Diamond News Archives
Diamond & Jewelry Holiday Sales Figures
The Rapaport Report, a Diamond industry weekly newsletter, today reports that overall US Holiday retail Diamond and Jewelry sales were below projections.
Breaking down the numbers reveals that Brick & Mortar shops struggled whereas internet vendors reported surging sales compared to last year's Holiday Season.
The New York Times reported on
December 28 that Some retailers including Tiffany, Chico's and T.J. Maxx
might soon lower their projections for the fourth quarter.
Wal-Mart, the largest US retailer, yesterday reported
predictions that its sales would be in the middle of its revised
holiday numbers, that is, 1% to 3% up. Wal-Mart originally predicted a
larger increase, but the $256 billion chain reported poor results over
the post-Thanksgiving shopping period, and some analysts were worried.
They were relieved to hear yesterday's predictions.
In contrast, online retailer Amazon.com Inc. has reported a busy
holiday season and claimed a one-day retail record of 2.8 million
orders (the actual day was not specified).
Amazon said that diamonds of
all sizes were popular in earrings, pendants and bracelets. Other top
selling jewelry items included sterling silver blue topaz earrings,
Paris Hilton's sterling silver and Swarovski Crystal heart pendant on
a satin cord (16 inch), Paris Hilton's sterling silver and Swarovski
Crystal Star hoop earrings, and a floating heart pendant with diamond.
Holiday Season Retail Sales Growth:
Recent retail sales indicators show that while sales volumes have been
solid this holiday season they have not been exceptional.
The International Council of Shopping Centers (ICSC) and UBS's weekly
chain store retail index released on December 29 showed that rose 2.7%
in the week ended December 25 from the previous week, while sales rose
4.3% compared to the previous corresponding period.
UBS said it expected same-store sales, or sales in stores open at
least a year, to be flat at department stores. Overall, high-end
stores, such as Nordstrom, Neiman Marcus and Saks Fifth Avenue are
expected to outperform the sector.
According to some analysts, large U.S. retailers have had
disappointing holiday sales and are hoping to recoup some of their
losses during the January clearance sales.
E-tailers, on the other hand, faired the best. Industry consultant
comScore Networks projected that online shopping during the holiday
season would grow more than 26% to around $15.5 billion compared to
last season. The Jewelry sector showed the most dramatic increase year over year.
Diamond Prices Going Up - Again!
DeBeers announced this week that there would be a 3 per cent across the board price increase of the diamond rough being offered to their siteholders at this months (January) site. Prices have thus been increased by approximately 30% since January 2004. This latest price increase of diamond rough will translate into an increase in the cost to consumers for diamonds ranging from .60 carats and up. Higher colors and clarity grades may increase to a greater extent due to a shortage of high-quality diamond rough.
DeBeers explained that the price increase was necessary in order to achieve a "re-balancing" due to the weak dollar.
Ok, now I don't feel guilty anymore. I will take this lesson in economics and use it in my personal life. No more angst at gaining weight, battling to stay with the diet and worrying about losing the battle of the bulge...no siree. I'm hoisting my double chocolate Twinkie and proclaiming:
I'm "re-balancing" and proud of it!
What's up With Zales Diamonds?
I've been reading lately about all of the new initiatives in the works for the Zales Diamond and jewelry chain; North America's largest diamond and jewelry retailer.
The company has opened almost 120 jewelry stores thus far, have 50 additional units slated to open by mid-2005, and an additional 50 for 2006. Eventually, they hope to have 300 jewelry stores nationwide.
What I don't understand is how and why they are doing this given their recent and much publicized declaration of a $10.9 Million dollar net loss for the fist quarter, up from $9.2 Million in the same period a year earlier?
My guess is that they are losing alot of business to online diamond and jewelry merchants who are offering significantly higher quality jewelry at better prices. Also, many brick and mortar specialty retailers of fine jewelry are catering to the savvy shopper who wants better quality diamonds and jewelry.
I would think that in order to stay competitive as a leader in the jewelry industry they (Zales) would be better served to focus on selling better quality ideal cut diamonds and jewelry instead of looking to open more stores selling the same commercial quality diamonds and jewelry that they have become synonymous with.
Just my two cents.
Diamond Prices Update.
Last week's DeBeer's site was one of the largest of the past year and valued at approximately 750 million.
Site holders reported that prices were increased by 3-4 % across the board with greater price increases for larger diamond rough of 3 carats
plus. Site holders also reported that they will have to increase their prices for the polished goods from 3-6% in order to maintain profitability.
Retail consumers can expect to see these increases on diamonds from .75 carat and up very shortly.
Diamond and Jewelry Online Holiday Sales Surge!
Comscore.com reports that On-line Holiday sales significantly increased in 2004 to a record 117 Billion! This is an impressive 29% increase over 2003.
The link is here:
Lifegem Diamonds...For the Love of Your Life!
Are you looking for a memorable Diamond Gift?
Look no further, here it is.
This website manufactures the "Lifegem Diamond".
"What is the Lifegem Diamond," you ask?
Here is what they say:
What is a LifeGem?
"A LifeGem is a certified, high quality diamond created from the carbon of your loved one as a memorial to their unique and wonderful life.
The LifeGem provides a way to embrace your loved one's memory day by day. The LifeGem is the most unique and timeless memorial available for creating a testimony to their unique life.
We hope and believe that your LifeGem memorial will offer comfort and support when and where you need it, and provide a lasting memory that endures just as a diamond does. Forever."
Rod Serling, where are you?
Diamond Retailers Battling Shrinking Diamond Margins
Just read an interesting article on shrinking retail margins for Brick and Mortar diamond retailers.
Overall gross margins for the diamond industry are only down slightly from last year to this year. However, gross margins for diamond jewelry sank from 51.6 percent in 2002 to 48.9 percent in 2003, while margins on loose diamonds dropped nearly 8 percent, from 47.4 to 39.7 percent in 2003.
The article asserts that diamond retailers are faced with the pressures of a tough economic climate and greater competition, especially from diamond internet vendors. The rise in wholesale costs of diamonds and the prices for diamond rough (14 percent higher in the first half of 2004 than in the previous-year period) have also contributed to this climate.
Many independents are also hurting from the fact that their diamond suppliers and diamond wholesalers are offering their listings to diamond e-tailers who have a clear edge since they can afford to sell their virtual inventory of diamonds for a few percentage points above cost - unthinkable for a brick-and-mortar operation.
So what are the jewelry stores doing to combat its margin problems?
Some diamond companies are going back to the basics and preaching old-fashioned customer service, and the benefits of owning diamond inventory rather than having it on memo.
Zales Diamond Corp. launched a purchasing initiative last year, buying loose diamonds and mountings separately and assembling solitaire rings, diamond rings, and diamond pendants in house. This tactic should help them reduce their up-front costs.
The shrinking margins have also given new life to the debate over diamond branding, like recognized brands such as Hearts on Fire Diamonds, SuperbCert Diamonds, Tiffany Diamonds, Lazare Kaplan Diamonds, et. al.
Retailers are acknowledging that the only way to compete in todays diamond market is to offer a private label, higher quality diamond. Consumers are becoming more eduacated about the 5 C's to pay top dollar in a local jewelry store for a poor quality diamond.
Friedman's Jewelers Files Chap 11.
Rapaport Trade Wire reports today that Savannah-based fine jewelry retailer, Friedman's, Inc. has filed for bankruptcy under Chapter 11 for itself and nine of its subsidiaries.
Lenders reduced their cash flow to the struggling
company, after delayed inventory shipments caused the company to fail
to meet its minimum sales goals. Friedman's was left with no option
but to file for bankruptcy.
The company said the filing should provide it breathing room necessary
to complete financial restructuring initiatives it embarked upon more
than five months ago.
Friedman's began as a small, family owned retailer called Friedman's
Jewelers in 1920 which went on to become a publicly traded company
with 653 stores across the Southeast, Mid-Atlantic and Midwest with
roughly 4,000 employees.
GIA's New Diamond Cut Grade System: Highlights.
GIA's new Diamond Cut grading system due out in mid 2005 will consist of five grades for overall Cut quality, which will encompass seven separate components:
1. Brightness
2. Fire
3. Scintillation
4. Weight
5. Ratio
6. Durability
7. Polish and Symmetry.
The lowest result from any of the seven components determines the overall Cut grade.
GIA defines scintillation as flashing spots of light that are seen as the diamond, observer, or light source moves. The pattern ,size, and contrast of bright and dark areas are noted.
Design and Craftsmanship includes considerations of unbalanced weight between the Upper and lower sections of the diamond, extremely thin girdles, shallow crown and pavillions, Polish and Symmetry.
Diamonds within each Cut Grade may still "look" different due to their individual facet angle, facet size, and facet alignment and placement.
Price Increases in Diamond Rough Impacting Retail Diamond Prices.
Rapaport's trade industry web-site reports this morning that the price of rough diamonds has risen 15% in the last six months putting increasing price pressure on retail diamond prices. This is further exacerbated by the current dearth of high quality diamond rough.
At present on the market, D-E-F color; VVS-VS Clarity Round Brilliants from 1.25 to 3.0 carats are scarce and commanding premium prices.
Friedmans Receives $$ Bailout for their Chap 11 Reorganization.
Trade sources report this morning that jewelry retailer Friedman's Inc. announced January 24 that it had received interim court approval to borrow up to $40 million of a total of $150 million in financing from Citibank.
Friedman’s will use the funds to repay its pre-petition revolving credit facility, to purchase inventory and for general corporate purposes. A final hearing on access to the remaining sum is scheduled for February 18.
The Company also announced that during the first day of hearings, it had received approval to pay pre-petition employee wages, salaries, workers' compensation, health benefits, life and disability insurance during its chapter 11 restructuring.
Consumer Confidence Up.
The Conference Board said January 25 that its Consumer Confidence Index, which improved in December after dropping for four months in a row, edged up 0.68% to 103.4 (1985=100) in January.
"Despite the slight retreat in expectations, consumers' short-term outlook remains favorable and suggests the economy will continue to expand throughout the first half of this year," said Lynn Franco, Director of the Conference Board's Consumer Research Center.
Consumers' overall assessment of current conditions improved in January as did their outlook on employment opportunities.
Jewelry Compliance V: Patriot Act in Effect for Diamond Industry.
William D. Langford Jr., associate director for regulatory policy at the U.S. Treasury's Financial Crimes Enforcement Network (FINCEN). has announced his Department's final rules to extend the 2001 USA PATRIOT Act's anti-money laundering (AML) and terrorist-financing rules to dealers in precious metals, stones and jewels. These regulations oblige most businesses or individuals with $50,000 or more a year in gross proceeds to develop a written AML program based on an internal risk assessment. The purpose of this program is to prevent exploitation by those with criminal intent to use our industry to launder illegal funds. There will be a period of six months for companies to come into compliance.
Congress has identified the jewelry industry as a trade susceptible to money laundering. The JVC (Jewelers Vigilance Committee) has worked closely with Treasury and FinCen to communicate the jewelry industry's needs and to develop guidelines to help jewelers develop effective AML programs.
Ekati Diamond Mine Yield is Down.
Trade Wire today reports that Canada’s Ekati diamond mine produced 4.1 million carats for the year ended December 31, 2004, a decrease of 27% on the previous year, said BHP Billiton in a press release on January 27, 2005. The decline in Ekati’s production output was attributed to processing of lower grade ore during the period.
The Ekati diamond mine was Canada’s first diamond mine and is BHP Billiton’s sole producing diamond mine asset. Ekati is located approximately 300 kilometers northeast of Yellowknife and 200 kilometers south of the Arctic Circle in Canada’s Northwest Territories, Canada. The mine is a joint venture between BHP Billiton Diamonds Inc (80%) and geologists Charles E. Fipke and Dr. Stewart E. Blusson (10% each).
DeBeers Reports Record Diamond Profits.
Analysts have predicted that De Beers Diamond Trading Company (DTC) 2004 sales will total a record $5.96 billion, up 8% from $5.518 billion in 2003, Business Day reported January 26.
DeBeers diamond output is up 4% from the previous record production of 43.947 million carats in the 2003 year.
The sales increase is the result of higher diamonds prices and increased production, Business Day reported. However, the analysts said De Beers' revenue gains would have been eroded by the strength of rand and the currencies of Botswana, Namibia and Tanzania (where De Beers operates diamond mines) against the U.S. dollar.
AGS Diamond Labs To Issue Cut Grade For Princess Cut Diamonds
The AGS (American Gemological Society) has recently announced that they will be issuing an in depth diamond cut grading report for Princess cut diamonds in the near future. This will be a performance based cut grading system that will evaluate light performance.
Princess cut diamonds have until very recently been cut for maximum weight retention that resulted in glassy and dull stones.
Many companies today are offering new types of diamond shapes that look similar to a Princess diamond, but critically differ in that they have tapered corners. This is done for the purpose of minimizing light leakage through the four pointed corners that is a given for this shape. Examples of these kind of diamonds are the Tiffany Lucida, The Jubilee Diamond by Horowitz & Atlass, and The Dream Diamond by Hearts on Fire.
In an effort to stand out from the pack, develop a niche, and maintain profit margins, an increasing number of jewelers have embraced the concept of "Branding". Diamonds with unique facet patterns and shapes, or additional numbers of facets with accompanying marketing material are being strongly promoted. One problem, however, may be their lack of staying power.
These "fad" diamond shapes with romantic names and marketing are here today...and may be gone tomorrow; replaced by a newer generation X version with different name and promotional material.
An example of this may be the newest "Jubilee" diamond launched this year by Horowitz & Atlass. The Jubilee Diamond is currently being touted by it's manufacturers as a superlative "modified" square diamond and is the newest version of its immediate predecessor the "Queen of Hearts" Diamond (same manufacturer) which was heavily promoted as recently as a few months ago as being the best of all modified square diamond shapes.
The "Queen of Hearts" diamond, in turn replaced the "Regent" cut diamond (same manufacturer)which at it's inauguration was marketed as the best modified square shape diamond.
1. Generation A "Regent Cut" Diamond by Horowitz, Atlas
2. Generation B "Queen of Hearts" Diamond (Same manufacturer)
3. Generation C "Jubilee Cut" Diamond (same manufacturer)
Can you tell the difference?
The above graphic clearly highlights one problematic derivative of the jewelers "Branding" game for consumers: What happens to the Re-sale value of their "branded" diamond and to their Upgrade policy should they decide to move up in value if the "Brand" does not find a strong market niche or lags in popularity?
Indeed a consumer is asking this very question today on one of the diamond internet forums. Click to view:View image
For this reason the industry is now challenged to address the issue of figuring out how to keep the 4-point Princess cut diamond shape and to maximize it's light performance and beauty.
Some companies have already addressed this issue, and are sticking to the basics and maximizing on the beauty of the classic princess cut diamond square shape. Read more here.
Gemex (BrillianceScope Mfgr.) And EGL USA Join Forces For Grading Reports
Starting in September Gemex Systems (Manufacturer of the BrillianceScope technology for diamonds) and EGL USA (European Gemological Laboratory) will be joining forces to provide a combined diamond grading report to diamond customers.
The joint diamond report will evaluate, identify, and certify both the four C's of a diamond provided by EGL USA, as well as its light performance, as measured by Gemex's computerized BrillianceScope technology to measure a diamonds level of brilliance, fire, and sparkle.
DeBeers Heading to Canada, Big Time!
De Beers plans to spend nearly $2.01 billion exploring for diamonds in Canada over the next five years and building mines if the search is successful, said John McConnell, the company’s vice president of projects in Canada's Northwest Territories, as reported by Reuters News Agency on January 27.
Big Flawless Diamonds Found!
Rapaport Trade Wire reports that four giant diamonds weighing 366 carats and worth over $6 million have been discovered in Lesotho, a tiny kingdom encircled by South Africa.
The four flawless diamonds were found at Lesotho's Letseng Diamond Mine in the Maluti mountains in the last six days.
"Each one is of the highest quality... flawless," mine chief executive Keith Whitelock said, adding that he expected the stones to fetch a minimum of $6 million when sold because "there is a worldwide shortage of large, high-quality stones."
Letseng was officially opened last year with the investment from South African businessman Brett Kebble's mining finance company JCI.
GIA To Present Information on their New Diamond Cut Grade at Tucson
GIA will present more information and details about their forthcoming Diamond Cut Grade at this weeks Tucson Gem Show.
Two presentations will be held.
The first presentation is at the Accredited Gemologists Association (AGA) Tucson Conference, Feb. 2 from 8:30 to 11 a.m., at the Marriott University Park, 880 East 2nd Street. GIA Research Associate Al Gilbertson and Ilene Reinitz, manager of Research and Development at the GIA Gem Laboratory in New York, will provide an in-depth overview of the research that went into the forthcoming GIA Diamond Cut Grading System. They will also explain the cut-quality components incorporated into the system and discuss the planned software and other support products GIA is currently developing.
The second presentation by Al Gilbertson and Barak Green, manager of Laboratory Communications for the GIA Gem Laboratory, will be a briefing on Feb. 6 from 1 to 2 p.m., in the Tucson Convention Center’s Coconino Room. A quick recap of the diamond cut research will also be given.
We'll be covering the highlights here on DiamondVues as they become available. Stay tuned.
DeBeers To Review It's SightHolder List, Again.
GIA newsletter reports today that De Beers Diamond Trading Company (DTC) will announce a new round of potentially far-reaching changes in its sightholder roster in July, said De Beers Managing Director Gary Ralfe in an address to clients Jan.12.
Under the company’s Supplier of Choice program, every client must reapply for sightholder status every two years. In addition, companies that previously failed to make the list, as well as other diamond dealers and manufacturers, are invited to apply.
High on the DTC’s priority list will be manufacturers from producer countries South Africa, Botswana, and Namibia. Ralfe called on clients to “help build viable, non-subsidized cutting industries that can compete with established cutting centers elsewhere.”
The DTC caused a furor late in 2003 when it announced that it would cut one-third of its clients beginning with the Jan. 2004 sight.
In addition, Ralfe stated that the DTC was taking “appropriate measures” to guard against “unlawful exchanges of data” – particularly prices – by companies or individuals with diamond mining interests. The policy is meant to exclude diamond manufacturers with substantial mining operations who, in the DTC’s view, may gain access to proprietary data.
DeBeers also stated that it was in no hurry to do business in the United States, a counter salvo to several companies that have recently filed lawsuits against DeBeers for the SOC program and claims of Monoply and unfair business practices.
DeBeers Retail Diamonds and Jewelry Coming To New York
DeBeers and LVMH are planning on opening their first retail store in New York by this coming June. Another Store is planned for Los Angeles in October as reported by South Africa's Business Day. This comes in spite of lagging sales in both their London and Japan stores.
De Beers and LVMH joined to form De Beers LV. The company has recently seen the departure of its CEO, its top designer, and icon and supermodel Iman. Under a 10-year plan, approved by De Beers and LVMH, De Beers LV would strive to emerge as the leader in the top-end fine jewelry and diamonds.
These retail stores are in line with DeBeers Supplier of Choice program that was implemented two years ago amid much criticism from siteholders and is designed to install vertical integration from manufacturing to retail end-consumer sales within each company. Siteholders are now required to market and advertise effectively in order to retain membership status with DeBeers.
On Line Diamond and Jewelry Sales Lead Holiday Growth
Modern Jeweler reports that this Holiday Season was better for the clicks (e-tailers) than the bricks (jewelry stores). Consumers bought a staggering $1.9 Billion in jewelry on line this year, a 113 percent increase over the 2003 holiday season, according to a survey by Nielsen/NetRatings, Goldman Sachs, and Harris Interactive. According to the survey, on line sales in general were up 25 percent to $23.2 billion.
The holiday selling season was a roller coster ride for most traditional retailers: initial euphoria, then panic, followed by relief, as a strong final week brought most sales totals to a slight gain over last year. Growth estimates ranged from 2 to 4 percent by most forecasters. Good, but not great.
Newspaper Raises Claims of Doggie-Doo Diamonds!
The Weekly World News, a publication known for its imaginative reporting, recently claimed that a diamond company is making diamonds from "dog poop".
As there are now companies that are indeed making diamonds from human remains, it is gemologically possible says Gary Roskin of the JCK that a company could produce diamonds from doggie doo. Still, given this particular papers track record and the fact that the company they mention; Caninegems could not be located I would seriously find this very hard to believe!
"Diamond Brands" Discussed at Conference
Beth Braverman of the National Jeweler reports on the topic of diamond branding recently discussed at the NJ seminar.
Read our Blog on Diamond Branding for our completely different perspective on this issue.
Diamond and Precious Metals News: Week In Review. 2/4/05
Rapaport Trade Newsletter reports this morning that U.S. retail jewelry demand is steady with much stronger demand for
better quality merchandise. Jewelers expecting strong sales this upcoming week leading up to Valentine's day on Saturday February 12th.
The Fancy Diamond shape market is improving with scarcity of two carat and
larger, good shape, well cut, medium to better quality, I+, SI1+. Princess cuts very hot, especially in SI qualities.
Cushions very strong across the board in 2ct.+. Heart Shapes surprisingly are making a very strong comeback. This shape has been dead for the past several years. Pear Shapes and Ovals selling very well.
There are shortages of larger, 2 ct.+ fine cut D-G, VS2-SI1's diamonds in all shapes, especially round brilliants.
Oversizes, e.g.; 1.25-1.49 carat, 1.60 to 1.99 carat in colors D-H and Clarities of VVS to SI-2 in fine Makes are in very high demand but limited supply and bringing significant price premiums. Shortages in these categories are expected to continue over the next several months.
Gold took a hit on Thursday 2/3/05, closing at $416.00 as speculation that IMF gold sales to fund third world debt clearance could come sooner rather than later, combined with Wednesday’s interest rate increase by the Fed. Long positions got spooked and triggered a sell-off to a 3-month lows for gold.
Platinum came along for the down ride losing $7 and closing Thursday 2/3/04 at $863.00. It has rebounded this morning to $868.00.
Platinum Jewelry in high demand.
Diamonds On The Moon? You Bet!!
Reuters News Service reports this morning that several planets in our galaxy could harbor an unexpected treasure: a thick layer of diamonds hiding under the surface.
Princeton University astronomer Marc Kuchner said in a telephone news conference that though no diamond planet exists in our solar system, some planets orbiting other stars in the Milky Way might have enough carbon to produce a diamond layer.
Carbon planets might form more like some meteorites than like Earth, which is believed to have condensed from a disk of gas orbiting the sun.
Dwindling supplies of high quality diamond rough here on Earth may now be looked at by the light of the Moon.
DeBeers Will Raise Diamond Rough Prices in 2005, Set Record Sales in 2004.
Reuters and South Africa's Mining Weekly report this morning that DeBeer's is poised to further increase diamond rough prices in 2005 after significantly increasing prices by approximately 15-20% in 2004 and setting record sales for the year.
The world's biggest diamond producer, De Beers, is expected to have raised sales by 4.7%, to $5.76-billion, in 2004 thanks to higher prices and growing demand, these analysts said.
This was the average forecast of five analysts surveyed by Reuters, whose estimates ranged from $5.74-billion to $5.8-billion, compared to last year's $5.5-billion.
De Beers, 45%-owned by diversified mining group Anglo American, announces its 2004 results tomorrow.
"I think (the year) will definitely be better than consensus; we have already seen how well other luxury goods groups have done," said a fund manager.
Last week, Italian jeweller Bulgari said it met its 2004 sales forecast thanks to a 10.5% jump in the Christmas quarter.
De Beers said last month it expected global demand for diamonds to have grown at least 5% to 6% in 2004 and will focus on driving jewellery sales higher again this year.
"In 2002, we saw a 2% increase in consumer demand worldwide, in 2003 a 4% increase, and in 2004 we are hopeful of seeing a figure of 5% or 6%, or even higher," said Gareth Penny, managing director of De Beers' Diamond Trading Company (DTC).
DTC, De Beers marketing arm, said last August it had raised rough diamond prices by an average of five percent after recording a 7% rise in sales during the first six months of the year.
The August hike followed price increases of 3% and 5% in January and March, respectively.
"The fact that they could hike prices this much, a lot higher than global inflation, is a sign of good times for them," the fund manager said.
The firm, which controls nearly half of world diamond supply, said consumer confidence had increased and economic conditions were positive suggesting continued strong consumer demand in the second half of the year.
"They have managed to put through some increases during 2004 and I think they will be able to do more in the new year," a London-based analyst said.
The firm is also expected to address the impact of the buoyant rand on its Southern African operations, which employ more than 10 000 miners.
De Beers mining projects and explorations projects in Canada will see spending of nearly C$2.5-billion over the next five years.
What this means for you, The Consumer is: Fasten your Seatbelt, higher prices for beautiful Bling-Bling and a lighter wallet are coming to you later this year!
Stuart Weizman Diamond Shoes Correction
I got a call yesterday from Jane Weizman of Stuart Weizman designer shoes. She was pretty upset about a recent blog entry of mine where I indicated that Actress Halle Berry would be wearing $ 1 million dollar diamond encrusted shoes by Stuart Weizman at this years Acedemy Awards in Los Angeles. The information was taken from Rapaport news as well as from ">Contactmusic.com
This information has been erroneously reported on the internet. Stuart Weizman will not be showing $ 1 million dollar shoes at this years Acedemy Awards in Los Angeles.
I also note that Rapaport this morning has made a similar correction regarding this misinformation.
Diamond News: Week In Review. 2/11/05
U.S. trading markets steady with strong sales in diamonds and jewelry for Valentine's Day. Pearl Jewelry hot with pendants and necklaces leading the way.
Gold holding steady at $418.30 after dipping earlier in the week and testing support levels at $411.00. Platinum holding steady at $871.00
DeBeer's reported record sales for 2004 and indicated that there will be further prices increases for diamond rough later in 2005. This will translate into higher prices for polished diamonds with continued scarcities in larger carat sizes and higher color/clarity combinations. Manufacturers expect that I-J-K color and SI-1 to SI-2 clarities in better makes will thus become more attractive purchase candidates by consumers.
Antwerp Diamond Industry Increasing Security.
Antwerp's Diamond Community and the Belgian Government are joining forces to significantly increase security in their Diamond District amid increasing threats and fears of terrorist activities.
Belgium's Prime Minister, Guy Verhofstadt, along with other key officials have signed a Declaration of Intent at HRD headquarters in Antwerp, Belgium, to boost security measures. The urgency for tight security at Antwerp's diamond quarter follows specific threats made against the diamond trade and the real potential of terrorism.
Local crime is high and needs to be addressed. In 2003, a robbery took place in the vaults of the Antwerp Diamond Center, and robbers made off with $127 million of merchandise.
According to Hubert Appelen, head of HRD's Diamond Office an
Logistics Department, which also is responsible for the diamond quarter's security system. "The 2003 robbery only underlined the urgent need for a new, more effective security program for the Antwerp Diamond Community".
New security measures which include restricted access from the neighboring shopping malls and state of the art security cameras will be implemented.
DeBeers To Stay In London
De Beers has no plans to move its marketing arm, the Diamond Trading
Company (DTC,) from London to South Africa.
South Africa's mining minister Phumzile Mlambo-Ngcuka told the press
on February 7, that she contacted DTC about relocating offices from
London to Johannesburg to promote industry growth. Gareth Penny,
managing director of the DTC, said such a move was not feasible.
De Beers' managing director Gary Ralfe said, on February 9 that De
Beers was a global business with a global business model. He added
that De Beers was "very sensitive to the needs of the company's
government partners in southern Africa."
Siteholders can continue to maintain that stiff upper lip.
Cheers!
Tiffany To Open In Brisbane, Australia.
Tiffany & Co., will open a store in Brisbane, Australia, in 2005. The company announced its plans on February 11, in a statement showing the location would be on the ground floor of the new Queens Plaza shopping mall in Brisbane.
The store will offer an array of Tiffany collections, including the engagement diamonds and jewels in platinum and 18-karat gold settings; the Atlas jewelry collection inspired by the Atlas clock that is also available in Tiffany’s Fifth Avenue, New York City, flagship store; watches, including the Tiffany Mark; the signature designs of Elsa Peretti, Paloma Picasso, and Jean Schlumberger; sterling silver jewelry accessories, and crystal gifts.
Tiffany also has stores located on Castlereagh Street in Sydney, and on Collins Street in Melbourne.
Wal-Mart and Diamonds Coming To New York?
Retail giant, Wal-Mart Inc., is hoping to open a store within city limits of New York, about as far from downtown as the map would allow, in Rego Park, Queens.
"We are interested in the New York metro market, but nothing is yet signed," a Wal-Mart spokesman said.
On February 10, news agencies in New York reported that Developer Vornado Realty Trust filed a land-use application with the city for a shopping site to include a 132,000-square foot Wal-Mart store in Rego Park. The news reports created a stir with groups opposed to a Wal-Mart store in Queens.
Wal-Mart currently sells diamonds and jewelry in all of it's stores as well as on it's e-commerce website and it's potential entry into the New York market may have a significant negative impact on 47th Street retail dealers.
New York City council member for Rego Park, Helen Sears, said that no deal has been signed. Her constituency "has mixed feelings, but what is important for them is that Wal-Mart must review employee relationships."
Interesting Diamond News From The Middle East.
Precious stones and diamonds topped the country of Lebanon's exports in 2004. The country exported $287 million worth of jewelry in 2004, which represented 16 percent of its total exports of $930 million.
Lebanon’s News Services reported on February 10, that Italy remains Lebanon's main trading partner, accounting for 10 percent of total exports. France, Germany, and China followed Italy on the list of high-value trading partners
Prince Charles Gives Camilla a Magnificent Diamond Ring!
Folks, tis' with a sour taste that I bring you this news since I am no big fan of flower talking Prince Charles, View image or his scary looking bride to be Camilla Parker Bowles. View image
However, news is news and this piece of info. is already causing quite a stir across the world.
It is reported that Prince Charles gave Camilla an incredibly gorgeous diamond and platinum heirloom engagement ring to celebrate their upcoming marriage.
Read more about the history of this dazzling and unique diamond engagement ring here.
Consumers Comfortable Buying Diamonds On-line.
VeriSign Inc., an Internet transaction network, reports that Valentine's Day sales hit $3.9 billion for the first 14 days in February 2005. Company data reflect a 30 percent increase from the same two weeks in 2004.
The strongest growth came from diamond sales at 130 percent ahead of sales in 2004, and the diamond category held the highest average per-ticket-item at $427.
Trevor Healy, vice president of VeriSign said, "With diamonds showing the highest increase in online revenue during the Valentine's Day shopping season, we not only see that consumers are comfortable making big-ticket purchases online, but also buying sentimental and significant items through secured e-commerce sites."
Your Assurance of a Secure and Safe Internet Purchase.
VeriSign processes 37 percent of e-commerce transactions for North America and is used by 127,000 online retailers
Tremendous Demand Forcing GIA Diamond Grading Labs To Expand At Rapid Pace
A Diamond Grader In Action
The Gemological Institute of America (GIA) is expanding both its East and West coast laboratories to meet increased international and stateside demand for diamond grading reports and other laboratory services.
Following a year of planning, construction has begun at the both GIA's headquarters in New York and its laboratory in Carlsbad, Calif. Demands on lab services have shown steady growth, according to a GIA press release, and through aggressive hiring, the institute has boosted the number of personnel handling grading, gemological identification, research, and support to nearly 700 people.
Since 2001, the total number of items processed by the institute's laboratory has increased by more than 20 percent each year, according to GIA Laboratory CEO Thomas C. Yonelunas. In 2004, demand for all GIA labs' diamond grading services rose by 22 percent, GIA Diamond Dossier services demand grew by 49 percent, the need for fancy colored diamond services rose by 28.5 percent, and demand for diamond inscription services rose 35 percent.
"The number of reports generated annually is astounding, and we are constantly searching for ways to better serve our clients," Yonelunas said in GIA's release. He added that the institute has restructured its procedures to ensure greater efficiency, while also investing in staff growth, facilities expansion and infrastructure development to keep pace with rising demand.
When construction is complete, GIA's New York location will have added 11,500 square feet, for a total of 32,500 square feet. Lab space in Carlsbad will more than double, to a total of 85,500 square feet. The multiple-phase remodeling efforts on both coasts are scheduled for completion the end of 2005. In New York, this includes remodeling the education center and adding space to expand the grading laboratory. Renovations of the grading laboratory, research, identification services, and other laboratory-support functions in both locations are also scheduled.
Good news for those of use submitting diamonds for grading as we can expect faster turn-around-time.
Newsweek, Wipe That Egg Off Your Face!
Newsweek magazine's international edition has agreed to post a letter correcting errors in a story on synthetic diamonds both online and in its Feb. 28 print edition, says the letter's author, Jerry Ehrenwald, CEO of the International Gemological Institute, New York City. The magazine incorrectly reported that DiamondView, one of De Beers' two synthetic detection devices, was unable to identify as fake three CVD synthetic diamonds produced by Apollo Diamond, Boston, MA.
In fact, the machine did identify the synthetics, says Ehrenwald, whose lab Newsweek reporter Michael Hastings was visiting when he witnessed DiamondView in action. "DiamondView is a luminescence-imaging instrument, which gives the information required in order to make a definitive identification regarding whether a stone is natural or synthetic," says Ehrenwald. "The stones Newsweek brought to the IGI lab exhibited a strong and characteristic fluorescence reaction during DiamondView testing, which IGI gemologists unequivocally stated 'proved the stones were synthetic.'
"The sensational nature of the article misled readers. In reality, gemologists working at labs and in retail outlets, with both the appropriate detection equipment and level of knowledge, can detect these stones," says Ehrenwald.
In April 2004, De Beers announced it would begin selling its two synthetic detection devices to members of the trade through an agreement with the Gemological Institute of America. In November 2004, the Diamond High Council said at its annual conference in Antwerp that it too would begin selling a battery operated device that can detect synthetics, beginning in April 2005.
Diamond & Precious Metals, Week In Review: 2/18/04
U.S. Valentine's Day sales steady with very strong sales for
high-end and internet retailers. Trading markets are
strong, with scarcity of 2-4ct, I+, SI2+ firming prices, fancy shapes
strong especially in 1-2ct, G-J, SI goods. U.S. 2004 total retail
jewelry sales up 5% to $28.3 billion. U.S. 2004 polished diamond imports are up 14% to $14 billion, rough up 7% to $753 million.
Gold and Platinum prices holding steady and firm at $427.00 and 867.00
respectively.
Diamonds Big Sellers At Christie's Auction on 2/17/05.
Trade Reports this morning announced that Christie's had sales at its Important Jewels auction in New York on February 17 totaling $4.3 million, with 88% of lots sold and 90% of expected auction value. Sales at Christie’s St. Moritz auction held February 16 totaled $12.6 million with 76% of lots sold and 67% of expected value.
Rahul Kadakia, jewelry head for Christie’s Americas, commented that strong sales at both auctions “kicked off what promises to be a great season for the jewelry market.”
Tradespeople and individuals contested for colorless, colored diamonds and stones as well as jewelry pieces.
The top lot was an Asscher-cut fancy brown, VVSI diamonds of 66.43 carats, which was sold to a private US buyer for $419,200. The second top lot was a pear-shaped diamond line necklace of 80.60 carats which sold $307,200. Both surpassed pre-sales estimates.
Despite disappointment at the St. Moritz show that a 63.52 carat diamond was not sold, Eric Valdieu, jewelry head for Christie’s Switzerland, said prices obtained and the levels of activity in the first sale of the year are “a good omen for the jewelry auction market.”
The top lot was a three-stone circular-cut diamonds necklace with a total carat weight of 77.88, which sold to the US trade for $725,470. The second was a cushion-shaped diamond ring of 17.23 carats/H/VS1, which sold to the Swiss trade for $476,581 or $27,660 per carat.
A very good start to the 2005 Diamonds, Gems, and Jewelry Auction Season.
Bangkok Jewelry Show Opens.
The Bangkok Gems and Jewelry Fair opened Monday, with commerce officials trumpeting statistics that show Thailand's 2004 gems and jewelry exports exceeding $2.6 billion, an increase of 5.26 percent over 2003.
Due to strong demand for diamond jewelry in particular, exports to the United States—by far Thailand's biggest market—totaled $718.4 million in 2004, a 16.11 percent increase over the previous year.
These growth figures are very impressive given the Dec. 26 tsunami, SARS and the avian flu, which have plagued this part of the world this year.
The fair, which expanded this year to six days from five days last year, brought about 3,000 exhibitors to the Impact Exhibition and Convention Center in Bangkok, and was expected to draw 30,000 attendees.
The Origins of the Hope Diamond Finally Confirmed
The Hope Diamond
National Jeweler-- Researchers have traced the origin of the Hope Diamond to a 115-carat stone found in India in 1668, and suspicions that the stone had been cut from one of the crown jewels of France, the French Blue Diamond, have been confirmed.
New computer analysis research shows that that stone was sold to King Louis XIV of France who had it cut into the 69-carat French Blue, reports the Associated Press (AP). The stone was then stolen from the country's collection of crown jewels during the French Revolution.
Twenty years later, after the statute of limitations expired, a large blue diamond was quietly put up for sale in London, and eventually Henry Philip Hope purchased it. Eventually the Hope Diamond, which at 45.52 carats is world's largest blue diamond, was donated to the Smithsonian by jeweler Harry Winston.
In tracing the origins of the Hope Diamond, researchers relied on work completed around 1700 by French scientists, who studied several stones from the royal collection to determine their specific gravity and other details. Their analysis of the other stones that still exist was accurate, leading researchers to believe the data on the French Blue was also reliable, according to the (AP). While the French Blue no longer exists, Smithsonian gem curator Jeffrey Post said sketches of it from France were quite detailed, enabling a computer model to be made of the stone
The team of researchers led by Post and Steven Attaway, engineer and gem cutter; as well as gem cutters Scott Sucher and Nancy Attaway, deduced that the Hope Diamond would have fit inside the larger French Blue Diamond, matching its orientation, with the cut indicating that some of the facets on the Hope Diamond still remain from its parent stone.
"This new Hope Diamond research would not have been possible 10 years ago," Post told the AP. "What is exciting is that we are constantly learning new information about our collections as we apply new high-tech research methods. Even the Hope Diamond is grudgingly giving up some of its secrets."
Click here for more info. on the Hope Diamond!
Diamond and Precious Metals Week In Review: 2/25/05
This week saw a major breakthrough and advance for Gold as it surged past the $432.00 resistance level to $437.00 before settling back to $432.00 in late trading yesterday. The week dollar, strong Euro, and rising oil prices to $51.00 a barrel and very strong consumer demand were all contributing factors. Platinum also very strong at $870 with continued strong consumer demand.
In the Diamond sector, trading markets remain very strong with prices firm in larger better cut quality stones in the 2ct+, H+, SI2+ categories. There is also very strong demand for 1-2ct, H-J, SI-1 and SI- 2 goods in better Cut grades.
Good News! Canada To Abolish Jewelry Excise Tax by 2009.
Canada has decided to spur economic growth by announcing that it's 2005 budget will account for reducing the jewelry excise tax from 10 percent to 8 percent effective immediately. The rate will be reduced by another 2 percent each March 1 beginning in 2006 until the tax is eliminated on March 1, 2009.
Jewelers in Canada have lobbied for years to abolish the tax, which has been in effect in some form since 1918. In 1996 the House of Commons Standing Committee on Finance concluded that the jewelry excise tax “unfairly discriminates against the jewelry industry, [it] is an anachronistic vestige of the early 1900s when it was introduced, and should be abolished.”
The proposed rate reductions and their effective dates:
Effective Date
February 24, 2005
March 1, 2006
March 1, 2007
March 1, 2008
March 1, 2009
Proposed Rate
8%
6%
4%
2%
0%
The Canadian Jewelers Association (CJA) stated that the tax “is the only remaining luxury tax in Canada. All other luxury taxes have been repealed.” Jewelry is the most heavily taxed consumer sector in Canada (apart from alcohol, tobacco, and gasoline.) “There is no credible policy reason for singling out the jewelry industry in this way,” CJA said.
This move by the Canadian Government will make the importation of USA diamonds and jewelry even more attractive to Canadian consumers and should result in a stronger presence of the GIA certified diamonds.
Survey Finds Size Matters in Engagement Diamonds.
The 2003 Bridal Fine Jewelry Consumer Buying Survey found that for most buyers carat size is the most important factor in choosing an engagement diamond.
More than 40 percent of survey respondents said they planned to spend $2,000 or more for an engagement diamond larger than 1 carat. A full 25 percent of those polled intended to pay a minimum of $5,000 to get what they wanted.
But size was not the sole determining factor in making a diamond-buying decision. A third of those surveyed said that Cut was their most important consideration in choosing a diamond.
Round cuts remained the most popular diamond shape, with princess cuts the second favorite among potential buyers, according to the study.
Tiffany's Profits Drop in 2004.
Dow Jones reports today that while the net income at Tiffany & Co. nearly doubled in 2004 due to the company's sale of Aber Diamond Corp. shares, profit margins continued to shrink.
Higher inventory costs in the precious metals and diamonds accounted
for the shrinking profit margins.
Other factors affecting gross margins included a shift in sales toward higher-priced, lower-margin diamonds jewelry; weak sales in Japan; and import tariffs on products manufactured in the United States and shipped to Europe. Pearls were the one category that showed growth
and increasing profits.
Diamond & Precious Metals Week In Review: 3/4/05
Diamond prices are increasing but soft U.S. is demand providing strong resistance.
Premium and Ideal Cut stones bringing strong prices. Increased demand for fine-cut Princess cuts in the 1 carat to 1.5 carat sizes. Marquises are making a comeback with strong demand for fine cuts. Supply in this area is limited as kost Marquises have been cut for carat weight retention.
Prices for pear and heart shapes firming in larger, better quality goods (2ct+, G+, SI2+). Ovals are holding steady. Oversizes are in limited supply and bringing in premium pricies over straight sizes.
Gold at $434.30, up $7 for the week and Platinum at $876.00, up $10 for the week. Metals are bullish and poised to go higher in the coming weeks as the combination of the weak dollar, rising oil prices, increasing U.S. trade deficit, and the introduction of metals backed metal traded funds make Gold and Platinum very attractive safe havens for money. Jewelry prices will be affected wit expecte price increases.
Diamonds & Precious Metals Week In Review: 3/11/05
Gold showing tremendous strength and is surging, now at $443.70, up over $14.00 with target of $455.00 within reach, according to Gold analysts. Platinum steady at $868.00.
Diamond trading markets strong with strong consumer demand outpacing supply for larger, better stones in the 2ct+,I+,SI2+ categories.
Princess, Cushion, and Radiant Cuts strong and better make Ovals gaining popularity.
When You Think of Chile, Do You Think of Diamonds?
I bet you answered No .
South Africa, several other African countries, Israel, Antwerp, Japan, and The United States are synonymous with Diamonds, not Chile.
Well, things are a-changing. Chile will be hosting its tenth international jewelry, watch, and precious stones show, Joya Chile 2005, from May 23-26 in Santiago. The show is dedicated exclusively to importers, wholesalers, retailers, jewelers, designers and other industry professionals and is not open to the general public.
It turns out that over the past ten years, very quietly Chile has signed many bilateral and multilateral trade agreements opening up its economy, so that investors now have access to a market of almost 1.2 billion consumers.
Chile has exempted many countries from paying import taxes on any type of gold and silver jewelry set with stones, diamonds or pearls. These countries include Belgium, Germany, Spain, France, Italy, the UK, the US, Canada, and South Korea.
The Chilean government’s recent discounting of tax on luxury goods, including jewelry, from 50% to 15%, signals the beginning of the end of a highly taxed and regulated luxury goods market. Because of this new deregulation, jewelry consumption will increase significantly and formal jewelry imports should climb 20% annually.
Most importantly, this step by the Chilean Governement to open up it's markets in this sector of the economy will no doubt to further deregulation, open markets, and increased commerce.
Good to see.
Diamond & Platinum MP-3 Player!
The CeBIT 2005 technology fair in Hannover, Germany is proving to be a hit with techno geeks who also love their Diamonds and Platinum.
A hit product with attendees is Samsung Corp.'s platinum and diamond MP3 player. Samsung intentionally created the pocket-watch size, 12-diamond music player for those with $1,000 to spend. MP3 players typically cost from less than $100 to $300 depending upon the features.
Besides Samsung's diamond decoration, the player features up to one gigabyte of memory as well as an FM radio and stereo surround sound. With the platinum and diamond exterior, this MP3 player is not likely to be left unattended by its owner.
CeBIT concludes March 16 in Germany, and holds a number of events worldwide during the course of the year.
Diamond Rules Of Engagement
A recent study conducted by the Knot surveyed 1,500 brides to discover what they would consider to be the perfect proposal. The results show that some old traditions are begining to change.
1. Center Stone Size
Sixty percent of women value the diamond size as either most important or equally imortant to diamond quality, while 32 percent say that quality comes first. Twenty-five percent prefer 3 stone rings, while 39 percent say that a solitaire diamond engagement ring is just right.
2. Popping The Question
Over 70 percent believe that the element of surprise is crucial to an ideal proposal, while 20 percent think that it is only moderately important. As far as the location is concerned; 19 percent of brides like landmarks, 14 percent prefer a vacation spot, 13 percent prefer to be asked at home, 13 percent prefer the site of the first date, and two percent like the idea of a proposal flashing across a giant Jumbotron in a sports stadium.
3. Parents
More than 50 percent of the women polled say that it is no longer necessary to ask the brides father for her hand in marriage. However, 47 percent would like the groom to ask the brides father, and an additional 21 percent say grooms should also seek the blessing of the brides mother.
4. On Bended Knee
Forty-six percent believe that getting down on one knee is still crucial to the proposal, while 44 percent say that it's preferable. Just one of 10 brides think that the idea is outdated.
5. Ring Settings
A man who wishes to surprise his bride with a diamond engagement ring should be safe and buy a round or princess cut diamond, say the brides. 50 percent prefer the round diamond and 31 percent like the princess diamond. Grooms should also stick to white metals-86 percent of brides prefer precious platinum or white gold for their engagement ring setting. As far as ring styles are concerned; 50 percent like classic or traditional styles, 27 percent prefer contemporary designs, and 25 percent would like a vintage or antique style engagement ring setting.
What The Heck is a Diamond Cutlet?!!!?
It happens every so often; I'm speaking to a customer about diamonds and he/she asks me about the "Diamonds Cutlet".
It takes all of my energies not to laugh, understanding that it is an honest mistake from a novice.
What really gets me though, are the saavy and educated consumers who call us to talk about our SuperbCert Super-Ideal Hearts and Arrows Diamonds, or the ones who sometimes post on the diamond forums.....
....These guys have really done their homework and armed with knowledge of all the diamond "numbers", BrillianceScope results, Sarin/MegaScope they are ready to tackle the world. They start talking about all of the intricacies of the diamonds cut, angles, et. al.
Then they mention the diamond's "CUTLET"
WHAT????
And I'm thinking to myself; oh.. you must be referring to this:
Diamond Cutlet???!!
The truth however, is that the blame lies with us people in the diamond trade for not correcting this mistake when it happens.
So with that in mind, I'd like to slow down a bit and get back to the basics of a diamonds properties. At www.exceldiamonds.com, our primary objective is to help empower our diamond customers with knowledge on all aspects of a diamond's cut precision and light performance.
The illustration below shows the basic properties of a 58 faceted round diamond, including the diamonds "CULET" (Pronounced Kewlet) on the bottom!
I hope this helps
U.S. Jewelry Purchases Increasing
Half of all American consumers purchased jewelry or watches in 2004, says a new study by market research firm Research and Markets, spending $57.4 billion on jewelry last year, 6.9 percent more than in 2003.
The study, "Jewelry Report 2005 Update: The Who, What, Where, How Much and Why of Jewelry Shopping," finds that women in their twenties to fifties with higher incomes represent the core target market for jewelry.
The study examines trends in both fine and costume jewelry markets for women and men. Within the fine jewelry segment, it includes information about the types of metals and gemstones used in the pieces.
Data about the types of jewelry available is also offered by the study, along with the motivating factors for male and female jewelry purchasers. The study also examines where consumers choose to purchase their jewelry, indicating significant sales increases for Internet Vendors.
Diamonds & Precious Metals Week In Review: 3/18/05
Trading markets remain very strong with prices remaining very firm in larger, better Cut Diamonds. Rounds, Princess Cuts, and Aschers in high demand.
Gold at $440.00 and Platinum at $880.00 remain steady.
Check Out This Diamond Studded Computer!!
Over the last few weeks we have pointed out a new trend on this blog where round diamonds are being used in everything from mp3 players to cell phones.
Here is a new one for you:
Tulip computers is introducing a diamond studded laptop computer which features round brilliant diamonds set pave style in precious palladium. Here is a picture:
New Meaning to the Expression; Married to My Computer!!
The price for this computer??
$380,000
I think I'll take two!!
Decrease in Diamond Rough Supply.
Reports indicate that BHP Billiton Mines company has raised its prices by 8 percent. The reported increase is a result of the lower diamond output by Ekati, BHP’s only diamond mine, in a very strong rough diamonds market. Ekati produced 4.1 million carats for the year ended December 31, 2004, a decrease of 27 percent from 2003.
Beware of Unethical Diamond Dealers!
I'm always amazed when I hear the horror stories that happen to so many unsuspecting diamond shoppers who are conned by the snake oil salespeople in many of the jewelry stores who try and convince them to buy their inferior (commercial) quality diamonds with almost no information???!!
Many of these diamonds have "diamond grading certificates" created on official looking stationary by the guy in the back office who almost arbitrarily attaches any color/clarity grade combo. he likes...it is simply unbelievable.
These same salespeople get so intimidated when customers who have educated themselves on the internet walk in and ask specifically for a diamond MegaScope Report and BrillianceScope Report. They try and convince the customer that this is all "marketing hype" etc.
Pretty much "par for the course" considering the kind of poor quality merchandise they are selling and their attempt to grab a sale at all costs.
However a story I heard today from a customer really takes the cake and sets a new standard even for these guys:
Would you believe that a customer was looking at a diamond in a mall (a.k.a. maul) store jewelry operation (a name you would instantly recognize if I mentioned it..which I wont for obvious reasons..) and asked why the diamond didn't have a recognized and independent grading certificate/report from a respected lab like GIA or AGS? (The specifications of the diamond were listed on an "official company card"...no other info. was available.)
What does the salesperson say....?
He says; "Oh there really is no need for a GIA report, our full time in house gemologist is a GIA graduate so it amounts to the very same thing??!!!
Can you believe this???!!
It's a few hours later and I'm still steaming...
...Had to get this off my chest!
"Have I gotta deal for you"!!
DeBeers Launching Value Added Services for It's Diamond Siteholders.
The Diamond Trading Company (DTC) aka DeBeers has launched its new "Value Added Services" (VAS) program, a series of marketing and planning initiatives to support sightholders and help them grow their businesses.
An objective of DTC's new program, according to a release issued Tuesday, is to support one of De Beers' top strategic goals over the next four years: to remain Supplier of Choice to their clients and fuel consumer demand for diamonds.
"These services will go beyond anything provided by any other diamond supplier, and are designed to help our clients to drive a new and exciting growth phase for their businesses," DTC Managing Director Gareth Penny said in the statement.
The VAS program will be comprised of core services and growth services with the aim of growing sightholders' businesses through a series of benefits, according to DTC. The program intends to help sightholders by providing a more stable business planning environment, encouraging them to participate in global marketing campaigns, amplifying the prestige associated with being a DTC sightholder, furnishing access to marketing insights and expertise from the DTC and connecting sightholders with a personal DTC key account manager.
For a fee, DTC sightholders can utilize core services, to feature supply planning tools including: continuity of supply for two and a half years, intention to offer, consistency of boxes to a defined profile, client extranet service and dedicated account management service. With the tools, DTC says it will provide business sustainability measures free to sightholders, such as consumer confidence programs and generic demand generation.
The growth services component of DTC's VAS program is be available to sightholders on request, and will feature seminars on growth opportunity, workshops about market insight, generic advertising materials and seminars on how to excel in business.
South Africa Diamond and Gold Miners Strike Spreads
The weak dollar continues to spell bad news for South Africa miners as a strong rand eats away mining profits reliant upon the dollar. Free State province gold mine workers went on strike to protest Harmony Gold Mining Co.'s plans of issuing up to 5,000 pink slips. DRDGold Inc., decided to close unprofitable mines, which would eliminate 6,000 more jobs.
Job cuts have grown more numerous in the past two years. DRDGold laid off 3,000 workers in 2004, and Harmony cut 8,000 jobs after announcing only 5,000 planned cuts mid-year 2004.
Unions warn of more layoffs in mining industry, with diamond miner De Beers among those issuing notices. Earlier in the day on March 23, South Africa labor unions lead by the National Union of Mineworkers announced it would work towards negotiating a 10 percent hike in wages during April bargaining sessions.
Long-term outlook for the dollar-to-rand exchange is little or no change. Bloomberg business news expects 5.90 rand to the dollar on average for all of 2005. On March 23, mid-day 6.07 rand bought $1.
In 1987, miners in South Africa walked-off their jobs for three weeks and 1 in 10 workers permanently lost their job.
Consolidation in the industry continues with prospects of future price increases looming.
"Good Friday" Diamond Robbery on 47th Street.
Manhattan police are on the hunt for gunmen who made off with at least $5 million in diamonds at Diamart Inc., 55 West 47th Street in New York City.
Two men identified themselves via intercom as deliverymen, and were allowed to enter the building shortly after 12 noon March 25th. The men put on masks, pulled handguns, and looted the business, and then they walked out of the building.
One man is approximately 5 feet 8 inches tall, the other is about 6 feet tall.
No suspects yet.
Rising Inflation and Oil Prices May Curtail Diamond & Jewelry Buying.
Markets in the United States closed in observance of Good Friday after a week of sour news about inflation and the job market. The DOW closed down 13.15 at 10,442.87 on March 24. The U.S. Labor Department reported consumer prices rose 0.4 percent for February, for an annual inflation rate of 2.4 percent, the highest spike in 33 months.
The weak dollar makes imports more expensive, oil prices remain at record high levels, and commodity price pressures are blamed for inflation concerns.
In the New York City metropolitan area, the consumer price index for the 12 months ending in February rose 3.9 percent, and core inflation was up by 3.4 percent. In comparative dollars, it would cost about $21 to purchase what would cost $10 in year 1984.
The states of California, Wisconsin, Kentucky, and Illinois have reported an increase in unemployment claims from March 2004. Weekly claims ending March 19th rose to 324,000 nationally, which was more than expected. Using the Labor Department's less volatile, adjusted, four-week average, the number of claims fell 5 percent from February 2004 to 321,750.
The Federal Reserve increased by one-quarter-point short-term interest rates, the seventh increase since June 2004. The hike will trigger higher rates for loans and lines of credit. Fixed-rate 30-year home loans rose to 6.01 percent, up from 5.4 percent in March 2004.
This situation may redirect consumers to Diamond purchases of smaller carat sizes during the upcoming Spring-Summer Gift-giving, Engagement, and Wedding Season.
Amid Declining Sales, Is Tiffany's On The Block?
Luxury retailers Coach Inc., and LVMH have been mentioned as possible buyers if Tiffany & Co., should decide to sell the firm, a report in Barron’s said on March 28. The report said that Tiffany shares could move up by as much as 25 percent or more if the company were to sell -– or put right its financial problems, including declining sales in Japan.
Tiffany has struggled for three years with weak sales at its stores in Japan and high precious metal costs. The continuing problem has forced the company to cut its earnings forecasts for 2005.
Japan accounts for almost a quarter of Tiffany's sales and is its second-largest market after the United States. Comparable store sales fell 8 percent in Japan in 2004 after adjusting for currency fluctuations, following declines of 3 percent and 8 percent in 2003 and 2002 respectively. In February Tiffany reported its fifth consecutive decline in quarterly same-store sales in Japan.
Tiffany has encountered the same problem that retail giant Wal-Mart Stores Inc., has in Japan –- that Japan's consumers are not always attracted to low-priced products. Bloomberg reported on March 23 that Tiffany is revamping its strategy in Japan, adding more expensive items and refurbishing stores. It will offer more gold jewelry and pieces with a price tags of at least $2,000 in Japan after demand flagged for silver items. The company said it may also open more free-standing stores after boutiques in department stores didn't perform as well.
For some reason, "Breakfast at Coach's", just doesn't have the same panache.
DeBeers To Share Mining Technology
De Beers has offered to share advanced technology with ALROSA to mine in the diamond rich Yakutia region of the Russian federation. Currently, De Beers is implementing a diamond prospecting project in the territory of the Luga district located south of St. Petersburg. De Beers is also working on a project that would yield industrial diamonds in Verkhotina, in the Arkhangelsk region of Russia.
In an interview with the Itar-Tass news agency on March 30, De Beers managing director, Gary Ralfe said that De Beers intends to invest in prospecting and recovery of diamonds in Russia and not limit itself to trading.
Ralfe meet with a group of Russian Duma deputies –-representatives of the lower house leading pertinent committees-- at his Johannesburg office on March 29. The Russian parliamentarians are on a South Africa visit to familiarize themselves with the activities of De Beers and legislative control of the extraction, processing and turnover of mineral raw materials.
Diamonds & Precious Metals Week In Review: 4/1/05
U.S. markets are soft with weaker consumer confidence and declining stock markets. Oil prices increasing with one industry analyst predicting $105.00 barrel oil by the end of this year!
Diamond dealers are pushing up the prices of large expensive polished stones due to shortages and very expensive diamond rough. Weak dollar encouraging foreign demand and high hopes for Basel show (March 31-April 7.) Diamond Rough markets still commanding inflated prices with profit margins for dealers very thin.
Fancy shape diamond demand is strong with firmer prices driven by scarcity of goods and the higher prices for rounds. Very good Far East demand for larger stones (4ct+). Inflated rough prices still squeezing manufacturer's margins. Strong demand for pears and ovals, well shaped stones are scarce and bringing strong premiums.
Heart shapes surprisingly strong with prices firming. Princess and radiants moving well, especially in 1.25-3ct, G+, SI+. Emeralds strong in 2ct. and larger. Asscher cuts very strong across the board. Scarcity of well cut marquises but demand for them is weak at this time.
Gold at $427.30 and Platinum at $866.00 holding steady and building a strong base.
Diamond Retail Sales Grow 8% in 2004.
For the ninth consecutive year, the retail diamond jewelry market grew in the United States, with an increase of 8.2 percent in 2004. Total diamond jewelry sales --half of the world's sales are in the U.S.-- was $31.5 billion, up $2.4 billion from 2003. Transactions grew by 4 percent and the average ticket price reflected a 4 percent growth as well.
Three-stone diamond jewelry, the “new classic,” continues to drive sales growth for the diamond jewelry market. In addition, by launching the “I Forever Do” anniversary campaign, the Diamond Trading Company will continue to grow the three-stone market by re-presenting a fresh occasion, the anniversary, for which three-stone jewelry is an appropriate gift. The three-stone category, which is any piece of diamond jewelry that consists of three diamonds, is now valued at $3.1 billion. During the past five years, three-stone diamond jewelry sales growth has risen almost 35 percent.
In 2004, diamond engagement rings reached their highest average price at $2,600, a year when 82 percent of U.S. brides felt that a diamond engagement ring was the only way to celebrate this momentous occasion. The total retail value for the diamond engagement ring category is $4.5 billion, which is a growth of 5 percent ahead of 2003.
The Diamond Right Hand Ring is another area that has seen tremendous growth. In 2004, the Diamond Right Hand Ring drove the $3.8 billion non-bridal fashion diamond ring category from an under performing section of the market into one that grew by 15 percent. This can be attributed to the success of the marketing campaign that resonates with women who believe in “The Left Hand Is For We, The Right Hand Is For Me!” In addition, research has shown that 39 percent of women are aware of the right hand ring; a 14 percent increase from the previous year. Of those 39 percent, one third of those women desire to purchase or receive a Right Hand Ring, and another one-third are considering a diamond ring of some kind.
Hearts and Arrows Diamond Pen
I just saw a really neat new product featuring a hearts and arrows diamond, in one of the industry magazines.
This is the "Diamond Pen" By Lumiere.
Le Lumiere™ Ltd. has conceptualized a stunning new design
for a writing instrument.
Le Lumiere™ Patented Diamond Pen, first of its kind in the world,
features a 0.10 carat hearts & arrows and up to 1ct diamond
mounted with 18K White Gold crown. Viewed by the built-in mini loupe viewerwith lens embedded in the barrel one can see the beauty of the diamond from within.
Pretty cool!
Diamonds Have Fingerprints!!
Did you know that just like our fingerprints are completely unique and no two are alike; the same is true with loose diamonds.
Same Idea
.....That's right!
Every single loose diamond, when it is plucked out from way beneath the surface of the earth it possesses its own unique set of internal characteristics or "fingerprints" which makes it completely unique from any other diamond.
These characteristics take the form of internal pinpoints and markings within the grain of the diamond carbon. These markings can only be detected by laser and cannot be seen even under very high magnification. They do not factor in to the clarity grade given to the diamond by the diamond grading laboratory.
As the diamond technology continues to evolve in our industry, there are scientific companies putting out all kinds of precision machinery to measure and quantify a loose diamonds cut precision and optical brilliance. One company has put out a machine that captures the internal fingerprint of every diamond. This company based out of Toronto, Canada, is called Gemprint.
They have created a machine that captures every diamonds unique fingerprint pattern by shooting a high intensity laser beam into the stone. The individual diamond pattern is sent via modem to their headquarters