), is reputed to have been the most profitable mine of any type anywhere in the world, with a profit to revenue ratio in excess of 90% (turnover $2bn pa, profit around $1.8bn) Similarly the Marsfontein diamond mine in South Africa produced such wonderful stones at the outset that it recouped its exploration and development costs within five days of production.
It is also an industry with a potentially bright future as there is a widespread belief that there will be future supply shortages due to the combination of increasing demand from the emerging markets but constrained supply (there are only 20 years of known diamond reserves left in the ground). Moreover today’s difficulties could make the future rough shortages more acute and the upswing, when it comes, more favourable.
Before looking in detail at current prospects for the sector here’s a quick review of the basics of supply and demand.
Fundamentals of Diamond Supply and Demand
Diamonds were formed billions of years ago from carbon crystallised at great pressure and heat in the earth’s mantle some 150km below the surface. The ‘elevators’ which brought them and other minerals to the surface were pipes of molten rock known as kimberlites. To date some 7,000 kimberlites have been found, though fewer than 1,000 of these are diamondiferous, and just 30-50 have included sufficiently viable quantities to become diamond mines.
Although kimberlites are the primary source diamonds are also found in secondary deposits where the stones have been washed away from the host kimberlite pipes and concentrated by water action in either alluvial (river) deposits or in marine deposits on the sea floor or beaches. While kimberlites are generally the biggest and most profitable mines alluvial diamond projects, which tend to be small to medium size, nonetheless have a number of advantages. They have a low capital cost, equipment can be reused and they can generate cash relatively quickly, even just 18 months after initial exploration. Also they often enjoy a high value per stone, as only relatively large diamonds are found. Note that diamonds are unlike other commodities as each stone is unique. Depending on the size, colour, quality (and cut for polished diamonds), the price can vary from a few dollars to $50,000+ per carat (a carat is 0.2g). This means that any comparison involving carats needs to be treated with care as the value of each carat is also crucial.
Diamond production is geographically concentrated, with just 9 countries accounting for 97% of annual output. Botswana is the largest producer by value, with a 24% market share and in total more than 60% of world production comes from Africa. The picture in carats is quite different because of the enormously different stone size profiles of the countries; the average $/ct in 2007 ranged from $722 in Lesotho to just $13 in the DRC (and the range from individual mines can be far greater than this).
World Diamond Production 2007
Source: Kimberley Process Certification Scheme
Historically output has also been concentrated in the hands of a few majors including De Beers, the Russian company Alrosa, Rio Tinto, BHP and Harry Winston. Together they have typically accounted for around three quarters of world production, though the share is changing as a number of new producers, such as Gem Diamonds and Petra Diamonds, have come onstream in the last few years on the back of the favourable long term fundamentals in the diamond market.
Demand-wise diamonds have been desired for centuries, or even millennia, because of a combination of their history and their physical and emotional properties. Physically diamonds are the hardest substance in the world, they have high thermal conductivity and a number of optical properties including high brilliance, refraction and lustre. Emotionally they have been seen as a symbol of love, prestige and beauty for many years, and of course there have also been a number of memorable expressions associated with diamonds. “A diamond is forever”, coined in 1947, was named the best slogan of the 20th century by Advertising Age, while everyone knows that diamonds are a girl’s best friend. Indeed it has been pointed out that diamonds have achieved almost universal product recognition. About 90% of the value of diamond production is polished in the diamond cutting centres (such as India, Israel, Antwerp and New York) and used in jewellery, with the remainder being used for industrial purposes such as drilling, computer chips and stone-cutting.
Diamonds are owned by hundreds of millions of women around the globe though there are significant differences between countries in the size and qualities demanded, in the types and designs of jewellery sold, and in the relative importance of the gift/self-purchase market and in the occasions/rites of passage for which diamonds are acquired.
Recent Developments in the Diamond Market
Until fairly recently there was widespread optimism in the diamond market about future long term supply-demand fundamentals with an expectation that the industry was on the cusp of moving into an era of supply shortage and rising prices. Many presentations were given by many companies showing a chart similar to the one below, which shows BHP’s view of future the global supply/demand balance at the time that it was presented in 2007. On the one hand demand was expected to rise steadily driven by ongoing demand growth from the US, (the world’s largest market accounting for almost half of world demand), and strong growth from the newer diamond markets of India, China and the oil states. On the other supply growth was expected to be constrained by the combined effect of declining production at several maturing mines, the lack of new major discoveries in recent years and the long lead times to build a large mine.
BHP’s View on the Future Supply/Demand Balance in 2007
At the beginning of 2008, although there were plenty of challenges facing the industry, the prevailing view was still one of rising demand but supply constraints. Rough prices duly rose some 15-25% during the first half of the year.
Since September 2008 however there has been a sea change. The economic crisis has hit the retail sales of diamond jewellery in the all-important Christmas season by more than was anticipated in the market. This, as always, has had a far greater impact on the rough market because the effect is amplified by the large pipeline inventories required to support the many different types of diamonds and diamond jewellery. On this occasion it has been made even worse by the credit crunch and lack of liquidity. Sales in the rough market have been decimated and prices are down some 30-50%, though prices of polished diamonds have fallen far less.
The diamond sector has responded in a number of ways. Many producers have announced cutbacks. De Beers for example has embarked on a programme which will reduce output “significantly” this year, Rio Tinto has cut output at Argyle mine in Australia, shut its diamond processing facilities for up to three months for maintenance and delayed the mine development programme at Argyle, its biggest mine, while Alrosa has stated that it will sell significantly fewer diamonds this year. The exploration and small and mid-tier producers companies meanwhile are looking at new funding routes such as sales agreements, private equity, development agency funding and Middle Eastern capital in order to survive. The mood now is very subdued in the market and 2009 is expected to be very challenging.
In the meantime the equity markets have hammered the sector. The market cap of the 24 diamond companies listed on the London Stock Exchange has fallen 75% from £1.8bn at the end of 2007 to £485m by the end-08. The flip side of that of course is that companies are now at historically very cheap levels and, arguably, there are still some grounds for optimism.
· De Beers has commissioned and published a report on luxury goods suggesting that in the current climate consumer are growing fatigued with mass marketed luxury products and will gravitate instead towards fewer but better things. Buy less but buy better! This may favour purchases such as diamonds which can be enjoyed for a lifetime and passed down generations.
· The company announced that it will unveil a new “big idea” later this year to drive diamond category growth.
· In previous recessions sales of ‘rites of passage’ jewellery such as diamond engagement rings, have generally held up.
· Since diamonds are available in every size and quality there are stones for every budget
· There is still plenty of scope for further demand growth in the emerging markets.
· The outlook of future supply constraints has not gone away. Indeed it has been made more likely after the recent setbacks and exploration cutbacks.
· History has suggested that when a rebound comes in diamond prices it comes quickly and sharply. Surpluses turn very quickly into shortages and this could be exacerbated by the production cutbacks. It could be argued that the foundation for a strong recovery in diamond prices is being laid.
Perhaps the most widespread view now is that the long term prospects are still favourable but the timing of any supply deficit has been pushed out. Meanwhile the short term will be extremely challenging, and as Gareth Penny, Managing Director of De Beers, pointed out the problem with the long term is “getting there …... without action in the short term there can be no success in the long term”.
So in the short term cash will be king. The market will favour cash, production, innovative financing solutions and companies with sound projects which are viable at lower prices. Potential takeovers could be attractive.
Jacjie Steinitz, Proactive Investors USA & Canada - USA
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).
15 September 2008
Lotus Europa Diamond Edition Makes Flashy Debut
HETHEL, England — The diamond-encrusted Lotus Europa on display at the automakers birthday celebration on Sunday was a fake. Yes, the automaker commissioned a diamond-set special model valued at $268,000 to mark its 60th anniversary. But it noted in a statement that "for security reasons, the commemorative Lotus Europa has been fitted with replica diamonds whilst on display."
Still, the images of the real deal were an eye-popper and an invaluable wellspring of inspiration for punsters within the company who couldnt resist calling the vehicle "a real gem of a car."
The car was adorned with 164 round-cut diamonds with a market value of $198,454, said Lotus. The appearance package included high-gloss black paint modified with tiny glass flakes "giving the appearance the car has been showered with diamonds." The diamonds were scattered in such unusual spots as the exterior badge and the speedometer. Other cabin touches included quilted trim and a specially designed rev counter.
Diamonds are the traditional gift at a 60th-anniversary celebration.
Edmunds. com/Inside Line - Santa Monica,CA,USA
15 September 2008
Alrosa Expanding into the DRC
(September 15, 08, 7:08 IDEX Online Staff Reporter)
In an effort to widen its sources of diamonds, Russian miner Alrosa will soon start exploring for the gem in the Democratic Republic of the Congo. The agreement to allow Alrosa to prospect in the African country was reached at a meeting between Alrosa CEO Sergei Vybornov and DRC President Joseph Kabila.
Alrosa is the world’s second largest diamond company and holds a virtual monopoly on all rough diamond activities in Russia. Russia is the leading source of rough diamonds by volume, and second in value. In 2007, Russia’s diamond production was 38,291,200 carats, or 22.77 percent of global production. The value of Russia’s production was $2.625 billion - 21.68 percent of the value of global production in 2007.
The company is in the process of establishing itself as the leading global diamond producer. In its efforts to achieve this goal, it is overhauling its sales system and seeking new sources of rough diamonds - including outside of Russia.
Alrosa plans to focus its exploration activities in southern DRC. It already has two joint ventures in Angola - The Catoca and Kamachia-Kamajiku diamond mining projects.
IDEX Online Staff Reporter
11 September 2008
Rockwell Finds 189.6 Carat Diamond
(September 11, 08, 11:01 IDEX Online Staff Reporter)
Rockwell Diamonds mined a 189.6 carat diamond at its Klipdam mining operation north of Kimberley in the Northern Cape Province of South Africa. Initial indications suggest that the diamond is D Color, the miner said on Thursday.
The unusual find has an oval, somewhat flattened and strongly resorbed shape and shows features typical of top color high value type-2 diamonds.
Aside from sparse black inclusions on the one side of the rough diamond, the heart of the stone appears to be clean and could result in a final polished diamond of considerable value, the company added.
Rockwell has also recovered a rare 1.13 carat intense blue flawless diamond from the same mine. The miner is considering its marketing options for this diamond, which has been submitted for valuation.
Klipdam has produced rare fancy stones in the past, including a 7.28 carat intense flawless pink stone which was sold in November 2007 for $145,000 per carat.
Rockwell regularly recovers intense and vivid yellow colored diamonds from both Klipdam as well as the adjacent Holpan operation, and from its Wouterspan and Saxendrift operations on the Middle Orange River.
“We are ecstatic with the recovery of yet another large stone of exceptional size and color at Klipdam,” Rockwell President and chief executive John Bristow said, noting that finding diamonds greater than 100 carats in size “are an inherent part of the diamond population found in these unique alluvial deposits.”
So far four stones over 100 carats in size have been recovered from the site
IDEX Online Staff Reporter
11 September 2008
Diamond-set leather case offered for iPhone
NEW YORK, USA 9 September - Apples wildly popular iPhone now has a diamond-studded accessory for those with the money to buy it.
A case made of leather and set with 272 diamonds, 6.8 carats total weight, is now available.
The leather case is embossed with the logo of Noreve St. Tropez on its rear.
A service of the Antwerp Facets News Service (AFNS).
1 September 2008
Colored diamonds see popularity grow
When brown doesnt sell, call it champagne
Melanie Erickson has never liked diamonds all that much.
Until she noticed champagne-colored diamonds six years ago at markets and gem shows she visited for her Sioux Falls, S.D., business, the Bead Co.
"Ive never been a diamond person, but the minute I saw them I fell in love with them."
Now she owns a princess-cut, champagne-colored diamond ring with two bands of champagne diamonds surrounding the main stone.
"I like things to be antique or have an eclectic look. Its not the same thing as everyone else has. Its something original and unique." The champagne- or cognac-colored diamonds look soft and antique, says the 34-year-old beader and jewelry designer.
Colored diamonds are popular but they arent really new, says Paul Curtin, owner of Raymonds Jewelers in Sioux Falls. "Ive carried them for 20 years."
Jerry Ehrenwald, president and CEO of the International Gemological Institute, agrees. Natural-colored diamonds have always been around, he says.
Colored diamonds can be purchased from department stores to upscale jewelers. They are experiencing an uptick in popularity, although demand has varied over the years.
"Demand has grown in the last decade as a result of Hollywood," says Ehrenwald, who is a graduate gemologist and a senior member of the American Society of Appraisers.
The diamond company, De Beers, had an overabundance of brown diamonds and renamed them champagne and cognac to make them more desirable, says Alon Spektor, co-owner of The Diamond Room in Sioux Falls. "A champagne is a glorified brown diamond."
The gimmick caught on. After all, people have their own tastes about whats beautiful.
And celebrities helped.
Actress Cameron Diaz once wore a 20-carat cognac-colored diamond at the Academy Awards and Jennifer Love-Hewitt wore a 7-carat brown diamond ring, according to the Web site of the Natural Color Diamond Association, an international trade organization that is an authority on natural color diamonds.
Celebrities get national attention for what they wear on the red carpet, and that translates into an increased demand for colored diamonds, jewelers say.
There are more than 300 colors of natural diamonds including pink, blue, yellow and green. Red is the most rare natural diamond. The most intensely colored stones are called fancies and are more rare and valuable than colorless diamonds. For example, a deep canary yellow diamond or a naturally occurring blue diamond are more valuable and costly than their colorless cousins.
"The color is what determines the price," says Spektor.
When grading the color of colorless diamonds, a grade of D, or colorless, is the most sought after, says the IGI Web site. The further down in the alphabet, the more color is present, so the diamond is less valuable per carat, Ehrenwald says. However, once the grade goes past Z, the diamonds "start to appreciate ... [and they] pick up so much body color that it becomes attractive."
Trace elements in the stone help determine the color. Over the millennium, naturally occurring radiation and intense pressure colors the stones. Nitrogen imparts a yellow or orange shade, boron gives a blue shade and hydrogen produces violet shades in a diamond.
"Its the originality" of the colored diamonds, says Erickson. "People are realizing they dont have to do the same thing as everybody else."
And of all the luxuries you could spend your money on, be it furs, cars or diamonds, Ehrenwald says, "diamonds hold their value."
The News Journal - Wilmington,DE,USA, By DORENE WEINSTEIN
27 August 2008
DTC diamond prices up 16 percent through August
LONDON, UNITED KINGDOM - De Beers’ Diamond Trading Company (DTC) said it raised rough diamond prices by a cumulative average of 16 percent from the beginning of this year through the August sight. The DTC now provides this information at three points during the year—before the JCK Las Vegas Show at the end of May, before De Beers releases its annual results in late July, and before the September Hong Kong Jewellery and Watch Fair.
Some boxes have gone up in price more than others, and the sharpest increases this year have been predominantly in rough that produces highly sought after polished stones of better than SI quality or weighing more than 1 carat, the DTC said.
"The DTC takes a long term, sustainable view on its pricing and decisions are influenced first and foremost by demand for polished," Mahiar Borhanjoo, the DTC’s executive director of sales and client services, said. "So far during 2008, DTC has seen strong and continuing consumer demand for most categories of polished diamonds, especially in the larger goods."
The Rapaport news service reported that the August sight brought in an estimated $725 million for the DTC.
A service of the Antwerp Facets News Service (AFNS).
22 August 2008
Global diamond demand stays strong
Increasing global demand for top-quality diamonds keeps market alive.
Despite cautions of an economic downturn in the U.S. in 2008, De Beers has been able to boost rough diamond prices by 16% on the back of strong demand. De Beers’ marketing unit, The Diamond Trading Company (DTC), has managed this through incremental raises throughout this year.
The latest cumulative figure includes a further hike in August, a July price increase of 5% on top of previous price hikes of 8.5% this year. According to Mahiar Borhanjoo, Executive Director, DTC, Sales and Client Services, so far this year, the DTC has seen strong and continuing consumer demand for most categories of polished diamonds, especially in the larger goods. He said that the marketing unit took a long-term, sustainable view on its pricing, and decisions were influenced first and foremost by demand for polished gems.
Slumping U.S. retail sales have only put a damper on cheaper, mass-marketed items that utilize lower-quality gems. Buoyant growth in China, India, Russia, and the Middle East is helping to even out some of the U.S. impact. De Beers, the controller of around 40% of the rough diamond market, posted a 10% rise in first half rough diamond sales to $3.3 billion.
Dubai’s diamond business is also benefiting from the skyrocketing diamond demand. The Dubai Diamond Exchange (DDE) reported that the total trade in rough diamonds in Dubai grew 36% to $3.03 billion in the first half of 2008, compared to the same period last year. The value of Dubai’s rough diamond imports rose 23% to $1.15 billion, while exports surged 44% to $1.88 billion. Dubai exported $2.82 billion worth of rough diamonds last year, while imports for the same period stood at $2 billion.
While exports in terms of carats grew marginally in the first half of the year, the price of diamonds rose by 10% and helped push the overall trade to high levels. For the first half of the year, Angola, India, Europe, and China were the top diamond trade partners for the Gulf emirate. Together, they accounted for around 85% of total trade volume. Retail diamond jewellery turnover in the GCC is worth about $2 billion a year and is expected to see a significant increase this year, the Dubai Chamber of Commerce and Industry said. The DDE plans to hold rough diamond sales weeks every month, starting from August 24. The DDE is the only exchange in the region to service the diamond trade from mining to retail.
Stockhouse - Vancouver,BC,Canada, Leia Michele Toovey
1 August 2008
Promoting Diamonds on MySpace
Theres plenty of rock on MySpace--but rocks? Diamonds and gems are almost the last thing youd expect to find on the social networking site thats become a major marketing tool in the world of music.
But now, according to the New York Times, French jeweler Cartier has decided MySpace is a gem for their purposes, too. With 3,800 "friends," Cartiers MySpace site advertises its Love jewelry collection, and includes samples of music and film clips. This signals a change of direction for luxury brands when it comes to the company they keep. They times, they are indeed a changin.
Cartier, owned by Richemont, is one of the first luxury brands to use a social networking site, but it begs the question: can you sell $5,000-and-up tank watches to kids looking for the next free download?
In the Times piece, Cartier execs explain that while they may not be selling bling on MySpace, they are getting the word out--and that MySpacers can sample sample their music from artists like Lou Reed and Grand National, with themes of love composed exclusively for Cartier. (And commissioning those songs did not come cheap.)
Modern marketers are excited about blending entertainment and marketing and spreading it through chain letter-style links . But luxury brands have so far been snobs about social network sites.. Cartier took the risk, a spokeswoman for the brand said, because it was a "different way to talk to a young audience."
If Cartier is marketing through MySpace--whats next? Maybe its time to search out Louis Vuitton on Facebook.
by Merle Ginsberg, Conde Nast Portfolio - New York,NY,USA
4 August 2008
Rich add a little sparkle to their investments
Rich add a little sparkle to their investments
4:00AM Monday August 04, 2008
This 21.9 carat ring fetched over US$3 million. Photo / Bloomberg
Diamonds, like art, are a commodity that is gaining attention as an alternative investment.
Increases in the price of the rarest colourless and coloured diamonds are attracting wealthy investors and structured funds as stockmarkets and real estate values decline.
The price of five-carat gems with the potential to be sold at US$1 million ($1.35 million) or more has risen 76.5 per cent in the year to May 2008, according to www.idexonline.com, the website of the International Diamond and Jewelry Exchange.
"Theres a group of very savvy, tremendously wealthy people who have put a small portion of their fortunes aside to invest in diamonds," says Francois Graff, managing director of London-based Graff Diamonds International. "Theyve made incredible returns."
Five years ago, dealers were paying US$70,000 per carat for colourless diamonds of 10 carats and more, says Graff.
"Now were paying over US$200,000 per carat."
There are only about 200 highest-grade, D-flawless, colourless diamonds of more than five carats discovered per year, says Raymond Sancroft-Baker, Christies Internationals European director of jewellery. The annual yield of large-scale blue and pink stones is considerably smaller.
"Diamonds are getting rarer. The earth just isnt giving them up," says Sancroft-Baker.
Diamond Circle Capital Plc, a specialist investment fund listed on June 25 on the London Stock Exchange by Diapason Commodities Management SA, is the first publicly listed fund to invest in rare coloured and colourless diamonds, according to the International Diamond and Jewelry Exchanges website.
"Over the last 12 months, the best pink and blue diamonds have increased in price between 75 and 100 per cent," says Alan Bronstein, a New York diamond dealer whose Aurora Collection of 296 coloured diamonds is on loan to the Natural History Museum in London. "These are some of the rarest and most colourful things in the world."
Graff says that within the last three months he has sold a D-flawless, emerald-cut, colourless diamond of 243.96 carats to an Asian buyer for more than 50 million ($134 million).
"There were quite a few people ready to buy that stone," says Graff, who has placed a similar price on a flawless, 20-carat, fancy, deep-blue diamond.
The record for any gemstone sold at auction is US$16.5 million with fees paid for the 100.1-carat Star of the Season pear-shaped, colourless diamond at Sothebys, Geneva in May 1995, says Sothebys.
"When stockmarkets go down, its always good for us," says Joanna Hardy, senior specialist at Sothebys jewelry department in London. "People with a lot of surplus cash turn to something more tangible."
Hardy says she doesnt expect prices for large-scale colored and colorless stones to fall within the next six months. Her company is selling diamonds to buyers from a record number of countries.
"Its not as if there are suddenly going to be more of them," she says.
Bloomberg
17 July 2007
No Misconception -- Lab Created Diamonds are Distinguishable
RAPAPORT... As many of you may have read, on June 21, The New York Times published an article (which was posted on diamonds.net) that insinuated – via a series of quotes – that lab-created diamonds are indistinguishable from the real thing, which is inaccurate.
While the referenced jeweler could not detect the lab-created diamond with his loupe, the gemologists at IGI have been accurately and consistently detecting synthetic and simulated gemstones for over 30 years.
In 2003, “Good Morning America” came to IGI and "tested" three diamonds, one being Apollo man-made, to see if IGI could discern which was which ("Dead Ringers" airing September 3, 2003.) IGI succeeded, and continues to combat claims that these stones are indistinguishable from natural diamonds.
In January 2007, IGI launched a report designed specifically for laboratory-grown diamonds, due to the influx of commercially available synthetic diamonds into the marketplace and the need for consumer education as well as the increased demand from both its clients and the industry for this service.
The reason I chose to publicly address this issue, is it is vital for industry members to keep each other informed of such misconceptions, so that we can together, educate and assure consumers there is an absolute and accurate way to differentiate natural mined diamonds from those grown in a laboratory.
By Jerry Ehrenwald, Diamonds.net - New York,NY,USA
16 July 2008
Diamonds are an investors best friend
Diamonds are an investors best friend
Updated: 2008-07-16 07:48
Diamonds, like art, are a commodity that is gaining attention as an alternative investment.
Increases in the price of the rarest colorless and colored diamonds are attracting wealthy investors and structured funds as stock markets and real-estate values decline.
An employee at a diamond merchants workshop inspects diamonds while grading them in Mumbai April 30, 2008.
The price of 5-carat gems with the potential to be sold at $1 million or more has risen 76.5 percent in the year to May 2008, according to idexonline.com, the website of the International Diamond and Jewelry Exchange.
"Theres a group of very savvy, tremendously wealthy people who have put a small portion of their fortunes aside to invest in diamonds," said Francois Graff, managing director of London-based Graff Diamonds International, in a telephone interview. "Theyve made incredible returns."
Five years ago, dealers were paying $70,000 per carat for colorless diamonds of 10 carats and more, said Graff.
"Now were paying over $200,000 per carat," he said.
There are only about 200 highest-grade, D-flawless colorless diamonds of more than 5 carats discovered per year, according to Raymond Sancroft-Baker, Christies Internationals European director of jewelry. The annual yield of large-scale blue and pink stones is considerably smaller.
"Diamonds are getting rarer. The earth just isnt giving them up," said Sancroft-Baker.
The commodity asset-management firm Diapason Commodities Management SA listed a specialist investment fund, Diamond Circle Capital Plc, on the London Stock Exchange on June 25. Diapason did not immediately respond to e-mailed requests for comment.
Diamond Circle Capital is the first publicly listed fund to invest in rare colored and colorless diamonds, according to International Diamond and Jewelry Exchanges website.
The fund, which in June 2007 was due to have a $400 million start-up, raised $74.32 million through its initial public offering, said the website.
"Over the last 12 months, the best pink and blue diamonds have increased in price between 75 and 100 percent," said the New York diamond dealer Alan Bronstein in an interview.
Bronsteins Aurora Collection of 296 colored diamonds is currently on loan to the Natural History Museum in London.
"These are some of the rarest and most colorful things in the world," said Bronstein, whose diamonds are specimen examples of less than 3 carats.
"They used to be viewed as curiosities," said Joanna Hardy, senior specialist at Sothebys jewelry department in London. "Now buyers are taking colored diamonds much more seriously. People want to have something different. And they value rarity."
In May, the Codium Fund, specializing in investing in colored diamonds of at least 1 carat, was to be launched in the Netherlands Antilles with a target investment of $100 million, Arab Times said on its website.
Over the last five years, managers of art-investment funds, which buy and sell a pool of works for a set management fee and a share of any profit made, have been keen to promote art as an alternative asset class. So far, the Fine Art Fund, started in 2004, is the only one of these vehicles that has remained conspicuously active in the West.
"The diamond market, like the art market, is based on individual transactions," said Graff, whose father Laurence is a bidder at many Sothebys and Christies contemporary-art auctions. "The wealthy dont need to invest in funds. They can just pick up a telephone and buy the things for themselves."
Graff said that within the last three months he has sold a D-flawless, emerald-cut colorless diamond of 243.96 carats to an Asian buyer for in excess of 50 million pounds ($99.6 million). "There were quite a few people ready to buy that stone," said Graff, who has placed a similar price on a flawless 20-carat fancy deep-blue diamond.
The record for any gemstone sold at auction is the $16.5 million with fees paid for the 100.1-carat "Star of the Season" pear-shaped colorless diamond at Sothebys, Geneva in May 1995, according to Sothebys.
"When stock markets go down, its always good for us," said Hardy. "People with a lot of surplus cash turn to something more tangible." Sothebys was selling diamonds to buyers from a record number of countries, Hardy said.
"Weve got a lot of customers from the Middle East, Russia and the Ukraine. And there are more buyers from Europe than America at the moment," she said.
Hardy does not expect prices for large-scale colored and colorless stones to fall within the next six months.
"Its not as if there are suddenly going to be more of them," she said.
China Daily
9 July 2008
DTC raises rough prices 5-15 percent
AFNS] LONDON, U.K. 9 July 2008 - De Beers Diamond Trading Company (DTC) increased prices for rough goods by an average of a little more than 5 percent at its July 7-11 sight, the sixth of the year. Prices for better goods that produce polished weighing more than 1 carat went up as much as 15 percent, while prices for I quality goods remained unchanged.
The company has promised to release advance pricing information before the sights that preceded the JCK Las Vegas Show in May and the September Hong Kong trade show, which will mean it will disclose information again before the August sight.
It released detailed information to sightholders before the July sight at their request.
A service of the Antwerp Facets News Service (AFNS).
9 July 2008
HRD Antwerp launches refined cut grade
Instead of reporting about two criteria - proportions and finish - the HRD Antwerp - Diamond Lab will now assess the diamond cut according to three criteria, being proportions, symmetry and polish. In addition, HRD Antwerp now introduces an ‘excellent’ cut grade on top of its very good quotation.
"We needed to adjust our system in order to meet the market demands, since diamond dealers felt there was a discrepancy in grading terminology between different diamond labs. The introduction of an excellent quotation does not imply that our very own very good grade will be downgraded. On the contrary, we have upgraded part of the top-level cuts which, before, would get a ‘very good grade", explains Georges Brys, General Manager of HRD Antwerp.
The HRD Antwerp cut grade is not a black box, as its system is fully transparent and consultable. The standards and criteria are checked with the diamond dealers and manufacturers and are based upon an optimal optical performance. But most of all, the entire system is founded on extensive research on hundreds of thousands of diamonds.
The new cut grade will be operational as of January 1st, 2009.
HRD Antwerp holds a symposium on its HRD Antwerp Cut Grade on July 17, 2008 at 5 pm at its premises. For more information, contact Ms Veerle Van Esbroeck at veerle.van.esbroeck@hrdantwerp.be - Registration is required.
A service of the Antwerp Facets News Service (AFNS).
9 July 2008
Diamond-filtered vodka offered for sale in Poland, United States
[AFNS] MASSACHUSETTS, USA 09 July 2008 - A high-end vodka produced in Poland, where it is filtered through 600 1-carat diamonds and diamond dust, is now available for sale in the northeastern United States.
Diamond Standard Vodka has been made near Warsaw since 2004, but Michael Smolana, owner of the company, had problems getting it patented and exported, the Boston Herald said.
He finally made contact with TransBorder Marketing Inc. in Massachusetts, which has sold approximately 3,000 bottles of the vodka at about $100 each and is expanding into New York and New Jersey. The marketing slogan is "Fashion you can drink."
A service of the Antwerp Facets News Service (AFNS).
7 July 2008
De Beers Polishes Its Image
When Gareth Penny became De Beers Groups chief executive in 2006, the worlds biggest diamond producer was mired in some of the worst crises in its 120-year history.
When Gareth Penny took over at De Beers in 2006, the company faced allegations of buying conflict diamonds, price-fixing and racial discrimination. WSJs Vanessa OConnell spoke with him recently to see how the company has dealt with the challenges.
Rapper Kanye Wests "Diamonds From Sierra Leone" in 2005 and the movie "Blood Diamond" in 2006 were triggering a wave of negative publicity about buying "conflict diamonds," which were sold in the 1990s by African rebels to help pay for their wars. De Beers had already worked with the United Nations, governments, and human-rights groups to introduce the Kimberley Process, a voluntary certification program for rough diamonds that allows the origin of the gems to be traced, but the company was vulnerable to a consumer backlash nonetheless.
On its home turf in South Africa, De Beers was criticized for not pushing hard enough for black participation, both in diamond cutting and its own upper ranks. And, after years of sparring with antitrust regulators in the U.S. and Europe, it was trying to settle class-action suits in the U.S. alleging that its monopolistic practices had long kept the price of rough diamonds artificially high.
Today, De Beers is "in transition," says Mr. Penny, 45 years old. The company, whose sales slipped 2.8% last year to $6.84 billion, has a new business model and is trying to polish its image. And Mr. Penny now casts himself as an unofficial ambassador for Africa who can help bring businesses and jobs to the continent. Excerpts from a recent interview:
WSJ: When you took over, De Beers faced several crises. Which have you resolved? What remains?
Mr. Penny: Over the last six or seven years we have dramatically refashioned the business that we are in, exiting third-party contracts and no longer trying to control supply. Our market share today is still significant, but it is 40% as opposed to 80% or 90% of the diamond business. It is now a very competitive business. We go head to head with all manner of major mining companies everywhere we do business and, on the retail side, with the Cartiers and the Tiffanys and the Bulgaris.
With regard to conflict diamonds, De Beers has worked with many governments around the world to form the Kimberley Process, which has been so successful in stemming diamonds used to fund conflict. One hundred percent of De Beers diamonds today are conflict free.
We have also completed a major black-empowerment deal so that 26% of our South African company is in the hands of a black investment vehicle. We have 50-50 partnerships with Botswana and Namibia. We are looking for ways in which to create opportunities for other businesses -- emerging businesses -- in Africa. Annually we are investing something like $4.6 billion with partners into African economies.
And a judge has recently accepted the [$295 million] settlement reached in the U.S. class action.
I am pleased to say we made significant progress.
WSJ: What is the evidence of that progress?
Mr. Penny: With conflict diamonds, the countries that the issues had been around -- Liberia, Sierra Leone, etc. -- are countries at peace. It is estimated that 99.8% of all diamonds in the world flow through the Kimberley Process, which is extraordinary.
If you look at the contribution that the diamond industry makes in a country like Botswana, 33% of gross domestic product is directly accountable to the diamond industry and to the mines that De Beers operates with its partners. And nearly two-thirds of foreign-exchange revenues are generated through the diamond business. I think all that points to the kind of contribution that we make. [Anglo American PLC owns 45% of De Beers, the Oppenheimer family owns 40% and the government of Botswana owns 15%.]
WSJ: De Beers has a reputation for being very secretive.Why has it opened up and become more active publicly?
Mr. Penny: The product we sell stands for the deepest of human emotions: love and commitment. So we have taken the view that we are enormously proud of what De Beers and its partners are doing today. We want people to know that with any diamond they buy, that product is not only deeply meaningful to them but, in terms of the contribution that it is making, to Africa. If we can tell our story across the world, it is positive for us, and the industry, and for Africa.
WSJ: Have De Beers and the diamond industry embraced change quickly enough?
Mr. Penny: It is fair to say that in the 20th century the industry probably didnt react as quickly as it needed to. It has been quickly catching up in terms of emerging major diamond brands and the significant positions they are occupying in the luxury-goods space. And if you look at huge growth markets like India and China and you see the speed with which diamond acquisition and diamond gifting is becoming a part of everyday life, it is pretty dramatic.
WSJ: There have not been any significant discoveries of diamond mines since 1990. Does that mean prices are going to shoot through the roof?
Mr. Penny: Finding diamond mines isnt easy. We spend $100 million a year looking for diamond mines around the world. If we are successful we may find one major discovery in a 10-year period. So there is an emerging supply-demand gap. Demand is driven both by the existing markets -- the American market is important -- but equally by the new emerging markets, most particularly, India and China. So you are seeing -- and you are going to see -- price rises. I wouldnt describe them as going through the roof, but I think they will be systematic and sustained. Our prices went up 8.5% in the earlier part of the year, and since then, there have been further price rises.
WSJ: The U.S. dollar is weak world-wide and yet it continues to be used as a base for diamond trading. Why?
Mr. Penny: Well, it is something we have looked at. We used to use pounds up until the 50s. But in the last 50 years we have traded in dollars. We are conscious of the fact that America represents 50% of our market. And there are other countries whose currencies are tied to the dollar -- which takes us up to something like two-thirds of the consumer market. So for the time being, we have no plans to change.
WSJ: What are your plans for the De Beers retail business?
Mr. Penny: Well, it is still in start-up phase, [but] it is expanding very rapidly. By the end of this year it should have just short of 50 stores, which puts it probably in the top five [jewelry] retailers in the world. We will have to see how the year pans out as a whole, but I am pleased with the progress.
WSJ: Any thoughts on the U.S. economic slowdown?
Mr. Penny: The jewelry market, like many other sectors of the economy, is going through a challenging period. Some retailers obviously will do well, even in difficult circumstances. And others may not. Longer term, we are optimistic about the American market. It has been a robust and growing and healthy market for decades. We would expect to revert to that pretty soon.
By VANESSA OCONNELL Wall Street Journal - USA
5 July 2008
Super-rich still pay dear for rare diamonds
Sat Jul 5, 2008 3:30pm EDT
LONDON (Reuters) - The rapid rate of increase in wholesale prices of rare polished diamonds is unsustainable, but for now the growing number of super-rich are paying rising prices for top-tier diamond jewelry.
Charles Wyndham, founder of PolishedPrices, a leading index of wholesale diamond prices, said on Friday prices of larger, rare, near-flawless gemstones had shot up by roughly 200 percent over the past 18 months.
The surge has been driven by increased interest from a growing number of multi-millionaires in emerging markets, a shortage of rough diamonds, and the dollars slide, he said.
Diamond jewelry prices have risen in tune with wholesale diamond prices, but fine jewelers like Graff and Cartier say demand is holding up well for top-tier diamond jewelry in upscale retail outlets on Bond Street in London and in New York.
"Sales are doing well -- Cartier is a high-end business and, therefore, better protected," Frederic de Narp, president and CEO, Cartier North America, told Reuters in June. He gave no figures. Cartier is a subsidiary of Swiss luxury goods maker Richemont.
High-end jewelers in London and New York are reporting increased traffic from foreign visitors, especially from commodity-rich countries in the Middle East, South America and eastern Europe.
The wholesale price of internally flawless 3-carat round polished diamonds has jumped to $100,000 per carat as of June 1, from $55,000 last December, according to PolishedPrices.com.
The worlds rarest polished gemstones have experienced staggering price rises in recent months. Wyndham estimated 13-carat perfect diamonds now to be worth in excess of $200,000 per carat wholesale, an all-time peak.
"If you have a perfect stone, you will get unbelievable prices," Wyndham said.
The main PolishedPrices index, which incorporates a range of diamond categories, stood at 136.3 points this week, 6 percent above the level this time last year.
"There are signs that the high prices being paid for fine qualities are beginning to trickle down into the commercial categories, with commercial one carat diamonds also setting an all-time high," PolishedPrices said in its latest market report.
Both the fine and commercial indices are now showing double digit growth since the start of the year.
The rapid upward momentum in diamond prices cannot carry on at the present rate.
"It is impossible for this rate of increase to be maintained," said Wyndham, who has been in the diamond industry for over 30 years.
He was a director of the CSO, De Beers selling arm, before setting up his own diamond businesses in 1995.
While high net-worth individuals want to possess the most exquisite gemstones, the picture is far less buoyant for low-tier gem-quality diamonds, Wyndham said.
The sharp slowdown of the U.S. economy, the worlds leading market for diamond jewelry, has hit demand for low-end diamonds and bolstered inventories.
"As long as youre talking about good quality diamonds, the scene has been pretty positive. However, commercial, lower end (gem-quality) diamonds have had a very rough time," he said.
(Reporting by David Brough; editing by David Evans)
By David Brough, Reuters
7 July 2008
DTC says prices of some goods to rise at fifth sight of 2008
[AFNS] LONDON, UK 2 July 2008 - The Diamond Trading Company (DTC) has confirmed that prices of specific goods will be raised at its next sight, scheduled to start on July 7.
The DTC declined to comment on how much it would raise prices and which goods would be affected.
Last month, the DTC reported that prices at the first four sights this year had risen by an average of 8.5 percent. No price changes were indicated at the fifth sight in June.
The DTC reports cumulative price changes three to four times a year at strategic times.
The DTC will announce the cumulative price changes for the year before the Hong Kong show to take place September 15-21.
A service of the Antwerp Facets News Service (AFNS)
15 January 2008
Blue Hope Diamond glows red in ultraviolet light
AFNS] WASHINGTON D.C., USA 15 January 2008 – The famous 45.52 carat blue stone known as the Hope Diamond glows red when viewed under ultraviolet light, Jeffrey Port, curator of the National Gem Collection at the Smithsonian Institution’s National Museum of Natural History in Washington, D.C, said.
Port and other scientists studied the stone and other examples of very rare natural blue diamonds loaned by diamond dealers and reported on their finds in the journal Geology.
Port said the red color the Hope Diamond displays under ultraviolet light comes from trace amounts of the element boron, which makes the stone appear blue in normal light. The unique mix of boron and nitrogen now known to exist in the Hope Diamond could help researchers determine whether the Hope Diamond was cut from a much larger rough stone from India that also yielded part of the pre-Revolutionary French crown jewels, he said.
A service of the Antwerp Facets News Service (AFNS).
15 January 2008
Tiffany sponsoring Fair Trade Diamond feasibility study
TransFair USA has received a $100,000 grant from the Tiffany & Co. Foundation to explore the feasibility of a "Fair Trade Certification" for diamonds. The company will do research to see if "fair trade" can provide a mechanism to help the most disempowered and disenfranchised people in the diamond supply chain through a transparent and equitable system.
A service of the Antwerp Facets News Service (AFNS).
15 January 2008
Major diamond find reported in northern Canada
Some 862 rough diamonds have been found at a property in Nunavut in Canadas Far North owned by Vancouver, British Columbia-based Diamonds North Resources Ltd
A service of the Antwerp Facets News Service (AFNS).
15 January 2008
De Beers to start paying out $295 million settlement of U.S. lawsuit
Individual consumers and members of the diamond trade are eligible to claim part of a proposed $295 million settlement of a series of class action lawsuits against De Beers in the United States, according to the "Diamonds Claims Administrator." The payout is subject to final court approval on April 14.
A service of the Antwerp Facets News Service (AFNS).
15 January 2008
Strong demand and shortages to boost diamond prices this year
[AFNS] JOHANNESBURG, SOUTH AFRICA 15-01-2008 – Prices of rough diamonds, particularly high-quality stones, will rise further this year as demand surpasses supply, said World Federation of Diamond Bourses President Ernie Blom.
Rough prices will increase due to shortages, increased demand from countries such as China and India, he said.
Blom pointed out that De Beers had already increased prices by 3.5 percent across all its goods at the first sight of the year, which could set a precedent for other diamond suppliers. In addition, the surge in the number of junior diamond miners that listed on stock exchanges last year, or planned to float in the first part of this year, indicated that there was a strong market for the stones.
Blom noted that the shortage of diamonds would not affect all goods, stressing that there was an oversupply in the lower-value range.
Blom’s comments were supported by South African diamond industry analyst James Allan, who predicted "modest" price increases in 2008, of around 5 percent across all types of goods.
Allan believes U.S. demand for polished diamonds will fall this year, as economic indicators regarding growth and the job market decline. To a certain extent, however, the falling American demand would be offset by rising demand from India, China and the Middle East.
"They are not close to the U.S. at the moment, but, in a couple of years time, they will be major consumers of diamonds," he told Mining Weekly Online.
A service of the Antwerp Facets News Service (AFNS)
19 December 2007
Demand will continue to outstrip supply on world markets
Demand will outrun supply in the world diamond market over the next few years, analyst James Allan of the South African firm Allan Hochreiter said. While supply is growing 1 percent a year, demand is growing 4 to 5 percent, meaning that every year $650 million worth of demand is being added to the $13 billion rough diamond market, he said. That annual growth in demand is about half the size of total South African production, he noted. Since 2002, diamond prices have gone up 35–40 percent, he added. This makes investment in diamonds and diamond companies a good idea, he said.
A service of the Antwerp Facets News Service (AFNS)
19 December 2007
Celebrity engagement and personal jewelry stars diamonds
LOS ANGELES, USA 19 December 2007 – The popularity of diamonds remains undiminished among celebrities who received engagement, wedding or other personal jewelry in 2007, one list reveals.
Actress Brittany Murphy got two platinum Neil Lane engagement rings from new husband Simon Monjack. One contained a 5 carat yellow diamond center stones surrounded by a circle of smaller white stones, and the other features a 6.5 carat cushion cut diamond set on a diamond-encrusted band. Model-actress Elizabeth Hurley received an engagement ring with a 15.09 carat Asscher cut diamond in the center. The white gold band, which was set with smaller pave diamonds, came from Chopard’s “Haute Joallerie” collection at Chopard; the same jeweler made Hurley’s white gold wedding band, which is set with 20 square-cut 3.91 carat diamonds.
Victoria’s Secret model Selita Ebanks received a Jacob & Co. engagement ring set with a 15 carat cushion cut diamond from Nick Cannon, although she stopped wearing it in October. Ivana Trump received a platinum engagement ring from Rossano Rubicondi. The ring’s center stone is a 12 carat emerald-cut diamond. It was designed by Ivana’s daughter Ivanka Trump, whose name is associated with Diamond Trading Company sightholder Dynamic Diamonds.
Actor Charlie Sheen gave his fiancé Brooke Mueller a platinum engagement band set with an 11 carat, radiant cut fancy yellow diamond. Comic actor Eddie Murphy gave his fiancé Tracey Edmonds an 8 carat fancy yellow diamond engagement ring from Cartier in July. Actress Kate Walsh received a Neil Lane engagement ring set with a Jubilee-cut diamond in May. Actress Jennifer Love Hewitt received a heirloom engagement ring set with a large center diamond surrounded by 10 smaller white diamonds from fiancé Ross McCall.
Australian singer Delta Goodrem received a diamond solitaire ring from Brian McFadden, and actress Heidi Montag received a platinum engagement ring with a lemon amethyst center stone surrounded by small diamonds from actor Spencer Pratt, who co-stars with her on “The Hills.”
A service of the Antwerp Facets News Service (AFNS)
15 December 2007
Diamonds are forever a reliable investment
IF you think the idea of investing in diamonds is a bit cliched, think again.
The sparkling stones still attract bigger investment interest than arguably any other collectable.
Since they are sold primarily by weight and quality with internationally accepted grading, the value of diamonds is consistent, no matter where they are traded.
In the context of blue-chip investments, diamonds let buyers scale their purchases to suit the moment, with reasonable certainty prices will remain steady whatever the turn of world events.
In times of economic depression, war or political unrest, diamonds are portable, compact and an excellent hedge, while other forms of investment may prove very complicated.
Easier to move around than a collection of vintage cars or a dozen old master paintings, there are central diamond markets in every major city capable of buying and selling for relatively fixed margins at the standard international price.
Diamonds are mined in a handful of centres across four continents.
Tightly controlled by international networks of dealers arranged as "bourses", rough stones mainly travel to London for sorting and classification.
While the simple grading covers 20 or so qualities, there are more than 5000 detailed categories into which each particular stone may fit.
After sorting, rough stones are directed to cutting centres in Antwerp where nearly 85 per cent of the total rough diamond trade takes place. After this, stones move on to diamond manufacturing centres in Israel, Belgium, India and New York. Similar centres operate in South Africa, Botswana, Russia, China, Sri Lanka, Thailand, Vietnam, and Mauritius.
The very best diamonds - in size and quality - may never be set in jewellery, but simply traded as loose stones, while the majority of stones cut into small sizes end up as ear and engagement rings, brooches and necklaces.
A significant drawcard for collectors, most of whom are (surprisingly) established male businesspeople, is the broad value range of diamonds.
The bigger the stone and better the quality, the higher the price, but even modestly sized diamonds of fine quality command steep prices.
Serious investors only look for stones of high clarity with few inclusions, or those with interesting antique histories.
All the rest, and there are a great many, are sold to jewellers and private collectors less attuned to international trade values.
Beyond this very large market for second-rate diamonds, theres an even larger market for imitations such as Fabulite and Cubic Zirconia.
Fabulite is the marketing name for an extraordinary man-made gem with the rather unappealing name of strontium titanate.
Fabulite has a colour dispersion value about 10 times as high as diamond and produces a fiery sparkle superior to most similarly scaled diamonds.
It became popular in the 1950s and is still available today.
More expensive than other recently invented imitation stones, Fabulite tends to reflect more colour than real diamonds but the distinction is so subtle that most amateur buyers will be easily fooled.
Und