February 2005 Archives
Platinum Surges.
A weaker yen this morning has triggered a rally by platinum during Asian trade, taking the metal to $882 after starting the day at $870. Yesterday the metal traded $865-72. Despite this mornings gains the less favourable fundamentals are likely to mean this is a blip with the metal quickly working back into the recent $825-75 range seen since August.
Gold Price.
Ask Price: $421.35
Holding steady.
On Line Diamond and Jewelry Sales Lead Holiday Growth
Modern Jeweler reports that this Holiday Season was better for the clicks (e-tailers) than the bricks (jewelry stores). Consumers bought a staggering $1.9 Billion in jewelry on line this year, a 113 percent increase over the 2003 holiday season, according to a survey by Nielsen/NetRatings, Goldman Sachs, and Harris Interactive. According to the survey, on line sales in general were up 25 percent to $23.2 billion.
The holiday selling season was a roller coster ride for most traditional retailers: initial euphoria, then panic, followed by relief, as a strong final week brought most sales totals to a slight gain over last year. Growth estimates ranged from 2 to 4 percent by most forecasters. Good, but not great.
Timex and Versace form Alliance
Timex Group has acquired Versace S.A., a subsidiary of Gianni Versace, with operations in Lugano, Switzerland. The division is the current watch, jewelry and writing instrument licensee of Gianni Versace. The division will be renamed as a result of the aquisition. There are no plans to relocate the company or reduce its existing workforce. Timex will continue to manufacture and distribute watches, jewelry, and writing instruments bearing the Versace trademark.
Luxury Brand Name Recognition and Major Cash Cow; a Marriage or Merger?
Women Want Platinum Part 1
Saw a great research piece by Modern Jeweler; here are some excerpts.
Extensive consumer research, both by Platinum Guild International and by other organizations, shows that most women prefer Platinum for their engagement ring. "When we have done focus groups, Platinum spontaneously comes up as the metal most desired," says Huw Daniel, president of Platinum Guild International USA. "When we hired Hall & Partners to do some quantitative research, we were blown away by how passionately women felt about Platinum."
The Hall & Partners study asked women in the 18-34 age group with relatively modest household incomes of $30,000 and above who were shopping for engagement rings which metal they prefer. A staggering 71 percent of women said they are committed to buying platinum. An even more surprising 78 percent said that platinum was worth paying more for. And 89 percent agreed that platinum the highest quality precious metal. "Most women said that platinum was the only metal or the metal they would consider above all others for their engagement ring," Daniel says. "But it wasn't just on a pedestal as the best. When we asked them to think of Platinum as a person, most agreed that that they really liked it and had something in common with it, much more than other metals. This means that they connect emotionally with platinum, it's approachable and within reach."
Women Want Platinum Part 2
Studies Conducted in jewelry stores across the country show that using the three platinum attributes of "Pure. Rare. Eternal" in the sales presentation helps consumers forge an emotional bond with platinum.
Pure
Platinum is 90 to 95 percent pure which means that you are getting more of what you are paying for - pure platinum. You'll be giving something pure, natural, and authentic as a token of your love. Platinum's natural sheen maximizes the brilliance of your center diamond better than any other metal. Platinum is a pure naturally white metal (unlike "white gold" which is actually yellow gold that is rhodium plated and will fade over time) which means its color will not change over time. Platinum is ideal for sensitive skin because it is naturally hypoallergenic.
Rare
Platinum is 30 times more rare than gold which means that your ring will be more special and unique. This makes it a much more valuable symbol of your love. A gift of platinum is out of the ordinary and a reflection of your unique love.
Eternal
Platinum provides a very secure setting for diamonds which means better protection for your investment. It's one of the densest metals which means you can feel the difference. It doesn't just look great, it feels great. Platinum loses very little metal to everyday wear so the ring you give her will still be the same on your 50th anniversary. It's a perfect symbol of the endurance of your love.
One of My Watch Favorites!
Truly one of my favorite dress watch picks from the worlds first manufacturer of automatic wristwatches; the revolutionary hand setting mechanism of the HARWOOD is unique and is still manufactured using the original construction methods employed in 1922. A crown which is normally used to wind a wristwatch is noticeably missing. The winding of the watch as well as setting the hands, is achieved by turning the fluted bezel. A colored visual indicator at the 6 o’clock position informs you whether the watch is operational or is in the adjusting mode.
.39mm. 18kt. Gold Louisiana Croco Strap
As homage to John Harwood on the the 80th anniversary of his patent of this legendary classic, The following patented milestone is printed on the dial of the new HARWOOD:
HARWOOD WATCH CO.
THE WORLD’S FIRST MANUFACTURER
OF AUTOMATIC WRISTWATCHES
PATENT NO. 106583 - 1924
Just Saw the New "88 Cut Diamond"
I got a call recently from the manufcaturers of a new branded diamond they are calling the "88 Cut" located here in N.Y.C.. They were interested in testing their diamonds on our in house BrillianceScope machine (to see how they performed for brillinace, fire, and scintillation) and were referred to us by the people at Gemex.
One of their sales people came up to our offices (an extremely nice fellow) with a couple of sample diamonds to test on our machine and I got a chance to eye-ball them. They are one of a new breed of modified round diamonds and feature 8 sides and eighty eight facets (versus the 58 of the traditional round diamond.). A Similar new company selling a branded diamond of 81 facets is the Eighternity Diamond.View image
This diamond companies premise is that more facets equal more brilliance. On the BrillianceScope machine the stones didn't do all that bad; averaging a few highs...but falling far short of achieving the excellent scores of the round Super-Ideals.
The diamond itself I believe is in beta and the company is probably going to now focus on cutting the stones to achieve better results on the Bscope machine (and as a direct cause and effect, better visual results to the human eye.)
The marketing material and website looks very neat, and the people behind the brand seem very nice, I just hope that their new cut doesn't go the way of so many new branded diamond shapes before it; much noise and pomp at the begining only to vanish and be replaced by a newer more daring cut/shape within a short period of time.
Historically, this has been the case with many of the funky and "faddy" (is that a word?) diamond shapes. They come and go and have limited staying power, unlike the timeless and traditional diamond shapes that never dissapear.
Your Diamond "Uncle" in the Business; Trust But Verify.
I saw a great posting by my Dad (Barry)
this morning in response to a consumer question on the Diamond Review forum regarding the quality of the diamond he is contemplating.
Here is the Link.
We get these kind of questions all the time from consumers who are about to spend a fortune on a diamond from a jeweler whom they trust but have absolutely no information on the stone.
It absolutely boggles the mind that with all of the technology available today to quantify and qualify brilliant diamonds from the swindled, (commercial quality) crappy diamonds out there that look like frozen spit; that people are still willing to plunk down a fortune of money without doing the slightest bit of research.
Would these same people buy a house from someone they trust without doing a complete and thorough home inspection first?? Of course not!
The bottom line is that in todays market place with all of the diamond information available to you (the consumer) to help empower you to make an excellent purchase, it is utterly irresponsible of you not to do your homework properly.
Remember, buying a diamond is not the same as buying a loaf of bread. Securing your dream diamond is a once in a lifetime purchase, (we hope) for a significant dollar value, at a highly emotional and momentous point in your lives. Don't screw it up by paying for less than you are getting. Educate yourself properly and you will thank yourself for it each and every time you stare down at her beautiful and sparkly diamond ring!
Diamond Star: Anna Christy, Metropolitan Opera Star
Judah and I were privleged to have the beautiful and talented Opera Star,Anna Christy and her fiancee ( scientist and physician) recently visit with us in our Diamond showroom.
We wish her every success.
Anna Christy
Anna and her Mom with Placido Domingo
Gold Demand Increasing
The Bullion Desk this morning reports that world gold consumption grew for the first year in four in 2004 as economic growth in India, the US and China spurred demand and as investors sought to hedge against a declining dollar. Consumption grew as much as 8 percent to 2,725 tons from 2,524 tons in 2003 after three years of decline.
A Diamond For Valentine's Day In New York City
A heartsick Millionaire has a generous Valentines Day gift prepared for New Yorkers in honor of his late wife. Read about it here.
Newspaper Raises Claims of Doggie-Doo Diamonds!
The Weekly World News, a publication known for its imaginative reporting, recently claimed that a diamond company is making diamonds from "dog poop".
As there are now companies that are indeed making diamonds from human remains, it is gemologically possible says Gary Roskin of the JCK that a company could produce diamonds from doggie doo. Still, given this particular papers track record and the fact that the company they mention; Caninegems could not be located I would seriously find this very hard to believe!
Watch of the Year!!
Chopard's LUC 4R Quattro Regulateur was named "2004 Watch of the year" by judges from the European watch magazines Montres Passion and Uhrenwelt.
Here is the link.
TAG - Heuer Taps Maria Sharapova
TAG - Heuer recently pulled off a major coup by tapping 17 year old Tennis Pro and male magnet, Maria Sharapova to be its new female ambassador.
Sharapova puts her signature on the contract.
Sharapova's multiyear contract includes public relations, marketing, input for new product development, and advertising.
Check out this link and this link for more info.
Gold Fix
London Gold Fix steady at $421.60. Support at $420.00.
AGS Diamond Lab To Unveil New Cut Grade For Princess Cuts.
AGS (American Gem Society) one of the diamond top grading labs in the world plans to introduce their new Cut Grading System for Princess Cut Diamonds by June 2005. There are no clear Cut grade systems for fancy shapes as there are for round brilliants (AGS, and the new upcoming Cut Grade system coming from the GIA in June 2005).
We have just received our Trade CD from AGS which details the diamond facet combinations that will result in their top Princess Cut grades. At this time I can say that tradespeople and consumers will be surprised at the facet combinations that will achieve the top grades. They are significantly different from current thinking and will have an impact on manufacturing and pricing.
More to come.
Smugglers Haul Gold and Fake Viagra!!
South Korean Press reports this morning that S. Korean Prosecutors indicted six people on charges of smuggling fake Viagra and gold bars.
Prosecutors say a man identified as Lim, 67, and five accomplices purchased 160,000 counterfeit tablets of impotence cures Viagra and Cialis and 40 kg of gold bars worth W650 million (US$640,000) in Hong Kong on Jan 11. The gang smuggled the drugs and gold bars from Tianjin, China to Incheon concealed in the restroom of a ferry.
The smugglers then hid the goods in garbage bags and brought them into Korea in a delivery van. The smugglers bought the fake Viagra at W18,000 per bottle in China and sold them for W50,000 to W100,000 in Korea. Prosecutors said the fake pills constitute the single largest haul in history.
Fake Viagra is similar to the genuine product but can cause more severe side effects like blurred vision and dizziness.
"Not tonight, Honey, I've got a headache," now takes on a new meaning.
Appraisal Standards From J-Bar
Every few days I get the question “What are the standards for an appraiser/appraisal? There are many opinions to that question; but here is one Committee that has given their standards. The jeweler’s board of appraisers review, a division of JVC the Jewelers Vigilance Committee gives standards for appraisals.
Here is the link.
Gold Down Today
Bloomberg today reports that Gold prices in New York fell to the lowest in more than three months as a gain in the value of the dollar eroded the appeal of the metal as a hedge against U.S. stocks and bonds.
Gold, sold in dollars, has dropped 4.8 percent this year on concern that rising interest rates will boost demand for the U.S. currency. The metal also fell after U.K. Chancellor of the Exchequer Gordon Brown said he hopes the Group of Seven will agree in the next few weeks to have the International Monetary Fund's gold reserves revalued.
Gold futures for April delivery fell $5.80, to $417.20 an ounce at 10 a.m. on the Comex division of the New York Mercantile Exchange. Prices fell earlier to $416.20, the lowest for a most-active contract since Oct. 19.
The dollar rose today on expectations a government report tomorrow will show the U.S. economy created the most jobs in three months in January. Economists expect the economy will have added 200,000 workers.
"Diamond Brands" Discussed at Conference
Beth Braverman of the National Jeweler reports on the topic of diamond branding recently discussed at the NJ seminar.
Read our Blog on Diamond Branding for our completely different perspective on this issue.
Valentine's Day is February 12
Diamond and Precious Metals News: Week In Review. 2/4/05
Rapaport Trade Newsletter reports this morning that U.S. retail jewelry demand is steady with much stronger demand for
better quality merchandise. Jewelers expecting strong sales this upcoming week leading up to Valentine's day on Saturday February 12th.
The Fancy Diamond shape market is improving with scarcity of two carat and
larger, good shape, well cut, medium to better quality, I+, SI1+. Princess cuts very hot, especially in SI qualities.
Cushions very strong across the board in 2ct.+. Heart Shapes surprisingly are making a very strong comeback. This shape has been dead for the past several years. Pear Shapes and Ovals selling very well.
There are shortages of larger, 2 ct.+ fine cut D-G, VS2-SI1's diamonds in all shapes, especially round brilliants.
Oversizes, e.g.; 1.25-1.49 carat, 1.60 to 1.99 carat in colors D-H and Clarities of VVS to SI-2 in fine Makes are in very high demand but limited supply and bringing significant price premiums. Shortages in these categories are expected to continue over the next several months.
Gold took a hit on Thursday 2/3/05, closing at $416.00 as speculation that IMF gold sales to fund third world debt clearance could come sooner rather than later, combined with Wednesday’s interest rate increase by the Fed. Long positions got spooked and triggered a sell-off to a 3-month lows for gold.
Platinum came along for the down ride losing $7 and closing Thursday 2/3/04 at $863.00. It has rebounded this morning to $868.00.
Platinum Jewelry in high demand.
Blue Nile Diamonds Expands to Canada
National Jeweler has this report on the expansion of blue nile diamonds to the Canadian market.
GIA Education Updates
GIA lists new night classes and other new class openings for interested students. You will notice them at the bottom of the page in this link.
Gold Steady, Platinum Up.
Gold is holding steady this morning at $416.00. Platinum is up four dollars to $870.00.
G-7 nations meeting this week and indications are that the dollar may be dissociated from Gold Pricing.
TechnoMarine's New Diamond Watch
Just in From Rapaport
Watch brand TechnoMarine has released its TechnoDiamond Chrono Ceramique watch collection.
The collection is characterized by bright color ceramic straps and cases made from a new high-tech process used in advanced science and space technology. The new ceramic is a mixture of two metal powders heated to extreme temperatures, at which time color pigments are added. The blend is molded under tremendous pressure that results in a material virtually scratchproof, abrasion resistant and hypoallergenic. The watch bezel is set with 125 full-cut diamonds for a total carat weight of 0.96 carats.
Gold: Using It In Imaginative Ways.
Reuters News service reports this morning that Gold producers aim to boost industrial demand for the precious metal by more than 50 percent within a decade through developing new uses in gas masks, air-cleaning devices and as a superconductor in electrical gadgets.
Currently the bulk of gold is used for jewelery, accounting for 80 percent of the 4,142 tons consumed in 2003, with industrial applications such as electronics and dental fillings taking up only 12 percent or 500 tons.
New uses for gold discovered by South African research group Autek are expected to lead to an extra demand of 280 tons in 10 years, Thompson said.
The first new commercial product developed by Autek, formed by South Africa's AngloGold Ashanti in 2000, is a catalyst to be used in gas masks.
Gold can be used as a catalyst at room temperatures, unlike other substances such as platinum, widely used in auto catalysts to clean pollution in exhaust fumes.
Currently gas masks use carbon, but a canister with a gold catalyst to filter out carbon monoxide would be lighter and smaller.
Autek, which has 52 researchers and collaborates with 19 universities, started discussions with catalyst manufacturers about the gas mask product late last year.
The product is expected on the market in the first half of 2007.
The new product is expected initially to need around 10 tons of gold per year, but there is good potential to develop other catalytic devices using gold for cleaning air in homes and public areas such as restaurants.
Total use of gold in catalysts is expected to boost gold consumption by 200 tons within 10 years.
SUPERCONDUCTORS
The other main new industrial use for gold would be in as a layer in high-temperature superconductors for use in electricity transmission and electrical devices.
Autek is also busy working on a host of other applications for gold, including biomedical uses as an anti-cancer treatment.
One research project in cooperation with the universities of Liverpool in the UK and Parma in Italy is developing medical uses based on nanotechnology. A nanometre is one millionth of a millimetre.
Applications would include a highly sensitive biosensor, to do multiple tests on a single droplet of blood.
Autek also gets funding from South Africa's two other main gold producers, Gold Fields and Harmony Gold.
Ramifications of these Industrial uses for Gold is for Gold Jewelry Prices to go significantly higher over the next few years.
On-Line Sales Increasing.
Smith Barney predicts annual online sales growth of 15 to 20 percent for the next few years and 10 to 15 percent over the next 5 to 10 years.
Diamonds On The Moon? You Bet!!
Reuters News Service reports this morning that several planets in our galaxy could harbor an unexpected treasure: a thick layer of diamonds hiding under the surface.
Princeton University astronomer Marc Kuchner said in a telephone news conference that though no diamond planet exists in our solar system, some planets orbiting other stars in the Milky Way might have enough carbon to produce a diamond layer.
Carbon planets might form more like some meteorites than like Earth, which is believed to have condensed from a disk of gas orbiting the sun.
Dwindling supplies of high quality diamond rough here on Earth may now be looked at by the light of the Moon.
Appraisal Standards from Chubb
AS you might know standards for appraising jewelry can be different from one insurance company to the next. In The state of NY you need a license to cut hair but not to appraise a $500,000.00 diamond necklace. No offence to any hair stylists! Here is another set appraiser standards from a company you might know. Here is the link.
Online Jewelry Sales Soar!
Just in From Rap.:
Online Jewelry sales were up a dramatic 113 percent to $1.9 billion, the largest increase of any retail category in the 2004 holiday selling season.
Online retailer amazon.com included jewelry and watches on its "best of 2004 list" - the top-selling, most positively reviewed, most wished for and the most favorite gifts as determined by its customers in 2004.
Why are online jewelry sales so strong? Experts say that the sharp rise in broadband usage is behind soaring jewelry sales. Broadband internet allows retailers to post "richer" diamond and jewelry pictures that really let you "see" what you are buying. The fact that many diamond wholesalers, vendors, and retailers, are now forced to showcase their diamonds and jewelry to internet savvy consumers with real data and information, has also helped boost consumer confidence in online jewelers.
Swarovski Shines at Fashion Week!
If you are like me and you love the timeless beauty and elegance of the Swarovski Crystals and Jewelry; you're sure to get more than you bargained for during the 2005 Fall Fashion Week!
Many prominent designers will be using the Swarovski crystals in their gowns and garments.
Excellence in Platinum; Meet Leon Mege!
The third in our series on master Jewelers; this gentleman is someone you absolutely must check out. www.theartofplatinum.com
Leon Mege; owner, founder, and jeweler extraodinairre is not only a great guy who I have had the privilege of meeting personally in his workshop, he is also a master of his craft and an artiste.
Leon Mege is located in the heart of the N.Y.C. Diamond District, right around the corner from us. We have had the honor of working with him on a few occassions when a customer purchased our SuperbCert Diamonds and had them set in a custom engagement ring by Leon Mege.
His factory sits high atop the street in a magnificently appointed penthouse suite that exudes old world charm. It is here that all of the magic is made. The jewelery pieces that come out of this artists shop are absolutely breathtaking. I promise you that you will see things on Leon's website that will make you gasp for air!
Some of Leons fabulous eye candy!!
He is a perfectionist in his work and works closely with his customers to create one of a kind jewelry pieces, including reproduction rings, engagement rings, earrings, mens bands, anniversary rings and anything else you could think of in platinum, gold (of all shades) and many different precious metal combinations.
Every fashion jewelry item that he creates is unique and you will never have to worry that your co-worker will be wearing anything close to the likeness, quality craftsmanship, and substance of Leon's designer custom jewelry!
DeBeers Will Raise Diamond Rough Prices in 2005, Set Record Sales in 2004.
Reuters and South Africa's Mining Weekly report this morning that DeBeer's is poised to further increase diamond rough prices in 2005 after significantly increasing prices by approximately 15-20% in 2004 and setting record sales for the year.
The world's biggest diamond producer, De Beers, is expected to have raised sales by 4.7%, to $5.76-billion, in 2004 thanks to higher prices and growing demand, these analysts said.
This was the average forecast of five analysts surveyed by Reuters, whose estimates ranged from $5.74-billion to $5.8-billion, compared to last year's $5.5-billion.
De Beers, 45%-owned by diversified mining group Anglo American, announces its 2004 results tomorrow.
"I think (the year) will definitely be better than consensus; we have already seen how well other luxury goods groups have done," said a fund manager.
Last week, Italian jeweller Bulgari said it met its 2004 sales forecast thanks to a 10.5% jump in the Christmas quarter.
De Beers said last month it expected global demand for diamonds to have grown at least 5% to 6% in 2004 and will focus on driving jewellery sales higher again this year.
"In 2002, we saw a 2% increase in consumer demand worldwide, in 2003 a 4% increase, and in 2004 we are hopeful of seeing a figure of 5% or 6%, or even higher," said Gareth Penny, managing director of De Beers' Diamond Trading Company (DTC).
DTC, De Beers marketing arm, said last August it had raised rough diamond prices by an average of five percent after recording a 7% rise in sales during the first six months of the year.
The August hike followed price increases of 3% and 5% in January and March, respectively.
"The fact that they could hike prices this much, a lot higher than global inflation, is a sign of good times for them," the fund manager said.
The firm, which controls nearly half of world diamond supply, said consumer confidence had increased and economic conditions were positive suggesting continued strong consumer demand in the second half of the year.
"They have managed to put through some increases during 2004 and I think they will be able to do more in the new year," a London-based analyst said.
The firm is also expected to address the impact of the buoyant rand on its Southern African operations, which employ more than 10 000 miners.
De Beers mining projects and explorations projects in Canada will see spending of nearly C$2.5-billion over the next five years.
What this means for you, The Consumer is: Fasten your Seatbelt, higher prices for beautiful Bling-Bling and a lighter wallet are coming to you later this year!
Stuart Weizman Diamond Shoes Correction
I got a call yesterday from Jane Weizman of Stuart Weizman designer shoes. She was pretty upset about a recent blog entry of mine where I indicated that Actress Halle Berry would be wearing $ 1 million dollar diamond encrusted shoes by Stuart Weizman at this years Acedemy Awards in Los Angeles. The information was taken from Rapaport news as well as from ">Contactmusic.com
This information has been erroneously reported on the internet. Stuart Weizman will not be showing $ 1 million dollar shoes at this years Acedemy Awards in Los Angeles.
I also note that Rapaport this morning has made a similar correction regarding this misinformation.
Coffee is Ki$$ing Me!
How many of you guys go throught the same routine every morning; your'e on the way into the office and you grab a cup of coffee at the local Starbucks.
Well, this morning I actually did the math and it dawned on me that I'm shelling out an absolute fortune of money for my pricey Starbucks drinks!
Over Priced
Starbucks ought to have a picture of me in their window as the featured customer of the month at the rate I'm going.
My Picture in the window!
I gotta cut down on these coffees quick!
Diamond News: Week In Review. 2/11/05
U.S. trading markets steady with strong sales in diamonds and jewelry for Valentine's Day. Pearl Jewelry hot with pendants and necklaces leading the way.
Gold holding steady at $418.30 after dipping earlier in the week and testing support levels at $411.00. Platinum holding steady at $871.00
DeBeer's reported record sales for 2004 and indicated that there will be further prices increases for diamond rough later in 2005. This will translate into higher prices for polished diamonds with continued scarcities in larger carat sizes and higher color/clarity combinations. Manufacturers expect that I-J-K color and SI-1 to SI-2 clarities in better makes will thus become more attractive purchase candidates by consumers.
Antwerp Diamond Industry Increasing Security.
Antwerp's Diamond Community and the Belgian Government are joining forces to significantly increase security in their Diamond District amid increasing threats and fears of terrorist activities.
Belgium's Prime Minister, Guy Verhofstadt, along with other key officials have signed a Declaration of Intent at HRD headquarters in Antwerp, Belgium, to boost security measures. The urgency for tight security at Antwerp's diamond quarter follows specific threats made against the diamond trade and the real potential of terrorism.
Local crime is high and needs to be addressed. In 2003, a robbery took place in the vaults of the Antwerp Diamond Center, and robbers made off with $127 million of merchandise.
According to Hubert Appelen, head of HRD's Diamond Office an
Logistics Department, which also is responsible for the diamond quarter's security system. "The 2003 robbery only underlined the urgent need for a new, more effective security program for the Antwerp Diamond Community".
New security measures which include restricted access from the neighboring shopping malls and state of the art security cameras will be implemented.
U.S. Lawmakers Oppose Sale of IMF Gold Stocks.
Reauters this morning reports that a dozen U.S. lawmakers have told U.S. Treasury Secretary John Snow to oppose proposals for the sale of some of the International Monetary Fund's gold stockpile to pay for debt relief for the world's poor nations.
These 12 senators from U.S. mining states said sales of the IMF's 103 million ounces of gold reserves, the world's third-largest, would hurt gold producers and cause job losses, including in impoverished countries like Peru and Tanzania.
The U.S. Treasury is likely to march in lockstep with the senators' arguments.
"We do not believe it is necessary to sell IMF gold to achieve debt relief for the poorest countries. We will review the IMF report on proposals to fund debt relief when it is released," Treasury spokesman Rob Nichols said.
The letter is signed by senators from the U.S. gold-rich states of Nevada, Colorado, Montana, South Dakota, Idaho, Utah, Alaska, New Mexico, California and Washington.
"We believe that careful consideration must be given to any proposal that could have such adverse effects on this important commodity market, and the businesses and communities in the U.S. and around the world that are affected by it," the senators wrote in the Jan. 31 letter.
The U.S. executive board member to the IMF is barred from voting to sell IMF gold reserves unless the U.S. Congress has approved the move first.
Finance chiefs of the rich Group of Seven nations asked IMF Managing Director Rodrigo Rato last weekend in London to report back by April on proposals for using IMF gold reserves to write off debts of the fund's poorest borrowers.
In the letter, which preceded the G7 London meeting, the senators noted it was the second time in five years that "serious proposals have surfaced that would effectively raid a core reserve asset of the IMF."
The lawmakers said the threat of gold sales in 1999 pushed gold prices to 20-year lows, caused unemployment, while several mines had to close in western U.S. mining states.
The senators said they did not oppose debt relief and urged the U.S. Treasury and IMF to develop "more viable and less disruptive alternatives to IMF gold reserve sales."
"We doubt that IMF gold sales -- which were soundly rejected as a policy matter just five years ago -- will make any more sense today," they added.
Gold traders in anticipation of an IMF move to sell Gold reserves, sold Gold earlier this week to the point where Gold tested it's support level at $411.00. With the liklihood that Gold reserves will not be sold by the IMF in response to the Senators' letter, the metal has strongly rebounded in the last two days to it's current $418.00.
On-Line Jewelers Profits Soar!
Online retailer Amazon.com said its December 2004 jewelry sales
increased more than 120 percent from December 2003.
In a press release dated February 8, Amazon.com said triple-digit
growth of jewelry sales continues into 2005, as customers buy rings,
necklaces, earrings, bracelets, watches, and body jewelry from its
website. Amazon.com offers more than 1,000 ruby jewelry items ranging
in price from $100 to more than $1,500, including a wide selection of
heart-shaped rubies.
Internet jewelry retailer Blue Nile Inc., also came in with tremendous increases. They reported fourth quarter 2004 sales of $64.5 million, an increase of 30.3 percent from fourth quarter of 2003. Net income was $4.6 million, down 78 percent from the fourth quarter of 2003 at which time Blue Nile had applied a $15.7 million tax benefit to offset future earnings. Income before taxes
during the fourth quarter increased 38.3 percent to $7.1 million.
Net sales for the year ending January 2, 2005, were $169.2 million, up
31.3 percent from 2003, and income before taxes was $15.6 million.
DeBeers To Stay In London
De Beers has no plans to move its marketing arm, the Diamond Trading
Company (DTC,) from London to South Africa.
South Africa's mining minister Phumzile Mlambo-Ngcuka told the press
on February 7, that she contacted DTC about relocating offices from
London to Johannesburg to promote industry growth. Gareth Penny,
managing director of the DTC, said such a move was not feasible.
De Beers' managing director Gary Ralfe said, on February 9 that De
Beers was a global business with a global business model. He added
that De Beers was "very sensitive to the needs of the company's
government partners in southern Africa."
Siteholders can continue to maintain that stiff upper lip.
Cheers!
Platinum 585 Disclosures: JVC and FTC Consider Guidelines.
The US-Federal Trade Commission (FTC) stated that jewelry products
using 585 Plat.O PGM, is neither prohibited nor allowed, and warned
the proposed product description is insufficient disclosure. In a
letter to the Jewelers Vigilance Committee (JVC,) the FTC said
additional information must be included when selling the product to
distinguish this metal from other platinum products.
FTC's response follows a request made by the JVC on behalf of
platinum jewelry designers, manufacturers, and retailers to include
an industry-wide comment along with the staff opinion letter regarding
lower purity platinum and trademarks.
Present guides state that in order for a product to be marked or
described as "platinum," the product must contain a minimum of 500 ppt
pure platinum and the mark or description must disclose the amount in
ppt of the platinum group metals in the product. The FTC will publish
a Federal Register Notice soliciting comment from the industry to
gauge whether or not the guides should be amended.
585 Platinum can be easily detected because it is noticeably lighter than 900 and 950 Platinum. Platinum products must be stamped and be clearly visible.
Blogs Are All The Rage!!
I was extremely happy to see this recent article.
Blogs that offer pertinent and up to date information for any industry as well as personal blogs, are making a huge impact in cyberspace!!
The key is to keep the info. fresh, interesting, and on target.
I hope you all have a great weekend!!
Tiffany To Open In Brisbane, Australia.
Tiffany & Co., will open a store in Brisbane, Australia, in 2005. The company announced its plans on February 11, in a statement showing the location would be on the ground floor of the new Queens Plaza shopping mall in Brisbane.
The store will offer an array of Tiffany collections, including the engagement diamonds and jewels in platinum and 18-karat gold settings; the Atlas jewelry collection inspired by the Atlas clock that is also available in Tiffany’s Fifth Avenue, New York City, flagship store; watches, including the Tiffany Mark; the signature designs of Elsa Peretti, Paloma Picasso, and Jean Schlumberger; sterling silver jewelry accessories, and crystal gifts.
Tiffany also has stores located on Castlereagh Street in Sydney, and on Collins Street in Melbourne.
Wal-Mart and Diamonds Coming To New York?
Retail giant, Wal-Mart Inc., is hoping to open a store within city limits of New York, about as far from downtown as the map would allow, in Rego Park, Queens.
"We are interested in the New York metro market, but nothing is yet signed," a Wal-Mart spokesman said.
On February 10, news agencies in New York reported that Developer Vornado Realty Trust filed a land-use application with the city for a shopping site to include a 132,000-square foot Wal-Mart store in Rego Park. The news reports created a stir with groups opposed to a Wal-Mart store in Queens.
Wal-Mart currently sells diamonds and jewelry in all of it's stores as well as on it's e-commerce website and it's potential entry into the New York market may have a significant negative impact on 47th Street retail dealers.
New York City council member for Rego Park, Helen Sears, said that no deal has been signed. Her constituency "has mixed feelings, but what is important for them is that Wal-Mart must review employee relationships."
Interesting Diamond News From The Middle East.
Precious stones and diamonds topped the country of Lebanon's exports in 2004. The country exported $287 million worth of jewelry in 2004, which represented 16 percent of its total exports of $930 million.
Lebanon’s News Services reported on February 10, that Italy remains Lebanon's main trading partner, accounting for 10 percent of total exports. France, Germany, and China followed Italy on the list of high-value trading partners
Gold, Platinum Up!
With the Chinese New Year celebrations, over, Chinese and Hong Kong Gold traders are back in the market in full force.
Gold is up this morning over $7 to $423.00 and Platinum is up $5 to $877.00.
Prince Charles Gives Camilla a Magnificent Diamond Ring!
Folks, tis' with a sour taste that I bring you this news since I am no big fan of flower talking Prince Charles, View image or his scary looking bride to be Camilla Parker Bowles. View image
However, news is news and this piece of info. is already causing quite a stir across the world.
It is reported that Prince Charles gave Camilla an incredibly gorgeous diamond and platinum heirloom engagement ring to celebrate their upcoming marriage.
Read more about the history of this dazzling and unique diamond engagement ring here.
Insurance "Key Terms"
In the world of appraisals the word "insurance" is usually not far away. This websites list of "Key Terms" may be helpful for those who are about to get, or are considering getting home owners or renters insurance. Remember that each insurance company is different and may have different "Key Terms" however this list should be helpful. Here is the link!
Colored Gemstones Increasingly Popular!
Rapaport reports today that colored gemstones are very hot right now in jewelry items and that 85 percent of females reported that they plan on purchasing colored gemstones within the next six months!!
Way to go!
China Looks To Push Ahead With Palladium
Because of the recent increases in price for precious platinum (Plat= $850 vs. Palladium = $183 as of 2.15.05), China will look to switch much of its manufacturing to Palladium (one of the family of precious metals) as a cheaper alternative.
Read about it here.
Activists Protest Against Precious Gold On Valentines Day
If you did some last minute jewelry shopping in the New York City Diamond District this past weekend, you would have met some very loud protesters (literally right outside our diamond headquarters) who oppose some of the gold mining practices.
The "No Dirty Gold" campaign, launched by nongovernmental organizations Oxfam and Earthworks a year ago this week, claims that U.S. Valentine's Day sales of gold jewelry leave 34 million metric tons of waste worldwide. Campaign organizers claim Valentine's Day is the number one day for gold jewelry sales in the United States.
Protesters stood in front of jewelry stores throughout the United States, handing out cards with the message "Don't tarnish your love with dirty gold." One protester, dubbed "Ms. Godzilla" stood on New York's Fifth Avenue shopping district wearing a skull mask.
"Gold loses its luster when it is produced at the expense of healthy communities, clean water and human rights," Payal Sampat, international campaign director of environmental group Earthworks, said in a statement.
Denver Jewelers Ready For All-Star Hoops Weekend.
Jewelers in Denver, Colorado, plan their own show during the 2005 NBA All-Star Game scheduled for February 20. Hyde Park jewelers in the Cherry Creek Shopping Center will debut the Tourbillon timepiece diamond watch for $190,000 in rose gold -- $245,000 for platinum.
Oster Jewelers on Steele Street has hooped-up its inventory for the weekend as well with an Audemars Piguet trunk show. Oster will feature an oval ring with yellow, blue, and pink diamonds, and a selection of white and yellow diamonds commanding prices tags in the hundreds-of-thousands of dollars.
Consumers Comfortable Buying Diamonds On-line.
VeriSign Inc., an Internet transaction network, reports that Valentine's Day sales hit $3.9 billion for the first 14 days in February 2005. Company data reflect a 30 percent increase from the same two weeks in 2004.
The strongest growth came from diamond sales at 130 percent ahead of sales in 2004, and the diamond category held the highest average per-ticket-item at $427.
Trevor Healy, vice president of VeriSign said, "With diamonds showing the highest increase in online revenue during the Valentine's Day shopping season, we not only see that consumers are comfortable making big-ticket purchases online, but also buying sentimental and significant items through secured e-commerce sites."
Your Assurance of a Secure and Safe Internet Purchase.
VeriSign processes 37 percent of e-commerce transactions for North America and is used by 127,000 online retailers
Awesome Article on "Ideal Cut" Princess Diamonds!
SuperbCert Signature Princess Diamond
Now that the AGS (American Gemological Society) is poised to come out with their cut grade for princess shape diamonds in mid 2005,the question of whether there exists an "Ideal cut" Princess diamond and how to define it has really begun to heat up!
The questions is: Can you assess a princess diamonds beauty by relying on a set of "numbers" or specifications?
My Dad just published an excellent and most informative article on the subject as a third in a series on Princess Cut Diamonds.
This article is a must read and will really help consumers with information in what to look for in Princess Cuts.
Elizabeth Taylor to Launch Jewelry Line With Mirabelle!
Elizabeth Taylor
The ageless and beautiful screen legend; Elizabeth Taylor has ventured into the jewelry market through a deal with Mirabelle Luxury Concepts.
Elizabeth Taylor is more associated with diamonds and jewelry than any other woman in the world. Her outstanding collection of jewelry was immortalized in her New York Times best selling book, "My Love Affair with Jewelry". This book is a fabulous display of unbelievable glamour, assembled over a lifetime, by one of the most extraordinary women in the world.
The House of Taylor Jewelry collection will appear at the upcoming JCK Las Vegas Show, as well as the JA New York Summer Show. The Elizabeth Taylor collection will feature an assortment of traditional fine jewelry, as well as one-of-a-kind couture pieces priced in excess of $1 million.
The House of Taylor has already proven successful in converting Taylor's appeal into sales of fragrances, cosmetics, gaming and publishing.
Read the full report here.
Play Ball!
Spring is in the air and "The Boys Of Summer" are back!
Do you remember hearing Ernie Bank's call out:
"We've got sunshine, fresh grass, so let's play TWO!"
Tremendous Demand Forcing GIA Diamond Grading Labs To Expand At Rapid Pace
A Diamond Grader In Action
The Gemological Institute of America (GIA) is expanding both its East and West coast laboratories to meet increased international and stateside demand for diamond grading reports and other laboratory services.
Following a year of planning, construction has begun at the both GIA's headquarters in New York and its laboratory in Carlsbad, Calif. Demands on lab services have shown steady growth, according to a GIA press release, and through aggressive hiring, the institute has boosted the number of personnel handling grading, gemological identification, research, and support to nearly 700 people.
Since 2001, the total number of items processed by the institute's laboratory has increased by more than 20 percent each year, according to GIA Laboratory CEO Thomas C. Yonelunas. In 2004, demand for all GIA labs' diamond grading services rose by 22 percent, GIA Diamond Dossier services demand grew by 49 percent, the need for fancy colored diamond services rose by 28.5 percent, and demand for diamond inscription services rose 35 percent.
"The number of reports generated annually is astounding, and we are constantly searching for ways to better serve our clients," Yonelunas said in GIA's release. He added that the institute has restructured its procedures to ensure greater efficiency, while also investing in staff growth, facilities expansion and infrastructure development to keep pace with rising demand.
When construction is complete, GIA's New York location will have added 11,500 square feet, for a total of 32,500 square feet. Lab space in Carlsbad will more than double, to a total of 85,500 square feet. The multiple-phase remodeling efforts on both coasts are scheduled for completion the end of 2005. In New York, this includes remodeling the education center and adding space to expand the grading laboratory. Renovations of the grading laboratory, research, identification services, and other laboratory-support functions in both locations are also scheduled.
Good news for those of use submitting diamonds for grading as we can expect faster turn-around-time.
Newsweek, Wipe That Egg Off Your Face!
Newsweek magazine's international edition has agreed to post a letter correcting errors in a story on synthetic diamonds both online and in its Feb. 28 print edition, says the letter's author, Jerry Ehrenwald, CEO of the International Gemological Institute, New York City. The magazine incorrectly reported that DiamondView, one of De Beers' two synthetic detection devices, was unable to identify as fake three CVD synthetic diamonds produced by Apollo Diamond, Boston, MA.
In fact, the machine did identify the synthetics, says Ehrenwald, whose lab Newsweek reporter Michael Hastings was visiting when he witnessed DiamondView in action. "DiamondView is a luminescence-imaging instrument, which gives the information required in order to make a definitive identification regarding whether a stone is natural or synthetic," says Ehrenwald. "The stones Newsweek brought to the IGI lab exhibited a strong and characteristic fluorescence reaction during DiamondView testing, which IGI gemologists unequivocally stated 'proved the stones were synthetic.'
"The sensational nature of the article misled readers. In reality, gemologists working at labs and in retail outlets, with both the appropriate detection equipment and level of knowledge, can detect these stones," says Ehrenwald.
In April 2004, De Beers announced it would begin selling its two synthetic detection devices to members of the trade through an agreement with the Gemological Institute of America. In November 2004, the Diamond High Council said at its annual conference in Antwerp that it too would begin selling a battery operated device that can detect synthetics, beginning in April 2005.
De Beers; The Monster of The Diamond Industry
Love em' or (in most cases...) hate em', there is no denying that De Beers is the biggest name in the diamond industry and is solely responsible for the majority of the worlds diamond mining and output.
In the past couple of years De Beers has been at the forefront of a concerted marketing effort for diamonds and jewelry. They are responsible for the creation of the 3 stone diamond ring concept which has become known as the De Beers diamond ring. They are also responsible for the marketing of the "Diamond Right Hand Ring".
It is almost impossible today to travel in any city or read any magazine without stumbling across a De Beers diamond and jewelry ad that looks something like this:
De Beers isn't just about diamond manufacturing anymore; but has pushed the envelope for the "branding" and marketing of diamonds and jewelry products as a means of survival and continuity in the diamond industry. Their "Supplier of Choice Program" is a reflection of this philosophy.
Much of the diamond marketing is done over their website at www.adiamondisforever.com.
More recently De Beers has announced that they will be opening a chain of diamond and jewelry stores, bringing diamonds and jewelry directly to the end consumer.
Diamond & Precious Metals, Week In Review: 2/18/04
U.S. Valentine's Day sales steady with very strong sales for
high-end and internet retailers. Trading markets are
strong, with scarcity of 2-4ct, I+, SI2+ firming prices, fancy shapes
strong especially in 1-2ct, G-J, SI goods. U.S. 2004 total retail
jewelry sales up 5% to $28.3 billion. U.S. 2004 polished diamond imports are up 14% to $14 billion, rough up 7% to $753 million.
Gold and Platinum prices holding steady and firm at $427.00 and 867.00
respectively.
Diamond Star: Audrey Hepburn
A 44-year-old movie character with a soft spot for a well-known jewelry store has been voted cinema's most stylish character of all time, reports Yahoo News.
Holly Golightly, played by Audrey Hepburn in the film Breakfast at Tiffany's, topped the list of best-dressed movie characters in a poll of 4,000 people, conducted by the BBC's What to Wear magazine.
"Breakfast At Tiffany's"
Based Truman Capote's novel, the classic, romantic 1961 movie helped bring attention to the Tiffany & Co. building on Fifth Avenue, thanks in part to the character's admiration for the luxury jeweler's stylish atmosphere.
Second place went to Uma Thurman's Mia Wallace in Pulp Fiction and Cameron Diaz's Natalie Cook in Charlie's Angels.
Diamonds Big Sellers At Christie's Auction on 2/17/05.
Trade Reports this morning announced that Christie's had sales at its Important Jewels auction in New York on February 17 totaling $4.3 million, with 88% of lots sold and 90% of expected auction value. Sales at Christie’s St. Moritz auction held February 16 totaled $12.6 million with 76% of lots sold and 67% of expected value.
Rahul Kadakia, jewelry head for Christie’s Americas, commented that strong sales at both auctions “kicked off what promises to be a great season for the jewelry market.”
Tradespeople and individuals contested for colorless, colored diamonds and stones as well as jewelry pieces.
The top lot was an Asscher-cut fancy brown, VVSI diamonds of 66.43 carats, which was sold to a private US buyer for $419,200. The second top lot was a pear-shaped diamond line necklace of 80.60 carats which sold $307,200. Both surpassed pre-sales estimates.
Despite disappointment at the St. Moritz show that a 63.52 carat diamond was not sold, Eric Valdieu, jewelry head for Christie’s Switzerland, said prices obtained and the levels of activity in the first sale of the year are “a good omen for the jewelry auction market.”
The top lot was a three-stone circular-cut diamonds necklace with a total carat weight of 77.88, which sold to the US trade for $725,470. The second was a cushion-shaped diamond ring of 17.23 carats/H/VS1, which sold to the Swiss trade for $476,581 or $27,660 per carat.
A very good start to the 2005 Diamonds, Gems, and Jewelry Auction Season.
Gold and Platinum Surge!
Gold is up to $431.45 and Platinum to $875.00.
Hispanic Jewelry Market Key Group For Retailers.
U.S. Hispanic consumers are willing to spend large amounts of money on jewelry, according to a recent online poll by the Jewelry Consumer Opinion Council (JCOC). That could mean big business for retailers, considering there are 39 million Hispanic consumers in the United States, a number that continues to grow.
The study finds that 75 percent of respondents already own fine jewelry, and more than half of them will spend more than $500 on fine jewelry purchases in the next few months.
Hispanic consumers represent the fastest growing group in the country, and their jewelry buying habits indicate that their love for fine jewelry will mean significant growth this year and in the future, according to the Jewelry Council.
The study finds that Hispanic consumers have a high interest in religious jewelry, but that they also desire diamonds and fashion jewelry.
Bangkok Jewelry Show Opens.
The Bangkok Gems and Jewelry Fair opened Monday, with commerce officials trumpeting statistics that show Thailand's 2004 gems and jewelry exports exceeding $2.6 billion, an increase of 5.26 percent over 2003.
Due to strong demand for diamond jewelry in particular, exports to the United States—by far Thailand's biggest market—totaled $718.4 million in 2004, a 16.11 percent increase over the previous year.
These growth figures are very impressive given the Dec. 26 tsunami, SARS and the avian flu, which have plagued this part of the world this year.
The fair, which expanded this year to six days from five days last year, brought about 3,000 exhibitors to the Impact Exhibition and Convention Center in Bangkok, and was expected to draw 30,000 attendees.
The Origins of the Hope Diamond Finally Confirmed
The Hope Diamond
National Jeweler-- Researchers have traced the origin of the Hope Diamond to a 115-carat stone found in India in 1668, and suspicions that the stone had been cut from one of the crown jewels of France, the French Blue Diamond, have been confirmed.
New computer analysis research shows that that stone was sold to King Louis XIV of France who had it cut into the 69-carat French Blue, reports the Associated Press (AP). The stone was then stolen from the country's collection of crown jewels during the French Revolution.
Twenty years later, after the statute of limitations expired, a large blue diamond was quietly put up for sale in London, and eventually Henry Philip Hope purchased it. Eventually the Hope Diamond, which at 45.52 carats is world's largest blue diamond, was donated to the Smithsonian by jeweler Harry Winston.
In tracing the origins of the Hope Diamond, researchers relied on work completed around 1700 by French scientists, who studied several stones from the royal collection to determine their specific gravity and other details. Their analysis of the other stones that still exist was accurate, leading researchers to believe the data on the French Blue was also reliable, according to the (AP). While the French Blue no longer exists, Smithsonian gem curator Jeffrey Post said sketches of it from France were quite detailed, enabling a computer model to be made of the stone
The team of researchers led by Post and Steven Attaway, engineer and gem cutter; as well as gem cutters Scott Sucher and Nancy Attaway, deduced that the Hope Diamond would have fit inside the larger French Blue Diamond, matching its orientation, with the cut indicating that some of the facets on the Hope Diamond still remain from its parent stone.
"This new Hope Diamond research would not have been possible 10 years ago," Post told the AP. "What is exciting is that we are constantly learning new information about our collections as we apply new high-tech research methods. Even the Hope Diamond is grudgingly giving up some of its secrets."
Click here for more info. on the Hope Diamond!
High Quality Timepieces at Outstanding Prices!
One of the best kept secrets in the luxury watch industry are the incredibly beautiful, quality timepieces manufactured by Oscar Waldan of Waldan International Watches.
I myself recently stumbled across a write up on Mr. Waldan in one of the watch magazines and subsequently looked him up. He is located right here in N.Y.C. and is very close to our offices and showrooms in the heart of the N.Y.C. Diamond District!
Let me tell you; this guy is the real deal. He is one of the last of a dying breed of "watch purists/manufacturers" who have not sold out to the big luxury groups, but are keeping their manufacture completely in house. His knowledge and expertise in the art of fine watchmaking is tremendous. His hand made watches are exquisite and boast of certified chronometere (Swiss) movements of the highest caliber, 18kt. precious gold and platinum cases of exceptional beauty, sapphire crystal, etc. etc.
Waldan Watch - Swiss Certified Chronometere in Solid Gold
You would also be astounded by the excellent prices for his watches which I personally found to be the absolute best for watches of this caliber.
If you're like me and you love fine watches; you must check this guy out!
Macho Men Wear Diamonds?
During year 2004, men purchased jewelry for themselves, representing 11 percent of the total ($57.4 billion) jewelry market. But the potential to sell men diamonds is, according to Unity Marketing, a marketing goal worth exploring.
"Targeting the male jewelry market for self-purchasing men and gift-giving women is a new opportunity for growth,” said Pamela Danziger, president of Unity Marketing.
As business culture swings back into line with more formal attire, the demand for power jewelry is increasing, and men's gemstone choice is diamonds.
“The time is right to position jewelry as a gift for women to give men,” Danziger said.
“Positioning jewelry as a gift for men is a wide-open marketing opportunity," especially for men who are interested in fashion and grooming. "Jewelry is an innovative gift idea which offers significant potential for marketers and retailers,” Danziger concluded from her company's consumer insights study.
Pamela, I think that's a great idea, and Ladies, you can hit me with them bling-blings!
Madagascar Loosens Gemstone Restrictions.
The government of Madagascar, which had placed tight restrictions on the export of its much-coveted gemstones, plans to open the island up to foreign traders, a mineral resources official told the International Colored Gemstone Association (ICA) Congress.
Right now only exporters that are registered as Malagasy companies have the right to export gemstones, a restriction that the government estimates has helped lead to millions of dollars worth of gemstones being smuggled out of the country.
Under new regulatory reform signed Feb. 18 by the Ministry of Energy and Mines, Madgascar will allow both local and foreign traders to buy rough and polished stones in privately operated gemstone markets, within which the government will provide support for security and the physical infrastructure of the markets.
The policy change delighted gem dealers, who have been griping that prices on gemstones from Madagascar have doubled and tripled since it was first discovered as a hot spot for pink and blue sapphire five years ago. Opening the market to foreign traders should help stabilize prices, and bring more colored gemstones into a supply-hungry market.
"The full potential of the island hasn't been touched," ICA President Joseph Menzie said. "It's developing fast as a production center for the gemtrade. It's going to become a much bigger center in terms of production in the future."
Gold Surging!
Reuters reports this morning that Consumer demand for gold jumped seven percent in 2004 -- the first rise in four years -- with sharp price rises failing to deter buyers, the industry-backed World Gold Council (WGC) said on Thursday. Analysts polled by Reuters in January expect the price to extend gains in 2005.
On a regional basis consumer demand, including jewellery and retail investment, rose 17 percent in 2004 in India -- the world's largest gold market.
Demand in major consumer China was up 13 percent in 2004, with better designs and higher gold prices helping to brighten the metal's allure.
Diamond "Bow-Tie": Food? Apparel? What is It?
The diamond term "bow-tie" refers to a dark spot in the shape of a bow-tie that lies in the center of fancy shaped diamonds such as the Marquise, Oval, and Pear. This bow-tie runs horizontally, East to West across the center of the stone.
Bow-tie running across the center of the diamond (indicated by Red Arrows)
Depending on the size, angle, and placement of the diamond facets, this bow-tie can be slight and barely visible or very pronounced and detrimental to the visual appearance of the diamond. It is a subjective call. Some bow-tie effect is good in that it provides necessary contrast and gives the diamond a sharper look.
It is possible to totally eliminate this bow-tie effect by altering the number, angle, size, and placement of the Crown and Pavillion facets.
Marquise without Bow-tie. Arrows indicate the facets that play a critical role in eliminating the bow-tie effect.
The Marquise shape diamond is a regal and impressive presence with evenly distributed dispersion and scintillation when cut correctly.
If this is your diamond of preference I recommend that you examine stones with and without this bow-tie effect and determine which you prefer.
Also keep in mind that in addition to the bow-tie effect, you need to also take into consideration a pleasing shape that is determined by the Length to Width Ratio and symmetrical proportioning between the top and bottom of the stone.
Diamond and Precious Metals Week In Review: 2/25/05
This week saw a major breakthrough and advance for Gold as it surged past the $432.00 resistance level to $437.00 before settling back to $432.00 in late trading yesterday. The week dollar, strong Euro, and rising oil prices to $51.00 a barrel and very strong consumer demand were all contributing factors. Platinum also very strong at $870 with continued strong consumer demand.
In the Diamond sector, trading markets remain very strong with prices firm in larger better cut quality stones in the 2ct+, H+, SI2+ categories. There is also very strong demand for 1-2ct, H-J, SI-1 and SI- 2 goods in better Cut grades.
Good News! Canada To Abolish Jewelry Excise Tax by 2009.
Canada has decided to spur economic growth by announcing that it's 2005 budget will account for reducing the jewelry excise tax from 10 percent to 8 percent effective immediately. The rate will be reduced by another 2 percent each March 1 beginning in 2006 until the tax is eliminated on March 1, 2009.
Jewelers in Canada have lobbied for years to abolish the tax, which has been in effect in some form since 1918. In 1996 the House of Commons Standing Committee on Finance concluded that the jewelry excise tax “unfairly discriminates against the jewelry industry, [it] is an anachronistic vestige of the early 1900s when it was introduced, and should be abolished.”
The proposed rate reductions and their effective dates:
Effective Date
February 24, 2005
March 1, 2006
March 1, 2007
March 1, 2008
March 1, 2009
Proposed Rate
8%
6%
4%
2%
0%
The Canadian Jewelers Association (CJA) stated that the tax “is the only remaining luxury tax in Canada. All other luxury taxes have been repealed.” Jewelry is the most heavily taxed consumer sector in Canada (apart from alcohol, tobacco, and gasoline.) “There is no credible policy reason for singling out the jewelry industry in this way,” CJA said.
This move by the Canadian Government will make the importation of USA diamonds and jewelry even more attractive to Canadian consumers and should result in a stronger presence of the GIA certified diamonds.
Actor, Pilot John Travolta Teams With Breitling For 2005
Marking the first time that Luxury Watch Mfgr. Breitling will team with a celebrity in its advertising; they have chosen A-list Actor (and appropriately..Pilot) John Travolta to appear in their global advertising campaign for 2005.
Read the full article here.
Actor John Travolta
Breitling Watch
