November 2005 Archives
Consumers Fear ID Theft for Online Shopping.
According to a report issued by Consumer Reports WebWatch, a
quarter of Internet users have stopped making online purchases for fear of identity theft.
The report, issued last week, finds that 80 percent of Internet users are at least somewhat concerned that someone might steal their identity from the personal information available on the Web. Most Internet users, 86 percent, have made at least one change in their behavior because of fears of identity theft.
Of those who shop online, 29 percent say they have cut back on how often they buy products on the Internet. Thirty percent of users reveal that they have reduced their overall use of the Internet due to these fears, and 53 percent say they have stopped giving out personal information online, according to the report. More than half (54 percent) of those who shop online say they have become more likely to read a site's privacy policy or user agreement before making a purchase.
We advise consumers to check the Affiliations of the e-commerce site for their Privacy Guarantees. A license and seal of approval by an organization such as Trust-e is a postive indication that the website is protecting the privacy and confidentiality of your submitted information.
Same goes for the website's shopping cart: Make sure that it is SSL encrypted and that it has a Seal of Approval from a known and reliable
Credit Card processing Company such as Verisign.
Diamond Engagement Rings: Eye Candy IV.
3 Stone Platinum Truffle Ring by Vatche. Diamonds are Superbcert.
Custom Tiffany Replica Platinum Channel Set Diamond Engagement Ring by Exceldiamonds. Center Diamond is a 1.63 H Color/ VS-2 Clarity Superbcert. Channel set diamonds are .35 TCTWT F-G Color / VS Clarity.
Diamond Online Holiday Sales: It's Crystal Ball Time.
Doug Schwegman, Market Research Director for Cybersource, a leading Credit Card Processor for Online Merchants is the first e-commerce analyst to open his crystal ball and prognosticate on whither Holiday on-line sales are going.
Last year the U.S. Dept. of Commerce reported that online sales by U.S. retailers grew 23.9% in the fourth quarter. So what is the growth outlook for 2005 holiday sales? As of mid October, only a few forecasts of online retail sales for the upcoming holiday season have been published (see table below). Those estimates range from 22% to 26%.
So far in 2005, online retail sales have turned in a solid performance according to U.S. Dept. of Commerce data. Year-over-year Q1 growth was 23.3% and that accelerated to 26% in Q2. Third quarter data will not be available until November 22nd but merchant performance indicates that third quarter growth will be similar to that of the second quarter. In Q3 merchants processing over one year achieved a 42% year-on-year growth in credit card transactions, exceeding the 38% growth they reported the quarter before. So it appears, according to Schwegman that we are entering the holiday selling period with good online sales momentum. Further, higher gasoline prices may actually provide additonal incentive for shoppers to use online vs. in-store channels.
Coming down the homestretch in these last two months of the year, trying to estimate the peak shopping day is harder this year than in past years. This is because the biggest shopping day has historically been the Monday that falls at least seven days prior to Dec. 25th. By that formula, in 2005, the peak shopping day will be Dec. 12th. But there's a complication this year. Monday the 19th is almost seven days prior to Christmas day, so it may be possible that the 19th will be the peak day if enough online merchants and shipping providers decide to guarantee December 24th delivery for orders placed on the 19th. In any event, it seems reasonable to expect that the peak online selling period this year will be Dec. 12th - 19th.
Over the past two years the average on-line merchant has seen order levels about 40% higher in the peak selling period compared to the first week of October. Diamond and jewelry merchants see much higher seasonality. The upsurge in orders typically starts the week following Thanksgiving, but 2004 saw an earlier uptick starting in mid-October as some merchants started holiday promotions earlier than normal.
Stay tuned.
Jewelry At Top of Holiday Gift Giving, Study Finds.
National Jeweler this morning reports that one in 10 consumers will buy jewelry as a gift this holiday season, according to a new consumer survey.
The study, "Shopping in America: Holiday 2005," finds that the average consumer will spend $655 on holiday gifts, with 11 percent purchasing jewelry.
Indicating that the jewelry trend has real legs, layered necklaces came in as the second-most popular gift for women among all types of holiday gifts, with 15 percent of shoppers naming them as the best gift for women this season.
Conducted by August Partners for real estate investment trust The Macerich Company, the survey finds that digital music players, Barbie items, fashion and entertainment gifts will represent the best-selling gifts in 2005.
Holiday budgets are projected to swell 7.8 percent this year, with many shoppers looking for clothing (21 percent), toys (12 percent), electronics (12 percent), books/CDs (11 percent) and mall gift cards (10 percent).
The survey finds that the top gifts for men will be sports tickets (22 percent), while the top gifts for women will be CD and DVD box sets (17 percent), though females shoppers gave equal weight to both the box sets and layered necklaces, with 16 percent choosing them as the top item on their wish
Gemex Introduces Brilliancescope "Live Report" to Showcase Diamonds On-line.
One of the concerns that on-line diamond shoppers express is their inability to "see" the diamonds listed on these diamond websites.
Well, a solution is here: Gemex Systems,(www.gemex.com) manufacturers of the Brilliancescope, a light imaging spectrophotometer, have just introduced an exciting new feature called "Live Report". This report is an animation of the diamond's light performance and allows you to "see" the diamond "live".
You have the ability to zoom in and out to get clearer looks at the diamond and you can also specifically focus on different aspects of the diamond's light performance by looking at white light, color light, or scintillation separately.
We believe this is a great addition for on-line shoppers and will help consumers to "see" the diamond.
Here is a graphic: Colored arrows indicate different features.
Below is a link to one of our SuperbCert Super-Ideal Cut Diamonds that features this animated light performance analysis.
http://www.exceldiamonds.com/diamond/1882.html
Click on the Brilliancescope link and watch the animation load.
Have fun!
Diamonds Love Politicians: Or Is It the Other Way Around?
The Gemological Institute of America (GIA), the worlds foremost Research and Diamond Grading Laboratory announced yesterday that Former U.S. Secretary of State Madeleine Albright is scheduled to be the lead keynote speaker at their 4th International Gemological Symposium, slated for Aug. 27-29, 2006, at San Diego's Manchester Grand Hyatt Hotel.
Madeline Albright
When appointed to the post in 1997, Secretary Albright became the first female secretary of state in U.S. history. At the time, she was the highest-ranking woman in the history of the U.S. government. Preceding her appointment, she served as the U.S. permanent representative to the United Nations, and was a member of the President's Cabinet.
"In keeping with our symposium theme of 'Navigating the Challenges Ahead,' Secretary Albright's significant experience in U.S. international strategy and policy perfectly position her to address the important business and geopolitical issues facing the world today. We are delighted and appreciative that Madeleine Albright will be our lead keynote speaker for symposium," said William E. Boyajian, GIA president, in a statement.
Albright founded The Albright Group LLC, a global strategy firm she currently heads. She is also chairman of the National Democratic Institute for International Affairs, co-chair of the Pew Global Attitudes Project and president of the Truman Scholarship Foundation. Additionally, she serves on the board of directors of the Council on Foreign Relations and on the board of trustees for the Aspen Institute.
Albright is a jewelry enthusiast, and is currently at work on a book about her eclectic collection of fine and costume brooches, scheduled for publication in 2008. The illustrated book will discuss the historical and personal significance of her collection, as well as her use of brooches as a tool of diplomacy. Her autobiography, Madam Secretary: A Memoir, was a New York Times bestseller. Albright's upcoming book, The Mighty and the Almighty: Reflections on America, God and World Affairs, will be published next May.
GIA's symposium is expected to bring together upwards of 1,500 participants from around the globe to gain firsthand knowledge from gem and jewelry experts representing every aspect of the international trade: diamonds, colored stones, pearls, gemology, jewelry design, manufacturing, marketing, branding and retail. The program will include presentations by industry leaders and business figures from both within the trade and outside of it, plus "war rooms," panel sessions and social events.
The symposium's opening session is co-sponsored by ABN AMRO Bank and the VNU Expositions Jewelry Group. For more details on the conference, visit: www.gia.edu
Hey, great gig, Madeline; if you need help, Imelda Marcos is available for consultations. Just make sure there's a Manolo Blahnik shoe store near the Convention Center!
Platinum Hits 25 Year High!
Platinum ended today at $960/oz!
Platinum prices have hit highs not seen for more than 25 years, driven by growing demand for the metal in jewelry and catalytic converers.
Prices have risen nearly 130% over the past four years and
world demand for platinum is currently outstripping supply.
It is a key component for catalytic converters in diesel engines, which are growing more popular as oil prices rise and pollution rules are toughened.
Russia and South Africa are the two main producers of platinum.
The dramatic price increases in Precious Metals over the past several months has garnered the attention of Pension Funds who are increasing their allocations in this area.
Demand for a similar precious metal, palladium, is also rising because it is being used as a cheaper alternative for jewelery, particularly in China.
Prices for palladium, which can also be used in catalytic converters, now stand at about $240 per troy ounce.
Diamond E-tailer BlueNile on Pace for Record Sales.
Internet diamond retailer Blue Nile Inc.'s third quarter of fiscal 2005 results were reported after the markets closed on November 8. Net sales were $42 million, a drop of $2 million from its second quarter, but 24 percent higher than one year earlier. Its third quarter net sales were also lower than its first quarter sales of $44 million.
Net income for the third quarter rose 49 percent to $2.5 million. Net cash provided by operating activities for the quarter ending October 2, 2005, stood at $6.6 million, compared with $3.3 million in the third quarter of 2004.
Gross profits were $9.2 million or 22 percent of net sales, both figures were less than Blue Nile reported during its second quarter of 2005.
Blue Nile excercised a share buy-back of 199,975 shares for about $6.5 million.
"Our third quarter financial performance reflects the strength of the Blue Nile consumer proposition," said Mark Vadon, CEO. "Our results demonstrate the appeal of the Blue Nile brand, the strength and potential of our business model, and our ability to execute with excellence for our customers."
Vadon said he was looking forward to "the upcoming holiday season in which we expect to achieve record sales levels, while continuing to provide our customers with an exceptional experience."
Blue Nile predicts full year sales, ending January 1, 2006, to hit between $205-$212 million, which would require fourth quarter sales of more than $75 million.
Palladium: The Precious Metal Nobody Knows:
Palladium may rise 21% in 2006 as Chinese jewelery demand gains and carmakers use more in catalytic converters to replace platinum, said Beijing Antaike Information Development Co, an adviser to the Chinese government.
Palladium may average $230 an ounce next year, from $190 in 2005, Jin Xiangyun, an analyst at Antaike, said in an interview from Beijing on Nov. 9. The metal has averaged $192.80 an ounce this year and traded at $239 at 6:55 am in London, the highest intraday price since June 2004.
Platinum is trading at four times the price of palladium, fueling speculation demand may soar for the cheaper metal for catalytic converters used to cut tailpipe emissions. Demand for jewellery containing palladium may rise 43% in 2005, fuelled by Chinese consumption, according to consultancy GFMS Ltd.
“The huge potential for Chinese use of palladium in jewelery will give a strong boost to market confidence and we’ll see more hedge fund interest in the metal” said Jin, who has followed the palladium market since 2001 and who correctly forecast the platinum price in 2004.
Antaike is a research affiliate of the China Nonferrous Metals Industry Association. It advises the Chinese government on industry policy. Russia’s OAO GMKN Norilsk Nickel is the world’s biggest producer of palladium, used by jewelers in so-called white gold. About 60% of the precious metal is used to make catalytic converters, while some is also contained in electronics.
Jewelery containing palladium was first sold in China in late 2003 and imports of the precious metal may exceed platinum for the first time this year, said Jin.
Palladium prices may more than double by 2008, she said. The metal reached a record $1,125 an ounce in January 2001, more than four times current levels, amid a shortage of supplies from Russia.
Antaike’s forecast for an increase in prices contrasts with expectations for a decline by Barclays Capital. The company, the securities unit of Barclays Plc, estimates palladium will average $180 in 2006, from $189 in 2005.
Citigroup this month raised its forecast for palladium in 2006 to $265 an ounce. Umicore SA, the world’s third-largest maker of catalytic converters, last year said it developed a way to replace as much as one-quarter of the platinum in the devices in diesel cars with palladium.
Incidenally, Platinum closed this week with a surge to $970.00 and analysts expect Platinum to hit $1000 soon.
Thai Government tightens the screws on Diamond & Jewelry Money Laundering.
Thailand's anti-money laundering office, Amlo, tightened its grip on gold and jewelry trade, requiring them to report any cash transaction of the valuable goods worth $24,310 (THB 1 million) or more. The threshold is about half the amount jewelers would comply with in the United States beginning January 1, 2006.
The new regulation will apply to more than 6,000 gold shops and thousands of jewelry shops nationwide, according to the Amlo secretary-general, Pol Maj-Gen Peeraphan Prempooti.
New rules go into effect in March 2006, and require all traders and businesses, except financial institutions, to report gold and jewelry cash transactions in excess of threshhold. A fine of up to $7,293 (THB 300,000) per transaction will be imposed upon any party failing to report transactions to Amlo.
All gold and jewelry shops, pawnshops and agents involved in the exchange of valuable objects must abide by the regulation under the money laundering act of 1999, according to Prempooti, as are in the high risk category of being exploited by money launderers.
Pol Maj-Gen Peeraphan added the regulation was in line with international practices determined by the United Nation's International Center for the Prevention of Crime. Any country ignoring the practice would be blacklisted and could face financial barriers such as blockades of international money transfers.
Jitti Tangsithpakdi, president of the Gold Traders' Association, said the new rule was unlikely to affect the domestic gold business very much, but it could deter those who seek a lucrative investment return. According to Tangsithpakdi, lower deposit rates and higher oil prices over the past two to three years have prompted a number of cash-rich investors to shift to lucrative gold, mostly by trading bullion. The country imports 100 tons of gold on average a year. The figure could go up to 110 tons if the economy is in good shape.
The Fin Center, a division of the U.S. Government's Homeland Security Office is putting into effect it's own anti-money laundering regulations starting at $50,000 beginning January 1, 2006. This is in direct response to 9/11 and designed to make it more difficult if not impossible for terrorists to fund their activities.
Update on E-Commerce Holiday Shopping.
E-commerce will represent the fastest-growing retail sector this holiday season, according to a new Retail Forward study.
The global management consulting and market research firm projects e-commerce sales will grow 27 percent in the fourth quarter, with holiday sales totaling $27.3 billion, according to Retail Forward's monthly ShopperScape consumer survey. Factors driving the sales growth include a robust job market, income gains and lower prices in key online categories like electronics and apparel.
But despite improvements in the online shopping experience in recent years, Retail Forward reports that two-thirds of online shoppers say they've had frustrating online shopping experiences in the past six months. According to Retail Forward's recent E-Retailing Shopper Update, the most frustrating online shopping experiences involve pop-up ads or forms, slow-loading pages and being forced to register in order to make a purchase.
The survey finds that only 11 percent of shoppers complain to the company when frustrated with a site, although they will complain to friends, family members or co-workers.
You've Got The Money: Which Luxury Watch Do You Want?
Jaeger-LeCoultre
Do you know what it is?
______________________________________________________
A recent survey of luxury consumers finds that Jaeger-LeCoultre is their top pick among high-end watches.
The Luxury Institute, a research group focusing on America's wealthiest 10 percent, polled more than 430 households with a minimum net worth of at least $750,000 (including home equity) and at least $200,000 in gross annual income, according to a release from the group.
Jaeger earned 78 out of a possible 100 points in the institute's Luxury Brand Status Index, which grades brands using four criteria: exclusivity, consistently superior quality, the ability to make consumers "feel special" and the extent to which a brand confers enhanced social status onto the consumer.
Jaeger-Lecoultre Sports Watch: Only $11,500
"Jaeger-LeCoultre's top rating is important because the brand competes in a very crowded category that has many, many highly rated brands," said Luxury Institute CEO Milton Pedraza in the group's statement. "Wealthy consumers who know the brand rated Jaeger-LeCoultre by far the most unique and exclusive brand. The brand also achieved the highest rating as a watch used by those people who are admired and respected by the wealthy."
Though many other luxury watch brands are better-known, according to the Luxury Institute, Jaeger outranked 27 other high-end watch brands respondents could choose from: Baume & Mercier, Bedat & Co., Bertolucci, Boucheron, Breguet, Breitling, Bulgari, Cartier, Chanel, Chopard, Christian Dior, Concord, Corum, David Yurman, Dunhill, Ebel, Girard-Perregaux, Gucci, Movado, Omega, Oris, Rado, Rolex, TAG Heuer, Tiffany, Tissot and Zenith.
Ladies and Gentlemen, The line forms to the right and have your money ready, please!
Diamond.com Reports 46% Loss for 3Q.
Online retailer Odimo Incorporated reported a decline in net sales for the three month period ending September 30, 2005, to $9.1 million compared with $10 million in 2004. Odimo’s net loss for the period increased to $3.5 million compared to $2.4 million in the third quarter of 2004. Headquartered in Florida, Odimo operates three websites -- diamond.com, asford.com and worldofwatches.com.
Odimo’s diamond sales for the third quarter decreased marginally to 33.7 percent of gross sales, as compared with 34.2 percent of gross sales in the previous corresponding quarter. Jewelry sales in the three month period increased to 15.9 percent of gross sales, compared with 12.9 percent of gross sales in 2004. Luxury goods sales decreased to 11.6 percent of gross sales, compared with 14.4 percent of gross sales, watch sales marginally increased to 38.8 percent of gross sales.
For the nine month period ending on September 30, net sales increased 8.5 percent to $33.4 million. Net loss in the nine month period decreased to $9.5 million, compared with 10.6 million in the first nine months of 2004.
Gross profit for the third quarter of fiscal 2005 was down to $2 million, (22.3 percent of net sales) compared with $2.8 million, (28.0 percent of net sales) in the previous corresponding quarter.
Odimo attributed the decline in gross profit margin to an increase in promotional activity aimed at increasing luxury good purchases.
Vacheron Constantin Voted #1 Watch.
Vacheron Constantin's "Turn of the Island," took the top prize at the fifth annual Grand Prix d'Horlogerie de Genéve 2005 held in Geneva on Nov. 10.
Vacheron Constantin Watch.
The Vacheron Constantin watch, which celebrates the brand's 250th anniversary, won the L'Aiguille d'Or and is considered the most complicated wristwatch ever produced in the world. An international jury comprising watchmaking experts, journalists, retailers and historians selected the winning watches.
TAG Heuer's "Diamond Fiction" watch tied with a watch by Van Cleef & Arpels called "Secrets" for the ladies' watch prize. Other winners at the Grand Prix include: Breguet's "Tradition Breguet 7027," jury prize; F.P. Journe Invenit and Fecit's "Sovereign Chronometre," favorite men's watch; Hublot's "Big Bang" white ceramic, favorite designer watch; Patek Philippe's "ref. 5959P," favorite watch with complication; DeWitt's "The Differential Swirl Academia," favorite watch with technical innovation, Jaeger-LeCoultre's "Master Compressor Extreme World Chronograph," favorite sports watch; Cartier's “Diagonal,” public's prize and Franck Muller's "7885 RMT QP," for Middle East Public's Prize.
DeBeers Arrives In Canada!
National Jeweler today reports that De Beers Canada Inc. announced it has reached an agreement with the Yellowknives Dene First Nation on the terms of an Impact Benefit Agreement (IBA) for the Snap Lake project, set to be the company's first operating Canadian-based diamond mine.
The mine is expected to employ 500 people during full production and to produce 1.5 million carats annually. Scheduled to open in the third quarter of 2007, the mine is projected to reach full production in 2008, according to a joint media release from De Beers Canada and Yellowknives Dene.
The IBA follows a community meeting where members of the Yellowknives Dene voted in favor of provisions in the proposed agreement, and made a resolution authorizing Chief Peter Liske and Chief Fred Sangris to execute the agreement. The IBA establishes the specific benefits that the Yellowknives Dene will receive as a result of the project, including: employment, business opportunities, training and development and financial compensation for loss of the use of the land while it is being mined.
"As the Snap Lake Project has advanced, and during the IBA negotiations, we have managed our business to ensure that the Yellowknives Dene experience tangible benefits from the Snap Lake Project," said John McConnell, vice president of NWT projects, in the statement. "Concluding this agreement builds on our success in this area and provides a more formal mechanism to define a positive, long-term relationship with the community."
"Our negotiation team has worked very hard over the past three years and we are now satisfied that we have reached a final agreement that will benefit the Yellowknives Dene First Nation through employment, training and business opportunities for the life of this mine at Snap Lake," Liske said in the release.
Sangris, chief of the Yellowknives Dene First Nation Ndilo, said the benefit agreement would still allow for the traditional way of life in the Drygeese Territory, even while providing opportunity.
"We know De Beers will respect the land, water, animals, environment and the spirit of intent in this agreement," he said.
De Beers Canada CEO Richard Molyneux said the company recognizes the importance of good relationships with Aboriginal communities.
"This IBA with the Yellowknives Dene reflects our commitment to ensure that the Aboriginal groups impacted by the Snap Lake Project benefit from the project through participation," he said, adding that the agreement follows closely on the heels of a similar one signed by De Beers and the Attawapiskat First Nation earlier this month for the Victor Project in Northern Ontario.
While the IBI was signed on Monday, a formal signing ceremony to involve the community will be held on Jan. 1.
WOW!! Platinum!
Ends trading today at $980/oz!
Platinum Over the Last 3 months.
Which Would You Rather Have? Health or Money? Read What These Jewelers Picked!
Swissinfo reports this story which could have come straight out of Ripley's Believe it or Not or Alfred E. Newman's "Mad Magazine".
BaselWorld organizers dropped their claim against the Federal Health Office for imposing a ban on Asian exhibitors during the 2003 Severe Acute Respiratory Syndrome (Sars) scare.
Organizers of the Swiss exhibition had initially sought $39 million in damages from health authorities for banning 400 exhibitors, staff and visitors from Hong Kong, China, Singapore, and Vietnam just two days before the watch and jewelry fair opened in Basel and Zurich. The organizers gave up their claim following an October 21 federal court ruling that the health authorities’ decision had been justified.
The court tribunal rejected claims from Swiss Exhibition that they had lost millions of Swiss francs in business as a result of the health authority’s decision.
Health office director, Thomas Zeltner, at the time had said that the restrictions were designed to prevent the spread of Sars. The health authorities had also stated that underestimating the potential impact of a Sars epidemic in Switzerland could have a disastrous impact on the country.
Swiss Exhibition said that such measures were unjustified and would not stop a Sars outbreak, adding that the decision threatened its livelihood. The interior ministry confirmed the health office decision in December 2004, prompting an appeal to the country's highest court.
"If there is a similar case, we know what the legal situation is now," said fair spokesman Christian Jecker last month. "We could face the same kind of problem with bird flu."
Baselworld itself has faced claims worth millions of Swiss francs from Asian exhibitors after the ban.
The annual fair is not open to the public and is the biggest of its kind in the world. It is estimated that approximately 50 percent of the global watch and jewelry turnover at the wholesale level comes from business conducted during the eight days of the BaselWorld exhibition.
In 2003, Switzerland’s Federal Health Office banned companies from affected nations. The 2003 event was the first to be co-hosted by Zurich, but BaselWorld organizers decided to hold future editions in Basel alone. In 2005, the fair attracted 89,700 visitors. In 2006, BaselWorld will hold its 34th edition from March 30 to April 6.
Abazias.com Reports 3Q Loss of -15%.
Florida-based website Abazias.com reported a decrease of 15 percent in third quarter sales to $520,000, compared with the previous corresponding period, according to a company statement.
For the nine month period ending September 30, 2005, sales increased 8.5 percent to $133,000 with a gross profit of 172 percent over the corresponding period in 2004. Net loss for the nine month period reached $0.39 million compared to a net loss of $1.02 million in the corresponding period in 2004.
Platinum continues Surge!
Platinum now trading at $985/0z
Zales Jewelers Reports 1Q06 Loss Of 24M.
Investment firm Goldman Sachs called Zale's "turnaround expectations for this holiday shopping season as overly ambitious," on November 9. The investors report was followed by a 2 percent decline in Zale share price that day on the New York Stock Exchange to near its 52-week low of $25.50. Shares closed 0.2 percent lower at $27.11 on the eve (November 15) of its announced first quarter of fiscal 2006 earnings.
Before the markets opened on November 16, Zale reported a net loss of $23.7 million for its first quarter of fiscal 2006. The loss includes a $5.3 million after-tax impairment charge related to its planned closing of 30 Bailey Banks & Biddle locations. Zale president and CEO, Mary Forte, said the company had "made a number of significant changes at the Zales brand in a fairly condensed period, but we believe these changes are essential to successfully reposition Zales for long-term market share growth."
Additionally, Zale repurchased $45 million in stock, which "signifies the confidence we have in our business," Forte said.
Forte said customer response to new merchandising assortments would drive market share during the Christmas holiday shopping season. During a conference call, Forte said they were upgrading some 600 best selling items and identifying some 1,200 new items and new collections "to reinforce Zale as a leader in style," Forte said.
Zale is targeting direct mail and television advertising campaigns as the primary vehicle to drive brand recognition for the holiday season.
In preparation for the second quarter, Forte said that Zale has "graduated 1,000 employees in diamond certification training" from the Diamond Council of America. "We are confident in our preparations and will take our fair share of the market this holiday," Forte said.
Zale operates 2,373 specialty jewelry retail stores in the United States, and has seen its share price fall about 10 percent in 2005. Goldman Sachs contends "in our view" that Zale took on too many changes at once and downgraded Zale stock to "under perform" from "in-line" with estimates. Zale changed merchandising about one-third of its product set, shifted product sourcing outside of the United States, and narrowed some of its stores down into special demographic fits.
In response to Goldman Sachs' questions on future brand promotion strategy, Forte said, "We did homework on this, [we] changed our ad agency and proceeded to take [lessons learned], and get more research on our own, and did more research with Diamond Council of America when we came up with our game plan for the message we will send to our consumer."
For its first quarter of fiscal 2006, Zale same-store sales slipped 1.2 percent, and Forte said, "We are disappointed with these sales results." Overall revenues for the quarter rose almost 1 percent to $432 million.
"Delay in receipts of new merchandise related to the Zales repositioning resulted in lower than planned in-stock positions during the quarter," Forte said.
Product offering changes and new vendor relationships "has temporarily extended the lead time of supplying merchandise to our stores," she said.
In October, Zale and The Knot Inc., agreed to promote Zale's brands on the wedding planner website (The Knot) as part of a full-service bride and groom service. Eventually the agreement is set to promote Zale brands with banner ads, product placement, and a ring search tool. Zale will feature The Knot's editorial features relevant to engagement ring and wedding jewelry.
For fiscal year 2005, Zale reported a 3.4 percent increase in revenue to $2.4 billion and same-store sales up 0.3 percent. Profits for the year were flat compared with a profit of $106.8 million in fiscal year 2004.
The company expects to close some 30 Bailey Banks & Biddle stores after the 2005 Christmas shopping season.
What Is Happening To Gold?
Gold rose to a 17-year intraday high in trading yesterday as investors bought the precious metal as a hedge against inflation. Gold ended the day at $484.00/oz.
U.S. consumer prices are rising at a 4.9 percent annual pace compared with a 3.7 percent increase at the same time last year, figures from the Labor Department showed yesterday. Gold for immediate delivery yesterday rose 2.3 percent, its biggest one-day gain since July 2004.
``The market has moved higher following renewed interest from speculative investors looking for `safe haven' assets,'' Warwick Schneller, a commodities analyst at Commodity Warrants Australia, said today in an e-mailed report.
Gold for immediate delivery rose as much as $3.40, or 0.7 percent, to $482.70 an ounce, the highest since January 1988.
Gold for December delivery rose as much as $4.40, or 0.9 percent, to $483.50 an ounce in after-hours electronic trading on the Comex division of the New York Mercantile Exchange.
Gemology As A Career? Ask Jared.
The Gemological Institute of America (GIA) selected its outstanding graduate for 2006. The award recipient, Jared Ross, was inspired by the industry while working for a family jeweler in Nebraska at the age of 17. Ross said he knew that earning a jewelry education was essential to reaching his goal of one day running his own operation.
When Ross was 23 years old when he earned GIA's Jewelry Business Management diploma while working full-time, and he excelled in the GIA School of Business with an A average, according to GIA's statement.
The annual award is presented by the Distance Education Training Council (DETC,) and is given to one exceptional GIA Distance Education student who has achieved extraordinary standards of academic and personal excellence. DETC is the national accrediting commission, which sets standards for and accredits GIA's Distance Education courses and programs.
"We chose Jared as this year's outstanding graduate not only because of his excellent academic record and strong work ethic, but also because of his remarkable passion for the industry," said Brook Ellis, GIA vice president of education.
Ross currently works for Tiffany & Co., at the luxury retailer's boutique located at the Bellagio Hotel in Las Vegas, Nevada. He said, "It's not a job, or a career, but a dream come true." Ross says he takes pride in sharing the passion of buying jewelry with his customers.
"When I work with an engagement client, I not only want him to have a passion for the woman that he is about to marry, but I want him to have a passion for that diamond that he is about to buy," Ross, who is a newlywed, said. "Having a great education is the backbone to getting that done."
Ross is in the process of completing GIA's Graduate Gemologist diploma program through Distance Education.
How Good Is Your Diamond? GIA Might Have An Answer.
Ever wonder why it is that some diamonds just sparkle and scintillate like heck, while others look dull, glassy, and lifeless?
The answer is it has everything to do with the Cut of your diamond. The better the Cut, facet alignment and proportion, the more light will be coming out through the top of the diamond to your eye.
GIA (Gemological Institute of America) the foremost diamond grading and research laboratory in the world is debuting its new Cut Grade for round brilliant shape diamonds on January 1, 2006. Based on extensive research over fifteen years the new Cut Grade will appear on it's Lab Grading report. Cut Grades will range from Excellent to Poor.
In it's research, GIA considered, evaluated, and measured all 58 facets that compromise the round brilliant shape.
Facets that comprise the round brilliant diamond.
The grading system takes into account the entire diamond including the Table, Crown, Pavillion, Stars, upper and lower girdle facets, and culet size.
Cut Grade will range from Excellent to Poor and Girdle Thickness will factor into determining the final cut grade. In order for a diamond to get an "Excellent", girdle thickness will have to be in the range of 'thin' to 'slightly thick'.
Cut Grade Designations.
Girdle thickness will play an important consideration in assessing the final Cut Grade. This is so because many times in order to reach a target carat weight, a cutter will leave a thicker girdle in order to retain more weight. This will necessarily come at the expense of light performance and diamond beauty.
Evaluation of Final GIA Cut Grade based on Girdle Thickness.
The Cut Grade is based on rounded averaged values in the folllowing way:
Total depth is rounded to the nearest 0.1%
Table size is rounded to the nearest 1%
Crown angle is rounded to the nearest 0.5°
Pavilion angle is rounded to the nearest 0.2°
Pavilion angles ending in odd numbers are rounded UP to the next even number.
Star length is rounded to the nearest multiple of 5%
The lower-half (lower-girdle facet) length is rounded to the nearest
5%.
If you're considering a diamond that is not GIA graded you will need either a Megascope or Sarin Analysis Report which will provide you with the measurements for the Star, upper and lower girdle facets, which you can then enter into the GIA Facetware calculator along with the other numbers to determine the Cut grade.
The broad range in numbers rounding by GIA was based on the variances they found in measuring devices currently on the market and the observable differences in cut quality that could be distinguished by laypeople and tradesmen in the course of their research. No doubt this broad range may very well take an "Excellent" into a "Very Good" despite the certainty that a visual difference will not be discernable. What effect this will have on prices remains to be seen.
Attached are illustrations of the different facets in a round brilliant diamond used by GIA to calculate the Cut Grade as well as their Facetware interface and Cut Grade definitions. Also included is a Megascope Cut Analysis with the Star facet values and the lower girdle facet values highlighted.
GIA Facetware Calculator to obtain Your Final Cut Grade. If you're considering a diamond that has not been graded by the GIA, you will need a Sarin or Megascope Cut Report for some of the requested measurements.
Below is am example of a Megascope Cut Analysis report providing the measurements to plug into the GIA Facetware calculator.
Consumers will definitely benefit from this new Cut Grade system.
Gold Keeps Rising!
Gold in New York rose to the highest in almost 18 years on investor demand for alternatives to U.S. and European currencies, stocks and bonds, ending the day at $486.10.
Investment in gold rose 56 percent to 118 tons in the third quarter from a year earlier, the producer-funded World Gold Council said today. Investment in exchange-traded funds climbed to 38 tons, compared with a net decline of 2 tons a year earlier, the council said. Gold sold in dollars has rallied 3.6 percent this week, even as the U.S. currency approached a two-year high against the euro.
``Europe doesn't look terribly attractive and the U.S. still has the current account-deficit problem,'' said Tom Boustead, an analyst for Refco Inc. in New York. ``That forces interest in hard assets, and investors are gravitating toward gold.''
Gold for December delivery rose $7, or 1.5 percent, to $486.10 an ounce at 10:53 a.m. on the Comex division of the New York Mercantile Exchange. Prices earlier reached $487.80, the highest since January 1988. A futures contract is an obligation to sell or buy a commodity at a set price by a specific date.
Gold consumption by jewelers and investors was 838 metric tons in the third quarter, up 7.6 percent from a year earlier, the London-based World Gold Council said. Jewelry demand accounts for 73 percent of gold consumption.
Gold has gained 11 percent this year, and the Standard & Poor's 500 Index has climbed 1.9 percent. U.S. Treasuries have returned 1.7 percent, heading for the worst annual performance since 1999, according to Merrill Lynch & Co. data.
Investment-grade corporate bonds have gained 0.9 percent this year, including reinvested interest payments. They are also poised for the worst year since 1999, Merrill data showed. Junk bonds in the U.S. have risen 1 percent in 2005, the worst since 2002.
Gold & Precious Metals Update
Comex gold raised the bar again as the yellow metal
reached fresh 18-year highs Thursday at the New York Mercantile Exchange while gains in silver followed close behind.
The rest of the complex however, including platinum and palladium, took a pause after reaching record highs on Wednesday.
The benchmark December gold contract settled up $7.80 at $486.90 an ounce.During the session the contract traded to a $487.80 high - its highest level since Dec. 29, 1987.
Bill O'Neill, a principal at LOGIC Advisors, said several bullish factors have been underpinning the gold market including a breakout technically, strong European and Asian buying as well as inflation concerns "lurking in the market."
"We are seeing (buying) interest across the board and gold is moving higher
in all major currencies not just the dollar," O'Neill said.
Amid the boldness of the recent rally, O'Neill said he raised his medium-term target for gold to $520-525 an ounce,
up from $485-$490 an ounce.
"These price levels could happen quickly. There might be some resistance around the $500 level but any dips will be bought," O'Neill said.
As gold has broken away from the dollar, O'Neill said tensions in France from recent riots and interest rate differentials are hitting the euro but lending support to gold and the dollar.
Other market sources said the World Gold Council's third quarter 2005 review on gold, released early Thursday, was also supportive to the market.
The Council said investment demand for gold rose by 56% in the third quarter and is on target to move higher in coming months.
The momentum in gold led the way for silver to settle higher.
The December contract reached an $8.140 an ounce high before settling at $8.102, up 10.0 cents on the day.
The platinum market took a pause from its recent record highs seen Wednesday and settled lower on the day. The most-active January contract closed the session down $7.30 at $982.40 an
ounce. During the session, traders said the market was taking a "pause" but would likely continue its climb towards the $1,000 psychological level. Despite the pull-back, traders said the technical chart remains positive and more upside momentum should be seen.
The Palladium December contract dipped to a $252.00 session low but later settled up 60 cents at $262.10 an ounce.
All indicators point to the Precious Metals continuing to move up.
Halo Rings Anyone?
We have just added these beautiful Halo Rings manufactured by Vatche to our Exceldiamonds.com website.
Beautiful.
December Key Month for E-Tailers.
Luxury retail and the Internet are the hot places to shop for the upcoming Christmas holiday season, according to Tracy Mullin, CEO of the National Retail Federation.
Mullin told the USA Today newspaper that she expects an overall 5 percent growth in retail sales compared with 2004. She gave the biggest draw to luxury retail stores, online shopping, and gift certificates.
In the United States, the December gift-giving season is the most important retail season, and already diamond-related retailers and are counting on strong gains to boost their bottom line.
Mullin said jewelry stores could find December sales accounting for as much as 40 percent of annual sales.
Mullin also told the newspaper that shoppers are growing retail savvy and using catalogs, the Internet, and in-store browsing to compare prices and product quality.
According to a new survey by Yahoo! small business research, 83 percent of holiday shoppers said they would be browsing the Internet for gifts in 2005. Eighty-percent of shoppers said the high price of gasoline was causing them to drive their mouse online rather than an automobile for the shopping experience.
Sixty-percent told Yahoo! that it was important to their needs that retailers have an online presence. Shopping on the Internet also affords flexibility to the consumer to "buy anytime," avoid lines and traffic, and to find specialty items often not carried in traditional stores.
Mullin estimated only four in 10 shoppers would make purchases online.
$100 Oil? Effects on the Diamond & Jewelry Industry?
When it comes to the prospect of $100 oil prices, it's still a question of when, not if.
Marketwatch has a very interesting article this week on the prospects of reaching $100 Oil.
Earlier this year, speculation over a spike past $100 a barrel was fed by terrorist activities, severe weather and political and economic uncertainties. In April, Goldman Sachs even warned of a "super-spike" period that could push oil to $105 per barrel.
But by late August, around the time when crude-futures prices reached a record level near $71 a barrel, MarketWatch's editor-in-chief questioned whether Hurricane Katrina had helped mark the peak for oil. See David Callaway.
"The $100 a barrel was never going to be a near-term expectation without a cataclysmic terrorist attack on a significant oil infrastructure," said Jason Schenker, an economist at Wachovia Corp.
Indeed, that price scenario was "always an exaggeration of a low-probability event," said Michael Lynch, president of Strategic Energy & Economic Research.
What ever happened to $100 crude? It just got postponed -- that is, at least until the next hurricane season or some geopolitical bombshell.
When it comes down to it, traders must remember the reason crude reached record highs in late August. "There was a massive natural disaster that caused supply lines to shut down and we're still seeing the impact of," said Schenker. So "it would take something significantly greater than Katrina, Rita and Wilma combined" to get prices to $100.
Crude prices are down about 18% from their record high in Katrina's wake.
Even so, some analysts refuse to relinquish that triple-digit price, mainly because the world is depleting its oil reserves and there's never a shortage of price-supporting events.
"What ever happened to $100 crude? It just got postponed," said Agbeli Ameko, a managing partner at First Enercast Financial. "That is, at least until the next hurricane season or some geopolitical bombshell."
"In this 'peak-oil' and 'terror-premium' environment, the market will remain in reach of the $100 barrier," he said.
Traders have been keeping a close watch on domestic and international supplies, but it's important to take a closer look at oil reserves and production to calculate just how much oil the world has left.
There's probably about 1 trillion barrels of oil left worldwide -- and 60% of that is in the Middle East.
There's probably about 1 trillion barrels of oil left worldwide -- and 60% of that is in the Middle East, said Dan Hassey, a senior research analyst for Boca Raton, Fla.-based Gold & Energy Advisor.
"Supplies are so tight and demand is growing and unfortunately, a lot of the supplies we get are [from] some very unstable places including ourselves, as we learned in the last couple of summers of hurricanes," he said.
Of the world's total, Saudi Arabia holds 23% of the proved oil reserves, or about 263 billion barrels, according to a report from the Gold & Energy Advisor, which based some of its figures on an article in Barron's. A total of about 30% comes from Iran, Iraq and the United Arab Emirates.
Increasing oil prices fuels inflation. Gold and Platinum are hitting highs on a daily basis which if sustained will lead to higher jewelery prices.
Are You Ready For Cyber-Monday?!
Cyber Monday, which would be November 28, 2005, the Monday after Thanksgiving, is quickly becoming one of the biggest online shopping days of the year, according to a report released by Shop.org/BizRate Research 2005 eHoliday Mood Study.
In 2004, 77 percent of online retailers said that their sales increased substantially on the Monday following Thanksgiving. This trend is driving serious online discounts and promotions on Cyber Monday for 2005.
According to the survey, the largest increase in Cyber Monday sales in 2004 went to the jewelry and luxury retailers, with 89 percent of websites seeing substantial increases in sales, and consumer electronics retailers at 86 percent.
“On Cyber Monday, consumers set their sights on surfing for holiday gifts and shopping online,” said Scott Silverman, executive director of Shop.org. “This year, online retailers will be capitalizing on the increased traffic by offering special promotions and discounts,” he said.
Researchers specializing in online sales, attribute the increase in web traffic to the faster and more secure Internet connections at work. Consumers, who were unable to complete their shopping over the Thanksgiving weekend, also are driving internet sales on Cyber Monday. Internet sales analysts also expect many consumers to shop on Cyber Monday from home after work or when their children are sleeping.
According to a recent Shop.org survey, conducted by BIGresearch, more than one third of consumers (37 percent,) or 51.7 million people, said they will use Internet access at work to browse or buy gifts online this holiday season. The survey found that more than half of young adults 18-24 years (51 percent) and nearly half of those 25-34 years (49 percent) will be shopping online during work hours. The survey also found that men (42 percent) are more likely than women (32 percent) to shop at the office.
Many online retailers are offering extra incentives to encourage people to shop online. According to the eHoliday Mood Study, 43 percent of online retailers plan to offer special promotions and discounts on Cyber Monday. Deals will range from free shipping, to gifts with purchase, to percentages-off.
Online retailers are also planning for large-scale promotions on Thanksgiving Day, when most retail stores will be closed. A Shopzilla survey found that 36 percent of online retailers will be offering special promotions and sales on Thanksgiving Day. Some will even be offering their Black Friday discounts one day early on their websites.
The consumer poll has a margin of error of plus or minus 1.0 percent. Shop.org is an association for retailers online. Founded in 1996, Shop.org became a division of the National Retail Federation in January 2001. The association’s membership includes interactive executives from store-based retailers, catalog-based retailers, Web-based retailers, and retail solution providers
More Bling! Bling! For You!!
Here are the latest Diamond Engagement Rings from Vatche!
Mind-Body Expert Chopra to Address GIA.
National Jeweler reports today that mind-body medicine pioneer Deepak Chopra will present "Unlocking the Hidden Dimensions of Your Life" at a special luncheon during the Gemological Institute of America's (GIA) 4th International Symposium in San Diego Aug. 27-29, 2006.
Recognized for his philosophy on expanding traditional Western medicine with natural healing traditions, Chopra will discuss the concepts as told in his latest best seller, The Book of Secrets: Unlocking the Hidden Dimensions of Your Life. A book signing will be held immediately after the lunchtime presentation on Aug. 29.
"Deepak is a highly regarded leader in the areas of modern health philosophies, and he will add a great motivational and inspirational flavor to Symposium," said Kathryn Kimmel, GIA vice president of marketing and public relations and co-chair of the event, at which U.S. Secretary of State Madeleine Albright is scheduled to be the lead keynote speaker.
Time magazine named Chopra one of the top 100 heroes and icons of the century, dubbing him "the poet-prophet of alternative medicine." He has authored 42 books and issued more than 100 audio, video, and CD-ROM titles totaling over 20 million copies sold in 35 different languages worldwide.
Chopra served as chief of staff for Boston Regional Medical Center and led an endocrinology practice before launching the Chopra Center for Well Being in California in 1995. Through the center, he created a medical system based on the belief that perfect health is more than just the absence of disease, but rather the integration of body, mind, and spirit.
Just what we need, some more touchy-feely bulls--t. What a waste of money. For me, gimmee a Bud-Lite!
GIA Installs Destino as Chief: Announces Major Changes to Lab.
The Gemological Institute of America (GIA) has announced sweeping changes in the face of the New York lab grading scandal that has rocked the organization.
Ralph Destino, former chairman and president of Cartier, Inc., has been appointed chairman of GIA, a newly created position, it was announced Monday by GIA's Board of Governors. The position is effective immediately. Current GIA president Bill Boyajian will remain with the organization as president, but he will report to Destino, according to a GIA release.
"Following a three-day board meeting, it was determined that Mr. Destino, a longtime Governor of GIA, is uniquely qualified to assume leadership," the Board of Governors said in the release. "He has our deepest respect and our fullest confidence. We believe that this appointment, as well as the new initiatives we are implementing, should signal to the diamond trade, in the strongest terms, the seriousness and depth of commitment the board has with regard to ensuring that the industry can place its trust in GIA as the standard for diamond grading, worldwide. "
The news follows GIA's Oct. 18 announcement that it had fired four of the 242 employees at its New York gemological laboratory and that lab head Thomas C. Yonelunas had resigned—though he was not implicated—amid an independent review into grading improprieties at the lab. The review was prompted by a lawsuit accusing the GIA lab of upgrading diamond grading reports in exchange for money.
In addition to Destino's appointment, GIA also announced the following changes:
* The GIA lab will discontinue its current "Membership" structure and will introduce a new single price structure for all diamantaire clients, worldwide. This policy will go into effect Jan. 1, 2006. Further details will be forthcoming.
* To avoid any appearance of impropriety, GIA will, effective immediately, no longer solicit or accept donations from diamantaires whose stones are graded in the lab.
* Following the recent independent investigation mandated by the Board of Governors, the names of those diamond dealers who may have violated GIA's Code of Ethics have been turned over to law enforcement officials. GIA notified these dealers that it will no longer accept diamonds from them for grading.
"I am honored to take on this active management role and pledge to work tirelessly with the Board of Governors, as well as partnering closely with Bill Boyajian, to instill a new culture at GIA," Destino said in GIA's release.
In the statement, Destino stressed, "If we are to continue to earn the trust of diamond dealers, other trades people and the public, we must maintain the very highest ethical standards and a zero tolerance policy that are beyond reproach. These initiatives are just three of the many new policies and practices that we plan to announce in the coming weeks and months that we believe will be embraced by the industry. The Board of Governors, as we have recently promised, has formed a special Operations Committee to address other important policy issues that will lead to additional initiatives."
The news comes on the heels of GIA appointing Linda Scholl to the new post of lab compliance officer. Scholl will oversee the enforcement of GIA's compliance policies for the laboratory.
A special letter was mailed to all GIA clients on Nov. 15, from recently appointed New York lab head Tom Moses, who wrote:
* All GIA employees must avoid situations that conflict in any way with GIA's ability to serve its clients. Therefore, no employee may solicit or receive compensation in any form from lab clients, including cash and/or non-cash gifts or entertainment. There is no exception to this rule and any violations will result in immediate dismissal.
* GIA has retained EthicsPoint, the leading provider of services to support compliance, workplace ethics and corporate governance, to enable GIA clients, as well as GIA employees, students and vendors, to communicate openly, anonymously and safely with GIA management and its board. A 24-hour, 7 day-a-week hotline has been established for this purpose. The number is: (866) 295-2625 (toll-free in the U.S. and Canada) and will begin operation on Nov 21. [Also beginning Nov. 21 outside of the United States. and Canada, one may contact a local operator to place a collect call to the following U.S. phone number: (503) 726-2269 (only an operator can place the collect call). The multilingual Web site is also available for reporting: Ethicspoint.com]
* GIA has taken steps to strengthen its Professional Ethics and Conduct Compliance Statement. Among its new principles and policies, is the requirement for employees to inform GIA senior management of any code of conduct violations that they may witness or of which they become aware. Failure to do so will result in dismissal.
"These first steps are just the beginning of a new culture that is shaping at GIA," Destino said in the release. "We take this matter very seriously, and we expect both our employees and clients to do so as well."
Gold on The March! Extends Rally!
Gold futures set a fresh 18-year high Monday, adding to recent gains on continued strong physical demand, central bank buying and inflation concern.
Gold for December delivery closed up $3.30 at $489.50 an ounce, having earlier touched a high of $490.50 an ounce, its highest level since December 1987.
"The primary factors driving gold today include the threat of inflation, jewelry demand and central government (primarily Russia) buying," said Oscar Nelson, gold trader at U.S. Global Investors. "In addition, gold is increasingly becoming a viable investment alternative in times of choppy stock and bond market action."
Peter Grandich, editor of The Grandich Letter, agreed and added one more factor -- major players caught with short positions.
"I believe groups who have tried to artificially depress gold prices are in serious trouble and can cause a far greater rise than most assume today," said Grandich.
Gold futures added almost $17 an ounce last week with many analysts expecting the metal to surpass the $500 an ounce level before the end of the year and trade above that heading into 2006.
Silver futures ended up $6.60 cents at $8.133 an ounce. Platinum futures closed down $4.50 at $981.60 in a continued pullback from last week's $1,000 an ounce peak. Its sister metal palladium closed up $1.75 at $268.75 an ounce.
Gold on the Way to $500
Gold is up to $493.00 this morning in Asian trading.
We'll see what happens when New York markets open later this morning.
Gorgeous Diamond Necklaces and Pendants For This Holiday Season!
We have just added these magnificent diamond necklaces and diamond pendants to our Exceldiamonds.com website. Manufactured by world class jewelry designer, Vatche, these gorgeous diamond pieces will make for excellent Holiday gifts.
Wanna Buy A Nice Watch?
Holiday season pickings:
Baume & Mercier
Boucheron
Concord La Scala
Jeager-Lecoultre Mens
Cash Is Back! Can You Believe It?
Cash has replaced credit cards as the second-most popular payment method for holiday gifts this season, according to a new National Retail Federation (NRF) survey.
The "NRF 2005 Holiday Consumer Intentions and Actions Survey," conducted by BIGresearch, finds that check/debit cards remain the most popular payment method this season. It finds that 34.3 percent of shoppers will use debit/check cards, 28.5 percent will use cash, 28.2 percent will use credit cards and 9.1 percent will use checks.
CDs, DVDs, videos and video games remain the most popular gifts, with 61.2 percent of consumers planning on purchasing at least one as a gift. Other popular gifts this year include clothing and clothing accessories (60.3 percent), gift cards (52.5 percent) and toys (45 percent). Many consumers (30.1 percent) also plan to include food or candy in their holiday gift purchases.
As of last week, the average shopper had completed 24.9 percent of his or her shopping, with 68.1 percent less than a tenth finished, according to the report.
Is there a full Moon out there? Shoppers opting to pay with the green rather than plastic!! Gotta be Un-American!
Criminal Risks Closes London Diamond Exhibit.
In what had been billed as the world's largest collection of diamonds on display, London's Natural History Museum exhibit 'Diamonds' abrubtly ended some three months early without any warning on November 23.
According to Diamonds exhibit director, Michael Dixon, the closure was decided overnight after the police advised the museum that closing the exhibit was best for security reasons.
"Since we began planning this exhibition, we have followed Police advice to the letter in terms of ensuring the security of our staff, our visitors, and the exhibition specimens," Dixon said in a statement.
"That advice changed on the afternoon of Tuesday 22 November. It indicated a heightened criminal risk to the exhibition."
No specific details on the threats or risk were made available. The museum said it would refund all pre-booked tickets.
Internet Comes Of Age For Luxury Shoppers.
A Report today by Luxury retail analyst Unity Marketing says that luxury consumers prefer the Internet for shopping, because it is easy and convenient.
Out of 15 luxury product categories Unity listed, consumers chose 11 categories they favor for shopping online.
In the wider scheme of retail shopping however, the Internet only accounts for a fraction of the total. The figure has been growing each year since 1997, and accounted for $230 billion in 2004.
"For most retailers the luxury consumer segment represents their marketing ‘sweet spot,’" said Pam Danziger, president of Unity. "They shop more frequently and spend more money when they shop."
Danziger said that --at the very least-- half of luxury consumers planned to buy gifts online in 2005.
Fully 82 percent of luxury consumers agree with this statement: Internet shopping has made shopping easier for me. Some 78 percent agree that the Internet: Lets me find exactly what I want at the right price without a lot of hassles.
The ability to compare prices was the No.1 point valued by luxury consumers, and is also one of the most important elements across all consumer segments as well from independent studies by AOL, comScore, and Forrester Research.
Unity queried some 1,200 consumers with an average income of $142,000 and an average age of 43 years. Of the group surveyed, Unity said 94 percent used the Internet to buy products during the third quarter of 2005.
Other findings report:
* 43 percent researched a product and made the purchase in-store.
* 35 percent browsed the product in-store and bought online at a later date.
* 20 percent researched the product online and ordered it by calling the store.
* 67 percent use the Internet to compare prices.
Happy Thanksgiving!
Happy Holidays to one and all. Best Wishes.
Eat well today, stores open at 6 A.M. tomorrow!!
And of course, the Internet is open 24/7.
Wear This Watch And Feel Calmer???
Audience members who attended the live taping of Monday's Oprah show went home with a diamond Philip Stein Teslar watch worth $1,795.
Host Oprah Winfrey gave away the watches as part of her annual "Oprah's Favorite Things" holiday show. Other 2005 items on the TV icon's list include a Burberry coat and purse, Garrett Popcorn Shop's CaramelCrisp and CheeseCorn tins and Fox & Obel Market's Oatmeal Cookie Dough.
Monday's plug marked the second time Winfrey featured a watch by Philip Stein Teslar on her list of favorites. In addition to mentioning the watch on the show, the Oprah Web site directs consumers to NeimanMarcus.com to buy the timepiece. By Tuesday morning, the retailer Web site reported $100,000 in sales of the watch since the show aired, according to Philip Stein Teslar spokeswoman Shaye Strager.
The watches endorsed by Winfrey have integrated active Teslar technology. The company claims it reinforces the human body's electromagnetic field with a natural earth signal to bring calm and relaxation to the wearer.
About the technology
• Copy provided by Philip Stein Teslar watches.
• Every Philip Stein® timepiece has integrated active Teslar® technology designed to reinforce the human body's electromagnetic field with a natural earth signal associated with calm, meditation, relaxation, and enhanced performance.
• Experience the Teslar® Effect and let yourself feel more relaxed, more rested and less tense.
About the watch
• 12mm interchangeable black satin strap.
• Stainless steel case with pavé diamonds.
• 0.5 total carat weight.
• Black dial with marked "12" and "6" numerals.
• Curved mineral crystal with frosted treatment; scratch resistant.
• Two quartz movements.
• Water-resistant up to 3 ATM or 100 feet.
After you get this watch, call me: I've got another great buy for you: a bridge in Brooklyn.
Gold and Platinum now at Record Highs!
Gold now in Asian trading is at $502.15 and Platinum at $1004!
Gold Highest Since 1983!
Gold prices have surged past the $500-an-ounce mark, and more gains are predicted as investors look to protect themselves against inflation fears.
Gold hit $502.30 in Asian trading today, its highest level since February 1983.
Other commodity prices also have been climbing, and platinum topped the $1,000-an-ounce level.
Demand from jewelery makers is helping to boost prices, as is speculation that some central banks want to cut US dollar holdings and boost gold stores.
"The expectations of inflation in the coming year are very high," said Albert Cheng of the World Gold Council.
People are looking for an alternative investment to products such as US dollar-based bonds", he said.
A number of factors have come together to create what analysts are calling a commodities boom.
As well as the worries that inflation will erode the value of bonds and shares, strong demand from Asian economies for metals has been squeezing supply at a time when producers are finding it difficult to boost output.
This time of year also normally sees demand for gold pick up as jewelers prepare for the Christmas holiday period and Indian wedding season, analysts said.
Prices are likely to climb - even though there may be some short-term profit taking - because $500 is an important psychological level which acts as a deterrent until it is broken through.
"Once they are comfortable with this level, it will not deter people from buying jewelery," said the World Gold Council's Mr Cheng.
People tend to buy more when the price of gold is actually upward."
The gold price hit a record of $873 an ounce in January 1980, and hit $502 for one day in December 1987.
Since then it has recovered from lows of about $250 an ounce in 2001 and has surged almost 15% this year alone.
Platinum prices have also climbed in recent months, hitting their highest levels in 25 years, driven by strong jewelery demand and the metal's important role in catalytic converter car exhausts.
76 Carat Diamond Found!
Petra Diamonds Limited has recovered a 76 carat diamond from the Sedibeng mine in South Africa. The company expects to sell the diamond for about $500,000. In 2004, the same mining complex yielded several large diamonds including a 57 carat diamond that sold for $489,000 and a 42 carat diamond, which sold for $282,000.
"The Sedibeng mine has consistently produced high-quality diamonds, and recoveries of such special stones combined with the growth in total carat production means that the South African operations will continue to generate increasing revenues for the group," Petra stated in their announcement.
Update on Surging Gold & Platinum Prices.
Gold rose above $500 and platinum above $1,000 an ounce on Tuesday when investment funds diversified their portfolios on worries about inflation and geopolitics.
Prices then dipped after breaking through the psychological barriers to touch multi-decade highs.
The metals were vulnerable to further downward correction as huge speculative positions could spark profit-booking, but growing demand, supply constraints and plans by some central banks to buy more gold were expected to support, dealers said.
Gold topped $500 an ounce in Asia for the first time in 18 years, while platinum breached $1,000 an ounce, hitting its highest since 1980, as it tracked gold's gains.
"The investors want to buy and they continue to buy. I see no reason for them to stop. So any pull back will be a buying opportunity," said Peter Hillyard, head of metals sales, at ANZ Investment Bank.
"The investors are diversifying portfolios. There is a feeling that currencies and equities are not necessarily reliable and they are adding to commodities because they see the returns are greater there."
Spot gold retreated to $496.80/497.60 an ounce from as high as $502.30 an ounce in Asia. It closed in New York on Monday at $498.20/499.00.
"People are looking for an alternative investment to U.S. dollar-based instruments. The expectations of inflation in the coming year are very high," said Albert Cheng, Far East managing director for the industry-backed World Gold Council.
But jewelery manufacturers and buyers may need time to adjust to the high prices, Cheng said, as bullion has risen more than 14 percent in value so far this year.
The council said this month that global demand for gold in the third quarter totalled 838 tons, a rise of 7 percent from the same quarter a year earlier, as surging investment demand helped offset a slowdown from the jewelery sector.
Some analysts said gold prices could fall to as low as $475 an ounce on liquidation by investment funds to book profits.
The latest weekly Commitments of Traders report issued by the Commodity Futures Trading Commission on Monday showed a further rise in the speculative net long position in New York's COMEX gold.
But the rally was also helped by reports that Russia, Argentina and South Africa had decided to increase the amount of gold in their reserves, reversing a six-year trend of central bank sales, mainly from Europe.
Platinum stood at $990/995 an ounce after spiking earlier to $1,002. It closed in New York at $989/993.
This year, not enough platinum is being mined and recycled to meet demand for catalytic converters and jewelery, so fundamentals have factored into the buoyant market.
Refining and chemical company Johnson Matthey, which provides fundamental analysis of platinum group metals, said in a recent report that 6.71 million ounces of platinum would be used in 2005, exceeding supply of 6.59 million ounces as demand rises from the auto sector and other industries.
It predicted that output from South Africa, the world's top producer, would be lower than planned and the shortfall would continue to support prices.
Silver inched down to $8.27/8.30 an ounce from $8.35 on Tuesday. A breach of $8.43 would make the price highest in 18 years. Silver finished in New York at $8.35/8.37.
Palladium fell to $260/264 from $261/264.
Hello!? DeBeers Mining Comes To Canada.
DeBeers is going truly global.
Press reports indicate that De Beers Canada Inc., has filed an application with the Mackenzie Valley Land and Water Board for permits to construct and operate a mine at Gahcho Kue, located in the Northwest Territories, approximately 300 kilometers northeast of Yellowknife.
The Gahcho Kue project is a joint venture between De Beers Canada (51 percent,) Mountain Province Diamonds Inc., (44 percent,) and Camphor Ventures (5 percent.) The project is located 90 kilometers east of Snap Lake, De Beers first diamond mine in Canada which is currently under construction.
With an estimated resource of 31 million tons, the Gahcho Kue project will be an open pit mine. The construction of the mine is expected to cost an estimated $706 million and will employ up to 600 people during the peak of the construction and close to 400 people durinig the operations phase of the mine.
The mine is expected to have a life of 20 years and yield an average of three million carats annually for the first 15 years.
“Advancing this project is consistent with our strategy of maintaining a pipeline of projects to meet increasing global demand as well as contributing to the sustainability of the Canadian diamond industry,” said Richard Molyneux, CEO of De Beers Canada.
“Gahcho Kué is evidence of the importance we attach to partnerships with Canadian exploration companies as a winning formula for growing the diamond industry in this country.”
The company anticipates that the project application will be referred to the Mackenzie Valley Environmental Impact Review Board for an environmental assessment.
De Beers is investing approximately $2 billion over the next three years in the Canadian diamond industry. Snap Lake is scheduled to open in 2007. The Victor mine will commence construction early in 2006 and will be in production by the end of 2008.
Global indeed! Prediction here: Look for the GIA (Gemological Institute of America) to open offices in a major Canadian city (Toronto?) within the next few years.
A First! DeBeers Agrees to Settle One U.S. Lawsuit.
"For decades, De Beers has possessed monopolistic power in the diamond industry..." reads the opening line of a class action lawsuit against De Beers brought by Emert and Katie Null in July 2005.
The Nulls accused De Beers of illegally restraining trade, controlling and limiting diamond inventories, and falsely advertising the scarcity of diamonds in order to boost prices.
The Nulls brought the class suit "on behalf of all people who purchased diamonds in the state of Illinois," but excluded sightholders, diamond dealers, manufacturers, wholesalers and retailers. The plaintiffs say members of the class paid more than fair value for diamonds purchased due to monopolistic practices by De Beers, and sought "less than" $75,000 per and for individual class members plus legal fees.
On November 30, 2005, De Beers released a statement saying an "agreement has been reached, and a preliminary approval order issued, to settle the majority of civil class action suits filed against De Beers in the United States."
De Beers said that in settling the claims, it does "not involve any admission of liability on the part of De Beers and will bring an end to a number of outstanding disputes."
The settlement announced by De Beers is for $250 million, and they name the following plaintiffs/cases: Null vs. DB Investments, et. al.; Sullivan vs. DB Investments, et. al.; Hopkins vs. De Beers Centenary AG, et. al; and Cornwell vs. D.B. Investments.
The cases are all similar in nature and list the same causes of action for price fixing and monopolistic practices. In June 2004, about one year prior to the Null's amended complaint, Arrigotti Fine Jewelry and two of its customers, all of whom resided in California, sued De Beers for violating anti-trust laws --or the Sherman Act-- in Sullivan vs. DB Investments.
The Sherman Anti-Trust Act is meant to limit a combination of corporations from agreeing to not lower prices below a certain rate in order to reduce competition and control prices within an industry.
"Defendants [De Beers Group of companies] routinely acknowledge that their control over the diamond industry constitutes an illegal monopoly that violates United States antitrust laws," the plaintiffs wrote.
Arrigotti, Shawn Sullivan, and James Walnum, alleged supply quotas were withheld from the market, that De Beers refused to work with anyone other than "entities under their control," restricted and price-fixed polished diamonds.
Furthermore they claimed De Beers conspired with sightholders to artificially keep polished diamonds out of "free and open competition."
Arrigotti's case requested of the court to name De Beers as engaged in unlawful contract, conspiracy, and that it indeed violated the Sherman Act. The court was asked to permanently restrain the defendants from continuing the practice of monopoly and conspiracy in the United States.
De Beers states, "We believe that settling these suits is the most sensible and responsible course of action for the company to take."
"We do not wish to comment or speculate on the approval process itself, or the issues under consideration by the court. Therefore, for the time being, we have nothing further to add to this statement."
Outgoing managing director Gary Ralfe was quoted in the announcement as saying the settlement is "behind us, De Beers can now focus greater attention and resources on being a leader in all of our markets and playing a leading role to address humanitarian issues such as the fight against HIV/AIDS."
De Beers says any final settlement is subject to approval by the United States District Court for the District of New Jersey and the company hopes their offer is approved in 2006.
There is currently a major lawsuit against DeBeers filed by the W.B. David Corp in reference to losing their Siteholder status
due, they claim, DeBeers implementation of their Supplier of Choice program. This lawsuit is in process.
