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Týždenný prehľad zaujímavostí vo svete diamantov .

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Rekord prekonal modrý diamant , ale novinárom je to jedno... , farba ako farba. :D
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Tento šperk má nový rekord

Aukčné kladivo sa zastavuje na takmer 58 miliónov $ čo je za 14,62 ct diamant Oppenheimer modrej farby nový svetový rekord pre akýkoľvek šperk predaný v aukcii pri tejto karátovej váhe drahého kameňa.

19. MÁJA 2016

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Registrovaný uživatel
Krásný diamant ale ta cena.
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Cena v takej farbe a kvalite prognostikmi na farebné diamanty bola predpokladaná až okolo roku 2020 .
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Rapaport Weekly Market Comment May 19, 2016


World Diamond Congress focuses on transparency, responsibility, sustainability with discussions about financing and regulatory requirements for compliance auditing. 2016 looking better than 2015 but demand still sluggish. Mixed expectations for Las Vegas shows with U.S. consumers cautious in election year. Steady rough demand and stable prices at De Beers sight. Namibia signs 10-year supply deal with De Beers. Chow Tai Fook warns 1Q profit down 40-50%. Sotheby’s Geneva sells $175M (83% by lot) with pear-shape, 15.38 ct., fancy vivid pink, VVS2 diamond fetching $31M ($2.1M/ct.). Christie’s Geneva sells $149M with rectangle, 14.62 ct., vivid blue, VVS1 ‘Oppenheimer Blue’ selling for $57.5M ($3.9M/ct.). WFDB adds GJEPC as member, re-elects Ernie Blom president. Ronnie Vanderlinden elected IDMA president.


RapNet Data: May 19

Diamonds 1,190,138
Value $8,152,529,882
Carats 1,293,233
Average Discount -28.75%

www.rapnet.com



The RapNet Diamond Index (RAPI™) is the average asking price in hundred $/ct. of the 10 percent best priced diamonds, for each of the top 25 quality round diamonds (D-H, IF-VS2, GIA-graded, RapSpec-A3 and better) offered for sale on RapNet - Rapaport Diamond Trading Network.

Get Current Price List | Subscribe to Rapaport | Join RapNet

RAPAPORT ANNOUNCEMENTS
May 11-23 Wed-Mon
Rapaport Single Stone Auction

New York & Israel

View Details
May 17-25 Tue-Wed
Rapaport Melee Auction

New York & Dubai

View Details
June 2-5 Thu-Sun
Las Vegas Antique Jewelry & Watch Show

Las Vegas, NV, USA

Booth: 1500

View Details
June 3-6 Fri-Mon
JCK Las Vegas

Las Vegas, NV, USA

Booth: B55051

View Details

QUOTE OF THE WEEK
We must all contribute, cooperate and do all we can to maintain and strengthen consumer confidence in natural diamonds, for the benefit of the entire diamond supply pipeline.

Ronnie Vanderlinden, newly elected president of the International Diamond Manufacturers Association, speaking to delegates at the World Diamond Congress in Dubai this week

MARKETS

United States: Sentiment is weak as New York trading slows. Dealers concerned about profitability as demand softened in the past month, particularly for 3 to 4 ct. diamonds…

Belgium: Steady business despite slower buyer traffic in Antwerp. Dossiers selling well with good demand for 0.30 to 1.25 ct., D-J, VS2-SI1, 3X diamonds…

Israel: Polished trading seasonally quiet. Large delegation traveling to Las Vegas with mixed expectations for JCK show. Liquidity squeezed with suppliers cautious to give clients credit while bank lending is tight…

India: Stable market but trading relatively quiet during summer holiday period. Steady U.S. and Far East demand. Dealers looking for goods ahead of Las Vegas shows and expect trading to improve in June…

Hong Kong: Polished trading slowed from previous weeks. Steady demand from China with steady inquiries for 1 to 2 ct., D-J, VS-SI RapSpec A2 diamonds...

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INDUSTRY
Diamond Congress Raises Compliance, Marketing Concerns

The biennial World Diamond Congress (WDC) took place in Dubai with a focus on transparency, responsibility, and sustainability that will help improve bankability of the diamond industry. Discussions outlined the need for stronger financial and compliance auditing and for the trade to implement “know-your-supplier” measures that will inspire confidence that diamonds are ethically sourced and responsibly managed.

The three-day congress, which is a joint gathering of the World Federation of Diamond Bourses (WFDB) and the International Diamond Manufacturers Association (IDMA), also stressed an urgent need to boost consumer demand through effective marketing. The trade urged the Diamond Producers Association to work with the WFDB and IDMA sponsored World Diamond Mark in its marketing initiatives.

During the congress, Ernie Blom was elected to a fourth term as WFDB president, while Ronnie Vanderlinden was elected IDMA president.


GJEPC Joins World Federation of Diamond Bourses

The World Federation of Diamond Bourses (WFDB) accepted India’s Gem and Jewellery Export Promotion Council (GJEPC) as its 31st member organization.

The council had to adjust its bylaws to comply with WFDB requirements given that it is not a traditional bourse, WFDB president Ernie Blom told Rapaport News at the World Diamond Congress. The GJEPC now has the federation’s largest member base representing more than 6,000 diamond and jewelry exporters.

Gold Jewelry Demand Slides as Prices Rise

Global gold-jewelry demand slumped in the first quarter as the price of the metal rose and Indian jewelers went on strike, according to the World Gold Council.

Demand slid 19% year on year to 481.9 tonnes in the first three months of the year compared with the same quarter a year ago. The price of gold jumped 17% from the previous quarter to $1,237 per ounce. Demand in India fell 41% and in China by 17%.

Kingold Jewelry Sees Sales Jump

China’s Kingold Jewelry reported revenue and profit surged in the first quarter because of a stronger showing by the company’s branded products.

Total revenue soared 37% year on year to $282.2 million and profit more than doubled to $15.2 million. Gross margin climbed to 10.1% from 5.2% as the unit price of branded sales rose and costs fell.

RETAIL & WHOLESALE

‘Oppenheimer Blue’ Breaks Auction Record

Christie’s smashed the world auction record for a jewel as it sold the ‘Oppenheimer Blue’ diamond ring for $57.5 million (CHF 56.8 million) in Geneva.

The rectangular-cut, 14.62-carat, fancy vivid blue, VVS1 diamond went for well above Christie’s upper estimate of $46.1 million, fetching $3.9 million per carat. Christie’s sold $148.6 million of jewelry at the Magnificent Jewels auction or 100 percent by lot.

The auctioneer also expects a cut-cornered rectangular modified brilliant, 5.03-carat, fancy vivid green, VS2 diamond dubbed the ‘Aurora Green’ to fetch up to $20 million (HKD 155 million) in Hong Kong later this month.

Pink Diamond Sells for $32M at Sotheby's

Sotheby’s claimed to set a new record for any jewelry auction bringing in a total of $175.1 million at its Magnificent Jewels and Noble Jewels sale in Geneva. The auction sold 83% by lot.

Leading the sale was a pear-shape, 15.38-carat, VVS2, fancy vivid pink diamond which sold to an Asian buyer for $31.6 million (CHF 30.8 million), or $2.1 million per carat. In addition, a 7.32-carat, fancy vivid blue, internally flawless diamond ring went for $17.1 million, or $2.3 million per carat, and a fancy intense blue diamond brooch fetched $13.7 million

Chow Tai Fook Profit Set to Slump

Chow Tai Fook warned profit is expected to plummet 40 to 50% in the fourth fiscal quarter because of weaker consumer sentiment in Greater China.

Gross profit margin was negatively affected by the unrealized hedging loss on gold loans versus a gain last year and a change in the product mix to more gold sales. Sales declined 26% in the three months to March 31.

Macy’s Targets Jewelry to Drive Sales Rebound

Macy’s is embarking on a nationwide initiative to offer better-quality jewelry and improve the skills of its selling staff to mitigate tough market conditions.

The department store plans to roll out the project across 350 stores by year-end 2016. The program was piloted in 40 outlets in fall of last year. Macy’s sales declined 7.4% from a year ago to $5.77 billion in the first fiscal quarter that ended April 30.

U.S. Jewelry Prices Rise in April

The U.S. consumer price index (CPI) for jewelry rose 1.5% in April from the previous month as prices returned to an upward trend that was briefly interrupted in March.

Prices have now advanced in each month since December with the exception of March, when the index fell 3.1%. The April CPI figure is a 5% jump from a year ago, according to seasonally unadjusted data from the U.S. Bureau of Labor Statistics.

MINING
De Beers and Namibia Strike Long-Term Deal

De Beers and Namibia signed a 10-year sales agreement that will “significantly increase” the quantity of rough diamonds made available for beneficiation in the country.

Under the deal, $430 million worth of diamonds will be offered each year to Namibia-based sightholders through the Namibia Diamond Trading Company. All special stones recovered by Namdeb – the De Beers-government diamond mining joint venture – will be made available for sale in Namibia.The pact also provides for 15% of run-of-mine production from Namdeb to be made available for independent sales through Namib Desert Diamonds, a newly created parastatal.

Gem Diamonds' Letšeng Sales Leap

Gem Diamonds reported revenue from its Letšeng mine in Lesotho rose in the first three tenders of the year. Sales jumped 13% to $87.8 million compared with the first three tenders last year. Sales volume surged 26% to 45,311 carats, outweighing a 10% drop in the average price to $1,938 per carat.

Production at Letšeng soared 28% to 28,698 carats in the first quarter. Meanwhile, output from the company’s Ghaghoo mine in Botswana fell 5% to 11,029 carats as it slowed the mine’s development during the weak mar

ALROSA’s Diamond Reserves Jump 8%

ALROSA’s diamond reserves grew 8% to 658 million carats as of January 1 compared to its last assessment in 2013. The miner reported a higher evaluation of its Mir and International pipes, while the inclusion of alluvial deposits such as AO Nizhne-Lenskoe also contributed to the increase.

The evaluation was undertaken in accordance with the Joint Ore Reserves Committee (JORC) code. An earlier evaluation that followed Russian state classification standards showed reserves of 1.11 billion carats.

Lucapa Sells More Lulo Diamonds

Lucapa Diamond Company reported an average price of $1,150 (AUD 1,580) per carat from a sale of diamonds recovered at the Lulo mine in Angola, a frequent source of large diamonds. The miner sold a parcel of 1,862 carats for $2.1 million.

Since the sale, Lucapa recovered three more “special” stones from the mine, weighing 60 carats, 35 carats and 21 carats, as well as a 13-carat fancy yellow diamond. The company also announced a $7 million upgrade plan for the mine.

Renard Mine Development Beats Expectations

Stornoway Diamond Corporation said progress on its Renard Diamond Project in Canada has been better than expected as it aims to start production this year.

At the end of April, progress was at 92.1% versus a plan of 84.1%. First ore processing is expected by the end of September.

GENERAL

Massive Rough Diamond to Star at Israel Show

The Diavik Foxfire, the largest rough diamond ever found in North America, will feature at the third International Rough Diamond Week in Israel next week. The show is scheduled to be held at the Israel Diamond Exchange (IDE) in Ramat Gan from May 22 to 26.

Rio Tinto discovered the 187.7-carat diamond at its Diavik mine in Canada’s Northwest Territories last fall. It is being shown at select diamond centers around the world ahead of an auction next month.

New Graduate Jewelry Scheme in India

The Indian Institute of Gems & Jewellery (IIGJ) introduced a graduate scheme that it said is the first to combine jewelry design and manufacturing with management.

The IIGJ has tied up with the Welingkar Institute of Management to offer budding jewelers a three-year course. The IIGJ is a project of India’s Gem & Jewellery Export Promotion Council (GJEPC).

ECONWATCH

Diamond Industry Stock Report

There were sweeping declines in industry stocks this past week, especially in the U.S. amid speculation that the Federal Reserve could increase interest rates. Nordstrom (-26%) suffered the steepest decrease. Mining stocks mostly fell, led by Stellar Diamonds (-11.5%), with Lucara Diamond Corp. (-6.8%) losing value after large rough diamond discoveries and sales had given it a boost in previous weeks. India was generally stronger, headed by Goldiam Intl. (+8.9%).

View the detailed industry stock report.



May 19 (11:01 GMT) May 11 (8:35 GMT) Chng.
$1 = Euro 0.89 0.88 0.01
$1 = Rupee 67.36 66.69 0.67
$1 = Israel Shekel 3.86 3.77 0.09
$1 = Rand 15.85 15.28 0.56
$1 = Canadian Dollar 1.31 1.29 0.02

Precious Metals Chng.
Gold $1,254.12 $1,272.46 -$18.34 -1.4%
Platinum $1,018.35 $1,061.83 -$43.48 -4.1%
Silver $16.66 $17.30 -$0.64 -3.7%

Stock Indexes Chng.
BSE 25,399.72 25,616.18 -216.46 -0.8%
Dow Jones 17,526.62 17,928.35 -401.73 -2.2%
FTSE 6,082.35 6,138.56 -56.21 -0.9%
Hang Seng 19,694.33 20,055.29 -360.96 -1.8%
S&P 500 2,047.63 2,084.39 -36.76 -1.8%
Yahoo! Jewelry 1,053.05 1,087.12 -34.07 -3.1%
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Rapaport Weekly Market Comment May 26, 2016


Vegas expectations mixed amid weak consumer demand. Polished markets slow with some traders very selectively building stock for JCK. Rough markets weak with oversupply concerns following De Beers $630M of sales in cycle 4 (May). India April polished exports +9% to $1.8B, rough imports +37% to $1.9B. Dominion 1Q sales -5% to $178M, Ekati production +34% to 1M cts. Signet 1Q sales +3% to $1.6B, profit +24% to $147M. Tiffany 1Q Sales -7% to $891M, profit -17% to $87.5M. ALROSA’s Andrey Polyakov named president of World Diamond Council.


RapNet Data: May 26

Diamonds 1,157,847
Value $7,948,739,908
Carats 1,248,673
Average Discount -28.70%

www.rapnet.com



The RapNet Diamond Index (RAPI™) is the average asking price in hundred $/ct. of the 10 percent best priced diamonds, for each of the top 25 quality round diamonds (D-H, IF-VS2, GIA-graded, RapSpec-A3 and better) offered for sale on RapNet - Rapaport Diamond Trading Network.

Get Current Price List | Subscribe to Rapaport | Join RapNet

RAPAPORT ANNOUNCEMENTS
June 2-5 Thu-Sun
Las Vegas Antique Jewelry & Watch Show

Las Vegas, NV, USA

Booth: 1500 View Details

June 3-6 Fri-Mon
JCK Las Vegas

Las Vegas, NV, USA

Booth: B55051

View Details
June 8-15 Wed-Wed
Rapaport Single Stone Auction

New York & Israel

View Details
June 14-22 Tue-Wed
Rapaport Melee Auction New York & Dubai
View Details

QUOTE OF THE WEEK
We attribute the overall lower sales to softness in domestic customer spending in many U.S. markets, as well as lower spending by foreign tourists of many nationalities in New York and other high-tourism markets.

Mark Aaron, VP for investor relations at Tiffany & Co., on the jeweler’s 7% decline in revenue in the first quarter

MARKETS

United States: Market quiet, demand weak but stable. 3 ct. and larger soft, except SI category. All eyes on JCK Las Vegas (June 3-6) but expectations mixed as consumer demand low…

Belgium: Market stable with good demand for 1-2 ct. and weak demand for 3 ct. + sizes. Faint fluorescent hard to sell with buyers seeking 3X, non-fluorescent diamonds…

Israel: Trading very slow with low expectations for Vegas. Weak sentiment on trading floor as reports point to latest diamond bankruptcy with debts to trade…

India: Market slow with many manufacturers closed for school vacation or working at reduced production levels. Seasonal lull expected to last till mid-June…

Hong Kong: Market slow with weak demand from China. Disappointing sales from May Golden Week and Mother’s Day. Reports of companies reducing costs. 3-5 cts. slow, 1-1.30 cts. moving better...

Click here for deeper analysis


INDUSTRY

De Beers Sales Drop to $630M

De Beers reported rough sales declined to $630 million in its fourth sales cycle of the year.

Revenue fell 5.4% in the May cycle from a revised $666 million in April, the first drop in five months. This follows successive revenue increases in the four sales cycles from December to April, after a slump in the second half of 2015 to an estimated low of $178 million in November. Sales in the fourth cycle compare with an estimated $506 million recorded a year ago, according to Rapaport News records.

ALROSA Exec Steps Up to WDC President

Andrey Polyakov, the vice-president of ALROSA, has taken over as president of the World Diamond Council (WDC).

Polyakov has been vice-president of the WDC since 2015 and assumed the presidency on May 22, succeeding Edward Asscher. Asscher’s two-year term concluded the same day. Polyakov was elected vice-president of the council in October.

India’s Polished Exports +9% in April

India’s polished diamond exports jumped 8.8% year on year to $1.78 billion in April, according to provisional data provided by the Gem & Jewellery Export Promotion Council. By volume, polished exports increased 3.1% to 2.6 million carats. Polished imports declined 8.6% to $223.1 million, leaving net polished exports 12% higher at $1.56 billion.

Rough diamond imports surged 37% to $1.88 billion and rough exports slumped 23% to $86.1 million, leaving net imports 43% higher at $1.79 billion. India’s net diamond account, the difference between net polished exports and net rough imports, swung to negative $237.6 million from positive $132.5 million a year earlier.

Asian Star’s Profit Slides

Asian Star, a Mumbai-based diamond manufacturer, reported profit dropped in the past fiscal year while revenue rose.

Net profit declined 11% to $10.7 million (INR 725.5 million) even as sales edged up 2.5% to $488.7 million in the 12 months to March 31, the company, which is a De Beers sightholder, said. Revenue from its diamond segment increased 3.8% to $445.9 million.

RETAIL & WHOLESALE

Bridal Sales Drive Stronger 1Q for Signet

Signet Jewelers reported sales increased in the first fiscal quarter mainly driven by a stronger performance in select branded bridal and diamond fashion jewelry.

Revenue jumped 3.2% to $1.58 billion in the three months that ended April 30, the retail jeweler said. Same-store sales increased 2.4%. Total sales at Kay increased 6.4% and in the Zale division rose 3%. Profit surged 24% to $146.8 million.

Tiffany Cuts Forecast as 1Q Sales Fall

Tiffany & Co. reported a drop in quarterly revenue and profit due to a decline in spending by U.S. customers and foreign tourists.

Sales fell 7.4% to $891.3 million and profit slumped 17% to $87.5 million in the first fiscal quarter that ended April 30. The company narrowed its outlook for 2016, predicting a mid-single-digit percentage drop in full-year earnings per diluted share. It had previously issued a forecast that ranged from unchanged to a mid-single-digit percentage drop.

Record Blue to Lead Christie’s Auction

The largest fancy intense blue diamond ever offered at auction is to go under the hammer at Christie’s New York next month.

The auctioneer expects the cut-cornered rectangular mixed-cut, 24.18-carat, VS2 gem named the ‘Cullinan Dream’ to fetch $23 million to $29 million, or up to $1.2 million per carat, at the sale at the Rockefeller Center on June 9.

The polished diamond comes from a 122.52-carat blue rough stone discovered by Petra Diamonds, which retains a 15% share in the polished sale proceeds.

Jewelry Demand Propels Richemont to Growth

Richemont’s jewelry sales in the past fiscal year jumped after strong demand outweighed a decline in appetite for watches. Revenue from the Geneva-based luxury group’s jewelry “maisons” increased 7% to $6.79 billion (EUR 6.05 billion) in the fiscal year that ended March 31.

The maisons – Cartier, Van Cleef & Arpels and Giampiero Bodino – saw “good” demand for their jewelry collections but watches were negatively affected by a challenging environment in Asia Pacific and the Americas.


Warren Buffett’s Jewelry Unit Acquires Nordt

Richline Group, a jewelry company owned by Warren Buffett’s Berkshire Hathaway, made a second acquisition in less than a month with the purchase of a precious-metals company, John C. Nordt.

Nordt, a manufacturer for and supplier to the jewelry industry, operates out of Roanoke, Virginia. The deal, effective June 1, comes hot on the heels of Richline’s purchase of online jewelry seller Gemvara.

Tse Sui Luen’s Profit Dives 40%

Tse Sui Luen, a Hong Kong-based jeweler, reported revenue declined and profit plummeted in the past fiscal year as fewer tourists from mainland China dampened retail activity.

Sales dropped 8.6% to $455.6 million (HKD 3.54 billion) and profit nosedived 40% to $3.1 million in the 12 months to February 29. Hong Kong and Macau revenue slumped 24% to $218.3 million, outweighing a 13% jump in mainland China sales to $231.2 million.


Graff Diamonds’ Profit Slumps

Graff Diamonds Limited, the U.K. subsidiary of Graff Diamonds Holdings, reported sales slid 32% to $500.2 million and profit nosedived 74% to $32.1 million in 2015.

Revenue from countries outside the U.K. fell 34% to $464.1 million, outweighing an 11% jump in domestic sales to $36.1 million. “Emoluments” for the company’s highest-paid director dived 31% to $6 million. Revenue for Graff Diamonds Holdings, which includes the group’s international businesses, was $723 million.

Graff declined to comment over and above a company report and statement in which chairman Laurence Graff (pictured, left) claimed the results were "robust."


MINING

Russia Eyes $898M from ALROSA Sale

Russia expects it will get more than $898.4 million (RUB 60 billion) from a sale of shares in ALROSA, Economic Development Minister Alexey Ulyukayev was cited as saying in a television interview.

The government is planning to sell a 10.9% stake in the diamond miner this year.

“Today on the market it is a little more than RUB 60 billion,” Ulyukayev said. “I do not rule out that by the time the transaction is closed the market conditions will improve further.”

Dominion’s Sales Decline 5% in 1Q

Dominion Diamond Corporation reported sales fell 5% to $178.3 million in the first fiscal quarter that ended April 30.

Even though the company lowered its prices by 5% in its January sale, in line with the market, the prices recovered “quickly.” Prices ended the quarter about 8% higher on average than the level at which they started the fiscal year, Dominion said.

Separately, production at the Ekati mine in Canada increased 34% in the quarter to 1.1 million carats.


ALROSA Finds Largest Diamond in Zarnitsa's History

ALROSA discovered a 207.29-carat rough diamond at its Zarnitsa mine in the Russian republic of Yakutia.

The gem-quality diamond measuring 38 х 37 х 18 millimeters is the largest found since open-pit mining started at the Zarnitsa pipe in 1999. As yet unnamed, the stone has a “transparent transitional crystal form” and slightly grooved surface.


Dominion Project Jumps Hurdle

Dominion Diamond Corporation received environmental approval for its Jay project that could extend the lifespan of the Ekati mine in Canada by more than a decade.

The miner said the Northwest Territories’ Minister of Lands, Robert McLeod, accepted the recommendations of the Mackenzie Valley Environmental Impact Review Board to approve the program, subject to certain measures.

Jay is the most significant undeveloped deposit at Ekati and has the potential to extend the mine’s life from a projected closure in 2020 to at least 2030, Dominion said.


De Beers to Invest in Canada Exploration

De Beers said it will spend up to $15.6 million (CAD 20.4 million) on hunting for diamonds in an underexplored part of the Canadian province of Saskatchewan.

The miner entered into an agreement with CanAlaska, a company that has staked claims to kimberlite-style targets in the Northwestern Athabasca basin. The claims have been “optioned” to De Beers. There is currently little exploration work in this area of the basin, the companies said.


Strong Emerald Auction for Gemfields

Gemfields announced a new record average price for its lower-quality gemstones sold at an auction of rough emeralds in India last week.

The miner said it sold 2.78 million carats of gems extracted from its Kagem mine in Zambia for $14.3 million, implying an average price per carat of $5.15. The auction was held in the north Indian city of Jaipur from May 17 to 20.

GENERAL

India Tax Changes to Have Mixed Impact

The Indian government reversed a decision to broaden the application of a 1% tax on jewelry.

The tax collected at source will now only apply to jewelry purchases of $7,422 (INR 500,000) or more. The All India Gems & Jewellery Trade Federation campaigned against a government move to impose the duty on all jewelry sales of $2,969 (INR 200,000) or more.

However, new laws requiring customers to present their permanent account number (PAN) card when making a jewelry purchase of $2,969 or more will remain in place despite protests.

ECONWATCH

Diamond Industry Stock Report

Anglo American (+13%) led U.K.-based mining stocks this past week on news of strong sales at the fourth De Beers sight of the year. In the U.S., retail stocks were generally higher, headed by Walmart (+12%), with Tiffany (-0.1%) only dipping slightly on disappointing 1Q sales figures. Indian and European industry stocks were mixed while Far East share prices mostly increased.

View the detailed industry stock report.



May 26 (10:07 GMT) May 19 (11:01 GMT) Chng.
$1 = Euro 0.89 0.89 0.00
$1 = Rupee 67.19 67.36 -0.17
$1 = Israel Shekel 3.84 3.86 -0.02
$1 = Rand 15.55 15.85 -0.30
$1 = Canadian Dollar 1.30 1.31 -0.01

Precious Metals Chng.
Gold $1,227.50 $1,254.12 -$26.62 -2.1%
Platinum $1,003.58 $1,018.35 -$14.77 -1.5%
Silver $16.43 $16.66 -$0.23 -1.4%

Stock Indexes Chng.
BSE 26,366.68 25,399.72 966.96 3.8%
Dow Jones 17,851.51 17,526.62 324.89 1.9%
FTSE 6,270.01 6,082.35 187.66 3.1%
Hang Seng 20,397.11 19,694.33 702.78 3.6%
S&P 500 2,090.54 2,047.63 42.91 2.1%
Yahoo! Jewelry 1,042.35 1,053.05 -10.70 -1.0%
_______________
Múdry sa teší objaveniu pravdy, hlupák falošnosti.
Moderátor
Rapaport Weekly Market Comment June 2, 2016


Industry focused on Vegas shows. U.S. demand supporting the market but dealers cautious as May consumer confidence index slips 2%. ALROSA expects short-term rough market stability as 1Q sales +37% to $1.6B, profit +125% to $758M, inventory reduced from 22M to 18M cts. Christie’s Hong Kong sells $61.7M (72% by lot) with rectangular, 5.03 ct., fancy vivid ‘Aurora Green’, VS2 diamond sold to Chow Tai Fook for $16.8M ($3.3M/ct.). Gitanjali Gems FY sales +22% to $2B, profit +51% to $20M. Bruce Cleaver appointed De Beers CEO as of July 1.


RapNet Data: June 2

Diamonds 1,190,336
Value $8,027,502,376
Carats 1,280,962
Average Discount -28.62%

www.rapnet.com

The RapNet Diamond Index (RAPI™) is the average asking price in hundred $/ct. of the 10 percent best priced diamonds, for each of the top 25 quality round diamonds (D-H, IF-VS2, GIA-graded, RapSpec-A3 and better) offered for sale on RapNet - Rapaport Diamond Trading Network.

Get Current Price List | Subscribe to Rapaport | Join RapNet

RAPAPORT ANNOUNCEMENTS
June 2-5 Thu-Sun
Las Vegas Antique Jewelry & Watch Show

Las Vegas, NV, USA

Booth: 1500

View Details
June 3-6 Fri-Mon
JCK Las Vegas

Las Vegas, NV, USA
Booth: B55051View Details
June 8-15 Wed-Wed
Rapaport Single Stone Auction

New York & Israel

View Details

QUOTE OF THE WEEK
Diamonds are as relevant to today’s consumers, all over the world, as they were to their parents and their parents before them. Diamonds have also made positive contributions to a host of countries that have used their revenues wisely, to communities and to all who have been touched by their mystique and the practical benefits of responsible mining and ethical sourcing.

Bruce Cleaver, Anglo American's group director of strategy and business development, after his appointment as CEO of De Beers

MARKETS

United States: Trading slowed slightly after Memorial Day weekend with many dealers waiting for the JCK Las Vegas show to source goods…

Belgium: Trading slowed as many Antwerp dealers traveled to Las Vegas shows. Local buyers focused on finding bargains but suppliers holding firm, at least until Vegas…

Israel: Slow polished trading. High hopes but low expectations for JCK Las Vegas show with more than 60 Israeli companies participating. Steady demand for 0.30 ct. to 1.99 ct., H-J, VS2-I2 diamonds…

India: Trading sluggish due to ongoing summer holidays. Dealers waiting for Las Vegas shows hoping steady U.S. demand will stimulate global trading in the coming months…

Hong Kong: Activity stable with dealers eyeing trends and price movements at JCK Las Vegas. Relatively weak local demand with concern about difficult retail environment...

Click here for deeper analysis

INSIGHTS

Three Things the Diamond Trade’s Survival Depends On

The diamond industry is waking up to a new reality. Not only are the banks insisting on stricter compliance standards and pipeline integrity, but the largest mining companies and jewelry retailers are rapidly following suit. This is forcing the industry to rethink the way it conducts business so that ‘transparency, responsibility and sustainability’ are engrained in the ethos of the trade...

Click here to continue reading

INDUSTRY

Mellier Resigns as De Beers CEO

Philippe Mellier (pictured) stepped down as chief executive officer of De Beers after five years, with Bruce Cleaver appointed to replace him on July 1.

Cleaver has been group director of strategy and business development for De Beers parent company Anglo American since last year. Before then he was executive director at De Beers, responsible for strategy and commercial relationships, and served as the diamond miner’s co-acting CEO for a year prior to Mellier’s appointment in 2011.

De Beers to Bring Auction Viewings to New York

De Beers will hold auction viewings in the U.S. for the first time with a showing of exceptional and special stones in New York later this month.

The viewings are scheduled for June 28 to 30 at the premises of the International Institute of Diamond Valuation before an auction on July 20. The miner plans to include a wider range of products in future viewings, said Neil Ventura, De Beers executive vice-president of auction sales (pictured).


GIA to Test Melee for Synthetics

The Gemological Institute of America (GIA) is piloting a service to separate natural and untreated diamonds from simulants and potentially synthetic or treated gems.

The GIA Melee Analysis Service will analyze and sort stones measuring 1.1 millimeters to 3.8 millimeters in diameter with D to Z color. The fully-automated system will process about 1,800 stones per hour and cost between $0.08 and $0.30 per stone based on diameter.

The pilot, which launches in June at the GIA’s laboratory in New York, will be offered at all GIA locations and is scheduled to be rolled out in the third quarter.

EU Eyes 2018 Kimberley Process Chairmanship

The European Union (EU) is bidding for the role of Kimberley Process (KP) vice chair in 2017, meaning it would assume chairmanship of the organization the following year.

In a joint proposal made at the KP intersessional meeting in Dubai in May, India would serve as vice chair under the EU in 2018 and take on the role of chairman in 2019, India’s Ministry of Commerce & Industry said. The position is currently held by the United Arab Emirates (UAE) with Australia its vice chair and next year’s chair.

Kimberley Process to Readmit CAR, Venezuela

The Central African Republic (CAR) and Venezuela are edging closer to a return to the Kimberley Process (KP) following the organization’s intersessional meeting in Dubai last week.

The monitoring team assessing the CAR has “by and large” completed its verification and due diligence on the first shipment of rough diamonds from the country’s Berberati compliant zone, reported Ahmed Bin Sulayem, the United Arab Emirates-based chair of the KP for 2016 (pictured).

Venezuela is also on the verge of being admitted after it suspended itself from the KP in 2008, Sulayem said.

IDE Mandates Disclosure of Inclusion Mapping

Rough sellers at the Israel Diamond Exchange (IDE) will be required to disclose that a stone has undergone inclusion mapping under a memorandum of understanding between the bourse and Sarine Technologies.

Sarine stores information on all unmarked stones scanned by its Galaxy machines and will provide this information to the IDE on request, said Uzi Levami, Sarine’s executive director and chief executive officer (pictured, right).

Yoram Dvash (left), president of the IDE, proposed at the World Diamond Congress in Dubai in May that the requirement be adopted by the World Federation of Diamond Bourses.


RETAIL & WHOLESALE
Green Diamond Breaks Auction Records

Christie’s sold the ‘Aurora Green’ diamond to Chow Tai Fook for $16.8 million (HKD 130 million) at its Hong Kong auction Tuesday, achieving $3.3 million per carat.

The rectangular-cut, 5.03-carat, fancy vivid green, VS2 diamond is the world’s largest natural fancy vivid green diamond, Christie’s said. The selling price and the price per carat set world auction records for a green diamond.

Christie’s garnered $60.7 million at the sale, with 72% sold by lot and 73% sold by value.

U.S. Jewelry Store Sales Rise in March

U.S. specialty jewelry store sales increased 3% year on year to $2.12 billion in March, according to the latest data from the U.S. Census Bureau. The growth at specialty stores was slower than for the sector as a whole, as jewelry and watch sales across all channels advanced 4.2% to $4.65 billion during the month.

Specialty jewelry store sales in the first quarter of 2016 increased 1.4% to $6.53 million. Total U.S. jewelry and watch sales in the first quarter advanced 4.9% to $15.47 billion, according to preliminary Rapaport News estimates.

Gitanjali Profit +51% as Jewelry Outpaces Diamonds

Gitanjali Gems, one of India’s largest jewelry retailers, said revenue and profit surged in the past fiscal year driven by a strong performance in its jewelry division while its diamond revenue slid.

Group sales jumped 22% to $2.08 billion (INR 139.84 billion) and profit soared 51% to $20.1 million in the 12 months to March 31, the Mumbai-based company reported. Jewelry sales surged 43% to $1.67 billion, outperforming the diamond segment, where revenue fell 24% to $475.4 million.

Monthly Swiss Watch Exports Decline

Swiss watch exports fell in April with significantly fewer higher-end and precious-metal timepieces shipped out of the country.

Total shipments slid 11% year on year to $1.63 billion (CHF 1.62 billion) during the month, according to data provided by the Federation of the Swiss Watch Industry.

Shipments of watches with an export price of more than $3,016 (CHF 3,000) slumped 13%, driving the overall downturn, the federation said. Exports of timepieces made from precious metal fell 14% and gold-steel watch shipments slid 13%.

MINING

ALROSA Sees Stronger Sales, Lower Inventory in 1Q

ALROSA reported revenue and profit surged in the first quarter as the rough diamond market improved from last year’s slump.

Revenue jumped 37% to $1.56 billion (RUB 102.34 billion) in the three months to March 31 and profit more than doubled to $758.8 million. Diamond inventories in rubles declined 18% to $718.1 million. This comes after the miner’s stockpile increased by more than 8 million carats through 2015 to 22 million carats at the end of December following reduced demand.

Dominion Defers Jay Project

Dominion Diamond Corporation has postponed a project by about two years that is expected to add a decade to the lifespan of its Ekati mine in Canada.

Mining and processing of kimberlite from the Jay project in the Northwest Territories will not take place until late 2022 compared with an original plan of 2020. Dominion revised the schedule because it determined that it could keep a continuous ore supply from the existing Ekati mine for longer than expected, giving it more time to work on developing Jay.


Petra Appoints CFO and COO

Petra Diamonds has appointed Jacques Breytenbach as its chief financial officer and Koos Visser as chief operating officer effective June 30. Both have been promoted from within the company.

The appointments follow a decision by David Abery (pictured) to step down as finance director “to pursue other opportunities” after 13 years in the role.


Stellar Gets ‘Verbal’ Go-Ahead for Tongo Project

Stellar Diamonds said it was “verbally informed” that its application for a license to mine at its Tongo project in Sierra Leone was approved by the Minerals Advisory Board.

The licensing process is still subject to written confirmation from the National Minerals Agency and approval of a licensing agreement by the Minister of Mines. Stellar and the Government of Sierra Leone will then negotiate fiscal terms. The resulting mining concession agreement will require ratification through the country’s Parliament.


GENERAL

‘Young Diamantaires’ Aim to Nurture Next Generation

The World Federation of Diamond Bourses (WFDB) set up an international program to develop the future generation of diamond dealers.

The ‘Young Diamantaires’ initiative was introduced at the 37th World Diamond Congress in Dubai in May and will be led by Rami Baron, who was elected chairman of the WFDB's promotion committee at the summit. It aims to encourage communication among younger members of the diamond trade.

New Fair Hits Antwerp Calendar

Antwerp will get a new exhibition targeting the trade, with a “single-minded” focus on diamond and diamond jewelry products.

The fair, known as CARAT+, will be aimed at the entire industry from miners to retailers, according to its organizer, Easyfairs, the events division of Brussels-based Artexis Easyfairs.The first edition is scheduled to run from February 5 to 8, 2017, at the company’s Antwerp Expo.

Panama Diamond Exchange Gets New Name

The Panama Diamond Exchange has been renamed the World Jewelry & Diamond Hub, Panama, to reflect a broader range of goods being traded in the bourse.

Management also wanted a name that underlined the connection between the exchange and the World Jewelry Hub (WJH), which hosts it.


Sarine Buys Diamond App Maker

Sarine Technologies acquired DiaMining, a developer of apps that produce digital imagery of diamonds, gemstones and jewelry.

The deal was valued at $1.2 million and encompasses DiaMining’s technology and assets.

Ramat Gan-based DiaMining offers point-of-sale products that display still and video imagery which integrates with inventory management systems, enabling sellers to showcase their inventory in a store, in the back office or while still at a supplier.

ECONWATCH

Diamond Industry Stock Report

Industry stocks rose in the Far East, led by Luk Fook (+8.2%), during a week in which government data showed a slower decline in April Hong Kong retail sales than last month. Movado (-14%) headed the U.S. retail declines on disappointing quarterly results. Mining stocks were mixed, with Peregrine Diamonds (+20%) the standout leader.

View the detailed industry stock report.

Jun 2 (11:33 GMT) May 26 (10:07 GMT) Chng.
$1 = Euro 0.89 0.89 0.00
$1 = Rupee 67.29 67.19 0.10
$1 = Israel Shekel 3.86 3.84 0.02
$1 = Rand 15.58 15.55 0.03
$1 = Canadian Dollar 1.31 1.30 0.01

Precious Metals Chng.
Gold $1,215.35 $1,227.50 -$12.15 -1.0%
Platinum $972.40 $1,003.58 -$31.18 -3.1%
Silver $15.96 $16.43 -$0.47 -2.9%

Stock Indexes Chng.
BSE 26,843.14 26,366.68 476.46 1.8%
Dow Jones 17,789.67 17,851.51 -61.84 -0.3%
FTSE 6,215.09 6,270.01 -54.92 -0.9%
Hang Seng 20,859.22 20,397.11 462.11 2.3%
S&P 500 2,099.33 2,090.54 8.79 0.4%
Yahoo! Jewelry 1,014.80 1,042.35 -27.55 -2.6%
_______________
Múdry sa teší objaveniu pravdy, hlupák falošnosti.
Moderátor
Rapaport Weekly Market Comment June 9, 2016


JCK Las Vegas show traffic slower than previous years but meets conservative expectations. Exhibitors concerned about sluggish demand, synthetics, marketing to millennials, and U.S. election uncertainty. Upbeat Antique show signals improving demand for branded estate jewelry. May 1 ct. RAPI flat, 0.30 ct. -1.1%. Signet shares plunge 20% as Kay Jewelers defends ‘diamond swapping’ claims. Chow Tai Fook FY revenue -12% to $7.3B, profit -46% to $384M. U.S. April polished imports +3% to $1.9B. Belgium May polished exports +5% to $1.1B, rough imports +18% to $1.3B. Stuller joins Int’l Grown Diamond Association. DPA unveils marketing slogan: ‘Real is Rare. Real is a Diamond.’


RapNet Data: June 9

Diamonds 1,190,337
Value $8,123,979,876
Carats 1,281,014
Average Discount -28.61%

www.rapnet.com



The RapNet Diamond Index (RAPI™) is the average asking price in hundred $/ct. of the 10 percent best priced diamonds, for each of the top 25 quality round diamonds (D-H, IF-VS2, GIA-graded, RapSpec-A3 and better) offered for sale on RapNet - Rapaport Diamond Trading Network.

QUOTE OF THE WEEK
Our aim is to make millennials as passionate about diamonds as the baby boomers.

Stephen Lussier, chairman of the Diamond Producers Association, on a new slogan for diamonds

MARKETS
United States: Mixed sentiment at Las Vegas shows. Buyers looking for specific items and not purchasing for inventory. Suppliers with the right stock and who were willing to compromise a bit on price made sales…

Belgium: Polished trading slowly improving after quiet May. Fewer Antwerp-based exhibitors at JCK Las Vegas than previous years…

Israel: Trading in the bourse quiet with many dealers at Las Vegas shows. Sentiment relatively positive even as JCK show fell short of expectations. Inventory levels rising…

India: Activity back to normal after May summer break with foreign buyers looking for goods in Mumbai. Dealers at Las Vegas shows note stable U.S. demand but concerned about consumer sentiment…

Hong Kong: Diamond trading quiet with dealers interested in Las Vegas. Suppliers preparing for June Hong Kong show (June 23 to 26), the smallest of the three annual Hong Kong fairs...

Click here for deeper analysis

INDUSTRY

Diamond Prices Soften in May

Polished diamond prices declined in May with buyers waiting for the Las Vegas shows. U.S. demand was steady and the country remains the best market for dealers. However, weaker economic trends in a contentious election year is impacting sentiment in the diamond and jewelry trade.

The RapNet Diamond Index (RAPI™) for 1-carat, GIA-graded diamonds was flat in May. RAPI for 0.30-carat diamonds fell 1.1% and RAPI for 0.50-carat diamonds slid 0.3%. RAPI for 3-carat diamonds dropped 1.1%. During the first five months of the year, RAPI for 1-carat diamonds rose 1.2% but was 4.9% below its level from a year ago.

JCK Las Vegas Meets Low Expectations

Trading at the JCK Las Vegas show, which took place June 3 to 6, was relatively weak with traffic slower than previous years. Sentiment was mixed as dealers expressed confidence in the U.S. market despite the sluggish activity in Las Vegas.

Demand was specific and buyers shopped around for higher discounts. There was good demand for bread-and-butter American goods, particularly for off-size 1 ct., G-J, SI-I2 diamonds, while bridal remains the mainstay of the jewelry trade. Dealers were satisfied that the first half of 2016 was better than last year and expect continued stability in the second half.

DPA Unveils Campaign Slogan

The Diamond Producers Association (DPA) has tapped millennials’ desire for authenticity in its campaign slogan unveiled at the JCK Las Vegas show.

The DPA said the new slogan “Real is Rare, Real is a Diamond” urges millennials to think of diamonds as a symbol of a real connection rather than as a superfluous luxury product. The DPA’s research revealed millennials are skeptical about diamonds but also identify with the diamond story.

Sotheby’s Shares Ownership of ‘$72M’ Pink

Sotheby’s teamed up with Diacore and Mellen Inc. to collectively own the Pink Star diamond.

The oval mixed cut, 59.60-carat, fancy vivid pink, internally flawless stone was sold to diamond cutter Isaac Wolf in November 2013 for a world auction record of $83.2 million in Geneva. However, the gem was returned to Sotheby’s after Wolf defaulted. The auction house subsequently valued the diamond at about $72 million in its inventory where it is currently being held.

U.S. Polished Imports Rise in April

U.S. polished diamond imports rose 3% year on year to $1.85 billion in a seasonally quiet April. Diamond imports by volume edged up 0.6% to 793,939 carats and the average price grew 2.3% to $2,324 per carat.

Polished diamond exports, meanwhile, jumped 9.8% to $1.33 billion, driving net polished imports down 12% to $513 million. The U.S. April net diamond account dropped 13% to $507 million.

Belgium’s Polished Trading Jumps

Belgium’s polished diamond exports rose 4.5% year on year to $1.11 billion in May, the first increase since June last year. Spokespersons for the Antwerp World Diamond Centre maintained caution saying the data does not yet signal a turnaround.

Polished imports recorded their first advance since March last year, up 6.8% to $922.5 million. Net polished exports, representing exports minus imports, declined 5.6% to $186.1 million. Rough imports soared 18% to $1.3 billion and rough exports surged 21% to $1.28 billion.

RETAIL & WHOLESALE

Signet Refutes Allegations of ‘Diamond Swapping’

Signet Jewelers denied allegations that its employees systematically switch more expensive diamonds for lower-quality gems following claims the jeweler repeatedly engaged in diamond “swapping.”

“We strongly object to recent allegations on social media, republished and grossly amplified, that our team members systematically mishandle customers’ jewelry repairs or engage in diamond swapping,” the company said. Signet shares plunged in the aftermath of the allegations.

De Beers Embraces 'Ever Us'

Forevermark is adopting Signet’s ‘Ever Us’ two-stone ring concept for its 2016 holiday advertising campaign. The two companies will run separate campaigns aiming to create momentum for the two-stone ring concept following last year’s launch by Signet.

Forevermark will run its ‘Ever Us’ advertising on national television, digital and print media, featuring its own line of two-stone jewelry including rings, pendants and earrings. Forevermark will also continue ’The One’ theme from last year, featuring its ‘A Diamond is Forever’ tagline and will re-run the ‘Seize the Day’ campaign urging men to buy diamonds this Christmas.

U.S. Jewelry Sales Continue Growth Spurt

U.S. jewelry and watch revenue from all retail outlets recorded the biggest jump in three years in April as sales rose for a 12th consecutive month.

Revenue advanced 5.4% year on year to an estimated $5.53 billion, provisional government figures showed. This was the steepest growth since a 7.3% jump in April 2013, according to Rapaport News records. Jewelry sales increased 5.3% to $4.88 billion in April, while watch sales advanced 6.4% to an estimated $647 million.


Chow Tai Fook’s Profit Dives 46%

Chow Tai Fook’s profit tumbled in the past fiscal year as fewer tourists visited Hong Kong and consumer spending slowed in Greater China.

Profit slumped 46% to $383.6 million (HKD 2.98 billion) in the 12 months that ended March 31. Revenue slid 12% to $7.3 billion. Jewelry sales in mainland China dropped 11% and in Hong Kong and Macau they declined 15%.

Buffett’s Richline Acquires Viawear

Richline Group continued its recent string of acquisitions with the purchase of Viawear, a provider of wearable technology for jewelry brands.

Viawear has developed bracelets that filter mobile notifications so wearers receive important alerts without having to check if they missed something. Richline, a subsidiary of Warren Buffett’s Berkshire Hathaway, in April acquired jewelry website Gemvara and in June bought precious-metals company John C. Nordt.

MINING

ALROSA Anticipates Stable Rough Prices

ALROSA expects to hold rough diamond prices steady for the rest of 2016 as the miner anticipates a stable year.

“Regarding our pricing outlook for 2016, we remain cautious, but do not expect any significant falls in pricing generally,” said Igor Kulichik, ALROSA’s chief financial officer (pictured).

The Russia-based miner’s revenue soared 37% in the first three months of the year helping reduce its rough inventory by 4 million carats through the quarter. Profit more than doubled.

Dominion Swings to 1Q Loss

Dominion Diamond Corporation announced a quarterly loss as a lower-value product mix from its Ekati mine in Canada resulted in a 62% decline in the average price of rough sold.

The miner reported a loss of $1 million in the first fiscal quarter that ended April 30 versus a profit of $12 million a year ago. Sales declined 5% to $178.3 million as rough prices fell year on year. The average price at Ekati fell to $68 per carat compared to $180 a carat a year earlier. Dominion also owns 40% of the Diavik mine in Canada.


Lukoil’s 1Q Diamond Sales Rise

Lukoil reported diamond sales increased fourfold in the first quarter as the company increased production from its Grib mine in Russia.

Sales jumped to $124 million (RUB 8 billion) in the three months that ended March 31 from $31 million a year ago. The Russia-based miner started production at Grib, its only diamond asset, in September 2014 and was expected to increase annual production to 4.5 million carats from a targeted 2 million carats in 2015.

GENERAL

Stuller Joins Lab-Grown Diamond Body

Stuller, a U.S.-based jewelry manufacturer, has become the latest member of the International Grown Diamond Association (IGDA) after it started offering synthetic diamonds earlier this year.

IGDA was set up in February to represent synthetics producers. Its members include companies based in the U.S., China, Singapore, India, Philippines, Russia, Canada and Hong Kong.

KP and Civil Society Lock Horns

The Kimberley Process (KP) Civil Society Coalition hit back against comments by KP chair Ahmed Bin Sulayem criticizing the non-profit alliance for not engaging with the organization. The association last year boycotted the KP when the United Arab Emirates was appointed as its 2016 chairman.

Addressing the recent KP intersessional meeting in Dubai, Bin Sulayem (pictured) attacked Alan Martin, director of research at Partnership Africa Canada, for not taking part in mediation aimed at bringing the coalition back into the fold. The coalition argued that none of the industry reforms it had requested from the KP chair had been made.

Rio Tinto Unveils Highlights of Pink Tender

Rio Tinto revealed five lead gems of this year’s tender of polished colored diamonds from its Argyle mine as the company kicked off the sales process.

The centerpiece of the 2016 Argyle Pink Diamonds Tender is the ‘Argyle Violet,’ an oval, 2.83-carat violet diamond. The other highlights are the ‘Argyle Ultra,’ a pear-shaped, 1.11-carat violet diamond; the ‘Argyle Viva,’ a pear-shaped, 1.21-carat vivid purple-pink diamond; the ‘Argyle Thea,’ a radiant-cut, 2.24-carat vivid purplish pink diamond; and the ‘Argyle Aria,’ an oval, 1.09-carat fancy red diamond.

Antwerp Gears Up for Rough Diamond Days

Antwerp’s rough diamond bourse, the Antwerpsche Diamantkring, will host the summer edition of the Antwerp Rough Diamond Days later this month.

The fair will take place from June 21 to 22 in the Diamantkring’s trading hall. It is open to all members of exchanges affiliated to the World Federation of Diamond Bourses, the organization said.

ECONWATCH

Diamond Industry Stock Report

Signet (-9.5%) fell on allegations in the media of "diamond swapping" at its stores. U.S. retail stocks were otherwise mainly stronger, led by JCPenney (+10%). Mining stocks mostly increased, led by Rockwell Diamonds (+18%) as it recovered from a decline last week. Chow Tai Fook (+3%) was up despite reporting a heavy profit slump.

View the detailed industry stock report.

Jun 9 (11:19 GMT) Jun 2 (11:33 GMT) Chng.
$1 = Euro 0.88 0.89 -0.01
$1 = Rupee 66.76 67.29 -0.53
$1 = Israel Shekel 3.85 3.86 -0.01
$1 = Rand 14.85 15.58 -0.73
$1 = Canadian Dollar 1.27 1.31 -0.04

Precious Metals Chng.
Gold $1,259.10 $1,215.35 $43.75 3.6%
Platinum $1,001.50 $972.40 $29.10 3.0%
Silver $17.06 $15.96 $1.10 6.9%

Stock Indexes Chng.
BSE 26,763.46 26,843.14 -79.68 -0.3%
Dow Jones 18,005.05 17,789.67 215.38 1.2%
FTSE 6,251.19 6,215.09 36.10 0.6%
Hang Seng 21,297.88 20,859.22 438.66 2.1%
S&P 500 2,119.12 2,099.33 19.79 0.9%
Yahoo! Jewelry 1,068.63 1,014.80 53.83 5.3%
_______________
Múdry sa teší objaveniu pravdy, hlupák falošnosti.
Moderátor
Rapaport Weekly Market Comment June 16, 2016


Diamond markets slow as Las Vegas shows fail to stimulate stronger demand. Low expectations for next week’s June Hong Kong show with Chinese buyers cautious amid unsure market conditions. Stable rough prices with reduced supply expected at ALROSA sale and next week’s De Beers sight. Liquidity concerns deepen as Standard Chartered to exit “risky” diamond business and other banks tighten industry credit. Luk Fook warns FY profit -35%/-45%. Christie’s NY sells $42M (69% by lot) with rectangular, 24.18 ct. fancy intense blue, VS2 ‘Cullinan Dream’ selling for $25.4M ($1.04M/ct.). RJC elects Wilfried Hoerner as chairman.


RapNet Data: June 16

Diamonds 1,061,512
Value $7,911,405,249
Carats 1,196,450
Average Discount -27.74%

www.rapnet.com

The RapNet Diamond Index (RAPI™) is the average asking price in hundred $/ct. of the 10 percent best priced diamonds, for each of the top 25 quality round diamonds (D-H, IF-VS2, GIA-graded, RapSpec-A3 and better) offered for sale on RapNet - Rapaport Diamond Trading Network.

Get Current Price List | Subscribe to Rapaport | Join RapNet

RAPAPORT ANNOUNCEMENTS

June 14-22 Tue-Wed
Rapaport Melee Auction

New York & Dubai

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June 23-26 Thu-Sun
Hong Kong Jewellery & Gem Fair

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Jun-Jul 29-6 Wed-Wed
Rapaport Single Stone Auction

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July 11-14 Mon-Thu
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QUOTE OF THE WEEK
We take it personally. We take it seriously when someone is questioning our integrity.

Mark Light, CEO of Signet Jewelers, defends allegations of 'diamond swapping' at Kay Jewelers in an interview with The Wall Street Journal

MARKETS

United States: Las Vegas shows just okay. U.S. Jewelry market stable but diamond demand slow. New York dealers filling orders and sending goods out on memo…

Belgium: Polished trading slow and sentiment weak. Dealers returned from Las Vegas with low expectations met. Buyers picky. Dossiers and 1-carat slowing…

Israel: Dealers back from Las Vegas with mixed reviews about the show. Demand was very specific with buyers looking to fill existing orders with narrow specifications. Good demand for SI’s in all categories…

India: Market slow. U.S. demand steady despite relatively weak Las Vegas shows. Large manufacturers satisfied with demand from large jewelry chains. Smaller suppliers had a mixed show. Indian domestic demand cautious…

Hong Kong: Low expectations for next week’s show. Chinese buyers traveling to the show to assess market conditions rather than buy goods. Chinese demand slowing with jewelers discounting to attract customers...

Click here for deeper analysis


INSIGHTS

Vegas Shows Reveal Stable, Fast-Changing Market

As a bellwether for the U.S. jewelry market and global diamond industry, this year’s Las Vegas shows met the trade’s conservative expectations. While foot traffic and diamond trading were slightly slower than previous years, jewelry sales were resilient...

Click here to continue reading

FIVE-MINUTE INTERVIEW

Antwerp’s Pain, Dubai’s Gain

Davy Blommaert, head of diamond lending at Dubai-based National Bank of Fujairah and a former executive of Antwerp Diamond Bank, took time out recently to speak to Rapaport News...

Click here to read the interview

INDUSTRY

Standard Chartered Exits Diamond Business

Standard Chartered terminated lending to the midstream diamond and jewelry industry having curbed its exposure to businesses that fail to meet its “new risk profile.”

The decision comes after the bank tightened its terms of lending to clients in the diamond sector, requiring manufacturers to secure payment insurance or provide 100% collateral. Standard Chartered has about $2 billion credit outstanding to the industry, Bloomberg reported.

‘Cullinan Dream’ Fetches Record $25M

The ‘Cullinan Dream’ sold for $25.4 million, or $1.04 million per carat, at Christie’s Magnificent Jewels auction in New York. The rectangular, 24.18-carat, fancy intense blue, VS2 diamond fetched a record auction price for its color category, Christie’s said.

The Cullinan Dream is one of four polished diamonds cut from the 122.52-carat rough recovered in 2014 at Petra Diamonds’ Cullinan mine in South Africa. Petra sold the rough into a cutting and polishing partnership for $23.5 million and will receive a 15% share in the Christie’s sales proceeds.

The Christies auction had a total value of $42.2 million and was 69% sold by lot.

Trump Ring Under the Hammer

An engagement ring given by Donald Trump to actress and singer Marla Maples will be auctioned in New York for an estimated $300,000. The emerald-cut, 7.45-carat, Harry Winston diamond ring will go under the hammer at the Lotte Palace Hotel on June 29.

Trump, the presumptive Republican Party candidate in the U.S. presidential elections this November, proposed to Maples with the ring in 1991. Following their divorce in 1999, Maples sold it for $110,000 in June 2000 through an auction by Joseph DuMouchelle. The same private buyer is returning to the auctioneer for the resale.

RJC Elects Chairman

The Responsible Jewellery Council (RJC) voted in Wilfried Hoerner, of Switzerland-based precious metals company Argor-Heraeus, as its new chairman. Hoerner replaces interim chair Charles Chaussepied, who held the position since last July.

Mark Jenkins of Signet Jewelers was re-appointed RJC’s honorary secretary at the organization’s annual general meeting in Las Vegas earlier this month. New board members include Michael Steinmetz of Leo Schachter Diamonds; Ankur Goyal of MMTC-PAMP India Pvt Ltd; Jean-Baptiste Dembreville of Baume & Mercier; Bernard Malek of Cartier; and Harriet Kelsall of Harriet Kelsall Jewellery Design.

RETAIL & WHOLESALE

Luk Fook Warns on Profit

Luk Fook warned profit likely slumped 35% to 45% in the fiscal year that ended March 31. Tourists visiting Hong Kong from mainland China spent less because of a stronger Hong Kong dollar relative to the Renminbi, the jewelry retailer said. China’s economic slowdown and an increase in the popularity of other tourist destinations for luxury purchases also contributed to the slide.

U.S. Jewelry Store Sales Rise in April

U.S. specialty jewelry store sales increased 3.6% year on year to $2.29 billion in April, government data showed. Growth matched the upward trend in U.S. jewelry stores this year which saw revenue from all outlets advance an estimated 5.4% in April, the sharpest rise in three years. Jewelry store sales rose 2.1% to $8.83 billion in the first four months of the year.


Signet Under Spotlight Over ‘Swapping’ Allegations

Signet Jewelers is facing potential class action suits initiated by at least three law firms which allege the retailer may be in violation of federal securities laws. Signet’s share price plummeted more than 20% in the past two weeks since allegations surfaced that staff at its subsidiary Kay Jewelers engaged in “diamond swapping.”

Questions were also raised about its use of credit to boost sales. Signet said there was “no merit” to the lawyers’ allegations. Short sellers launched a “targeted attack” to amplify the controversy, Mark Light, Signet’s chief executive officer, was cited by Bloomberg as saying.

MINING

RBC Downgrades Dominion

RBC Capital Markets downgraded Dominion Diamond Corporation to “sector perform” from “outperform” and reduced its price target for the miner to $11 from $13 per share.

The analyst reasoned that rough diamond prices will soften in the summer before they firm slightly later in the year, while a challenging outlook for the company's Jay project will also weigh on its performance. The miner recently announced a two year delay to the Jay project, which is expected to add a decade to the lifespan of Dominion’s Ekati mine.

ALROSA Recovers 241-Ct. Gem

ALROSA found a 241.21-carat rough diamond at its Nyurbinsky mine in Yakutia. The diamond is one of the largest recovered in Russia and the third largest in the company's Nyurba division.

ALROSA also said it has begun developing the Zarya pipe, a new deposit in its Aikhal Mining and Processing Division at an estimated initial investment of $149 million (RUB 9.8 billion). The mine is expected to reach a targeted capacity of 1 million tons of ore per year by 2021 and have a lifespan of 13 years.

Rockwell’s 1Q Sales Spike

Rockwell Diamonds reported rough sales surged 40% year on year to $9.3 million in the first fiscal quarter that ended May 31. This followed a restructuring aimed at reversing the recent slump in the miner’s performance. Sales by volume jumped 11% to 5,191 carats, while the average price achieved soared 26% to $1,801 per carat.

Lace Run-of-Mine Goods Sold for $189/Ct.

DiamondCorp sold two batches of rough diamonds from its Lace mine for $436,597 (ZAR 6.5 million). The 1,838 carats of run-of-mine goods sold for an average price of $189 per carat, a record high for the company. A separate parcel of 1,679 carats of diamonds from Lace’s tailings operation fetched $53 per carat.


GENERAL

Guinea Greenlights Diamond Bourse

Guinea approved the opening of a diamond and gold exchange, a joint initiative with Canadian companies Investissement Royal KSA and Embee Diamond Technologies. The Diamond and Gold Bourse of Guinea Group (DGBG) will apply for membership of the World Federation of Diamond Bourses once it becomes operational. Membership of the DGBG will be open to diamantaires who are audited members of the Responsible Jewelry Council.

De Beers to Divest Stake in Coal Mine

De Beers will sell its 50% stake in the Morupule Coal Mine in Botswana to the nation’s government as the miner’s parent Anglo American prunes its commodities portfolio. The stake will be transferred to the newly formed Minerals Development Company of Botswana (MDCB), Reuters reported. De Beers holds the stake through its Debswana Diamond Mining Company subsidiary.

ECONWATCH

Diamond Industry Stock Report

Sotheby’s (-10%) led almost universal declines in U.S. retail and jewelry stocks this past week, with Signet (-7.1%) continuing its fall due to “swapping” allegations. Hong Kong-based jewelry stocks also slid as low sentiment persisted, headed by Chow Sang Sang (-12%). Mining stocks generally saw a downward trajectory, led by Petra Diamonds (-16%), but Rockwell Diamonds (+10%) bucked the trend on promising results.

View the detailed industry stock report.

Jun 16 (09:52 GMT) Jun 9 (11:19 GMT) Chng.
$1 = Euro 0.89 0.88 0.01
$1 = Rupee 67.23 66.76 0.47
$1 = Israel Shekel 3.87 3.85 0.02
$1 = Rand 15.34 14.85 0.49
$1 = Canadian Dollar 1.30 1.27 0.02

Precious Metals Chng.
Gold $1,304.85 $1,259.10 $45.75 3.6%
Platinum $984.62 $1,001.50 -$16.88 -1.7%
Silver $17.72 $17.06 $0.66 3.9%

Stock Indexes Chng.
BSE 26,511.51 26,763.46 -251.95 -0.9%
Dow Jones 17,640.17 18,005.05 -364.88 -2.0%
FTSE 5,929.23 6,251.19 -321.96 -5.2%
Hang Seng 20,038.42 21,297.88 -1,259.46 -5.9%
S&P 500 2,071.50 2,119.12 -47.62 -2.2%
Yahoo! Jewelry 1,057.70 1,068.63 -10.93 -1.0%
_______________
Múdry sa teší objaveniu pravdy, hlupák falošnosti.
Moderátor
Rapaport Weekly Market Comment June 23, 2016


Polished markets cautious. Hong Kong show begins with low expectations for Chinese demand after relatively weak JCK Las Vegas show. Prices stable at De Beers sight with boxes selling at mid-single-digit premiums amid concerns that rough market fails to reflect sluggish polished demand. Manufacturing steady. Swiss May watch exports -10% to $1.6B. Luk Fook FY revenue -12% to $1.8B, profit -41% to $124M. Shrenuj FY revenue -34% to $266M, loss of $6M vs. profit of $3M in previous year. India May polished exports +13% to $1.9B, rough imports +15% to $1.5B. Rio Tinto merges diamond and copper units to be headed by Arnaud Soirat.


RapNet Data: June 23

Diamonds 1,227,660
Value $8,191,947,803
Carats 1,320,274
Average Discount -29.29%

www.rapnet.com

The RapNet Diamond Index (RAPI™) is the average asking price in hundred $/ct. of the 10 percent best priced diamonds, for each of the top 25 quality round diamonds (D-H, IF-VS2, GIA-graded, RapSpec-A3 and better) offered for sale on RapNet - Rapaport Diamond Trading Network.

Get Current Price List | Subscribe to Rapaport | Join RapNet

RAPAPORT ANNOUNCEMENTS
June 23-26 Thu-Sun
Hong Kong Jewellery & Gem Fair

Hong Kong

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Jun-Jul 29-6 Wed-Wed
Rapaport Single Stone Auction

New York & Israel

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July 11-13 Mon-Wed

Rapaport Single Stone Auction

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July 12-20 Tue-Wed

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New York & Dubai

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QUOTE OF THE WEEK
At first I wanted to scream. Then I said in a low hoarse voice 'God, it’s a diamond! It’s a diamond, it’s a big diamond!’

Lucara trainee Tiroyaone Mathaba, 27, on discovering the 1,109-carat Lesedi La Rona


MARKETS

United States: Polished trading quiet in New York ahead of July vacation period. Post-Las Vegas demand weaker than previous years but U.S. still considered the best market…

Belgium: Cautious activity in Antwerp. Dealers waiting for this week’s Hong Kong show to gauge Chinese demand. U.S. demand quiet but stable…

Israel: Polished trading quiet and buyers cautious. Large Israeli delegation exhibiting at Hong Kong show. Good U.S. demand for 1 to 2 ct., G-J, SI-I1 goods…

India: Polished trading slow with very few foreign buyers in the market and sluggish local Indian demand. Suppliers and buyers traveling to Hong Kong show uncertain about Chinese demand…

Hong Kong: Market focused on show which starts Thursday (June 23-26). Expectations low as buyers from mainland China remain cautious and Hong Kong retailers endure significant slowdown in customer foot traffic and sales...

Click here for deeper analysis

FIVE-MINUTE INTERVIEW

Rich New Diamond Mine Ready to Sparkle

Patrick Evans, president and CEO of Mountain Province, took time out to speak with Rapaport News about the prospects for the Gahcho Kué mine in Canada’s Northwest Territories...

Click here to read the interview

INDUSTRY
De Beers Opens Selling Platform to Trade

De Beers is piloting a program allowing businesses to sell rough diamonds from its online auction platform. The service is available for single stones larger than 5 carats and fancy-color diamonds. It will only be open to businesses that adhere to standards set by De Beers covering integrity of diamond sellers, product disclosure and provenance.

Shrenuj Downsizing After Somber Results

Shrenuj & Company is “rationalizing” its workforce after reporting an annual loss. Employees have started tendering their resignations, the Mumbai-based diamond and jewelry manufacturer said. Revenue on a standalone basis slumped 34% to $265.7 million (INR 17.89 billion) in the fiscal year that ended March 31. The company also reported a $6 million loss versus a $3.1 million profit a year ago. Revenue from the diamond segment dived 37%.

JAPAC Lobbies on Synthetics Wording

The Jewelers of America Political Action Committee (JAPAC) criticized a planned change to the Federal Trade Commission’s “Guides for the Jewelry, Precious Metals, and Pewter Industries” that would allow the term “cultured” when referring to synthetic diamonds. A JAPAC-led delegation of jewelers raised the issue with lawmakers in Washington, D.C., and said officials expressed interest in supporting their cause. Delegates also pushed for legislation that would eliminate the sales-tax advantage that online retailers have over brick-and-mortar businesses.

India’s Diamond Trading Advances in May

India’s polished diamond exports jumped 13% year on year to $1.97 billion in May, according to the Gem & Jewellery Export Promotion Council. Polished imports soared 27% to $249.1 million, leaving net polished exports 11% higher at $1.72 billion. Rough imports leapt 15% to $1.52 billion and rough exports increased 7.9% to $127 million, leaving net rough imports 16% higher at $1.4 billion. India’s net diamond account, the difference between net polished exports and net rough imports, declined 3.8% to $329 million.

Antwerp Says Diamonds Are ‘in our DnA’

Antwerp’s diamond industry is aiming to invigorate the Belgian city’s reputation as a global capital for the sector through a new campaign. Entitled ‘Diamonds and Antwerp, it’s in our DnA,’ the initiative celebrates more than 550 years during which the city has been “synonymous” with the precious stones, according to the Antwerp World Diamond Centre. The program will involve a festive diamond-themed period starting in October 2017.


RETAIL & WHOLESALE

Graff Reveals 105-Carat Diamond

Graff Diamonds unveiled a pear-shaped, 105.07-carat, D, flawless diamond at the opening of Graff’s new store at the Place Vendôme in Paris. The gem was cut and polished by the jeweler’s own gemologists from a 314-carat rough stone discovered last year at Gem Diamonds’ Letšeng mine in Lesotho. The diamond has been named the ‘Graff Vendôme’ to commemorate the open

Luk Fook’s Profit Plunges 41%

Hong Kong-based Luk Fook’s sales slumped 12% to $1.81 billion (HKD 14.03 billion) and profit plummeted 41% to $123.9 million in the past fiscal year. The company joined a string of jewelers in the region to be hit by a Chinese economic downturn and fewer tourist arrivals in Hong Kong. Sales were impacted by the strong U.S. and Hong Kong dollars relative to the Renminbi, while favorable exchange rates made locations such as Japan and Korea more attractive shopping destinations for Chinese tourists.

U.S. Jewelry Prices Rise in May

The U.S. consumer price index (CPI) for jewelry grew 3.3% in May from a month ago, according to the U.S. Bureau of Labor Statistics. The index jumped 9.9% from a year earlier. The May CPI for watches also climbed 3.3% over the previous month and spiked 7.2% from a year ago.

Swiss Watch Exports Miss a Beat

Swiss watch exports extended their decline in May because of a slump in shipments of higher-value and precious-metal timepieces. Exports dropped 9.7% to $1.62 billion (CHF 1.55 billion) as shipments of watches made from precious metals dived 24% to $512.14 million. Exports to Hong Kong plunged 17%, continuing the downtrend witnessed in recent months.

Michael Hill to Restructure for Australia Listing

Michael Hill will move its primary stock-exchange listing to Sydney next month and set up a new parent company that will be incorporated in Australia. The jeweler, which traces its roots back to New Zealand, has shifted most of its key functions to Australia. The listing on the Australian Securities Exchange will be effective July 7.

MINING

Rio Tinto Merges Diamonds and Copper

Rio Tinto will combine its diamond and copper divisions to form one product unit within a new group structure. The move comes under Rio Tinto’s new chief executive officer Jean-Sébastien Jacques (pictured), who will succeed Sam Walsh on July 2. Arnaud Soirat, currently head of the company’s aluminum primary metal division, will be the London-based CEO of the merged copper and diamonds division and join Rio Tinto’s executive committee.

Cullinan Yields 121-Carat Whopper

Petra Diamonds discovered a 121.26-carat rough diamond at its Cullinan mine in South Africa. The white, type-II diamond of “exceptional” color and clarity was put up for sale at a tender in Johannesburg this week. It is the last tender for Petra in fiscal 2016, which will end June 30.

Huge Diamond Made Sorter Want to Scream

The 1,109-carat Lesedi La Rona diamond was discovered by a 27-year-old trainee who had worked at Lucara Diamond Corp. for fewer than five months. Tiroyaone Mathaba found the gem while working as a sorter, examining rock and sand produced by large diamond recovery machines, The Daily Telegraph reported. “At first I wanted to scream,” Mathaba was cited as saying. The diamond is expected to sell for more than $70 million at Sotheby’s in London next week.

Gemfields Ruby Sale Fetches $44M

Gemfields is launching a campaign to market rubies from Mozambique after the company reported its largest sale to date for stones from the country’s Montepuez mine. The miner sold $44.3 million of rough rubies and corundum from Montepuez at a June auction in Singapore. The gems fetched an average price of $29.21 per carat from 1.5 million carats.

GENERAL

KP Chair Visits CAR

Ahmed Bin Sulayem became the first sitting Kimberley Process chairman to visit the Central African Republic (CAR). The tour comes after the country resumed diamond exports following a three-year moratorium. Bin Sulayem (pictured, left) met with Faustin-Archange Touadera, President of the CAR (right), and Leopold Mboli Fratran, the newly appointed minister of mines.

Antwerp Trade Selects AWDC Board

The Antwerp World Diamond Centre (AWDC) last week elected its new board, which will appoint the industry body's president and vice-presidents next week. Vimal Lakhani of Kiran Exports and Nishit Parikh of Diarough were elected unopposed in category 1, representing firms in the highest revenue band. In the two contested categories, Amratlal Chatankumar Shah of Simplex and Rajiv Kothari of Diamstones were selected from the category 2 vote, while Samir Mehta of Snehdiam and Jacques Weisz of Weisz Diamonds Belgium were re-elected for category

Knightley Named Face of Chanel Jewelry

Keira Knightley will front Chanel’s fine jewelry line “Coco Crush,” a role previously filled by models such as Sigrid Agren and Jac Jagaciak. The star, who acted in Bend It Like Beckham and Pirates of the Caribbean previously fronted Chanel’s Coco Mademoiselle perfume and Rouge Coco lipstick. The advertisements were photographed by Mario Testino, a favorite of Chanel. They are scheduled to debut in fall 2016.



ECONWATCH

Diamond Industry Stock Report

Mining stocks were mixed this past week, led by Anglo American (+13.5%), with Rio Tinto (+8.1%) gaining on news of a corporate restructuring. Goldiam International (+28%) stood out in India where stocks were otherwise mostly stable. In the U.S., Signet (+3%) showed signs of a recovery after bad publicity prompted a slide in its share price in previous weeks.

View the detailed industry stock report.

Jun 23 (12:06 GMT) Jun 16 (09:52 GMT) Chng.
$1 = Euro 0.88 0.89 -0.01
$1 = Rupee 67.29 67.23 0.07
$1 = Israel Shekel 3.82 3.87 -0.04
$1 = Rand 14.46 15.34 -0.87
$1 = Canadian Dollar 1.28 1.30 -0.02

Precious Metals Chng.
Gold $1,263.95 $1,304.85 -$40.90 -3.1%
Platinum $974.75 $984.62 -$9.87 -1.0%
Silver $17.32 $17.72 -$0.40 -2.3%

Stock Indexes Chng.
BSE 27,002.22 26,511.51 490.71 1.9%
Dow Jones 17,780.83 17,640.17 140.66 0.8%
FTSE 6,338.64 5,929.23 409.41 6.9%
Hang Seng 20,868.34 20,038.42 829.92 4.1%
S&P 500 2,085.45 2,071.50 13.95 0.7%
Yahoo! Jewelry 956.95 1,057.70 -100.75 -9.5%
_______________
Múdry sa teší objaveniu pravdy, hlupák falošnosti.
Moderátor
Rapaport Weekly Market Comment June 30, 2016


Sentiment weak as Brexit vote adds to economic uncertainty and Hong Kong show disappoints. Stock markets volatile, currencies weak, gold rallies (+4% to $1,320/oz) as investors seek assets with store of value. Polished trading slow with Chinese buyers pushing for deeper discounts and U.S. dealers heading for July vacation. Rough markets stable with 3 to 6 grainers softening at auctions. De Beers sells $560M in June, 1H sales +12% to estimated $3B. Lucara’s 1,109 ct. ‘Lesedi la Rona’ rough diamond does not sell with high bid $61M ($55,000/ct.) at Sotheby’s London. U.S. May jewelry retail sales +4% to $6.3B. AWDC reelects Stéphane Fischler president.


RapNet Data: June 30

Diamonds 1,209,787
Value $8,046,872,741
Carats 1,301,184
Average Discount -29.34%

www.rapnet.com


The RapNet Diamond Index (RAPI™) is the average asking price in hundred $/ct. of the 10 percent best priced diamonds, for each of the top 25 quality round diamonds (D-H, IF-VS2, GIA-graded, RapSpec-A3 and better) offered for sale on RapNet - Rapaport Diamond Trading Network.
Get Current Price List | Subscribe to Rapaport | Join RapNet

RAPAPORT ANNOUNCEMENTS
Jun-Jul 29-6 Wed-Wed
Rapaport Single Stone Auction

New York & Israel

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July 11-13 Mon-Wed
Rapaport Single Stone Auction

Mumbai

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July 12-20 Tue-Wed
Rapaport Melee Auction

New York & Dubai View Details
July 23-25 Sat-Mon
RJO Buying Show

Booth: 254

Indianapolis, IN

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QUOTE OF THE WEEK
There will be continuing volatility in global markets since this is completely uncharted waters. And we have already seen how the price of gold has jumped as investors seek the traditional safe haven. Both of those developments are unfortunate as they may tend to persuade consumers not to buy jewelry.

Ernie Blom, president of the World Federation of Diamond Bourses, on the post-Brexit turmoil


MARKETS

United States: Polished trading stable with dealers filling orders before two-week July vacation period. Steady demand for 1 to 3 ct., G-I, VS2-SI2 diamonds, while larger stones remain weak…

Belgium: Polished trading slow at quiet Hong Kong show and Antwerp market sluggish. Wholesalers avoiding large inventory purchases with concern prices will soften in coming months…

Israel: Market slow as dealers return from Hong Kong show. Overall concern about lagging demand as lower prices fail to stimulate sales…

India: Sentiment weak with dealers disappointed at Hong Kong show. Chinese demand cautious and fewer buyers in Mumbai ahead of U.S. vacation period…

Hong Kong: June show small and quiet. Retailers went to assess market trends and push for bargains. Suppliers willing to compromise on price had relatively busy show...

Click here for deeper analysis

RAPAPORT STATEMENT

Brexit Impact

Brexit will not have a sustainable negative impact on polished diamond demand. The EU has not been a dominant diamond consumption center for many years...

Click here to read state

INSIGHTS

The Rough Guide: Who's Buying Where and Why

Rapaport publishes its annual list of manufacturers and dealers buying rough diamonds from the major mining companies...

Click here to continue reading

FIVE-MINUTE INTERVIEW

Diamonds Driving Growth as Consolidation Continues

The U.S. jewelry market continues to consolidate but there are also areas of growth, says Tony Capuano, president of the Jewelers Board of Trade, in his first interview with Rapaport News...

Click here to read the interview

INDUSTRY

Brexit May Prove Costly for U.K. Jewelers

The cost of manufacturing and importing jewelry to the UK is expected to rise after the nation voted to leave the European Union, the National Association of Jewellers warned. Gold surged and the pound depreciated to its lowest level in more than 30 years after results from the Brexit referendum came in last week. The fallout may also affect the timing of Russia’s sale of a 10.9% stake in ALROSA if market conditions deteriorate, according to Sberbank CIB, the bank organizing the sale.

Shock as Lesedi La Rona Unsold at Auction

Lucara's share price tumbled 15% after the company's 1,109-carat Lesedi La Rona failed to sell at Sotheby’s London. The diamond drew a highest bid of $61 million, below its reserve price, which was not disclosed. Lucara Diamond Corp., which discovered the type-IIa diamond last November, will retain the stone. The diamond is the second largest rough ever found and was expected to fetch more than $70 million at the auction.

De Beers June Sales Valued at $560M

De Beers reported sales fell to $560 million in June from $636 million the previous month. Rough prices were stable and sightholders rejected only lower-quality goods, buyers said. However, De Beers adjusted its assortments resulting in some boxes becoming more expensive. De Beers rough sales jumped 12% year on year to $3.02 billion in the first half of the year, according to Rapaport estimates.

RETAIL & WHOLESALE

U.S. Jewelry Sales Rise in May

U.S. jewelry and watch sales increased 4.2% to an estimated $7.17 billion in May, according to provisional government data for all retail outlets. May was the 13th consecutive month of year-on-year growth. Jewelry sales advanced 4.1% to $6.33 billion, according to Rapaport News estimates. Jewelry and watch sales for the first five months of the year grew 4.7% to an estimated $28.14 billion.

De Beers Opens First Store in Kuwait

De Beers opened its first retail store in Kuwait, adding to its Middle East locations in Dubai and Bahrain. The 145-square-meter outlet in the prestigious ‘Avenues’ shopping mall complements current De Beers stores in London, New York, Paris, Beijing, Shanghai, Hong Kong and Tokyo.

Macy's Pins Hopes on New CEO

Macy’s appointed Jeff Gennette as chief executive officer, replacing Terry Lundgren as part of a succession plan to revitalize the U.S. department store chain. Gennette (pictured) has been president of the company since 2014 and will take over the additional role of CEO in the first quarter of 2017. Lundgren will continue as executive chairman and work side-by-side with Gennette.

MINING

ALROSA Eyes Growth in Diamond Reserves

ALROSA plans to increase its diamond reserves by 50.4 million carats. Growth will be guaranteed by exploration of the Zarya field and follow-up exploration at the Aikhal and Verkhne-Munsoye fields, Konstantin Garanin, ALROSA's head geologist, said in an interview cited by Interfax. The miner's diamond reserves stood at 1.108 billion carats at the beginning of 2016.

Diamcor Sales Surge, Prices Fall

Diamcor Mining reported the average price of its sales declined to $142.40 per carat in the first fiscal quarter from $159 per carat a year earlier. The company sold 13,385 carats for $1.9 million in the three months that ended June 30, which was more than quadruple the amount sold last year. The diamonds are from the miner’s Krone-Endora at Venetia project in South Africa.

Kimberley Completes First Lerala Rough Sale

Kimberley Diamonds sold its first parcel of rough from the Lerala Diamond Mine in Botswana for an average price of $98 per carat. Only gem-quality goods were sold in the online auction, with the rest added to a sale scheduled for September when the miner expects to see better market conditions. Production resumed at Lerala in May after a nine-month upgrade and recommissioning.

Lucapa Seeks Source of Huge Diamonds

Lucapa Diamond Company has started a drilling program to identify the kimberlite source of a series of exceptionally large diamonds it recovered at the Lulo mine in Angola. These include a 404-carat rough gem which fetched $16 million (AUD 22.5 million) in February. The project will test “high-priority” kimberlite targets at the mine and is scheduled to run through the remainder of 2016.

Dominion Contains Fire at Ekati Mine

Dominion Diamond Corporation said a fire broke out at its Ekati mine in Canada’s Northwest Territories on Thursday, prompting all staff to be evacuated from the processing plant. All personnel were accounted for and no injuries were reported. Damage was limited to a small area and did not affect the main structural components of the operation.

GENERAL

AWDC Backs Fischler for Third Term

The Antwerp World Diamond Centre (AWDC) reelected Stéphane Fischler as president for a third two-year term. Fischler (pictured) was voted in by the new AWDC board which was elected earlier this month. Nishit Parikh was named vice-president.

Diamond Bourse of Canada Ushers in New Board

The Diamond Bourse of Canada has reelected David Gavin as president of its new board of directors. It's Gavin's third two-year term. Minesh Shah will serve as vice president.

Law Enforcers Meet on Diamond Trafficking

Crime-catchers from around the world gathered in The Hague this week in what was described as the first global law enforcement forum on the illicit diamond trade. Europol, the European Law Enforcement Agency based in the Dutch capital, hosted the three-day conference to bring together senior law enforcement and customs officials, regulatory bodies, anti-money laundering experts and private sector experts.


ECONWATCH

Diamond Industry Stock Report

Brexit hit global stocks in the immediate aftermath but the FTSE 100 was higher by mid-Thursday GMT. U.K. mining stocks varied greatly in their performance with Petra Diamonds (+9.4%) leading the pack but Gem Diamonds (-8.3%) suffering the steepest slide. Toronto-listed Lucara (-12%) declined on news that its 1,109-carat rough diamond failed to sell at auction. European industry stocks fell, headed by LVMH (-6.1%), while the U.S. and the Far East were mixed.

View the detailed industry stock report

Jun 30 (12:01 GMT) Jun 23 (12:06 GMT) Chng.
$1 = Euro 0.90 0.88 0.02
$1 = Rupee 67.51 67.29 0.22
$1 = Israel Shekel 3.85 3.82 0.02
$1 = Rand 14.81 14.46 0.34
$1 = Canadian Dollar 1.30 1.28 0.02

Precious Metals Chng.
Gold $1,317.28 $1,263.95 $53.33 4.2%
Platinum $1,001.26 $974.75 $26.51 2.7%
Silver $18.38 $17.32 $1.06 6.1%

Stock Indexes Chng.
BSE 26,999.72 27,002.22 -2.50 0.0%
Dow Jones 17,694.68 17,780.83 -86.15 -0.5%
FTSE 6,357.09 6,338.64 18.45 0.3%
Hang Seng 20,794.37 20,868.34 -73.97 -0.4%
S&P 500 2,070.77 2,085.45 -14.68 -0.7%
Yahoo! Jewelry 947.06 956.95 -9.89 -1.0%
_______________
Múdry sa teší objaveniu pravdy, hlupák falošnosti.
Moderátor
Rapaport Weekly Market Comment July 7, 2016


Diamond markets weak as U.S. dealers take vacation. Polished prices softening with June RAPI 1 ct. -0.5%, 0.30 ct. -1.6%, 0.50 ct. -0.4%, 3 ct. -2.4%. Yuan currency cut to 5-year low (6.69/$1) may impact Chinese jewelry imports and tourist spending. Global 2015 rough production -4% to $13.9B, volume +2% to 127.4M cts., average price -6% to $109/ct. Dominion lowers 2016 Ekati production plan -16% to 4.7M cts after $19M fire damage. Petra sells 121.26 ct. Cullinan rough for $6M ($49,480/ct.) to Nemesis International and Golden Yellow Diamonds. U.S. May polished imports +2% to $3.1B, polished exports -1% to $1.4B.


RapNet Data: July 7

Diamonds 1,206,152
Value $7,961,138,543
Carats 1,293,426
Average Discount -29.78%

www.rapnet.com



The RapNet Diamond Index (RAPI™) is the average asking price in hundred $/ct. of the 10 percent best priced diamonds, for each of the top 25 quality round diamonds (D-H, IF-VS2, GIA-graded, RapSpec-A3 and better) offered for sale on RapNet - Rapaport Diamond Trading Network.

Get Current Price List | Subscribe to Rapaport | Join RapNet

RAPAPORT ANNOUNCEMENTS
July 11-13 Mon-Wed
Rapaport Single Stone Auction

Mumbai

View Details
July 12-20 Tue-Wed
Rapaport Melee Auction

New York & Dubai

View Details
July 20-27 Wed-Wed

Rapaport Single Stone Auction

New York & Israel

View Details
July 23-25 Sat-Mon
RJO Buying Show

Booth: 254

Indianapolis, IN

View Details

QUOTE OF THE WEEK
Manual methods of cutting, polishing, manufacturing and designing of gems and jewelry need to be substituted with high-end machines and software.

D.S. Rawat, secretary general of the Associated Chambers of Commerce & Industry of India, calls for better working conditions in the country's gems and jewelry trade.


MARKETS
United States: Market quiet with dealers on vacation and NY Diamond Dealers Club closed from July 1 to 11. Some U.S. buyers in India and Israel looking for bargains during slow period…

Belgium: Sentiment relatively weak. Some improvement since Hong Kong show but polished prices continue to soften. Suppliers trying to hold out until August vacation period…

Israel: Polished trading slow. Dealers uncertain about future raise expectations for bourse initiatives to improve trading. Difficult to compete with Indian suppliers on commercial goods as prices soften and profit margins tighten…

India: Sentiment relatively weak since Hong Kong show. Trading slow during summer months with few foreign buyers in Mumbai. Domestic Indian demand cautious with subdued expectations for IIJS Mumbai show (August 4 to 8)

Hong Kong: Market remains challenging with retailers consolidating on sluggish consumer sentiment and slower tourist traffic. China better than Hong Kong but Chinese buyers cautious as yuan currency weakens to five-year low (6.69/$1)…

Click here for deeper analysis

RAPAPORT STATEMENT

Diamond Prices Slide in June

Polished diamond prices fell in June and sentiment softened after relatively weak Las Vegas and Hong Kong shows. Steady U.S. demand is supporting the market but overall demand is sluggish. Brexit, the U.S. election and continued weakness in China’s luxury sector are fueling uncertainty...

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INDUSTRY

Russia Gains as Global Diamond Output Falls

Global rough diamond production fell 4.2% to $13.88 billion in 2015 recording its first annual decline in three years, Kimberley Process data showed. Output by volume increased 2.1% to 127.4 million carats, while the average price of production dropped 6.2% to $108.96 per carat. Russia extended its lead over Botswana as the world’s largest producer.

ABN AMRO Sees Rough Prices Declining

Rough diamond prices are likely to fall as “fragile” consumer demand for jewelry does not justify higher prices, ABN AMRO said in a report. A surge in rough prices so far this year is not sustainable and may have resulted from traders’ opportunistic behavior, the researchers explained.

Shrenuj Defends Position After Asset Seizure

Shrenuj & Co is seeking legal advice to challenge an order obtained by ICICI Bank to seize its assets and prevent senior management from leaving India. ICICI in May appointed a receiver on Shrenuj Far East Limited, the diamond manufacturer’s Hong Kong subsidiary. The bank then pursued an order to add Shrenuj’s Indian inventory to its control. Shrenuj assured the Bombay Stock Exchnage the situation will not significantly affect the business.

U.S. Polished Imports Rise

U.S. polished diamond imports increased 2.3% year on year to $3.09 billion in May, typically the country's strongest month when goods arrive for the Las Vegas shows. Polished exports declined 1.1% to $1.37 billion, leaving net polished imports 5.1% higher at $1.72 billion. The U.S. net diamond account jumped 11 percent to $1.82 billion for the month.

RETAIL & WHOLESALE

Tanishq Gains in Gold-Buying Season

Titan Company expects its flagship Tanishq brand gained market share during the Akshaya Tritiya weekend in May, traditionally a time for buying gold. Sales grew while some competitors declined as much as 30%, the company said. The brand had a decent June fiscal quarter despite losing 15 trading days due to a nationwide jewelers’ strike. Stricter rules about presenting identity cards when buying jewelry also impacted sales, Titan said.

Birks Group Returns to Profit

Birks Group swung to a profit of $5.4 million in fiscal 2016 versus a loss of $8.6 million the previous year. Comparable store sales advanced 3% even as total revenue fell 5.2% to $285.8 million, weighed by the strengthening of the U.S. dollar against its Canadian counterpart. The performance was driven by new store designs, new collections and marketing campaigns, Birks explained.


MINING

Large Cullinan Diamond Fetches $6M

Petra Diamonds sold a 121.26-carat rough diamond for $6 million in June. A joint venture between Nemesis International and Golden Yellow Diamonds bought the diamond for $49,480 per carat. The diamond was recovered at the Cullinan mine in South Africa.


Dominion Cuts Ekati Forecast, CFO to Leave

Dominion Diamond Corporation lowered its production guidance at the Ekati mine for this fiscal year to 4.7 million carats from 5.6 million carats previously planned. The mine’s processing plant is shutting for three months following a fire with repairs estimated at $19.3 million.

The miner also announced the departure of chief financial officer Ron Cameron, effective July 15. Cara Allaway, currently vice-president group controller, will temporarily fill the role until Dominion finds a permanent replacement.

De Beers Allowed to Flood Snap Lake

De Beers received permission to flood the tunnels of the Snap Lake mine in Canada’s Northwest Territories after suspending operations due to poor market conditions. The company is considering whether to sell, close, re-open or continue suspension at the mine, which it put onto care and maintenance in December. The mine yielded 1.2 million carats in 2015 but hasn't made money since production began in 2008, according to a Reuters report.


Lucapa Weighs Floating on London’s AIM

Lucapa Diamond Company is considering a listing on London's Alternative Investment Market. The move comes after the company said it is expanding its operations and seeking the kimberlite source of large stones recovered at its Lulo alluvial mine in Angola. Lucapa said the UK’s Brexit vote has not impacted investor interest in the possible listing.

Gemfields to Hike Ruby Output

Gemfields has secured $65 million of debt financing which will be used to ramp up ruby production and for general expenses. The loan facilities will enable Gemfields to expand its Montepuez operations in Mozambique to 20 million carats a year after recovering 8.4 million carats in the fiscal year that ended June 30, 2015.

GENERAL

London Bourse 'Well Placed' to Cope With Brexit

The London Diamond Bourse (LDB) said it is in a strong position to cope with Brexit because of its access to a bonded warehouse enabling duty-free trading. However, the dive in the pound’s value – falling to a 31-year low against the dollar this week – makes life harder for London dealers because they buy diamonds in dollars and sell in sterling, said Victoria McKay, LDB’s chief operating officer.

Report Cites Poor Pay in India Gem Trade

India’s gem and jewelry industry is suffering from a labor shortage driven by rock-bottom pay and dangerous working conditions, according to a report by the Associated Chambers of Commerce & Industry of India and the Thought Arbitrage Research Institute. Salaries in India’s gem and jewelry sector are half of those in other industries as they stand at an average of $3,740 (INR 252,000) per year versus $7,550 in pharmaceuticals, $7,330 in capital goods and $6,574 in electronics, the report said.

Trump Ring Fetches $300K at Auction

A Harry Winston engagement ring given by Donald Trump to Marla Maples in 1991 sold for $300,000, or $40,268 per carat, at an auction in New York. The emerald-cut, 7.45-carat diamond ring went to an unnamed private collector. The selling price was at the low end of the pre-sale estimate set by Joseph DuMouchelle, the Birmingham, Michigan-based auction house that sold .

ECONWATCH

Diamond Industry Stock Report

Birks Group (+574%) skyrocketed from a relatively low base after reporting positive results. U.S. retail stocks were otherwise generally stable. In the Far East, Chow Sang Sang (+11%) and Luk Fook (+14%) jumped. Peregrine Diamonds (+15%) was the strongest of the mining stocks after promising findings from an assessment at its Chidliak Diamond Project in Canada.

View the detailed industry stock report

Jul 7 (13:01 GMT) Jun 30 (12:01 GMT) Chng.
$1 = Euro 0.90 0.90 0.00
$1 = Rupee 67.39 67.51 -0.12
$1 = Israel Shekel 3.88 3.85 0.03
$1 = Rand 14.65 14.81 -0.15
$1 = Canadian Dollar 1.29 1.30 0.00

Precious Metals Chng.
Gold $1,361.70 $1,317.28 $44.42 3.4%
Platinum $1,087.50 $1,001.26 $86.24 8.6%
Silver $19.92 $18.38 $1.54 8.4%

Stock Indexes Chng.
BSE 27,201.49 26,999.72 201.77 0.7%
Dow Jones 17,918.62 17,694.68 223.94 1.3%
FTSE 6,552.62 6,357.09 195.53 3.1%
Hang Seng 20,706.92 20,794.37 -87.45 -0.4%
S&P 500 2,099.73 2,070.77 28.96 1.4%
Yahoo! Jewelry 940.97 947.06 -6.09 -0.6%
_______________
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Moderátor
Rapaport Weekly Market Comment July 14, 2016


Market seasonally quiet. Prices stable but financial pressure mounting as polished inventory grows. Inventory levels increased significantly in 1H amid aggressive rough buying and sluggish polished demand. Profit margins and liquidity tightening as activity slowed in July. Share placement values ALROSA at $7.5B as government reportedly sells 10.9% stake for $818M. Okavango 1H rough sales +23% to $284M, volume +35% to 1.75M cts., average price -9% to $162/ct. Petra, Ekapa merge Kimberley mining operations. Belgium June polished exports -17% to $1.2B, rough imports -11% to $945M. Chow Tai Fook 1Q China sales -13%, HK / Macau sales -22%.


RapNet Data: July 14

Diamonds 1,226,470
Value $7,967,552,000
Carats 1,311,985
Average Discount -30.19%

www.rapnet.com

The RapNet Diamond Index (RAPI™) is the average asking price in hundred $/ct. of the 10 percent best priced diamonds, for each of the top 25 quality round diamonds (D-H, IF-VS2, GIA-graded, RapSpec-A3 and better) offered for sale on RapNet - Rapaport Diamond Trading Network.

Get Current Price List | Subscribe to Rapaport | Join RapNet

RAPAPORT ANNOUNCEMENTS
July 12-20 Tue-Wed
Rapaport Melee Auction

New York & Dubai

View Details July 20-27 Wed-Wed
Rapaport Single Stone Auction

New York & Israel

View Details July 23-25 Sat-Mon
RJO Buying Show

Booth: 254 Indianapolis, IN View Details

August 4-8 Thu-Mon IIJS Booth #AL026-032

Mumbai

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QUOTE OF THE WEEK
The only way forward for diamond companies to attract affordable funding — given the current slim margins — is that companies acting in the so-called midstream become more corporate.

Pierre De Bosscher, director of De Bosscher Consulting, and former CEO of the Antwerp Diamond Bank (ADB)

MARKETS

United States: Trading quiet with many dealers still on vacation. Activity expected to remain slow through July / August summer period. Steady demand for better-quality, RapSpec A2 diamonds…

Belgium: Sentiment weak as dealers anticipate slow trading throughout 2H. Suppliers preparing for vacation before bourses officially close from August 1 to 22…

Israel: Polished trading slow ahead of August summer vacation. U.S. demand stable with some post-Vegas orders and goods sent on memo…

India: Manufacturer inventory rising as dealers avoid extra supply. Liquidity tight after strong rough buying in 1H. Some polished suppliers offering higher discounts looking to boost transactions and improve cash flow…

Hong Kong: Polished trading weak on slower consumer jewelry demand across Greater China. Major retailers consolidating stores after aggressive decade-long expansion…


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FIVE-MINUTE INTERVIEW

Stuller Hedging its Bet on Synthetics

Rapaport News caught up with Stanley Zale, vice-president of diamonds and gemstones at Stuller, to discuss some of the bold moves Stuller has made this year and the group’s perspective on the retail jewelry market.

Click here to read the interview

INDUSTRY

Sarine Sees Market Turnaround

Sarine Technologies, a supplier of equipment used in diamond manufacturing, expects second-quarter revenue to jump as improved market sentiment boosted sales of its mapping systems. Sales increased to more than $20 million in the second quarter that ended June 30, implying a surge of at least 39% over a year ago. The company expects to report higher profit when it releases full results for the period in the coming month.

Okavango 1H Rough Sales Soar

Okavango Diamond Company’s sales jumped 23% to $284 million in the first half after the volume of rough supplied grew 35% to 1.75 million carats – its highest level since sales began in late 2013. The average price achieved across its auctions fell 9% to $162 per carat during the period. The Botswana parastatal said rough prices recovered in the first quarter but eased back since then as demand has softened.


Belgium Diamond Trade Slumps in June

Belgium’s diamond trade declined in June with polished exports down 17% to $1.15 billion and polished imports declining 12% to $1.22 billion. Rough imports fell 11% to $945.3 million and rough exports slid 16% to $959.8 million, reversing a surge in May. Belgium’s June net diamond account swung to negative $64.4 million versus positive $62.7 million a year earlier, meaning total imports of rough and polished exceeded exports during the month.

Rio Tinto Unveils Red Diamond Coin

Rio Tinto unveiled the first coin that features a rare red diamond from its Argyle mine in Western Australia. Known as the Kimberley Treasure, the coin has a price tag of $762,280 (AUD 1 million) and is being touted by the miner as an investment piece. The coin is made from one kilogram of 99.99% fine gold and features a radiant-cut, 0.54-carat red diamond from the Argyle mine.


RETAIL & WHOLESALE

Chow Tai Fook Revenue Falls

Chow Tai Fook’s sales continued to decline in the first fiscal quarter that ended June 30 due to weak consumer sentiment in Hong Kong and Macau and a drop in tourist arrivals from Mainland China. In Hong Kong and Macau, retail revenue plunged 22% and same-store sales slid 20%. The group’s retail sales in Mainland China fell 13% and same-store sales slumped 17%.

Famed Jeweler Tivol Dies at 92

Legendary jewelry retailer Harold Tivol, chairman of Kansas City-based Tivol, died aged 92, The Kansas City Star reported. Born in Kansas City, Tivol started his career working in his father Charles Tivol's store and later took over the reins. He oversaw the company’s growth and received prestigious accolades including the American Gem Society’s Triple Zero award.

MINING

ALROSA Share Sale Raises $818M

Russia raised approximately $818 million (RUB 52.2 billion) from its sale of a 10.9% stake in ALROSA, The Wall Street Journal reported. The government priced the shares at RUB 65 each, a discount of 3.8% to the closing price at the time of the sale. The Russian Direct Investment Fund, Russia’s sovereign wealth fund, and its co-investors bought about half of the shares on offer, the report said.

Petra, Ekapa Combine Kimberley Operations

Petra Diamonds and Ekapa Mining agreed to merge their operations in South Africa's Kimberley region in a bid to extend mining in the historic diamond-mining area. As part of the deal, Petra’s Kimberley Underground mines, Ekapa’s tailings operations, the Kimberley Miners Forum and the Kimberley Mines tailings operations have been combined. The venture is 75.9% owned by Petra and its Black Economic Empowerment partners with the remaining 24.1% held by Ekapa Mining.

Stornoway Raises $63M Ahead of Renard Production

Stornoway Diamond Corporation raised $63.3 million (CAD 82.7 million) after shareholders exercised their rights to purchase warrants before they expired on July 8. The funds will be used to complete construction of the Renard mine where ore processing is scheduled to start in September and commercial production is projected for December. The Ottawa-located mine has probable reserves of 22.3 million carats and a 14-year projected lifespan.

Rockwell Back in the Black After Restructuring

Rockwell Diamonds swung to a profit of $438,000 (CAD 570,000) in its first fiscal quarter from a loss of $4 million (CAD 5.2 million) a year earlier. The improvement followed a strategic review that saw the company sell its Angola operation and place one of its South Africa mines on care and maintenance. Rough diamond sales surged 46% to $9.3 million (CAD 12.1 million) and costs were cut by 25%. Rockwell expects rough prices to remain stable but trading to slow during the ongoing “historically quiet” second fiscal quarter.


Record Angola Diamond Lifts Lucapa Sales

Lucapa Diamond Company‘s revenue spiked to $26.2 million versus $2.9 million a year earlier having sold a 404-carat diamond recovered at the Lulo mine in Angola for $16 million (AUD 22.5 million). The average price of the company’s total sales soared to $5,686 per carat during the period, compared with $976 per carat a year ago. Excluding the 404-carat stone, the average price achieved was $2,421 per carat.


ALROSA’s Nyurba Unit Unearths 214-Ct. Diamond

ALROSA recovered a 214.65-carat diamond from Nyurbinskoye placer deposit, the second such special stone found in the area in the past two months. The company said the diamond measures 42.11mm x 34.26mm x 16.07mm, is translucent with a grey hue and classified it as a 4 black clivage/makeable grey rough diamond. The Nyurbinskoye placer deposit is located near the Nyurbinskaya mine, where ALROSA found a 241-carat diamond with similar characteristics in June.

GENERAL

De Beers Launches Beneficiation Program

De Beers has partnered with the South African government and the country’s diamond-cutting industry to launch the ‘Enterprise Development Project for Diamond Beneficiators’ project. The company will supply rough to five historically disadvantaged South African diamond cutters and help them develop to possibly become De Beers accredited buyers and eventually sightholders.

JCK Show to Move Back to The Venetian in 2019

The JCK and Luxury shows in Las Vegas will return to the Sands Expo and Convention Center in 2019. The shows were until 2010 located at the Sands, which is part of The Venetian and The Palazzo resorts, but were moved to the Manadalay Bay hotel complex. The shows, which typically take place in early June, will remain at Mandalay Bay for the next two years.

Antwerp Fair Opens Doors to Foreign Exhibitors

Belgium’s diamond industry is inviting overseas companies for the first time to participate in the Antwerp Diamond Trade Fair. The eighth edition of ‘BrilliAnt’ will take place from January 29 to 31 at the Antwerp Diamond Kring’s trading hall. Organizers will consider applications on a first-come, first-served basis and will only accept companies which are members of a bourse affiliated with the World Federation of Diamond Bourses.

Israel Changes Format for Diamond Week

The next edition of the International Diamond Week in Israel will see a new format, with the Israel Diamond Exchange (IDE) aiming to attract people from a wider range of bourses around the world. Trading will take place on the floor of the bourse in Ramat Gan from Monday, February 13, to Wednesday, February 15, while the final day on Thursday, February 16, will be left open for individual meetings, free tours and other activities organized by the

ECONWATCH

Diamond Industry Stock Report

Jewelry retailers led the increases as most stock indices tracked by Rapaport News climbed this week. Signet (+8.2%) recovered some lost ground after its share price plunged in the previous two months as did Tiffany (+4.6%). The major Hong Kong retailers made similar gains despite Chow Tai Fook (+5.8%) reporting a continued slide in its sales during its first fiscal quarter.

View the detailed industry stock report

Jul 14 (13:01 GMT) Jul 7 (13:01 GMT) Chng.
$1 = Euro 0.90 0.90 0.00
$1 = Rupee 66.87 67.39 -0.52
$1 = Israel Shekel 3.85 3.88 -0.03
$1 = Rand 14.25 14.65 -0.41
$1 = Canadian Dollar 1.29 1.29 0.00

Precious Metals Chng.
Gold $1,321.75 $1,361.70 -$39.95 -2.9%
Platinum $1,085.55 $1,087.50 -$1.95 -0.2%
Silver $20.08 $19.92 $0.16 0.8%

Stock Indexes Chng.
BSE 27,942.11 27,201.49 740.62 2.7%
Dow Jones 18,372.12 17,918.62 453.50 2.5%
FTSE 6,699.81 6,552.62 147.19 2.2%
Hang Seng 21,561.06 20,706.92 854.14 4.1%
S&P 500 2,152.43 2,099.73 52.70 2.5%
Yahoo! Jewelry 969.25 940.97 28.28 3.0%
_______________
Múdry sa teší objaveniu pravdy, hlupák falošnosti.
Moderátor
Rapaport Weekly Market Comment July 21, 2016


Markets weak during summer trading lull. Dealers frustrated by sluggish demand, rising inventory and tight profit. Rough market quiet with lower premiums during ALROSA sale. De Beers 1H production -15% to 13.3M cts., sales +29% to 17.2M cts., prices -14% to $177/ct. ALROSA 1H production -16% to 16.9M cts., sales +21% to 21.7M cts., prices -3% to $117/ct. Rio Tinto 1H production +2% to 8.96M cts. Letšeng 1H sales flat at $106M, average price -16% to $1,899/ct.Israel 1H polished exports -14% to $2.6B. Chow Sang Sang warns 1H profit -50%/-60%. Luk Fook 1Q same-store sales -22%. Morgan Stanley predicts lab-grown diamonds to capture 15% of melee market, melee prices under pressure.


RapNet Data: July 21

Diamonds 1,222,805
Value $7,963,113,027
Carats 1,315,873
Average Discount -30.04%

www.rapnet.com

The RapNet Diamond Index (RAPI™) is the average asking price in hundred $/ct. of the 10 percent best priced diamonds, for each of the top 25 quality round diamonds (D-H, IF-VS2, GIA-graded, RapSpec-A3 and better) offered for sale on RapNet - Rapaport Diamond Trading Network.

Get Current Price List | Subscribe to Rapaport | Join RapNet

RAPAPORT ANNOUNCEMENTS

July 20-27 Wed-Wed

Rapaport Single Stone Auction

New York & Israel

View Details July 23-25


QUOTE OF THE WEEK
Improved technology and economics, and potentially more receptive consumers have propelled lab grown diamonds into a serious potential disruptor of a jewelry category that has existed for more than a century. Diamond miners can contain the threat, but it could be costly.

Morgan Stanley analysts on publication of a research note ‘Game of Stones’ about the potential impact of lab-grown diamonds.


MARKETS

United States: Trading quiet after dealers returned from vacation. Tough to sell goods that are not typical, commercial-quality diamonds for engagement ring market…

Belgium: Polished market slow. Dealers buying only what they need before vacation begins (August 1 to 22)…

Israel: Sentiment weak with July trading slower than usual. Some suppliers discounting to improve turnover and increase liquidity…

India: Some U.S. and Chinese buyers in Mumbai looking for bargains but trading slow and sentiment weak. Quiet market expected through August…

Hong Kong: Dealer market quiet but stable during seasonally slow period. Jewelers only buying for specific customer demand and not for inventory as retail sales contract…


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INDUSTRY

De Beers Sales Volume Soars

De Beers sales volume surged 29% from a year ago to 17.2 million carats in the first half as diamond manufacturers restocked inventory that had depleted toward the end of 2015. Average realized prices dropped 14% to $177 per carat, while De Beers price index declined 8% since January. De Beers has scaled back its mining operations in the weak market conditions, resulting in production declining 15% to 13.314 million carats in the first six months of 2016.


ALROSA’s Second-Quarter Sales Buoyant

ALROSA’s rough diamond sales climbed to at least $1.2 billion in the second quarter, up 19% from a year earlier. Sales volume jumped 7% to 9.6 million carats, while the average price advanced 12% to $127 per carat. Brokers noted demand slowed at this week’s July sale as the market has started to cool. ALROSA revised down its production plan for 2016 to 37 million carats, from 39 million carats. Output dropped 6% to 16.9 million carats in the first half.

India’s Rough Trade Slows in June

India’s rough imports plunged 20% to $1.2 billion in June after De Beers reported lower demand reflected typical seasonal patterns during the month. Rough exports surged 27% to $130 million. Polished exports from the world’s largest diamond manufacturing center were flat at $1.85 billion, while polished imports rose 5% to $252 million. India’s net diamond account more than doubled to $519 million, representing the added value of the diamond trade.

Israel’s Diamond Trade Slides amid Weak Sentiment

Israel’s polished diamond exports fell 14% to $2.61 billion in June as shipments dropped to the U.S. and Hong Kong, its two largest markets. Polished imports slid 10% to $1.62 billion. Rough imports were flat at $1.63 billion, while rough exports increased 2% to $1.39 billion. Israel’s net diamond account declined 23% to $756 million. Dealers noted a tough trading environment this year as global demand continues to decline and Israel struggles to maintain its place in the market.

RETAIL & WHOLESALE

Chow Sang Sang Issues Profit Warning

Chow Sang Sang warned profit is expected to plunge 50% to 60% for the first half of 2016 as consumer sentiment in China and Hong Kong weakened. The jeweler attributed the slump to a decline in sales turnover and unrealized losses from its gold hedging activities. The drop in net income would be higher had it not been for a one-off gain of $31.7 million (HKD 246 million) from a disposal of shares in Hong Kong Exchanges and Clearing Limited in 2015.

Luk Fook Extends Quarterly Revenue Declines

Luk Fook Holdings same-store sales at self-operated locations dropped 24% over the three months that ended March 31. The performance was weighed down by a 26% drop in gold sales and a 19% slide in gem-set jewelry from a year ago. The company noted sluggish retail sentiment in Hong Kong and Macau and a steeper drop in Mainland China, where gem-set jewelry products “started to decline.”

Swatch having a Tough Time

Swatch Group net income slumped 52 percent to $266.5 million (CHF 263 million) due to continued global economic volatility and the impact of an “overvalued” Swiss franc. Sales fell 11% to $3.77 billion (CHF 3.72 billion) weighed by its wholesale division. Positive sales in Southeast Asia and the Middle East could not compensate for weakness in Hong Kong and Europe. Swatch singled out the Harry Winston brand after the high-end jeweler posted a strong half-year and record month in June.


Higher Prices Drive U.S. Jewelry Sales Growth

U.S. specialty jewelry store sales grew 2% to $2.79 billion in May as jewelry prices also rose, according to government data. The increase is in line with the uptrend seen in 2016 as sales at specialty jewelers climbed 2.1% to $11.62 billion during the first five months. Jewelry prices, as measured by the consumer price index (CPI), advanced 7% in June from a year earlier. The CPI for jewelry retreated 0.4% month to month in June, after increasing 3.3% in May.

India’s Bluestone Raises $30M to Fund Expansion

Bluestone closed a $30 million (INR 2 billion) round of fundraising to strengthen its position in India’s online jewelry market. The funds will be used to expand the company’s design and manufacturing capacity, and for marketing initiatives. India’s jewelry market is expected to grow from $60 billion currently to $110 billion in the next five years, with online sales projected at $2 billion to $3 billion, according to Bluestone. The company is targeting a four-fold increase in revenue to $149 million (INR 10 billion) by 2018.

MINING

Rio Tinto Cuts Full-Year Rough Output Guidance

Rio Tinto lowered its diamond production forecast for this year following a restructuring that saw the group merge its diamonds and copper businesses. The company now expects to recover between 18 and 21 million carats, which is still above last year’s 17.4 million carats. The group’s diamond production advanced 2% to 8.959 million carats in the first half with output at its Argyle mine up 4% due to a ramp up of underground operations. Production at the Diavik mine fell 5%.

Letšeng Average Prices Slide

Average prices at the Letšeng mine in Lesotho dropped 16% to $1,899 per carat in the first half due to a shift in mining to lower-value but higher-grade areas. Mine operator Gem Diamonds said fewer large diamonds – above 100 carats – were recovered during the period. Letšeng’s revenue was flat at $106.3 million with the volume of sales increasing 19% to 55,959 carats during the six months.


Stornoway Launches Ore Processing at Renard Mine

Stornoway Diamond Corporation started processing ore at its flagship Renard mine, signaling the first diamond production in Canada’s Quebec province. Commercial production will be achieved once processing has been maintained for 30 days at 60% of the plant’s capacity. The mine is expected to reach full capacity within nine months and subsequently produce 1.8 million carats per annum in the first 10 years, at an average valuation of $155 per carat.

Firestone Diamonds Plans First Sale

Firestone Diamonds expects to host its first sale of rough in January as construction at the Liqhobong mine in Lesotho continues ahead of schedule. Development of the mine was 85% complete at the end of June and production is expected to come on stream in the fourth quarter. The mine will take at least six months to reach full capacity of 1 million carats per year and is expected to yield between 380,000 and 450,000 carats in the fiscal year ending June 30.


GENERAL

Lab Grown Diamonds Pose Threat to Melee Prices

Lab-grown diamonds will probably develop into a niche that could take a 15% share of the melee diamond market, according to research by Morgan Stanley. That would impact prices and may result in the mined melee market dropping 12% in value, the analysts said. The research foresees lab-grown diamonds taking a 7.5% share of the larger-gems space but without impacting prices. Morgan Stanley urged ALROSA and De Beers to each invest at least $200 million a year in marketing to combat the threat.

Tiara Gems Buys Million-Dollar Kimberley Treasure

Rio Tinto sold its ‘Kimberley Treasure’ gold and diamond coin to Dubai-based Tiara Gems and Jewellery, a specialist in rare fancy color diamonds and collectibles. The coin, which is made up of one kilogram of 99.99% fine gold and includes a radiant cut, 0.54-carat red diamond from the Argyle mine, was snapped up within 48 hours of becoming available for sale. Rio Tinto did not disclose the actual sale price, but previously put a $762,280 (AUD 1 million) price tag on the piece.


London's Jewelry District to get $3M Makeover

Hatton Garden business owners approved a $3.3 million (GBP 2.5 million) investment to carry out improvements in London’s famed jewelry district. A Business Improvement District (BID) will be set up in October to carry out the upgrade over the next four-and-a-half years. The development will focus on providing better business connections and representation for the business community, promoting the area, improving the public facilities, and enhancing the environment.

ECONWATCH

Diamond Industry Stock Report

While most of the major indices rose, diamond and jewelry companies had a mixed week on the stock markets. Gains were led by Firestone Diamonds (+19.3%) and Stornoway Diamonds (+17.5%), as both are nearing first production at their respective mine developments. Retailers had a tougher time with Chow Sang Sang (-8.7%) and Luk Fook (-5.1) noting continued sales declines in 2016 reflecting a weak consumer environment in Hong Kong. Swatch Group (-5.8%) noted similar trends as its profit plunged in the first half.

View the detailed industry stock report

July 21 (13:01 GMT) Jul 14 (13:01 GMT) Chng.
$1 = Euro 0.91 0.90 0.01
$1 = Rupee 67.18 66.87 0.31
$1 = Israel Shekel 3.85 3.85 0.00
$1 = Rand 14.29 14.25 0.04
$1 = Canadian Dollar 1.31 1.29 0.01

Precious Metals Chng.
Gold $1,319.28 $1,321.75 -$2.47 -0.2%
Platinum $1,082.50 $1,085.55 -$3.05 -0.3%
Silver $19.35 $20.08 -$0.73 -3.6%

Stock Indexes Chng.
BSE 27,710.52 27,942.11 -231.59 -0.8%
Dow Jones 18,595.03 18,372.12 222.91 1.2%
FTSE 6,701.39 6,699.81 1.58 0.0%
Hang Seng 22,000.49 21,561.06 439.43 2.0%
S&P 500 2,173.02 2,152.43 20.59 1.0%
Yahoo! Jewelry 998.19 969.25 28.94 3.0%
_______________
Múdry sa teší objaveniu pravdy, hlupák falošnosti.
Moderátor
Rapaport Weekly Market Comment July 28, 2016


NY jewelry shows quiet. Better goods stable but market sentiment weak. Dealers cautious ahead of summer vacations in Belgium and Israel. Low expectations for next week’s Mumbai show as gold jewelry sales decline after price surge (+28% in Rupee for 2016). De Beers 1H revenue +8% to $3.3B, underlying earnings +5% to $379M. Petra FY sales +1% to $431M. LVMH 1H jewelry & watch sales +4% to $1.8B. U.S. government guarantees Barclays Bank $125M loan facility for Botswana manufacturing. Chow Tai Fook plans to supply diamonds to U.S. retailers as China jewelry sales slow. Rapaport to offer guaranteed 100% natural, untreated, melee diamonds for sale at August 9-18 auction.

RapNet Data: July 28

Diamonds 1,230,307
Value $7,987,674,845
Carats 1,316,444
Average Discount -30.20%

www.rapnet.com



The RapNet Diamond Index (RAPI™) is the average asking price in hundred $/ct. of the 10 percent best priced diamonds, for each of the top 25 quality round diamonds (D-H, IF-VS2, GIA-graded, RapSpec-A3 and better) offered for sale on RapNet - Rapaport Diamond Trading Network.

Get Current Price List | Subscribe to Rapaport | Join RapNet

RAPAPORT ANNOUNCEMENTS

August 4-8 Thu-Mon
IIJS

Booth: AL026-032

Mumbai

View Details
August 9-18 Tue-Thu
Rapaport Melee Auction

New York & Dubai

View Details
August 24-31 Wed-Wed
Rapaport Single Stone Auction

New York & Israel

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September 6-15 Tue-Thu
Rapaport Melee Auction

New York & Hong Kong View Details

QUOTE OF THE WEEK
In the midstream, caution in rough diamond buying is expected to prevail, as the supplies bought by diamantaires in the first half of 2016 are gradually converted into polished.

Anglo American, the parent company of De Beers, on the outlook for the diamond industry in the second half of 2016

MARKETS

United States: Focus on NY Jewelry week but activity slow. JA, Luxury and Antique shows more about networking than trading. Jewelers trying to differentiate themselves to profit in weak…

Belgium: Polished trading relatively busy with suppliers closing deals before three week vacation (August 1 to 22). Dealers happy to take a break as global trading expected to slow until September…

Israel: Polished trading quiet due to summer slowdown and sluggish global demand. Dealers preparing for vacation with Israel Diamond Exchange to close August 15 to 28…

India: Polished trading slow. Buyers selective and uncertain about prices. Few foreign buyers in Mumbai as U.S., Israel and Belgium seasonally quiet…

Hong Kong: Dealer sentiment mixed with some noting slight improvement this week. Chinese demand stable. Hong Kong retail sluggish…


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ANNOUNCEMENT

Rapaport to offer 100% guaranteed natural, untreated, melee diamonds for sale at August 9-18 auction

"Melee diamond markets are under pressure due to the unethical behavior of dealers who mix synthetic diamonds into parcels of natural diamonds. It is vital that we create legitimate markets for natural diamonds by statistically sample testing melee parcels and, where possible and practical, testing all diamonds in a parcel to ensure that buyers have an opportunity to source 100% guaranteed natural untreated diamonds.

"Rapaport Auctions will be providing thousands of carats of sample tested melee (99% tolerance and 1% significance levels) as well as select parcels of 100% tested melee at our upcoming August 9-18 melee auctions. The diamond trade must protect the promise of diamonds and the integrity of its people by separating natural diamonds from synthetics," said Ezriel Rapaport, Director of Rapaport Global Trading.


INDUSTRY

U.S. Backs Funding for Botswana Diamond Trade

The U.S. government’s Overseas Private Investment Corporation (OPIC) guaranteed a $125 million loan to Botswana’s diamond manufacturing sector. Barclays Bank of Botswana will provide the loan, which is the first tranche of a broader $250 million OPIC loan-guarantee program for Botswana’s diamond industry. Additional lenders may join the program in the future.

Botswana Beneficiation Still Viable, Says Minister

Diamond beneficiation is still a viable project in Botswana despite lower supply to the country’s manufacturers, Kitso Mokaila, the Minister of Minerals, Energy and Water Resources, told parliament. The number of diamond factories operating in Botswana has fallen to 19 factories employing just 2,000 people as market conditions weakened, Mmegi cited Mokaila as saying. Rough supply to local manufacturers slumped 46% to $502.2 million in 2015 but sales were “off to a good start” this year fetching $343 million in the first four sales, according to Mokaila.

Fischler Elected VP of World Diamond Council

The World Diamond Council (WDC) named Stephane Fischler as its vice-president (VP) to succeed Andrey Polyakov as president in 2018. Fischler (pictured), a partner in Fischler Diamonds and president of the Antwerp World Diamond Centre, is also VP of the International Diamond Council and the Diamond Development Initiative. Ronnie Vanderlinden was reelected treasurer of the WDC for a second term, while Udi Sheintal will remain its corporate secretary.

Jewelers of America Enlists New Directors

Jewelers of America (JA) elected Mike Alexander, a vice-president at Jewelers Mutual Insurance Company (pictured, right), and Ronda Daily, CEO of Bremer Jewelry (left), as board members until 2019. The new directors were voted in at JA’s semi-annual board meeting in New York on July 23, replacing outgoing directors Brian Mann of David Mann, Inc, and Teresa Saldivar of Teresa’s Jewelers.

RETAIL & WHOLESALE

Chow Tai Fook Targets U.S. Diamond Sales

Chow Tai Fook is looking to supply rough and polished diamonds to U.S. retailers as the jeweler seeks new revenue streams following a sales slump in China and Hong Kong. The jeweler plans to start the enterprise within a year and has set up a team to conduct feasibility studies.

Bulgari Lifts LVMH Jewelry Sales

Jewelry and watch sales at LVMH Moët Hennessy Louis Vuitton increased 4% to $1.77 billion in the first half of 2016. The business unit’s profit from recurring operations was flat at $225.3 million. Growth was driven by the Bulgari brand which “outperformed” the market, while TAG Heuer was also singled out as it gained market share in part due to the success of its 'Connected' smartwatch.


Swiss Watch Exports Continue to Slide

Swiss watch exports fell 16% to $1.66 billion (CHF 1.64 billion) in June, the steepest drop this year. Shipments of precious-metal watches dropped 31% to $497.5 million with all other major categories suffering a decline. Orders from Hong Kong, Switzerland’s largest trade partner for watches, fell 29% to $187.9 million, the 17th consecutive month of decline. The worst-performing price category was the $203 (CHF 200) to $506 (CHF 500) range where exports slid 20%.


India Eases Rules on Controversial Excise Tax

The Indian government relaxed its rules regarding a 1-percent excise duty on jewelry that led to a six-week strike earlier this year. Under the new terms, businesses with revenue of up to $2.2 million (INR 150 million) are exempt from the tax, whereas the previous cut-off was $1.8 million (INR 120 million). The change comes after the government set up a committee to interact with the jewelry trade over the tax.


MINING

De Beers Earnings Rise

De Beers reported revenue grew 8% to $3.27 billion and underlying earnings rose 5% to $379 million in the first half of 2016. The miner benefited from stronger rough diamond demand, tighter cost controls and favorable exchange rates. Rough sales jumped 11% to $3.1 billion, spurred by a 29% leap in sales volume which outweighed a 14% drop in average prices. Rough demand improved as manufacturers and dealers replenished inventories that were reduced in the second half of last year, the company said

Snap Lake Mine up for Sale

De Beers is looking to sell the Snap Lake mine in Canada after suspending operations in December. The company has hired Bank of Montreal to market the asset which has failed to make money since production started in 2008, according to Reuters. In June, De Beers received approval to flood the mine’s tunnels, which would reduce its maintenance costs. The flooding will likely occur in the fourth quarter if no buyer is found.


Petra Sales Rise Despite Depressed Prices

Petra Diamonds revenue climbed 1.4% to $430.9 million in the fiscal year that ended June 30 as increased sales volume outweighed a drop in rough prices. Diamond sales by weight jumped 9% to 3.4 million carats and prices fell 6% during the year. Production jumped 16% to 3.7 million carats, above the company’s upper guidance of 3.65 million carats. Petra expects production to rise to between 4.6 million and 4.8 million carats in fiscal 2017.

Diamcor Earnings Fall Deeper Into the Red

Diamcor Mining reported its net loss plummeted 80% to $4.3 million (CAD 5.6 million) in the fiscal year ending March 31. Sales jumped 52% to $3.5 million (CAD 4.7 million) as plant efficiencies and processing volumes improved. However, operating expenses rose 53% to $3.7 million as it ramped up operations at the Krone-Endora at Venetia project in South Africa.


GENERAL

Sarine Pens Deal with Singapore Retailer

Sarine Technologies struck a deal with Soo Kee Group to provide its digital diamond display equipment at the Singapore-based jeweler’s Love & Co. stores. The ‘Sarine Profile’ technology will be implemented in the LVC Lovemark diamond collection at Love & Co. stores in Singapore and Malaysia, marking the product's first roll out in Asia. The equipment enables jewelers to integrate Sarine’s digital platform to its inventory and communications systems.

RJC, Miners Advance Work on Responsible Jewelry

The Responsible Jewellery Council (RJC) and the Alliance for Responsible Mining (ARM) renewed an agreement to strengthen their collaboration in promoting and facilitating responsible jewelry supply chains. The two organizations said they share objectives to promote responsible precious-metals supply chains and will continue cooperating to ensure their standards and assurance models are “mutually supportive.” They also aligned aspects of their assurance systems.


Pippa Middleton Ring Spurs Asscher Cut Craze

Asscher-cut diamonds have soared in popularity since Pippa Middleton received an engagement ring with the fancy shape, according to 77 Diamonds. Middleton, the Duchess of Cambridge’s younger sister (pictured), got engaged to hedge fund manager James Matthews last weekend. Matthews proposed with an Asscher-cut diamond thought to weigh about 4 carats.

ECONWATCH

Diamond Industry Stock Report

U.K.-listed miners had a strong week, led by Stellar Diamonds (+35%), which gained from a low base on news of joint ventures in Guinea and Liberia. Anglo American (+6.3%) rose as the miner reported a narrower loss and lower net debt. Mining stocks elsewhere were mixed, with declines headed by True North Gems (-6.3%). LVMH (+8.2%) led European luxury retail stocks following solid results.

View the detailed industry stock report

July 28 (11:36 GMT) July 21 (13:01 GMT) Chng.
$1 = Euro 0.90 0.91 -0.01
$1 = Rupee 67.04 67.18 -0.14
$1 = Israel Shekel 3.82 3.85 -0.03
$1 = Rand 14.26 14.29 -0.03
$1 = Canadian Dollar 1.32 1.31 0.01

Precious Metals Chng.
Gold $1,341.95 $1,319.28 $22.67 1.7%
Platinum $1,145.69 $1,082.50 $63.19 5.8%
Silver $20.37 $19.35 $1.02 5.3%

Stock Indexes Chng.
BSE 28,208.62 27,710.52 498.10 1.8%
Dow Jones 18,472.17 18,595.03 -122.86 -0.7%
FTSE 6,736.61 6,701.39 35.22 0.5%
Hang Seng 22,174.34 22,000.49 173.85 0.8%
S&P 500 2,166.58 2,173.02 -6.44 -0.3%
Yahoo! Jewelry 1,020.52 998.19 22.33 2.2%
_______________
Múdry sa teší objaveniu pravdy, hlupák falošnosti.
Moderátor
Rapaport Weekly Market Comment August 11, 2016


India IIJS show better than expected for gold jewelry but weak for diamonds. Manufacturing profit under pressure with relatively high rough prices and sluggish polished demand. Rising expectations for Hong Kong show. U.S. supporting the market but large retailers dominating demand and squeezing suppliers. U.S. independent jewelers exiting with 460 business closures (+88%) in 2Q. Blue Nile 2Q sales flat at $114M, profit -9% to $2M. Lucara 2Q revenue +169% to $141M, profit +436% to $46M after selling 813 ct. rough for $63M ($77K/ct.). Sarine 2Q revenue +45% to $21M, profit +122% to $6M. U.S. June polished imports flat at $1.7B. Hong Kong 1H polished imports -9% to $8.5B.


RapNet Data: August 11

Diamonds 1,241,001
Value $7,912,102,824
Carats 1,333,486
Average Discount -30.26%

www.rapnet.com



The RapNet Diamond Index (RAPI™) is the average asking price in hundred $/ct. of the 10 percent best priced diamonds, for each of the top 25 quality round diamonds (D-H, IF-VS2, GIA-graded, RapSpec-A3 and better) offered for sale on RapNet - Rapaport Diamond Trading Network.




Get Current Price List | Subscribe to Rapaport | Join RapNet



RAPAPORT ANNOUNCEMENTS


August
9-18
Tue-Thu


Rapaport Quarterly Pawnshop Auction

New York & Dubai

View Details



August
9-18
Tue-Thu


Rapaport Monthly Melee Auction

New York & Dubai

View Details



August
24-31
Wed-Wed


Rapaport Single Stone Auction

New York & Israel

View Details



September
13-17
Tue-Sat


Hong Kong Jewellery & Gem Fair

Booth: AWE 7N33

Hong Kong

View Details

QUOTE OF THE WEEK
In many ways, India defines our past in the diamond industry and I have no doubt that it will also help define our future.

Bruce Cleaver, CEO of De Beers, speaking at the opening of IIJS in Mumbai



MARKETS


United States: Polished trading quiet. Jewelers insisting on memo rather than buying for inventory. Larger jewelry retail chains looking for goods but pushing for higher discounts…

Belgium: Antwerp diamond bourses closed until August 22 for summer vacation…

Israel: Polished trading very quiet ahead of summer vacation period. Israel Diamond Exchange to close August 15 to 28. Dealers cautious due to slow demand and tightening credit conditions…

India: Trading at IIJS show focused on gold rather than diamonds. Gold jewelry demand steady ahead of Diwali season but jewelers cautious after gold price jumps +26% to INR 31,400/10 gram…

Hong Kong: Slight improvement as dealers return from vacation and prepare for September Hong Kong show.Chinese demand improving for dossiers with retailers looking for bargains…

Click here for deeper analysis


INSIGHTS


Can India Tap its Diamond Jewelry Potential?

The India International Jewellery Show (IIJS), which took place in Mumbai this week, reflected a cautious local diamond and jewelry trade, even if sentiment was better than expected. Suppliers arrived with low expectations as a month-long strike among jewelry retailers, high gold prices, domestic and global uncertainty, and sluggish polished diamond demand had taken their toll...

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INDUSTRY

Jewelry Business Closures Accelerate

Jewelry business closures in North America grew 89% in the second quarter, the Jewelers Board of Trade reported. Some 475 companies in the U.S. and Canada closed during the period, including 21 via mergers or acquisitions and 12 through bankruptcy. Most business closures were in the U.S. as terminations there soared 88% to 460. In the first six months of 2016, closures climbed 59% to 867 in North America and by 60% to 840 in the U.S.


Sarine Sales Surge on Stronger Market

Sarine Technologies revenue rose 45% to $20.9 million in the second quarter as an improvement in rough diamond trading stimulated demand for its manufacturing equipment. Profit more than doubled to $6 million. The company also sold a record number of its Galaxy mapping systems. Positive market trends continued to drive profitability in the diamond midstream during the second quarter, Sarine said.

Hong Kong Polished Imports Continue to Slide

Hong Kong’s polished diamond imports fell 9% in the first six months of 2016, according to the Diamond Federation of Hong Kong. Shipments dropped to $8.52 billion, extending a downward trend that has persisted since the start of last year. A slump in imports from Belgium, India and Israel outweighed a slight increase in imports from the U.S. Polished exports were flat at $6.65 billion, meaning net polished imports, calculated as imports minus exports, fell 31% to $1.87 billion.

De Beers to Launch India Marketing Campaign

De Beers will run a marketing campaign in India during this year’s Diwali festival (October 30), the nation’s key selling season. The company initiated the campaign by signing a memorandum of understanding with the Gem & Jewellery Export Promotion Council at the India International Jewellery Show in Mumbai this week. The initial focus will be on smaller diamonds targeting diamond jewelry gifts to young married women.


RETAIL & WHOLESALE

Blue Nile Sales Below Expectations

Blue Nile’s revenue was flat at $113.8 million in the second quarter ending July 3, below the online jeweler’s forecast of $114 million to $117 million. U.S. engagement ring sales fell 4% to $62.6 million. Sales slowed in June due to global market uncertainty after a relatively strong period in April and May, the company said.

Pandora Sales Rise

Pandora’s revenue grew 20% to $648 million (DKK 4.33 billion) in the second quarter driven by higher sales volume in all its operating regions. Profit jumped 34% to $182.9 million. Prices were mostly stable, while revenue increased 25% in local currency terms. Revenue from self-branded stores rose 39% as the company plans to accelerate the expansion of its concept stores. More than 300 new stores will be opened in 2016 compared with a previous plan to add approximately 275.

Michael Hill CEO Steps Down

Mike Parsell has resigned as chief executive officer of Michael Hill International after 16 years at the helm of the Australia-based retailer. Parsell (pictured) has seen the jeweler expand from just three stores in New Zealand when he joined the company 34 years ago to a chain of more than 300 outlets across Australia, Canada, New Zealand and the U.S. Phil Taylor, chief financial officer, will serve as acting CEO while the company searches for a permanent replacement.

Acquisitions Spur Buffett’s Retail Growth

Berkshire Hathaway, the conglomerate chaired by Warren Buffett, said retail revenue increased 6% to $3.81 billion in the second quarter of 2016. Growth was driven by acquisitions of an automotive dealer and a motorcycle gear retailer, while the business unit also includes jewelry stores Borsheims, Helzberg and Ben Bridge.




MINING


Lucara’s Sales Lifted by Record 813ct. Diamond

Lucara Diamond Corp.’s revenue nearly tripled to $191.4 million in the first half of 2016 boosted by its sale of the 813-carat ‘Constellation’ diamond for a record-breaking $63.1 million. The average selling price achieved by the company jumped to $1,233 per carat from $340 per carat, while profit more than quadrupled to $63.3 million. The board declared a special cash dividend for the quarter in light of the strong results.

Cullinan Mine Yields 139ct. Rough Diamond

Petra Diamonds recovered a 138.57-carat, D-color, type IIa rough diamond, the latest in a string of large stones found at its Cullinan mine in South Africa. The company will offer the diamond at its sale in Johannesburg toward the end of the month. Last month, Petra sold a 121.16-carat diamond for $6 million, or $49,480 per carat.


Severe Snow Disrupts Letšeng Operations

Gem Diamonds said operating costs may rise as severe snowfall and winds restricted access to its Letšeng mine in Lesotho and caused its processing plant to operate at reduced rates. The company maintained its production guidance of 107,000 carats to 109,000 carats for the year but cautioned it may need to re-assess its guidance for ore tonnes treated and costs.


Diamond Miner Trans Hex Faces Takeover Bid

A consortium of three Trans Hex Group shareholders joined together to make a mandatory cash offer to acquire the diamond miner. Cream Magenta 140 Proprietary, Metcap 14 Proprietary Limited and RAC Investment Holdings Proprietary Limited already hold 72.28% of the miner’s shares and intend to buy the remainder. Cape Town-based Trans Hex is focused on mining in South Africa and Angola.



GENERAL

Average Engagement Ring Price Falls

The average price of an engagement ring in the U.S. fell 0.5% to $3,360 in the second quarter, according to The Wedding Report. The average price of wedding bands declined by the same margin to $1,246 during the period. The average cost of weddings followed a similar trend, slipping 0.4% to $26,519, the quarterly report stated.

Jewelry Crime Drops as Security Improves

Losses from crime against the diamond, jewelry and watch industry decreased 7% to $30.8 million in the first half of the year, according to the Jewelers’ Security Alliance (JSA). The number of crimes fell from 562 to 528. Improved security and greater sharing of information on crimes and suspects contributed to the decline, the JSA said.


IIDGR Strikes Deal with U.K. Trade Body

The International Institute of Diamond Grading & Research (IIDGR) agreed to offer members of the U.K.’s National Association of Jewellers (NAJ) preferential terms at the De Beers subsidiary’s U.K. laboratory. The partnership gives NAJ members access to a “first-class diamond grading service at the very best rates,” said Michael Rawlinson, the trade body’s chief executive officer.

ECONWATCH

Diamond Industry Stock Report

Sotheby's (+22%) led U.S. industry stocks this past week on strong earnings. Other stateside U.S. shares were generally solid. Mining stocks were more mixed, with Rockwell Diamonds (+11%) leading the gains while Kennady Diamonds (-8.4%) lost value. In India, Gitanjali Gems (+27%) soared but most other industry share prices were lower.

View the detailed industry stock report

Aug 11 (12:04 GMT) Aug 4 (11:25 GMT) Chng.
$1 = Euro 0.90 0.90 0.00
$1 = Rupee 66.84 66.93 -0.09
$1 = Israel Shekel 3.81 3.83 -0.01
$1 = Rand 13.37 13.75 -0.38
$1 = Canadian Dollar 1.30 1.31 0.00

Precious Metals Chng.
Gold $1,345.30 $1,360.28 -$14.98 -1.1%
Platinum $1,171.75 $1,159.50 $12.25 1.1%
Silver $20.16 $20.40 -$0.24 -1.2%

Stock Indexes Chng.
BSE 27,859.60 27,714.37 145.23 0.5%
Dow Jones 18,495.66 18,355.00 140.66 0.8%
FTSE 6,845.56 6,720.87 124.69 1.9%
Hang Seng 22,580.55 21,832.23 748.32 3.4%
S&P 500 2,175.49 2,163.79 11.70 0.5%
Yahoo! Jewelry 657.11 997.54 -340.43 -34.1%
_______________
Múdry sa teší objaveniu pravdy, hlupák falošnosti.
Moderátor
Rapaport Weekly Market Comment August 18, 2016


Diamond markets quiet and conservative. Buyers selective and price sensitive. Dealers hoping Sept. Hong Kong show will stimulate stronger 4Q polished trading. Chinese consumer confidence stable but Hong Kong luxury continues to slide. Polished suppliers under pressure with rising inventory and tight liquidity. Israel’s FIBI bank raises collateral requirements for diamond loans. Steady demand for 1 to 2.99 ct., D-I, SI1-I2 but VS+ softening. Stars and melee weak with sluggish demand and concerns about synthetics. Titan 1Q sales +4% to $416M, profit -16% to $19M. Gem Diamonds 1H revenue -8% to $109M, loss of $16M vs. profit of $26M. Botswana 2Q rough exports +16% to $980M.


RapNet Data: August 18

Diamonds 1,239,730
Value $7,867,352,662
Carats 1,323,398
Average Discount -30.24%

www.rapnet.com



The RapNet Diamond Index (RAPI™) is the average asking price in hundred $/ct. of the 10 percent best priced diamonds, for each of the top 25 quality round diamonds (D-H, IF-VS2, GIA-graded, RapSpec-A3 and better) offered for sale on RapNet - Rapaport Diamond Trading Network.

Get Current Price List | Subscribe to Rapaport | Join RapNet

RAPAPORT ANNOUNCEMENTS
Aug-Sep 24-5 Wed-Mon
Rapaport Single Stone Auction

New York & Israel View Details
September 6-15 Tue-Thu


Rapaport Melee Auction
New York & Hong Kong
View Details September 13-17 Tue-Sat

Hong Kong Jewellery & Gem Fair

Booth: AWE 7N33 Hong Kong

View Details September 14-21 Wed-Wed


Rapaport Single Stone Auction

New York & Israel

View Details




QUOTE OF THE WEEK
The 'diamond' engine of growth has run out of steam.

Economists Keith Jefferis and Sethunya Sejoe of Econsult on the future of Botswana's diamond trade


MARKETS

United States: Slight trading improvement but polished buyers in summer mode. Demand selective with lower prices spurring buyer interest…

Belgium: Market quiet with bourse services closed until August 22…

Israel: Very little activity with the Israel Diamond Exchange closed for summer vacation until August 28…

India: Slow trading and weak sentiment. Dealers preparing for Hong Kong show. Polished inventory levels high as manufacturing continues but demand slowed in the past few months…

Hong Kong: Polished trading sluggish with some improvement as dealers prepare for the September show. Smaller suppliers discounting to maintain liquidity…

Click here for deeper analysis

INDUSTRY

NY Firm to Launch Diamond Industry Lending

Excelsior Capital Ventures will start lending to diamond and jewelry companies on October 3, aiming to fill an estimated $6 billion liquidity shortfall within the trade. The New York-based firm plans to co-lend with major banks that are already in the diamond sector and grow its exposure to $1.5 billion by 2019. Excelsior will loan up to $20 million to each borrower against diamond and precious-metal inventories as collateral.


Israeli Bank Tightens Lending Terms

The Israel Diamond Exchange (IDE) pledged to contest a decision by First International Bank of Israel (FIBI) to tighten its lending standards for the trade. FIBI raised collateral requirements for the diamond industry, prompting IDE president Yoram Dvash to assure bourse members his team will lobby state authorities to persuade the bank to retreat. The IDE has set up a committee to that effect and will hold an emergency meeting after its members return from summer vacation.

India’s Jewelers Applaud Simpler Tax System

India’s jewelry industry welcomed the goods and services tax (GST) passed by parliament this month even as there remain concerns about its implementation. GST is expected to be adopted on April 1, 2017, the start of India’s financial year, and will consolidate several payments that are made currently into just one charge. The new system will free up the movement of goods, said G.V. Sreedhar, chairman of the All India Gems & Jewellery Trade Federation.

Blue Diamonds Buoy Fancy Color Prices

Fancy color diamond prices edged up 0.4% in the second quarter due to a notable increase in demand for blues and pinks, according to the Fancy Color Research Foundation (FCRF). Blue diamond prices rose 1.1% and pinks increased 0.7%, offsetting a 0.5% decline in fancy yellow prices. Fancy vivid blue diamond prices jumped 8.6%.


RETAIL & WHOLESALE

U.S. Jewelry Store Sales Decline

U.S. specialty jewelry store sales fell 2% to $2.2 billion in June, according to the U.S. Census Bureau. The decline contrasts with growth in previous months as sales increased 1% in the first half of the year. Sales have been buoyed by higher prices as the U.S. consumer price index (CPI) for jewelry rose 4% in July from a year earlier, according to the Bureau of Labor Statistics. The index was little changed compared to June, while the CPI for watches rose 2% sequentially.

Macy's Shutting 100 Stores

Macy’s will close 100 of its 728 stores in early 2017 to focus on better-performing outlets and strengthen its digital business. While the stores slated for closure generate $1 billion in annual sales, their profitability declined in recent years and the return on investment is no longer adequate, the company said. Macy’s sales slipped 4% to $5.87 billion in the second fiscal quarter ending July 30, while profit plunged 95% to $11 million.


Titan Sales Sluggish on ‘Poor’ Wedding Season

Titan Company’s revenue increased 4% to $415.9 million (INR 27.83 billion) in the first fiscal quarter ending June 30. Growth was slower than expected as the Bangalore-based jeweler said sales were diminished by a disappointing wedding season and the recent rise in gold prices. Jewelry sales grew 3% to $319.6 million, while profit dropped 16% to $18.9 million.

Chow Tai Fook Unveils ‘4Ts’

Chow Tai Fook launched its ‘4Ts’ campaign enabling customers to track the journey of a diamond from its source. The ‘Ts’ stand for “traceable, transparent, truthful and thoughtful” and are being pitched by the Hong Kong jeweler as a new industry standard. Chow Tai Fook also developed patented technology that enables it to inscribe on each diamond a unique serial number called the ‘T mark.’ The inscription will be applied to most of its diamonds starting from 0.15 carats, SI clarity and K color.

MINING

Mining Outlook Weighing on Botswana Growth

Botswana’s gross domestic product contracted 0.2% in the 12 months to March, reflecting a 21% drop in mining production, the Bank of Botswana said. The downward trend comes as rough diamond exports declined 1.8% to $1.8 billion in the first half of 2016, despite increasing 16% in the second quarter. The shaky outlook for mining means Botswana cannot rely on diamonds for economic growth, warned economists Keith Jefferis and Sethunya Sejoe of Gaborone-based consultancy Econsult

Gem Diamonds Slides to 1H Loss

Gem Diamonds reported a loss in the first half of 2016 due to a $40 million impairment charge related to downsizing operations at the Ghaghoo mine in Botswana. Production at Ghaghoo has been cut to 300,000 tonnes per year, from an earlier plan of 720,000 tonnes, due to weak market conditions. The miner made a loss of $15.9 million in the six month period versus a profit of $25.6 million the previous year. Revenue dropped 7.5% to 109.1 million.

First Gahcho Kué Sale Slated for 4Q

Mountain Province Diamonds will hold its first sale of rough from the Gahcho Kué mine in Canada in the fourth quarter. Sales will then take place every five weeks, the company said. The mine, which is 51% owned by De Beers and the rest by Mountain Province, is on track to achieve commercial production in January 2017 and is expected to yield 4.5 million carats a year over a 12-year mine life.


ALROSA Joins Responsible Jewellery Council

ALROSA has signed up for the Responsible Jewellery Council (RJC), implying it will undergo an independent audit of its operations within two years to gain RJC certification. The appraisal covers finance and legal compliance, as well as ethical criteria such as anti-corruption measures, human rights, labor conditions, social responsibility and environmental protection.

GENERAL

Young Diamantaires Group Gaining Momentum

A new initiative to encourage younger diamantaires’ involvement in the industry is gaining traction ahead of its first major networking event in September. The ‘Young Diamantaires’ project grew out of a need to get trade members aged below 45 involved in the World Federation of Diamond Bourses (WFDB). An informal meeting was held in May at the World Diamond Congress in Dubai and a social gathering has been scheduled for September 15 during the Hong Kong Jewellery and Gem Fair.

Diamond Miners Appoint Key Executives

De Beers appointed Nigel Simson (pictured) senior vice-president of its product planning operation at Global Sightholder Sales (GSS). The new unit will ensure products and services are more tailored to client needs. Bernard Bradley from Volvo Car Group will replace Simson as senior VP of GSS. In other moves, Dominion Diamond Corp. appointed former De Beers executive Tim Dabson and mergers and acquisitions specialist Trudy Curran to its board. Pangolin Diamonds Corp., a Botswana-focused exploration company, hired former De Beers CEO Gareth Penny as non-executive chairman.

Gold Jewelry Demand Declines

Global demand for gold jewelry dropped 9% to $17.98 billion in the second quarter, according to the World Gold Council (WGC). By volume, demand slumped 14% to 444.1 tonnes. Demand in the first half sank to $36.3 billion, its lowest first-half level since 2010. The decline was driven by weak consumer sentiment in China and the Middle East while gold prices rallied during the period, the WGC said.

Diamond Grower Scio Widens Losses

Scio Diamond Technology recorded a loss of $1.3 million in the first fiscal quarter, reflecting a 44% decline from a year earlier. The lab-grown diamond producer cautioned its future remains uncertain even as revenue advanced 7.5% to $185,061 during the period. The effects of a water leak at its factory in December, and other risks associated with being a new business, “raise substantial doubt about the company’s ability to continue as a going concern,” management said.


ECONWATCH

Diamond Industry Stock Report

Macy's (+19%) led rallying U.S. retail stocks this week on news it is streamlining its bricks-and-mortar business. JCPenney (+17.5%) also unveiled a revamped strategy and saw its share price climb, while strong results lifted Kohl's (+19%). Mining stocks were more mixed, led by Rockwell Diamonds (+10%), which continued its recent upward trend.

View the detailed industry stock report
Aug 18 (12:04 GMT) Aug 11 (12:04 GMT) Chng.
$1 = Euro 0.88 0.90 -0.01
$1 = Rupee 66.83 66.84 -0.01
$1 = Israel Shekel 3.78 3.81 -0.03
$1 = Rand 13.35 13.37 -0.02
$1 = Canadian Dollar 1.28 1.30 -0.02

Precious Metals Chng.
Gold $1,350.45 $1,345.30 $5.15 0.4%
Platinum $1,123.40 $1,171.75 -$48.35 -4.1%
Silver $19.75 $20.16 -$0.41 -2.0%

Stock Indexes Chng.
BSE 28,123.44 27,859.60 263.84 0.9%
Dow Jones 18,573.94 18,495.66 78.28 0.4%
FTSE 6,858.17 6,845.56 12.61 0.2%
Hang Seng 23,023.16 22,580.55 442.61 2.0%
S&P 500 2,182.22 2,175.49 6.73 0.3%
Yahoo! Jewelry 665.81 657.11 8.70 1.3%
_______________
Múdry sa teší objaveniu pravdy, hlupák falošnosti.
Moderátor
Rapaport Weekly Market Comment August 25, 2016


Far East markets waking up with increase in activity as dealers prepare for Hong Kong show. Far East demand for larger 3 to 8 ct. stones getting more attention with D-F, IF-VVS goods becoming more interesting after price declines in recent months. U.S. market uncertain with some action in New York during DDC’s India Week. Signet 2Q sales -3% to $1.4B, profit +6% to $82M as private equity firm Leonard Green invests $625M. Tiffany 2Q sales -6% to $932M, profit +1% to $106M. Michael Hill FY revenue +10% to $421M, profit -29% to $15M. Dominion 2Q sales -24% to $160M. Swiss watch exports -14% to $1.7B in July. India July polished exports +1% to $1.7B, rough imports +27% to $1.4B.


RapNet Data: August 25

Diamonds 1,245,429
Value $7,946,242,415
Carats 1,332,049
Average Discount -30.40%

www.rapnet.com



The RapNet Diamond Index (RAPI™) is the average asking price in hundred $/ct. of the 10 percent best priced diamonds, for each of the top 25 quality round diamonds (D-H, IF-VS2, GIA-graded, RapSpec-A3 and better) offered for sale on RapNet - Rapaport Diamond Trading Network.




Get Current Price List | Subscribe to Rapaport | Join RapNet



RAPAPORT ANNOUNCEMENTS
Aug-Sep 24-5 Wed-Mon
Rapaport Single Stone Auction

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September 6-15 Tue-Thue

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September 13-17 Tue-Sat
Hong Kong Jewellery & Gem Fair

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September 14-21 Wed-Wed
Rapaport Single Stone Auction

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QUOTE OF THE WEEK
This holiday season, all eyes are on the ears.

Mark Light, CEO of Signet Jewelers, envisages strong interest in earrings this year.


MARKETS
United States: Improved activity during India Week in New York Diamond Dealers Club (August 22 to 25). Overall polished market still cautious…

Belgium: Market slowly opening up as dealers return from vacation. Trading expected to be stable until Hong Kong Jewellery and Gem Fair (September 13 to 19)…

Israel: Trading quiet with the Israel Diamond Exchange closed until August 28…

India: Polished trading improving ahead of Hong Kong show with dealers focused on VS-SI goods. Steady U.S. and Chinese demand with a number of foreign buyers in Mumbai looking for bargains…

Hong Kong: Trading improving after long, slow summer. China and other Asian markets steady. Local Hong Kong demand slow…

Click here for deeper analysis

INSIGHTS

Dubai Probing Rough Diamond Values

While the Kimberley Process chair is focused on advancing forums on rough valuation, questions linger about the UAE's own diamond trade....

Click here to continue reading


INDUSTRY

Rio Tinto Quits Indian Mining Project

Rio Tinto has terminated its Bunder diamond mining project in India to conserve cash and cut costs. The venture in the central Indian state of Madhya Pradesh was tipped as the first significant diamond mine in India, with operations expected to commence in 2019. The miner now intends to close all project infrastructure by the end of the year.

India’s Polished Exports Rise in July

India’s polished diamond exports climbed 1% to $1.65 billion in July, according to the Gem & Jewellery Export Promotion Council. Polished imports added 2% to $272.5 million, leaving net exports 0.6% higher at $1.38 billion. Rough imports grew 27% to $1.4 billion and rough exports jumped 85% to $110.3 million, meaning net rough imports rose 24% to $1.28 billion. India’s net diamond account, the difference between net polished exports and net rough imports, plummeted 70% to $100.1 million.

ALROSA to Auction 402ct. Rough Diamond

ALROSA will offer a 401.97-carat rough diamond and a 40.25-carat polished stone at separate sales this month in Vladivostok, a city near Russia’s border with China. The miner recently opened a base in Vladivostok to help its sales to the Asia-Pacific region. A total of 19 diamonds, with a combined weight of 1,098 carats, will be up for sale at the rough auction until September 3. A tender of 28 polished diamonds will be held at the same time.

Swiss Watch Exports Continue to Fall

Swiss watch exports slumped 14% to $1.71 billion (CHF 1.64 billion) in July. Shipments to Hong Kong dived 33% and orders from the U.S. declined 15%. The high-end categories slowed, with precious-metal watch shipments falling 27%, its fifth consecutive monthly decline. Exports of timepieces priced above $3,119 (CHF 3,000) slumped 16%.

RETAIL & WHOLESALE

Private Equity Firm Invests $625M in Signet

Signet Jewelers announced a $625 million investment from private equity firm Leonard Green & Partners (LGP). The deal is expected to close in the third fiscal quarter of 2017, with Jonathan Sokoloff, one of LGP’s managing partners, joining Signet’s board. Signet also reported sales fell 2.6% to $1.37 billion in the second fiscal quarter ending July 30, while profit increased 32% to $81.9 million. The jeweler adjusted its full-year guidance downward.

Tiffany Sales Slide in Challenging Environment

Tiffany & Co.’s sales fell 6% to $932 million in the second quarter that ended July 31, with steep declines recorded in the U.S., Asia Pacific and Europe. Management noted lower spending among foreign tourists in all markets and in particular pointed to weakness in Hong Kong. Comparable store sales dropped 8%. Net earnings rose 1% to $106 million as the company cut costs to offset the slump in sales.

Veteran Diamond Marketer Joins Macy’s

Macy’s hired Richard Lennox as its chief marketing officer, effective September 15. Lennox (pictured) ran the De Beers account for marketing firm J. Walter Thompson, leading a team that developed the iconic “A Diamond is Forever” campaign. He was also executive vice-president and chief marketing and ecommerce officer at Zale Corporation. The move comes after Macy’s announced plans to improve the quality of its jewelry offering amid declining group sales.

Michael Hill’s Sales Rise

Michael Hill’s revenue jumped 9.5% to $421.3 million (AUD 551.1 million) in the fiscal year ending June 30 with growth recorded across all regions. Sales in Australia, its largest market, increased 4% to $234.9 million. Revenue advanced 7% in New Zealand and 19% in Canada. U.S. sales leapt 24% with same-store revenue increasing 3.5%, which was below the jewelry retailer’s expectations and budget.

MINING

Dominion’s Sales and Production Decline

Dominion Diamond Corporation’s rough sales fell 24% to $160 million in the second fiscal quarter ending July 31 due to a shift in focus to lower-value goods at its Ekati mine in Canada. Sales of rough from Ekati slumped 40% to $83.3 million, while production fell 7% to 856,000 carats due to a shutdown following a fire. Revenue from Dominion’s 40%-owned Diavik mine in Canada increased 6.5% to $76.7 million.


Stellar, Octea to Merge Sierra Leone Mines

Stellar Diamonds and Octea Mining agreed to combine their Sierra Leone projects to create the second largest diamond-mining operation in West Africa. Stellar plans to amalgamate its Tongo kimberlite project with Octea’s adjacent Tonguma asset, which would enable annual production of up to 250,000 carats of “high-value” diamonds. Trading in Stellar’s shares on London’s AIM was suspended until an admission document outlining details of the deal is published.

Lucara Invests to Improve Small Diamond Recovery

Lucara Diamond Corp. will expand the use of X-ray technology (XRT) to target smaller size diamonds at the Karowe mine in Botswana, having used the equipment to recover exceptional stones such as the 1,109-carat Lesedi La Rona. Four new XRT units will focus on diamonds ranging from 4 millimeters to 8 millimeters. The project is expected to be completed in the fourth quarter of next year at an estimated cost of up to $30 million.

Tycoon Sees Opportunity in Consolidating Mines

South African billionaire Christo Wiese sees prospects for consolidating diamond mining operations in the region, Bloomberg reported. Wiese, the country’s richest man, formed a consortium that made a cash offer for Trans Hex earlier this month. “There are opportunities for consolidating diamond operations in southern Africa,’’ he said. “Obviously we will look at growing the business as much as we can.’’

GENERAL

Israel Bourse Petitions Minister Over Lending

The Israel Diamond Exchange (IDE) called on Finance Minister Moshe Kahlon to help overturn First International Bank of Israel’s (FIBI) decision to tighten its lending standards for the industry. FIBI rolled out more stringent collateral demands and now follows a policy “that does not exist in any other sector,” a petition says. IDE president Yoram Dvash has vowed to fight FIBI’s decision.


24 Karat Club to Leave Iconic Venue

The 24 Karat Club of the City of New York will cease holding its annual Grand Banquet at the city’s Waldorf-Astoria Hotel after more than 100 years due to a renovation project at the venue. The 115th banquet on January 14, 2017, will be the last one to take place in the grand ballroom, the 24 Karat Club said. A three-year refurbishment project at the luxury Manhattan hotel has forced the organization to seek an alternative.

India Diamond Week Brings 'Hundreds' to DDC

More than 60 exhibitors and “several hundred” buyers attended the fifth India Diamond Week at the Diamond Dealers Club (DDC) of New York this week. The event, organized by DDC and India’s Gem and Jewellery Export Promotion Council, marked an increase in New York trading as dealers return from the summer break. Sixteen Indian diamond manufacturers participated alongside U.S. suppliers, enabling them to build on relationships from previous events, said Reuven Kaufman, president of the DDC.

ECONWATCH

Diamond Industry Stock Report

Michael Hill (+11%) gained on strong sales results, while Blue Nile (+10%) and Charles & Colvard (+19%) both enjoyed strong weeks despite the Dow Jones index falling 0.5%. Share prices were recorded before the market opened Thursday and before reports of disappointing sales at Signet Jewelers and Tiffany & Co. Signet saw its shares fall in early trading Thursday, while Tiffany gained on improved profit. Global diamond mining stocks were mixed, led by True North Gems (+5.9%).

View the detailed industry stock report
Aug 25 (12:24 GMT) Aug 18 (12:04 GMT) Chng.
$1 = Euro 0.89 0.88 0.00
$1 = Rupee 67.05 66.83 0.22
$1 = Israel Shekel 3.76 3.78 -0.02
$1 = Rand 14.13 13.35 0.78
$1 = Canadian Dollar 1.29 1.28 0.01

Precious Metals Chng.
Gold $1,322.72 $1,350.45 -$27.73 -2.1%
Platinum $1,082.75 $1,123.40 -$40.65 -3.6%
Silver $18.56 $19.75 -$1.19 -6.0%

Stock Indexes Chng.
BSE 27,835.91 28,123.44 -287.53 -1.0%
Dow Jones 18,481.48 18,573.94 -92.46 -0.5%
FTSE 6,817.45 6,858.17 -40.72 -0.6%
Hang Seng 22,826.87 23,023.16 -196.29 -0.9%
S&P 500 2,175.44 2,182.22 -6.78 -0.3%
Yahoo! Jewelry 661.54 665.81 -4.27 -0.6%
_______________
Múdry sa teší objaveniu pravdy, hlupák falošnosti.
Moderátor
Rapaport Weekly Market Comment September 1, 2016


Sentiment improving with dealers optimistic for Hong Kong show. Chinese buyers testing the market and pushing for deeper discounts, but dealers holding price levels to avoid losses. Lower Chinese tourist spending due to weak economy and strong dollar impacting sales at Hong Kong and global luxury jewelers. Rough market stable as manufacturers prepare production for holiday season. ALROSA reduced inventory by 6M cts. as 1H revenue +42% to $2.9B, profit +91% to $1.4B. Lukoil 1H Grib mine diamond sales +120% to $169M. Chow Sang Sang 1H revenue -16% to $1B, profit -50% to $47M. U.S. July jewelry sales +4% to $5B. Signet shares plummet 14% following reduced sales expectations.


RapNet Data: September 1

Diamonds 1,233,361
Value $7,944,677,484
Carats 1,329,463
Average Discount -30.30%

www.rapnet.com



The RapNet Diamond Index (RAPI™) is the average asking price in hundred $/ct. of the 10 percent best priced diamonds, for each of the top 25 quality round diamonds (D-H, IF-VS2, GIA-graded, RapSpec-A3 and better) offered for sale on RapNet - Rapaport Diamond Trading Network.

Get Current Price List | Subscribe to Rapaport | Join RapNet

RAPAPORT ANNOUNCEMENTS
Aug-Sep 24-5 Wed-Mon
Rapaport Single Stone Auction

New York & Israel

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September 6-15 Tue-Thu
Rapaport Melee Auction

New York & Hong Kong

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September 13-17 Tue-Sat
Hong Kong Jewellery & Gem Fair

Booth: AWE 7N33

Hong Kong

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September 14-21 Wed-Wed
Rapaport Single Stone Auction

New York & Israel

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QUOTE OF THE WEEK
Although the economy has slowed down, consumers are getting more and more sophisticated.

Chow Sang Sang on plans to differentiate itself in the Chinese jewelry market


MARKETS

United States: Polished trading slowly picking up. Good traffic at India Week in New York DDC but buyers selective and price sensitive while Indian suppliers holding firm on prices…

Belgium: Polished market stable but dealers cautious after summer break and waiting for Hong Kong show to signal market direction. Very few overseas buyers in Antwerp…

Israel: Slight improvement as dealers returned from two-week summer vacation. Steady U.S. demand and improving Far East demand…

India: Sentiment improving with stronger Far East demand ahead of Hong Kong show. Some foreign buyers in Mumbai looking for goods…

Hong Kong: Dealers preparing for Hong Kong show (September 13 to 19). Buyers assessing the market with calls to check prices and inventory rather than place orders before the show…

Click here for deeper analysis

INDUSTRY

Signet to Test Diamond Tracking Technology

Signet Jewelers will trial mapping technology enabling customers to track diamonds they buy from the retailer, after allegations of diamond swapping surfaced earlier this year. The equipment enables the customer to see the flaws in a diamond. Signet will test the technology at Kay Jewelers from November to January in an attempt to improve transparency for customers, the company said.

De Beers Introduces New Synthetics Checker

The International Institute of Diamond Grading & Research (IIDGR) will unveil its latest synthetics detection equipment at the Hong Kong Jewellery & Gem Fair. The De Beers subsidiary’s new PhosView machine analyzes colorless and near-colorless diamonds from 0.003 carats to 1-carat to determine if they contain high-pressure, high-temperature (HPHT) synthetics. The machine identifies stones that emit light, indicating they might be synthetic, and pushes them aside for further analysis.

Botswana’s Diamond Exports Recover in July

Botswana’s rough diamond exports bounced back up in July after sinking to zero a year ago, according to data from the nation’s central bank. The country recorded $438.9 million in outbound shipments during the month from its major diamond mines, the Bank of Botswana reported. No exports from these mines were recorded in July 2015.

IGI Launches Radio Ad Campaign

The International Gemological Institute (IGI) will target millennials in a series of radio commercials highlighting the importance of reliable diamond grading reports. The advertisements will feature in five radio spots in select markets from September 6 to the end of the year on iHeartMedia, which reaches more than 245 million listeners per month.

RETAIL & WHOLESALE

Chow Sang Sang Sales, Profit Slide

Chow Sang Sang’s revenue slid 16% to $1 billion (HKD 7.8 billion) in the six months ending June 30. Jewelry retail sales also dropped 16% to $885.9 million with the remaining revenue generated by its wholesale business. The Hong Kong-based company blamed weaker consumer sentiment and a drop in tourist spending in Hong Kong for the slump. Profit plummeted 50% to $46.9 million, with the decline widened by a $31.7 million gain recorded from the sale of an asset last year.

U.S. Jewelry and Watch Sales Rise

U.S. jewelry and watch sales from all outlets rose 4% to an estimated $5.7 billion in July, a ninth consecutive year-on-year increase. Jewelry sales climbed 4% to $5.03 billion, while watch sales grew at the same rate to $666 million, according to Rapaport News estimates. By contrast, the Consumer Confidence Index fell month-on-month in July, according to the Conference Board, before rebounding again in August.

Cartier to Reopen Renovated NY Store

Cartier will reopen its flagship store on New York’s Fifth Avenue in September following renovations. The high-end jeweler, which is owned by luxury group Richemont, started upgrading its outlet at 653 Fifth Avenue in 2014 and opened a temporary storefront seven blocks up the road at number 767. Cartier has started to promote the new-look store through sponsored social posts and an email to its newsletter subscribers, according to Luxury Daily.

Michael Hill Names First North America Chief

Michael Hill appointed Brett Halliday as its president for North America, combining the roles of U.S. retail general manager and regional manager previously held by Darcy Harkins and Ray Riley respectively. Halliday continues to head Michael Hill’s Canadian business and has been tasked with turning around the U.S. operations following disappointing sales in the past fiscal year. Separately, Tishara Mina replaced Micah Walker as general manager of Emma & Roe, Michael Hill’s charm brand.

MINING

ALROSA Sales Lifted by Improved Rough Market

ALROSA’s sales leapt 42% to $2.87 billion (RUB 186.67 billion) in the six months to June 30. Diamond sales grew 45% to $2.7 billion, with the remaining revenue coming from other streams such as its gas and transport divisions. Profit soared 91% to $1.39 billion. The diamond market was “moderately steady” and the financials were boosted by a depreciation of the ruble against the U.S. dollar, said Andrey Zharkov, ALROSA’s chief executive officer (pictured).

Lukoil’s Diamond Revenue More Than Doubles

Lukoil’s diamond sales from its Grib mine jumped 120% in the first half, Russia’s largest oil producer reported. Diamond revenue grew to $169 million (RUB 11 billion) from $76.8 million a year ago. Sales in the second quarter were flat at $46.1 million. Lukoil started production at Grib in September 2014.

India Seeks Investor for Bunder Project

India will auction the Bunder diamond-mining project or allocate it to a state firm after Rio Tinto pulled out of the venture, Balvinder Kumar, India’s Mines Secretary, was cited by Reuters as saying. Kumar will talk with parties interested in the project when Rio Tinto formally hands it back to the state government of Madhya Pradesh, where it is located.

Firestone Extends BK11 Financing Deadline Again

Firestone Diamonds agreed to push back the deadline for the sale of its Botswana operations to Tango Mining for the fourth time to enable the buyer to finalize funding. Tango must now meet all conditions of the agreement to buy the BK11 mine in the Orapa region by September 9. Tango has agreed a $10 million non-convertible loan deal with a number of lenders to finance the acquisition.


GENERAL

JVC Begins Search for New Chief

The Jewelers Vigilance Committee (JVC) set up a team to seek out a replacement for Cecilia Gardner, who is stepping down next year from multiple roles of president, chief executive officer and general counsel. Gardner (pictured) announced she will leave the JVC at the beginning of 2017 after an 18-year stint.

U.K. Blocks Export of Queen Victoria’s Coronet

The U.K. culture minister has temporarily barred Queen Victoria’s sapphire and diamond coronet from leaving the country. The jewel is at risk of being exported unless a buyer can be found to match the $6.6 million (GBP 5 million) asking price. The coronet is one of the most important jewels of Queen Victoria’s reign from 1837 to 1901.

ECONWATCH

Diamond Industry Stock Report

Signet (-14%) slid following disappointing sales results and a lower outlook, with U.S. retail stocks mostly declining in tandem, led by Birks Group (-17%). Hong Kong jewelry stocks fell, headed by Luk Fook (-4.1%), as Chow Sang Sang (-1.2%) reported a heavy drop in sales and profit amid continued poor consumer sentiment. Mining stocks were mixed, with ALROSA (+0.7%) only gaining marginally despite strong results.

View the detailed industry stock report
Sep 1 (11:08 GMT) Aug 25 (12:24 GMT) Chng.
$1 = Euro 0.90 0.89 0.01
$1 = Rupee 66.99 67.05 -0.06
$1 = Israel Shekel 3.78 3.76 0.02
$1 = Rand 14.66 14.13 0.54
$1 = Canadian Dollar 1.31 1.29 0.02

Precious Metals Chng.
Gold $1,306.95 $1,322.72 -$15.77 -1.2%
Platinum $1,054.75 $1,082.75 -$28.00 -2.6%
Silver $18.67 $18.56 $0.11 0.6%

Stock Indexes Chng.
BSE 28,423.48 27,835.91 587.57 2.1%
Dow Jones 18,400.88 18,481.48 -80.60 -0.4%
FTSE 6,786.44 6,817.45 -31.01 -0.5%
Hang Seng 23,162.34 22,826.87 335.47 1.5%
S&P 500 2,170.95 2,175.44 -4.49 -0.2%
Yahoo! Jewelry 455.66 661.54 -205.88 -31.1%
_______________
Múdry sa teší objaveniu pravdy, hlupák falošnosti.
Moderátor
Rapaport Weekly Market Comment September 8, 2016


All eyes on Hong Kong as industry focuses on important Far East show. Sentiment in cutting centers is positive with improved dealer trading but show expectations are mixed and uncertain. Polished prices stable in anticipation of the show with Aug. 1 ct. RAPI -0.8%, 0.30 ct. flat, 0.50 ct. +0.2%, 3 ct. +0.2%. Profitability under pressure as rough premiums firmed after $630M De Beers sale as cutters increase production before Diwali. Belgium Aug. polished exports +17% to $399M, rough imports +9% to $659M. U.S. July polished imports -20% to $1.8B, polished exports -2% to $1.4B. HRD Antwerp fires three employees, bans client after uncovering grading discrepancies at Mumbai lab.


RapNet Data: September 8

Diamonds 1,231,395
Value $7,943,779,151
Carats 1,336,749
Average Discount -30.21%

www.rapnet.com

The RapNet Diamond Index (RAPI™) is the average asking price in hundred $/ct. of the 10 percent best priced diamonds, for each of the top 25 quality round diamonds (D-H, IF-VS2, GIA-graded, RapSpec-A3 and better) offered for sale on RapNet - Rapaport Diamond Trading Network.

Get Current Price List | Subscribe to Rapaport | Join RapNet



RAPAPORT ANNOUNCEMENTS
September 6-14 Tue-Wed
Rapaport Quarterly Pawnshop Auction

New York & Hong Kong

View Details
September 6-16 Tue-Fri
Rapaport Monthly Melee Auction

New York & Hong Kong

View Details September 13-17 Tue-Sat
Hong Kong Jewellery & Gem Fair

Booth: AWE 7N33 Hong Kong View Details

September 21-28 Wed-Wed
Rapaport Single Stone Auction

New York & Israel View Details

QUOTE OF THE WEEK
In order to sell diamonds and diamond jewelry successfully, one needs to tell the diamond's story.

Christopher Zoettl, general manager of Germany's Designer Diamonds


MARKETS

United States: Polished trading improved slightly with dealers preparing holiday inventory. Profitability squeezed after long period of sustained price declines…

Belgium: Sentiment improving head of Hong Kong show. Steady Far East demand for 0.30 to 0.50 ct., D-H, VS-SI goods. U.S. and European buyers cautious…

Israel: Positive mood with good activity at monthly Blue & White Fair. Dealers looking at wider variety of diamonds to fill existing orders…

India: Dealers focused on Hong Kong show hoping stronger trading will raise liquidity. Large volumes expected on display at the show…

Hong Kong: Trading slowed slightly with buyers waiting for next week’s show. Sentiment cautious as local jewelry retail remains slow and large-scale buyers already holding a lot of inventory…

Click here for deeper analysis

RAPAPORT STATEMENT

Diamond Prices Mixed in Slow August Trading

One-carat diamond prices remain under pressure with low trading volume during the August vacation period. Polished inventory is increasing with steady manufacturing and sluggish demand as dealers prepare for the fourth-quarter holiday season. Some improvement in under-the-carat goods as Chinese bridal demand stabilizes. The RapNet Diamond Index (RAPI™) for 1-carat diamonds fell 0.8% in August, while other sizes were relatively stable.

Purchase the full Rapaport Monthly Report – September 2016

INDUSTRY

HRD Uncovers Tampered Diamond Grading Reports

HRD Antwerp has invalidated 156 diamond grading certificates and fired three employees who accepted a financial incentive for tampering with the reports at its Mumbai laboratory. A small Mumbai-based trading firm attempted to improve the grade of diamonds it submitted to the laboratory by enticing three employees, who admitted to their actions and were subsequently dismissed. The trader has been banned from working with the grading company in future.


DPA Appoints New Marketing Guru

The Diamond Producers Association (DPA) named Deborah Marquardt as chief marketing officer. Marquardt (pictured) was most recently vice-president and general manager of Time Inc.’s Style Network. She will lead the DPA's activities in the U.S. and report to Jean-Marc Lieberherr, its chief executive officer. The DPA will launch its inaugural diamond-marketing campaign this fall, focusing on digital and social media.

U.S. Polished Diamond Imports Slide

U.S. polished diamond imports slumped 20% to $1.76 billion in July, its lowest level for the month since 2012. Polished exports slipped 1.5% to $1.38 billion, driving down net imports 52% to $372 million. Rough diamond imports jumped 79% to $59 million, while rough exports grew to $24 million from $9 million a year ago. Net rough imports rose 50% to $36 million. The net diamond account, reflecting the difference between net imports and exports, dropped 49% to $407 million.

Belgium's Rough Trade Continues to Rise

Belgium’s rough diamond exports leapt 23% year on year to $530.6 million and imports jumped 9% to $659.2 million in a seasonally subdued August. Polished exports grew 17% to $398.6 million but inbound orders fell 7% to $648.2 million. The country’s net diamond account was negative $378.2 million, meaning more diamonds were brought into Belgium than shipped out during the month.


RETAIL & WHOLESALE

Blue Nile to Open Webroom in Seattle

Blue Nile will open a ‘webroom’ at the Bellevue Square shopping mall near its Seattle headquarters. The outlet, which is the online retailer’s fifth physical store, allows customers to see engagement rings on-site before buying them online. Prices are 40% lower than those at traditional jewelers, the company said. Blue Nile could open between 25 and 50 webrooms, CEO Harvey Kanter said.

Boodles Joins List of Trusted Argyle Jewelers

Rio Tinto named U.K.-based jeweler Boodles as a ‘select atelier’ for its Argyle pink diamonds, granting it the right to sell jewelry set with stones from the mine. Select ateliers are Rio Tinto’s trusted retail partners for Argyle pink diamonds not sold through its main annual tender. Boodles’ official launch as a select atelier will take place in October when Rio Tinto showcases the 2016 Argyle Pink Diamonds Tender in London for the first time in four years.


WDM Approves First European Retailer

Germany’s Designer Diamonds became the first retail jeweler in Europe to join the World Diamond Mark (WDM) Authorised Diamond Dealer program. The company specializes in engagement and wedding rings, operating a store at its headquarters in Munich and two in Augsburg. WDM membership will help the company achieve higher and more profitable sales, said Christopher Zoettl, the retailer’s general manager (pictured).


MINING

De Beers Sales Rise Ahead of Holiday Season

De Beers sold $630 million of rough during its seventh sales cycle this year amid improved demand with diamond cutters requiring stock for the forthcoming holiday season. Sales grew from a year ago when the market slumped and the August 2015 De Beers sight was valued at $358 million, according to Rapaport News estimates. This year’s published figure includes the latest De Beers sight as well as auction sales and supply to beneficiation and government partners.

Lucapa Achieves $1,212/ct from Lulo Sale

Lucapa Diamond Company sold $4.4 million (AUD 5.8 million) of rough from its Lulo mine in Angola at an average price of $1,212 per carat. The parcel of 3,642 carats included a 28.5-carat light pink diamond – the largest and most valuable colored diamond sold from the mine to date. Also contained in the batch were a 49.8-carat, type-IIa white diamond and two light fancy yellows weighing 11.9 carats and 10.9 carats.

KP Plans Rough Valuation Forum in Antwerp

The Kimberley Process (KP) and the Antwerp World Diamond Centre (AWDC) will hold the second forum on rough diamond valuation in Antwerp on September 30. The one-day event at the Hylitt Hotel will delve into valuation practices deployed by the global diamond industry, with the aim of developing a more formalized approach. Better awareness and conformity on rough valuations will help producing countries get more value from their mineral resources, the KP said.

GENERAL

New Jewelry Fair to Open in Hong Kong

The International Gem & Jewellery Festival (IGJF) will launch next week in Hong Kong, going head-to-head with the more established Hong Kong Jewellery & Gem Fair. Running from September 13 to 18 at the Central Harbourfront Event Space, the new show will feature more than 230 suppliers from around the world. The main Hong Kong Jewellery & Gem Fair will run from September 13 to 17 at AsiaWorld-Expo and from September 15 to 19 at the Hong Kong Convention & Exhibition Centre.


JCK Shifts 2017 Vegas Show Days

Next year’s LUXURY and JCK Las Vegas jewelry shows will take place on different days of the week from previous years to accommodate those observing the Jewish holiday of Shavuot. LUXURY, an exhibition for invited retailers, will run from Friday, June 2 to Sunday, June 4. JCK Las Vegas, the broader jewelry fair, is scheduled from Monday, June 5 to Thursday, June 8.

Brides Uninspired by Emerald-Cut Diamonds

Emerald-shape diamonds have limited popularity among people seeking an engagement ring, according to a survey by The Wedding Report. Some 38.3% of respondents would avoid the style, revealed the poll which encompassed couples visiting costofwedding.com from July 1 to 20 and those responding to an email questionnaire. In contrast, 26.7% said they “love” the emerald cut whereas 5.8% said it would be too hard to pair it with a wedding band.

ECONWATCH

Diamond Industry Stock Report

Mining stocks were generally positive this past week after De Beers reported promising rough sales ahead of the holiday season. Its parent company, Anglo American (+10%), was among the sharp rises, which were led overall by Lucara (+13%). However, True North Gems (-92%) slid from an already low base amid news its Greenland subsidary filed for voluntary bankruptcy. Strong Chinese import data boosted regional stocks, with Chow Tai Fook (+8.6%) and Luk Fook (+7.7%) both gaining.

View the detailed industry stock report

Sep 8 (10:50 GMT) Sep 1 (11:08 GMT) Chng.
$1 = Euro 0.89 0.90 -0.01
$1 = Rupee 66.42 66.99 -0.57
$1 = Israel Shekel 3.75 3.78 -0.03
$1 = Rand 13.88 14.66 -0.79
$1 = Canadian Dollar 1.29 1.31 -0.02

Precious Metals Chng.
Gold $1,347.40 $1,306.95 $40.45 3.1%
Platinum $1,095.75 $1,054.75 $41.00 3.9%
Silver $19.91 $18.67 $1.24 6.6%

Stock Indexes Chng.
BSE 29,045.28 28,423.48 621.80 2.2%
Dow Jones 18,526.14 18,400.88 125.26 0.7%
FTSE 6,875.22 6,786.44 88.78 1.3%
Hang Seng 23,919.34 23,162.34 757.00 3.3%
S&P 500 2,186.16 2,170.95 15.21 0.7%
_______________
Múdry sa teší objaveniu pravdy, hlupák falošnosti.
Moderátor
Rapaport Weekly Market Comment September 15, 2016


Positive atmosphere at Hong Kong show with trading slightly better than low expectations. Buyers maintain cautious outlook for holiday season. Far East retailers requiring less inventory as China expansion slows. Suppliers holding prices to minimize losses from expensive rough. De Beers estimates 2015 global rough sales -30% to $13.7B, rough production -0.7% to 141M cts. with value -10% to $17.5B, average price -8% to $124/ct. Insight report notes millennials driving growth but diamond content in jewelry sales -2% to $24.7B last year. Dominion 2Q sales -24% to $160M, loss of $33M vs. loss of $18M a year ago. Richemont jewelry sales -16% in first five months, warns 1H profit -45%.


RapNet Data: September 15

Diamonds 1,253,101
Value $8,000,226,523
Carats 1,346,501
Average Discount -30.22%

www.rapnet.com



The RapNet Diamond Index (RAPI™) is the average asking price in hundred $/ct. of the 10 percent best priced diamonds, for each of the top 25 quality round diamonds (D-H, IF-VS2, GIA-graded, RapSpec-A3 and better) offered for sale on RapNet - Rapaport Diamond Trading Network.

Get Current Price List | Subscribe to Rapaport | Join RapNet

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September 21-28 Wed-Wed


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Sep-Oct 28-7 Wed-Fri
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View Details Oct-Nov 26-2 Wed-Wed


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QUOTE OF THE WEEK
We are still optimistic about China. It’s still a huge market for diamond consumption.

Kent Wong, managing director of Chow Tai Fook

MARKETS

United States: Stable market with dealers watching for trends from Hong Kong show. Buyers selective and pushing for higher discounts…

Belgium: Positive sentiment with large delegation of Antwerp suppliers holding firm prices at Hong Kong show…

Israel: Dealers relieved at steady Hong Kong show following long, inactive summer…

India: Polished market stable with suppliers maintaining prices at Hong Kong show. Indian buyers looking for bargains…

Hong Kong: Busy activity with steady traffic at Hong Kong show. Conservative Far East buyers limiting inventory orders…

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INDUSTRY

Positive Atmosphere at Hong Kong Show

Sentiment was positive but buyers were cautious in the opening days of the Hong Kong Jewellery & Gem Fair. Traffic was steady and there was some buying activity at the loose diamond section as buyers have been out of the market for so long, exhibitors noted. Polished prices were relatively stable with manufacturers defending tight profit margins. The finished jewelry exhibition, which began Thursday at a separate venue, saw light traffic on the opening day. Retailers maintain a cautious outlook for Far East diamond consumption this holiday season.

‘A Diamond is Forever’ Relaunched in China

De Beers is relaunching its 'A Diamond is Forever’ marketing in China as the company is targeting millennials this holiday season. Millennials spent more than $25 billion on diamond jewelry across the U.S., China, India and Japan, accounting for more than half the total retail value of diamond jewelry purchases in those top four markets, according to its Diamond Insight Report published this wekend

HRD Renames its Diamond Grading Reports

HRD Antwerp rebranded its grading certificates as ‘Diamond Grading and Jewelry Reports’ due to the legal connotations of using the term ‘certificate’ and to align with common global industry terminology. The new documents also feature durable and tear-proof paper and security features such as UV print, micro-line structures, micro-text and a hologram. The reports will appear on the market from October 3.

De Grisogono Buys Rights to 813ct. Diamond

De Grisogono, a Swiss jeweler, purchased the rights to the world’s most expensive rough diamond, the Constellation. The company entered into a partnership with Dubai-based Nemesis International, which bought the 813-carat diamond from Lucara Diamond Corporation for $63 million in May. The Constellation was recovered at the Karowe mine in Botswana in November and cutting and polishing is scheduled to be completed by mid-2017.


RETAIL & WHOLESALE

Chow Tai Fook Braces for Short-Term Volatility

Chow Tai Fook cautioned the jewelry market environment remains challenging even as the company expects its sales slide to ease. The second half of calendar 2016 will be better than the first half because the jeweler is working off a low base after last year’s sales slump, managing director Kent Wong told Rapaport News. Chow Tai Fook’s revenue fell 12% to $7.3 billion (HKD 56.59 billion), while profit slumped 46% to $384 million in the fiscal year ending March 31.

Richemont Sales Slump Prompts Profit Warning

Richemont’s sales dropped 14% at actual exchange rates in the five months ending August 31 due to a “difficult global environment,” the luxury group said. Sales slid 13% at constant rates. Jewelry sales, including the company’s Cartier and Van Cleef & Arpels brands, retreated 16% at actual rates and 15% at constant rates. Operating profit will tumble 45% in the first half and net profit will be impacted at a similar level, the company forecast.

Tiffany Names Mark Erceg as New CFO

Tiffany & Co. appointed Mark Erceg its new chief financial officer (CFO) effective October 18. Erceg, whose most recent position was CFO at Canadian Pacific Railway Ltd, replaces Ralph Nicoletti, who resigned in May to join another company. His appointment comes amid declining sales as spending in key markets tightened. Tiffany’s sales slid 6% to $932 million in the second quarter that ended July 31.

Frederick Goldman Hires Veteran to Oversee Quality

Frederick Goldman appointed former Gemvara executive Noah Pearce as director of quality engineering with a focus on bridal and fine jewelry. Pearce has more than 20 years experience in the industry, having served as director of quality assurance and manufacturing at Gemvara, an online retailer which was recently acquired by Warren Buffett’s Richline Group.

MINING

Dominion Loss Widens After Ekati Fire

Dominion Diamond Corporation’s net loss widened 82% to $32.9 million in the three months that ended July 31. A fire at the Ekati mine in Canada during the quarter resulted in a plant closure and an estimated $15 million in repairs. Operations are expected to resume September 21. Diamond sales slumped 24% to $160 million. Separately, Dominion hired Matthew Quinlan as chief financial officer from CIBC World Markets.

Rockwell Diamonds CEO Resigns

James Campbell resigned as chief executive officer of Rockwell Diamonds amid a review of the company’s operations. He’ll be replaced by Tjaart Willemse, a former De Beers operations manager who will continue to assess Rockwell’s management structures and operating plans. A strategic review in August found the recently acquired to Remhoogte mine is operating below plan, while construction of the new plant at Wouterspan is behind schedule and costing more than projectets


DiamondCorp Cuts Loss at Lace Mine

DiamondCorp’s pre-tax loss narrowed to $328,000 (GBP 247,221) in the first half from $4.2 million a year earlier, driven by favorable foreign-exchange rates. The company cautioned sales may lag in the coming months because of operational issues at its Lace mine in South Africa. DiamondCorp is preparing to hold its first sale in Antwerp on September 17 but will offer fewer diamonds than expected as production at Lace was disrupted by flooding in August.

Firestone Pulls Sale of BK11 Mine to Tango

Firestone Diamonds’ sale of the BK11 mine in Botswana fell through after Tango Mining failed to meet the purchase conditions by September 9. The deal was initially scheduled to close in September last year, but Firestone extended the deadline four times to enable Tango to finalize the requisite funding. This time, it said the agreement has finally lapsed and the deal will not proceed.

Merlin Diamond Mine to Resume Operations

Merlin Diamonds will restart production at its mine in Australia’s Northern Territory in October after the provincial government approved its mining plan. The Merlin mine has an indicated and inferred resource of 4.3 million carats and an 11-year life span. Merlin said it has started pumping out water from the Kaye pit in preparation for minimum

GENERAL

Apple Discontinues 18k-Gold Luxury Smartwatch

Apple’s $17,000 gold smartwatch failed to make it to the company’s latest product range, signaling the technology giant has retreated from the luxury timepiece category. The Apple Watch Series 2 is available in lightweight aluminum, stainless steel cases or ceramic. As the 18-karat gold version is no longer available, the ceramic timepiece is now the most expensive in the collection, starting at $1,249.

Jadeite Bangle Headlines Sotheby's HK Auction

A “highly important” green jadeite bangle is slated to be the most valuable item at Sotheby’s jewelry auction in Hong Kong next month, drawing an estimate of up to $9 million (HKD 70 million). The vivid emerald-green bangle is a rare example of “jadeite of the best quality,” Sotheby’s said. Its lower estimate is $6.5 million.

Natural Color Diamond Association Opens in U.K.

The Natural Color Diamond Association (NCDIA) will launch a U.K. branch to facilitate networking among members of the trade and increase the public’s awareness about colored diamonds. The first meeting will take place November 10 at the London campus of the Gemological Institute of America (GIA). David Warren, Christie's senior international jewelry director, will deliver a talk on colored diamonds the auction house has put under the hammer over the years.

ECONWATCH
Diamond Industry Stock Report

U.S. retail and industry stocks mainly fell, led by Sotheby's (-7.5%), in a week that saw the Dow Jones index drop 2.7%. European industry share prices mostly declined, headed by Richemont (-6%) on disappointing results that prompted a profit warning. Gitanjali Gems (+42%) led generally stronger Indian stocks, while Rockwell (-14%) suffered the heaviest drop of the major diamond miners after its CEO resigned. Mining stocks otherwise showed a mixed performance.

View the detailed industry stock report
Sep 15 (11:15 GMT) Sep 9 (10:50 GMT) Chng.
$1 = Euro 0.89 0.89 0.00
$1 = Rupee 67.00 66.42 0.58
$1 = Israel Shekel 3.78 3.75 0.03
$1 = Rand 14.29 13.88 0.41
$1 = Canadian Dollar 1.32 1.29 0.03

Precious Metals Chng.
Gold $1,321.47 $1,347.40 -$25.93 -1.9%
Platinum $1,034.75 $1,095.75 -$61.00 -5.6%
Silver $19.00 $19.91 -$0.91 -4.6%

Stock Indexes Chng.
BSE 28,412.89 29,045.28 -632.39 -2.2%
_______________
Múdry sa teší objaveniu pravdy, hlupák falošnosti.
Moderátor
Rapaport Weekly Market Comment September 22, 2016


Sentiment improves at Hong Kong show (7/10) with steady traffic but restrained buying ahead of National Day festival (Oct. 1). Good demand for 0.30 to 2 ct., G-J, VS-SI diamonds but sales were limited as suppliers refused very deep discounts. 3 to 4 ct. weak. Mixed demand for 5 ct.-plus. Picky Far East buyers shifting to lower price points and restricting inventory purchases. Excess Chinese inventories have been coming down with some buying to meet current demand. ALROSA Aug. rough sale +53% to $243M. Petra Diamonds FY revenue +1% to $431M, profit +12% to $67M. India Aug. polished exports +11% to $1.9B, rough imports +72% to $1.1B. De Beers, Mountain Province open Gahcho Kué mine.


RapNet Data: September 22

Diamonds 1,242,397
Value $7,900,621,86
Carats 1,331,885
Average Discount -30.28%

www.rapnet.com

The RapNet Diamond Index (RAPI™) is the average asking price in hundred $/ct. of the 10 percent best priced diamonds, for each of the top 25 quality round diamonds (D-H, IF-VS2, GIA-graded, RapSpec-A3 and better) offered for sale on RapNet - Rapaport Diamond Trading Network.

Get Current Price List | Subscribe to Rapaport | Join RapNet

RAPAPORT ANNOUNCEMENTS

September 21-28 Wed-Wed
Rapaport Single Stone Auction

New York & Israel

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View Details Oct-Nov 26-2 Wed-Wed


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QUOTE OF THE WEEK
Given the slowdown in China and Hong Kong, we were not expecting an exceptional performance, but foot traffic was heavier than forecast and there was certainly plenty of interest from buyers, even if they were looking for highly specific items and not buying in large volumes.”

Ernie Blom, president of the World Federation of Diamond Bourse

MARKETS

United States: Steady trading in New York with sentiment lifted by positive reports from Hong Kong show. Dealers focused on filling orders for the holiday season…

Belgium: Trading more upbeat than before Hong Kong show. Good demand from U.S. retail programs with steady demand for 0.30 to 2 ct., G-J, VS-SI diamonds…

Israel: Improved mood as dealers returned from Hong Kong. Steady demand for dossiers and 1 ct., G-J, VS-SI, GIA diamonds…

India: Stable market with steady U.S. demand. Melee weak with pockets of better demand in +8 segment…

Hong Kong: Dealers focused on closing transactions from last week’s show. Hong Kong retail sentiment weak due to tourist slump and high rentals…

Click here for deeper analysis

INSIGHTS

Hong Kong Show Keeps Holiday Hopes Alive

The Hong Kong Jewellery & Gem Fair gave the diamond industry the assurances it sought for the important fourth quarter holiday season even as buying was cautious. Despite the challenging and changing Far East market environment, it can be considered a good show....

Click here to continue reading

INDUSTRY
HRD Antwerp Parts Company with CEO Macken

HRD Antwerp terminated its contract with chief executive officer Peter Macken after less than 18 months because of “differing strategic views.” The grading laboratory appointed Ari Epstein, CEO of the Antwerp World Diamond Centre, as its interim CEO. Epstein is the fifth person to lead HRD in four and a half years.

India’s Polished Diamond Exports Rise

India’s polished diamond exports jumped 11% to $1.94 billion in August, according to the Gem & Jewellery Export Promotion Council. Polished imports increased 9% to $264 million, leaving net exports 11% higher at $1.68 billion. Rough diamond imports soared 72% to $1.05 billion, while rough exports jumped 39% to $122.4 million. Net rough imports leapt 78% to $928 million. India’s net diamond account, calculated as the difference between net polished exports and net rough imports, slid 24% to $751 million.

Swiss Watch Exports Extend Decline

Swiss watch exports fell 9% to $1.38 billion (CHF 1.35 billion) mostly due to a 26% slide in shipments of precious-metal timepieces, according to the Federation of the Swiss Watch Industry. Items priced at $3,070 (CHF 3,000) or higher dived 14%, offsetting increases in certain less expensive categories. Orders from Hong Kong plummeted 29%, their 18th consecutive month of decline.

Color Diamonds Buoyant at Bonhams Auction

A rare oval-cut, 3.81-carat, fancy intense blue, I1-clarity diamond sold for $3 million (GBP 2.3 million), or $792,450 per carat, weighing in as the top lot at Bonhams jewelry auction in London. The auction totaled $8.4 million (GBP 6.4 million) and was 72% sold by lot. Colorless diamonds featured in the sale included a marquise-cut, 11-carat, D-color, VS1-clarity, type IIa diamond, which sold for $802,052 (GBP 614,500) or $72,913 per carat, triple the lower end of the pre-sale estimate.

RETAIL & WHOLESALE

U.S. Jewelry Store Sales Slide

U.S. specialty jewelry store sales fell in July in line with declines reported by the major U.S. jewelers during the second quarter. Sales fell 2.2% to $2.1 billion across outlets selling only jewelry and watch products during the month, according to the U.S. Census Bureau. Signet Jewelers earlier reported that same-store sales at its U.S.-based Sterling division fell 3.1% in the fiscal quarter that ended July 31, while its Zale U.S. division saw same-store sales decline 2.2%.

Consumers Show Tiffany Some Love Online

Tiffany & Co. was adjudged the “most loved” among 60 retail brands that have a presence on social media by analytics company NetBase. The researchers surveyed more than 430 million posts on social media platforms such as Twitter, Facebook and Instagram over the year to July 27. Amazon was the most mentioned, but none of the brands matched Tiffany for the level of positivity and passion among customers.

Gitanjali’s Sales and Profit Jump

Gitanjali Gems revenue grew 30% to $553.5 million (INR 37.1 billion) in the first fiscal quarter that ended June 30, The Mumbai-based retailer’s jewelry revenue leapt 36% to $440 million, outweighing a 1.6% decline in loose diamond sales to $124.5 million. Net profit for the period almost quadrupled to $8.6 million.


Asian Star Revenue Rises

Asian Star’s revenue increased 2.7% to $127.6 million (INR 8.55 billion) in the first fiscal quarter ending June 30, the Mumbai-based diamond manufacturer reported. Profit fell 3.9% to $2.9 million. Revenue from the company’s diamond segment advanced 4.1% to $118.1 million, outweighing a 12% drop in jewelry revenue to $13.4 million.

MINING

ALROSA Sales Jump in August

ALROSA said it sold $243 million worth of rough diamonds in August, representing a 53% rise from a year earlier when market conditions slumped. Polished sales totaled $6.3 million for the month. The Russian mining company noted the market was stable but maintained a “moderately conservative” outlook. It was the first time ALROSA announced a monthly sales value.

De Beers Opens 54M Ct. Gahcho Kué Mine

De Beers announced the launch of its largest mine outside southern Africa, Gahcho Kué, which is expected to produce about 54 million carats over its lifetime. The deposit is the world’s largest new diamond mine in the past 13 years and is on track for full commercial operation in the first quarter of 2017. The project is a joint venture between De Beers and Mountain Province Diamonds.

Lucapa Finds 104ct. Diamond at Lulo Mine

Lucapa Diamond Company recovered a 104-carat, D-color diamond at its Lulo mine in Angola. The type-IIa stone is the fourth rough diamond above 100 carats extracted from the deposit this year and the fifth since operations began. The company discovered 53 “special” stones above 10.8 carats in the first half of the year and a further 59 in July alone.

Petra’s Profit Rises on Lower Costs

Petra Diamonds reported profit increased 12% to $66.8 million in the fiscal year that ended June 30 as improved efficiencies and cost controls offset a 6% decline in rough diamond prices. Revenue increased 1% to $430.9 million, driven by a higher sales volume. Adjusted mining and processing costs were reduced 5.5% to $257.7 million. A weakening of the South African rand, meaning lower costs when reported in U.S. dollars, also boosted profit.

GENERAL

ALROSA Develops Synthetic Detection Equipment

ALROSA intends to start selling synthetic detection equipment next year. The miner developed the devices in conjunction with the Technological Institute for Superhard and Novel Carbon Materials, a Russian federal body. The contraptions sift out polished diamonds that originate from lab-grown or treated stones or from simulants such as cubic zirconia or moissanite. Weighing less than 1.5 kilograms, the devices can be plugged into a USB port or operated using a smartphone battery.


NDT Produces Biggest Synthetic Blue Diamond

New Diamond Technology (NDT) unveiled a 10.07-carat lab-grown diamond that it claims is the world’s largest polished blue synthetic diamond. The emerald-cut, fancy deep blue, SI1 stone was graded by the International Gemological Institute (IGI) in Antwerp and put on display at the Hong Kong Jewellery & Gem Fair earlier this month.

Rarity Calculator Launched for Color Diamonds

The Fancy Color Research Foundation (FCRF) unveiled a Fancy Color Rarity Evaluator to determine the scarcity of a fancy color diamond. The calculator provides an estimate for the number of diamonds mined each year, allocating a rarity level ranging from common to super-stone. The FCRF also plans to introduce “rarity certificates” for select jewelry before the end of 2016.

Second Jewelry Summit Scheduled for Tucson

The second Jewelry Industry Summit to advance sustainability and responsible sourcing initiatives will take place January 29 to 30 in Tucson. The forum hopes to build on the inaugural summit held earlier this year in New York where attendees committed to develop numerous project ideas. Goals of the upcoming include assessing which programs are effective, reviewing progress made on the initiatives already in place and developing a shared vision for sustainable business and responsible sourcing.

ECONWATCH
Diamond Industry Stock Report

Mining companies led gains among diamond and jewelry companies listed on the financial markets this week. Anglo American (+14%) enjoyed the sharpest increase after Barclays upgraded its rating on the stock and subsidiary De Beers opened a new mine in Canada. Petra Diamonds shares rose (+8.1%) on encouraging fiscal year earnings. Europe’s luxury retailers LVMH (+5%) and Richemont (+6.3%) gained, partially reversing the slump in share prices due to a cautious outlook for this year.

View the detailed industry stock report
Sep 22 (11:15 GMT) Sep 15 (11:15 GMT) Chng.
$1 = Euro 0.89 0.89 0.00
$1 = Rupee 66.64 67.00 -0.36
$1 = Israel Shekel 3.76 3.78 -0.02
$1 = Rand 13.48 14.29 -0.81
$1 = Canadian Dollar 1.30 1.32 -0.02

Precious Metals Chng.
Gold $1,334.85 $1,321.47 $13.38 1.0%
Platinum $1,052.00 $1,034.75 $17.25 1.7%
Silver $19.90 $19.00 $0.90 4.7%

Stock Indexes Chng.
BSE 28,773.13 28,412.89 360.24 1.3%
Dow Jones 18,293.70 18,034.77 258.93 1.4%
FTSE 6,926.89 6,687.54 239.35 3.6%
Hang Seng 23,759.80 23,335.59 424.21 1.8%
S&P 500 2,163.12 2,125.77 37.35 1.8%
_______________
Múdry sa teší objaveniu pravdy, hlupák falošnosti.
Moderátor
Rapaport Weekly Market Comment September 29, 2016


Diamond market stable. Positive sentiment in the trading centers despite lower than usual holiday orders. U.S. retailers driving demand but consumers cautious amid election uncertainty. Chinese jewelry demand steady ahead of National Day festival (Oct. 1). Polished inventory rising as manufacturers raise production before Diwali vacation (Oct. 30). Steady prices but weaker assortments reported at relatively small De Beers Oct. sight. Rapaport offices will be closed on Monday and Tuesday (Oct. 3-4) due to Rosh Hashanah. Best wishes to all for a happy, healthy, peaceful and prosperous Jewish New Year.


RapNet Data: September 29

Diamonds 1,258,329
Value $7,944,164,659
Carats 1,340,019
Average Discount -30.46%

www.rapnet.com



The RapNet Diamond Index (RAPI™) is the average asking price in hundred $/ct. of the 10 percent best priced diamonds, for each of the top 25 quality round diamonds (D-H, IF-VS2, GIA-graded, RapSpec-A3 and better) offered for sale on RapNet - Rapaport Diamond Trading Network.

Get Current Price List | Subscribe to Rapaport | Join RapNet

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Sep-Oct 28-7 Wed-Fri
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QUOTE OF THE WEEK
The diamond business generally has been quite slow to adapt. People need to think very differently in the future.

Bruce Cleaver, CEO of De Beers, speaking to the Financial Times

MARKETS

United States: Dealers cautious as trading slow for this time of year. Presidential election adding to uncertainty. Inventory rising with new Indian supply outpacing sales before Diwali break…

Belgium: Positive sentiment continues after Hong Kong show. Steady demand for 0.30 to 3 ct., D-H, VS2-SI, VG+ diamonds. Improving melee demand…

Israel: Upbeat mood despite cautious trading after Hong Kong show. Dealers filling orders before Oct. Jewish holiday period…

India: Polished trading stable with steady demand for stars and melee for the U.S. market. -2’s weakest melee category. Steady demand for 0.30 to 2 ct., D-J, VS-SI diamonds…

Hong Kong: Regular activity returns after positive September show improves mood. Price sensitive Chinese buyers driving demand…

Click here for deeper analysis

INDUSTRY

Top Diamond Lot Fails to Sell at Sotheby’s NY

Sotheby’s Important Jewels sale in New York garnered $9 million as its headline piece failed to find a buyer. Bids for the oval, 27.35-carat, D-color, VS2-clarity diamond and platinum ring did not meet its reserve price after Sotheby’s estimated it would sell for $2 million to $2.5 million, or up to $91,408 per carat. The auctioneer did not disclose the highest bid it received for the stone.

Botswana’s Diamond Exports Extend Decline

Botswana’s rough diamond exports continued a retreat in August, underlining the country’s need to diversify its economy as it celebrates 50 years of independence. Outbound shipments fell 5% to $399.7 million, according to data from the Bank of Botswana.


CAR Set to Increase Diamond Exports

The Kimberley Process (KP) declared three new ‘compliant zones’ in the Central African Republic, meaning diamond exports from those regions can resume after a suspension of more than two years. The KP’s monitoring team approved shipments from the sub-prefectures of Boda, Carnot and Nola in the west of the country. CAR was re-admitted to the KP in May and two shipments have already been made from the Berberati region.

RETAIL & WHOLESALE

U.S. Jewelry Prices Jump in August

The U.S. consumer price index (CPI) for jewelry increased 4% in August from the previous month, according to the U.S. Bureau for Labor Statistics. The reading was 9% higher than a year ago. The August CPI for watches fell 1.5% month on month and rose 6% year on year. The CPI for jewelry and watches combined jumped 2% from July and 8% from a year earlier.

Swiss Watches Face Worrying Time

Swiss watch executives are increasingly pessimistic about the industry’s prospects, according to Deloitte, as timepiece exports slumped to the lowest level in five years in the first half. The proportion of industry leaders who expect the market to go pear-shaped stands at 82%, while 65% are downbeat about the country's main export markets for the next 12 months. Swiss watch exports fell 7% to $9.8 billion (CHF 9.5 billion) in the first six months of the year.

MINING

Sales Slump Highlights 'Despair' at Rockwell

Rockwell Diamonds sales slumped in its fiscal second quarter because of operational and financial management issues. Sales dropped 21% to $7.6 million after group production declined 15% to 4,747 carats during the quarter that ended August 31. A general breakdown in controls, inadequate work planning and the lack of project front-end loading has led to a series of financial management concerns and business risks, newly appointed CEO Tjaart Willemse claimed.

Dominion Sells Largest Ekati Diamond on Record

Dominion Diamond Corp. sold a 186-carat diamond, the largest recovery on record from the Ekati mine, for $2.8 million. The gem-quality stone was found at the Pigeon kimberlite pipe at Ekati in June, before a fire halted operations at the mine. The company suspended mining at the Lynx and Pigeon open pits to save on costs, while it spent $15 million on repairs. The plant returned to full operational capacity September 21.

Lulo Mine Yields Another Massive Diamond

Lucapa Diamond Company recovered a 172.67-carat, D-color, type-IIa diamond from its Lulo mine in Angola. The stone is the fifth diamond above 100 carats found at Lulo this year. A Lucapa rough sale achieved an average price of $1,868 per carat as the miner garnered $4.1 million (AUD 5.3 million) for a parcel of 2,209 alluvial diamonds. The next sale in October will feature the 172-carat stone and a 104-carat diamond recovered earlier this month.

Diamond Miner Spurns South Africa's Richest Man

The board of Trans Hex Group advised shareholders to decline a takeover bid from South Africa’s richest man, after a panel of independent members found the offer undervalues the company. Consultants hired by the independent board members valued the company at $0.59 (ZAR 8) per share, compared with $0.29 (ZAR 3.94) per share offered by a consortium of bidders that included retail tycoon Christo Wiese.


GENERAL

Record Blue Topaz to Go on Show

A 9,381-carat polished topaz will go on display at London’s Natural History Museum from October 19. The world’s largest flawless blue topaz measures 15 centimeters by 10.5 centimeters. Named the Ostro stone, It was treated to give it a vivid blue color. The original rough was discovered 30 years ago by explorer Max Ostro in Minas Gerais, Brazil.

Gemfields Boosted by Rising Emerald Demand

Gemfields’ revenue and profit surged in the past fiscal year, driven by record prices and successful marketing campaigns to raise demand for the colored gemstones. Sales jumped 13% to $193.1 million and profit after tax soared 90% to $23.5 million. Marketing efforts have built up the profile of its Zambian emeralds, Gemfields said


ECONWATCH

Diamond Industry Stock Report

Mining shares mainly gained this past week, led by Gemfields (+21%) after it reported promising results and strong demand for emeralds. U.S., European and Far East retail stocks mostly declined, headed by JCPenney (-4.5%). Australia-listed Michael Hill showed a contrasting performance, its stock soaring (+40%) from a relatively low base.

View the detailed industry stock report
Sep 29 (12:54 GMT) Sep 22 (11:15 GMT) Chng.
$1 = Euro 0.89 0.89 0.00
$1 = Rupee 66.90 66.64 0.26
$1 = Israel Shekel 3.76 3.76 0.00
$1 = Rand 13.80 13.48 0.32
$1 = Canadian Dollar 1.31 1.30 0.01

Precious Metals Chng.
Gold $1,318.62 $1,334.85 -$16.23 -1.2%
Platinum $1,025.10 $1,052.00 -$26.90 -2.6%
Silver $19.04 $19.90 -$0.86 -4.3%

Stock Indexes Chng.
BSE 27,827.53 28,773.13 -945.60 -3.3%
Dow Jones 18,339.24 18,293.70 45.54 0.2%
FTSE 6,921.10 6,926.89 -5.79 -0.1%
Hang Seng 23,739.47 23,759.80 -20.33 -0.1%
S&P 500 2,171.37 2,163.12 8.25 0.4%
_______________
Múdry sa teší objaveniu pravdy, hlupák falošnosti.
Moderátor
Rapaport Weekly Market Comment October 6, 2016

Diamond trading slow over Jewish New Year and China National Day holiday. Chinese demand improving with Sept. gold, silver and jewelry sales +11%. Dealers focused on filling U.S. Christmas orders. Polished prices stable with Sept. RAPI 1 ct. -0.2%, 0.30 ct. +0.3%, 0.50 ct. -0.2%, 3 ct. -0.2%. Polished market squeezed by relatively high rough prices with suppliers preferring to delay sales rather than suffer losses from expensive rough. Rough prices firm as De Beers reports better-than-expected $485M Oct. sales. De Beers, GJEPC to launch generic marketing campaign on Oct. 10 for India Diwali season. Rapaport offices will be closed on Wednesday (Oct. 12) due to Yom Kippur.


RapNet Data: October 6

Diamonds 1,256,944
Value $7,886,363,289
Carats 1,326,300
Average Discount -30.72%

www.rapnet.com

The RapNet Diamond Index (RAPI™) is the average asking price in hundred $/ct. of the 10 percent best priced diamonds, for each of the top 25 quality round diamonds (D-H, IF-VS2, GIA-graded, RapSpec-A3 and better) offered for sale on RapNet - Rapaport Diamond Trading Network.

Get Current Price List | Subscribe to Rapaport | Join RapNet

RAPAPORT ANNOUNCEMENTS

Oct-Nov 26-2 Wed-Wed
Rapaport Single Stone Auction

New York & Israel

View Details November 8-16 Tue-Wed
Rapaport Melee Auction

New York & Dubai

View Details
November 16-23 Wed-Wed
Rapaport Single Stone Auction

New York & Israel

View Details

QUOTE OF THE WEEK
We expect to bring back the excitement to the category and increase consumer awareness about diamonds and prices.

Praveenshankar Pandya, chairman of India's GJEPC, on its new generic marketing campaign with De Beers

MARKETS

United States: Polished trading slow with many businesses closed during Jewish New Year. Dealers focused on filling holiday demand with retail inventories in line with last year…

Belgium: Market quiet with many businesses closed over Jewish New Year. Positive sentiment continues although dealers cautious about U.S. and European holiday demand…

Israel: Bourse closed for three days during Jewish New Year. Dealers focused on filling U.S. holiday orders with good demand for 0.30 to 0.89 ct., D-I, VS-SI2 and 1 to 2 ct., D-I, VS-SI2 diamonds…

India: Polished trading stable with steady U.S. and Chinese demand. Melee improving with very small -2 melee still weak…

Hong Kong: Dealer trading slow with wholesale Chinese businesses closed for week of Oct 1. National Day holiday…

Click here for deeper analysis


RAPAPORT STATEMENT

Diamond Prices Stable in September

Diamond markets were steady in September. Sentiment improved as trading at the Hong Kong show was better than expected even though buyers refrained from large inventory purchases. The polished market was supported by relatively high rough prices as suppliers held polished prices firm, preferring to delay sales rather than suffer losses from expensive rough. The RapNet Diamond Index (RAPI™) for one-carat, GIA-graded polished diamonds declined 0.2% in September. The index dropped 2.7% in the third quarter and is down 2% since the beginning of the year.

Purchase the full Rapaport Monthly Report – October 2016

INDUSTRY

Indian Generic Marketing Campaign to Launch

De Beers and the Gem & Jewellery Export Promotion Council unveiled a generic marketing campaign to promote diamonds and diamond jewelry in India. The program will launch October 10 ahead of the key holiday selling season, targeting women from 25 to 35 with a “hectic lifestyle and craving for romance and pampering,” the GJEPC said. It will initially run for three months on television, print and digital media.


Antwerp Steps Up Battle with Synthetics

Belgium’s diamond industry leaders pledged actively to enforce guidelines set out by the World Federation of Diamond Bourses to combat undisclosed synthetics. Antwerp’s four exchanges will be among the first to implement the instructions from January 1. These include an obligation to provide a clear description of goods on invoices and memo documents. In addition, HRD Antwerp’s M-Screen device for screening melee will be available for free at the bourses.


RETAIL & WHOLESALE

Costco Told to Pay $13.75M to Tiffany

Costco Wholesale was ordered to pay $13.75 million in damages to Tiffany & Co. after selling counterfeit diamond engagement rings bearing the jeweler's name. A Manhattan jury awarded Tiffany $5.5 million compensation and a further $8.25 million in punitive damages. The trial was aimed at determining how much Costco is liable for damages after a court last year ruled Costco had willfully infringed Tiffany’s trademark by selling rings with its iconic name.

Top Lot Fails to Sell Again at Sotheby’s

A jadeite bangle estimated at up to $9 million (HKD 70 million) did not find a buyer at a Sotheby's auction in Hong Kong. The piece was the most expensive item at the sale. Two weeks earlier, the headline lot at the company's New York auction met the same fate when an oval, 27.35-carat, D-color, VS2-clarity diamond and platinum ring failed to hit its reserve price.

Boehmer et Bassenge Boutique to Debut at Christie's

Jewelry designed by Boehmer et Bassenge’s new boutique Maison de Haute Joaillerie will co-lead a Christie’s Magnificent Jewels auction in Geneva on November 15. The top lot is a pair of diamond earrings estimated to fetch $20 million to $30 million. They feature the world’s largest pair of pear-shaped, D-color, flawless diamonds with a symmetrical cut and weigh 52.55 carats and 50.47 carats. At the same auction, Christie’s will offer a pear-shaped, 9.14-carat, fancy vivid pink diamond estimated at $16 million to $18 million.

MINING

De Beers Sales Beat Expectations

De Beers sold $485 million of rough diamonds in its eighth sales cycle of the year, exceeding expectations in a seasonally quiet period ahead of the Diwali holiday in India. While the figure for September is still the lowest for this year, sales soared 57 percent from a year ago when demand hit rock-bottom levels. Sales in the 7th cycle were restated at $639 million. The Diwali vacation in India from October 30 means demand for inventory is lower as manufacturers hold on to fewer goods during the period.

ALROSA’s Monthly Rough Sales Rise to $435M

ALROSA’s rough diamond sales increased to $435.1 million in September amid stronger demand and mirroring results from rival miner De Beers. Polished sales stood at $18.9 million, taking group sales to $454 million. Demand was good in almost all categories of rough, ALROSA’s vice-president Yury Okoemov said.

Lucara Sets Diamond Tender for November

Lucara Diamond Corp. will hold its second “exceptional” stone tender of 2016 from November 7 to 16, featuring at least 12 diamonds with a combined weight of about 1,100 carats. Lucara, which discovered the 1,109-carat Lesedi La Rona last November, also completed the first stage of modifications to its processing plant as part of the upgrade to its Large Diamond Recovery system. This will enable the company to find more thousand-carat diamonds, it said.

ECONWATCH

Diamond Industry Stock Report

Retail stocks were mainly stronger this week, led by Signet (+8.7%) in a week that saw it close a $625 million investment from private equity group Leonard Green & Partners. European share prices were solid, while Hong Kong-based Chow Sang Sang (+5.3%) gained in contrast to otherwise lower industry stocks in the Far East. Petra Diamonds (+7.3%) led mixed mining stocks.

View the detailed industry stock report
Oct 6 (12:25 GMT) Sep 29 (12:54 GMT) Chng.
$1 = Euro 0.89 0.89 0.00
$1 = Rupee 66.75 66.90 -0.15
$1 = Israel Shekel 3.78 3.76 0.03
$1 = Rand 13.83 13.80 0.02
$1 = Canadian Dollar 1.32 1.31 0.01

Precious Metals Chng.
Gold $1,261.95 $1,318.62 -$56.67 -4.3%
Platinum $969.75 $1,025.10 -$55.35 -5.4%
Silver $17.56 $19.04 -$1.48 -7.8%

Stock Indexes Chng.
BSE 28,106.21 27,827.53 278.68 1.0%
Dow Jones 18,281.03 18,339.24 -58.21 -0.3%
FTSE 7,031.56 6,921.10 110.46 1.6%
Hang Seng 23,952.50 23,739.47 213.03 0.9%
S&P 500 2,159.73 2,171.37 -11.64 -0.5%
_______________
Múdry sa teší objaveniu pravdy, hlupák falošnosti.
Moderátor
Rapaport Weekly Market Comment October 13, 2016


Trading centers quiet over Jewish holidays. U.S. stable with good demand for H-K, SI-I1’s before Christmas selling season. Indian buyers looking for deals with rising expectations for Diwali sales after good monsoon season and lower rupee gold prices (-5%). LVMH 3Q jewelry & watch revenue +2% to $966M. U.S. Aug. net polished imports -1% to $240M. Belgium Sep. polished exports -11% to $1.2B, rough imports +39% to $1.2B. DPA launches generic advertising videos targeting millennials. Rapaport offices will be closed Monday and Tuesday (Oct 17-18) and the Rapaport Price List will not be published next week (Oct. 21) due to Jewish holiday of Succot.


RapNet Data: October 13

Diamonds 1,266,599
Value $7,963,703,562
Carats 1,341,918
Average Discount -30.47%

www.rapnet.com



The RapNet Diamond Index (RAPI™) is the average asking price in hundred $/ct. of the 10 percent best priced diamonds, for each of the top 25 quality round diamonds (D-H, IF-VS2, GIA-graded, RapSpec-A3 and better) offered for sale on RapNet - Rapaport Diamond Trading Network.

Get Current Price List | Subscribe to Rapaport | Join RapNet

RAPAPORT ANNOUNCEMENTS
Oct-Nov 26-2 Wed-Wed
Rapaport Single Stone Auction

New York & Israel

View Details
November 8-16 Tue-Wed
Rapaport Melee Auction

New York & Dubai

View Details
November 16-23 Wed-Wed
Rapaport Single Stone Auction

New York & Israel

View Details


QUOTE OF THE WEEK
Maybe we won’t ever get married and maybe we will, but I will spend my future with you.

The line from the DPA's generic marketing video advertisement sums up how it is presenting diamonds to millennials.

MARKETS

United States: Trading sentiment improves for holiday season as DPA launches unconventional video ads focused on millennials who think differently about diamonds and relationships…

Belgium: Trading quiet over Jewish holiday period. Dealers focused on filling U.S. pre-season orders…

Israel: Short week in Israel due to Yom Kippur holiday. Bourse to close Sunday and Monday (Oct. 16-17) with half-day services over rest of the Succot holiday…

India: Market slow with dealers already in festive mode after auspicious Dussehra holiday on Tuesday (Oct. 11). Very few foreign buyers in Mumbai during Jewish holiday period…

Hong Kong: Polished market stable but few buyers from trading centers. Steady demand for 0.30 to 0.50 ct., G-J, VS-SI diamonds…

Click here for deeper analysis

FIVE-MINUTE INTERVIEW

An Industry Perspective

Rapaport’s Avi Krawitz spoke with newly appointed De Beers CEO Bruce Cleaver at the recent Hong Kong Jewellery & Gem Fair. Cleaver maintains short-term caution for the diamond market but outlines some burgeoning opportunities.

Click here to read the interview

INDUSTRY

DPA Campaign Focuses on Imperfect Relationships

The Diamond Producers Association (DPA) launched an advertising campaign that breaks with tradition by featuring imperfect relationships and emphasizing “real” and “precious” human connections. The group released two “provocative” video commercials telling the story of couples on life journeys together as it aims to connect with millennials. In contrast with traditional diamond advertising, which often featured glamorous, perfect models, the ads portray the lives of real people and the warts and blemishes of their relationships.

U.S. Polished Imports Rise

U.S. polished diamond imports jumped to the highest level seen in the seasonally slow month of August in three years. Inbound shipments of polished rose 2.4% to $1.66 billion. Polished imports by weight grew 4% to 906,469 carats, while the average price declined 1.5% to $1,833 per carat. Polished diamond exports, meanwhile, increased 3% to $1.38 billion, driving net imports down 0.7% to $280 million.

U.S. Jewelry Industry Returns to Myanmar

Representatives of the U.S. gem and jewelry industry made their first visit to Myanmar since President Barack Obama said he will lift remaining economic sanctions. The delegation was aimed at re-establishing lines of commerce between the two nations. It was led by American Gem Trade Association president Jeffrey Bilgore and chief executive officer Douglas Hucker, Jewelers of America President and CEO David Bonaparte and Jim Shigley, a seasoned gemologist at the Gemological Institute of Amerika.


Belgium’s Rough Trade Soars

Belgium’s rough trading leapt in September as shipments of uncut diamonds continued to outperform polished. Rough exports soared 61% to $1.42 billion and rough imports surged 39% to $1.21 billion. By volume, rough exports jumped 26% to 10.78 million carats. Net rough imports slumped to negative $212.7 million from negative $14 million a year ago. By contrast, polished exports slid 11% to $1.24 billion, while polished imports declined 5% to $1.28 billion.

RETAIL & WHOLESALE

Sotheby's Expects $3M/ct. for Cartier Blue Diamond

A blue diamond ring will go under the hammer in Geneva next month with an estimated price tag of $15 million to $25 million, or up to $3.1 million per carat. The square emerald-cut, 8.01-carat, fancy vivid blue diamond, named the ‘Sky Blue Diamond,’ will headline Sotheby’s Magnificent Jewels and Noble Jewels auction on November 16. Mounted by Cartier, the diamond also has “excellent” polish and is a type-IIb stone.

LVMH Watch & Jewelry Sales Rise

LVMH Moët Hennessy Louis Vuitton’s revenue from watches and jewelry rose 3% to $2.74 billion (EUR 2.49 billion) in the first nine months of the year as its iconic Bulgari jewelry brand gained market share. “Organic” revenue growth, which assumes a comparable structure and constant exchange rates, was 4%. During the third quarter, watch and jewelry sales grew 3% to $965.8 million, representing a 2% rise in organic revenue.

NRF Predicts U.S. Holiday Sales to Rise

U.S. sales in the upcoming holiday season will increase amid an improvement in jobs and income and stronger consumer sentiment, the National Retail Federation forecast. Revenue is expected to rise 3.6% to $655.8 billion year on year in November and December, beating the 10-year growth average of 2.5%.

Titan Warns of Stagnant Indian Jewelry Demand

India-based Titan Company said demand was weak in the second fiscal quarter as consumers suffered from “consumption fatigue.” The quarter that ended September 30 started off with expectations of improvement because of a “bountiful” monsoon season. But in the end, sales of gold jewelry were sluggish even as studded-jewelry sales beat expectations.

MINING

Lulo Mine Production Hits Record Levels

Lucapa Diamond Company said production from its Lulo mine in Angola reached its highest point yet for both total output and average size in the third quarter. The alluvial mine yielded 8,853 carats in the three months that ended September 30 – representing a 154% jump over the same period a year ago. The average weight of diamonds grew an impressive 62% to 1.9 carats per stone as 137 “specials” above 10.8 carats were extracted.

Stornoway to Sell Renard Rough Ahead of Schedule

Stornoway Diamond Corporation will hold the first sale of diamonds from its Renard mine two months earlier than expected. The sale will start November 14 in Antwerp. First ore from the mine in Québec, Canada, reached the diamond plant July 15, with 111,556 carats produced by September 30. Output included 21 “special” stones larger than 10.8 carats.

GENERAL

New Synthetics Detector Works on ‘All’ Jewelry

DRC Techno launched a device for detecting synthetics which it claims is the market’s first machine that sifts out lab-grown diamonds in all types of jewelry. ‘J-Secure’ identifies synthetics from 0.003 carats to 10 carats. The basic model is designed for retail stores, while the ‘J-Secure plus’ machine is for a company’s purchase office. The equipment picks up diamonds created using chemical vapor deposition (CVD) and high pressure-high temperature (HPHT), the two main methods for growing synthetic diamonds.

SimplexDiam Buys All Items in JSN Liquidation Sale

SimplexDiam purchased all the jewelry lots in the liquidation of JSN Jewellery, the wholesale manufacturing division of Canada-based Ben Moss Jewellers. The sale is the “largest” jewelry liquidation this year, with the goods valued at about $4 million at wholesale cost. The company bought more than 8,500 pieces, mostly in commercial price points below $500 at wholesale.

ECONWATCH

Diamond Industry Stock Report

LVMH (+4.8%) gained this past week on strong sales results, with other Europe-based luxury stocks such as Swatch Group (+7.5%) and Richemont (+7.3%) also strengthening. Gemfields (-7.1%) was the weakest performer of the listed miners, many of which lost value. In the U.S., Birks Group (-11%) headed the declines, while Charles & Colvard (+5.2%) was the strongest performer.

View the detailed industry stock report
Oct 13 (11:03 GMT) Oct 6 (12:25 GMT) Chng.
$1 = Euro 0.91 0.89 0.01
$1 = Rupee 66.90 66.75 0.14
$1 = Israel Shekel 3.81 3.78 0.03
$1 = Rand 14.33 13.83 0.50
$1 = Canadian Dollar 1.32 1.32 0.01

Precious Metals Chng.
Gold $1,259.17 $1,261.95 -$2.78 -0.2%
Platinum $942.30 $969.75 -$27.45 -2.8%
Silver $17.55 $17.56 -$0.01 -0.1%

Stock Indexes Chng.
BSE 27,643.11 28,106.21 -463.10 -1.6%
Dow Jones 18,144.20 18,281.03 -136.83 -0.7%
FTSE 6,974.67 7,031.56 -56.89 -0.8%
Hang Seng 23,031.30 23,952.50 -921.20 -3.8%
S&P 500 2,139.18 2,159.73 -20.55 -1.0%
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