February 2006 Archives
Zales To Get New CEO.
Mary L. Forte has resigned as president and chief executive officer of Zale Corp., effective immediately.
The company has appointed board member Betsy Burton as interim chief executive officer, pending the selection of a new chief executive officer. Burton has served on the Zale board since 2003.
Burton, 54, has held the position of chief executive officer of various companies, including Supercuts, Inc., PIP Printing and the Cosmetic Center. She has also provided interim management and consulting services in the retail industry. Burton also holds posts on several other public company boards including Staples, Aeropostale and Rent-A-Center.
Zale Corp. is North America's largest specialty jeweler with about 2,400 locations throughout the United States, Canada and Puerto Rico as well as online. The company's brands include Zales Jewelers, Zales Outlet, Gordon's Jewelers, Bailey Banks & Biddle Fine Jewelers, Peoples Jewellers, Mappins Jewellers and Piercing Pagoda. The company also operates direct sales through www.zales.com and www.baileybanksandbiddle.com
In the all important 4th Quarter sales rose only by 0.9% despite re-doing it's product mix and going more upscale.
Pressure from Internet Diamond & Jewelry websites also cut into Zale sales.
Fool's Gold?
JPMorgan Chase & Co. said the price of gold could surge to $800 (U.S.) an ounce in the next two years, as central banks curb their selling of the metal.
The forecast came as gold shot to a 25-year high Tuesday, with investors piling into the precious metal as a refuge from escalating concerns over Iran's nuclear program. The JPMorgan analysts said gold will rise to $600 an ounce by the end of 2006.
“While we expect gold prices to be increasingly volatile, we believe that the primary risk is to the upside, and our commodity group has already pointed to the potential for slowing Central Bank sales to drive gold higher towards $800 an ounce,” JPMorgan Chase analyst John Bergtheil wrote in a note to clients.
The JPMorgan team cited falling supplies, strong demand from India, the deregulation of China's gold market, market uncertainty in the wake of the retirement of long-time U.S. Federal Reserve chairman Alan Greenspan, a gold market that has room to grow and the risk of a terrorist attack, among others, as factors that will keep gold prices elevated.
Chinese demand could spike this year as the number of weddings are likely to “rise significantly in the lucky year of the dog” that began on January 29, 2006, the report said.
In a distinctly less bullish call, UBS Securities analysts in Toronto are calling for gold to closed 2006 at $560 an ounce, and 2007 at $600 an ounce.
Geopolitical worries, combined with Tuesday's widely-expected U.S. interest rate hike, sent gold futures for April delivery up $3.50 to $574.10 an ounce on the Comex division of the New York Mercantile Exchange. Earlier it traded as high as $575.10, the highest price since January, 1981.
Gold has been flirting with 25-year highs for several months now, a run that shows no sign of slowing down.
Silver futures for March delivery gained 11.5 cents to $9.89 an ounce on the Comex. It hit an intraday high of $9.915 an ounce, a level not seen since April, 1984. Silver prices have risen 40 per cent in the past 12 months and 11 per cent this month.
Tensions between Iran and the U.S. and Europe have provided the latest boost to gold prices. Iran edged closer to a run-in with the United Nations' Security Council, with the U.S., the U.K., France, Russia and China all agreed that the United Nations Security Council should consider Iran's situation at a Feb. 2 meeting of the International Atomic Energy Agency.
Iran, the world's fourth-biggest oil producer, denies U.S. assertions that it is gearing up to create nuclear weapons, arguing that its research is solely aimed at generating energy for civilian purposes.
Iran and the European Union are scheduled to resume talks on the nuclear program in Brussels today.
The Fed, meanwhile, raised its key interest-rate target by another a quarter basis point to 4.5 per cent on Tuesday, its 14th straight increase. It is was expected to be one of the last U.S. interest rate hikes, a move that could undermine the greenback and make gold — priced in U.S. dollars — even more attractive to overseas buyers. The Fed, however, signalled Tuesday that further rate hikes could be necessary to keep inflation at bay.
Gold, which tends to trade inversely to the U.S. dollar, often rises in times of economic or geopolitical uncertainty. Investors have traditionally seen the precious metal seen as a safe haven in times of crisis.
In addition to Iran-related concern, the unexpected election of a majority Hamas government in last week's Palestinian elections also boosted demand for gold.
Increased demand for the metal — particularly from jewellery makers in India and China — as well as speculative demand from investors, and persistent worry that soaring energy costs will stir inflation in the world's largest economies, have contributed to gold's rally.
The gold sector was the biggest gainer on the S&P/TSX composite index Tuesday. Agnico-Eagle Mines Ltd. had the biggest rise, climbing $1.96 (Canadian) or 7.25 per cent to $28.98, its highest level in at least five years.
Case of jumping on a hot bandwagon? If you're going to play futures contracts, have a good exit strategy.
Romance is Thriving this Valentine's Day!
Harris Interactive has released a study which shows that romance is alive and thriving but is taking on different forms.
Traditions such as proposing on bended knee and the man choosing the engagement ring alone are much less popular than anticipated. However, the study also showed that traditional proposal customs were much more important to younger adults, suggesting we're entering a new era of romance.
Key findings include:
-- To knee or not to knee? Only 36 percent of adults believe it is
important that a man get down on one knee when he proposes.
Surprisingly, more men than women believe this is an important
tradition (40 percent men vs. 32 percent women). Out West it's even
less important, as 71 percent plan to keep both feet firmly on the
ground. However, young adults, aged 18-34, are much more inclined to
feel it's important to propose on bended knee, 59 percent, compared to
an average of 25 percent for older age groups.
-- Let's get personal ... Americans would choose to propose at a spot that
has personal significance to the couple (83 percent), over a nice
restaurant (12 percent), a public sporting event (1 percent), or even a
romantic destination, such as the Eiffel Tower (4 percent). Even more
important? -- Leave family and friends at home, say 91 percent of
respondents.
-- Size matters -- Especially if you live in the Northeast. While only 41
percent of adults admit that the size of the diamond is important, it's
a bigger deal in the Northeast, where 49 percent indicate size matters,
compared to 39 percent of those living in other regions of the country.
It also matters more to men (44 percent men vs. 39 percent women),
suggesting just how much they fret over the proposal and the engagement
ring purchase.
-- Two's company ... Sixty percent of adults believe both members of the
couple should be involved in choosing an engagement ring. Perhaps men
want women involved in the process out of fear of choosing the wrong
ring (62 percent men vs. 58 percent women).
-- Should I ask for their blessing? The majority, 53 percent, say it's
important to ask your future in-laws for their blessing. It's
especially true in the South, where 58 percent say it's important,
compared to 50 percent of those living in other regions. Again, young
adults (61 percent), and especially young men (68 percent), were most
likely to adhere to this tradition, compared to 49 percent of those in
other age groups.
-- Be honest, is it cheesy? No, a Valentine's Day proposal is romantic,
according to 63 percent of adults. Unlike other traditions where
younger adults were more likely to adhere to romantic traditions,
respondents find a Valentine's Day proposal more and more romantic as
they age.
-- Jolie or Aniston? We'll take Jolie. Adults choose Angelina Jolie
(chosen by 19 percent of men) and George Clooney (chosen by 27 percent
of women) as the celebrities they would most want to receive
Valentine's Day proposals from this February. At the bottom of the
list, Tanya Harding and Axl Rose each received one vote. A surprising
number of adults are not enamored of the rich and famous, with 32
percent saying they wouldn't want a proposal from any celebrity.
Bluenile Stock Price Sinks on Disappointing Results.
Shares of Blue Nile (NILE:Nasdaq )dropped sharply in late trading Tuesday after the online jewelry retailer posted weaker-than-expected results for the holiday quarter and issued a 2006 forecast below Wall Street's projection.
The company reported a fourth-quarter profit of $5.3 million, or 29 cents a share, up from $4.6 million, or 24 cents a share, a year earlier. Analysts polled by Thomson First Call expected earnings of 33 cents a share.
Blue Nile's sales rose to $73.2 million from $64.5 million, but were well below Wall Street's target of $80.3 million.
The company's outlook also disappointed Wall Street. For the quarter ending April 2, Blue Nile forecast earnings of 11 cents to 12 cents a share, with sales of $47 million to $49 million. The forecast include stock-option expenses of 3 cents to 4 cents a share. Analysts, meanwhile, had been expecting first-quarter earnings of 19 cents a share and sales of $54.1 million.
For all of 2006, Blue Nile sees earnings of 62 cents to 72 cents a share, including 14 cents to 16 cents in options costs. Analysts predict earnings of 99 cents a share, before options. The company forecast sales of $220 million to $245 million, below Wall Street's target of $258 million.
Blue Nile shares were down $6.91, or 19%, to $30.38 in after-hours trading.
Two weeks ago we pointed out that Bluenile Insiders have been constantly and consistently selling their stock.
So much for competing with Tiffany.
Valentine's Day Sales Rise Dramatically.
Valentine's Day gift-givers have spent an average of $105 on gifts to date, 40 percent more than they spent by this time last year, finds a new survey.
Unity Marketing's latest Gift Tracker study finds 15 percent of shoppers have already made their Valentine's Day purchases, and about 54 percent of shoppers still plan to make a Valentine's Day purchase.
Last year, about 60 percent of consumers bought Valentine's Day gifts, making it the third most-popular gifting holiday after Christmas and Mother's Day. About 30 percent of shoppers will purchase Valentine's Day decorations this year, according to the Gift Tracker study.
The study finds that consumers spent an average of $1,935 on gifts in 2005, with 61 percent going to holiday gifts and 39 percent going toward occasion gifts (birthdays, graduation, etc.) However, they spent about 6 percent less in 2005 on gifts than in 2004.
Are there Diamonds In Greenland?
The world's largest island is roughly 80 percent covered with ice. But geologists now predict that due to new diamond finds on Greenland, the island's economy may have a bright economic future ahead. Greenland shares a similar geological makeup as Canada, and recent finds of small diamonds led Hudson Resources of Canada to expand their exploration activity.
For the past two Summer seasons, Hudson Resources found diamonds, "which could be sold as jewelry," company president James Tuer told The Copenhagen Post.
The area "just north of Maniitsoq appears promising," Karsten Secher told Denmark's Miljo Danmark magazine. "We've gotten some positive test results back, and in the summer we will go back up there to collect the loose threads from the five-year project."
A diamond industry on Greenland would diversify the island's economy and give "the same adventure story as Canada," said Secher, who is with the Geological Survey of Denmark and Greenland.
While Greenland became self-governing in 1980, Denmark continues to exercise control of the island's foriegn affairs. The island has a population of about 55,000.
Tips on Proper Care of Your Diamonds and Jewelry.
Allstate Insurance Company, the largest publicly held personal insurer in the United States, said that by properly insuring diamonds, the policy holder can "rest a little easier" knowing the diamond is covered for loss. But preventing careless mishaps saves both insurer and policyholder money and time, and saves all memories found in one's precious diamond.
The insurer said it handles thousands of lost diamond claims per year. Some of the top reasons for claims could have been avoided, but in these cases the diamond is lost forever, according to the company.
Allstate says: Accidental flushing...unlike the standard drain pipe catch elbow below a sink... that 'other' drain has no way in which to retrieve a diamond after the water flows.
Those who hide their diamond(s) too well could be in for a big surprise come trash pick-up day, Allstate says. "Hiding valuables in your very own secret place," may turn out to be where another family member begins their Spring-cleaning.
When in a public place, do not leave your diamonds up for display...that encourages the diamond to walk away.
Diamond rings belong on fingers...not in pants or jacket pockets.
Is your diamond ring loose? Don't put off sizing until tomorrow...when sizing could be done today.
Diamonds may or may not be covered under personal property coverage. "If you own expensive or rare items, Scheduled Personal Property coverage is a practical way to protect your investment and achieve peace of mind," said Rich Halberg, of Allstate California. "The best part about this type of coverage is that it offers all-risk protection, which means customers are insured for all different types of perils, including loss of the stone, misplacing the item, and so on. Unless the peril is specifically mentioned in the policy as being excluded, then the item is covered."
A current appraisal or bill of sale is required to insure personal items with proper coverage.
When it comes to insuring any newly acquired valuables, there are some important things to consider. Property policies, including renters', condo, co-op, and homeowners, do include coverage of personal property. However, there is often a $1,000 coverage limit for jewelry, watches, and furs, Allstate reports.
"The idea of losing a diamond is certainly devastating," says Halberg. "But by properly insuring your valuables, you can rest a little easier knowing your investment won't go down the drain."
Diamond Prices Going Up Again. So What Else is New?
The Diamond Trading Co. (DTC) announced an increase of less than 2 percent for rough prices for the February sight, saying the increase is based on analysis of medium- to long-term demand for diamonds.
"It is important for the DTC to review its box prices on a frequent basis in order to align itself with the changing diamond market," DTC Sales Director Des Cavanagh wrote in a letter advising clients of the adjustment. "This is intrinsically linked to the performance of the polished demand in the key consumer markets."
DTC's changes were in line with the estimated 6 to 7 percent growth achieved in those markets in 2005, Cavanagh asserted, as well as the current growth forecast of 7 percent for 2006. There are opportunities for growth in 2006, Cavanagh wrote, despite a challenging start to the year.
"We are rebalancing our prices from the February sight, the overall effect of which will be an increase of under 2 percent," he wrote. "We have carefully taken into account current market fundamentals and the medium- to long-term view, which we see as positive."
Look for Retail price increases in approximately six weeks.
Diamond Testimonial for ExcelDiamonds.com
Hi everyone!
Here is a really heartfelt testimonial that we received today from one of our thrilled Exceldiamonds customers!
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Diamond testimonial
I recently had a very positive experience with Exceldiamonds and want to offer my views of why.
I began looking for the diamond my wife deserves - after 33 years of marriage. She followed me around the Army for 24 years of the 33. I knew little about diamonds but started doing internet searches and went to several jewelry stores in our local malls. Usually I knew more than the salesperson. I also checked for positive and negative comments about diamond retailers in internet diamond chat rooms. I dropped some of those because they were only diamond sellers, they did not know diamonds. It was just a commodity to them. I dropped some sites because their web site was difficult to navigate, or unattractive, or they had little educational information, no good return policy, or wouldn’t give a price, etc, etc. I also found that there was no clear language between sites; some sold ideal cut diamonds, some sold excellent ideal, some sold premium cut diamonds, some stressed 4 C’s (cut/color/clarity/carat). Others said their diamonds should be judged by 5 or 6 “C’s.” I could go on, but it seemed there was a program to keep consumers confused instead of informed.
One site that was particularly attractive, informative, and where I was offered very personable service was Excel Diamonds. They really know diamonds! Diamonds are their passion, and have been for at least 3 generations. When I called or e-mailed, I was quickly contacted by Barry, the owner and/or his son, Judah. Their best diamonds, manufactured by them, are called SuperbCert and they are beautiful beyond description. I had one of their SuperbCert diamonds, a 1.17 D I1, and another diamond (someone else’s) sent to an independent appraiser and clearly the superior diamond was the Superbcert. Although it is an I1 clarity, I defy you to find any inclusion. Due to its’ perfect cut, etc, it looked bigger and sparkled more than you would ever think! I bought it soon thereafter and had it mounted in a beautiful Vatche setting and it is gorgeous!
Although I was skeptical about buying a diamond over the internet I am now a believer in buying one from Excel diamonds for the following reasons –
*Most importantly, everything I was told was true-there was no shady half-truths or cleverly hidden surprises or confusing diamond trade jargon.
*Excel diamond’s web site is attractive and easy to navigate. It was the best I looked at among many.
*I found a lot of information about diamonds in general and also about individual diamonds. I especially liked the brilliant scope data that shows how well each diamond reflects white and colored light and the scintillation or sparkle.
*There is a lot of educational information on the excel diamond web site.
*Barry and Judah have an excellent return policy. If I didn’t love the diamond-I could return it easily.
*All policies were well explained.
*Both Barry and Judah were very patient and personable - not overly aggressive, but attentive, and they gave me honest advice, not just advice that would result in biggest financial gain for them.
*They encouraged independent appraisal, which I took them up on.
*They seemed to enjoy a good reputation on the internet diamond discussion sites like diamondtalk.
*They sell certified diamonds and have the certifications displayed on their website. *Their diamonds are all GIA and AGS certified – not certified by one of the Mom and Pop labs that gathered mixed comments on the internet discussion sites.
*They have a good selection of diamonds and a good upgrade policy if I ever want to trade in my 1.17 in on a larger diamond. I could go on.
Superlatives fail me. Without reservation, I recommended Excel Diamonds. My highest recommendation! Kim M.
Gold for Investment Portfolios?
Bloomberg today reports that Gold gained in London as investors sought to diversify their portfolios and get higher returns.
Investors are buying gold because it's outperforming stocks and bonds. Gold rose 90 percent in the five years to the end of 2005, while the Standard & Poor's 500 Index returned 2.7 percent with dividends reinvested. An index of Treasuries maturing in two years or more returned about 30 percent including interest reinvested, Merrill Lynch & Co. indexes show.
``There is still some fund money waiting to find a destination in commodities,'' Michael Widmer, an analyst with Macquarie Bank Ltd. in London, said in an interview today. ``Gold is an anti-cyclical commodity, and the funds want to own it to diversify their portfolios.''
Gold for immediate delivery gained as much as $2.01, or 0.4 percent, to $541.96. It was trading at $540.10 as of 12:44 p.m. in London.
The metal reached $575.35 on Feb. 2, a 25-year high, partly as investors bought the metal as a hedge against inflation amid rising oil prices and increased tension between the international community and Iran over the country's nuclear program.
The metal on Feb. 7 had its biggest drop in London since 1997 after a decline in the cost of oil eased speculation that inflation will accelerate and erode the value of assets including equities.
Fund investments in commodities will soar almost 50 percent to $120 billion this year, Standard Bank in London said in a report Feb. 2.
In other metals, platinum for immediate delivery fell as much as $21.50, or 2 percent, to $992.50 an ounce, the lowest since Jan. 6. Palladium fell $2, or 0.7 percent, to $277.50 while silver was unchanged at $9.22.
Zales Is In Trouble.
Zale Corporation reported earnings shy of $88 million for its second quarter of fiscal 2006. Profits for the quarter were down 12 percent.
Interim company CEO Betsy Burton said, "There had been a number of quarterly earnings misses, a number of internal financial targets missed, and our largest brand, Zales, saw its market share continue to erode."
Burton also announced that the board asked Paul Leonard, 51, to leave his post as president of Zales Jewelers, the company's largest division. John Zimmerman was appointed president of a newly-created North American division for Zale.
Zale wrote-off inventory for the quarter ending January 31, 2006, and lease settlement costs related to closing 29 Bailey Banks & Biddle locations.
Revenue for the quarter stood at $994 million, up 2.3 percent with same-store sales up 1.4 percent. Year-to-date revenue is up 1.9 percent to $1.4 billion; and same-store sales are up 0.6 percent, but the company excluded the stores it closed.
"Upon review of Zales' business, we concluded that the new strategy negatively impacted our brand positioning because it de-emphasized the value component and key diamond categories of the brand's assortment," Burton said.
Same-store sales for the third quarter are expected to remain flat the company reports.
The E-commerce landscape is rapidly changing.
Diamonds for Senior Citizens: Get Your Ads Ready!
Interesting and provocative article in today's issue of Red Herring which discusses the science of preventing aging and speculates on the likely economic fallout.
Every five years for roughly the last three quarters of a century, life expectancy in industrialized countries has risen by about one year in a phenomenally regular manner. The result has been that not only do people live longer, but a measure of social inequality―variation in the age of death―has decreased.
These changes have been brought about by medicines that either cure a problem or increase the length of time people can live with chronic diseases.
But drugs that prevent aging itself are on the distant horizon, and with them could come dramatic social changes, such as much later ages for everything from puberty to retirement, and massive inequality in life expectancy between those who can afford the life-lengthening compounds, and those who can’t. These changes, in turn, would have a significant impact on the global economy.
“What we’re talking about is not curing diseases… but slowing the aging process itself,” said Alan Cohen, a graduate student at the University of Missouri, who on Friday moderated a panel on the topic at the annual meeting of the American Association for the Advancement of Science in St. Louis.
Aging is essentially the cumulative side effects of metabolism. As human beings age, virtually every physiological measurement doctors and personal trainers can take slows down.
While many scientists agree immortality through pharmacy is not yet worthy of serious debate, and many are cautious of even making hard and fast predictions about life-extending therapies, most agree they are worthy of discussion and tentative planning.
“Over the past couple of years, definitely, aging science has experienced momentum and I think we now know enough to consider the consequences of slowing down aging,” Shin-ichiro Imai, assistant professor in the Department of Molecular Biology and Pharmacology at Washington University.
Molecules Against Aging
The most widely accepted method of increasing life span is to reduce calorie intake to about 60 or 70 percent of normal levels. Obviously, this is not a very easy or pleasurable option for those who try, so the search is on for compounds that mimic the body’s effects of fasting.
As a first step, scientists have identified particular molecules that seem to behave like key gatekeepers in the process of senescence.
An enzyme called Sir2 has been shown to increase longevity in yeast. Increasing the levels of Sir2 by either fiddling with the yeast’s genetics or administering Sir2 like a drug causes yeast cells to live about 30 to 40 percent longer.
The enzyme has the same effect in common laboratory animals such as the worm Caenorhabditis elegans, and the fly, Drosophila melanogaster.
“But we don’t know if it’s quite the same in mammals, which have more complicated metabolism regulation, and different hormones,” said Professor Imai.
“At the moment we are speculating that Sir2 plays a role by regulating the production of hormones in tissues like the pancreatic beta cells. We suspect caloric restriction increases the levels of Sir2 in mammals,” he added. Pancreatic beta cells make and secrete insulin.
A research group at Harvard University is currently working on chemicals to stimulate Sir2 activity. Professor Imai prefers a related approach, which involves increasing levels of a compound called NAD, which will in turn increase Sir2 levels because the two molecules are linked in a biochemical pathway.
Economic Upheaval
The science aside, drugs that slow the rate at which people get old could cause seismic shifts in industrial societies with the money to buy them. Shripad Tuljapurkar, professor at Stanford University, has modeled how anti-aging drugs might affect populations and economies worldwide.
“Maybe we should think about what the consequences of this are before we do it,” said Professor Tuljapurkar.
He has predicted what might happen if such drugs were to become available between 2010 and 2030. Assuming these medications accelerated the ongoing gain in life expectancy by about five times the historical rate, but after 2030 this acceleration ceases, there is likely to be an additional 70 million or 80 million people in the United States in 2050. (This figure is cut to about 35 million or 40 million if you assume women chose to delay having their first child by a decade over today’s average).
This, in turn, will upset the number of over-65-year-olds compared to those under 20 in the country. This ratio, currently about 0.2, is commonly used in planning for pensions and Medicare.
“If anti-aging drugs have effects similar to our assumptions, the ratio jump will be from 0.2 to 0.4 by 2050. In other words, the burden of supporting people if they retired at 65 would double,” added Professor Tuljapurkar.
A retirement age not far off 85 is likely necessary in order to maintain economic balance.
An older society is also likely to be a more female society. Today there are about four women for every man over the age of 80 in the United States. Given that most surveys still show that women earn less than men doing the same jobs, the pension crisis will be even tougher.
China and India currently represent about a third of the global population. If the same anti-aging drug assumptions are made for these two countries, there would be an additional 400 million people―on top of U.N. predictions for population increase―by 2050.
“That’s an enormous increase,” said Professor Tuljapurkar. “The economic growth in both countries outstrips population growth, but it will soak up the resources they are generating.”
Old Money
Because anti-aging drugs are likely to be highly expensive they may well be available to only the richest, leading to huge differences in life span both across and within nations.
“In Africa we can’t even agree how to allow people to make drugs available more cheaply when it comes to AIDS, so we have almost no chance of doing it with anti-aging therapies,” said Professor Tuljapurkar. Many other changes would be needed. “It is very difficult to hold down a job after 65,” he added. “We are going to have to rethink career structures away from simply hierarchies.”
He suggests careers where people can work their way up the ladder and back down the ladder again, without firings, shame, or failure.
From our perspective, consider what increased longevity will do for the Diamond and Jewelry Trade; no doubt increasing sales with specific styles and configurations for the Senior Citizen set.
No doubt some enterprising Madison Avenue Ad Agencies are already formulating their Super Bowl commercials to target this new demographic age-group!
Cheap Diamond Engagement Rings!
We are about to launch a new line of extremely affordable diamond engagement rings, including platinum diamond engagement rings, and white gold diamond engagement rings.
These rings will be extremely affordable and very well priced in relation to their quality and craftsmanship.
They will be sold on our retail diamond and jewelry website at www.exceldiamonds.com.
For more information please contact us directly at 866-829-8600
Here is some eye candy of a few of these stunning diamond rings!
Judah
Diamond Fluorescence Revisited: What Consumers Need to Know.
We have recently received many questions from consumers pertaining to the effects of fluorescence on a diamond's face-up appearance. There is still much confusion, uncertainty, and just plain mis-information being disseminated by fellow tradespeople as well as "internet forum lay-experts" on this subject. Fluorescence in diamonds is mistakingly thought to be all bad. This is not the case.
We therefore deem it helpful to all of you consumers to once again post a link to THE definitve study done on this subject back in 1997 by GIA scientists. This experiment is an excellent case-study on how to properly conduct a study with proper scientific protocol and procedure and will certainly bring particular joy and satisfaction to Engineers and fellow scientists for the way this experiment was conducted.
The results obtained by GIA scientists will startle and surprise you.
The link is HERE:
1997 GIA Study on Fluorescence
Diamond Education: Why Lab Report "Numbers" Don't Tell You What You Need To Know
Consumers are constantly asking for assistance on whether they should purchase a diamond based on the "numbers" provided by the diamond lab grading report. The two best diamond grading labs are the GIA and the AGS, noted for their accuracy and consistency.
While the diamond lab grading report is very useful, it does not give the entire story and it is helpful to get additional information that analyzes the level of Cut precision and light performance of the diamond. Two current technologies that provides these assessments are the Megascope Proportion Analyzer for Cut and the Brilliancescope for Light performance.
To illustrate this point we have attached data from two diamonds: A .78 carat GIA graded EX-EX "Ideal Cut", the second is a 1.51 carat GIA graded diamond that has a Table percentage that is greater than its Depth percentage, a situation that in many instances can lead to significant light leakage out of the diamond instead of light being maximally refracted to your eye. In the trade this type of configuration is known as a "fish-eye".
The results shown below are opposite to expectation. The EX-EX Ideal cut diamond displays poor to mediocre light performance as measured by the Brilliancescope whereas the diamond with the 'poorer' numbers displays excellent and evenly distributed light performance.
.78 Carat Excellent-Excellent "Ideal" Diamond graded by GIA.
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1.51 carat non-Ideal Cut diamond graded by GIA. Note the significantly better light performance of this diamond compared to the "Ideal" Cut above.
It is important to note that the round brilliant shape consists of 58 facets and their cut angle, size, and proper alignment critically impacts visual beauty and light performance. The "numbers" on a diamond lab grading are averages only and do not address facet alignment.
For those consumers shopping for diamonds on Internet websites and not physically able to examine the stones, the more information you get, the better purchase decision you will make.
Do You Have $300,000 Handy? Then This Watch Is For You!
Sotheby's will put one of the most important double-dialed pocket watches ever manufactured onto the auction block at its "Important Watches and Wristwatches" sale May 16 in Geneva.
The George Thompson pocket watch by Patek Philippe is a minute-repeating pocket watch made for Thompson in 1914. The piece features two dials displaying perpetual calendar, moon phases and split seconds chronograph with register. The timepiece is expected to fetch $300,000 to $450,000 when the gavel falls.
Only $300,000-450,000!
"Complicated double-dialed watches by Patek Philippe are exceptionally rare and little more than a handful are known," Alexander Barter, head of Sotheby's Geneva watch department, said in a release issued Friday. "The George Thompson watch, which remains in outstanding condition, retains its original wooden fitted presentation case and certificate and is offered by the direct descendants of George Thompson, an Anglo-American press editor who made his career in the United States. We are delighted to be offering for sale this historic and important watch, 92 years after its original creation."
Gold Vanishing In China!
Kyle Bradisher reports in yesterdays New York Times that China has such a huge stash of other countries' money that it could, in theory, give bonuses equaling half a year's wages to all 770 million of its famously low-paid workers.
China will soon release statistics showing that it has passed Japan as the biggest holder of foreign currency the world has ever seen. Its reserves already exceed $800 billion and are on track to reach $1 trillion by the end of the year, up from just under $4 billion in 1989. But China has held a similar position before.
The current pile, much of it invested in U.S. Treasury securities or mortgages on American homes, is a result of China's selling more goods than it buys and of foreign money pouring in for the building of factories, apartment towers, office buildings and shopping malls.
China is not alone; oil exporters are also piling up cash and trying to figure out what to do with it, leading to disputes like the current one over the Dubai company DP World's designation to run cargo terminals at U.S. ports.
History offers parallels to the yawning U.S. trade deficit and the resulting accumulation of dollars in China. China sells to American companies almost six times as much as it buys from them, but this is not the first time China has been an export powerhouse. Ancient Rome, for example, found that it had little except glass that China wanted to buy. Nearly 2,000 years ago, Pliny complained about the eastward flow of Roman gold along the Silk Road in exchange for Chinese silk.
Long-distance trade collapsed during the early years of the Dark Ages. But through the next several periods of rapid growth in international commerce - from 600 to 750, from 1000 to 1300 and from 1500 to 1800 - China again tended to run very large trade surpluses. By 1700, Europe was paying with silver for as much as four-fifths of its imports from China because China was interested in little that Europe manufactured.
A longstanding mystery for economic historians lies in how so much silver and gold flowed to China for centuries for the purchase of Chinese goods yet caused little inflation in China. Many of China's manufactured goods remained much cheaper than those from other countries until the early 1800s, despite the rapidly growing supply of silver in the Chinese economy. One theory is that Chinese output was expanding as fast as the supply of precious metal. Another is that the Chinese were saving the silver and gold, not spending it.
The same phenomenon has appeared today, as dollars inundating China have resulted in practically no increase in prices for most goods and services - although real estate prices have jumped in most cities. China has an even easier time preventing domestic prices from rising now because modern banking techniques let its central bank buy up the dollars and take them out of everyday circulation. The central bank has accumulated the country's immense foreign-currency reserves in the process.
The British Empire in the 19th century worked out a way to maintain a large long-term trade surplus with China. So far, however, nobody has suggested that the United States also try getting millions of Chinese people addicted to imported opium.
What would Confucious say? Probably too busy counting.
Important New Website Launched by Jewelers Security Alliance.
The Jewelers Security Alliance (JSA) has launched an online stolen jewelry website clearinghouse for the industry and consumers. Consumers and industry members can report stolen goods on the website by filling out an online form.
Users may also fill out an incident report online, browse security advice, and stay current with the latest crime spree news from across the United States.
The website also offers the alliance's "most wanted" criminal list for which there are eight mug-shots at this time. The JCK Industry Fund provided a grant to fund the website.
Report Your Stolen Diamonds and Jewelry Here
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The Boys Of Summer Are Back!
Gold Price Supported by Indian Marriages.
With Indian wedding season imminent, recent high volatility in gold prices has not prevented physical buying, rather it has deferred it as many families agree to wait for purchase of gold for dowries until market stabilizes, says Societe Generale. "The postponed purchasing is unlikely to prompt a rally of any note but will certainly help to cushion the market as prices stabilize."
Purchase of gold for weddings can vary between 50%-70% of total gold demand in any one year, dependent on monsoon season which governs rural incomes and gold price.
This dowry payment delay might be enough to give the Groom a "headache" on the Wedding Night.
U.S. Family Income Declines. Effects On Diamond Sales.
While price hikes (due to surging oil prices) impacted consumer pocket books in 2005, the Federal Reserve said families in the United States were already experiencing a drop in incomes one year earlier.
The Federal Reserve publishes its Survey of Consumer Finances every third year, and it drew 2004 comparisons to income rates in year 2001. The average family income in the United States fell 2.3 percent in 2004. The average family net worth rose at a slow pace, due in part to higher real estate values and not due to cash on hand or stock investments.
The average family income in the United States was $70,700 for 2004, with the median (half above and half below) figure was $43,200, an increase of 1.6 percent from year 2001.
Average net worth rose 1.5 percent to $93,100, or 9 percentage points less than the rise in 1998 to 2001.
With diamond and jewelry prices going up, consumers may look for better cut, lower color/clarity combinations in order to maintain carat weight.
Custom Diamond Engagement Ring By ExcelDiamonds.com
Hi everyone!
Here is a stunning custom diamond engagement ring that we just completed in our factory for one of our customers.
The center diamond is our gorgeous SuperbCert Super-Ideal Cut Hearts & Arrows Round Diamond! Specs are: 1.62 I Color (can you believe that!...it faces up soo much whiter), VS1 Clarity.
The custom mounting was done in 950 pure platinum with a matching diamond eternity wedding band.
Side diamonds are approximately .04 carat each, F Color and VS Clarity.
These diamonds have exceptional cut quality, color, and clarity!
Here are some pics. WHICH DO NOT REALLY DO ANY JUSTICE TO THE ACTUAL BEAUTY OF THIS DIAMOND ENGAGEMENT RING.
Enjoy!
Judah
