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 and reviewed. It is then validated by them and printed on official company stationary with proper attribution given to the rightful owner. This information is registered with all of The law inforcement agencies worldwide. The procedure itself is completely non-invasive and has proven to be very effective as a means of protecting the consumer in theft recovery and "diamond switching" . As a matter of fact, consumers possessing a Gemprint of their diamond are eligible for a 10% reduction on their insurance premiums from many of the major insuarnce companies!
Unlike a diamond laser inscription done on the diamonds girdle; a Gemprint cannot be removed without cutting away 25% of the diamond! This makes it very difficult and impractical for a thief to alter the diamond in any way in an attempt to remove a diamonds fingerprint (assuming that he knows the stone has been Gemprinted.)
We have this technology in house and offer a diamond Gemprint to our customers as part of our service package.
For more information on this technology, please visit www.gemprint.com
Diamonds & Jewelry Week In Review: 4/8/05
U.S. trading are markets steady with stronger demand for better quality larger 1.50 to 3 carat diamonds. The Diamond Information Center puts U.S. 2004 retail diamond sales up 8.2% to $31.5 billion.
Gold and Platinum holding steady at $427.15 and $862.00, respectively.
Diamond Prices Going Up-Again!
So what else is new?
De Beers is considering an increase in its rough diamond prices in the course of this year.
The Sunday Times in South Africa quoted De Beers managing director, Gary Ralfe, as saying that the scope for an increase in rough prices existed as there was no large increase in diamond supply at the global level.
To meet anticipated growth in demand for diamonds, De Beers needed to produce more carats and this would be the focus of its strategy for the upcoming five years.
Bet on several increases this year, folks, and corresponding increases in the cost of polished diamonds.
50 Carat D Flawless Diamond Sold at 4 Million!
A standing room only crowd at Christie’s New York sale of Magnificent Jewels was hushed as dueling bidders vied for a 50.01 D flawless diamond ring.
This 50 carat D Flawless could have been yours for 4 mil!!
The rectangular-cut prize by Graff was the top lot of the evening selling for $4,216,000 (all prices include buyers premium.) It was bought back by Graff the London-based retailer who over the years has offered some of the world’s most important diamonds for sale. He declared the gem “a masterpiece.” The sale total of — $31,747,840 — was the highest seen over the past few years at a New York auction.
Also boosting the bottom line was the sale of an 8.01 carat oval-cut Burmese ruby, which sold to an Asian Private after heated bidding on the phones for $2,200,000, setting a world auction record price for a ruby of $274,656 per carat.
Burmese Ruby for 2.2 million! And you thought filling up your gas tank was expensive!
Buyers participated from around the globe with private collectors bidding aggressively on signed jewels, sending prices into the stratosphere.
Diamond prices were strong with several D Flawless stones moving briskly, contrary to the trend of the past few years when those gems sat untouched. Colored gemstones — also traditionally slow movers at auction — were the focus of intense bidding during the sale.
While privates were in the thick of the bidding action, this was the first sale in some time that saw the trade dominating the top ten lots; only three of the 10 sold to privates. The sale’s success was fueled by the soft dollar, a strong selection of signed jewels and diamonds that were consigned at reasonable prices.
Diamond Auction At Sotheby's Is Strong.
Diamonds moved briskly and with very strong prices at Sotheby’s New York spring sale of Magnificent Jewels. The trade and privates snatched up the gems as fast as they came on the block.
Items Auctioned yesterday at Sotheby's.
The sale totaled $13,337,300 against a presale estimate of $12,836,400. A 3.12-carat fancy intense blue diamond was the top lot selling to an anonymous member of the international trade for $956,800 against an estimate of $450,000 to $550,000. Several dealers mentioned that while the pear-shaped stone is beautiful as is, there is potential to recut it and improve the color.
The highly touted .90-point round fancy intense green diamond sold for $296,000 to an Asian private. Most of the action at this sale took place over the phone. Bidding — which came from around the world — was light and buyers won the goods quickly.
Rounding out the sale was a healthy selection of signed and period jewelry with David Webb pieces making a strong showing. Sapphires were also of great interest bringing top prices for exceptional material.
Diamond and Precious metals Week In Review: 4/15/05
U.S. markets steady with dealer and Retailer demand for scarce better quality 1.25 carat and larger sizes. Christie's NY sales total $32 million; 88% sold by lot, 93% sold by value. Sotheby's NY sales total $13 million; 83% sold by lot, 90% sold by value.
Gold and Platinum prices holding steady at $424.00 and $866.00 respectively.
Diamond and Jewelry Week In Review: 4/29/05
U.S. retail demand improves for 2ct+,SI1+. Dealer prices firm but activity is slow due to Passover holiday. U.S. consumer confidence declined 5% in April and long-term outlook index fell to lowest level in 22 months.
Gold strong at $435.45. Platinum strong at $873.00.
Analysts predict further rises in the Gold price as the dollar remains weak.
Diamonds heated In Microwave Oven will Protect Your On-line Purchases!
Encrypted messages used for credit card purchases online, may be become even more secure thanks to diamonds heated in a glorified microwave oven.
The new technology is by James Rabeau, a research fellow in the University of Melbourne’s School of Physics.
How does this innovation work? Most high speed communication networks use light particles, or photons, to transfer information. Trillions of photons speed down optical fibres all over the world, transferring all manner of sensitive details.
This is where 'quantum cryptography,' which involves using single light particles to encode information, comes in. The concept of quantum cryptography has been around since the 1980s, says Rabeau, but no one so far found a way of producing single particles of light reliably and efficiently at room temperature.
Rabeau has built a device that would deliver single photons from diamonds into an optical fibre. The new technology that Rabeau has patented is based upon a process known as chemical vapor deposition (CVD,) which takes place in a glorified microwave oven, to deposit diamond crystals at one end of an optical fibre. When a laser hits the diamond encrusted tip of the optical fibre, single photons are wrapped around the data and sent down the optical fibre as part of a message.
Rabeau has a worldwide patent on the process, which provides the first reliable and cheap source of single photons.
James, when you're done with this, see if you can get computer screens developed with robotic arms that will deliver diamonds and jewelry. WOW! Wouldn't that be something!
A Diamond Ring Fit for a Princess-for $36!
Wal-Mart's British subsidiary is offering a $36.00 version of the platinum and diamond engagement ring Prince Charles gave to camilla Parker Bowles. (read about it here)
The original values at almost $1 million is a timeless classic but Wal Mart wanted to give it's customers a taste of royalty for a fraction of the price. The ring went on sale April 8, the date of the Royal Wedding. Only 1000 pieces have been manufactured.
The original ring, made in the 1920s was a gift by the future King George VI to his wife Elizabeth when she was pregnant with the present Queen, Elizabeth II.
Diamond & Jewelry Week In Review: 5/6/05
Demand for larger well made fancy(2ct+) diamonds is very strong across the board. Diamond rough availability is improving but prices are still very high. Princess Cuts are very strong. Pears and Ovals, doing well with improved demand for Hearts. Larger, better Emeralds (2ct+,H+,SI2+) doing well and Asscher cuts very strong across the board. Marquises demand improving with shortages.
Rough prices calming down but still much too high in relation to polished prices and current level of retail demand.
Gold futures in New York fell sharply in early trading Friday as a surprisingly strong U.S. April nonfarm payrolls report boosted the dollar and dulled the allure of bullion for investors. Gold is at $424.95. Platinum has dropped slightly to $874.00
Brides Have Huge Input On (Their) Engagement Rings!
A recent article in one of the industry magazines says that today's brides have more influence than ever on the ring their future husbands are buying from them. According to theknot.com about 65 percent of brides-to-be drop hints about the diamond engagement ring they want. Kari Slater, account executive of Fruchtman Marketing, Toledo, Ohio, which specializes in jewelry marketing, corroborates the same thing.
"Now more than ever, women are really driving the purchase of engagement rings," says Slater. An engagement ring is often a couple's first major purchase; brides are often instrumental in choosing the store or pointing out photos of rings they really like.
At Exceldiamonds.com, this has been our experience as well. We very often will see the bride and groom come visit with us in our showrooms to look at loose diamonds for her engagement ring. During this phase which can sometimes last a few weeks with multiple visits to our showroom, the bride is very much involved in the choosing of the loose diamond. Ultimately, once the diamond has been chosen we usually see the bride taken out of the picture and the groom making the actual purchase and creating an element of surprise for a special proposal etc....
Houdini, Where Are You?
Remember Houdini's tricks of levitation? You asked yourself, "How the heck did he do that?"
Well, Levitation is a 'trick' no more and it will be used for diamond mining and exploration.
Levitating heavy objects could help in diamond mining, according to physicists at the University of Nottingham, England. In mining for precious stones, a method for accurately filtering the gems from the surrounding rock and soil is possible. Work by scientists concluded that after using liquid oxygen to levitate diamond and some of the heaviest elements, lead and platinum, and with a specially designed super conducting magnet, they increased buoyancy and could levitate an object with a density 15 times larger than that of the densest known material, osmium.
Writing for the article, Professors Laurence Eaves and Peter King, described how mixtures of oxygen and nitrogen in the liquid and gaseous states provide sufficient buoyancy to levitate a wide variety of objects including diamonds and metals.
Magnetic levitation occurs when the force on such an object is strong enough to balance the weight of the object itself. If the object is immersed in a fluid such as gaseous oxygen, the levitation can be enhanced by the effect of buoyancy caused by the “magneto-Archimedes” effect.
Liquid oxygen, the main component in many rocket fuels, is highly combustible. It is potentially dangerous to use but makes it much easier to float dense objects using commercially available magnets because it boosts the buoyancy effect due to the inherent magnetism of each molecule of oxygen. This allows you to float objects as heavy as gold with relatively low-power magnets. Eaves and King and their co-workers investigated the use of a safer mixture of liquid nitrogen and oxygen, and found the optimal mixture for floating heavy objects safely, making commercial applications of this technology possible.
King said, “You can use this technology to accurately sort minerals. Under vibration you throw crushed ore into the air and in the magnet the different components experience different effective gravity. They therefore tend to land at different times and after a short while the vibration sorts them into bands according to their density. The method can discriminate between components with very small differences in density enabling you to extract the precious parts you require.”
Who knows...next time you see a magician doing feats of levitation, he just may be using Eaves and Kings method. Just make sure to put out your cigarette.
DeBeers Going Retail.
DeBeers Supplier of Choice Program, which is designed to install vertical integration among it's sightholders so that they become responsible for manufacturing the diamond rough to the marketing and selling of the finished polished diamond as well as jewelry to consumers now is proceeding full speed ahead.
For months New York City residents have watched De Beers prepare its new retail store at the corner of Fifth Avenue and 55th Street. And according to The Times of London, De Beers plans another 150 new retail stores in the coming 10 years.
De Beers LV --a joint venture with the LVMH Group, Moet Hennessey Louis Vuitton-- plans to open Manhattan's showroom in June 2005, followed by a store in Beverly Hills, California, in the fourth quarter of 2005.
The Times quoted Guy Leymarie, CEO of De Beers LV, as saying the target of 150 new stores would not all be operated by De Beers, but he did expect roughly half of the new stores to open in the United States. For decades post-WWII, De Beers was prohibited from conducting business in the United States due to antirust claims, but the issue has been settled and opened the door for business in the states.
London has the first De Beers LV retail store on Old Bond Street, opened in 2002, and De Beers LV owns three stores in Japan, of which two operate at a profit, Leymarie told The Times. Leymarie was chief executive of Cartier prior to joining De Beers LV in March 2004.
A new jewelry collection called Radiance will hit the London market during the week of May 16, 2005. The collection is designed by Raphaele Canot. Prices in the collection range from $18,000 (GBP 9,800) for a diamond ring, to $721,000 (GBP 390,000) for its Sun Grand Medallion.
The end of days for the diamond and jewelry middleman are nigh.
Perhaps an apt slogan for DeBeers ought to be:
"From The Mine To You".
The Internet Evolution: Buying Diamonds and Jewelry Online
I just saw a fantastic article by Martin Rapaport concerning the tremendous evolution of the Internet today as a viable means of learning about and purchasing quality diamonds and jewelry at tremendous values. I will post the article here in its entirety:
"My father told me a story about his father — the original Martin Rapaport. He owned the grain mill in Satmar, Hungary. The mill made money by buying up large quantities of wheat, grinding it and selling the flour. Every year my grandfather would travel to a very wealthy landowner, a several days’ journey, and negotiate the purchase of the landowner’s entire grain production. One year, my grandfather arrived as usual and the landowner very apologetically explained that he had already sold his wheat to a company in London. He took my grandfather into a room and showed him a telephone, proudly explaining how that the deal was negotiated over the phone. Greatly disheartened my grandfather returned home and told my father “the telephone will kill the wheat business.”
Power
Obviously, the telephone did not kill the wheat business but it did kill my grandfather’s idea of what the wheat business was or should be. While the physical aspects of advancing technology are new, there is nothing new about the fact that technology changes our world in ways that empower and “depower” different segments of society. Sometimes technology does not merely advance us, it hyperspaces us to a new reality with unlimited opportunities and consequences. The printing press, electricity, telephones, air travel and computers did not just advance us, they put us in a different world. A world where the young challenge the old, where revolutionary thinkers displace the establishment and where it becomes increasingly difficult to balance the need to adopt new ideas with the need to maintain order and the success provided by well-established tested and tried ways of doing things.
New technology is G-d’s way of democratizing opportunity. Established firms with large investments in the old way of doing things are misplaced by new firms that are able to adopt change and innovate quickly. The older and more powerfully entrenched you are and the greater investment you have in the old, the harder it is to adopt new ways to do things. Technology shocks provide an elementary form of social justice as they limit the dominance of the powerful establishment and make room for new innovators. New technology is Darwinian as it provides for survival of the best adapters and elimination of those that resist change.
While many established firms took pleasure in the “boom-bust” collapse of the early internet and the justified fall of the arrogant gurus who predicted the imminent demise of traditional retailing and distribution, in fact the internet is continuing to develop and change the way we do business. A primary goal of this article is to try and understand how the internet will impact the diamond and jewelry business in the near to medium future so that we may develop strategies that optimize our strategic positioning.
Internet is an Evolutional Process
We must recognize that the internet is not a revolution but an evolutionary process. Like the telephone the internet does not change the world by itself, but by how it interacts with existing systems. The impact of the internet process will continue for a long time and fundamentally change how we evolve. The internet today is the telephone of yesterday and the electricity of yesteryear.
Many of the early internet advocates mistakenly believed that the advent of the internet signified a singular technological leap forward that would obliterate existing systems. They thought everything was going to change at once. They were wrong, not because the internet is a less powerful force than they estimated, but because it is more powerful than they estimated. The internet is slowly and consistently changing the very roots of our society and the way we will communicate and do business in the future. How fast things change is not as important as how fundamentally they change.
To a large degree, the internet is about how we develop and use information. Initially firms maintained information systems for purely internal purposes with many buying their first computer at the insistence of their accountant. Once the information was available for internal purposes, firms began to question how they could optimize its use not only to manage their company better, but also to increase sales. A number of business-to-business (B2B) trading systems such as RapNet® and Polygon developed to enable the efficient sharing of diamond availability and the evolution of inventory databases into trading networks began. The idea that sharing information was an important benefit to have took root.
Practical Considerations
The fact that diamonds come in thousands of size/quality combinations and that demand is very specific creates a situation where buyers are often looking for a needle in a haystack. The ability of the internet to aggregate information from thousands of sources and quickly find the exact diamond the customer needs is unparalleled. Furthermore, the internet is capable of ranking the diamonds by best prices, thereby creating a competitive marketplace.
The aggregation of real-time competitive internet availability and pricing information has created an unprecedented level of transparency in the diamond sector. Companies and consumers are able to shop the internet and easily obtain best prices for fine-quality laboratory-graded diamonds. Armed with internet prices and printouts of grading reports, consumers are demanding same pricing from traditional retailers. The consumers want the added-value services provided by retailers but they do not want to pay for them. Instead of supporting and promoting trade, the internet is coming between retailers and their customers.
It is obvious that retailers provide valuable and greatly desired value-added services to their customers. Most consumers do not want to buy diamonds sight unseen over the internet. It is also obvious that retailers cannot provide a retail shopping experience at prices that are competitive with internet prices, which are based on a 7 percent to 20 percent markup. Retailers are entitled to fair compensation for the added-value services they provide.
We know that a consumer prefers to see and compare diamonds before they buy. They also prefer the education and personal advice provided by a trained salesperson. But how much are consumers willing to pay for these and other added-value services provided by retailers? Can retailers live in a world where their customers know their cost prices? If consumers know the cost of the steak, how much will they be willing to pay for the sizzle?
When confronted by internet consumers, it is important that retailers not be shy about clearly communicating to the consumer what their added-value services are and what they will cost. Internet transparency is driving added-value services transparency. Retailers must be as transparent about the cost of their added-value services as the internet is with the cost of commoditized diamonds.
The internet will not replace traditional retailers for the same reason that McDonalds has not replaced fine dining and fine restaurants. And this is because many consumers want more than a commodity diamond. The challenge for retailers is to clearly define just what they are giving the consumers and to charge a fair price for it. Most consumers do not want the lowest commodity price when buying a diamond. They do, however, demand good value. Good value for the diamond and good value for the added-value services provided with the diamond.
It is up to the retailers to create real added value for the diamonds they sell. Retailers that flip diamonds the way McDonalds flips hamburgers better be offering a great price because there is no other reason for anyone to buy from them. In the words of Jack Trout, “If you don’t have a differentiating idea to drive your product or brand, then you better have a terrific price. There is nothing in the middle. It’s an idea or a price — take your pick.”
50k Diamond Razor For Fathers Day!!!
(Rapaport...June 17, 2005) Jacob & Co. created a 4.5 total carat weight Diamond encrusted M3Power razor for the Gillette Company to market as a Father's Day gift for soccer-star David Beckham, Gillette says in a company statement.
The razor features two rows of white diamonds and one row of extremely rare green diamonds, and the edge of the razor has been finished in solid white gold. It is valued at $50,000.
Gillette says it is the most extravagant product the company has ever had commissioned.
"I am really delighted with this razor," said Beckham. "To have an M3Power customized for me is amazing and for Gillette to give it to me for Father's Day is a lovely gesture."
Michele Szynal, director of brand communications says, "David Beckham is the ultimate style icon and a great dad. What better way to help him celebrate Father's Day than to give him the closest shave with the coolest Gillette razor in the world."
The Razor
Gillette is headquartered in Boston, Massachusetts, and sells grooming and shaving preparation products as well as alkaline batteries and toothbrushes.
DeBeers Goes Retail!
DeBeers, the Mining Giant and for years the engine that drove the wholesale and manufacturing sector of the Diamond Industry came full circle yesterday by opening their first Retail store in the heart of New York's tony 5th Avenue, just a stone's throw from such stalwarts as Tiffany, Cartier, Harry Winston, and van Cleef and Arpels.
DeBeer's foray into direct retail further blurs and erodes what had for many years been strict demarcated lines between wholesalers and retailers and furthers their concept of Branding and niche marketing.
This move combined with the increasing market share of Internet diamond and jewelry websites increases the pressure upon retailers to define themselves to consumers and provide added value and quality to the products they sell. Middelmen are becoming an extinct species.
Who woulda thunk this would happen even a few short years ago? The industry is changing and evolving at warp speed.
For retailers, it is now "Adapt or Die"!
Darwin, where are you?
You Can Find A Diamond In The Park!
Rapaport Wire Service reports this morning that anyone willing to dig for diamonds can do so at Arkansas State Park!
Some 700 diamond finds have been in excess of 1 carat, but the largest diamond found so far weighs 40.23 carats (unearthed in 1924.) The largest diamond of late was 7.28 carats found by a vacationer in 1998.
According to park officials, the Crater of Diamonds is a result of one volcanic eruption about 100 million years ago that pushed diamonds up to the surface near a town known today as Murfreesboro, Arkansas. In 1949 an attempt was made to open the area up to the public after decades of private ownership. It opened as the Diamond Preserve of the United States in 1951. In 1969, General Earth Minerals of Dallas, Texas, bought the land as a private tourist attraction until 1972, when Arkansas bought the land for a state park for $750,000.
Thirty-seven acres of land are available for visitors to explore, and the park re-plows the land each month to help bring more diamonds to the surface. During summer months (late May through early September) park officials teach visitors diamond mining, and offer nature programs and a children's mining camp. In spring and fall the park offers mining demonstrations.
Admission for adults is $6, and children ages 6-12 pay $3. Park hours are 8:00 a.m. through 8:00 p.m. from Memorial Day weekend into Labor Day weekend, and the park closes at 5:00 p.m. during the remainder of the year. Crater of Diamonds State Park is about 60 miles southwest of Little Rock, Arkansas, (off Interstate 30.)
Happy Hunting!
Diamond Rough Shortfall Will Increase Prices.
Global demand for diamonds is outstripping the available supply over the next five years, and a worldwide shortfall in rough has been projected to reach $7 billion in value by 2012. According to U.K. analyst James Picton, that is roughly two thirds of last year’s global mine output. Over this interval, Picton also projected 30 percent price growth for rough to bring demand in line with supply.
Although new diamond mine exploration continues, when new productive mines will come online is a matter of conjecture. Right now prices for high quality rough are very high and pushing retail prices for polished diamonds consistently higher.
Diamond Week In Review: 7/1/05
2carat+, H color+, SI2 clarity + diamonds are very scarce and driving higher dealer prices. Demand flat for inexpensive goods under the carat due to relatively weak retail sales by large chains and mass merchants. Far East steady for 0.40ct+ (J-M color,VVS-SI2 clarity).
Fancy diamond shape market very strong with good demand and scarcity of large goods. Princess cuts continue to be strong. Asschers, Radiants, and Emeralds weaker in June. Increased demand for Heart shape diamonds with shortages in larger sizes. Pears and Ovals steady.
First wave of price increases for polished diamonds in 1.5 carat + to 5 carats in round shape diamonds, D-G color and Internally Flawless to VS-2 clarity instituted last week in response to diamond rough price increases introduced by DeBeers at the last diamond sight two weeks ago in London. Further diamond price increases for smaller carat round diamonds and fancy shape diamonds forthcoming in the next several weeks as consumer demand greater than available supply.
Happy 4th of JULY Holiday weekend to one and all!!
China Becoming Major Diamond Center
Rapaport News reports this morning that Israel’s Ministry of Industry, Trade and Labor has declared China to be a preferred export target and will set up two permanent trade centers in two of China’s provinces, the ministry said in a press release on July 11. A special committee from Israel will choose the locations, thus ensuring Israel’s permanent commercial trade presence in China.
India, Mexico, and Brazil are already considered preferred export targets by Israel. Under the new plan, two companies in China will be awarded tenders by the end of 2005 and will receive a low flat fee covering overhead costs according to Globes on July 12.
The estimated boost to Israel’s export potential to China is about several hundred million dollars.
Managing Director of Israel Diamond Institute Ephraim Raviv told Rapaport he welcomed the move saying “throughout the world the offices of the ministry provide services to the diamond industry. We are very grateful. This will be a positive step for us. We are in the process of opening an office in New York and are seriously considering opening another office in Hong Kong, both dedicated to the diamond industry.”
China was Israel’s ninth largest export destination for polished diamonds in 2004 with exports reaching $98.1 million.
In 2004, Israel’s total exports to China rose 30 percent to $765 million as compared to $591 million in 2003. Diamond exports to China rose by 16 percent. The increase in Israel’s diamond exports to China is largely attributed to the easing of import taxes on diamonds to China. Diamond exports make up 13 percent of Israel’s total exports to China. Many Israeli owned diamond manufacturing firms have established plants in China over the last couple of years and are listed on the Shanghai Diamond Exchange.
Ah, Capitalism gaining a foothold in China; what would Mao say?
Diamond Week In Review 7/15/05
A lull in the action as the Diamond and Jewelry Industry in New York is on vacation. Most firms will be back and re-open on Monday, July 18th.
Better Cut quality diamonds are in very strong demand and bringing price premiums. Ideal cut round brilliants, Princess cuts, Asschers, and Cushions are in high demand and commanding premium prices. Supply in 1.60 - 1.90 carat, D to I color and VVS to SI-2 Clarity are in very high demand with limited supply.
At DeBeers July Sight In London, Sight Holders were hit with a 2% Value Added Services charge which is tantamount to an increase in the price of their diamond rough allocations. This is a new policy which is being implemented as part of DeBeers new Supplier of Choice Program.
Sight Holders expect another increase in rough diamond prices come the September Sight and this will surely translate into another increase in the price of polished diamonds as we head into the fall Diamond Shopping Season.
Did You Know That China Has Diamond Mines? Believe IT!!
Yes, folks, you heard right. China has Diamond deposits! No, I did not see this in Ripley's Believe It or Not!
China Diamond Corp., reported a 108 percent increase in production results from the 701 Changma Diamond Mine located in Shandong Province, China. China Diamond is headquartered in London, Ontario, Canada, and is engaged in mining for diamonds and the exploration and advancement of diamond and gold prospects in China.
The 701 Changma Diamond Mine is the company’s principal mining operation the company said in a press release on July 14. Total carats produced from January through March 2005 were 9,240.50, but from April through June total carats produced hit 19,221.20.
Operations were carried out in a higher grade area of the deposit, namely the Small Pipe, which returned an average monthly grade of 1.23 carats per ton. This area is expected to continue to be in production well into August 2005.
Hey, I've got a great marketing idea for the Chinese Diamond Dealers...a Panda wearing a Diamond Tiara!
Jewelry Show Coming To New York.
JA New York Summer Show is set to kick-off on July 31, 2005, at the Jacob Javits Center in New York City. According to VNU Expositions, some 1,800 exhibitors will convene at the show, and the event expects to attract some 13,000 buyers and trade professionals.
Some of the presentations on schedure are: For its opening day, July 31, Katherine Stone, with Engage Consulting Inc., will keynote. While at Coca-Cola Company, Stone led her team in the creative development and execution of experiential marketing concepts, applicable across a variety of channels, aimed at building volume and long-term Coca-Cola brand equity.
A panel will engage the topic of marketing on August 1 during the lunch time session. Experiential Marketing: "Engaging, Entertaining, Educating Customers to Drive Sales," will be presented by representatives from a fragrance company, a luxury private jet company, Barney's New York, and others. Neil Benedict from Affluent Dynamic Moderator will moderate this informative and essential session.
On August 2, during the lunch time session, an educational panel will address "Marketing to Women: What Turns Them On/What Turns Them Away." Carrie Broussard, senior marketing director, founder of the Women On Their Way Program for Wyndham Hotels; Cynthia Sliwa, designer of Apprecia Jewels; Kevin Burke, Lucid Marketing; and Randi Molovsky, fashion writer, will all lend their expertise to this critical subject. The panel is sponsored by the Jewelry Information Center (JIC) and will be moderated by Helena Krodel and Amanda Berg from the organization.
Diamdel, Antwerp Council In Joint Education Partnership.
National Jeweler reports that Diamdel, an independently managed rough diamond trading company within the De Beers Group, announced a partnership with the Diamond, Jewellery and Management Institute (DJMI), a joint initiative of the HRD Antwerp World Diamond Centre and the University of Antwerp Management School (UAMS).
"Diamdel's engagement and resulting co-sponsorship of the institute represents an ideal synergy for us," said Frank Auger, managing director of Diamdel NV, in a release. "It adequately reflects both our vision for helping to globally encourage the entrepreneurial spirit of the developing industry, and also our passion for playing an immediately tangible role in enhancing the sustainability of small businesses within centers such as Antwerp."
Auger added that the partnership would allow Diamdel to provide its clients with access to DJMI education and training, calling it a key component to the growth of the secondary industry. Diamdel carried out a similar initiative with the Israeli Diamond Manufacturers Association (IsDMA).
"The secondary industry has a huge hunger for knowledge development and with this fact in mind, we look forward to meeting and ideally exceeding our clients' needs through this co-sponsorship arrangement with DJMI," he said.
Diamdel's involvement complements the institute's mission to offer world-class education and technical skills to the industry, DJMI director of development and conceptual founder of the Institute Marcel Pruwer said in the statement. Diamdel's presence in key cutting centers and in Southern Africa and China enables DJMI to channel its programs throughout the diamond pipeline, he added.
Want To Own A Piece of the Rock? Here's A Bargain!
Dwyka Diamonds Ltd. has sold an 18.11 carat rough octahedron diamond of H/I color and S12 quality for more than $130,000, the company announced in a press release on July 21. The diamond was mined from the company’s Nooitgedacht alluvial mine in South Africa.
Diamond Week In Review - 7/22/05.
High consumer demand diamonds are .90 - 1.25 carat sizes in D-I colors and VS-1 / SI-2 clarities; 2 carats in H-I color and VS-1 / SI-2 clarities, and 5 carat size rounds in F-H color, VS clarity.
Ladies; I'm sure you'd like to get a 5 carat rock from your Man!
Gold and Platinum prices are steady.
Sri Lanka Follows Canada and India In Reducing Diamond Import Taxes.
Sri Lanka’s cabinet ended its 15 percent Value Added Tax (VAT) on imports and trading of rough, cut and polished gemstones, diamonds and precious metals, reported the official Daily News on July 24.
The Daily News quotes Rohitha Bogollogama, minister of advanced technology and national enterprise development,“We have taken a bold step forward in the right direction to make Sri Lanka the hub in the gem industry,” said . Additional incentives encouraging Sri Lanka’s mining sector will be added to the 2006 budget, she added.
Sri Lanka’s gem and jewelry industry is expected to surpass tea and apparel sector exports in the future.
The Sri Lanka Gem and Jewellery Association (SLGJA) said its in the process of introducing an internationally recognized quality certificate certifying the quality of gems purchased in Sri Lanka. Currently, certificates that are issued are not recognized internationally.
Future industry plans include setting up a Gem laboratory and gem trading floor in Ratnapura, Bogollagama told journalists at a press conference.
Sri Lanka’s gem and jewelry exports reached $101.23 million in 2004, a significant growth from 2003, said Ajith Perara, senior manager of the National Gem and Jewellery Authority (NGJA.) Gem and jewelry exports in the first half of 2005 stood at $44.80 million.
SLGJA has organized the 15th International Gem and Jewelry Exhibition 2005 (Facets) due to take place from August 31 to September 3. Facets organizing committee chairman, Macky Hashim said that Facets is the only national gem and jewelry show which is recognized internationally. 95 percent of the booths have already been sold out to many international participants.
DeBeers: Profits Down, Closes Mines.
Two interesting announcements today by Debeers in another clear indication of their repositioning in the market from solely wholesale miners and rough sellers to a focused retail emporium.
First announcement is that they will be closing their South African Mines.
Gary Ralfe, managing director of De Beers, told Reuters on July 25 that the mines are exhausted of resources. The company's Kimberley mines would close by year-end 2005. Their diamond mines in Kimberley, South Africa, were opened in 1871, and elimination will result in the loss of approximately 1,000 jobs.
Retreatment at Kimberley --a process of scouring waste deposits for leftover diamonds-- would continue, according to Ralfe. The company's Koffiefontein mine faces closure or sale in 2005, and its Oaks mine may close or be sold by year 2007.
De Beers' Cullinan mine, Ralfe said, is still far from profitable; however, as a long-term resource it remains positive for kimberlite ore.
Second, DeBeers profits declined 21% compared to the first half of 2004. This was due to unfavorable exchange rates between the dollar and the South African Rand and the completion of stockpile selldown in 2004 which significantly added to the bottom line.
DeBeers is banking on emerging markets in China, Japan, and the Gulf to boost sales, increased sales to the U.S. of 5-6%, further prices increases (OUCH!), continued progress in the exploration and mining of diamond deposits in Canada, and the further development of their Supplier of Choice (SOC) Program which mandates that their site-holders be able not only to manufacture the rough diamonds but have the marketing skill and infrastructure and to sell these diamonds to you, the consumer. To this end, Debeers last month opened a retaiil store with LMVH on New York's Fifth Avenue and is planning on opening at least another 20 retail "Salons" ( calling them 'outlets' is a NO-NO ) by mid 2006.
If you needed anything to show you how dramatically DeBeers is changing the way they do business you can find it in their most recent announcement of new siteholders for the upcoming 3-year cycle period. Stuller, the findings company is now a siteholder!
Times, they are a'changin!
Diamond Week In Review: 7/29/05
Diamond Prices continue to inch up. Last night, Rapaport News, an Industry Newsletter reported that prices for 1.5 to 5 carat round brilliant diamonds increased by 1-3 percent, encompassing D-J colors and Internally Flawless to SI-2 Clarity Grades.
Increased consumer demand and reduced availability of gem quality diamond rough are cited for these prices increases.
Indications point to additional price increases for smaller carat sizes as well, coming in the next few months.
And you thought a barrel of Oil was expensive!
One Reason Diamond Prices Will Continue To Go Up!
Interfax News Agency reports that Rough diamond production in Russia's Yakutia territory fell 9 percent in terms of carat weight.
ALROSA, owner of the diamond mines in the area, decided to reduce physical volume of rough due to increased diamond extracting costs in mines, and due to increases in rough prices, which boosted revenue overall just the same.
GIA New Cut Grade System Starts: Jan. 1, 2006!
The Gemological Institute of America (GIA), the world's foremost diamond grading and research laboratory will be issuing its new Diamond Cut Grading System reports on January 1, 2006, for round brilliant cut diamonds, D-to-Z in Color and Flawless-to I-3 in Clarity. GIA's new reports will include a cut grade accompanied by color, clarity, and carat weight.
GIA is also making available its Facetware (TM) cut estimator tool for assessing diamond cut quality. The tool requires user input for total depth, table size, crown angle, pavilion angle, star length, lower-half (lower-girdle facet) length, girdle thickness, and culet size, as well as the diamond's polish and symmetry grades. Available free for use it can be found here: GIA New Cut Grade System For Diamonds
This is an extremely informative and useful tool/tutorial which should be used and read by all consumers.
Diamond Week In Review: 8/5/05.
Big week in the world of diamonds as the foremost gemological laboratory in the Industry, GIA (Gemological Institute of America) finally, after 15 years of research, introduced their new Cut Grade for Diamonds.
The new Cut Grade system will evaluate diamond proportions of the round brilliant shape and assign a grade of either "Excellent", "Very Good", "Good", "Fair", or "Poor".
The new system will begin as of January 1, 2006.
More information on how the Cut Grade works and which proportion combinations will result in the best grades can be found on the GIA website. The link is here:
GIA New Cut Grade System For Diamonds
Diamond Week In Review: 8/12/05
Excellent turnout and buying activity at last week's annual JA Summer Diamond and Jewelery show held at New York's Javits Convention Center.
Retail jeweler Traffic was up by 10%+ with increased purchasing by retailers for their inventories in their expectation of a strong Fall and Christmas buying season by consumers.
Strong demand for rounds in 2 carat+, I color +, SI-2 clarity +. Princess Cuts steady, Asscher, Oval, and Radiant Cuts strong.
Gold and Platinum prices surging as Oil prices hit all time high of $65.00/barrel amid fears of increasing political instability in Iraq and Saudi Arabia.
Diamond Week In Review: 9/9/05
Diamond prices showing several increases over the past two months as cost of diamond rough is extremely expensive. Further price increases
expected for this Fall's shopping season.
Asschers and Princess shapes in better cut qualities very strong.
Gold hit it's highest level of the year yesterday at $449.40 on heavy volume and traders fully expect Gold to break the $450.00 resistance level next week as the combination of rising Oil prices and the upcoming heavy Christmas shopping season are coming up.
Platinum hit a high of $914.00 this week and analysts expect the metal to hit $950.00 as Japan,China, and Italy will be purchasing large amounts of Platinum for upcoming Chistmas shopping season.
China Jewelry Sales Soaring!
The Chinese Government released statistics today showing that Chinese jewelry sales rose 11 percent in August, and oil and oil product sales jumped 41 percent.
The average annual earnings for urban residents has risen 91 percent since year 2000, the government said.
China's economy has expanded an average of 9.5 percent for each of the past 20 years.
Overall, August retail sales in China rose 12.5 percent due to higher incomes and tax breaks, according to government statistics. Retail sales for the month ended at $62 billion, reflecting what the country's Prime Minister Wen Jiabao said was helped by his national increase in the minimum wage and lower taxes for farmers.
To paraphrase the great Satchel Page, "Don't look back, cause China be gainin' on ya"!
Diamond Week In Review: 9/16/05
U.S. trading markets are stable with jewelers and tradespeople concerned about the impact of New Orleans, high oil prices,continued Iraq war on consumer mood and pocketbooks, and rising Gold and platinum Prices.
Gold hit a new high yesterday of $459.00/oz with analysts expecting $500.00 Gold in the very near future. Platinum hit $922.00 and further increases are expected.
Imelda Marcos Sues to get her Diamonds Back!
Imelda Marcos, former first lady and wife of the late President Ferdinand Marcos of the Philippines, filed a motion in court to prevent the auction of as much as $10 million worth of diamonds and jewelry.
Marcos said the jewelry is hers and told the government to "Please stop this. This is too much repression."
Christie's auction house was already sorting jewels to prepare bid for auction as early as November, but a complete and current value of goods remained unknown. The collection includes a Burmese ruby, diamonds and two diamond tiaras, and many pearl necklaces and jewelry. Sotheby's and Boham's are scheduled to review the collection in coming days.
In 1986 United States customs officials confiscated diamonds carried in diapers by the Marcoses after their flight arrived in Hawaii from Manila.
Marcos, 76, filed a petition on September 15 to stop the sale of the collection including that of a 37.5 carat diamond. She says in the document that the diamond was left at the couple's home when they fled to Hawaii and it was then stolen before it ended up with "a certain Demetriou Roumeliotes, who attempted to smuggle them out of the country."
Roumeliotes is a Greek national who was prevented from fleeing Manila with 60 pieces of jewelry.
Proceeds from the sale of Marcos' jewelry would fund a land reform program in the Philippines. The jewelry was twice before prevented from auction due to litigation.
Hey, Yo, Phillipine Government! I agree with Imelda. Give her back her diamonds and jewelry! If you guys want to make some real money, auction off her shoes!
Watch Out!! Diamonds! China Is Coming!!
In the past several weeks we have been highlighting the fact that China is rapidly emerging as a world super-power in trade, manufacturing, and sales. Diamond companies from the USA, Israel, India, and Belgium are scurrying to open offices and manufacturing plants in China in order to take advantage of this explosive growth and potential windfall of spending by Chinese natives.
Now comes a report issued on Sept. 16th of China's explosive rise to economic superpower status confirmed by the Organization for Economic Cooperation and Development (OECD) think-tank in a new report predicting that it would leapfrog the United States and Germany within five years to become the world's biggest exporter.
Despite growing social strains and international concerns, OECD said there would be no let-up in China's breakneck growth.
Although China is not a member of the OECD - a group of the world's richest developed nations, the Paris-based organization published its first report on September 16 on a country that has been transformed within a quarter of a century from a struggling economy to an industrial titan.
It already accounts for 6 percent of world exports and its potential to supply the globe with low-cost manufactured goods has caused tensions in the global trading system, exemplified by the recent "bra wars" row. The OECD said China's share was on course to rise to 10 percent by 2010, by which time it would overtake the United States.
Despite 25 years of gross domestic product (GDP) growth at an annual rate of more than 9 percent, China is not expected to slow in the near future. The think-tank predicted that the world's most populous nation would overtake Britain, France and Italy to become the fourth largest economy within five years.
Hardly a day goes by without new evidence of China's surge up the ranks of the richest economies. This week Ernst & Young released a report predicting it would surpass the U.S. as the world's second largest consumer of luxury goods within 10 years.
The accounting firm forecast 10 percent to 20 percent annual growth rates in the sector until 2015, by which time sales are expected to exceed $11.5 billion, or 29 percent of the world's total, second only to Japan.
A separate study by the China Academy of Social Sciences predicted that the middle class would more than double in size by 2020 to account for about 40 percent of the 1.3 billion population.
If such statistics are not convincing enough, one must only look at the cityscapes of powerhouses such as Beijing, Shanghai and Chongqing, where the transformation is apparent in the forest of skyscrapers, shopping malls and roads.
But the OECD also identified areas that will have to be reformed if Beijing is to complete the transition from a centrally planned economy. These include strengthening the financial system, further steps to allow the currency to float freely and measures to reduce inequality.
Chiming with last week's report from the United Nations, the OECD said there was evidence of a growing gulf between urban and rural China and between rich and poor on the eastern seaboard. "Although economic dynamism has helped reduce the number living in absolute poverty, income levels are still low and inequality is on the rise, not only between the cities and rural regions, but also within the more prosperous coastal provinces," the OECD said.
The think-tank added that to reduce the gap in incomes, the government should make it easier for people to move from the country to the cities, but urbanization should also be carefully managed, partly though land law a reform of the land law.
The strains of China's spectacular growth are increasingly apparent. Energy shortages cause frequent brown-outs on the industrialized eastern seaboard during the peak demand periods of midsummer and midwinter. To ease demand, the factories of Shenzhen have to halt production one day a week and the lights on Shanghai's Bund, the old financial district, are cut on many nights.
Some of the biggest problems have been in the area of the environment and health. According to the U.N. and the OECD, China's ability to meet the millennium development goal of cutting infant mortality by two-thirds is being hampered by unequal access to healthcare, and this point was also emphasized by the OECD.
But the state is no longer the main force for change. The OECD noted that, as a result of "profound shifts in government policies, the private sector is now driving China's remarkable economic growth". Over half of China's GDP was produced by privately controlled enterprises.
"Made In China" might have made you laugh, sneer, and snicker in the past, but now the Chinese are laughing all the way to the Bank!
Platinum and Diamonds HOT HOT HOT at The Emmys!
Though consumers have been warming to yellow gold in recent months, television's biggest stars stuck mainly to a celebrity staple—platinum and diamonds—for Sunday's Emmy Awards.
Style-wise, the stars chose pieces that are sure to gratify jewelers. Earrings of all shapes were rampant, with hoop, chandelier and linear styles all popping up on the red carpet. Bracelets were the season's hot addition, with styles that ranged from diamond and gemstone line bracelets to gold bangles largely trumping cocktail rings, as stars strove to adorn their wrists instead.
Long necklaces, which have taken root within the fashion world in recent months, will enjoy longevity for at least for another season, if celebrity preferences are as strong an indicator as in years past.
Fed Raises Interest Rates Again: Diamond Price Increases Expected.
The Federal Open Market Committee increased its target for overnight interest rates by a quarter percentage point to 3.75% today. This is the eleventh straight meeting with a quarter-point rate hike. The Fed funds rate is now at its highest level since June 2001. The increase in the federal funds rate was expected by traders and economists on Wall Street. There was one dissent. Fed governor Mark Olson preferred that the Fed stand pat. The committee once again concluded its monetary policy stance remains accommodative and that this "accommodation" can be removed "at a pace that is likely to be measured."
Analysts are not as sanguine believing that the reversal of rising Interests rates is a long way off. Current upward price pressures in both the Oil and Precious Metals markets will spill over into the Diamonds sector as the cost of doing business increases.
Consumers can expect to be paying more for their Holiday jewelry.
Holiday Ads Target Male Egos.
The diamond industry continues to target the male ego with marketing plans this holiday season, as Diamond Trading Co. (DTC) ad agency J. Walter Thompson (JWT) has devised a fourth-quarter campaign asking men, "What will you do for love this Christmas?"
DTC's new multimedia campaign will tell its story through two sequential television commercials aired separately—the first in mid-November and the second at Thanksgiving. In the weeks between the spots, consumers will be able to follow the story through local radio ads and an interactive, experiential Web site. The campaign will be supported by national newspaper insertions and out-of-home placements in top diamond jewelry markets, with ads highlighting three-stone diamond jewelry, diamond right-hand rings and diamond solitaires.
The ads depict the story of a man who gets stranded at an airport during a snowstorm as he is trying to return home for Christmas. After talking to his wife by phone, looking at the three-stone diamond necklace he's gotten her for Christmas strengthens his resolve, and the commercial ends with a shot of him running through the airport terminal, followed by the teaser: "To be continued at ADiamondIsForever.com." Consumers can then follow the story through a DTC Web site enabling them track the man's journey home. Finally, the second commercial will debut during Thanksgiving week, when viewers will find that the man has commandeered a snowplow to get home.
Guys, what do you think? Appealing?
Diamond and Precious Metals Week In Review: 9/30/05
This week saw strong trading activity at the Hong Kong show with good overall demand for diamonds especially larger stones. Excellent makes and over-sizes brought premium prices. Trade is concerned about levels of sales for this upcoming Holiday Season as consumer confidence falls amid rising oil prices.
Gold hit a high of $473.50 in trading yesterday with Platinum rising to $929 and Silver making a big jump to $7.51.
Analysts expect some short-term volatility in the Precious Metals but over the next few months expect Gold to rise to the $500.00 area.
Some dealers said gold was prone to profit-taking but would find support at around $470 an ounce, thanks to firm Tokyo gold futures and physical demand at lower levels.
"Where do we go from here, is a big question. I still don't, at this present moment, see a reason to be selling gold. I wouldn't be surprised if we went towards $475 during next week," said Darren Heathcote, head of trading at N M Rothschild.
Dealers said gold was likely to watch the dollar and crude oil for direction. The euro was higher than New York levels at $1.2044.
The market awaits the payrolls report for September due next week, and Thursday's report showing that U.S. jobless claims fell more than expected suggested the data would be stronger than forecasts.
Israeli Cutters Compete with China, India.
Israeli diamond manufacturers in an attempt to become more competitive with the Chinese and Indians have seen the Israel Diamond Institute’s (IDI) technological center develop and offer Israeli companies an automated machine that will polish diamond sizes of .25 carat to one carat at $17 per carat.
The new service comes about as Israeli scientists have completed a fully automated cutting and polishing machine. The technological center is looking for a commitment of at least 3,000 carats a month from Israeli dmanufacturers in order to break even for the service.
Israel has been losing much of its manufacturing of smaller diamonds to countries with lower wages such as India and China. The IDI has been working on the fully automated project in an effort to transform Israel into a more competitive market in the manufacturing of small to medium-sized diamonds.
Developing a machine that can do this for irregular shaped diamond rough such as Marquise, Oval, Pear, etc. will really be a technological feat!!
Diamond and Precious Metals Week In Review: 10/7/05.
Steady global demand for large better quality diamonds. Concerns that U.S. holiday season may be adversely affected by high fuel costs and uncertain economic outlook.
Gold is hovering near 17-year highs. What that means depends on who's doing the interpreting.
According to one school, demand from China and India is pushing the price higher, but another school says gold is up because Western investors are convinced inflation is much higher than their governments admit.
Gold always has been the top investment of choice for bomb-shelter-building doom-and-gloomers - those accumulators of canned goods whom everyone avoids at the family gatherings.
While jewelry accounts for 82 percent of the gold market, "the catalyst of the day is obviously inflation jitters," he said.
Worldwide demand has increased. Demand in India set a record last year, and demand in China jumped as well. In fact, demand was so strong, gold prices held steady in the first half of the year as central banks internationally sold record levels of gold supplies, Hill said.
While gold prices usually fall when the dollar rises, that equation hasn't held recently.
Mounting inflationary concerns, driven largely by higher energy prices, have pushed gold higher despite a stronger dollar.
Further upward price pressure on Gold is expected as Gold consumption in India, the world's largest importer, is expected to surge nearly 33 per cent in 2005 to 850 tonnes because of higher incomes and good farm output, the World Gold Council said on Thursday.
Platinum is up $6 to $935.00 and Silver is up to $7.63.
Stay tuned.
Diamonds Cut Deep.
Today's Financial Times reports that some of the world's largest diamond manufacturers have embarked on a second wave of development in China to benefit from Asia's growing consumer markets.
Leo Schachter Diamonds, one of the largest diversified, privately held diamond companies, with $650 million in annual sales, last week opened a manufacturing operation in China. It is the first U.S. company to establish a diamond cutting factory in China.
The company is one of De Beers' largest sightholders. The new factory premises has dormitories, dining facilities, a computer room, sports facilities, a shop and a library. There is room for 800 recruits to learn to saw, cut and polish diamonds of all sizes and colors. Training includes the use of laser-driven computer systems for precision cutting.
Since starting production in May in 2005, the plant accounts for 50 percent of Leo Schachter Diamonds' total diamond production by volume. The rest is produced in Botswana and South Africa. China offers manufacturers cheap labor, a skilled and productive workforce and a government that favors business.
About 20 percent of the company's diamond sales to jewelry chains and stores are generated in the Far East. Europe accounts for 15 percent and the U.S. accounts for 65 percent, said Elliot Tannenbaum, CEO of Leo Schachter Diamonds. About 10-million couples marry in China each year. In 2004, jewelry sales value reached $14.5 billion. By 2010, sales could amount to $22 billion, which would make China the world's top jewelry market, says Flanders Investment in Hong Kong.
At least 10 diamond traders from India have set up manufacturing operations in China, lured by the country's jewelry-design skills and operational efficiencies. China has a relatively high production capacity with a highly skilled workforce.
China's diamond manufacturing dates back to the 1970s, when there were a few diamond-cutting plants with about 500 workers. The number has grown since the 1990s, propelling the country to number two worldwide in diamond cutting volume and the number of workers, says the Flanders Investment report.
China has been a signatory to the Kimberley Process since 2003, and it has also invested significant effort in regulating its diamond sector by creating the Shanghai Diamond Exchange. It has cut its diamond import tariff to zero.
Sales Of Diamond Crosses Surge in U.S.
The Economic Times Of India today reports that Hurricane Katrina and Rita in the United States has resulted in record sales of Diamond Crosses by jewelers and jewelry accessory exporters from India, to consumers in the United States.
This high demand for crosses, which is revered by the Christian community, and other religion-related jewelry and accessories started in the beginning of September when the forecasts for Katrina first came.
Several Indian exporters are reporting a 500 percent increase. The demand is mostly for diamond studded crosses which range anywhere between $99 and $1,000 for the end consumer. The size of diamonds for which orders have been received by the exporters in India is between a quarter of a carat to 4 carats and are studded in white gold.
U.S. Jewelers Confident Despite Rising Fuel Prices.
Figures released today by the U.S. Commerce Department show total retail sales for September increased from a year ago, despite rising fuel prices and the economic impacts of Hurricanes Katrina and Rita.
Sales of goods, which include non-general merchandise categories such as autos, gasoline stations and restaurants, rose 0.2 percent seasonally adjusted from August and increased 7.1 percent unadjusted year-over-year.
According to the National Retail Federation (NRF), retail industry sales for September, excluding automobiles, gas stations, and restaurants, rose 7 percent unadjusted over last year and increased 0.8 percent seasonally adjusted from August. The gains, which led third quarter sales to rise 6.4 percent over 2004, were stronger than NRF had forecast.
With the approach of the all important Holiday Shopping season, U.S. Jewelers are confident of a strong season, notwithstanding the increase in fuel prices and the rising prices of Gold, Platinum, and Silver.
Diamond Dealer Murdered In Greece.
The Associated Press reports this morning that Police in Greece have found the body of diamond dealer, Shmuel Levy, who disappeared shortly after arriving in Athens on October 10.
Four men have been arrested on murder charges including a lapidary expert and a business associate in Athens who said they thought Levy was carrying diamonds, according to police authorities. Levy apparently died from multiple blows to his head and was found 30 miles outside of Athens. Levy’s cash, passports, and diamonds were found in his rented apartment.
Levy, 66 years old, was a resident of Jerusalem who held both an American and an Israeli passport. His son flew to Greece after his father failed to return to Israel on his pre-booked flight. In Greece, Levy’s son appealed to both the American Embassy and the Israeli Embassy for help. He also called upon Interpol to investigate the disappearance of Shmuel Levy.
DeBeers Reminds Members On Diamond Business Ethics.
In a letter to its 93 sightholders, De Beers warned industry players to uphold the highest standards for the diamond on approach to the Christmas holiday shopping season.
Diamond Trading Company (DTC) managing director designate, Varda Shine, said, "We all have an interest in promoting consumer confidence, not just individually, but for the benefit of the wider industry."
The industry and the diamond itself must be "beyond reproach" across the diamond pipeline she wrote. "Each individual sector faces scrutiny and potential challenge from its various observers and interested stakeholders. Any issues that may affect consumer confidence in one sector may have a domino effect on the others."
All parts of the pipeline must demonstrate responsible business practices, and Shine specifically drew attention to De Beers' Best Practice Principles (BPPs.) As a sightholder "you have formally agreed to adhere to the BPPs" and sightholders responsibilities extend to their own suppliers and customers.
Shine said that "malpractice" in the industry is "from the fringes" of the industry, and such actions could seriously damage consumer confidence by mere association with poor practices she said.
The DTC says it would take action against any sightholder or associated business, whereas rumors of unethical standards are proven true. "Irrespective of the BPPs, there is a moral duty for us all to aspire to the highest standards in respect of our business, social and environmental responsibilities as industry leaders, particularly given that we are dealing with the ultimate luxury product, in which so much human emotion is bound," Shine said.
Botswana Brings Its Diamonds Back Home.
The London Times today reports of a momentous decision that will have great impact on the Diamond Industry.
In a historic turn for the industry, Botswana, the world's largest diamond producer by value, has broken De Beers' control over the distribution of 50 percent of the world's diamonds by bringing its diamonds back home.
In a move that marks the end of an era in which African diamonds sold to De Beers were marketed in London through a complex sightholder system of privileged clients, the Botswana government on October 27 said that De Beers' supplies would move to Botswana.
An official in the capital Gaborone told Business Day that De Beers had agreed under the new sales contract that resulted in the renewal in 2004 of the lease for Jwaneng and Orapa mines, to move the aggregation of diamonds from London to Botswana.
“We have not completed the total mix, but southern Africa is the basis for the aggregation. We hope Angola and Democratic Republic of Congo will agree as members of Southern African Development Community (SADC),” said the Botswana official.
Assuming all countries agree as soon as possible, the Diamond Trading Company should start moving some of their activities such as training and developing security. A new building for the corporation in Botswana is expected to be completed by 2007.
The Botswana official's comments came after President Festus Mogae on October 26 called on South Africa to allow the aggregation of its rough diamonds at its trading company in Gaborone instead of London. Botswana's president was delivering an address at a joint session of the South African Parliament.
Another reason for the move was the cost of aggregation in London. “We, the producers are not getting enough back in terms of revenues and part of it is investment. If they aggregate everything, you are migrating say $5.9 billion worth of diamonds to a country. That would have a positive impact on the economy and that of SADC countries,” said the official.
Several sightholders with cutting factories in southern Africa have received sights or allocations by setting up manufacturing plants under a series of new guidelines designed by De Beers to meet local demands for beneficiation.
But these guidelines could be modified due to the pressures applied on De Beers by producer countries, declining market share and ongoing antitrust scrutiny. Although nobody knows precisely where the pendulum will swing, the Diamond Trading Company sightholders outside Africa will remain their sightholders.
"South Africa will still have their own sightholders, but they will take the diamonds that are aggregated in Botswana, the same for Namibia," the official said. Sightholders who wished to continue buying their rough boxes or allocations in London could do so.
"But we are encouraging Diamond Trading Company sightholders to come to Gaborone, it will have a positive spin on tourism,” said the Botswana official. De Beers said the details were still under discussion and could not comment further.
Now you understand DeBeers strategy of the last few years in their implementation of their Supplier of Choice Program which is taking them into direct retail.
Gemex Introduces Brilliancescope "Live Report" to Showcase Diamonds On-line.
One of the concerns that on-line diamond shoppers express is their inability to "see" the diamonds listed on these diamond websites.
Well, a solution is here: Gemex Systems,(www.gemex.com) manufacturers of the Brilliancescope, a light imaging spectrophotometer, have just introduced an exciting new feature called "Live Report". This report is an animation of the diamond's light performance and allows you to "see" the diamond "live".
You have the ability to zoom in and out to get clearer looks at the diamond and you can also specifically focus on different aspects of the diamond's light performance by looking at white light, color light, or scintillation separately.
We believe this is a great addition for on-line shoppers and will help consumers to "see" the diamond.
Here is a graphic: Colored arrows indicate different features.
Below is a link to one of our SuperbCert Super-Ideal Cut Diamonds that features this animated light performance analysis.
http://www.exceldiamonds.com/diamond/1882.html
Click on the Brilliancescope link and watch the animation load.
Have fun!
Diamonds Love Politicians: Or Is It the Other Way Around?
The Gemological Institute of America (GIA), the worlds foremost Research and Diamond Grading Laboratory announced yesterday that Former U.S. Secretary of State Madeleine Albright is scheduled to be the lead keynote speaker at their 4th International Gemological Symposium, slated for Aug. 27-29, 2006, at San Diego's Manchester Grand Hyatt Hotel.
Madeline Albright
When appointed to the post in 1997, Secretary Albright became the first female secretary of state in U.S. history. At the time, she was the highest-ranking woman in the history of the U.S. government. Preceding her appointment, she served as the U.S. permanent representative to the United Nations, and was a member of the President's Cabinet.
"In keeping with our symposium theme of 'Navigating the Challenges Ahead,' Secretary Albright's significant experience in U.S. international strategy and policy perfectly position her to address the important business and geopolitical issues facing the world today. We are delighted and appreciative that Madeleine Albright will be our lead keynote speaker for symposium," said William E. Boyajian, GIA president, in a statement.
Albright founded The Albright Group LLC, a global strategy firm she currently heads. She is also chairman of the National Democratic Institute for International Affairs, co-chair of the Pew Global Attitudes Project and president of the Truman Scholarship Foundation. Additionally, she serves on the board of directors of the Council on Foreign Relations and on the board of trustees for the Aspen Institute.
Albright is a jewelry enthusiast, and is currently at work on a book about her eclectic collection of fine and costume brooches, scheduled for publication in 2008. The illustrated book will discuss the historical and personal significance of her collection, as well as her use of brooches as a tool of diplomacy. Her autobiography, Madam Secretary: A Memoir, was a New York Times bestseller. Albright's upcoming book, The Mighty and the Almighty: Reflections on America, God and World Affairs, will be published next May.
GIA's symposium is expected to bring together upwards of 1,500 participants from around the globe to gain firsthand knowledge from gem and jewelry experts representing every aspect of the international trade: diamonds, colored stones, pearls, gemology, jewelry design, manufacturing, marketing, branding and retail. The program will include presentations by industry leaders and business figures from both within the trade and outside of it, plus "war rooms," panel sessions and social events.
The symposium's opening session is co-sponsored by ABN AMRO Bank and the VNU Expositions Jewelry Group. For more details on the conference, visit: www.gia.edu
Hey, great gig, Madeline; if you need help, Imelda Marcos is available for consultations. Just make sure there's a Manolo Blahnik shoe store near the Convention Center!
Thai Government tightens the screws on Diamond & Jewelry Money Laundering.
Thailand's anti-money laundering office, Amlo, tightened its grip on gold and jewelry trade, requiring them to report any cash transaction of the valuable goods worth $24,310 (THB 1 million) or more. The threshold is about half the amount jewelers would comply with in the United States beginning January 1, 2006.
The new regulation will apply to more than 6,000 gold shops and thousands of jewelry shops nationwide, according to the Amlo secretary-general, Pol Maj-Gen Peeraphan Prempooti.
New rules go into effect in March 2006, and require all traders and businesses, except financial institutions, to report gold and jewelry cash transactions in excess of threshhold. A fine of up to $7,293 (THB 300,000) per transaction will be imposed upon any party failing to report transactions to Amlo.
All gold and jewelry shops, pawnshops and agents involved in the exchange of valuable objects must abide by the regulation under the money laundering act of 1999, according to Prempooti, as are in the high risk category of being exploited by money launderers.
Pol Maj-Gen Peeraphan added the regulation was in line with international practices determined by the United Nation's International Center for the Prevention of Crime. Any country ignoring the practice would be blacklisted and could face financial barriers such as blockades of international money transfers.
Jitti Tangsithpakdi, president of the Gold Traders' Association, said the new rule was unlikely to affect the domestic gold business very much, but it could deter those who seek a lucrative investment return. According to Tangsithpakdi, lower deposit rates and higher oil prices over the past two to three years have prompted a number of cash-rich investors to shift to lucrative gold, mostly by trading bullion. The country imports 100 tons of gold on average a year. The figure could go up to 110 tons if the economy is in good shape.
The Fin Center, a division of the U.S. Government's Homeland Security Office is putting into effect it's own anti-money laundering regulations starting at $50,000 beginning January 1, 2006. This is in direct response to 9/11 and designed to make it more difficult if not impossible for terrorists to fund their activities.
DeBeers Arrives In Canada!
National Jeweler today reports that De Beers Canada Inc. announced it has reached an agreement with the Yellowknives Dene First Nation on the terms of an Impact Benefit Agreement (IBA) for the Snap Lake project, set to be the company's first operating Canadian-based diamond mine.
The mine is expected to employ 500 people during full production and to produce 1.5 million carats annually. Scheduled to open in the third quarter of 2007, the mine is projected to reach full production in 2008, according to a joint media release from De Beers Canada and Yellowknives Dene.
The IBA follows a community meeting where members of the Yellowknives Dene voted in favor of provisions in the proposed agreement, and made a resolution authorizing Chief Peter Liske and Chief Fred Sangris to execute the agreement. The IBA establishes the specific benefits that the Yellowknives Dene will receive as a result of the project, including: employment, business opportunities, training and development and financial compensation for loss of the use of the land while it is being mined.
"As the Snap Lake Project has advanced, and during the IBA negotiations, we have managed our business to ensure that the Yellowknives Dene experience tangible benefits from the Snap Lake Project," said John McConnell, vice president of NWT projects, in the statement. "Concluding this agreement builds on our success in this area and provides a more formal mechanism to define a positive, long-term relationship with the community."
"Our negotiation team has worked very hard over the past three years and we are now satisfied that we have reached a final agreement that will benefit the Yellowknives Dene First Nation through employment, training and business opportunities for the life of this mine at Snap Lake," Liske said in the release.
Sangris, chief of the Yellowknives Dene First Nation Ndilo, said the benefit agreement would still allow for the traditional way of life in the Drygeese Territory, even while providing opportunity.
"We know De Beers will respect the land, water, animals, environment and the spirit of intent in this agreement," he said.
De Beers Canada CEO Richard Molyneux said the company recognizes the importance of good relationships with Aboriginal communities.
"This IBA with the Yellowknives Dene reflects our commitment to ensure that the Aboriginal groups impacted by the Snap Lake Project benefit from the project through participation," he said, adding that the agreement follows closely on the heels of a similar one signed by De Beers and the Attawapiskat First Nation earlier this month for the Victor Project in Northern Ontario.
While the IBI was signed on Monday, a formal signing ceremony to involve the community will be held on Jan. 1.
Which Would You Rather Have? Health or Money? Read What These Jewelers Picked!
Swissinfo reports this story which could have come straight out of Ripley's Believe it or Not or Alfred E. Newman's "Mad Magazine".
BaselWorld organizers dropped their claim against the Federal Health Office for imposing a ban on Asian exhibitors during the 2003 Severe Acute Respiratory Syndrome (Sars) scare.
Organizers of the Swiss exhibition had initially sought $39 million in damages from health authorities for banning 400 exhibitors, staff and visitors from Hong Kong, China, Singapore, and Vietnam just two days before the watch and jewelry fair opened in Basel and Zurich. The organizers gave up their claim following an October 21 federal court ruling that the health authorities’ decision had been justified.
The court tribunal rejected claims from Swiss Exhibition that they had lost millions of Swiss francs in business as a result of the health authority’s decision.
Health office director, Thomas Zeltner, at the time had said that the restrictions were designed to prevent the spread of Sars. The health authorities had also stated that underestimating the potential impact of a Sars epidemic in Switzerland could have a disastrous impact on the country.
Swiss Exhibition said that such measures were unjustified and would not stop a Sars outbreak, adding that the decision threatened its livelihood. The interior ministry confirmed the health office decision in December 2004, prompting an appeal to the country's highest court.
"If there is a similar case, we know what the legal situation is now," said fair spokesman Christian Jecker last month. "We could face the same kind of problem with bird flu."
Baselworld itself has faced claims worth millions of Swiss francs from Asian exhibitors after the ban.
The annual fair is not open to the public and is the biggest of its kind in the world. It is estimated that approximately 50 percent of the global watch and jewelry turnover at the wholesale level comes from business conducted during the eight days of the BaselWorld exhibition.
In 2003, Switzerland’s Federal Health Office banned companies from affected nations. The 2003 event was the first to be co-hosted by Zurich, but BaselWorld organizers decided to hold future editions in Basel alone. In 2005, the fair attracted 89,700 visitors. In 2006, BaselWorld will hold its 34th edition from March 30 to April 6.
$100 Oil? Effects on the Diamond & Jewelry Industry?
When it comes to the prospect of $100 oil prices, it's still a question of when, not if.
Marketwatch has a very interesting article this week on the prospects of reaching $100 Oil.
Earlier this year, speculation over a spike past $100 a barrel was fed by terrorist activities, severe weather and political and economic uncertainties. In April, Goldman Sachs even warned of a "super-spike" period that could push oil to $105 per barrel.
But by late August, around the time when crude-futures prices reached a record level near $71 a barrel, MarketWatch's editor-in-chief questioned whether Hurricane Katrina had helped mark the peak for oil. See David Callaway.
"The $100 a barrel was never going to be a near-term expectation without a cataclysmic terrorist attack on a significant oil infrastructure," said Jason Schenker, an economist at Wachovia Corp.
Indeed, that price scenario was "always an exaggeration of a low-probability event," said Michael Lynch, president of Strategic Energy & Economic Research.
What ever happened to $100 crude? It just got postponed -- that is, at least until the next hurricane season or some geopolitical bombshell.
When it comes down to it, traders must remember the reason crude reached record highs in late August. "There was a massive natural disaster that caused supply lines to shut down and we're still seeing the impact of," said Schenker. So "it would take something significantly greater than Katrina, Rita and Wilma combined" to get prices to $100.
Crude prices are down about 18% from their record high in Katrina's wake.
Even so, some analysts refuse to relinquish that triple-digit price, mainly because the world is depleting its oil reserves and there's never a shortage of price-supporting events.
"What ever happened to $100 crude? It just got postponed," said Agbeli Ameko, a managing partner at First Enercast Financial. "That is, at least until the next hurricane season or some geopolitical bombshell."
"In this 'peak-oil' and 'terror-premium' environment, the market will remain in reach of the $100 barrier," he said.
Traders have been keeping a close watch on domestic and international supplies, but it's important to take a closer look at oil reserves and production to calculate just how much oil the world has left.
There's probably about 1 trillion barrels of oil left worldwide -- and 60% of that is in the Middle East.
There's probably about 1 trillion barrels of oil left worldwide -- and 60% of that is in the Middle East, said Dan Hassey, a senior research analyst for Boca Raton, Fla.-based Gold & Energy Advisor.
"Supplies are so tight and demand is growing and unfortunately, a lot of the supplies we get are [from] some very unstable places including ourselves, as we learned in the last couple of summers of hurricanes," he said.
Of the world's total, Saudi Arabia holds 23% of the proved oil reserves, or about 263 billion barrels, according to a report from the Gold & Energy Advisor, which based some of its figures on an article in Barron's. A total of about 30% comes from Iran, Iraq and the United Arab Emirates.
Increasing oil prices fuels inflation. Gold and Platinum are hitting highs on a daily basis which if sustained will lead to higher jewelery prices.
GIA Installs Destino as Chief: Announces Major Changes to Lab.
The Gemological Institute of America (GIA) has announced sweeping changes in the face of the New York lab grading scandal that has rocked the organization.
Ralph Destino, former chairman and president of Cartier, Inc., has been appointed chairman of GIA, a newly created position, it was announced Monday by GIA's Board of Governors. The position is effective immediately. Current GIA president Bill Boyajian will remain with the organization as president, but he will report to Destino, according to a GIA release.
"Following a three-day board meeting, it was determined that Mr. Destino, a longtime Governor of GIA, is uniquely qualified to assume leadership," the Board of Governors said in the release. "He has our deepest respect and our fullest confidence. We believe that this appointment, as well as the new initiatives we are implementing, should signal to the diamond trade, in the strongest terms, the seriousness and depth of commitment the board has with regard to ensuring that the industry can place its trust in GIA as the standard for diamond grading, worldwide. "
The news follows GIA's Oct. 18 announcement that it had fired four of the 242 employees at its New York gemological laboratory and that lab head Thomas C. Yonelunas had resigned—though he was not implicated—amid an independent review into grading improprieties at the lab. The review was prompted by a lawsuit accusing the GIA lab of upgrading diamond grading reports in exchange for money.
In addition to Destino's appointment, GIA also announced the following changes:
* The GIA lab will discontinue its current "Membership" structure and will introduce a new single price structure for all diamantaire clients, worldwide. This policy will go into effect Jan. 1, 2006. Further details will be forthcoming.
* To avoid any appearance of impropriety, GIA will, effective immediately, no longer solicit or accept donations from diamantaires whose stones are graded in the lab.
* Following the recent independent investigation mandated by the Board of Governors, the names of those diamond dealers who may have violated GIA's Code of Ethics have been turned over to law enforcement officials. GIA notified these dealers that it will no longer accept diamonds from them for grading.
"I am honored to take on this active management role and pledge to work tirelessly with the Board of Governors, as well as partnering closely with Bill Boyajian, to instill a new culture at GIA," Destino said in GIA's release.
In the statement, Destino stressed, "If we are to continue to earn the trust of diamond dealers, other trades people and the public, we must maintain the very highest ethical standards and a zero tolerance policy that are beyond reproach. These initiatives are just three of the many new policies and practices that we plan to announce in the coming weeks and months that we believe will be embraced by the industry. The Board of Governors, as we have recently promised, has formed a special Operations Committee to address other important policy issues that will lead to additional initiatives."
The news comes on the heels of GIA appointing Linda Scholl to the new post of lab compliance officer. Scholl will oversee the enforcement of GIA's compliance policies for the laboratory.
A special letter was mailed to all GIA clients on Nov. 15, from recently appointed New York lab head Tom Moses, who wrote:
* All GIA employees must avoid situations that conflict in any way with GIA's ability to serve its clients. Therefore, no employee may solicit or receive compensation in any form from lab clients, including cash and/or non-cash gifts or entertainment. There is no exception to this rule and any violations will result in immediate dismissal.
* GIA has retained EthicsPoint, the leading provider of services to support compliance, workplace ethics and corporate governance, to enable GIA clients, as well as GIA employees, students and vendors, to communicate openly, anonymously and safely with GIA management and its board. A 24-hour, 7 day-a-week hotline has been established for this purpose. The number is: (866) 295-2625 (toll-free in the U.S. and Canada) and will begin operation on Nov 21. [Also beginning Nov. 21 outside of the United States. and Canada, one may contact a local operator to place a collect call to the following U.S. phone number: (503) 726-2269 (only an operator can place the collect call). The multilingual Web site is also available for reporting: Ethicspoint.com]
* GIA has taken steps to strengthen its Professional Ethics and Conduct Compliance Statement. Among its new principles and policies, is the requirement for employees to inform GIA senior management of any code of conduct violations that they may witness or of which they become aware. Failure to do so will result in dismissal.
"These first steps are just the beginning of a new culture that is shaping at GIA," Destino said in the release. "We take this matter very seriously, and we expect both our employees and clients to do so as well."
Cash Is Back! Can You Believe It?
Cash has replaced credit cards as the second-most popular payment method for holiday gifts this season, according to a new National Retail Federation (NRF) survey.
The "NRF 2005 Holiday Consumer Intentions and Actions Survey," conducted by BIGresearch, finds that check/debit cards remain the most popular payment method this season. It finds that 34.3 percent of shoppers will use debit/check cards, 28.5 percent will use cash, 28.2 percent will use credit cards and 9.1 percent will use checks.
CDs, DVDs, videos and video games remain the most popular gifts, with 61.2 percent of consumers planning on purchasing at least one as a gift. Other popular gifts this year include clothing and clothing accessories (60.3 percent), gift cards (52.5 percent) and toys (45 percent). Many consumers (30.1 percent) also plan to include food or candy in their holiday gift purchases.
As of last week, the average shopper had completed 24.9 percent of his or her shopping, with 68.1 percent less than a tenth finished, according to the report.
Is there a full Moon out there? Shoppers opting to pay with the green rather than plastic!! Gotta be Un-American!
Criminal Risks Closes London Diamond Exhibit.
In what had been billed as the world's largest collection of diamonds on display, London's Natural History Museum exhibit 'Diamonds' abrubtly ended some three months early without any warning on November 23.
According to Diamonds exhibit director, Michael Dixon, the closure was decided overnight after the police advised the museum that closing the exhibit was best for security reasons.
"Since we began planning this exhibition, we have followed Police advice to the letter in terms of ensuring the security of our staff, our visitors, and the exhibition specimens," Dixon said in a statement.
"That advice changed on the afternoon of Tuesday 22 November. It indicated a heightened criminal risk to the exhibition."
No specific details on the threats or risk were made available. The museum said it would refund all pre-booked tickets.
76 Carat Diamond Found!
Petra Diamonds Limited has recovered a 76 carat diamond from the Sedibeng mine in South Africa. The company expects to sell the diamond for about $500,000. In 2004, the same mining complex yielded several large diamonds including a 57 carat diamond that sold for $489,000 and a 42 carat diamond, which sold for $282,000.
"The Sedibeng mine has consistently produced high-quality diamonds, and recoveries of such special stones combined with the growth in total carat production means that the South African operations will continue to generate increasing revenues for the group," Petra stated in their announcement.
Hello!? DeBeers Mining Comes To Canada.
DeBeers is going truly global.
Press reports indicate that De Beers Canada Inc., has filed an application with the Mackenzie Valley Land and Water Board for permits to construct and operate a mine at Gahcho Kue, located in the Northwest Territories, approximately 300 kilometers northeast of Yellowknife.
The Gahcho Kue project is a joint venture between De Beers Canada (51 percent,) Mountain Province Diamonds Inc., (44 percent,) and Camphor Ventures (5 percent.) The project is located 90 kilometers east of Snap Lake, De Beers first diamond mine in Canada which is currently under construction.
With an estimated resource of 31 million tons, the Gahcho Kue project will be an open pit mine. The construction of the mine is expected to cost an estimated $706 million and will employ up to 600 people during the peak of the construction and close to 400 people durinig the operations phase of the mine.
The mine is expected to have a life of 20 years and yield an average of three million carats annually for the first 15 years.
“Advancing this project is consistent with our strategy of maintaining a pipeline of projects to meet increasing global demand as well as contributing to the sustainability of the Canadian diamond industry,” said Richard Molyneux, CEO of De Beers Canada.
“Gahcho Kué is evidence of the importance we attach to partnerships with Canadian exploration companies as a winning formula for growing the diamond industry in this country.”
The company anticipates that the project application will be referred to the Mackenzie Valley Environmental Impact Review Board for an environmental assessment.
De Beers is investing approximately $2 billion over the next three years in the Canadian diamond industry. Snap Lake is scheduled to open in 2007. The Victor mine will commence construction early in 2006 and will be in production by the end of 2008.
Global indeed! Prediction here: Look for the GIA (Gemological Institute of America) to open offices in a major Canadian city (Toronto?) within the next few years.
A First! DeBeers Agrees to Settle One U.S. Lawsuit.
"For decades, De Beers has possessed monopolistic power in the diamond industry..." reads the opening line of a class action lawsuit against De Beers brought by Emert and Katie Null in July 2005.
The Nulls accused De Beers of illegally restraining trade, controlling and limiting diamond inventories, and falsely advertising the scarcity of diamonds in order to boost prices.
The Nulls brought the class suit "on behalf of all people who purchased diamonds in the state of Illinois," but excluded sightholders, diamond dealers, manufacturers, wholesalers and retailers. The plaintiffs say members of the class paid more than fair value for diamonds purchased due to monopolistic practices by De Beers, and sought "less than" $75,000 per and for individual class members plus legal fees.
On November 30, 2005, De Beers released a statement saying an "agreement has been reached, and a preliminary approval order issued, to settle the majority of civil class action suits filed against De Beers in the United States."
De Beers said that in settling the claims, it does "not involve any admission of liability on the part of De Beers and will bring an end to a number of outstanding disputes."
The settlement announced by De Beers is for $250 million, and they name the following plaintiffs/cases: Null vs. DB Investments, et. al.; Sullivan vs. DB Investments, et. al.; Hopkins vs. De Beers Centenary AG, et. al; and Cornwell vs. D.B. Investments.
The cases are all similar in nature and list the same causes of action for price fixing and monopolistic practices. In June 2004, about one year prior to the Null's amended complaint, Arrigotti Fine Jewelry and two of its customers, all of whom resided in California, sued De Beers for violating anti-trust laws --or the Sherman Act-- in Sullivan vs. DB Investments.
The Sherman Anti-Trust Act is meant to limit a combination of corporations from agreeing to not lower prices below a certain rate in order to reduce competition and control prices within an industry.
"Defendants [De Beers Group of companies] routinely acknowledge that their control over the diamond industry constitutes an illegal monopoly that violates United States antitrust laws," the plaintiffs wrote.
Arrigotti, Shawn Sullivan, and James Walnum, alleged supply quotas were withheld from the market, that De Beers refused to work with anyone other than "entities under their control," restricted and price-fixed polished diamonds.
Furthermore they claimed De Beers conspired with sightholders to artificially keep polished diamonds out of "free and open competition."
Arrigotti's case requested of the court to name De Beers as engaged in unlawful contract, conspiracy, and that it indeed violated the Sherman Act. The court was asked to permanently restrain the defendants from continuing the practice of monopoly and conspiracy in the United States.
De Beers states, "We believe that settling these suits is the most sensible and responsible course of action for the company to take."
"We do not wish to comment or speculate on the approval process itself, or the issues under consideration by the court. Therefore, for the time being, we have nothing further to add to this statement."
Outgoing managing director Gary Ralfe was quoted in the announcement as saying the settlement is "behind us, De Beers can now focus greater attention and resources on being a leader in all of our markets and playing a leading role to address humanitarian issues such as the fight against HIV/AIDS."
De Beers says any final settlement is subject to approval by the United States District Court for the District of New Jersey and the company hopes their offer is approved in 2006.
There is currently a major lawsuit against DeBeers filed by the W.B. David Corp in reference to losing their Siteholder status
due, they claim, DeBeers implementation of their Supplier of Choice program. This lawsuit is in process.
GIA Goes Global.
The Gemological Institute of America (GIA) inaugurated its new Taiwan branch during a ribbon-cutting ceremony on November 17. GIA graduates and guests from across Taiwan attended the ceremony.
Similar to the institute’s relocation in London, GIA Taiwan moved across the street to a larger location that provides room for more classrooms, ceremonies and meetings. The Taiwan campus opened in 1991 and has increased its student enrollments, so much so that a new 5,500 square foot facility was required to meet the demand.
The new campus comprises of four classrooms. Two classrooms are dedicated to the on campus graduate gemologist diploma program, one is for jewelry design and CAD/CAM classes, and another is for extension classes and student labs.
In other related news, the GIA held its first ever GIA Pearl Grading Extension class in Sri Lanka on September 10. It was the GIA’s first instruction in Sri Lanka and was attended by 18 students. GIA Thailand’s Manager of Gemology Education, Surachart Panjathammawit, taught the class.
“Sri Lankans are tremendously excited about the Institute’s renowned hands-on gemological training,” said GIA Thailand Director Randy Parks, who also indicated that the institute will soon teach additional extension classes in diamond grading, gem identification, and colored stone grading in Sri Lanka.
Verify Your Diamond Grading Report Online.
GIA (Gemological Institute of America) announced today that consumers and retailers will soon be able to check information on any GIA Diamond Grading Report or Diamond Dossier issued post January 1, 2000 via GIA’s new online Report Check service, due to begin on January 1.
The new online service is free, and comes on the heels of recent reports of counterfeit grading certificates found in London and in Antwerp. The service will be available by entering the GIA report number and weight of the diamond, and will provide all of the critical information on the original report, including a cut grade if applicable. The Report Check will also help determine whether the diamond should be submitted for a new cut grade.
In a press release on December 21, the GIA’s laboratory and research senior vice president, Thomas Moses, said that the new service will dissuade the use of counterfeit GIA reports as well as help preserve public trust in diamonds. The institute will also update the laboratory section on its website to provide customers with useful information on how to submit diamonds to the GIA lab as well as on day-to-day business.
In a separate release on December 21, the GIA reminded clients that those who own a diamond with a GIA Diamond Grading Report or Diamond Dossier will be able to submit their old report for a new version. The new version will include the new cut grade for D-to-Z color, standard round brilliant diamonds.
For round brilliant diamonds graded between August 1 to December 31, 2005, the new report will be issued free of charge without the diamond through March 2006. For round brilliant diamonds graded from January 1 to July 31, 2005, a new report will be issued for a fee of $15 through March 2006. For round brilliant diamonds graded prior to January 1, 2005, a new report will reflect the current date and will cost 75 percent of the diamond grading fee. After March 2006, services will return to standard fees, the GIA said.
The GIA said its education branch will introduce the new Diamond Cut Grading System in its on-campus diploma programs and lab classes in January 2006. Hands-on lab classes will also be available for graduates of the Diamonds and Graduate Gemologist diploma programs in order to update them on the new cut grade. GIA Education will also offer seminars at selected trade shows.
China Brides Want Diamonds.
Prices for diamonds in China are increasing between 30 and 40 percent according to Kevin Tomlinson, director of natural resources for Williams De Broe in London. Tomlinson told Australia's PM radio show that demand for diamonds in China is increasing because brides-to-be in China "are demanding of their men that if they want to get married, then they need to have a diamond." He added that demand growth has added pressure on the industry to find and mine more diamonds, especially in Australia.
Most analysts say the growth of the middle class in China has only just begun. This week, China revised gross domestic product (GDP) figures from 2004 pointing to larger gains than originally thought. For year 2004 China ranked No.7 in the world (behind Italy) at $1.6 trillion. On December 20, China revised its 2004 figures ahead 16.8 percent to $1.98 trillion, or slightly below France at No.5. But analysts say China is underestimating its total weight (and does not include Hong Kong or Macau in figures) to hide the nation's real strength.
If China included Hong Kong in national figures, it would jump to No.4, replacing the United Kingdom. The United States' economy is measured at $11.7 trillion, Japan at $4.6 trillion, and Germany at $2.7 trillion.
China measures its GDP with service sector returns (41 percent,) agriculture (13 percent,) and manufacturing (46 percent,) whereas nearly 70 percent of the United States' economy is based upon consumer spending.
According to Hu Yanni, of CSC Securities Co Ltd, consumers in China are not yet willing to spend their money on nonessential consumption, because they feel more pressure to spend on necessities, he told China's Interfax.
How do you say 'bling-bling' in Chinese?
Bling-bling!
The New GIA Diamond Cut Grade Is Here.
GIA (Gemologocal Institute of America) the foremost diamond grading laboratory in the world has introduced as of January 3, 2006 their new Cut grade for round brilliant shape diamonds.
The New GIA Diamond Grading Report.
Based on fifteen years of meticulous research and over 70,000 human observations of diamonds of varying Cut qualities, GIA has been able to assess the 58 facets that comprise the most popular and most sold round brilliant shape diamond and define it's Cut quality along the lines of "Excellent", "Very Good", "Good", "Fair", and "Poor."
The graph below depicts the round diamond facets that GIA analyzed to arrive at their Cut Grade System.
Critical facets that comprise the round brilliant shape diamond. Maximizing a diamond's brilliance, dispersion, and scintillation depends on the correct facet size, facet angle, and facet alignment of all the 58 facets working in unison. GIA's Cut Grade distills all of this into an easy to understand Cut Grade.
Below are the measurements of various facets that go into determining the Cut Grade.
Gemprint Goes Major League! Bought By Collectors Universe.
Collectors Universe today bought the Gemprint company (www.gemprint.com). Gemprinting a diamond is a patented technology for the non-invasive diamond identification that works by digitally capturing the unique refractive light pattern (or "gemprint") of each diamond.
An increasing number of consumers are having their diamonds gemprinted to insure against loss or theft.
Gemprint Machine
The Gemprint patented technology is based on (i) the digital capture of the unique refractive light pattern for each diamond (the diamond's "fingerprint" or "gemprint") (ii) the database storage of such digital images, and (iii) the inquiry, matching and verification of a requested diamond's digital light refraction pattern to the registered database of diamonds. The current technology has been in use by Gemprint for nine years and during the
12 months ended on October 31, 2005, Gemprint has added digital "fingerprint"
images for over 30,000 diamonds to its database of unique digital images of
the refractive light patterns of individual diamonds. The aggregate number of
diamonds registered in the Gemprint database is now in excess of 500,000
diamonds.
Gemprints are admissable as evidence in Courts of Law and are made accessible to Law Enforcement Agencies worldwide.
Your Gemprinted diamond receives a 10% discount from your Insurance company. The fee to do the Gemprint ranges from $25-$75.00, depending on the dealer, which is a very modest amount to pay for added protection on a very big and important purchase.
We have been offering the Gemprint service to our customers for the past three years and believe that it provides excellent protection and reliable/veriable identification for your diamonds.
Use it.
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.
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.
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
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.
70,000 Wholesale Loose Diamonds!
Diamond Drop Shipping
It is no secret that many of the diamonds you will find listed on one website are also offered for sale by many different online diamond vendors.
Upon doing your research for diamonds online you will find many vendors boasting a diamond database of anywhere from 50,000 to 70,000 diamonds. Many times the same diamond listing will appear on multiple websites from different vendors. Truthfully, none of these vendors owns the loose diamond, much less have it in stock. They merely act as a drop-shipper to sell diamonds from diamond wholesalers. When an order is placed on the website the diamond is shipped directly from the manufacturer to you, the customer. These diamond vendors never physically see the diamond and offer you little help with any questions you may have about the stone. Indeed many of these online diamond merchants have very little knowledge about diamonds altogether.
Below is a diagram that we have put together to illustrate the drop ship diamond method:
At ExcelDiamonds.com we are the home for our Exclusive Collection of SuperbCert Hearts & Arrows Super-Ideal Cut Diamonds which are manufactured by us and are here in house. These are diamonds that you cannot buy anywhere else. We are also a family owned and operated business of diamond cutters and experts in our field. We know diamonds intimately and look to supply our customers with the very best diamonds at excellent values.
Added Value With ExcelDiamonds
On our website you will find in addition to our exclusive collection of branded ideal cut diamonds, we also offer databases with thousands of wholesale loose diamonds from many different manufacturers.
There are however a few major differences between us and many of our competitors who similarly provide lists of thousands of loose diamonds for your consideration:
1. We only list loose diamonds that we can and will bring in house immediately to evaluate on your behalf. This includes actual diamond photographs under various lighting conditions and magnifications, as well as copies of the diamond lab grading report, diamond Megascope, and light performance analyses.
2. Unlike some of our competitors who may offer you a similar service, we DO NOT CHARGE your Credit Card to call in these diamonds. We are happy to provide all of this information to you upfront with no financial commitment on your part.
3. We are a family oriented business third and fourth generation, diamond cutters and experts with 30 years of experience and a strong commitment to the same old world values shown by our parents and grandparents, not merely computer geeks or MBA suits who KNOW NOTHING ABOUT DIAMONDS and have decided to open a drop-ship diamond website. We will only sell you a diamond that we have first inspected for you and deem to be of excellent quality and value.
Diamond Price Match Guarantee
Finally, we are so confident of our service and commitment to you that we offer this guarantee: If you find the exact same diamond advertised on any other website for less money, just direct us to this page and WE WILL MATCH OR BEAT THE ADVERTISED PRICE OF THE STONE, GUARANTEED!
You will still get all of our amazing services including the most extensive scientific qualitative and quantitative reports and photos immediately at your finger tips, plus the very best price on the diamond!
The choice is easy and we hope you will shop with us for your dream diamond!
Wholesale Loose Diamonds Online
Wholesale Diamonds Online
Wholesale Diamonds Online
Do a search on Google, yahoo, msn, or any of the major search engines for terms like discount diamonds, wholesale diamonds, or diamonds for sale online, and you are sure to be inundated with hundreds of pages of “internet diamond vendors” offering all kinds of promotions and “wholesale diamonds”.
The problem with these kinds of “cheap diamond” slogans and terms is that it is often misleading and sometimes outright fraudulent.
Consider this simple fact; any diamond seller or vendor who is engaged in the online sale of loose diamonds and jewelry is by definition a retail diamond establishment, not a “diamond wholesaler”.
Unfortunately, in the world of cyberspace one of the most abused terms is “wholesale loose diamonds”.
Internet diamond vendors would like to give you the impression that they are offering you a loose diamond at the wholesale price. What they hope you do not realize is that they are in virtually all instances, acting as a reseller of loose diamonds. What this means is that they are basically attaching a database of thousands of loose diamonds that they get as a feed or listing from an actual diamond wholesaler or diamond manufacturer.
The diamond re-seller or diamond vendor basically attaches his profit margin to the spreadsheet of loose diamonds and uploads to his diamond website. When you, the customer place an order for a loose diamond on one of these websites you are essentially paying for a loose diamond being sold as a retail item through a drop-shipper or middleman. As a matter of fact, when you buy a loose diamond from one of these guys, he will never see the stone before you do. The diamond is actually shipped directly from the manufacturer to the end consumer with the tags, and paperwork of the middleman placed on the package. Many of these diamond vendors don’t even know much about diamonds at all. These are entrepreneurs or computer geeks who decided to sell diamonds on-line by setting up a website and tapping into the wholesale diamond lists of various diamond companies.
An additional fact for your consideration (one that the diamond vendor doesn’t want you to know about) is that not unlike many other products and services there is a certain general pricing structure for loose diamonds. This is called the RAP (Rappaport sheet) list. The pricing factors are based on the diamond shape, diamond color, diamond clarity, and diamond carat weight.
The bottom line is that there is no such thing as a wholesale diamond being sold on the internet, or anywhere else. The diamond reseller, or vendor doesn’t give you the wholesale diamond price simply because he needs to make a living too. If he gave you the diamond at his cost he wouldn’t be much of a salesman, would he?
The advertisement of “wholesale diamonds” is therefore unethical, and misleading. It is also a falsehood.
At www.exceldiamonds.com we do not sell “wholesale diamonds”. We are also not acting as middlemen to blindly drop ship diamonds to our customers.
We are third and fourth generation diamond manufacturers and dealers manufacturing our Exclusive collection of SuperbCert Hearts and Arrows Diamonds. These are loose ideal cut diamonds that are also AGS-0 Diamonds, cut to the highest standards for diamond precision and brilliancy.
With us, there is no empty rhetoric. You may not get a “wholesale diamond” but you will get the closest price to it. Our margins are very small and we give you tremendous value by including all kinds of scientific reports, photos, and documentation with your loose diamond.
When you buy a loose diamond online with us, you know what you are getting:
No blind drop shipping.
No computer guy turned “diamond guru”,or “Diamond expert”.
No claims of “diamonds below wholesale”.
Top quality loose diamonds and jewelry.
Comprehensive and detailed diamond reports and information.
Personalized attention and commitment to customer satisfaction.
We certainly hope you will join our thousands of happy online diamond and jewelry customers.
Feel free to call us at any time Toll-Free at 1.866.829.8600
Loose Diamonds and Beer!
What should a beer lover do to enjoy his home drinking and impress his friends? Perhaps buy a draft beer dispenser studded with more than 1,000 diamonds, suggests Dutch beer maker Heineken.
Heineken is now offering its BeerTender, a draft beer dispensing machine, set with more than 1,100 diamonds with a total weight of 35 carats for 110,000 euros ($128,000). They call it the BeerTender Millionaire Style.
A prototype of the machine, made of 18-karat gold with the help of the Amsterdam Diamond Society, will be offered at the Millionaire's Fair in Amsterdam December 9 - 12.
Heineken introduced the BeerTender a year ago and has since sold 150,000 machines for a more modest 279 euros. The device was conceived in an effort to boost home beer consumption, to counter the decline in West European beer consumption.
Hey Heineken, Change your radio and TV ads to: "Its' NOT all about the beer!"
$30 Million Dollar Diamond Bikini!!
One of the most popular magazines is the annual Sports Illustrated Swimsuit Issue. And, while many of the magazine's readers are probably less interested in the swimsuits than the models, this year’s issue includes one very unique swimsuit - a diamond bikini worth $30 million.
With 150 carats of D Flawless diamonds supplied by Steinmetz Diamonds, the two-piece, modeled by Molly Sims, is reportedly the most expensive item of diamond apparel ever made.
Designed by Susan Rosen, the bikini has a 51 carat pear shape diamond, a 30 carat emerald cut diamond, a pair of 15 carat rounds and a pair of 8 carat pear shape diamonds. The sparklers are set in rust resistant platinum.
This year’s swimsuit issue showcases 26 models, including tennis star Maria Sharapova and super model Heidi Klum, who is depicted wearing body paint instead of a real swimsuit
Did someone say diamonds??
Diamond Branding. Are They All A Cut Above?
Diamond branding is really nothing new.
There are so many companies that are branding their own diamonds today, it's almost impossible to keep up.
Companies market a branded diamond in an effort to create a niche and distinguish themselves from their competition.
A "brand" in any industry, especially the diamond industry should be synonymous with a higher standard of quality and craftsmanship. In this context, the brand adds value to the product.
The problem exists when companies put out less than stellar loose diamonds in all kinds of shapes and configurations and put more focus on marketing them then worrying about a quality standard.
These "branded diamonds" are usually here today and gone tomorrow.
These diamonds may be marketed as being a cut above the rest, however the sad truth is that they are often cut for weight retention to achieve a certain shape which consequently sacrifices the diamonds ability to maximize its refracted light and brilliancy.
A diamond brand is only as good as the quality behind it. Otherwise it's just a label.
Some diamond brands (these diamonds are all marketed and copywrited by their respected companies.) are:
Hearts on Fire Diamonds
Aglaia Diamonds
SuperbCert Diamonds
A Cut Above Diamonds
Lazare Kaplan Diamonds
Amore Diamonds
88 Cut Diamonds
Eighternity Diamonds
Regent Cut Diamonds
CrissCut Diamonds
Baroka Cut Diamonds
Blue Nile Signature Diamonds
Tiffany Ideal Cut Diamonds
Eightstar Diamonds
Hearts to Eternity Diamonds
The Love Diamond
Couples Diamond
Here is an excellent link for many different diamond brands.
Tiffany Jewelry Stores in 52 Cities!
(March 7, 2006) Tiffany & Co. announces its plans to open new locations in Yonago and Mito, Japan, bringing the number of retail locations to 52.
The approximately 1,500 gross-square-foot Yonago boutique will opened March 12 at the Takashimaya center and a 2,900 gross-square-foot Mito boutique will open on March 17 in the Keisei center.
Tiffany Ring & Box
Zales Diamonds Has Disappointing Year
Following a lackluster year (fiscally) for the Zales Diamond Corp., Mary Forte, the company's president and chief executive officer resigned recently.
Mary Forte
Forte, a retail veteran who joined the chain in 1994 as president of Gordon's Jewelers was president of the company since August 2002.
Zales has described its sales figures over the past year as disappointing, and the chain has closed 29 Baily Banks & Biddle stores as part of its shift designed to move its national brand into the upscale arena, and cut back on its sales events.
Barry G. recently blogged on this steady decline over here.
Maybe people are starting to realize that with a bit of homework there is far better quality diamonds and jewelry to be had out there at prices that are just as competitive.......
Oscar Nominee Declines Diamonds From De Beers!
She could have been showered with diamonds and plied with champagne in Hollywood. But humble Scots illustrator Sharon Colman turned down the offer, insisting she's not really here for De Beers.
Miss Colman, was in Los Angeles, where her seven-minute animated film Badgered was among the Oscar nominations, and has never enjoyed the big star treatment. (Badgered lost to 'The Moon and the Son.')
The 27-year-old film school graduate, who has a modest and intermittent income, struggled to find sponsors to fly her to the states and put her up in a hotel so she could attend the awards.
But when De Beers offered her a Diamond Healing therapy and massage using gems worth $6 million, plus her pick from a $30 million selection of diamonds to wear, she said she was "too busy."
"I really don't have time to sit around sipping champagne," said Colman, from Balloch in Dunbartonshire. Her attitude was in sharp contrast to that of Keira Knightley, who spent hours choosing from De Beers' diamond rings, necklaces, earrings, and tiaras laid out at the heavily-guarded Soho Hotel in the Hollywood Hills before Oscar night.
But a spokesman for Colman said she was "perfectly happy" with the costume jewellery she had already chosen at Butler and Wilson, whose necklaces start at GBP18.
"Diamonds are not really her thing," said the spokesman.
"Sharon doesn't feel it is in keeping with the image she is trying to portray." A stunned Hollywood source said, "De Beers don't just select anyone. Of course she must be busy, but her film is only seven minutes long, for goodness' sake."
"I hope it's not a decision she lives to regret - these people don't ask twice."
Source: The Mail on Sunday.
Diamond License Plates.
Automobile license plates in Arkansas have a new design that incorporates a faceted diamond background image to represent the state's public diamond mine -- the Crater of Diamonds State Park.
State officials considered other motifs, but found the diamond design represented the state best.
During the unveiling in Little Rock on March 9, Richard Weiss, director of the state's finance department, said a sheaf of rice, a mallard duck, and the diamond were considered for a design montage, but the look became "too cluttered."
Arkansas license plates are made by Waldale Manufacturing in diamond-rich Canada.
AGS Labs To Help Consumers Buy Diamonds
Beginning in April 2006, the American Gem Society Laboratories LLC, (AGS) plans to launch a national consumer campaign, which organizers predict will help consumers understand the diamond buying process.
Peter Yantzer, executive director of AGS Laboratories, said, "This initiative will arm consumers with the knowledge necessary to make an informed diamond purchase."
The first of two initiatives is titled 'Alphabet Soup' in which the campaign sets to "demystify the acronyms in the jewelry industry." AGS targets consumer press writers and broadcast agencies to provide the media with "valuable information and quotes about grading report differences, leading to increased consumer confidence and comfort."
'So Many Cuts, So Little Time' is the second initiative and will focus upon "the cut of a diamond and the fashion opportunities that exist in today's marketplace," AGS reports.
Hearts on Fire Outfits Terri Hatcher
Hearts on Fire Diamond company bedecked golden globe winner Teri Hatcher at the third annual Ladie's Home Journal Funny Ladies We Love celebration held last month in Hollywood.
The star of Desperate Houswives who was one of the event's winners, wore the company's "Hoopla D" earrings and a 30 carat Hearts on Fire "Effervescence" bracelet to complement her gold hued Valentino gown.
Huge Canary Yellow Diamond Found in Park!
MSNBC reports about this lucky dude who just found this gorgeous (and valuable) flawless canary yellow diamond in a local Stae park. Here is the picture with the link to the story below.
Happy Hunting everyone!!
Click on this Link.
Tiffany To Open Two New Diamond & Jewelry Stores In China.
Luxury retailer Tiffany & Co., plans to open two new stores in China during 2006. One store will open at Beijing's Oriental Plaza, and a second store at Shanghai's Plaza 66. Beijing is scheduled to open in May, and Shanghai could open towards the end of the year, the company reports.
"The Oriental Plaza in Beijing and Plaza 66 in Shanghai are ideal environments for a Tiffany store," said Darren Chen, group vice president at Tiffany & Co. "These convenient locations expand our presence both in Beijing and Shanghai, cities of growing importance as global business centers and as destinations for both domestic and overseas tourists."
Once the new stores open, Tiffany will have a total of two stores in each of those prominent cities. Tiffany currently has a boutique in Beijing's Peninsula Palace Hotel, which opened in 2001, and a boutique in the City Plaza shopping complex in Shanghai, which opened in 2004.
How do say "Bling-Bling" in Chinese?
"Bring-Bring"!
Diamond Identification Method for Consumers: Bring Napkins
The Financial Times of London reports on a novel way to identify Diamonds from fakes:
It is said that Alexander the Great found a valley full of both diamonds and poisonous snakes. No one could work out how to retrieve the jewels until Alexander had the idea of throwing down raw meat, to which the diamonds attached. When eagles flew down for the meat, Alexander's men just had to follow them to their nests.
It sounds like fantasy but diamonds are attracted to fat, and the story reminded people how to tell real diamonds from fakes. De Beers still practise Alexander's trick in their South Africa mines today: They use "grease tables" and only the valuable stones stick.
Today, most engagement rings are diamond but after the war, people wanted holidays, cars or colorful gems to celebrate a future marriage.
In 1947 a New York copywriter, given the task of finding a slogan for her client's product, stayed late in the office. "I put my head down and said: 'Please God, send me a line.'" Then she scribbled: "A Diamond is Forever" and the rest is History.
How The Gemex BrillianceScope Measures Diamond Light Performance
People have asked us how exactly the Brilliancescope machine manufactured by Gemex Systems, measures a loose diamonds light performance for criterion of brilliance, fire, and scintillation.
Here is a great and informative article that my Dad (Barry) wrote on this topic on the diamond-talk forum.
GemEx Diamond BrillianceScope Article
Stolen Diamond Slippers Returned!
Three Toronto photo lab workers will share a $25,000 reward for helping recover a pair of slippers stolen from the Bata Shoe Museum.
Stolen Diamond Slippers
These rare, jewel-encrusted slippers, once worn by an Indian prince, were stolen from the Bata Shoe Museum on Jan. 22.
The jeweled slippers, worth $160,000, were stolen from the Toronto museum in late January in a daylight robbery.
A gold toe ring, set with diamonds and rubies and valued at $11,000 and a gold anklet, set with diamonds, rubies and emeralds and valued at $45,000, also were taken.
The theft led museum founder Sonja Bata to offer a $25,000 reward for return of the items.
Tom Hamilton, the owner of the photo shop, was packaging some photos when he spotted a picture of one of the slippers.
When a man returned to pick up the photos, Hamilton and his staff diverted his attention enough to secretly snap his picture and call police.
A gold toe ring set with diamonds and rubies and a gold anklet set with diamonds, rubies and emeralds also disappeared.
During their investigation of the robbery, Toronto police released photos of "persons of interest" in the case, without saying where they got the photos.
That led to a break in the case. A man was arrested on March 3.
Filip Djukic, 35, was charged with possession of property obtained by crime.
The slippers, once worn by the Nizam Sikandar Jah of Hyderabad, and the other two items were recovered in a Toronto church after an anonymous call to a museum employee.
Buying Loose Diamonds, Engagement Rings, Wedding Bands, & Wedding Rings: Trust and Verify.
Marshall Loeb of Market Watch quotes our friend and colleague, Jay Mednikow with advice to consumers on how to safely shop for loose diamonds, engagement rings, wedding rings and bands, both in jewlery stores and through internet websites. It is advice we agree with 100% and worth following.
Few purchases are more mystifying for first-time buyers than fine jewelry. There's more information out there than ever - from jewelers' Web sites and online forums to nearly ubiquitous grading reports from independent labs. But buying expensive gems and precious metals is still largely a matter of trust between you and the jeweler.
First, educate yourself on the basics. For diamonds, that means the four Cs: cut, color, clarity and carat weight. For gold, platinum and silver, it means purity.
You can find helpful information on these fundamentals from the Federal Trade Commission ( FTC) and the Better Business Bureau (BBB). The Gemological Institute of America, the most prominent diamond grading agency, provides tutorials on buying diamonds and colored gems at (GIA Education).
"It's less of a blind purchase than it used to be," says Jay Mednikow, president of 115-year-old Mednikow Jewelers in Memphis and Atlanta. "But a jeweler who knows what he's doing can take advantage of you if he wants to."
Thus, there is still no substitute for a reliable dealer with an established reputation. Many jewelers are GIA-certified gemologists and display their credentials prominently.
For diamonds, Mednikow recommends buying only those with grading certificates from GIA, the American Gem Society or another independent laboratory. If a jeweler says he can offer you an uncertified diamond at a discount, tell him you'll pay to have it analyzed since the cost should be only $50 to $300 depending on the size of the stone. Read warranty and return policies carefully and make sure all guarantees are written on your sales receipt - it's your legal contract.
You may have a hard time distinguishing between slight variations in color and clarity, but still trust your own eyes.
Mednikow recommends holding diamonds with a pair of tweezers over your finger or against a white background and under lights of different types and varying brightness. With shapes other than round-cut, which has standard specifications, and with colored gems, you will have to rely much more on the jeweler's expertise.
If you are buying a colored stone such as a ruby, sapphire or diamond, ask if it has been "treated" to enhance the color. Some processes are routine, like heating for sapphires and rubies and oiling for emeralds, but others are temporary or undesirable.
Up to half the gold jewelry sold in the U.S. bears a false karat rating, says Mednikow. Choosing a reliable merchant is your only insurance, although national retailers like Zales and Sears are diligent about the purity of their gold.
Guess Where You Can Buy Diamonds & Jewelry? You Won't Believe It!
Idex Research today reports that Specialty jewelers who lament that they are losing sales to discounters, department stores, and many other retail categories are correct. Just-released information from the U.S. Department of Commerce reveals that for every specialty jeweler in the U.S., there are three other merchants – whose primary business is not jewelry – who are also selling diamonds, precious metals, and other goods that have traditionally been the domain of specialty jewelers.
There are just over 128,000 retailers in the U.S. who sell jewelry in their stores, according to the latest Business Census data from the U.S. Department of Commerce. Roughly 28,000 of those stores, or about 22 percent of all jewelry retail outlets, are specialty jewelers; the others represent a wide variety of retail categories including department stores, general merchandise stores, warehouse clubs, apparel retailers, non-store retailers, and a number of other specialty retailers. The graph below illustrates the mix of specialty jewelers to total retailers of jewelry in the U.S.
Stores Selling Jewelry by Category
Percent of Total of 128,000 Stores
Source: Dept. of Commerce
Because jewelry is such an attractive industry – gross margins are healthy and the long term characteristics of demand are positive – there are many merchants who are trying to sell jewelry.
Further, as a result of few barriers to entry, retailing attracts a large number of merchants who will try to sell anything to make a profit.
The bad news for specialty jewelers is that they are losing market share to those merchants whose business is not primarily selling jewelry. Over the past decade, specialty jewelers’ market share in the U.S. has dropped from about 50 percent to just over 47 percent, as the graph below illustrates.
There may be some surprises among the list of retailers who are gaining – and those who are losing – market share in the jewelry category. As expected, non-store retailers have among the strongest growth of any retail category. Stores that retail sporting goods, hobby supplies, books, and music (a single category, according to the Department of Commerce) have also posted strong jewelry sales gain, though this category generated an aggregate of just over $100 million in sales. That was just enough to be included on the Idex list, which analyzes only retail categories with $100 million or more in annual jewelry sales.
A graph of those retail categories that are gaining market share and those which are losing market share is shown below. These are all of the retail categories which report that they have $100 million or more of jewelry sales annually.
U.S. Specialty Jewelers’ Market Share
Source: Dept. of Commerce
Who Is Taking Jewelry Market Share?
Sales Growth over Past Ten Years by Retail Category
In addition to the list of logical purveyors of jewelry, there are a number of surprises on this list of jewelry outlets. For example, the Commerce Department’s Business Census, lists 117 stores which primarily sell beer and wine that also sell jewelry. You can gas up your car at 178 gasoline stations that also sell jewelry. In addition, there are about 385 convenience stores (such as 7-Eleven) which sell jewelry; 1,210 book stores sell jewelry; and, 37 pet stores also sell jewelry. In the prior Business Census (1997) about 85 automobile dealers also sold jewelry; by 2002, however, those car dealers apparently had stopped selling gemstones and watches.
Here’s an exhaustive list of all merchants who sell jewelry, but whose primary product line is not jewelry.
* Furniture & furnishings stores
* Consumer electronics stores
* Appliance stores
* Home centers, including building materials, lawn & garden supplies, nurseries, farm supply and hardware stores
* Grocery stores, supermarkets, convenience stores
* Fruit, vegetable, confectionery, and nut stores
* Beer, wine, and liquor stores
* Cosmetics, beauty supplies, and perfume stores
* Optical goods stores
* Gasoline stations
* Clothing stores, including men’s wear, women’s wear, children and family clothing, shoe stores, and infants’ stores
* Luggage and leather goods stores
* Sporting goods, hobby, and musical instrument stores
* Sewing, needlework, and piece goods shops
* Book stores, news dealers, college book shops
* Music stores
* Department stores
* Warehouse clubs
* Variety stores
* Florists
* Office supply, stationery, and gift shops
* Used merchandise stores (pawn shops are included in this category)
* Pet stores, art dealers, tobacco stores
* Electronic shopping and mail-order retailers
* Vending machine operators and direct selling, including in-home sales
Diamond Cleaning: Use Efferdent and Smile!
Saw this humorous posting today on Bridal Blog
Here's her story:
I keep meaning to stop in at a jeweler to have it professionally cleaned, but my mother-in-law to be (MILTB) told me this ridiculous slash terrifying story where she swears a friend of a friend of her cousin Phyllis did just such a thing and had her ring replaced with a fake. I realize that the chances of this story being true are infinitesimal, but I’ve yet to stop in and have it done, so clearly there is a tiny part of me that truly believes Phyllis’s friend’s friend. My MILTB went on to say that the BEST and ONLY means one should be using to clean a ring like mine is Efferdent—as in denture cleaner Efferdent.
So, today I did it. I walked into Duane Reade with purpose and conviction, found a box of denture cleaner and bought it. I was so excited to come home and try it out, I could barely contain myself. I heated up some water in a small teacup, dropped in the efferdent tablet, plopped in my ring and stood there watching the water fizzing for five long minutes. Even my dog looked up at me as if to say “you’ve officially crossed the line.”
When I couldn’t handle the suspense for one second longer, I fished my ring out of the icky blue solution, rinsed it off and Bing. Bam. Boom. Seriously, WOW. I may have been temporarily blinded. Dammit all if my ring didn’t look just as sparkly and shiny as the day I got it.
Now I just wonder if an Ultrasonic Jewelry Cleaner can have the same cleaning results for dentures?
Smile!
Diamond Prices We Would Like To See!
Ray Jewelers in Elmira advertised diamond engagement rings from $37.50 for a solitaire to $125 for a three-diamond wedding band set.
Love was cheaper then.
Diamond Hunting: You Can Do It.
Want to prospect for your own diamonds? Pamela Selbert tells you how to do it!
Finding Your Diamond In The Rough: Here's How!
Strike At Canadian Diamond Mine Delayed.
The union for 400 workers at BHP Billiton's Ekati diamond mine in the Canadian Arctic said on Friday it moved a strike deadline to April 7 from March 29 as it expected contract talks with the company to resume.
The Public Service Alliance of Canada union, which represents about 60 percent of the mine's work force, said it accepted a Canadian federal mediator's request for talks in Edmonton, Alberta on April 5 and 6.
"We are pleased that BHP Billiton has agreed to meet with the federal mediator and we hope it is a sign that a first collective agreement can be reached," Jean-Francois Des Lauriers, a senior executive for the union, said in a statement.
BHP, which also produces iron ore, coal, aluminum, oil and natural gas, had previously said it would not return to the bargaining table earlier than April 18.
Des Lauriers said the workers will go on strike if the union decides that it cannot reach a satisfactory agreement with the company.
Issues include wages, seniority, better treatment of aboriginals and quality-of-life issues such as vacations and compensation for statutory holidays, according to the union.
The Ekati mine, located in the Northwest Territories, about 300 kilometers northeast of Yellowknife, is Canada's first diamond mine. It produces about four to five million carats of rough diamonds a year, equal to some 4 percent of the world's diamond production by weight.
Zales COO Resigns.
Management shifts continue at Zale Corp. as the company announced the departure of another top executive, Sue Gove, executive vice president, chief operating officer and member of Zale's board of directors.
Gove resigned as an officer and director effective immediately, according to a Zale release issued Thursday. She follows former CEO Mary Forte and former Zales Jewelers' president Paul Leonard, both of whom left the company earlier this year.
"The company would like to thank Sue for her many contributions over the last 25 years, and we wish her well in her future endeavors," Richard Marcus, chairman of Zale's board of directors, said in the statement. "We are very appreciative of the talent, dedication and passion she brought to the business."
Zale is currently operating with an interim CEO, Betsy Burton, and has not named a successor to Forte.
Expect a continued Management shake-up at Zales who have been losing money at a rapid rate as we have chronicled here: Zales Loss . Increased competition from the Internet and the flight to diamond and jewelry quality by consumers are a few of the reasons for Zales downward spiral.
I hope the Zales Board of Directors at least gave her a Gold Watch on her way out the door.
WOW!! Look At Precious Metal Silver!
U.S. silver futures rallied to a new 22-year high on speculative buying early Monday amid expectations of rising silver demand, pushing the other precious metal higher as well, dealers said
Riding silver's coattails, palladium jumped to a two-year high, platinum scaled a six-week peak and gold rose to a three-week high.
Record copper prices and a shaky dollar were also supportive to the complex, while investors awaited clues on the Federal Reserve's policy outlook after an expected rate increase at a two-day meeting that ends on Tuesday afternoon.
By 10:27 a.m. EST, May delivery silver
"Will $11 prove a correction pivot? More likely, the next stiff resistance lies somewhere above $12," Greg Weldon, independent analyst and publisher of the Metal Monitor, said.
Silver surged for a fifth straight session on hopes that a silver-backed investment vehicle will soon launch and create greater investment interest in the gray metal.
The U.S. Securities and Exchange Commission last week seemed to clear the way for final approval of the first exchange-traded fund that tracks the metal's price.
Credit Suisse said the price could climb further in the medium term, to $15, hoisted by increased consumer and investment demand due to the ETF.
Monday's fresh buying held down the gold/silver ratio, the number of ounces of silver needed to buy one of gold, which is a bullish technical signal for silver.
The ratio remains below 52 to 1, versus 58:1 at the end of February and 60:1 late last year.
Fund positioning in COMEX silver futures has increased in the latest week, according to closely watched U.S. Commitments of Traders data from the Commodity Futures Trading Commission.
Where are the Hunt Brothers?
Plumbers AND Diamonds Are A Girl's Best Friend!
The Washington Post reports this morning that not only Diamonds but also Plumbers just may be a girl's best friend.
Say what? Well, sometimes plumbers just know. And after 24 years turning wrenches on the campus of Mount St. Mary's University, plumber Ronnie Bledsoe had one of those hunches about where a missing engagement ring might turn up.
Not just any old engagement ring, either, he was told, but a $20,000 rock that got sucked down an automatic-flushing toilet weeks ago.
The loss devastated Debbie Squiccimarri, a New Jersey high school teacher who was visiting the Emmitsburg campus Feb. 20 with her 17-year-old daughter, her sister and her niece when the ring vanished down a toilet in the Cogan Student Union Building.
"Everybody thought the big deal was how much it cost," said Squiccimarri, 43, who first slipped on the two-carat diamond ring after her fiance popped the question on Christmas night. But its real value was closer to the heart than the pocketbook: "I didn't feel engaged anymore after flushing it."
Bledsoe tore apart the toilet that day; Squiccimarri visited the campus's sewage treatment plant before heading home to Ramsey, N.J. Bledsoe even tore apart more pipes over spring break. No luck. Friends, especially ones with plumbing know-how, told Squiccimarri to kiss the ring goodbye.
But maybe, just maybe, Bledsoe figured, if the ring traveled the maze of underground plumbing to an L-shaped juncture under the fourth manhole from the building, where a new six-inch pipe opened, and spilled onto an 18-inch horizontal ledge before dropping down another eight-inch pipe drain . . .
The hunch paid off. On March 20, Bledsoe lifted the manhole cover, spied something bright in an inch of water and fished out the ring with needle-nose pliers.
Yesterday, ring and betrothed were formally reunited. Not a man of many words, Bledsoe said in a telephone interview yesterday: "I was really happy about it because I remembered how down she was the day she lost it." Squiccimarri said she gave Bledsoe a reward but did not want to publicize the amount.
Squiccimarri was visiting the campus on a frigid weekend when she blew her nose and lost the ring.
"I heard it go in. As soon as I moved to the bowl, it flushed -- and they're so loud, those flushes, it was like a freaky feeling when it went," she said. "I just screamed, 'Oh, my God! My ring!' "
She made a tearful call to her fiance, Frank Eufemia, 46, a former professional baseball player who teaches at the same high school.
"Is your arm caught in the toilet?" he asked her. "Because if it's not, stop crying." Later, he even joked: "Well, that was a short engagement."
Bledsoe, 70, of Gettysburg, Pa., said that about half a dozen rings have vanished on campus over the years, usually down sink drains. He estimated that Squiccimarri's ring traveled at least 250 yards from the toilet to the odd twist under the manhole.
"This is just one of those things plumbers understand," he said.
How does that song go? "Finding Love In all the right places"
Diamonds Are A Girl's Best Friend, NOT Moissanite.
Shares of jewelry maker and sole source of moissanite Charles & Colvard Ltd., fell on March 27, a day after the company forecasted lower quarterly sales due to substantially lower orders from K&G Creations.
Shares dipped $1.73, or 12.8 percent, to $11.75. The stock price is down 27 percent so far this year, adjusted for stock splits.
In a company statement on March 26, Charles & Colvard said sales for first quarter fiscal year 2006 are expected to be between $7.5 million and $8.4 million, which is 25 percent to 33 percent lower than a year ago. The company expects K&G's orders to slip due to lower orders from the 2005 merger of its customers, Federated Department Stores and May Department Stores Co.
Charles & Colvard’s board authorized the repurchase of up to one million common shares. Company shares have traded between $8.63 and $26.29 over the past year.
Loose Cushion Cut Diamond: What Is It?
The Cushion Cut is a generic name for the Old Mine Cut developed before the turn of the century; these days the name" cushion" is often used for colored stones cut in this shape.
A Cushion Cut is a square or squarish-rectangular cut with rounded corners and 58 brilliant-style facets that resemble a pillow shape, hence the name.
A hundred years ago, when Cushion Cuts were first developed, diamonds were not cleaved into two pieces of rough, as they are today; they were ground down as a single stone and the resulting polished was lumpy and thick. Cushion Cuts have very thin girdles and bigger culets than today's full-cut diamonds.
Designers are requesting Cushion Cuts with big culets, but, in general, the smaller the culet, the better the stone. Older Cushion Cuts return light in blocky patterns; newly cut ones return light in needlelike patterns.
MARKETS AND MARKETING
Cushion Cut diamonds are popular in matching pairs. They are especially being used in larger-carat earrings and also as a center stone in rings. Cushion Cuts first became popular again about ten years ago, and their popularity has increased as designers and antique dealers continue to use them.
Cushion Cuts offer a lot of weight at a moderate price. Larger Cushion Cut diamonds sell for about 30 percent less than full-cuts of the same weight, while smaller cuts sell for about the same. A 1-carat G/VS Cushion Cut stone will sell from $2,800 to $3,800. Two-carat and up stones sell in the $3,500 to $5,000 per carat range. The most popular sizes are .75 to 1.5 carats. The availability of 2-carats and up is a problem because of the high demand for larger stones, both by estate and antique dealers for replacement or repair and by manufacturers.
Look for good clarity and color. Because Cushion Cuts have very thin girdles, girdles on older ones are often chipped. Look for Cushion Cuts that are symmetrical; off-shape ones are difficult to use. Look for a medium culet that is not too heavy, unless you have a special reason to use this cut with a big culet. Pick a mounting that's appropriate for the softer reflections and refractions of a Cushion Cut. Old Mine Cuts were traditionally set in yellow gold or silver with a patina or oxidation; therefore, they look better set in matte metals rather than highly polished ones.
Odimo.com In Financial trouble
Odimo.com, one of the Internet's first diamond and jewelry websites is in deep financial trouble.
Online diamond retailer Odimo Incorporated alerted investors that the company requires additional financing to "continue its operations, meet its operational goals, and to pursue its long term strategy."
Odimo's fiscal year ended December 31, 2005, and the company released its fourth-quarter and year-end results after the markets closed on March 30. Odimo owns www.diamond.com, www.ashford.com, and www.worldofwatches.com.
In its financial statement, Odimo states: "The company is currently implementing strategies that include: (i) reducing costs, (ii) seeking equity and debt financing, and (iii) exploring the sale of the company or certain assets. There is no assurance that the company will be able to successfully implement any of these strategies. The financial statements do not include any adjustments that might result from the outcome of this uncertainty."
During the year, and as part of cost-cutting measures, Odimo and SDG Marketing agreed to terminate their agreement, to which Odimo returned $3.7 million (and $700,000) in diamond inventories to satisfy payables.
Losses for the fourth-quarter at Odimo grew to $13.9 million from $1.7 million one year earlier. Sales fell 14 percent to $18.5 million.
For the fiscal year 2005, Odimo sales were flat at $52 million, and orders decreased during the year by almost 3 percent to 151,700. The average order value however increased 3.4 percent to $387. Gross profit was 24 percent of net sales, or $12.5 million, down from $15.1 million in 2004.
Loss from operations was $23.4 million, up from $12.5 million in 2004, inclusive of a $9.8 million non-cash charge to record the impairment of goodwill.
Engagement Ring Purchase onThe Internet: Is This A Good Deal?
Is the question being asked by a consumer this morning on Diamondtalk.com. He has seen a Princess Cut that is being listed on EIGHT different internet diamond websites at different prices!!
Discussion is here: Good Deal?
Here are the multiple listings for this one diamond:
Who really has this diamond?
2.23 I VS1 71.7% 72% GIA med-stk no gd vg no 7.42x7.27x5.21 $6209 $13847*SP
2.23 I VS1 71.7% 72% GIA med-stk no gd vg no 7.42x7.27x5.21 $6262 $13964SP
2.23 I VS1 71.7% 72% GIA med-stk no gd vg no 7.42-7.27-5.21 $6276 $13996*
2.23 I VS1 71.7% 72% GIA med-stk no gd vg no 7.42x7.27x5.21 $6291 $14029
2.23 I VS1 71.7% 72% GIA med-stk no gd vg no 7.42x7.27x5.21 $6306 $14062*S
2.23 I VS1 71.7% 72% GIA med-stk no gd vg no 7.42x7.27x5.21 $6308 $14066*SP
2.23 I VS1 71.7% 72% GIA med-stk no gd vg no 7.42*7.27*5.21 $6339 $14136*S
2.23 I VS1 71.7% 72% GIA med-sl thk no gd vg no 7.42x7.27x5.21 $7198 $16051
This diamond is supplied by the manufacturer to many internet websites and is known as a "Virtual Diamond".
Little if any information is provided save for a few numbers off the lab grading report and the price. You are buying blind.
We have blogged on this topic several times. Same Diamond Listed All Over The Internet?
Virtual Diamond (VD) databases do not give you the necessary information you need, e.g.; photo's, Imagescopes, and light performance data such as provided by the Gemex Brilliancescope. As such, these lists are useless. Would you buy a Home this way? I doubt it. Why should your diamond purchase be any different. It's also big money.
This is a big purchase not only because of the money, but even more so because of the emotion and psychology behind it. You need to get this right the first time. Work with Internet websites that give you comprehensive information.
Hearts On Fire To Replace The Dog with Diamonds, As Man's Best Friend.
Don't tell the family dog, but Hearts on Fire is making a bid to replace a man's favorite canine companion with diamonds.
The company announced that it is challenging the notion that custom diamonds are only gals' best friend by introducing a loose diamond program aimed specifically at men. The new platinum collection, "Distinguished," offers rings, bracelets and cuff links as semi-mounts for diamonds of male customers' own choosing.
"Men are wearing more and more diamond jewelry, and are demanding more of a selection, much like women have," designer Katherine Rosenberg-Pineau, Hearts on Fire vice president of product development and merchandising, said in a release. "Why shouldn't men be able to select the diamond of their choice, too? The 'Distinguished' collection offers this."
In platinum, the collection retails from $5,900-$20,000. Hearts on Fire touted Olympic Gold medalist Apolo Anton Ohno in its release, who wears the brand's "DreamStone Talisman" around his neck. It retails for $16,000.
Diamond Ring Doesn't Fit, Charity Benefits.
She paid almost $5,000 for a diamond ring that doesn’t fit, but Ann Schmitt of Centerville, Ohio is delighted just the same.
“It’s an absolutely beautiful ring and I’ll love wearing it,” Schmitt said after winning the 1.52-carat ring at a silent auction Saturday at Fair Exchange Jewelry, 43 S. Main St. The auction benefited the Salvation Army.
Schmitt called herself “really frugal,” not impulsive, but the story behind the ring, featured in a Dale Huffman column March 23, inspired her.
The ring was dropped in a Salvation Army kettle Dec. 26 outside a Kroger store in Springboro. It was accompanied by an unsigned note, which read in part, “My prayer is that God will bless you and that you will receive great dollars for this ring so that you can help many, many people.”
The Salvation Army worker who discovered the ring, Kathy Sizemore of Franklin, put the ring up for silent auction, figuring she could get more money for the Salvation Army that way than a pawn shop might pay.
The minimum starting bid for the ring, appraised at $6,200, was $3,500. Schmitt started at $4,400 and beat out two other bidders before landing the ring for a little less than $5,000. She declined to disclose her final bid.
“I got a good deal,” the mother of two grown sons said with a smile that wouldn’t stop. “I figure I’ll wear it or one of my sons will get it when he decides to get married.”
Sizemore, a Salvation Army volunteer for six years in the Springboro, Carlisle and Franklin areas, seemed equally pleased.
“I’m extremely thrilled,” she said. “This money will help pay rent, utilities and for a lot of prescription drugs” for the needy.
"Diamonds Are For Ever", But Are Diamond Mines?
Cramer's Mining Weekly reports that the slogan "Diamonds may be forever", but the same cannot be said of diamond-mines.
While De Beers Consolidated Mines (DBCM), the largest producer of diamonds in South Africa, produced a record 15,2-millioncarats last year, it estimates that it will produce just over 14-million carats this year.
Part and parcel of new DBCM MD David Noko’s strategy is to sweat the company’s existing assets, and bring new, additional production on line.
“I do not think that we can grow production from our existing operations – we just can’t.
“Our installed capacity is fixed, and we need capital to improve it,” Noko, who was appointed as DBCM MD on February 7, tells Mining Weekly in an exclusive interview.
And, gaining approval for brownfield projects that do not meet the hurdle rates of the company’s principals is out of the question.
“There would be no point in injecting capital into declining mines like The Oaks, as a return would not be realised, but, by exception, all opportunities are being explored, the major ones being brownfields, but some being greenfields through finding partners that have large resources,” Noko says.
Hence, besides organic growth projects, DBCM’s growth strategy is levered on partnerships with smaller diamond-mining companies.
“If we partner with smaller companies, they will benefit from our knowledge, while we will benefit from the resources that they have acquired,” Noko says.
DBCM has many partnerships in Kimberley, where it has large tailings dumps that require advanced technology to turn the low grades of diamonds that they contain to proper account.
The company is also continuing to research the opportunities of working with junior miners and, in Kimberley, already 25% of revenue emerges from joint ventures with junior miners through contracts.
Diamond & Jewlery at Retail: How Much Money Is Involved?
The US jewelry retail industry generates annual revenues of about $44 billion from 28,000 specialty, department, and discount stores. Specialty retailers hold about 50 percent of the market. Wal-Mart is the biggest jewelry retailer in the country, followed by Zale, the biggest specialty jeweler with over 2,000 stores and kiosks. The industry is highly fragmented: the top 10 jewelry chains hold less than 25 percent of the market. Other large specialty retailers are Tiffany and Sterling, the US branch of British jeweler Signet Group.
Jewelry sales depend partly on consumer income. Small jewelers can effectively compete with large chains because price isn't the main factor determining retail sales. Profitability depends on the volume of sales because sales costs are high and fixed. Because gross margins are very high, often 50 percent, mass merchants like Wal-Mart have taken market share by controlling costs and cutting prices.
Jewelry is often classified as bridal merchandise (engagement, bridal and anniversary rings - about 35 percent of the market); fashion jewelry (rings, bracelets, earrings, pins, gold chains); and watches, silver flatware, and other giftware. Diamond jewelry and loose diamonds account for the largest share of total jewelry store sales (46 percent); gold jewelry for 11 percent; colored gemstone jewelry (rubies, sapphires, emeralds, etc.) 9 percent; and watches 4 percent.
Tiffany's Lucida Diamond: What is it ?
Tiffany & Co.'s Lucida is an exclusive patent pending diamond cut whose shape is a square mixed cut. It has 50 facets, a high crown, stepped facets, wide corners and a small table with a brilliant pavilion. The design of the cut maximizes the stone's sparkle and brilliance. A photo is shown below.
AGS-0 Ideal Cut Princess Diamonds have similar sparkle to the Tiffany Lucida, without the price tag!
Lucida Diamond.
Tiffany has added an eternity band and a three-stone ring as well. Lucida, which means the brightest star in a constellation, is available exclusively at Tiffany & Co. stores worldwide. The setting is copyrighted and the diamond has multiple patents pending.
The Lucida diamond is made from the same rough as a well-cut round. Created by Tiffany's gemologists, the cut is similar to the Asscher and antique Cushion Cuts. Tiffany showcases the Lucida cut in a special four-prong ring shown below. The sculptural band has clean lines and soft curves that merge with the prongs in a sloping crisscross design, which, when viewed from the side, is reminiscent of cathedral arches.
Lucida Ring.
Lucida was designed and introduced by Tiffany in 1999. The retailer has positioned the collection to fit between its classic Tiffany setting and its cuttingedge Etoile collection and has become something of a status symbol. The worldwide launch was backed by an extensive advertising campaign that included four-page inserts, spreads and single-page units in fashion and lifestyle publications. The Lucida is available at 150 locations internationally, including Japan, France and London.
Each Lucida diamond is sold with a Tiffany Certificate. The inside shank of each ring is currently engraved with the following: Copyright, Tiffany & Co. Lucida, metal fineness and the phrase "patents pending." When the patents are finalized, the actual patent numbers will be engraved in the shank.
Click on the icon below for a stunning collection of the finest Tiffany style diamond engagement rings and Ideal Cut diamonds at outstanding values!!
Do You Know How To Buy Your Diamond Engagement Ring?
NOT as this couple unfortunately found out. Be A Smart Diamond Shopper
We totally agree. Here are our recommendations for your safe diamond engagement and wedding ring shopping:
1. Work with a reputable Jeweler; be it Brick & Mortar (B&M) or Internet. Check with your local BBB and the Jewelers Vigilance Committe (www.jvclegal.org)
2. Know what you're buying. Make sure your diamond has a lab grading report. The two most stringent, accurate, and consistent diamond grading labs are the GIA (Gemological Institute of America) and the AGS (Americn Gemological Society). Insist on them.
3. If you're more comfortable shopping with a B&M Jeweler, look at as many diamonds as you can and away from the diamond counter's high intensity halogen lights which tend to make even the ugliest darkest diamonds look D-Flawless.
4. If you're shopping with an Internet Diamond vendor, make sure that they can examine the diamond for you to determine if there are any red flags you need to know about which would dissuade you from buying the stone.
A great number of Internet Vendors sell of Virtual Diamond (VD) databases and never see the diamond you're buying. The diamond is drop-shipped directly to you from the manufacturer. We covered this topic in more detail here: Cyberspace Diamonds
5. Ask the Internet Vendor to supply you with as much information as possible, including photo's.
6. Be clear and understand the Vendor's Policies: Payment, Returns, Upgrades, etc. and any timelines or deadlines that might accompany these Policies.
7. Ask about and receive any paperwork that comes with the diamond.
8. Stay away from in-house Appraisals. Such Appaisals are inflated, will cost you undue high insurance Premiums, and is a practice that is frowned upon and not sanctioned by the reputable National Association Of Jewelry Appraisers (NAJA). Best is to get an evaluation and Appraisal from an Independent Appraiser that does not work for a Jewlery store and does not sell their own diamonds and jewelry. Contact NAJA for a llisting and location of such Appraisers.
Shop Smart. This is a big purchase not only in terms of money but also in terms of emotional significance.
Good Luck!
It Is Safe To Buy Your Diamond Engagement Ring On The Internet.
According to recent statistics from comScore Networks, online sales are already up in 2006. Gian Fulgoni, comScore chairman, said in a January press release, “The 2006 year opened on a strong note, with solid growth of 33 percent in online nontravel sales versus the same period in 2005.” He went on to optimistically predict, “It’s clear based on what we’re seeing so far in 2006 that the strength in online sales will not wane anytime soon.”
According to a comScore press release: “The growth in 2006 online consumer spending follows a year of solid gains. Total online spending for the full year 2005, including travel, reached $143.2 billion, up 22 percent over 2004. Online nontravel spending in 2005 accounted for $82.3 billion, an increase of 24 percent over 2004 levels.”With this kind of money at stake, the question is not whether a business can afford to set up an online store. The question is whether a business can afford not to.
Sales of Loose Diamonds, Diamond Engagement Rings, Diamond Rings, and Wedding Bands by reputable Internet vendors are increasing at a rapid clip. Information on the Cut quality of the diamonds such as lab grading reports, photographs, and light analyses help consumers "see" the diamond on-line and provides very useful information to making an informed purchasing decision.
Keep in mind that buying your Diamond Engagement Ring through an Internet Vendor demands the same caveat Emptor and verification as does shopping with a Brick and Mortar Jeweler.
We discussed and covered several important DO'S and DON'TS just yesterday in this Blog Entry.
Buying Your Diamond in Cyberspace
To paraphrase Sy Sims: An educated consumer makes for a very good and happy customer.
Chameleon Diamond: What Is It?
In Nature, Chameleons (family Chamaeleonidae) are large lizards that belong to one of the best known lizard families. They are famous for their ability to change their colour, and also because of their elongated tongue and their eyes which can be moved independently of each other. Their eyes are the most unique among the reptiles. Among other things they can rotate and focus separately to observe two different objects simultaneously.
Chameleon
Some Chameleon species are able to change their body colour, which has made them one of the most famous lizard families. Contrary to popular belief, this change of colour is not only an adaptation to the surroundings but also an expression of the physical and physiological condition of the lizard. The skin colour is changed under influence of mood, light and temperature. The skin colour also plays an important part in communication and rivalry fights.
There is also such a phenomenon as a Chameleon Diamond. Certain natural green diamonds react to heat or dark storage by temporarily changing color, often becoming bright yellow. This color change is short-lived as the diamond soon reverts to its stable color. Most specimens observed in gem laboratories show even color distribution, aiding in the dramatic transformation, and both color changes are documented on laboratory reports. Faceted chameleon diamonds of 2 carats or more occasionally appear on the market; the more sizable stones offer the maximum opportunity to see color change.
A color-change diamond is such a rare and curious gem that very little has been written on the subject. The first documented report on chameleon diamonds appeared in 1943, according to the GIA Diamond Dictionary. Peter Kaplan, of the Peter K. Kaplan Inc., was astonished to witness a diamond change color on the very hot polishing wheel. The peculiar diamond was later graded light yellow green. It sold, but the baffled customer promptly returned it for a refund when the yellow-green diamond changed to dark green after storage in a jewel box.
Phenomenon Not Well Understood.
An article in GIA's Award Winning Journal, Gems & Gemology, Spring 2005, acknowledged that “...the mechanism behind chameleon coloration is not yet well understood. Nevertheless, chameleons are among the few green diamonds that can be conclusively identified as natural color, since their behavior cannot be created or enhanced in a laboratory.”
Fine-quality phenomenal diamonds often carry certificates verifying their natural characteristics. One such report by Gübelin Gem Lab, Lucerne, Switzerland, added, “Chameleon diamonds are one of the great mysteries of the diamond world. It is still not known why these diamonds change from deep green to yellow when heated or left in darkness . . . these qualities make ‘chameleons’ among the most fascinating of colored diamonds.”
A rare subset of natural fancy color diamonds, chameleons are so named for their repeatable color-change property. Prolonged dark storage, or photochroism, changes a “Classic” chameleon from its typically stable color of grayish-yellow-green to a temporary or unstable color of greenish-orangish-yellow. A few hours of dark storage might be all that is needed to bring on a color change. Also, heating a Classic chameleon, termed thermochromism, likewise results in a prominent temporary color change. At about 150º C, the induced color should be evident within a few seconds. The term “Reverse” chameleon refers to phenomenal diamonds that change from yellow in stable conditions to green after subjection to dark storage. Heating does not produce a color change in Reverse chameleons. With both groups, the change is infinitely repeatable.
Rarer still are some “maverick” color-change diamonds that have been found in Australia that exhibit this phenomenon with their own unique pair of colors. Australia’s Argyle diamond mine, famous for its fancy color diamonds, occasionally produces hydrogen-rich diamonds that also exhibit a “chameleonlike” color-change behavior. The stones are distinguished by either a blue-violet-gray color or a gray-olive color. They are thought to owe their phenomenon to high hydrogen content, but this has yet to be proven.
Identification of Chameleon Diamonds is by heating and observation. Be careful with this because heating an enhanced diamond, however, might lead to an unwanted permanent modification of color. If you suspect that the green diamond might just be an enhanced stone, the recommended course of action would be to send it to a laboratory for testing. In a laboratory, the spectroscope reading, coupled with an ultraviolet (UV) radiation reaction, will positively separate a chameleon from another type of green diamond.
Rarity.
Because of their rarity Chamelon Diamonds are not well understood by the Public or by Jewelers. Chrisities, or example, auctions a color-change diamonds in Hong Kong, because, according to Daphne Lingon, senior vice president, jewelry department, the Asian market is well-informed about phenomenal gems,which are avidly collected. During Christie’s Magnificent Jewellery & Jadeite Jewellery Hong Kong auction in May 2001, a platinum ring featuring a 4.41-carat “superb fancy dark-gray-yellowish-green chameleon diamond” went on sale and brought a sale price of $240,000.
Online jeweler Ariel Friedman of IceStore Inc., Beverly Hills, California, speculates that a combination of phosphorescence and fluorescent properties contribute to the chameleon effect in these special diamonds. Friedman estimates that he sells between five and ten chameleons a year, attributing that success to his customers, who only buy high-end goods. Recently, one of his best phenomenal diamonds went to a well-known actor who desired a one-of-a-kind gem. Friedman’s clientele understands fancy color diamonds and that “with chameleons, they own something clearly unique among the fancy colors.” A 2.95-carat, round brilliant chameleon is offered on his website for $63,720.
Zales Facing SEC Probe; Stock Price Drops 9%.
Diamonds may be forever, but at beleaguered jeweler Zale (ZLC: 25.16, -2.64, -9.5%) new management is surely hoping that an investigation by the Securities and Exchange Commission will be short-lived.
Shares of the Dallas-based specialty retailer lost some of their sparkle Monday, falling 9.5% after Zale disclosed the probe. The SEC subpoenaed records relating to accounting for extended service agreements, leases and accrued payroll, as well as for executive compensation, severance, earnings outlooks and stock trading.
MarketWatch sums up Zales plummeting fortunes this year thus far culminating with today's announcement that it is facing an SEC investigation.
It's more bad news from a company that has seen three top executives resign this year amid sagging sales and a slumping stock price.
"It's very murky," says Bill Armstrong, an analyst for C.L. King & Associates, a boutique research firm in Albany, N.Y. "According to what they told me, they don't even know what the SEC is looking for, as far as what it's investigating. The SEC communicated to them in very general terms."
Zale Treasurer David Sternblitz says regulators have offered little information beyond the request for records. The company has already publicly elaborated on its accounting practices for extended service agreements and leases, he says, and KPMG, Zale's auditor, has consistently given Zale a clean bill of health. "We will be cooperating fully, and the company believes that it has complied with generally accepted accounting principles," Sternblitz says.
The company's 2,345 stores in the U.S., Canada and Puerto Rico, as well as its online division, had sales of $2.38 billion in 2005 and are on track for sales of $2.40 billion this year, according to analysts surveyed by Thomson First Call. Its Zales Jewelers division accounts for about half of all revenue, and an average sale is between $200 and $300, says Armstrong. Other brands include Zales Outlet, Gordon's Jewelers, Bailey Banks & Biddle, Peoples Jewellers, Mappins Jewellers and Piercing Pagoda.
For its fiscal second quarter ended Jan. 31, Zale's earnings fell 7% year-over-year to $1.78 a share. The company reported a profit of $1.96 a share, but that figure didn't conform to generally accepted accounting principles.
The Feb. 21 earnings announcement came on the heels of the January resignation of Mary Forte, president and chief executive, and the February resignation of Paul Leonard, president of the Zales Jewelers division. Sue Gove, chief operating officer, quit last month. Mary E. "Betsy" Burton was named interim CEO on Jan. 31.
Change at the top can muddy the waters beneath, says Alan Ratliff, a partner at Stone Turn Group, a forensic accounting firm in Houston. Generally, he says, situations like the one at Zale could attract some extra attention from regulators.
"I would say that every one of those [areas covered by the SEC subpoena] listed is the subject of one or more interpretive accounting standards, where someone could interpret it in a particular way and be just over the line," Ratliff says. "In the context of a company where the top management resigns or gets fired, it could be something like that."
The timing of extended service agreement revenues, in particular, is an area that's ripe for trouble, says Ratliff. "When do you report revenue? Over the life of the contract, or immediately, and then have an immediate result?" he says. "If someone reports that as revenue to make things look better, or creates a huge reserve they don't necessarily need, the issues of timing can come up anytime."
Sternblitz agrees the recent management turnover is likely a reason for the SEC's interest.
"My guess would be that requesting this type of information, such as earnings guidance and compensation, is probably standard practice in order for the SEC to determine if any person profited from the issues that are in questions," the treasurer says. "Some of our executives are scheduled to talk to the SEC next month, but they haven't given us a timetable in terms of their investigation."
Zale's main priority apart from the investigation is to find a new CEO, says Sternblitz. The company has a short list of candidates and should name a new chief within three months.
Shares are down nearly 20% since. Management upheaval, disappointing financials and now accounting questions have contributed to the decline.
That said, the jewelry business isn't such a bad place to be as the population of aging and affluent customers expands. "In general, baby boomers are in their peak earnings and jewelry-buying years," says Armstrong. "I think demographic trends are generally favorable to the jewelry industry."
Unfortunately for Zale, others are lining up to lure those deep-pocketed shoppers. The company faces intense competition from Kay Jewelers, its retail rival in malls across America, as well as from jewelry departments at larger retailers such as Wal-Mart Stores (WMT: 45.70, -0.32, -0.7%), J.C. Penney (JCP: 58.47, -1.54, -2.6%), Kohl's (KSS: 53.95, +0.55, +1.0%) and T.J. Maxx (TJX: 24.41, -0.06, -0.3%).
Zale's new management needs to move away from heavy promotional discounts and regain market share, wrote Brian Tunick, an analyst at J.P. Morgan, in a Feb. 17 research note that came out just after Valentine's Day, a key time for jewelry purchases. Zale's business prospects will become clearer, he wrote, by year's end once the critical holiday gift-giving season has come to a close.
Hey Guys: Can Diamonds Buy Women Love? Guess Again.
Diamonds are a Girls Best Friend. Right?! Well, fellas, not according to a survey just released by True, an on-line relationship service. They found (surprisingly?) that women value Love and a long-term committment-relationship more than diamonds and jewelry.
Read the results of their survey here: Love Or Diamonds?
Diamond Studded Easter Egg on Sale!
Cash and Carry. The Sales Counter is HERE: Diamond Easter Egg
Pakistani Women Love Diamonds.
A Girl's Best Friend, the world over. Diamonds are A Girls Best Friend In Pakistan, Too!
From Israel Comes The Divine Diamond
National Jeweler reports of the design of a special diamond shape that takes a page from a fiction bestseller to hopefully drive sales. This is the focus of Israeli diamond designer Shlomo Cohen, credited with developing the Princess Cut in 1982.
Now, taking the idea of the "Golden Ratio" or "Divine Proportion" popularized by author Dan Brown's phenomenally successful novel, The Da Vinci Code, Cohen has released "The Vinci Diamond," a 62-facet "pentacle" cut incorporating the Divine Proportion's precise ratios.
h its table. In the end, he met this challenge: Three pentacle shapes, conforming to the exact dimensions of the Divine Proportion, are visible.
"The completion of my work at the same time as The Da Vinci Code has enjoyed such amazing international success is a happy coincidence," Cohen said. "And, the fact a major Hollywood movie by the same name will soon be released is an added bonus."
The cut has been patented in Japan, Israel, Belgium and the United States.
Fad or a diamond design that will withstand the test of time? We have blogged on this topic previously here:
New Diamond Shapes: Here Today, Gone Tomorrow?
The Cost Of "Love" Keeps Going Up!
THE price of love just got higher – much higher.
The soaring price of gold, which yesterday hit $US615.08 an ounce, might be good news for resource companies but it has pushed the cost of producing jewellery up by almost 50 per cent.
Aaron Wilson, director of Melbourne company Michael Wilson Diamond Jewellers, said the value of the gold in an average diamond engagement ring had risen by about $100 in the past 12 months.
The price of platinum had also sky-rocketed.
"The jewelery industry, especially hand-made diamond rings, is a very competitive market," he said.
"It makes it very difficult for us. People don't like the prices being put up (so) we try to absorb it as much as possible." The price of gold is now at a 25-year high, having risen about 5 per cent this month on the back of concerns about Iran's nuclear intentions.
As the spot price of gold continued to gain strength, the miners kicked along.
Newcrest Mining picked up 61¢ to $22.86, Newmont gained 36¢ to $7.54, Kingsgate Consolidated was up 17¢ at $6.26 and Lihir up 14¢ at $2.96.
Gold stocks reaped the benefit yesterday, with Lihir Gold up almost 5 per cent to $2.96, Newcrest 61 higher at $22.86 and Oxiana climbing 10 to $2.85.
Analysts said people were buying gold as a safe haven and an inflationary hedge.
Mr Wilson, who grew up in the family business, said the soaring gold price – up 40 per cent since April last year – was unprecedented.
"In the past 12 months it's gone up more than I've ever seen it," he said.
Iran Affecting Diamond & Jewelry Prices.
Commodities prices roared to new peaks on Tuesday as fund buying restarted, triggered by fears over the nuclear stand-off in Iran and the impact of surging economic growth in China, investors said.
The oil market hit a new record peak, taking key industrial metals prices with it and propelling precious metals to their highest since the early 1980s.
"The fundamental factors are the intensifying of the political situation in the Mideast Gulf and the Chinese GDP figures, which got everyone back to thinking China is eating up global natural resources," a fund manager said.
China's economy is on course for growth of at least nine percent this year signalling accelerating imports of energy and raw materials.
Fears about Iran's row with the West over the country's nuclear program sparked oil's latest rise.
IPE Brent crude set a fresh high of $72.20 per barrel before falling to $72.03 at 0847 GMT.
Brent has rallied from below $60 in December, buoyed by a fresh flow of fund investment amid mounting concern over Iran and the possibility of U.S. military action against the world's fourth largest oil producer.
"If we look forward it's continued economic growth and a potentially disastrous situation in the Mideast Gulf," the fund source said.
Most commodity indexes, which between them have attracted around $80 billion of speculative investment into the markets, are weighted heavily towards oil.
Fasten Your seatbelts!
Sales of Moisannite Fall.
Jewel maker Charles & Colvard Ltd., reported a decline of 29 percent in sales to $8 million, during the first fiscal quarter ending March 31.
The sole producer of the man-made jewel moissanite, reported operating income of $2.3 million and profit of $1.5 million or 8 cents per diluted share for the quarter, representing a 31 percent fall in operating income and a 24 percent drop in profit.
In a statement issued on April 18, the company attributed the drop in revenue to a decline in orders from jewelry maker K&G Creations who in 2005 placed orders for its initial rollout of moissanite jewelry for Finlay.
Diamond the Size of Hens Egg Found!
A small diamond company uncovered a huge 235-carat gem -- the size of a hen's egg -- in South Africa only a few weeks after launching its operations, the firm said on Friday.
Nare Diamonds Ltd. said it uncovered the rough gem on Wednesday after resuming mining in March at the Schmidtsdrift mine, 50 miles northwest of the country's historic diamond center of Kimberley.
The mine was shut down three years ago by another firm that went bankrupt, a spokesman said. During the mine's previous operations, the average size of stones was 1.14 carats.
"The large-sized gemstone is octahedron in shape and of very good quality according to a third party assessor," the statement to the London stock exchange said.
It is hard to set a value for the diamond because typical valuation measures fall away when diamonds reach a certain size, the spokesman said.
London-listed Lonrho Africa Ltd, which recently bought a 17 percent stake in unlisted Nare, issued the statement. Its shares shot up 7.5 percent to 28-3/4 pence by 1330 GMT (9:30 a.m. EDT).
The world's biggest diamond group, De Beers, found a 316.7 carat diamond at its South African Venetia mine in January, the largest-ever find at Venetia.
The largest-ever gem, the Cullinan, weighed in at 3,106 carats when De Beers discovered it in 1905, but other massive diamonds have ranged around 600-900 carats.
In 1986, De Beers discovered the 755.5-carat Golden Jubilee, which is now the world's largest polished diamond at just over 545 carats.
A spokesman for Nare said the discovery does not necessarily mean the mine holds other sizeable gems since it is from an alluvial deposit -- a former river bed where diamonds were swept from a smattering of other eroded deposits.
Nare, which has three other diamond projects, is planning to list on the London stock exchange around the middle of the year.
Crude Oil Hits $75.00: Effects on Diamond Sales?
Crude-oil futures climbed to a high of $75 per barrel Friday for the first time ever for a front-month contract on concerns about tensions surrounding Iran's nuclear activities, violence in Nigeria, and tight U.S. supplies of unleaded gasoline. June crude was last up $1.26, or 1.7%, at $74.95 per barrel. "We often see this sort of short covering in a record-setting bull market ahead of a weekend, since nobody is sure where we may be Monday," said trader Kevin Kerr, who is also editor of MarketWatch's Global Resources Trader.
With Mother's Day and Summer Travel season/vacations approaching, Jewelers are uncertain what effect this will have on Diamond engagement rings / Jewelry sales.
Hey! Do you know What a Bottega-Venatta Is?
Either did I, since Bottega Veneta may not be as widely recognized as its more famous luxe-label sisters, but to wealthy consumers, the lesser-known line is the most prestigious luxury fashion brand.
In the 2006 Luxury Brand Status Index survey (LBSI) of Luxury Fashion Designers conducted by the New York-based Luxury Institute, Bottega edged out both Hermès and Armani to claim top rating.
The Luxury Institute surveyed a national sample of more than 500 households with a minimum of $200,000 in gross annual income and a minimum net worth of $750,000.
Bottega Venatta handbag. Only $3850.00
Wealthy customers who were surveyed rated 21 leading luxury fashion brands based on their perceptions of critical brand reputation metrics. Brands rated included: Armani, Bottega Veneta, Burberry, Calvin Klein, Chanel, Christian Dior, Coach, Dolce & Gabbana, Façonnable, Fendi, Ferragamo, Gucci, Hermès, Hugo Boss, Izod, Lacoste, Louis Vuitton, Marc Jacobs, Polo Ralph Lauren, Prada, Versace and Yves St. Laurent
Bottega Veneta's relatively low public awareness level of 21 percent, versus Hermès, which garnered 55 percent recognition, and Armani, which drew 74 percent, portends a strong future for the classic Italian brand, which is part of the Gucci Group portfolio.
"Those who know the brand rated it highest in quality, highest in uniqueness and exclusivity, as the brand most used by people who are admired and respected, and the brand most able to make its customers feel special," Milton Pedraza, CEO of the Luxury Institute, said in a release. "No surprise then, that it was rated the most worthy of a significant price premium."
The Luxury Institute's independent surveys are designed to measure brand performance from the perspective of the wealthy consumer. Publications include the monthly Wealth Report, the Luxury Brand Status Index surveys, the Luxury Best Practices surveys and the Luxury Consumer Experience Index surveys.
Belgian Gov't Reduces Taxes On Diamond Companies.
At the end of 2005, a new fiscal law was adopted that will make Belgium far more attractive to all companies doing business there —which means not only diamond companies, but firms from all business sectors and industries.
The principle of the new program relies on what’s been referred to as a “notional interest rate.” As of accounting year 2006, all Belgium-based companies will have the opportunity to calculate a totally fictitious interest rate on their equity. This interest rate — which is currently between 3.442 and 3.942 percent — will be deductible from the taxable profit, a measure that is likely to reduce the taxable profit of businesses to verylow levels. The effective tax burden, especially for larger capitalized companies, could drop from the usual 28 or 34 percent corporate income tax rate to the negligible figure of 6 percent in the best cases.
The new tax law does not have any stringent conditions — no employment condition, no investment condition, applicable to all companies, no limitation on activity — and will restore the balance between Antwerp and other competing diamond centers.
Kaushik Mehta of Eurostar Diamond Traders, however, has a different opinion: “It’s very good as you pay less tax. The notional interest will certainly help ease business in Belgium, but it’s still no match for Dubai, at least as far as their zero tax is concerned. Antwerp has other assets, such as a huge market, to compete with other diamond centers.”
The notional interest tax plan will also assist with respect to DeBeers Diamond Trading Company (DTC) and the Banks. The diamond industryr is typically a sector that requires large working capital and relatively small profit margins, and a substantial number of companies have capital booked as current account. Currently, this cannot be taken into consideration for the notional interest deduction and is booked as a loan. From this year onward, registration fees on capital increases of 0.5 percent are abolished and there is virtually no cost involved anymore in increasing the statutory capital. Therefore, it is useful to incorporate the loans/current accounts into statutory capital. This, of course, can substantially increase the equity of the company, which also results in an improved solvability toward third parties — this is equity against balance sheet total. Banks are, indeed, pushing diamond companies to move toward an equity of 15 percent-plus because traditionally the equity of Belgian diamond companies is very low. Also, for sightholders, DeBeers takes into consideration the financial strength of a company, which is reflected in the equity and solvability ratio.
Consequently, the larger the capital, the higher the amount of the notional interest deduction. This allows companies with larger capital to pay lower taxes on their profit and as a result have higher net profits, which, again, they can capitalize. The following year, the equity has grown with the increased net profits of the previous year on which the notional interest deduction is applicable. So, this creates a rollerball effect in which equities grow quicker and quicker and are constantly leveraged with the notional interest deduction the following year.
It’s been understood that the measure would also benefit smaller-size companies, depending on their degree of capitalization, as the law applies to all corporate entities. Percentwise, it can create the same result, but, of course, the nominal amounts are smaller.
The first cycle of the system will be completed within the year. Tax reduction is positive in that it spurs production and eventual tax revenue. The effects on consumer prices remains to be determined.
Web Analytics Vendor warns a fifth of pay-per-click activity may be Fraudulent.
ClickTracks Analytics has introduced updated software for detecting click fraud, saying that an average of 20 percent of a company’s pay-per-click adverting budget can be traced to fraudulent activity.
The problem stems from individuals or companies trying to increase pay-per-click online ad traffic through illegitimate means. By driving up traffic on ads that show up next to search results, they would get more revenue from the advertiser.
In some cases, the fraud involves using software robots to do the extra clicking, or hiring people to click repeatedly on the ads.
The Santa Cruz, California-based company’s products, ClickTracks Professional and ClickTracks JDC, compare different statistics from the ads and highlight variances that show evidence of suspicious activity. The technology works with the Google, Yahoo, and MSN search engines.
The software highlights statistics such as the number of clicks that come from a certain country, the number of sessions with no referrer site for the click, and the number of different IP addresses.
‘An automated bot flies right underneath the wire.’ says Michael Stebbins, of Clicktracks.
Joe Tedd, operations manager at the New York City-based diamond e-tailer DiamondHarmony.com, has been testing the products on his site. “Since we began using it, which was at the start of the holiday shopping season for ’05, it helped us identify up to $10,000 in fraudulent clicks,” he said. “The tool paid off for us in the time we began beta testing.”
DiamondHarmony spends close to $30,000 per month on online advertising. Mr. Tedd said that without a click fraud tool, his company would not have noticed suspicious activity until much later this year.
At first, he had difficulty confronting the search engine where the suspicious activity originated. The company wouldn’t believe him until he produced detailed reports that prompted the search engine to acknowledge there was a technical glitch and give DiamondHarmony a refund.
While the technical glitch by itself accounted for a proportion of the extra clicks on his company’s ads, Mr. Tedd believes some fraudulent activity also occurred that exploited the technical glitch.
“We debugged something for them that they had never encountered before, and they realized the issue was something on their side,” he said.
Michael Stebbins, vice president of marketing at ClickTracks, said there are click farms run from India and China that drive up click traffic, and sophisticated software robots that can be difficult for many web advertisers to detect. “An automated bot flies right underneath the wire,” he said.
ClickTracks’ 7,000 customers include major companies like Coca-Cola, Intuit, NASA, Nokia, Nordstrom, Pfizer, and Volkswagen.
Pay Per Click (PPC) advertising is big revenue for Google, Yahoo, and MSN and getting more expensive all the time.
Indeed, BlueNile, a leading diamond e-tailer partly ascribed their lower 4th Quarter 2005 earnings results to significantly increased PPC advertising costs.
What A Diamond Necklace!
The Machester News reports of a soccer star who commissioned a $447,124 unique diamond necklace for his girlfriend.
Altrincham-based jewelers David M Robinson said that the glittering necklace is the most expensive they have ever made.
The firm refused to say who bought the necklace, but the Manchester Evening News understands the buyer is a top Premiership soccer player living in Cheshire and playing for one of Manchester's big two clubs.
He made several trips to see the designers before presenting the piece to his lucky girlfriend this past week.
The necklace, which has 106 diamonds, is made up of the purest diamonds imported from a South Africa mine and hand finished over three painstaking months at David M Robinson.
A spokesman for the company, which also has premises in Manchester city center and Liverpool, said of the buyer, "He is a high net worth individual based in the northwest of England and involved in the soccer industry."
The mystery player commissioned the necklace from Robinsons and even got involved in the design process himself. The piece is made up of 106 diamonds at a total of 20-carats and is mounted on 18-karat white gold. The main diamond is a 3-carat, D Flawless.
Jo Harvey, spokesman for the jeweler, said, "This piece needs little, if anything, to complement it. The stone is very pure, very clear and startling."
The owner of the piece, and his lucky lover, were said to be "absolutely delighted" with the necklace.
DeBeers Won't Raise Diamond Prices For Now.
World number one diamond company De Beers Group said Tuesday that the rough diamond market is currently struggling, but retail sales remain strong.
As a consequence, the company isn't planning to raise diamond prices in the near future. "It depends on how the market goes," De Beers Chairman Nicky Oppenheimer told Dow Jones Newswires on the sidelines of Anglo American PLC's (AAUK) annual general meeting.
Anglo American, the diversified natural resources group, is a 45% shareholder in De Beers. The Oppenheimer family owns 40% of the company, with the government of Botswana owning the balance.
The diamond market is "in two places at the moment," said Oppenheimer.
Interest-rate rises worldwide have precipitated a "greater strain" on rough diamond demand. "But as long as retail remains good the pull-through will take place in due course," said Oppenheimer. "I think our market's fine at the end of the day."
De Beers mines 40% of the world's rough diamonds. Its sales and marketing arm, the Diamond Trading Company, markets about 45% of the world's diamonds.
De Beers made a small increase in the diamond price in February, said Oppenheimer, but it hasn't moved since then.
Consumers Pay attention. This lull won't last long.
Diamond Shoppers: A Lab Grading Report Makes a BIG Difference.
Diamond shoppers will be out in force with the upcoming Mother's Day, Graduations, and June anniversarys.
Buying a diamond wth an accurate lab report is crucial. Stay away from labs that are not well known.
Discussion going on right now over at Diamondtalk.com on reliability of diamond lab grading reports. Discussion is here:
Diamond Reports
Our view is that the most reliable Diamond grading labs today are the GIA and the AGS. Stick with them and know that you're getting an accurately graded diamond.
Buying Your Diamond Engagement Ring On The Internet: Why You Can't Rely On Just The "Numbers".
We have long advocated and blogged that buying a diamond on-line from an Internet vendor that does not actually have the diamond in-house can be dangerous to your psyche and pocketbook. The link is here: Buying Your Diamond On The Internet
This fact was once again driven home to us and one of our clients who requested information on two Pear shape diamonds listed on our Exceldiamonds.com website Exceldiamonds.com.
Both diamonds weighed .81 carats, were VS-1 Clarity, were graded by GIA, and had different Millimeter Measurements . One was a "D" color, the other a "G" color. How do you make a decision? Tough way to spend thosands of dollars, isn't it?
We called in both diamonds from the manufacturer and did these photographs for our client. We want you to see the dramatic visual differences between these two diamonds. Both diamonds are beautiful but uniquely different in shape and light refraction. The .81 D color has a crushed ice look with good scintillation, and is a classic "Tear-Drop" pear shape; whereas the .81 G color is much more dispersive and has what Bill Goldberg would refer to as a "sexy shape". Both diamonds are very appealing and will make for a beautiful diamond engagement ring.
There is no "right" or 'wrong" answer or decision on these two diamonds, it's entirely subjective. You won't get this information from a drop-shipper who never sees the diamonds he sells and doesn't have a clue. Might work if you're buying a cuisinart from Walmart or a book from Amazon but not diamonds which are visual.
Which Pear Shape would you buy?
China's Jewelry Sales in 2006 To Increase By 40%!
The Shanghai Daily News reports today that China’s jewelry sales is expected to grow by more than 40 percent within five years.
Sales of diamond, gold, platinum and other jewelry are set to top $25 billion in China by 2010, said Yang Sisan, secretary general of Gems and Jewelry Trade Association. "China's jewelry market will post a sound growth, above the blistering economic growth in the future," said Yang.
In 2005, China’s jewelry sales reached $17.5 billion, a 15 percent increase over 2004. Shanghai’s jewelry sales in 2005 increased 10 percent to $1.6 billion, comprising approximately 10 percent of the country’s total.
The National Gemstone Testing Center, the country's top jewelry examining body, will open a laboratory in Shanghai on May 8 in order to boost the Shanghai jewelry market. The 1,000-square-meter lab will give jewelers and consumers an official platform to settle disputes over quality of jewelry products. A similar lab exists in Shenzhen, the country's jewelry processing center.
The association will also hold its biggest jewelry fair in Shanghai this year together with the country's gold and diamond exchanges. The fair, which will cover 23,000 square meters, will be more than double the scale of former fairs in the city with top industry leaders slated to take part.
Market analysts anticipate that the new law cutting the value-added tax on diamonds from 17 percent to four percent will also boost the country’s jewelry sector. The change is expected to take place within one month.
The Canadian Government has also recently slashed taxes on Diamond Rings, Engagement Rings, and Wedding Bands and has seen a dramatic increase in Consumer purchases.
Are you listening U.S. Congress?
Remember to Wear Your Diamond Engagement Ring When You Go Shopping Or You Could Wind Up In Jail!
From this morning's London Times:
There are many reasons why Mr Science Notebook doesn’t wear a wedding ring. Chiefly, when he tried one on, he thought it “felt funny”. He doesn’t really do bling.
I shall now have to warn him against hanging around Canadian supermarkets. For, in such places, social psychologists lurk unseen, noting the presence or absence of such jewellery among unwitting shoppers. From behind the frozen peas the psychologists have observed that people who don’t wear wedding rings are more neglectful of their charges than those wearing wedding bands.
The findings, by Andrew Harrell and colleagues at the University of Alberta, were presented at a conference this month and in a news release sensationally entitled: “Absence of wedding ring connected to parental neglect”. I can’t better the description of this utterly weird experiment, so I reprint it here . . . “862 caretaker-children combinations were furtively observed in 14 supermarkets in Edmonton. Caretaker neglect was measured according to how often the caretakers or their charges, estimated to be between one and seven years old, wandered out of sight or were more than 10ft away from each other — too far to prevent most accidents.” Leaving a kid in a trolley while dashing to a neighbouring aisle was a no-no, for example.
On average, 14 per cent of caretakers — with or without rings — lost sight of their charges at least once. But young, attractive adults without rings were particularly lax. Among women in this category, 19 per cent failed the vigilance test. Among the men, it was 25 per cent.
Dr Harrell’s conclusion? The lack of commitment to marriage, signified by unadorned fingers, extends to a laissez faire attitude to the kids. Harrell implies that these customers might have been shopping for more than just Shreddies, and might have been distracted by “an interest in establishing social, sexual or emotional ties outside of marriage . . .” And you thought that chap dithering by your trolley had just lost his way to the beer aisle!
Am I alone in finding this an excessive leap of imagination? Have you tried keeping a boisterous six-year-old within 10ft of you? Might the neglectful caretakers not have been parents? Dr Harrell’s team was not permitted to speak to shoppers, so we don’t know. That wasn’t the only methodological drawback. “A few children spotted us and would ask their parents ‘Why are those people following us?’,” Dr Harrell says. “Their carer would usually ignore them.”
If one wanted to do a serious study on whether unmarried parents are more neglectful of their children than married ones, why the supermarket espionage? After all, in the pantheon of perilous environments, the home reigns supreme. According to the Royal Society for the Prevention of Accidents, children regularly burn, scald or poison themselves, start fires or fall down stairs or out of windows. They are treated in A&E departments, or by GPs, both of whom have access to family records.
Dr Harrell holds his hands up: “You’re right. We had to make do with the limitations of this study but we hope to look at such things in future.” Meanwhile, he stands by the unpopular thesis that unwed couples are probably more lax than marrieds: “Sometimes the truth hurts, and if it’s predictive of injury and death, then we have to say it.”
Hey, Harrell! Why don't you turn around, bend over, and see if you're hat's on straight. You'd be better off and so would we if you drove a Taxi.
Bluenile 1Q Profits Down 9%
On-line diamond retailer Bluenile reported first quarter profits down 9 percent on Sales that increased 15% for the period ending April 2, 2006. The number of orders rose 12 percent and the average order was about $1,482.
The cost of sales rose 15 percent to $40.33 million. Expenses related to sales and administration rose 26 percent to $7.7 million, and capital expenses nearly tripled to $608,000.
Blue Nile reported first quarter results after the bell. Shares closed down 27-cents to $33.65.
During an investor's conference call, Blue Nile CEO Mark Vadon said Blue Nile's prices were "more aggressive" in the quarter and the company had lowered diamond prices to sell more. He also cited the increasing competition and costs for keywords in Pay Per Click advertising on the major internet Search Engines; Google, Yahoo, and MSN.
Website traffic rose during the quarter and the company plans an aggressive conversion rate strategy in 2006 to drive sales. Conversion rate improvements are related to attracting more buyers per click.
Pictures of an AGS-0 Princess Cut Diamond!
Hey Folks!
We just brought in a beautiful loose princess cut diamond that is certified by the AGS diamond lab and scores an AGS-0 on their new cut grade scale. The diamond is indeed quite beautiful with excellent brilliance and dispersion.
Here are a few photos.
Diamond Sales Increasing.
Consumer drive for diamonds hasn't waned in the past decade, with the Diamond Information Center (DIC) reporting 2005 as the 10th consecutive year of retail diamond jewelry's growth in the U.S.
Diamond jewelry sales rose in 2005 to $33.7 billion, up 7 percent from $31.5 billion in 2005. In addition to the growth of overall U.S. sales, which comprise more than 50 percent of worldwide sales, transactions grew by 3 percent and average ticket prices were up by 4 percent.
Diamond E-Tailer Odimo.com In Trouble: Signs of Things to Come?
Odimo Incorporated (Nasdaq: ODMO), an online retailer that offers high quality diamonds, fine jewelry, brand name watches and luxury goods through three websites (diamond.com, ashford.com, and worldofwatches.com), today announced that it received a notice from The Nasdaq Stock Market ("Nasdaq") dated May 2, 2006
indicating that for the prior 30 consecutive trading days, the Company's common stock has not maintained a minimum market value of publicly held shares of $5,000,000 as required for continued inclusion by Marketplace
Rule 4450(a)(2) (the "Rule").
For purposes of the Rule, Nasdaq defines publicly held shares as total shares outstanding, less any shares held by officers, directors, or beneficial owners of 10% or more of the outstanding
shares. In accordance with Marketplace Rule 4450(e)(1), the Company was provided 90 calendar days, until July 31, 2006, to regain compliance by having its publicly held shares maintain a market value of $5,000,000 or
greater for a minimum of ten consecutive trading days.
Bluenile.com and Amazon.com reported 1Q results yesterday that were not good. Bluenile showed higher sales but profits were down 9% and Amazon.com also reported higher sales but with profits down by 35%.
For Bluenile, this is the second consecutive quarter of reported lower profits.
We may be seeing the beginnings of a shakeout among diamond and jewelry e-commerce company websites.
Canada Drops Jewelry Excise Tax!
The Canadian Government today abolished it's jewelry excise tax.
Canada's conservative majority in government dropped a number of excise taxes on May 2 to create "a more competitive business tax system," said Jim Flaherty, the country's finance minister.
Along with the tax changes, Canada's jewelry excise tax was eliminated. In June 2005, Parliament voted to abolish the jewelry excise tax over a period of 5 years.
"Jewelry is available at all price levels and is purchased by a wide range of Canadian households," the budget report read. "Repeal of the Excise Tax will recognize this and ensure that the Canadian jewelry industry is able to compete on a fair and equitable basis with other retail and manufacturing businesses in Canada. It will also serve to reduce the compliance burden on the jewelry industry, a particular benefit to small businesses.”
The Canadian Jewellers Association (CJA) briefed the industry on the news. Morris Robinson, chair for the group's government relations committee, said, “We are delighted that the conservative government has ended the inequity and confusion inherent in the Excise Tax in the content of minister Flaherty’s budget.
According to a statement by CJA, the "vote of confidence to our industry is the result of many group and individual efforts, specifically to the Prime Minister [Stephen Harper] for honoring his campaign promise to our sector."
Are you listening U.S. Congress? Get rid of these consumption taxes!!
Diamond Engagement Rings in The Muck!
Antwerp and Diamond Cutting; A Developing Oxymoron?
With increasing competition from low-cost Asian countries like India and China, Antwerp is discovering that diamonds cutting business may not be forever.
After centuries of being the undisputed world leader in producing and marketing diamonds, the Belgian port city is facing a series of new challenges, including globalisation, which are threatening to take the shine off its traditional role. The Antwerp tradition of cutting and trading the most precious of gems began some 560 years ago. Now the industry, like other business, is shifting the bulk of manufacturing to low-wage countries like India and China.
In the 1970s, more than 25,000 diamond workers were still active around the medieval heart of Antwerp and in the nearby villages of the countryside. Today, there are less than 1,000 specialized polishers. Mr Philip Claes, director of corporate affairs at the High Diamond Council, the industry's governing body pointed out that labour costs in Asian Countries for polishing are about one-fifth lower than Antwerp, it was impossible to compete with that.
Today there is no denying that Indians are Antwerp's main diamond merchants. They handle two-thirds of the city's diamond trade, which last year recorded a total turnover of $39 billion, making up seven per cent of Belgian exports and employing 30,000 people.
Will Flemish become China's second language?
New York Diamond Dealers Club To Receive Special Award from U.S. Gov't.
The New York Diamond Dealers Club (DDC) will be presented a special export performance award during its 75th anniversary dinner on May 16. Deputy secretary of the United States Commerce Department, David Sampson, is expected to make the presentation to the DDC during the evening celebration.
The gala dinner, which will be held at the Rainbow Room in Rockefeller Center at 6:30 p.m., will follow a day-long celebration for DDC members. To kick-start the celebration at a morning reception (9:30 a.m. at the Rainbow Room,) Distinguished Service Awards will be presented to diamond and jewelry industry notables, and a group of DDC members will be honored for their longtime club service. The DDC will host a luncheon at the club midday.
The DDC, founded in March 1931, was the first diamond exchange in the United States. Membership at present is about 2,000 and includes manufacturers, dealers, brokers, and rough diamond merchants.
Brother, Can You Spare 10 Million?
House of Taylor Jewelry, which suffered losses for its fiscal year 2005, has secured $10 million in financing from investors to buy inventory and to use for marketing and working capital.
House of Taylor Jewelry saw sales of $5.61 million and a net loss of $3.5 million for the year ended Dec. 31, 2005. It attributes the loss to numerous factors, including a restructuring, a focus on designing and sourcing new products; developing sales and marketing strategies; reducing inventory of discontinued product; and increased research, development and marketing, according to a May 1 2006, press release from the company.
In May 2005, the company underwent a restructuring after acquiring the licenses to market jewelry under several new brand names including Elizabeth and House of Taylor Jewelry (both designed by Hollywood legend Elizabeth Taylor) and Kathy Ireland for House of Taylor Jewelry (designed by retail mogul and former model Kathy Ireland).
The company launched the new merchandise during the Las Vegas market week in June. In connection with the restructuring, the company saw one-time expenses of $656,000 and non-cash amortization of about $590,000. This year, it will be back in Vegas with new merchandise.
Is there such a thing as a "Born Again Sucker?" Sure looks like it!
Will You Consider an "I-1" Clarity Graded Diamond?
Many consumers will shy away from considering an I-1 clarity grade diamond either because of what they have seen, heard, or read. In most cases, I -1 denotes inclusions that are visible to the naked eye. Valid when it involves a mediocre cut diamond as light return to your eye is minimal due to facet mis-alignment.
On the other hand, in a finely cut diamond, light refraction through the Table and Crown facets to your eyes is significantly increased and serves to "mask" your ability to see these inclusions in the face-up position from the normal viewing distance of 8-14 inches and will be "eye-clean" and look like a VS clarity.
As a consequence an I-1 / I-2 clarity grade in a finely cut diamond can represent excellent value and allow a consumer to go up in carat weight as well as Color.
An example of an eye-clean I-1 is attached below.
Diamonds Can Detect Eavesdropping!
UPI reports today on the latest cutting edge scientific research which displays the versatility of diamonds.
Researchers at the University of Melbourne, Australia, have found a glamorous solution to the problem of communications systems being hacked by eavesdroppers -- diamonds. The School of Physics at the university has just secured $7 million in international venture funding from international communication firms to develop the diamond-based anti-eavesdropping devices. With the new technologies, IT managers should be able to detect network prying and prevent the theft of highly sensitive information.
The project is headed by Shane Huntingdon, a scientist in the university's physics department. Huntingdon is also the chief executive officer of Quantum Communications Victoria, which has a program at the school where the quantum-based technology is being developed. The driver for the technology has been the global economic problem of eavesdropping, which causes huge financial losses for security agencies -- the FBI has estimated that breaches of critical information sent via the Internet costs millions of dollars worldwide each year. "The challenge has been to completely remove all avenues of interception by eavesdroppers," Huntingdon said.
The system won't be able to prevent criminals breaking into communications networks in an attempt to steal valuable information. What it can do is let everyone involved know that an outsider is listening in on the optic fiber that the messages are being sent down, which is a vital improvement on the current system.
Huntingdon has described how currently eavesdroppers can hack into existing communications systems and extract information from optical systems without users being aware of it. With the new quantum technologies users can cut the line as soon as they realize that they're being spied on. The message can then be re-sent through an uncompromised channel.
The key to the technology is quantum cryptography -- sending messages via optic fibers, one photon at a time. The synthetic diamonds are grown to have a targeted defect that allows them to produce this single photon of light. As quantum states cannot be copied, users of the system will know immediately if anyone steals the information. As Huntingdon says, "If you're sending one photon at a time and one goes missing, you definitely know it." Although other similar commercial systems exist in the United States and Europe, they use filtered lasers to approximate single photos instead.
The target market for the system is groups who deal in extremely sensitive data and for whom any loss of information is unacceptable. These include financial institutions, security agencies and governments, and the first-generation products from the technologies are likely to be targeted towards them for the transmission of secure datasets, such as a bank's daily offsite backup. Later generations would have more widespread uses with the commodity networking market. For now, the expected date of release of the first prototype is in three years.
If the technology takes off, there may also be an unexpected side effect hitting the gems market. QCV grows the diamonds it uses on the grounds so that they're cleaner than mined gems, but increased need for artificially grown diamonds for industrial purposes could lower the market value of jewels as gem-quality diamond producers take advantage of the new demands.
Although the technology was pitched as being a way of addressing Australia's critical need to keep up with the rest of the world in Internet security, the rest of the world is keeping tabs on the project. The initial investment came from state and federal funding when QCV was awarded $2.6 million as part of a grant from Victoria's Department of Innovation, Industry and Regional Development to develop the technology. The consortium of quantum communication and commercialization companies that the group has just signed with includes Qucor Pty. from Sydney, but also MaqiQ Technologies in Japan and the California-based Silicon Graphics Inc.
More than simply being another step on the road to increased online security, Huntingdon believes that his project could also kick-start the quantum-communications industry worldwide, taking quantum technology from theory to reality. "It's not a stronger form of encoding" he enthuses, "it's a new paradigm."
China and Dubai Fastest Growing Diamond Markets.
The Middle East along with China are the world's fastest growing markets for diamond jewlery, said Guy Leymarie, chief executive of De Beers LV, the retail business unit of South Africa's 118-year-old diamond powerhouse.
"But China does not have so much of the high-end," he said at the first De Beers store in the region that opened recently in the Mall of the Emirates.
"Dubai is interesting because you have a lot of business in the very high-end as people have a lot of money here. And now there is a great deal of business in the $10,000 to $20,000 range that is good for us as well."
In the early years after its founding in 1888, De Beers produced over 90 per cent of the world's diamonds. It is still the world's largest supplier of rough diamonds and coined the four Cs that are now popularly used to determine quality clarity, cut, carat and colour.
Its first jewellery retail outlet in the Middle East, a business it entered in 2002, opened in partnership with Salam International Investments, will help it develop customer relationships that are so important for selling jewlery, Leymarie said.
Rivals Cartier and Tiffany have already been here for some time.
De Beers has plans to open stores in several cities across the GCC, including two this year and another three next year. It currently has 12 stores in London, Paris, New York, Los Angeles, Tokyo, Kyoto and Osaka.
The De Beers range of jewelery includes the classic single-stone and three-stone pieces that make up about 30 per cent of its business. There is then the high-end range, priced at over $50,000 and designer jewellery, which makes up another 30-40 per cent of the business.
The average price of a stone at De Beers is $10,000 but its cheapest rough diamond retails for as little as $350.
Guy Leymarie estimates global diamond sales at $65-$70 billion a year, with demand growing nine to 10 per cent annually. Demand in the Middle East is growing faster and makes up 10 per cent of worldwide sales.
About 85 per cent of global diamond jewelery sales are unbranded and sold by small players while 25 to 30 brands compete for the other 15 per cent of the market.
Artistic Diamonds?
This man is out of his skull! You Call This Art?
Juice Bar Owner Becomes Diamond Expert! Easy as American Pie
Everybody's a Maven:
Buy Juice, Get A Diamond!
Fathers To Get Jewelry On Their Day.
Twelve percent of consumers plan to purchase jewelry or watches as Father's Day gifts this year, reports a study from the Jewelry Consumer Opinion Council (JCOC).
Since 2003, the percentage of consumers considering fine jewelry for Father's Day gifts has steadily increased, according to JCOC.
Of those interested in buying jewelry as a Father's Day gift, 60 percent say they would purchase a watch, 16 percent would consider a fashion ring and 6 percent would buy a necklace.
More than 25 percent of those buying fine jewelry for Father's Day say they would purchase plain metal jewelry, but 41 percent would consider buying jewelry with diamonds.
Of the fathers surveyed, 14 percent say they would like fine jewelry gifts for Father's Day, with watches and rings remaining favorites. More than half of fathers (52 percent) say they would like diamond jewelry.
Fifty-four percent of the gift-givers surveyed say they would purchase some sort of Father's Day gift this year, and 40 percent have not yet decided what to buy.
Zales Searching for New CEO.
Zale Corp. has narrowed its search for a new chief executive to two leading candidates from outside the jewelry retailer, though a final decision likely won't be made for several weeks.
Mary "Betsy" Burton, a Zale board member who assumed the interim CEO job upon Mary Forte's dismissal in January, said Thursday that the search remains open though Zale has identified "a couple of excellent candidates."
Burton added that a Securities and Exchange Commission investigation of Zale's accounting announced last month hasn't deterred candidates in the search pool. Even so, an announcement isn't imminent.
"There is a concern that we're in the throes of finalizing holiday (strategies)," Burton said in an interview. "To put someone else in at such a critical juncture might actually be more disruptive."
Irving, Texas-based Zale, a retailer of diamonds and jewelry, collects most of its net in the Christmas quarter, its fiscal second. Zale ranks as the No. 2 specialty jewelry retailer in the United States by marketshare behind Sterling Jewelers Inc., the U.S. arm of London-based Signet Group PLC. In the United States, Sterling operates the Kay Jewelers and Jared the Galleria of Jewelry brands. Also in the U.S., Zale operates Zales Jewelers; Zales Outlet; Gordon's Jewelers; Bailey, Banks & Biddle; and Piercing Pagoda.
Forte, Zale's CEO since 2002, resigned in January after a strategy to shift flagship brand Zales Jewelers to a more fashionable, upscale clientele tarnished the retailer's holiday results. Following her out the door were Zales Jewelers President Paul Leonard in February and Chief Operating Officer Sue Gove in March. Zale issued the three nearly $13 million combined in severance pay
Laser Inscription Of Diamonds. Update.
Laser inscription of diamonds has taken on greater popularity over the past several years.
Typically it entails the inscription of the lab report number and perhaps a company logo which serves as a means of identification.
Lazare Kaplan pioneered in the development of this laser technology. Since then several other companies have attempted to develop laser inscription machines in order to capture the growing demand for this service.
In a recent announcement, lazare kaplan has filed a suit against Photoscribe Technologies alleging infringement of patent for the laser inscription of gemstones. PhotoScribe's president and CEO David Benderly said his company holds seven patents relating to diamond marking and that the lawsuit is "totally without merit."
PhotoScribe Technologies introduced its first diamond inscription laser in 1999, “after doing its due diligence,” according to Alan Israel and Martin Schiffmiller, partners in the New York City patent law firm of Kirchstein, Ottinger, Israel & Schiffmiller, P.C. “After a thorough patent search, we gave PhotoScribe our assurance that the company was not infringing on any existing patents,” said Israel and Schiffmiller.
Projections are that in the next five years, every stone from one fifth carat on up would be marked with some inscription, such as a lab name and certificate number, a manufacturer’s SKU, or a brand logo.
Hey Baby, Suck on This!
A silver spoon apparently doesn't make the cut for Angelina Jolie and Brad Pitt's new baby daughter, but a personalised pacifier-maker will instead gift the celebrity couple a $17,000 diamond-studded pacifier.
"It's a solid, white-gold pacifier, with 279 diamonds. The whole front of it is covered basically with diamonds, three-carat plus," Mathis Riiber, a founder of Itsmybinky.com, told AFP.
Riiber said the pricey aide was originally made for Donald Trump's baby, and he claimed that he will gift the pacifier to Jolie and Pitt in the next couple of weeks on a television show.
The company offers customised pacifiers of colored diamonds for high-end customers.
Jolie and Pitt's baby girl, Shiloh Nouvel Jolie-Pitt, was born on May 27.
Fly Me To The Moon. I See BIG DIAMONDS!
Outer space is full of diamonds. Big Icy white Bling-Bling! Just stretch out your hand and grab a fistful!
Book your space flight now.
The story is here: Diamonds In Outer Space!
British Women Are Allergic to Diamond Engagement Rings
Or so it seems.
An article in todays U.K. Daily Record reports on a study that shows engagement and wedding rings worth £94million are lost in Britain within a year of being bought..
Insurance firm Prudential said four in 10 women polled had lost their engagement ring within the first five years of receiving it.
But while one in 20 women lost their wedding ring in the first year, one in five men confessed to having to replace theirs.
And one in six men admitted losing it within three months of the big day.
Is there something in the British water?
DeBeers Wins Lawsuit.
Reuters today reports that a a federal judge ruled today that a New York diamond merchant was found to have acted in bad faith when he sought to capitalize on the famed De Beers name as part of his plan to sell diamonds on the Internet.
A joint venture of South Africa's De Beers Group brought the trademark lawsuit against Marvin Rosenblatt in 2004. The case went on trial in May in federal court in Manhattan.
U.S. District Judge Denise Cote ruled Rosenblatt violated trademark law through the use of the name DeBeers Diamond Syndicate Inc. that rightly belonged to plaintiffs De Beers LV Ltd., a joint venture of De Beers and luxury goods maker LVMH Moet Hennessy Louis Vuitton (LVMH.PA: Quote, Profile, Research).
Rosenblatt's decisions to apply for dozens of Internet domain names with the name De Beers, obtain a Web site proposal and seek investment dollars "were done in entirely bad faith," she said.
Spokespeople for Rosenblatt and De Beers were not immediately available.
Rosenblatt incorporated under the name DeBeers Diamond Syndicate Inc. in 1981 in Delaware, but the registration lapsed. In 2002, he renewed the incorporation and then registered it with the U.S. Patent and Trademark Office to buy and sell loose diamonds, according to court papers.
De Beers, which controls about two thirds of the world's uncut diamond supply, made its initial foray into diamond retailing in London in 2002 in its joint venture with LVMH. The first De Beers store in the United States opened in June 2005 in New York.
During the trial, lawyers for De Beers LV argued the company had exclusive ownership of the name in the United States and that use of both the De Beers and DeBeers Diamond Syndicate names created confusion among consumers.
Rosenblatt's lawyer argued De Beers' trademark in the United States does not cover diamonds, but instead covers other products including clocks, candy and playing cards.
De Beers has faced antitrust cases in the United States since 1945. Last year the company pleaded guilty in federal court to a decade-old price-fixing charge, paving the way for it to again compete directly in America instead of using intermediaries. uters today reports that
Meet The Youngest Woman To Have A D Flawless Diamond
Here she is:
The story is here:
China and Diamonds: Perfect Together!
China’s long awaited announcement on a VAT adjustment for diamonds entering the country via the Shanghai Diamond Exchange (SDE) finally came in the form of a joint notification by the country’s Ministry of Finance, State Taxation Administration and General Administration of Customs of China.
In a statement issued on June 12, the Shanghai Diamond Exchange said that the actual VAT for polished diamond imports through the SDE will be reduced from its current 17 percent to four percent, effective as of July 1, 2006.
There will be no VAT imposed on rough diamonds when imported via the SDE.
As per existing regulations, the SDE is a tax-bonded area, and the customs office located inside SDE will remain the exclusive channel in China for the import and export of diamonds under general trade, according to the statement. The reduction of VAT will only apply, during the first stage, when a diamond is imported via the SDE.
VAT is a transactional tax, levied on each value-added transaction at each section of the value chain, from importation — if the commodity is imported — to wholesale and, finally, to retailing. For imported goods, VAT is first collected at the point of import by customs, based on import value. VAT-collecting procedure for polished diamonds is different from that of rough diamonds in that a polished diamond importer will pay four percent VAT. The customs office in the SDE will then issue an invoice of 17 percent for tax offsetting purpose when the goods enter the next stage of the pipeline, according to the statement.
Good first step, but we would like to see other Governments (Canada, Europe) as well as China reduct the VAT to 0% so as to stimulate and increase diamond and jewelry sales.
Diamond Prices Going Up
So says a Canadian Geologist. The story is here:
Canadian Professor Sees Diamond prices Going Up
Royal Jewels Go On Sale.
When the British Royals sell off their family silver, no price seems too high, frantic bidding for the jewellery and personal effects of the late Princess Margaret, younger sister of Queen Elizabeth II, has shown.
Auction rooms at Christie's in London were filled to capacity late Tuesday as more than 1,000 souvenir hunters, including many from as far afield as Russia, Japan, the US, Hongkong, Thailand and Indonesia, clamoured to buy a royal momento.
Among the top items on offer was the diamond tiara Margaret wore on her wedding day in May, 1960, which was sold to an Asian private collector for 926,400 pounds (1.7 million dollars), compared to the maximum estimate of 200,000 pounds.
A silver and gold Fabergé clock, manufactured in Moscow between 1896 and 1908, and said to have been at Margaret's bedside for most of her life, fetched a world record price of 1.2 million pounds. It had been estimated at a maximum of 800,000 pounds.
'It seems people are prepared to pay anything for royal possessions,' said one commentator, as newspapers Wednesday hailed the auction as the 'sale of the century.'
Within minutes, it became evident that the two-day auction would far outstrip its modest estimate. By close of business late Tuesday, the sale of 190 items - out of a total of 800 made available - had yielded a staggering 9.5 million pounds (17.3 million dollars).
This was more than three times the estimate placed on the treasures by Margaret's children, Viscount Linley and Lady Sarah Chatto, who released the personal items in order to be able to pay inheritance tax on the estate of their mother, who died in 2002.
While they can look forward to a much higher than expected yield, not everyone has been happy with the sale of Margaret's personal belongings, accumulated partly through inheritance and partly as gifts during her lifetime.
'It is as if her whole life is going up for sale', one critic said.
The queen is said to be concerned that some heirlooms, including family jewellery and a famous painting of Margaret, would pass out of hands of the royal family.
Lord Snowdon, the star photographer and Margaret's former husband, also voiced worries at the sale of some of the personal items, but was unsuccessful in his bid to make Christie's withdraw any of the lots.
Personal attachments, however, were of little concern to the frantic bidders in Christie's auction rooms, offering exaggerated prices for even the simplest trinkets.
The buyers crammed into the sale rooms competed with 1,000 written bids received in advance and more than 500 bidders joining the action on the telephone from all points of the globe.
According to Christie's, 58 per cent of registered buyer activity was from the UK, 15 per cent from the rest of Europe, 16 per cent from the Americas, ten per cent from Asia and one per cent from the Middle East.
Gasps of astonishment regularly broke out as new staggering prices were banged down on the diamond brooches, necklaces and bracelets, displayed and carried round for inspection on velvet cushions by young girls.
Francois Curiel, the chairman of Christie's Europe, conducting the auction, revealed that he had received calls from people who said they wanted what was on offer 'at any price.'
As collectors flew in for the day from Asia and America, pieces fetched up to 150 times their original estimate.
'This is unprecedented, as the market decided the added value of royal provenance,' said Curiel.
A 'simple child's necklace' of rubies, cultured pearls and diamonds, worn by Princess Margaret on her second birthday, climbed from an estimate of 1,200 pounds to sell for 27,600 pounds.
Individual jewellery items such as brooches, watches and earrings made up to 40,000 pounds with ease, while empty boxes that once contained them were as much in demand.
A snake bracelet offered for 1,000 pounds was snatched up for nearly 41,000 pounds, and a 'modest' gilt hedgehog brooch, advertised by Christie's as a 'bargain' at 50 to 100 pounds, found a buyer for 5,760 pounds.
With furniture, silver items, pictures and a famous portrait of Margaret by Italian painter Pietro Annigoni (1910-1988) still due to be sold, the auction may well raise a record figure, analysts said.
It could equal, or exceed, the 1987 sale of the Duchess of Windsor's jewels in Geneva in 1987, the last great disposal of royal baubles, which made an astonishing total of 31 million pounds.
Diamonds On Your Teeth
Girls are showing Diamonds everywhere, including their teeth!
Diamonds In Your Mouth
"Dazzling Smile" now takes on a new meaning!
AGS To Introduce New Cut Grade For Emerald Diamonds.
The American Gem Society (AGS) Diamond grading lab has announced that it is coming out witha new Cut Grade for Emerald Cut Diamonds.
It will be the first time the industry has had a cut grade for an emerald cut, AGS said in a press release. The AGS Gemological Sciences Committee approved the grading system for three new shapes: square emerald cut, rectangular emerald cut and an octagon step cut.
"The emerald cut is very popular with consumers," said Peter Yantzer, executive director of AGS Laboratories, in the statement. "We're excited that this is the next fancy shape cut grade that we are offering, and believe it will increase sales at the counter."
Ruth Batson, CEO of the AGS, said consumers will benefit the most from the addition of the emerald shape to the AGS cut-grade system.
"The entire AGS grading system is designed for the protection of the diamond-buying public, which continues to be at the heart of the AGS mission," she said.
The performance-based cut grade system measures the facets of a diamond in three dimensions, versus proportion-based measurements that used only two. The lab uses ray tracing software to trace light traveling through a diamond. The software demonstrates the quantity and quality of the light being returned to the viewer. In assigning the final grade, AGS labs considers brightness, dispersion, leakage, contrast and weight ratio in addition to proportion, symmetry and polish.
"The methodology we are using can be applied to all fancy shapes and facet arrangements as research continues," added Yantzer. "As soon as the emerald is released, another new shape won't be long behind."
Tiffany Comes To Wall Street
Tiffany is going to where the money is.
The company plans to open a store inside a historic building at 37 Wall St. in fall 2007. The store will serve as the building's only retailer, occupying about 7,600 square feet on the ground floor and mezzanine, Tiffany announced Tuesday.
Skyline Developers has restored the original façade of the building, a 25-store Beaux Arts-style structure designed between 1906 and 1907 by architect Francis Kimball for the Trust Company of America. The building, one of Manhattan's first skyscrapers, remains
one of the oldest high-rises on Wall Street and will be home to 373 luxury apartments beginning this fall.
Tiffany's first store opened on lower Broadway in 1837, before moving to a larger site uptown.
The new store will carry an array of Tiffany's merchandise including diamond engagement rings; Tiffany's Celebration rings; designs by Frank Gehry, Elsa Peretti, Paloma Picasso and Jean Schlumberger; as well as watches, gifts and accessories.
Dubai A World Diamond Power?
Dubai a world diamond power? You kidding me, right?
WRONG!
Al Nisr, a Dubai publication reports that Dubai is an emerging world diamond center and power that has for example, Antwerp very worried. For more than 400 years the Belgian city of Antwerp has been the global center of the world diamond market with its highly-skilled craftsmen transforming rough stones into finely-worked gems.
But according to a founding member of the world's leading diamond manufacturer, it is in danger of losing its crown to Dubai.
Belgium's tough federal legislation regarding money laundering and checks on the use of diamond money to finance ugly conflicts are leading manufacturers to turn their eyes to the tax-free haven of Dubai's freezones.
The emirate boasts an excellent geographical location, central to the booming diamond markets of China, Russia, and the Middle East, while its wealthy population, huge influx of tourists and relatively crime-free streets make for high domestic sales. The GCC is now the third largest market in the world for diamond jewelry.
Harshad Mehta is one of the founder members of Antwerp-based diamond manufacturer Rosy Blue, which has presence in more than 15 countries. The company's global sales of loose diamonds reached $1.7 billion (Dh6.25 billion) in 2005, with $200 million (Dh736 million) sold in the GCC region and UAE sales worth $40 million (Dh147.2 million.)
Mehta, also vice-chairman of Dubai Diamond Exchange, said the diamond giant is considering a future shift of its main administrative headquarters to Dubai. He claimed others will follow.
"The diamond industry moved to Antwerp in the first place because less questions were asked there and it was easier for the diamond workers to do business," he said. "Now more and more questions are being asked in Antwerp about sales and margins and where money is coming from, so people are getting fed up and saying let's move to Dubai."
But he added, "Dubai is still small compared to centers like Antwerp and it will take time for any major or significant change."
Others were slightly more bullish.
Jonathan Chippindale, marketing director of Gulf Markets for the Diamond Trading Company, the sales and marketing arm of the De Beers Group, said, "All the major companies are looking at Dubai."
Why Dubai?
"Saying that Antwerp is finished would be extremely premature, but the challenge is coming from Dubai. It is a major regional player now and it can be the major global player in the future," Chippindale said.
Chippindale added that any view of Dubai as being unregulated is "way off," but he claimed it has "a tremendous fiscal advantage" in terms of its tax-free status.
Federal legislation faced by the Antwerp diamond industry is considered to go beyond action taken by other countries. The HRD, an organization representing Antwerp's diamond sector, recently met with Belgium Prime Minister Guy Verhofstadt to discuss a report outlining issues weakening the competitive position of the country's diamond traders.
But according to Chantal Abboud, the HRD's representative in the Middle East, their fears were exaggerated and Antwerp's position is likely to remain intact.
"I'm not convinced that there will be any shift away from Antwerp," she said. "I have not seen even the smallest trader consider completely closing down their Antwerp offices and move to Dubai."
Abboud admitted Dubai's diamond sector is growing, but said the two sectors will work in cooperation rather than against each other. She also recognised Dubai's advantages, including its tax free status, but claimed if the industry was simply concerned with tax, the shift would already have happened.
Dubai is also considered to have an edge over Antwerp in terms of safety of moving goods. The Belgian city has been rocked by a series of huge diamond heists in past years. "The logistics are here and the infrastructure is in place to handle the all requirements of the diamond industry," said Pearl Chandrawansa, general manager of branded jewelry at Rosy Blue FZE.
Stay tuned!
Jewelers: Are You Really The Oldest Profession?
Science magazine reports this week that jewelers are part of a profession that is very old indeed.
Ancient beads that were previously discovered at sites in western Asia and North Africa may represent the first attempt by human beings to decorate themselves, the report says.
The study reports that ancient gastropod shells that were collected previously from two inland sites appear to have been made into jewelry.
Both sites date back to more than 100,000 years ago, which makes them about 25,000 years older than similar but more abundant drilled shells that have been found in South Africa. Examination has shown that the shells were drilled by humans, presumably to be threaded and worn as jewelry, the magazine reports. What's more, the researchers said the shells were found many miles from the sea, indicating they were brought to those locations deliberately, most likely for the purposes of bead-working.
The finding is significant because it means that such modern cultural behaviors as self-adornment are older than scientists once believed.
"Our paper supports the scenario that modern humans in Africa developed behaviors that are considered modern quite early in time, so that in fact these people were probably not just biologically modern but also culturally and cognitively modern, at least to some degree," study co-author Francesco d'Errico of the National Center for Scientific Research in Talence, France, told The Associated Press.
The newly identified shells were found in a study of museum collections. The research was funded by the European Science Foundation, the French Ministry of Research and the Fyssen Foundation.
128 Carat Tiffany Diamond.
Now on display in London, England.
The Montpelier Times reports on this exhibition showing an array of dazzling pendants, earrings, and bracelets comes the piece de resistance: the 128-carat Tiffany Diamond, one of the largest yellow diamonds in the world.
The gigantic gem is the show-stopper of "Bejewelled by Tiffany" at the Gilbert Collection, one of three galleries located at London's Somerset House on the Thames River.
The Tiffany & Co.-sponsored exhibit, which opens this weekend, uses jewels to trace the history of the celebrated American brand that has become synonymous with glamour.
The collection includes about 180 pieces that cover the first 150 years of Tiffany's history up to 1987, almost all of which have been loaned from the corporation's archives.
"In Britain people know about the film 'Breakfast at Tiffany's,' but don't have a lot of knowledge about Tiffany's history," said Clare Phillips, curator of the exhibit. "The magic of the name is understood, but people don't know a lot about how this glamorous company got started."
Indeed, what's best about the exhibit is that it's more than just a display of jewels, but offers glimpses of fashion history by showing how the jewels were actually worn by Americans.
One model, for example, shows a woman wearing a brooch, a choker, a hair decoration, and a bodice ornament — all made from diamonds. It seems that wealthy American women in the 19th century so loved to pile on diamonds that Europeans ridiculed them for having no taste.
Another mannequin showed a 1970s woman wearing a bra made from sterling silver mesh.
"It's fascinating to see how the items were worn and how the items have changed," Phillips said.
Like many of his contemporaries, Charles Lewis Tiffany was unabashedly patriotic. The rubies, diamonds, and sapphires winking from an American flag brooch at the start of the exhibit are proof of this.
The exhibit works like a timeline. It introduces visitors to the entrepreneurial genius that transformed a modest New York store into an American institution before taking them on a journey through world wars and international exhibitions.
The first part of the exhibit, "The Rise of an American Institution," illustrates some of the qualities behind Tiffany's early prominence and long-lasting appeal.
When Tiffany opened the doors of his first fancy-goods store on Broadway in New York in 1837, jewelry was only a minor part of the inventory. But that soon changed.
After political turmoil in Europe in 1848 caused the price of gems to fall, Tiffany snapped up cheap diamonds, including some from French aristocrats who were eager to unload them. The gems went into new Tiffany-designed settings, prompting reporters to nickname Tiffany "The King of Diamonds."
Tiffany, whose cameo portrait is included in the exhibit, understood the value of publicity and marketing. He introduced mail-order sales, producing the first catalogue in 1845. He also participated in the great international exhibitions, eventually opening a shop in Paris in 1868.
"The Paris Exposition of 1900 was crucial, because that's when Tiffany became a name that was known internationally," Phillips said.
GIA To Issue New Report For Consumers.
The Gemological Institute of America (GIA) reports that it would soon be issuing synthetic diamond grading reports in response to the growing number of gem-quality, laboratory-grown diamonds entering the marketplace. GIA contends that there is a need to distinguish them from natural diamonds.
Ralph Destino, GIA’s chairman, said, “GIA is a public benefit institution and, as such, has an official obligation to protect the public by providing the critical information needed to make informed decisions.”
“As a nonprofit entity serving the public trust, it is simply the right thing to do,” he said.
Accordingly, GIA has created a new grading report specific to synthetic diamonds. The new reports will provide a clear description of the synthetic, containing color, clarity, carat weight, and cut information when applicable. The design of the report will be markedly different from the current GIA Diamond Grading Reports for natural diamonds. Its distinctive yellow color will immediately identify it as a synthetic diamond grading report.
To further help the public and members of the industry readily distinguish synthetics from natural diamonds, the GIA Laboratory will laser-inscribe the word “synthetic,” along with the GIA report number, on the girdle of every synthetic diamond it grades.
Tom Moses, senior vice president, GIA Laboratory and Research, noted that GIA’s research scientists have been studying synthetic diamonds for more than 30 years and have carefully monitored the new technologies that create these stones.
“Once we start grading them,” Moses said, “we will be able to study a far greater number and variety of synthetic diamonds and we will report our findings as we proceed.”
Israel Joins The Club: Reduces Taxes On Polished Diamonds.
Israel, following the actions of the Canadian, Dubai, and U.K. Goverments is reducing their tax rate on imported polished diamonds.
Israel’s ministry of industry, trade and labor will reduce the import tax on polished diamonds entering Israel by 33 percent, from 0.2 percent to 0.135 percent. The legislation was signed by Israel’s minister of industry, trade and labor, Eli Yishai, on June 29, and is expected to be approved by Israel’s finance minister in the coming days.
Israel’s diamond controller, Shmuel Mordechai, noted the significance and contribution of Israel’s diamond industry to the overall economy and said that a further review of the polished diamond import tax would take place later this year.
Avi Paz, president of the Israel Diamond Exchange, added that the move is of great importance to Israel’s diamond industry. “The reduction of polished diamond import taxes will help Israeli diamantaires and is expected to help grow Israel’s diamond trade,” he said.
Reducing taxes can only benefit both the industry and consumers.
State Of The Diamond Industry: Mid-Year Report.
The World Diamond Congress meeting of top diamantaires and Industry Leaders came to a close last week in Tel Aviv, Israel with a consensus that the global diamond sector was expected to start recovering in the second half of the year after months of declining profit and flat consumer demand.
Officials at the World Diamond Congress in Tel Aviv said the industry was going through rapid changes that had jolted diamond producers and manufacturers after total diamond jewellery sales of about $65 billion last year.
"A lot of diamond manufacturers are working with no profitability," said Jeffrey Fischer, the president of the International Diamond Manufacturers' Association. "And this is an industry that always works on thin profit margins."
He noted that growth in sales and demand had soared in the past few years, leading to high profits and prices, but hit a peak at the start of 2006.
"Demand this year has not materialised to the extent that was anticipated," Fischer said, adding that sales had grown by about 6 percent last year.
But demand had been flat so far this year, particularly in the US, which accounted for more than half of global diamond sales. The supply of rough diamonds had remained high.
"Producers and diamond miners are still getting high prices, but that's not going through to polished dealers," said Ernest Blom, the president of the World Federation of Diamond Bourses.
Lev Leviev, the head of LLD Diamonds, the second-largest diamond group in the world behind De Beers, said the biggest problem in the industry was profitability.
"I don't know any diamond polishers making money today," he said. "Demand in the US is not what we expected."
Industry leaders say diamonds have encountered stiffer competition from other luxury items such as cars and holidays, while the growth of synthetic diamonds, a major worry for the industry, has increased.
"The second half of the year should be stronger," Fischer said, citing growth in key manufacturing areas such as India and China. "We are lagging right now while demand catches up with supply."
Officials expected a strong holiday shopping season starting in late November, a period when between 75 percent and 85 percent of all diamonds are sold.
Some factors cited for lagging U.S. diamond sales during the first half of 2006 were high gas prices, high interest rates set by The Federal Reserve, and climbing inflation.
Survey Highlighlights Importance of Diamond and Jewelry Branding
Diamond and diamond jewelry brands continue to see increased awareness among consumers, according to a survey of 2,571 members of the Jewelry Consumer Opinion Council (JCOC) conducted from May 31 to June 12.
A media release from JCOC stated the leader of the branding pack is the Zale Diamond. It remains the strongest diamond brand since the survey was last conducted in October 2004. It is followed closely by Hearts On Fire, Radiant and the Leo Diamond. While consumers say a brand name is still the least important factor in driving the diamond purchase, they acknowledge that brands are gaining importance.
Among the changes since the 2004 survey: Hearts On Fire has gained recognition in the past two years; consumers are naming more diamond brands, such as Lucida and the Princess Plus; more respondents are saying they own a branded diamond, while a smaller percentage are citing a lack of awareness for not owning one; a larger percentage of respondents say they own branded diamond jewelry such as Vera Wang, Scott Kay and Escada; and consumers say they are slightly more willing to pay higher prices for branded diamond jewelry versus two years ago.
"It's extremely difficult to establish specific brand awareness with consumers," said Elizabeth Chatelain, president of MVI Marketing Ltd., founder of JCOC, in the release. "Although consumers are more willing to pay premium prices for branded products, making a jewelry line 'stand out' is not getting any easier. With the saturation of brands in the market, a name and logo is not enough to catch consumer attention. Each brand must develop a niche, a unique selling proposition, or a product attribute demanded by consumers."
While consumers were willing to pay more for a brand, they were also deterred from purchasing branded designer jewelry because of high prices, Chatelain said.
"The key to successful product branding is to design and deliver a unique product the consumer needs and prefers to other products available," she said. "Manufacturers and retailers can help consumers come to understand what exactly branded diamonds and diamond jewelry are, and that the consumer has increased flexibility in choosing."
GIA Announces Membership Changes.
The Gemological Institute of America's (GIA) Alumni Association has announced that as of April 1, 2007, its membership will expand to include all graduates of GIA and will no longer require dues.
Graduates will automatically become alumni members when they pass a final examination in a GIA course or program that awards a certificate or diploma. The 24-year-old Alumni Association will encompass more than 65,000 members once the initiative is launched in 2007, says GIA, and will continue to grow as students complete their studies.
"We want to be more connected with our GIA family of graduates and create valuable networking and educational opportunities for them worldwide," said Linda Ellis Harmeling, vice president of GIA Institute Advancement, in a statement announcing the Alumni Association changes. Also announced was the creation of a continuing education program for GIA graduate gemologists and a related recognition system.
Harmeling emphasized that under the new initiative many Alumni Association benefits and programs will stay the same or be enhanced.
"The motive is simple: to keep gemologists current," added Brook Ellis, vice president of GIA Education. "There are so many new sources and changes in production, treatments and synthetics in the gem industry. Since we have access to the institute's research department and laboratory, we are uniquely able to offer our graduates the latest information."
Alumni will be able to view presentations, which will vary in topic each year, through online podcasts, either on their computer or by downloading them to an iPod or similar device. Podcasts can also be presented to groups at chapter meetings and other gatherings.
Among the lecture topics for 2007 will be: treatments for diamonds and other gems; synthetic diamonds; rubies, sapphires and emeralds; and GIA Diamond Cut Grading System updates.
Israel Diamond Exchange To Expand.
The Israel Diamond Exchange (IDE) board of directors has officially approved the construction of a fifth building in the Ramat Gan diamond exchange. The new building will comprise of 28 floors and be connected to the other exchange buildings by a bridge, under one security umbrella.
The construction of the building will add approximately 28,000 square meters to the existing property, according to an IDE statement released on July 9.
“The board's approval is a most significant move for the Israel diamond industry,” said IDE president Avi Paz. “The additional building will strengthen Israel’s role as a leading trade center for the global diamond industry.”
New Guidelines Suggested for Synthetic Diamonds.
The World Federation of Diamond Bourses (WFDB) released three resolutions taken by the WFDB concerning synthetic diamonds during the 32nd World Diamond Congress, which took place in Tel Aviv on June 26 to 29, 2006.
The first resolution states that “the usage of synthetic diamonds for gem purposes will be acknowledged and gemological laboratories will be requested and encouraged to issue certificates describing the same, provided that such certificates clearly emphasize the fact that such are synthetic diamonds.”
The second resolution states that “the term 'synthetic diamonds' will be used for man-made or laboratory produced diamonds.”
The third resolution states that “the terminology normally used by laboratories to describe the features of diamonds should not be utilized for synthetic diamonds and that the International Diamond Council (IDC) will be authorized to formulate alternative terminology to describe such features for usage by laboratories.”
GIA has also recently announced that they will be issuing a special lab grading report for synthetic diamonds that will clearly distinguish it from lab reports of mined diamonds.
Special Jewelry Tribute to 9/11.
As a tribute to the citizens of New York City and the 100th Anniversary of JA New York, Indian designer Nayna Mehta has built a special monument as a tribute to the victims of the Sept. 11 terrorist attacks.
Mehta, a graduate of the Gemological Institute of America, designed and created a statue of the Twin Towers, set in 18-karat gold. The endeavor took 25 weeks, 38 artists, designers and technicians. The iconic structure is created of 14,080 diamonds and over 3 kilograms of gold. It will be on display at the JA New York Summer Show this July 30-Aug. 2 at the Jacob K. Javits Convention Center in Manhattan.
This Marine Is A " D" Flawless Diamond!
Our Nation's Finest!
Israeli Diamond Industry Marches On Despite War.
In a press release issued on July 19, Simcha Lustig, chairman of the Israel Diamond Institute (IDI,) said that there has been no interruption in the manufacturing or import and export of diamonds in Israel. "I have no doubt that we will be able to continue to fill all of our clients' needs for the coming season," he said.
The diamond center in Ramat Gan is located in the central part of the country, which has not been directly affected by the violence. Work in the Diamond Exchange, polishing plants, and all related services have not been affected during this time.
Israel Diamond Exchange president Avi Paz said that buyers from abroad have continued to show their support. "Despite the situation, we're pleased to see that buyers are continuing to visit the bourse, even during this week," he said.
To show the industry's determination to continue in a normal routine, the Israel Diamond Manufacturers' Association (IsDMA) chose to hold a scheduled event this week, honoring fourteen Israel Diamond Industry Dignitary Award recipients.
The ceremony was organized by IsDMA managing director Moti Ganz, who noted the importance of holding this event even during Israel's difficult times. "The strength we display far from the front will help ensure the success of the Army's efforts in the North," he said.
Diamond School Of Distinction.
The Gemological Institute of America (GIA) has been named a 2006 School of Distinction by the Accrediting Commission of Career Schools and Colleges of Technology (ACCSCT).
GIA was one of 31 schools out of the more than 840 in ACCSCT's membership to qualify for a School of Distinction Award, which honors institutions that have a proven record of providing quality education programs and that demonstrate a commitment to the expectations of ACCSCT's accreditation.
"The School of Distinction Award is the highest honor ACCSCT awards to its accredited schools. By achieving the School of Distinction award, the Gemological Institute of America has shown its commitment not only to the value of accreditation and educational quality, but also to the students and communities which it serves," said Michale McComis, ACCSCT associate executive director, during the presentation of the awards at the group's annual business meeting and awards breakfast in Las Vegas on June 12.
ACCSCT is a private, nonprofit accrediting agency that recognizes non-degree- and degree-granting schools in the United States predominately geared toward occupational, trade and technical careers. Accreditation is a voluntary, peer-review process that begins with the submission of an application and continues with periodic self-evaluation reports that assess the school's curriculum, faculty, student recruitment, admissions, student services, student progress and management.
GIA's on-campus education programs have been accredited by ACCSCT since 1973.
GIA Delays New Report.
National Jeweler reports that after setting off an industry firestorm with its announcement that it would start to grade synthetic diamonds, the Gemological Institute of America (GIA) is pulling back from its initial time frame for the reports.
While announcing what appeared to be the final version of the grading report late last month, it now appears major points of contention, such as the use of the word "synthetic" and the terminology used in grading are back on the table.
"The dialogue is continuing with groups on all sides whether they be public or industry groups in the broadest sense, both the synthetic manufacturers as well as the diamond industry," said Donna Baker, acting president of GIA.
In terms of a time frame for when the debate will end and the reports will be on the market, Baker says it's up in the air.
"We don't have a date set for the launch of the synthetic diamond grading report, but we will do it," she says.
When GIA announced that its lab would begin grading synthetic diamonds, it indicated the reports will provide a clear description of the synthetic, containing color, clarity, carat weight and cut information when applicable. GIA said the design of the report will be markedly different from the current GIA Diamond Grading Reports for natural diamonds, and reports will be printed on yellow paper to immediately signal that it is a synthetic diamond grading report.
But while Baker stresses that the key element—differentiation—will still drive the final report, significant changes may occur.
"There may be [significant changes] but no decisions have been made one way or another," Baker says.
Industry reaction to GIA's decision has been mixed from all sides.
The main issue, says Freddy Hager, president of the London Diamond Bourse, is a concern the reports will blur the distinction between lab-grown and mined diamonds.
Specifically, he worries those lines will be further crossed by using the same terminology in grading the stones.
"We understand that GIA intends to issue reports and don't oppose that," he explains. "But the report inside and out and in every way must show that it's a different animal."
Language is also an issue for Clark McEwen, vice president of the Gemesis Corp., which grows man-made fancy color diamonds.
"Gemesis is extremely happy that the GIA by issuing reports is finally officially recognizing our diamond as being a diamond," he says. "What I'm not overly pleased about is the fact of the terminology that they're using. We still believe that the word 'synthetic' is misunderstood and we believe they should use appropriate and approved terminology such as 'lab grown.'"
He also takes issue with GIA's announcement that it would inscribe the stones with "synthetic," noting that Gemesis already does this by putting 'lab-created' or 'lab-grown' on the girdle.
"Our customers may choose not to use their report, especially if other labs are using more accurate and approved terminology," he says.
Hope Diamond Curse: Is It True?
The Legend of the Hope Diamond says that whoever owns it is cursed.
Some revisionist thinking appears in today's Washington Times:
Hope Diamond Curse: True or False?
Queen Of Hearts Diamond: Where Are You?
Asks a consumer on Pricescope.com. Thread is Here:
Anybody See The Queen of Hearts Diamond?
Not to say we told you so, but we told you so, Here:
And Here:
Re-Inventing The "Diamond Shape" Wheel, No Can Do-Doo
Engagement Ring Blues!
Betcha she's keeping the Diamond Ring!
DeBeers Earnings Fall 14%.
De Beers Group reported that its underlying earnings fell 14 percent to $308 million during the first half of fiscal 2006. De Beers now uses underlying earnings rather than headline earnings to provide a better measure of performance it disclosed in its financial statement. Total revenues for De Beers held flat at $3.92 billion for the first six months of 2006 compared with January through June 2005.
During an industry presentation announcing first half results, company chairman, Nicky Oppenheimer, said that the results were indicative of difficult trading conditions. Higher interest rates, higher gold and platinum prices, reduced margins across the distribution pipeline, and the increasing need to manage polished inventory levels all weighed on the rough trading markets.
De Beers sales and marketing arm, the Diamond Trading Company (DTC,) posted a 1 percent increase in sales to $3.25 billion for the first half of 2006.
What 's The Fourth Largest Diamond Market in The World?
If you answered Dubai and the Arabian Gulf States, you are correct!
Arab nationals spend close to $2 billion on diamonds every year, making the Gulf the fourth-largest market in the world, with Dubai taking the lion's share of the business.
"The diamond jewelery market in the Gulf region has increased by 47 per cent or almost half in the past four years and is now the fourth-largest diamond market in the world," Jonathan Chippindale, marketing director for Gulf Markets of The Diamond Trading Company (DTC), the diamond marketing arm of the De Beers Group of companies, was quoted as saying in a Gulf News report.
"Arab nationals are passionate about diamonds and spend close to $2 billion on diamonds in this region. Unique to this region is diamond jewelery sets. They represent 55 per cent value share of all diamond jewellery sales, at an average price of $6,000 per diamond jewelery set."
De Beers entered the UAE in 2000 at a time when Dubai was looking to consolidate its position as a regional hub for gold and diamond jewellery.
The emirate later set up Dubai Multi-Commodities Centre (DMCC) to further consolidate its position.
Think the price of Oil is going down anytime soon?