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Maloobchodná cena dnes bez DPH IF D 28854 USD za karát.

Grofik, ty čaruješ ako smerácky minister financií

RapNet Data: September 17
Diamonds 1,321,787
Value $8,688,037,141
Carats 1,405,830

Average price $6.180/carat

The RapNet Diamond Index (RAPI) has been revised to reflect the average price of the 10 best priced diamonds in each category.

Od začiatku hovorím o priemernej cene jednokarátového diamantu a ty vytiahneš D IF a D Flawless. Takže žiadna zlá interpretácia grafu. Skôr tvoja dezinterpretácia. Alebo sa diamanty predávajú len v kvalite D IF ?

Nečarujem ,ale diamanty sa predávajú podľa kvalitatívneho zatriedenia nie podľa priemeru ceny za jeden karát.
Celkove je 124 zatriedený .

Rapaport sú veľkoobchodné nie maloobchodné ceny.

Mercedes, Volvo atď..., je iná výrobná cena iná predaj ... to len na okraj problému pre lepšie pochopenie.

Grofik, ten graf slúži na pochopenie globálneho cenového trendu pri obchodovaní na trhu s diamantami. Ten vystihuje veľmi presne. To, že sa nevzťahuje na Koh-I-Noor, či diamant Nádej je asi všetkým jasné. Samozrejme chápem, že pre predajcov diamantov je veľmi nepríjemný ba priam nevysvetliteľný.

Pravdepodobne budeš so mnou súhlasiť, že nikoho nezaujíma "maloobchodná" cena zlata v záložni v Petržalke, ale všetci sledujú "veľkoobchodnú" cenu na burze. To len na okraj problému pre lepšie pochopenie

Fidzi cena zlata ,platiny a iných drahých kovov sa určuje poväčšine pri čistote 99,95 - 99,99 ostatné čistoty existujú napr.99,999 až 99,999999 ,ale sú extrémne drahé .

Od čistoty 99,95 sa odvíja cena nadol podľa rýdzosti ,
pri diamantoch súhlasím je priemerná cena zahrňujúca od farby D po Z a čistoty IF po SI3 štatisticky je od 2-3,5% top kvalita atď... preto pokiaľ poznáš systém je ľahšie predať 5 ct. brúsený diamant najvyššej kvality ako 5 ct. priemernej a nižšej kvality .
Ale to investori klopú iným ľuďom na dvere určite nie mne.

Diamanty čo si uviedol sa riadia úplne inou cenou ako bežný rapaport ,ale to nie len diamanty , rubíny, smaragdy, alexandrity atď , atď....

Tento som videl pred dvomi mesiacmi



a tento minulý rok



Koh-I-Noor a Cullinan mám tiež nakukaný, ale to bolo už dávnejšie... takže veľká štvorka je za mnou

Celkove bolo známych cca 280 výnimočných diamantov cca 10% môj skromný odhad , každý rok sa číslo zvyšuje to nepočítam farebné diamanty.

Rapaport Weekly Market Comment September 25, 2015


Hong Kong show OK but Chinese demand slow before Oct. 1 Golden Week. Polished buyers selective and making low offers. Certs slow with better demand for lower quality parcels. Polished production significantly reduced as cutters shrink existing inventory. De Beers says 2014 global production -3% to 142M ct., diamond jewelry demand +3% to $80B. Russia’s 1H rough exports -16% to $2.1B, production +8% to 18.5M cts. Petra Diamonds FY revenue -10% to $425M, profit -12% to $60M. Sotheby’s expects up to $4.6M/ct. for cushion-shape, 12.03 ct., fancy vivid blue, IF diamond. THE RAPAPORT PRICE LIST WILL NOT BE PUBLISHED ON OCT. 2 DUE TO JEWISH HOLIDAY OF SUCCOT.


RapNet Data: September 24

Diamonds 1,322,003
Value $8,624,848,174
Carats 1,397,556
Average Discount -27.80%

www.rapnet.com

The RapNet Diamond Index (RAPI) has been revised to reflect the average price of the 10 best priced diamonds in each category.

Get Current Price List | Subscribe to Rapaport | Join RapNet

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October 13-21 Tue-Wed
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New York & Dubai

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October 14-21 Wed-Wed
Rapaport Single Stone Auction

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QUOTE OF THE WEEK
There is reason to be optimistic, even though conditions do, of course, remain challenging overall.

Ernie Blom, president, World Federation of Diamond Bourses


MARKETS

United States: Diamond suppliers have not yet reported the usual rise in activity associated with the pre-Christmas holiday period. Still, demand is steady and there is some optimism that stronger orders will start to flow in the coming weeks...

Belgium: Activity in Antwerp was fairly subdued this week as the market focused on the Hong Kong Jewellery and Gem Fair. The mood has improved since the beginning of September when dealers returned from the summer break...

Hong Kong: The all-important September show met dealers’ low expectations with steady activity but lower visitor traffic and transactions than in previous years. The mood was relatively positive as dealers embraced the opportunity...

India: Sentiment remains weak in Mumbai as the Hong Kong show didn’t inspire renewed confidence among the local trade. There is business being conducted but transaction volumes...

Israel: The past week was a fairly rushed one for many Israeli diamantaires who traveled to the Hong Kong show between the Jewish holidays of Rosh Hashanah and Yom Kippur. Consequently, activity in the Israel Diamond Exchange was light...


INDUSTRY

De Beers Highlights India’s Role in Countering Flat Growth

The world’s largest diamond miner sees the industry’s biggest opportunity in India, given its burgeoning economy and emerging middle class, based on The De Beers Group of Companies’ Diamond Insight Report 2015.

The company reported that world demand for diamond jewelry in 2014 rose 3% to more than $80 billion for the first time, as global rough diamond production rose 6% to $19 billion.

Meanwhile, India’s consumer diamond market has achieved almost uninterrupted growth over the last 20 years and is now one of the world’s largest consumer markets. At the same time, retail behavior is changing as chains are set to grow in significance and lead the way in online development, both as sales channels and as a means of researching future purchases, De Beers concluded.

Diamond demand grew in all five of the top-consuming markets – the U.S., China, Japan, India and the Gulf Cooperation Council nations, which account for 75% of global purchases, according to the report. Elsewhere, growth was stymied by a strong dollar.

Russia’s Rough Diamond Exports Slide

Russia's rough diamond exports fell 16% year on year to $2.13 billion in the first half of 2015, Itar-Tass reported, citing the country’s Ministry of Finance. By volume, exports declined 10% to 17.83 million carats. Rough imports rose 70% to $46.5 million as volume more than tripled to 28,000 carats.

The country’s diamond production rose 8.3% to 18.5 million carats in the first half, with the value of production up 22% to $2 billion. The ministry also reported that the average price of production increased by 13% to $109.13 per carat, an estimate based on Finance Ministry pricing, which does not correspond with market prices but rather follows the insurance value of the diamonds, per Interfax.

ALROSA, which accounts for the bulk of Russia’s diamond production, reported that its production grew 13% to 18 million carats in the first half, while the average price of its sales have fallen 6% since the beginning of the year. The company has since reduced prices by 8% to 10% and allowed its clients to defer 50% of their allocated supply at the September sale, sources confirmed with Rapaport News.

Diamond Industry’s Outlook Heading into Holiday Season Seen Positive

The outlook for the global diamond trade could be positive in the upcoming holiday season given the early indications that the Hong Kong Jewellery and Gem Fair has been solid and as the world’s two main producers cut prices.

Last week, ALROSA said it would reduce prices by up to 10 percent at its September sale, according to a press statement issued by the World Federation of Diamond Bourses (WFDB). That followed De Beers' decision to slash prices by similar levels at its August sight.

Such steps are bringing down prices to more realistic levels, the statement released from Antwerp said on September 22. In addition, the much-needed cuts in polished production have been carried out, particularly by the Indian manufacturing sector.

“I feel there is reason to be optimistic, even though conditions do, of course, remain challenging overall,” Ernie Blom, president of the WFDB, which has 30 affiliated bourse members, said. “The Hong Kong show, due to the global nature of its exhibitors, buyers and visitors, serves as a useful barometer of industry sentiment, so it is very promising that demand at the fair was stable.”

RETAIL & WHOLESALE

U.S. Jewelry Demand Shows Improvement in July

U.S. sales of fine jewelry and fine watches increased by 3.5 percent in July, according to the latest data from the U.S. Department of Commerce.

Specialty jewelers, stores with a majority of their revenue from jewelry and watch sales, showed a 2.9 percent sales increase in the month. Jewelry sales through larger, big-box merchants such as Wal-Mart and Costco rose an estimated 3.9 percent in July. Historically, July sales are less than 8 percent of the industry’s annual sales, with few promotional and sales events.

The Commerce department revised monthly sales data for May and June, which had shown either sales declines or very small gains for the total industry. Data for both specialty jewelers and the total U.S. jewelry industry were revised and while specialty jewelers’ June sales gains now reflect a more modest increase.


Independents’ Share of Diamond Jewelry Market Slips

Independent jewelers’ share of the U.S. diamond jewelry market has fallen, with chains and online grabbing a larger piece of the pie, according to the recently released De Beers’ Market Insight Report.

Single-store independents remain the biggest sales channel in the diamond jewelry market, but not by much, according to De Beers, which found that those independents accounted for 35% of diamond jewelry sales in 2014 and national chains ranked close behind with 31%. Before the recession of 2007, however, the industry saw a far greater spread, with independent jewelers claiming 56% of the market and national chains just 25%.

Meanwhile, small and medium-size chains — defined as chains with between two and 10 stores — saw their market share expand from 2% in 2007 to 11% last year.

Tara Jewels Enters Exclusive Agreement with Sterling

India’s Tara Jewels signed an exclusive manufacturing and supply deal with Sterling Jewelers Inc., a part of Signet Group, for the designer brand Angel Sanchez. The brand’s offerings have been assigned an initial value of more than $4.4 million, including designs that are being preliminarily tested in about 60 stores.

Sterling Jewelers Inc. has approximately 1,400 stores in the U.S. Tara Jewels designs and manufactures jewelry and has retail operations in India.


Tiffany & Co.’s Grows Global Footage

Tiffany & Co. is seeking to enhance its customers’ in-store experience by increasing its store space at the rate of 2% to 3% a year and improving client service, Ralph Nicoletti, the company’s CFO and executive vice president, told investors at the Stifel 2015 Consumer Conference in New York.

Nicoletti said that Tiffany & Co. had targeted mid- to high-single-digit sales growth, improved operating margins and doubled-earnings growth “over the long term.”

Tiffany opened new stores in 2014 in Moscow and on the Champs-Élysées in Paris, and this year opened locations in the Miami Design District and Shanghai. The planned annual increase in global footage is to be enacted “for the foreseeable future,” according to Nicoletti. The retailer opened 11 new stores during the fiscal year that ended on July 31, 2015.

Nicoletti also stressed the importance of “vertical integration” within the company’s supply chain and said it now internally manufactures more than half of the products it sells and sources a “high percentage” of its diamond requirements in a rough form from producers.


Ivanka Trump Jewelry Seller Ordered to Pay $2.4M

Madison Avenue Diamonds, the company behind the Ivanka Trump Fine Jewelry brand, has been ordered by the New York State Supreme Court to pay $2.375 million plus interest to De Beers sightholder KGK Jewelry following a long-running dispute.

Madison Avenue Diamonds had claimed that it was not obliged to complete the payment of $3 million in a series of installments to KGK that had been agreed upon by the two parties when they terminated a supply arrangement in 2012.

Madison Avenue Diamonds argued that KGK’s failure to return certain computer design files before the agreed-upon 45-day deadline, following the closure of their contract, had constituted a “material breach” and that Madison Avenue Diamonds was therefore relieved of its financial obligations.

It took KGK 46 days to send the files back. Judge Charles E. Ramos ruled that Madison Avenue Diamonds had not been released from its obligation to pay because the agreement did not indicate that “time was of the essence” and there was no sign that Madison had been damaged by the one-day delay.

The court rejected Madison Avenue Diamonds's arguments that the jewelry KGK provided was “of substandard quality,” which KGK described as a “belated attempt to amend its claims and defenses.”

MINING

Botswana Diamonds, ALROSA Start Orapa License Work

Botswana Diamonds reported that work is underway on three prospecting licenses in the Orapa region of Botswana that are part of a joint venture between the African exploration group and ALROSA.

Heavy concentrate sampling and reconnaissance work have begun, to be followed by heavy concentrate sampling to evaluate kimberlite indicator minerals and how close they are to potential primary sources.

Following this venture, the team will carry out verification sampling on smaller licensing areas in the Gope region of Botswana, with the aim of defining potential new drill targets.

Petra Diamonds’ Profit Drop

Petra Diamonds reported double-digit percentage drops in both profit and revenue for its fiscal year that ended on June 30, on the back of a weakened market and low prices. The company’s revenue fell 10% to $425 million, while its adjusted net profit after tax was down 33% to $62.8 million.

CEO Johan Dippenaar also attributed the decrease to the reliance of Petra’s underground mines on “mature, diluted mining areas,” but said this drop and current negative market conditions were partly offset by currency weakness. In a later conference call with investors, Dippenaar said the impact of lower rough diamond pricing was partially hedged by the positive impact of the weaker rand – down 10% against the dollar – on the company’s cost base.

GENERAL

AGTA Elects New Officers

The American Gem Trade Association (AGTA) announced its newly elected board of directors, who will take office in February 2016 for three-year terms. Jeffrey Bilgore of Jeffrey Bilgore LLC was elected president. Cynthia Renée (Marcusson) of Cynthia Renee Inc. and Avi Raz of A & Z Pearls Inc. were re-elected to the board. Kusam Malhotra of K & K International and Jeff Mason of Mason-Kay Inc. were newly elected members.

Continuing board members include: Gerry Manning, vice president; Pramod Agrawal, treasurer; Bruce Bridges; Charles Carmona; William Heher; Gina Latendresse; Niveet Nagpal; Robert Van Wagoner; Simon Watt and Larry Woods.


Sotheby's May Fetch Record $55M for Blue Moon Diamond

The Blue Moon, a fancy vivid blue diamond weighing 12.03 carats and described by the Gemological Institute of America (GIA) as “internally flawless,” could sell for a record $55 million (EUR 47 million) when it goes up for auction on November 11 in Geneva, Sotheby's announced.

The auction house estimates that its sale price will range between $35 million and $55 million, which, at the higher end, would set a record for any diamond sale.

The diamond will be exhibited in Hong Kong, London and New York ahead of the sale. The Blue Moon, discovered in South Africa, will be the largest cushion-shaped stone in that category to ever appear at auction.


Amnesty Reports on CAR Blood Diamonds

Amnesty International announced that it will publish a new report on the diamond industry that focuses on the Central African Republic (CAR), where illicit trade continues unabated amid sweeping conflict. Research for the report was conducted in the CAR, neighboring countries and the diamond-trading centers, Antwerp and Dubai, according to an Amnesty announcement.

The findings revealed systematic failures in preventing the trade of “blood diamonds,” according to Amnesty International. Due out September 30, the report will address illegal and unethical practices across the sector, including how armed groups in the CAR, as well as diamond traders in both the CAR and global trading centers, profit from illegal and unethical activity.



Edinburgh Assay Brings Diamond Certification to Heathrow

The Edinburgh Assay Office introduced a new diamond certification option for its Hallmarking in Transit service at London’s Heathrow Airport. The service, to be provided by Solitaire Gem Labs (SGL), will enable precious metal jewelry importers from outside the U.K. to have their goods hallmarked and certified at one secure location as part of the import process.

Scott Walter, the CEO and assay master of the Edinburgh Assay Office, explained, “This further simplifies the logistics process for importers and provides the flexibility to source product from multiple locations whilst retaining a single, logistically efficient route to market.”


Five Firms Awarded RJC Certification

The Responsible Jewellery Council (RJC) awarded five companies the Christian Dior certification for meeting the organization’s “highest ethical, human rights, social and environmental standards.”

The firms include the Gem Certification & Assurance Lab, a diamond, gemstone and jewelry certification laboratory headquartered in New York; French polished diamond distributor Messika Diamonds; Paris-based retailer Christian Dior Couture; precious metals provider Cookson Métaux Precieux – CooksonCLAL and Indian fancies manufacturer Ashwin Diamonds.


German Designer Wins Gem Empathy Award at IJL

The Gemmological Association of Great Britain (Gem-A) named Frankfurt-based Marina Jacob’s ‘Crushed Ice’ ring as the winner of this year’s Gem Empathy Award. Jacob, a designer and manufacturer of fine diamond and gem set jewelry, designed the stunning ring with a 13.83 ct. green beryl and 30 baguette diamonds.

Gem-A’s Gem Empathy award is presented annually on the last day of International Jewellery London to the exhibitor displaying, in the opinion of the judges, a single piece or collection of jewelry that makes captivating use of one or more gemstones and provides accurate ethical descriptions as well as displaying creativity and imagination.


ECONWATCH

Diamond Industry Stock Report

Industry retailer stocks broadly declined this past week with the exception of Birks Group (+12.7%), which bounced back last week's 18-month low. Mining shares also declined, led by Petra Diamonds (-16.8%) and De Beers parent Anglo American (-16.2%). Platinum (-7.4%) fell to a five-year low.
View the detailed industry stock report.
(12:00 GMT) Sept. 24 Sept. 17 Chng.
$1 = Euro 0.8886 0.8829 0.006
$1 = Rupee 66.22 66.171 0.0
$1 = Israel Shekel 3.9508 3.8707 0.08
$1 = Rand 13.9899 13.3706 0.62
$1 = Canadian Dollar 1.338 1.3199 0.02

Precious Metals
Gold $1,136.07 $1,117.71 $18.36
Platinum $934.31 $964.40 -$30.09
Silver $14.79 $14.86 -$0.07

Stock Indexes Chng.
BSE 25,863.50 25,963.97 -100.47 -0.4%
Dow Jones 16,279.89 16,739.95 -460.06 -2.7%
FTSE 5,989.42 6,216.86 -227.44 -3.7%
Hang Seng 21,095.98 21,854.63 -758.65 -3.5%
S&P 500 1,938.76 1,995.31 -56.55 -2.8%
Yahoo! Jewelry 1,001.53 1,009.66 -8.13 -0.8%

Rapaport Weekly Market Comment October 9, 2015


HK’s Golden Week weak as mainland Chinese tourists stay home. Buyers waiting for price cuts from sellers who need cash. Israel and New York slow as dealers return from holidays. India remains slow, particularly 1.5 ct.+ goods. Commercial goods better than high end with 0.50-0.75-ct., H-I moving better than 1 ct., D-F, VVS goods. Slight price reductions at De Beers sight offset by changes in size assortments. Buyers not confident with manufacturing down about 50% in lead-up to November’s Diwali festival. Belgium trade showing some signs of life after sluggish September, with increased U.S., European demand. Bharat Bourse bans synthetics. U.S. polished diamond imports +4% in August.


RapNet Data: October 8

Diamonds 1,299,251
Value $8,552,402,454
Carats 1,397,886
Average Discount -28.46%

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The RapNet Diamond Index (RAPI) is the average price for the top 25 diamond qualities (D-H, IF-VS2). It is based on the 10 best priced diamonds for each quality.

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RAPAPORT ANNOUNCEMENTS
October 12-13 Mon-Tue

IWJG Show

Brooklyn, NY

View Details
October 13-21 Tue-Wed

Rapaport Melee Auction

New York & Dubai

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October 14-21 Wed-Wed

Rapaport Single Stone Auction

New York & Israel

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QUOTE OF THE WEEK
We are not opposed to trading in synthetic/laboratory-created diamonds and accept that there could be a market for them.

Ernie Blom, president, World Federation of Diamond Bourses


MARKETS

United States: New York diamantaires waiting for signs of price stability before stocking up for holiday season. Retail sales of round diamonds under 1 ct. remain strong with continuing demand for ovals and cushions...

Belgium: Antwerp showing some signs of improvement from September, with European and U.S. buyers filling anticipated holiday needs...

Hong Kong: Golden Week weak as strong foot traffic didn’t turn into sales as Mainland tourists stayed home...

India: Market slow and uncertain as international buyers wait for price stability. Manufacturers’ profit under continuous pressure as De Beers fails to significantly reduce rough prices...

Israel: Market waking up as diamantaires return from several weeks of Jewish holidays. Better demand for commercial goods than high quality certs...

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INSIGHTS

Look to the Holidays to Gauge the Trade’s Foreseeable Future

If things in the diamond trade were business as usual, strong sales during Christmas and the Chinese New Year in early February would reduce retail inventory and by March bring fresh orders for goods throughout the distribution chain...

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INDUSTRY

U.S. Polished Diamond Imports +4% in August

U.S. polished diamond imports increased 3.9% year on year to $1.62 billion in August. The average price for polished goods rose 5.3% to $1,861 per carat, according to Commerce Departmentdata releasedon October 6.

Polished exports fell 16% to $1.34 billion, resulting in a surplus of $281.6 million compared with a deficit of $33 million in August 2014.

Rough diamond imports more than doubled in August to $43 million, while rough exports rose 16% to $31.7 million, leaving net rough imports at $11.3 million compared with $7.8 million last year. The net diamond account shows imports exceeded exports by $292 million compared with last year’s $41.7 million deficit.

During the first eight months of the year, polished diamond imports rose 1% compared to the same period in 2014 to $16 billion and polished exports fell 12% to $12.9 billion.

Bharat Bourse Bans Synthetic Diamond Dealing

The Bharat Diamond Bourse (BDB) approved measures to stem the sale of synthetic diamonds on its premises going forward, requiring that only "natural diamonds" be sold at the Mumbai facilities, Rapaport News learned.

The action was approved by "an overwhelming majority" of the bourse’s members at its annual general meeting, market representative Shaji Narayanan confirmed in an email on October 1, noting that BDB is the “first and only diamond bourse to declare its entire premises as a natural diamond zone.”

The new rule applies to all synthetics, including chemical vapor deposition (CVD) stones. The disciplinary actions that would be taken against dealers who violate the new measures were not specified.

WFDB Supports Bharat Ban, Ethical Synthetics Trade

The leadership of the World Federation of Diamond Bourses (WFDB) isn't opposed to the synthetic diamond trade, but also takes no issue with Bharat Diamond Bourse’s decision late last week to ban laboratory-made stones, including chemical vapor deposition (CVD) stones.

WFDB president Ernie Blom commented in a statement that “each WFDB-affiliated exchange is within its rights to decide on its policy on the issue,” clarifying that “the WFDB is not opposed to the trade in such stones as long as they are fully disclosed.”

“Each of our member bourses, of course, has full decision-making power regarding which types of diamonds can be bought and sold within their premises as long as the decisions are made in line with the WFDB's regulations,” Blom explained.

“We are not opposed to trading in synthetic laboratory-created diamonds and accept that there could be a market for them. We only insist that such stones are fully disclosed so that the trade and consumers know exactly what they are being offered. This is critical in ensuring consumer confidence.”

De Beers: China’s Polished Diamond Sales to Jump 3% to 5%

China’s polished diamond sales will grow by 3% to 5% this year to about $290 million, De Beers Stephen Lussier, head of the Forevermark brand, said in a Reuters report, reversing an earlier company prediction of flat revenue for 2015.

Lussier explained that “the bridal business and the gifting business, particularly amongst younger consumers in China, is really today the main growth area.”

Forevermark’s like-for-like sales hit a record high in August 2015, after Chinese Valentine’s Day.

Sarine Launches Super-Fast Mapping Technology

Sarine Technologies released a system for inclusion mapping small diamonds called Meteor that could increase the speed of scanning to 220 stones per day.

The Israeli equipment maker, which focuses on technology for the evaluation, planning, processing, finishing, grading and trade of diamonds and gemstones, said that the new system was designed to provide “faster, cost-effective” inclusion mapping for the 0.25- to 0.85-carat segment of rough diamonds.

Israel Bourse Gears Up for ‘Rough October Fest'

The Israel Diamond Exchange (IDE) will host a “Rough October Fest” featuring numerous rough diamond tenders and sales in the Ramat Gan diamond trading complex.

Rio Tinto will open the proceedings with its tender, to be held in the trading hall from October 11 to 15. The tender will offer 10.8-plus-carat and fancy colored rough diamonds through a sealed-bid auction system.

Tzoffey’s tender will run from October 18 to 26, with an all-African sale of 5- to 10-carat goods, along with special 10.5-plus-carat stones. De Beers will hold a sale of 5-plus-carat and 10-plus-carat goods from October 25 to 27.

A “Blue-White Diamond Dealing Day” will also take place in the IDE trading hall, with traders offering rough diamonds for inspection and immediate sale, as well as polished goods.

Dubai Diamond Exchange Sets Financing Seminars

The Dubai Diamond Exchange (DDE) will hold an inaugural series of seminars to raise awareness of diamond-financing options and explore ways in which the emirate’s trade infrastructure and financial institutions can support the industry.

The first of three Dubai Diamond Finance seminars will be organized at the Almas Tower in Jumeirah Lakes Towers on October 25. The event will host representatives from diamond manufacturers, including Dilip Mehta, chief executive officer of Rosy Blue, and Aditya Gandhi, director of Azure Diamonds.

While “there is a drought when it comes to finance options available to diamond buyers on a global scale," local lenders in Dubai are making finance options available, Mehta said.

Davy Blommaert, unit head for precious metals and diamonds at the National Bank of Fujairah, and Peter Meeus, executive chairman of the Dubai Diamond Exchange, will chair the discussions.

RETAIL & WHOLESALE

Sotheby’s Sells $18.4 Million of Diamonds

Sotheby’s sold $18.4 million worth of diamonds at its recent two-day Important Jewels sale on September 23 and 24 in New York, including an emerald-cut, 30.15-carat, F-color diamond ring purchased for $2.6 million, Blouin Artinfo reported.

A number of lots from the estate of Dolores Sherwood Bosshard fetched a total of $2.3 million, or nearly double the pre-sale estimate, including a sapphire and diamond stylized bow brooch by Van Cleef & Arpels dating back to 1937, which sold for $162,500.

A platinum bracelet by Harry Winston, circa 1960, with diamonds weighing a total of 101 carats and engraved on the bracelet cluster-style, was auctioned for $424,000. A cushion-cut, 43.25-carat sapphire framed by round and marquise-shaped diamonds weighing 2.90 carats sold for $802,00.


Luk Fook CFO Not ‘Optimistic’ About Golden Week Sales

While Luk Fook stores have seen an increase in store traffic in the initial days of China’s Golden Week festival, Kathy Chan, the retailer’s executive director and CFO, cautioned that “I don’t feel we should be optimistic about the figures” in an interview with Bloomberg Television.

Chan added that gem and jewelry sales in Mainland China are offsetting a current downturn in Hong Kong and Macau. The majority of Luk Fook’s more than 1,383 stores are located on the mainland.

Michael Hill Sales +9.9%, Same-Store Sales +6%

Michael Hill reported a 9.9% increase in sales to $80.8 million (AUD 112.5 million) for the three months through September, while same-store sales rose 6% to $76.8 million.

The New Zealand-based retailer has also released results for the Emma & Roe brand for the first time, with same-store sales rising 44.6% to $813,964. It said the directors were pleased with sales of the brand, which is still in the second year of a trial phase, and added that it plans to open an two new stores in the coming months, bringing the total to 11.

This would take the brand to a critical mass in the South East Queensland market and give the company the best indication of its commercial viability, it commented.

Meanwhile, the group said in a statement that Michael Hill New Zealand same-store sales grew 8.6 per cent in local currency to $15.6 million (NZD 23.6 million), while same-store sales for the main brand in Canada nudged up 2.9% to $12 million (CAD 23.6 million). The group opened three new Michael Hill stores, giving a total of 291 stores trading at the end of the quarter.

U.S. same-store sales for the brand were up by just 1.2% to $2.1 million.

MINING

Firestone’s Sale of Botswana Assets Hits a Snag

Firestone Diamonds stated that the sale of its Botswana operations to Tango Mining Ltd. met with an obstacle after Tango said it was unable to pay the deposit required by the sale agreement.

Tango had been required to pay $300,000 into an escrow account as a deposit for the $7.7 million acquisition of Firestone’s Botswana assets and, after failing to do so, requested an extension of the deal’s timetable to complete its fundraising.

Firestone said it is holding talks with Tango to consider the request and that it will provide an update once the talks are completed or terminated.

Botswana’s Rough Exports -15%

Exports of rough diamonds from mines in Botswana fell 15% to $1.7 billion (Pula 18 billion) in the first half, while the country’s August exports totaled $358.5 million, according to the Bank of Botswana.

Most of the exports came from Debswana, a joint venture between the Botswana government and De Beers. Debswana produced 4% less year on year in the first half, according to Reuters. The company had previously cut its full-year production target to 20 million carats from 23 million carats.

Diamond exports contribute 30% to the country’s gross domestic product, but diamond demand has slowed since late 2014 due to the dollar strengthening against the Pula and liquidity problems.

Lucapa Confirms Kimberlite at Angola Project

Lucapa Diamond Company identified the presence of confirmed kimberlite material at its Lulo project in Angola. The miner called the identification a “significant outcome” of its pitting and grade control programs around the Mining Block 8 alluvial diamond field.

Lucapa also announced that pitting has successfully expanded the mining block, which has been the source of rare, D-color, Type II gems and fancy color diamonds weighing more than 10.8 carats.

Diamcor’s Revenue +49%

Diamcor Mining reported a 70% increase in rough diamond carat sales for its fiscal second quarter compared with the previous fiscal quarter, alongside a 49% hike in revenue to $676,835.

The Canadian group, which operates a strategic alliance with Tiffany & Co. Canada, reported that it participated in one rough diamond tender during the period, where it sold 4,845.93 carats.

The company also reported a large increase in the volume of rough diamonds recovered but not tendered. It now holds around 4,030.83 carats of rough in inventory, compared to roughly 2,050 carats at the close of the previous fiscal quarter, a 96% increase.

Diamcor attributed this rise in rough inventory to initial increases in processing levels and subsequent recoveries, as well as its decision to leave certain higher-value rough diamonds out of its second-quarter sale due to recent low prices. The company said these diamonds would be offered again through tenders it expects to hold in the coming quarter.

GENERAL

3D Jewelry Printing Could Be $11B Industry

Three-dimensional jewelry printing could become an $11 billion market by 2020, according to “Opportunities for 3D Printing in Precious Metals,” a report published by SmarTech Markets that claims this technology could have a disruptive impact on the industry, based on the predicted value of rings, necklaces, watches and other common consumer fashion items produced through 3D printing.

The idea is close to entering “new territory” through timepiece components, directly fabricated jewelry and accessories made from precious metal powder, according to the report, which cited 3D printer manufacturers that are already involved in the industry, including 3D Systems, Solidscape (wax models), Concept Laser, EnvisionTEC, EOS and Realizer, as well as service bureaus Shapeways and Sculpteo, 3D software manufacturer Autodesk and Progold, which makes gold and other alloy powders.

DEF Awards Higher-Education Grants

The Diamond Empowerment Fund (DEF), co-founded by De Beers, donated $122,500 to the African Leadership Academy (ALA) to help “outstanding” young students gain access to higher education.

ALA co-founders Fred Swaniker, a former consultant at McKinsey & Company, and Chris Bradford, who previously worked for Procter & Gamble and Boston Consulting Group, received the DEF grant at a ceremony in New York.

The Johannesburg-based academy offers a two-year program to prepare pupils for college, focusing on leadership, entrepreneurship and African studies. Graça Machel Mandela, the widow of former South African President Nelson Mandela, was also present at the award event and participated in a discussion on preserving African identity, handling urgent social issues and motivating the next generation of Africans to effect change on the continent.


Berkshire’s Richline Joins Anti-Wildlife Trafficking Effort

Richline Group, a wholly owned subsidiary of Berkshire Hathaway, joined forces with other jewelers to campaign against the illegal acquisition of wildlife products by the precious stones industry.

Richline, a Tamarac, Florida-based jewelry maker and marketer, teamed up with firms such as Ethical Metalsmiths, Wildlife Friendly Enterprise Networks and Jewelers of America to cut the demand for and supply of such products.

The campaign also aims to raise awareness of the wildlife trafficking crisis and support President Obama’s U.S. Wildlife Trafficking Alliance, which was launched in 2013.

WDC Criticizes Amnesty CAR Report

The World Diamond Council (WDC) has become the latest body to come out against a recent Amnesty International report that claimed diamond trafficking was being used to fund violence in the Central African Republic (CAR).

In an interview with Bloomberg, WDC president Edward Asscher that the Kimberley Process (KP) had taken “more than 99%” of conflict diamonds off the market.

"The diamond council gladly re-invites Amnesty to participate and join us and the [KP’s] civil society coalition looking into aspects of CAR and the whole Kimberley Process," he added.

The KP has banned diamonds exports from the CAR since May 2013, two months after the overthrow of President Francois Bozize, a Christian, by mostly Muslim militias.

Amnesty legal adviser Lucy Graham told Bloomberg the organization’s report was “a damning indictment of the Kimberley Process and its failure over a number of years to address human rights abuses and other illegal and unethical practices" and demanded stricter laws to require companies to investigate their supply chains and disclose what preventative measures they have take

PDE Picks Khemlani as New President

The Panama Diamond Exchange (PDE) elected Mahesh Khemlani as its next president, replacing longstanding CEO Erez Akerman.

Khemlani, Panama’s former vice minister of finance, will join the bourse from Panamanian private investment firm Grupo VerdeAzul.

The bourse also announced that Ali Pastorini, director of marketing for the World Jewelry Hub, the trading center that opened in Panama earlier this year, would become the PDE’s senior vice president.

Akerman, who is stepping down at the end of October, is set to become managing director of the World Jewelry Hub. He has been president of PDE since the bourse’s founding in 2008.

Etsy to Offer Networking Service for Designers, Manufacturers

Etsy, a peer-to-peer e-commerce site focused on handcrafted or vintage items, including jewelry, is set to launch Etsy Manufacturing, a marketplace for designers and manufacturers.

The venture, which will go live this year, will enable designers to search for and contact manufacturing partners. Etsy is already accepting applications from manufacturers at its website. The venture is the result of a pilot program launched by the company earlier this year that found that in normal circumstances “finding a good partner is really, really hard.”

While it will not conduct direct audits or site visits, Etsy said it will review and approve manufacturers’ applications on an individual basis, based on criteria that includes a commitment to transparency, the degree to which a company allows subcontracting and the participant’s business size.


AWDC to Send Local Text Alerts in Emergencies

The Antwerp World Diamond Centre (AWDC) is introducing a notification system that will inform users by text message of any security incident that arises in the city’s diamond hub.

AWDC said the SMS alert mechanism was designed to update the Antwerp diamond community quickly in the event of a “serious and ongoing emergency” within the Antwerp Diamond Area and, if necessary, to provide evacuation guidance.

The service is free of charge, though registration is subject to review.


ECONWATCH

Diamond Industry Stock Report

View the detailed industry stock report.
(13:30 GMT) Oct. 8 Oct. 1 Chng.
$1 = Euro 0.89 0.90 -0.007
$1 = Rupee 65.04 65.52 -0.5
$1 = Israel Shekel 3.85 3.93 -0.08
$1 = Rand 13.42 13.85 -0.43
$1 = Canadian Dollar 1.31 1.33 -0.02

Precious Metals
Gold $1,144.83 $1,115.41 $29.42
Platinum $948.05 $903.75 $44.30
Silver $15.69 $14.57 $1.12

Stock Indexes Chng.
BSE 26,845.81 26,220.95 624.86 2.4%
Dow Jones 16,902.93 16,284.70 618.23 3.8%
FTSE 6,355.94 6,105.07 250.87 4.1%
Hang Seng 22,354.91 20,846.30 1,508.61 7.2%
S&P 500 1,995.83 1,920.03 75.80 3.9%
Yahoo! Jewelry 1,043.36 1,004.14 39.22 3.9%

Rapaport Weekly Market Comment October 16, 2015


Current rough prices unsustainable and unacceptable. Cutters reject about 50% of De Beers sight. ALROSA prices -15% so far this year. We believe rough prices need to fall at least another 20% to ensure profitability. 1ct. RAPI -3% in Sept., -6.3% in 3Q. U.S. good before Christmas, Far East slow after weak Golden Week. U.S. and Israeli dealers “cherry-picking” Indian goods before Mumbai shuts for Diwali (Nov. 7-13). Chow Tai Fook 2Q gem jewelry same-store sales -13%, Luk Fook -26%. LVMH Jan.-Sept. jewelry, watch sales +22% to $2.7B. Belgium Sept. polished exports -12% to $1.4B, rough imports -35% to $870M. India Sept. polished exports -28% to $1.9B, rough imports -29% to $1.1B.


RapNet Data: October 15

Diamonds 1,264,656
Value $8,442,621,802
Carats 1,373,164
Average Discount -28.86%

www.rapnet.com



The RapNet Diamond Index (RAPI) is the average price for the top 25 diamond qualities (D-H, IF-VS2). It is based on the 10 best priced diamonds for each quality.




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14-21
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19-22
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QUOTE OF THE WEEK
The U.S. industry needs a coordinated effort to ensure we can protect consumer confidence in our product and have a say on policies that affect the livelihoods of our members.

Ronnie VanderLinden, president of DMIA and newly-formed United States Jewelry Council









MARKETS




United States: Buyers’ market in U.S. as suppliers lower prices. Buyers limiting purchases to fill specific orders, leaving suppliers with large inventories of unsaleable goods...

Belgium: Polished trading is quiet. Dealers report some improvement in European demand following dismal third quarter. Trading is expected to slow through during Diwali holiday...

Hong Kong: Trading is slow with very few orders and no inventory buying. Buyers are cautious and afraid that polished prices will soften further...

India: Trading weak with some U.S. and Israeli buyers “cherry picking” goods before the Diwali break. Steady U.S. demand for SI-I2 clarity diamonds...

Israel: Polished trading improved slightly with conclusion of the Jewish holiday period. Dealers looking to fill specific U.S. orders...

Click here to continue reading















INSIGHTS



Synthetic Diamonds: Legitimize, Don’t Ostracize

Traders of mined diamonds are divided over how to best respond to the growth of laboratory-grown counterparts…

Click here to continue reading















INDUSTRY



Refusals Continue at $200M De Beers Oct. Sight

Sightholders refused about half of their allocated supply at the De Beers October sight, reducing the estimated value of rough sold at the event to $200 million. The move extends a trend of refusals from previous months after De Beers allowed sightholders to defer up to 75 percent of supply in August and restructure their allocations for the following six months.

Still, the mood last week in Gaborone was somber even as sightholders were unsurprised that De Beers kept prices stable. Manufacturing profit margins continue to be squeezed as sightholders feel that the 8 percent to 10 percent rough price cuts in August were not sufficient while polished prices continue to soften.

Rough trading on the secondary market was quiet following the sight with boxes selling at a discount to De Beers list prices – after additional costs such as value-added services and broker fees. Sightholders reduced polished production by 30 percent to 50 percent this year, in line with their lower sales turnover. They note that there are enough goods to supply retailers during the holiday season and are therefore in no rush to raise production or buy rough that they can’t cut at a profit.

Consequently, sightholders expect rough demand to remain low until year end and the miners are adjusting their sales to match this market reality. Okavango Diamond Company only offered diamonds in the 10-plus carat range at its October auction and has canceled its sale in November.







India Boosts Funding to Promote Exports

The government of India increased allocations for export incentive schemes across the economy, including the diamond and jewelry sectors, to $3.2 billion (Rs 21,000 crore) for the current financial year.

Commerce Secretary Rita Teaotia told a meeting of representatives from 27 export promotion councils that the new amount represented an increase to the earlier allocation of $2.8 billion, according to the Gem & Jewellery Export Promotion Council (GJEPC).

She also said the Ministry would take “specific actions” to facilitate exporters’ business and that export promotion councils’ suggestions would be taken into account.

Praveen Shankar Pandya, representing the GJEPC, told the ministry it could combat the exports slowdown in the gem and jewelry sector through a long list of innovations, including presumptive taxation for the diamond sector and free-trade agreements with countries with prohibitive import duties.







WDC President Addresses Synthetics Challenges

ALROSA president Andrey Zharkov told the World Diamond Council (WDC) that the miner has a “function” to “set apart synthetic and natural diamonds” in the supply chain. His speech to the trade body’s annual general meeting focused on the challenges posed by the existence of synthetic stones in the market. Zharkov, who joined ALROSA in April, explained that the Russian group was concerned by the fact that natural diamonds are increasingly being mixed with synthetics.

He said ALROSA was researching fast and effective ways to detect synthetics while supporting initiatives designed to regulate the trade and increase disclosure about the origin of stones. Amendments to Russian federal legislation that were adopted in May are due to take effect in November, requiring jewelry to be labeled if any processing methods have been used to improve a stone’s quality, color or value and to be identified as natural or synthetic. These amendments, according to Zharkov, will make the trade more transparent.







DMIA President to Helm U.S. Representative Jewelry Body

Diamond Manufacturers & Importers Association of America (DMIA) president Ronnie VanderLinden was named as head of the newly formed United States Jewelry Council (USJC), a group established to represent the U.S. industry at both governmental and international levels.

VanderLinden commented that challenges from within and outside the U.S. “are more than an individual association can handle alone. The U.S. industry needs a coordinated effort to ensure we can protect consumer confidence in our product and have a say on policies that affect the livelihoods of our members.”

In addition to the DMIA, the founding participants are: Jewelers of America (JA); the American Gem Society (AGS); the Diamond Council of America (DCA); the Diamond Bourse of Southeast United States (DBSE); the Diamond Dealers Club of New York (DDC); the Indian Diamond and Colored Stone Association (IDCA); the Manufacturing Jewelers & Suppliers of America (MJSA) and the Natural Color Diamond Association (NCDIA). The USJC said these organizations’ combined memberships represent the vast majority of the U.S. jewelry industry.

VanderLinden will serve as president, alongside treasurer David J. Bonaparte, president and CEO of JA; secretary Ruth Batson, CEO of the AGS and CEO James Evans Lombe, director of ethical initiatives for JA.







India's Polished Diamond Exports -28% in September

India's polished diamond exports fell 28 percent year on year to $1.92 billion in September 2015, according to provisional data provided by the Gem & Jewellery Export Promotion Council. By volume, polished exports decreased 9 percent to 3.295 million carats. Polished imports decreased 79 percent to $235 million, leaving next exports 8 percent higher at $1.69 billion.

Rough diamond imports decreased 29 percent to $1.05 billion and rough exports fell 55 percent to $67 million, leaving net imports 26 percent lower at $982 million. India's net diamond account, which is calculated as the difference between net polished exports and net rough imports, rose 198 percent to $706 million compared with a $237 million in September 2014.

During the month, India imported $4.4 million worth of rough synthetic stones, most of them diamonds. Polished synthetic imports, meanwhile, totaled $10.74 million and exports were $6.75 million. In terms of diamond trading for the first nine months of the calendar year,Rapaport News calculated that India's polished diamond exports fell 9 percent year on year to $16.3 billion, while polished imports decreased 51 percent to $2.70 billion. Net polished exports improved 10 percent to $13.6 billion.

Rough imports decreased 23 percent to $10.378 billion, while rough exports fell 24 percent to $896 million, leaving net imports 23 percent lower at $9.48 billion. India's net diamond account for the January through September period was $4.08 billion compared with $22 million one year earlier.







Belgium’s Polished Exports Fall 12%

Belgium’s polished diamond exports fell 12% year on year to $1.39 billion in September, according to the Antwerp World Diamond Centre. By volume, polished imports decreased 14% to 610,853 carats, while their average price increased 2% to $2,193 per carat.

Total polished imports to Belgium were also down 12% to $1.34 billion during the month as net polished exports, representing exports minus imports, fell 4% to $47.6 million.

Rough imports decreased 35% to $870.4 million and rough exports fell 38% to $884.5 million. Net rough imports, representing imports minus exports, increased 81% to negative $14.06 million during the month.

Belgium’s net diamond account, representing total polished and rough imports less total exports, decreased 51% to reduce the deficit to $61.7 million.















RETAIL & WHOLESALE



Signet Announces Kay Upgrade, De Beers Deal

Signet Jewelers will rename its Kay Jewelers unbranded products “Kay Now & Forever” and launch 250 new-look Kay store formats by the end of the fiscal year as part of a wide range of holiday-season initiatives revealed in a recent analysts’ report compiled by investment bank Nomura.

The new layouts will include open-entry designs, clear display cases, cleaner lines, no banner advertisement and bright lighting, which Nomura said give “the perception of openness while showcasing the product.”

“Instead of counters that put associates and customers on opposite sides, the store is filled with side-by-side selling counters, which gives customers a sense of partnership with sales associates,” the report’s authors stated, adding that the new-look store “also seems to be aiming for a slightly higher, middle-market jewelry customer.”

Signet will also partner with De Beers on a two-stone diamond campaign under the “Ever Us” brand that will feature diamond pairs with price points ranging from $1,000 to $5,000.







LVMH’s Jewelry and Watch Sales +22%

LVMH Moët Hennessy Louis Vuitton reported an 18% increase in revenue to $28.8 billion (EUR 25.3 billion) for the first nine months of 2015, with its watch and jewelry business jumping 22%. Jewelry and watch sales totaled $2.7 billion for the first three quarters, representing the strongest improvement across LVMH’s business sectors.

The company did not detail what drove the increases, but said its Bulgari jewelry and luxury goods brand had “performed remarkably well, driven by all product categories and all regions of the world.” The Hublot watch brand grew at a high rate and increased its production capacity with the opening of a second plant in Nyon, Switzerland, it said.

LVMH also reported that TAG Heuer’s new smartwatch, created in partnership with Google and Intel, will be unveiled in November.


Chow Tai Fook Sales +4%

Chow Tai Fook Jewellery Group reported a 4% year-on-year increase in retail sales for the second fiscal quarter that ended on September 30, attributing the growth to a surge in demand for gold products and a drop in the metal’s price since mid-July.

The Chinese retailer’s same-store sales for the quarter fell 3% in value terms, but rose 1% in volume terms. It did not disclose figures with the percentages.

The company’s strongest growth was reported in Mainland China, where sales were up 9% by value and 13% by same-store volume, while same-store sales jumped 6%.

Gem-set jewelry sales in the overall business were down 13%, including a 4% drop in Mainland China.

Gold products fared better in both regions, with same-store sales in Mainland China rising 22%. Gold products made up 57% of the company’s total retail sales value, compared with 26% from gem-set jewelry, 13% from platinum and karat gold products and 4% from watches.

Chow Tai Fook opened 16 points of sale during the period, 14 in Mainland China and two in Hong Kong, Macau and other marks.

Zalemark Appoints New CEO

Zalemark Holding Company’s COO, Raymond Ruiz, will replace Steven Zale as CEO, following the veteran designer’s seven-month stint as temporary head of the company.

Zale, who has designed jewelry for more than 30 years, will remain at the company as honorary chairman emeritus, a non-officer, non-director position. He will now concentrate on designing, manufacturing and collaborating with other designers, he explained in a statement.

The company also announced several other appointments: Ernest Martell has been promoted to COO; Caren Currier to secretary and treasurer; Jeff Ringer to executive vice president for marketing and Hie Su Moon to vice president for new business and celebrity development.

Zalemark is “courting several industry icons” to be its president, with Ruiz adopting the role in the interim.


MINING

ALROSA Sees Prices Stabilizing by Year End

ALROSA CEO Andrey Zharkov said the company expects rough diamond prices to stabilize by the end of the year after falling 15%, Bloomberg reported. ALROSA will continue to focus on diamond mining and may review diamond polishing to see if it is beneficial for the company’s value, according to the report.

The group may also start talks with clients on conducting diamond sales in rubles. Diamond prices have declined by about 15% this year, but are still stronger than other commodities, Zharkov told reporters in Moscow.

Rough & Polished reported that ALROSA’s supervisory board had approved the possibility of settling payments in rubles under new export contracts, although these contracts will not be available before 2018 and will not impact current clients. The value of diamonds will still be calculated using the exchange rate set by Russia’s Central Bank and market prices will be listed in U.S. dollars.


ALROSA Unearths 103-Carat Diamond

Russia’s ALROSA has discovered a 102.85-carat diamond with a moderate yellowish hue at its Jubilee kimberlite pipe that is thought to be worth more than $480,000.

The company’s Aikhal Mining and Processing Division found the octahedral-shaped stone in September and reported on its website that it contains small olivine, graphite and sulfide inclusions.

The discovery followed that of a 253.16-carat rough diamond -- worth an estimated $1.5 million to $2 million – found by the same division two years ago at the Jubilee pipe. At the time, the company cited technological advancement at its production facility as the source of its success in recovering exceptionally large stones and avoiding breakages. Six diamonds with weights ranging from 50 to 120 carats have been recovered from the Jubilee pipe this year.

Endiama Chair: Diamonds ‘Not Promoted Enough’

Diamonds are not being promoted enough and as a result, people are not motivated to buy them, according to Carlos Sumbula, the chairman of Angolan state diamond company Endiama.

Speaking in the Angolan city of Saurimo on October 6, Sumbula told a delegation of British Parliament members that diamond producers needed to unite to streamline promotional campaigns for precious stones “so that people feel motivated to buy,” Macauhub reported.

His comments came during the U.K. lawmakers’ visit to Sociedade Mineira de Catoca, the operator of Angola’s largest diamond mine, with both Endiama and ALROSA holding a 32.8% share.
DiamondCorp Delays Sales

DiamondCorp announced it will hold back on selling diamonds until more stones have been accumulated in its inventory, following a poorer performance than expected at its Lace mine in Free State Province, South Africa.

The group said just 4,250 carats of diamonds have been recovered so far at the site, as difficult ground conditions have resulted in slower development in the upper K4 block. DiamondCorp added that larger parcels of diamonds tend to attract stronger prices than smaller ones containing less than 10,000 carats, implying that its decision to wait for more stones to accumulate would help it to achieve better prices.


GENERAL

Manufacturers to Operate at Panama Diamond Exchange

Diamond manufacturers Diarough, Jewelex and Kiran Gems have set up offices at the Panama Diamond Exchange (PDE), marking the launch of Latin American operations. The companies, which pre-reserved space during the construction phase, are also De Beers sightholders.

Diarough, an Antwerp-based manufacturer and wholesaler, appointed Leon Nevedrov to head its office at the hub. Sharon Schwartz will lead Mumbai-based Jewelex’s office and Nathan Abadiwill run Kiran Gems, which is also headquartered in India’s financial ca

CIBJO Releases Coral Guide

CIBJO, the World Jewellery Confederation, introduced an online guide designed to ensure that the coral industry follows ethical business practices and strives for transparency.

Compiled by the CIBJO Coral Commission, the Blue Book outlines acceptable trade practices and nomenclature and provides classifications of non-treated and treated corals and artificial products that imitate or include coral elements.

Coral “is not widely understood” and the guide is an attempt to create “common sets of standards, practices and nomenclature, similar to those which have been created by CIBJO for other sectors,” according to Enzo Liverino, president of the trade group's commission.

IDE Set for Second Polished Fair

The Israel Diamond Exchange (IDE) announced that it will hold its second polished diamond fair on October 28, after deciding to make the event a regular fixture on the bourse’s calendar.

In July, some 60 Israeli diamond companies took part in a first-of-its-kind internal fair in the trading hall that was aimed at increasing the trade in polished goods between members.

IDE vice president and organizing committee chairman Ben-Zion Shasu said the inaugural fair “was widely hailed as a success.”


ECONWATCH

Diamond Industry Stock Report

Industry stocks were mixed in the past week, with U.S. retailers down across the board, led by Walmart (-10%), Nordstrom (-3.7%) and Macy’s (-3.6%). Chinese industry shares continued their October rebound led by Chow Tai Fook (+2.5%) and Luk Fook (+1.5%).

View the detailed industry stock report.
Oct. 15 (13:00 GMT) Oct. 8 (13:30 GMT) Chng.
$1 = Euro 0.88 0.89 -0.010
$1 = Rupee 64.86 65.04 -0.2
$1 = Israel Shekel 3.84 3.85 -0.01
$1 = Rand 13.18 13.42 -0.24
$1 = Canadian Dollar 1.29 1.31 -0.01

Precious Metals
Gold $1,183.25 $1,144.83 $38.42
Platinum $979.50 $948.05 $31.45
Silver $16.10 $15.69 $0.42

Stock Indexes Chng.
BSE 27,010.14 26,845.81 164.33 0.6%
Dow Jones 16,924.75 16,902.93 21.82 0.1%
FTSE 6,333.07 6,355.94 -22.87 -0.4%
Hang Seng 22,354.91 22,354.91 0.00 0.0%
S&P 500 1,994.24 1,995.83 -1.59 -0.1%
Yahoo! Jewelry 1,014.59 1,043.36 -28.77 -2.8%

Rapaport Weekly Market Comment October 22, 2015


NY-Israel DDC show successful with motivated sellers giving good prices to buyers filling specific orders. Rising expectations for U.S. holiday sales amid reports of De Beers-Signet “Ever Us” two-stone marketing campaign. China cautious despite better-than-expected 6.9% 3Q GDP growth. Overpriced rough not selling. ALROSA 3Q sales -44% to $563M, volume -36% to 4.9M cts., production +20% to 11.6M cts. De Beers 3Q production -27% to 6M cts. Rio Tinto 3Q production +20% to 4.3M cts. but 2015 production outlook cut 10% to 18M cts. Christie’s NY sells $20M with cushion, 75.56ct., fancy vivid-yellow fetching $3.6M ($47,763/ct.). GJEPC elects Praveen Shankar Pandya as 2016/17 chair.


RapNet Data: October 22

Diamonds 1,267,285
Value $8,426,678,858
Carats 1,378,550
Average Discount -28.61%

www.rapnet.com



The RapNet Diamond Index (RAPI) is the average price for the top 25 diamond qualities (D-H, IF-VS2). It is based on the 10 best priced diamonds for each quality.




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QUOTE OF THE WEEK
With the seasonally strong holiday season approaching, the demand outlook remains uncertain due to the ongoing slowdown in China and a sustained credit squeeze on Indian cutters.

Analysts at VTB Capital, commenting on ALROSA’s October 21 production report









MARKETS




United States: Large crowd at New York Diamond Dealers Club (DDC) Israel Week. More sellers than buyers but event created a buzz and selective buyers got good deals...

Belgium: Sentiment is weak due to slow trading. Global bankruptcy rumors impacting confidence for long-term industry prospects. Dossiers soft as China remains slow...

Hong Kong: Trading is slow as dealers are careful about buying into a down-trending market and businesses close for Chung Yeung public holiday. Demand limited to specific orders...

India: Dealers cautious as demand is below levels usually seen at this time of the year. Far East is quiet. U.S. buying less goods with shift toward branded jewelry...

Israel: Many dealers at NY-DDC event with strong focus on colored diamonds and large stones. Israel relying on U.S. more than ever as China has slowed...

Click here to continue reading















INDUSTRY



Diamond Producers Association Announces Board Appointments

The Diamond Producers Association (DPA) announced the immediate appointments of Jean-Marc Lieberherr as chairman and Stephen Lussier as vice chair. Sally Morrison has been named managing director of marketing.

The DPA was formed by the major diamond mining companies earlier this year to support development in the diamond sector, including within category marketing.

Lieberherr is managing director of Rio Tinto’s diamond business, while Lussier is CEO of the De Beers Group’s Forevermark brand.

Morrison joins the DPA from the World Gold Council, where she most recently served as managing director of jewelry and marketing.







NY Buyers Seek Large, Colored Goods During Israel Diamond Week

Sellers at Israel Diamond Week, being held at New York's Diamond Dealers Club (DDC), said that buyers are showing a great deal of interest in colored diamonds and larger-sized goods.

The event has drawn more than 170 exhibitors into the Manhattan DDC offices, including more than 100 from Israel, David Lasher, the DDC’s managing director, told Rapaport News.

"People came ready to buy for the holidays and the momentum of the show is carrying through the week," Lasher said. "The sales are bringing up sentiment in New York."

In addition to colored and large diamonds, Lasher stated that a number of participants said there was more buying than usual of smaller, "American-style goods for retail,” with at least one transaction topping $2 million.







Scholarships Now Available for Range of GIA Programs and Classes

GIA is now accepting applications for more than 200 scholarships for its Gemology and Jewelry Manufacturing Arts programs, courses and lab classes. The aid is sponsored by private donors and the Institute’s endowment fund.

Scholarships are available for distance education eLearning courses and for classes at the GIA’s campuses in Bangkok, Carlsbad, Hong Kong, London, Mumbai, New York and Taiwan; and at the GIA branches in Botswana and Dubai.

Applications for the current scholarship cycle are available now through Oct. 31 at GIA.edu/scholarships.







De Beers Launches Melee Testing Service in India and Belgium

De Beers will offer its melee testing service in Surat, India and Antwerp, Belgium, in the coming weeks, the company announced.

Through its International Institute of Diamond Grading & Research (IIDGR) unit, De Beers will provide verification of the natural diamond content of melee parcels before they are traded. Goods will be returned in sealed, tamper-proof IIDGR packages, with the contents plainly labeled.

Testing will begin in India on October 26 and in Antwerp on November 12







NCDIA Launches Color Diamond Conference Series

The Natural Color Diamond Association (NCDIA) launched a series of conferences around the world to build consumer awareness about the color diamond category. The series kicked off with events in New York on October 2 and Mumbai on October 8 covering rarity, value and natural pink diamonds, and will continue with a conference to be held at the Israel Diamond Institute in November, with the specific date to be announced.

Meetings are also planned for Australia, London, Hong Kong and Antwerp, where additional topics will include the issue of natural versus synthetic diamonds and retailing with color.















RETAIL & WHOLESALE



U.S. Jewelry Prices Rise 1%

The U.S. consumer price index (CPI) for jewelry rose 1.3% in September against the previous month, despite the recent slump in diamond and precious metal prices. The CPI’s reading of 166.20 represented a drop of 2.7% against the previous year.

These results followed reports that U.S. jewelers had increased their prices during the second quarter. Signet Jewelers reported that the average transaction price at its U.S.-based Sterling division rose 4.2% year on year during its fiscal quarter that ended on August 2.

Tiffany & Co. also reported a shift in its sales mix to higher-priced, relatively lower-margin products during its second quarter that ended on July 31.

Still, input costs softened in September, with the Rapaport Diamond Index (RAPI™) for 1-carat, GIA-graded diamonds down 3% (see the Rapaport Monthly Report).







Royal Asscher, Helzberg Introduce Collection

Diamond cutter Royal Asscher and retailer Helzberg Diamonds formed a partnership to introduce a precious stones collection both online and in 40 U.S. Helzberg stores.

The Royal Asscher Brilliant Cut and Royal Asscher Helzberg Diamonds repertoire was shown at an event held in Helzberg’s Kansas City store on September 28, followed by a three-week sales promotional tour across the U.S.

The assortment features Royal Asscher’s signature cuts, the Royal Asscher Cut and the newly introduced Royal Asscher Brilliant Cut, with each ring designed by Lita Asscher. Both cuts were inspired by the 3,106-carat Cullinan diamond, polished by Joseph Asscher in 1908.







Jeweler Valerio Debuts Socially Conscious Brand

Fairtrade activist and U.K. jeweler Greg Valerio introduced a new brand of luxury jewelry touted as being “made from the most socially conscious, environmentally responsible and desirable metals and gems on the planet."

Valerio’s online, ethical jewelry brand offers designs that seek “to create a harmonious and elegant union between the land, the miner, the jeweler and the final customer.” The first collection is a bridal range created from certified Fairtrade gold and silver, traceable diamonds and gemstones.







Hearts On Fire Promotes CMO to President

Diamond brand Hearts On Fire (HOF) announced that two current executive team members will move immediately into new, expanded roles. Caryl Capeci, is now president, from chief marketing officer. Tom Carlo has added the role of chief operating officer to his responsibilities as chief financial officer.

Separately, HOF has named Texas retailer Thomas Markle Jewelers as its 2015 "Retailer of the Year". The jeweler, which operates three stores in the Houston area, was given the award at HOF's University program held in Las Vegas from October 12 to 14.

Grand Jewelers, St. Thomas, U.S. Virgin Islands, was named retail "Rookie of the Year". The three-day program highlighted how retailers should focus on millennials generation and use of social media.

The company was acquired by Chow Tai Fook Jewellry Group in 2014. It recently rolled out a new brand platform and advertising campaign, Ignite Something.







Jarden Acquires Championship Ring Maker Jostens for $1.5B

Global consumer products company Jarden Corporation acquired Jostens, a producer of class, collegiate and sports merchandise and rings, in a $1.5 billion deal.

The purchase, made from investment funds managed by KKR, aPriori Capital Partners and other shareholders, will add a “market-leading, niche consumer brand” to Jarden’s portfolio and bring “best-in-class, customizable production capabilities in printing, jewelry and apparel,” according to the corporation’s announcement.







Tiffany & Co. Online Campaign Targets Chinese Consumers

Tiffany & Co. is targeting consumers in China through videos posted on Chinese websites rather than on YouTube.

The Chinese language campaign, shown without subtitles, is said to be a first for the retailer. As reported by Luxury Daily, Tiffany will likely promote the campaign on other language social media networks to ensure crossover success.

The campaign’s two ambassadors are Chinese supermodel Liu Wen and Taiwanese director and actress Sylvia Chang.







Webinar to Help Jewelers Market to Same-Sex Couples

Retail jewelers looking to boost their sales to same-sex couples shopping for engagement and wedding jewelry are the target audience for a November webinar.

Jewelry manufacturers group The Plumb Club is sponsoring the online event on November 4 at 2 p.m. EST. The 45-minute program will focus on protocols within LGBT engagements and weddings, increased demand for jewelry by same-sex couples and the subtleties of marketing to same-sex couples.

Earlier this year, Tiffany & Co. included a photo featuring a same-sex couple in an advertising campaign, marking a first for the brand.

Panelists at the webinar will include: Bernadette Smith, founder and president of the Gay Wedding Institute; Rony Tennenbaum, a designer specializing in contemporary wedding jewelry who writes about emerging LGBT nuptial practices; and Matthew Perosi-Doughty, a business services consultant to jewelers who founded Jewelers Equality Alliance.







Analysts ‘Cautiously Optimistic’ on Holiday Retail

Equities analysts at Nomura Securities are expecting a 2.5% to 3% comparable holiday sales increase for the North American specialty retailers that they track, according to a presentation it sent investors on October 20.

“Heading into this holiday season, we are cautiously optimistic that retail sales will be healthy,” the presentation stated. “We are generally encouraged by recent macro trends” and “believe consumers are entering this holiday season with extra cash in their pockets.”

This year’s holiday calendar has an extra day compared with 2014, for a total of 28 selling days between Thanksgiving and Christmas. That extra day is worth about one sales percentage point for the period versus 2014, the analysts wrote.







NRF Expects 4% Year-End Sales Increase

The National Retail Federation (NRF) is projecting that overall sales in November and December could grow 3.7% year on year to $631 billion.

Over the past decade, holiday sales have grown 3.1% on average and holiday sales can account for as much as 30% of a retailer’s annual sales.

The NRF also expects seasonal employment to add as many as 750,000 jobs to the U.S. economy this year compared with more than 714,000 last holiday s




MINING



De Beers 3Q Production Drops 27%

De Beers rough diamond production fell 27 percent year on year to 6.012 million carats during the third quarter following a decision to reduce output “to better reflect current trading conditions.”

The company has seen a sharp drop in rough sales in 2015 as demand from China slowed resulting in a backlog of polished diamond inventory held by diamond manufacturers.

In August, De Beers lowered its full-year production guidance to between 29 and 31 million carats and on October 22 said it now expects output to be at the lower end of that estimate. Production for the first nine months of the year is down 11 percent to 21.64 million carats.

The bulk of the third quarter decline came from Debswana, De Beers mining joint venture with the Botswana government, where output dropped 35 percent to 4.074 million carats. Planned maintenance at the Jwaneng and Orapa mines is being prioritized in light of current trading conditions, while there is also a focus on waste mining and processing lower grade material at Jwaneng, Anglo American explained. Production at Jwaneng, considered De Beers flagship mine, slumped 42 percent to 1.936 million carats during the quarter.







ALROSA Sales Slump as Production Spikes

ALROSA’s diamond sales fell 44% year on year to approximately $563 million during the third quarter of 2015, according to the miner’s preliminary trading report.

Despite these sales declines, ALROSA increased its production by 20% to 11.635 million carats during the third quarter, marking its highest quarterly output in at least seven years or since production data was officially made available, according to Rapaport records.

The company confirmed its stated full-year production guidance of 38 million carats.







Dominion’s Diavik Production -15%

Dominion Diamond Corporation saw a 15% year-on-year drop in diamond processing at its Diavik Diamond Mine to 480,000 tons during the third quarter.

The decrease resulted from the fact that additional stockpile was available and processed during the comparable quarter of 2014 but fully exhausted by the end of that calendar year, as well as the drop in ore availability caused by poor ground conditions, according to Dominion. Average prices of the company’s own production were down 24 percent to $1,791 per carat.

The company expects its full-year production target to be 2 million tons mined, 2 million tons processed and 6.8 million carats, with mining activities to be conducted exclusively underground.

Dominion owns 40% of the mine and the remaining 60% stake is owned by Rio Tinto.







Rio Tinto Delays Cuts Production Forecast

Rio Tinto placed final product processing at its Argyle mine on hold in response to market conditions and as a result, reduced its forecast of annual share of diamond production for 2015 from 20 million carats to 18 million carats.

The development follows a 20.5 percent increase in the miner’s diamond production to 4.275 million carats during the third quarter that ended on September 30. The company attributed most of the increase to a 43.1% jump in production at Argyle to 3.514 million carats, while production at Diavik fell 24.2% to 761,000 carats.

The group said the main focus at Argyle had been the ramp-up of production from the underground mine, while at Diavik, lower processing volumes and lower recovery grades from led to the production drop.
Rio Tinto owns all of the Argyle mine in Western Australia and 60 percent of Diavik.







Kennady Mine Valuation on Par With World’s Highest-Margin Diamonds

Kennady Diamonds’ Kelvin mine in Canada’s Northwest Territories was determined to contain diamonds valued at $123 per carat on average, comparable to the world’s highest-margin diamonds. Three of the highest-value diamonds in the sample included a 4.22-carat stone with a value of $1,603 per carat; a 2.58-carat gem valued at $1,366 per carat and a 2.38-carater assessed at $1,196 per carat.

The price assessment, conducted by WWW International Diamond Consultants, was based on gems weighing 989 carats and recovered from a bulk sampling of Kelvin mine kimberlite, Kennady stated, adding that “it is encouraging to see so many good-color white gemstones, especially in the C sample, with five of the eight stones being good color and gem quality.”

“Kelvin diamond prices are comparable to those from the neighboring Gahcho Kué mine, when the rough diamond price index was at a comparable level,” Patrick Evans, Kennady’s president and CEO, said. “This is very encouraging, particularly as Gahcho Kué is widely recognized as the world’s highest-margin, new-diamond mine.”







Ellendale May Be Handed Back to the State

The collapsed Ellendale diamond mine may be handed back to the local government as the diamond market implodes, according to a report by daily The West Australian.

A fresh dispute is looming over the collapsed Ellendale mine as liquidators try to offload its mining tenements and resolve a $28 million environmental liability into the state government’s Mining Rehabilitation Fund.

Owner Kimberley Diamonds closed operations at the mine earlier this year after repeated late payments of royalties. In January, Western Australia’s Department of Mines and Petroleum (WADMP) set in motion a forfeiture action over Kimberley’s failure to pay $200,000 in tenement rental for the mine’s lease.







Rockwell’s Revenue Rises Following Beneficiation Deal

Rockwell Diamonds reported that revenue rose 32% year on year to $17.3 million (CAD 22.3 million) during its second quarter that ended on August 31, driven by its beneficiation partnership with New York-based diamond manufacturer Diacore. Rockwell’s rough diamond sales fell 14% to $9.5 million, but the miner swung to a $1.9 million profit for the period from the $1.2 million loss it posted one year earlier.

The company’s beneficiation income nearly quadrupled to $7.8 million. Under its agreement with Diacore, Rockwell is entitled to 50% of the profits derived from the sale of polished diamonds produced by Rockwell and sold through Diacore.

With diamond markets depressed this year, CEO James Campbell noted in the report that diamond manufacturers have closed their factories rather than manufacture unprofitable rough. He added that open-market rough and polished prices seem to have bottomed out, though the company expects rough prices to stabilize as polished diamond demand is expected to improve over the U.S. Christmas shopping season.

Rockwell’s average rough price rose 20% to $1,783 per carat during the second quarter. Average prices of the company’s own production were down 24% to $1,791 per carat.







Mountain Province Hires Rio Tinto Marketing VP

Mountain Province Diamonds hired Reid Mackie as its vice president for diamond marketing. Mackie most recently served as Rio Tinto’s sales and marketing manager for Argyle pink diamonds in Perth, Australia, where he was responsible for the pricing and sale of all Argyle pink polished diamonds, including at tender.

Province’s president and CEO, Patrick Evans, said Mackie was joining the company as it prepares for its first sale of diamonds from the Gahcho Kué diamond mine in Canada’s Northwest Territories, noting that Mackie’s “considerable experience in taking new mine production to the market will benefit Mountain Province greatly.”















GENERAL



Christie’s Top NY Lot Garners $3.6M

The top lot at Christie’s October 20 New York sale was a 75.56-carat, cushion modified brilliant-cut fancy vivid yellow diamond ring that realized $3,609,000, according to the auction house.

The first sale of the New York season netted an overall total of $19.96 million. The auctioneer said online bidding was an active element at the sale, with clients participating from Hong Kong, Indonesia, Monaco, the United Kingdom and the United States.

In addition to the ring, an 18.8-carat, marquise-cut D color diamond sold for $1.45 million, a 12.75-carat, heart-shaped D color diamond garnered $965,000 and a 34.12-carat, cushion-cut fancy yellow diamond sold for $725,000.







Rough Diamond Display at Bharat Bourse Not Taxable

Income from rough diamonds displayed in Bharat Diamond Bourse’s (BDB) Special Economic Zone (SEZ) will not be taxable under the Income Tax Act, 1961 going forward from April 1 of this year, India’s finance ministry announced.

The ruling applied to uncut diamonds without sorting or sale and will be carried out through the 2016 Finance Bill.

The SEZ took effect at the BDB on July 1.







GJEPC Votes Pandya in as Chair

India’s Gem & Jewellery Export Promotion Council (GJEPC) elected Praveen Shankar Pandya as its chairperson. Pandya, who is chairman of Diamond India Limited, will take over from 2015 to 2017, succeeding Vipul Shah, who served two years. Russell Mehta, CEO of Rosy Blue (India) Pvt. Ltd., was elected vice chairperson.

The 6,000-member organization has also appointed several regional chairs: Ashok H. Gajera to the Western region; Dinesh R. Navadiya, Gujarat region; Anil Sankhwal, Northern region; Pramod Kumar Agrawal, Jaipur region; Mahendra Kumar Tayal, Southern region and Prakash Chandra Pincha, Eastern region.







Signet Inks Rough Supply Deal With ALROSA

Signet Direct Diamond Sourcing, a subsidiary of Signet Jewelers, has signed a long-term rough diamond supply contract with ALROSA, the Russian miner confirmed with Rapaport News. The deal formalizes diamond purchasing by one of the world's largest diamond jewelry retailers from its top diamond producer by volume.

Reports of negotiations between the two companies have been circulating for more than two years and Signet has purchased rough at ALROSA's spot market sales in the past. The recent deal adds to the growing consistent supply that the jeweler is already sourcing from De Beers and Rio Tinto.




Swiss Watch Exports Slide

Swiss watch exports slumped in September as the U.S. market recorded its worst monthly downturn in five years, casting a shadow over the industry’s outlook for the year. The slump affected all price segments, but was more keenly felt below the $461 (CHF 500) export price category, with Asia bearing the brunt of the decline.

“The poor results continued to focus mainly on Asia,” the Swiss Federation observed in its statement. Hong Kong showed “no sign of improvement” and while China was “less negative than in July and August,” its situation continued to deteriorate, the federation added.

Swiss exports to Singapore, the United Arab Emirates, South Korea and Taiwan also recorded steep declines.

Cross-border shipments to Europe, however, held firm for a tenth consecutive month of growth.

New Book Details History of Laurence Graff

The history of jeweler Laurence Graff, OBE, is recounted in a new coffee table book due out from Rizzoli publishers on October 27. GRAFF, the book, has been described by reviewers as a look into the exclusive world of the House of Graff, the British-owned retailer of unique jewels, one-of-a-kind statement pieces, and world-renowned diamonds.

The contributors to the book include:Suzy Menkes, Vogue international editor; Vivienne Becker, a jewelry historian and contributing editor to the Financial Times;and, Maria Doulton, a journalist and the founder of the Jewellery Editor, a website devoted to luxury jewelry and watches.

The book is illustrated with the jewelry for which Graff is renowned, as well as the advertisements. that secured the house’s place in the public imagination. GRAFF also highlights famed stones such as the 603-carat Lesotho Promise, which Graff cut into a necklace of 26 perfect stones; the largest square Fancy Vivid Yellow diamond in the world, the 118.08-carat Delaire Sunrise; and, the largest D flawless round diamond in the world, the Graff Constellation, at 102.79 carats.

ECONWATCH

Diamond Industry Stock Report

Industry stocks in the past week were led by gains in India shares, including Lypsa Gems (+36%), Vaibhab Global (+20%), and Gitanjali Gems (+5.4%). Mining stocks generally saw declines, with double-digit losses in De Beers parent Anglo American (12%) and Petra Diamonds (11%). Platinum prices continue to struggle, while gold and silver are benefiting from a return by retail investors to precious metals, according to Bloomberg News.

View the detailed industry stock report.
Oct. 22 (12:30 GMT) Oct. 15 (13:00 GMT) Chng.
$1 = Euro 0.89 0.88 0.010
$1 = Rupee 65.10 64.86 0.2
$1 = Israel Shekel 3.87 3.84 0.02
$1 = Rand 13.51 13.18 0.33
$1 = Canadian Dollar 1.31 1.29 0.02

Precious Metals
Gold $1,167.98 $1,183.25 -$15.27
Platinum $979.50 $979.50 $0.00
Silver $15.82 $16.10 -$0.28

Stock Indexes Chng.
BSE 27,287.66 27,010.14 277.52 1.0%
Dow Jones 17,168.61 16,924.75 243.86 1.4%
FTSE 6,339.07 6,333.07 6.00 0.1%
Hang Seng 22,845.37 22,354.91 490.46 2.2%
S&P 500 2,018.94 1,994.24 24.70 1.2%
Yahoo! Jewelry 1,018.87 1,014.59 4.28 0.4%

Rapaport Weekly Market Comment October 30, 2015


GIA invalidates 1,042 grading reports after computer hackers penetrate system and alter data. RapNet suspends 10 members that GIA says were involved. Reduced Indian production before Diwali holiday (Nov. 7-13) creating some shortages. Trading activity improving as aggressive dealers try to buy select goods at deep discounts. Some sellers holding out and getting good prices from buyers with firm orders. Rough under continued pressure with reports of De Beers discounting. Sight system falling apart as 100% deferrals allowed for Nov. Petra Diamonds 1Q production +1% to 842,796 cts., prices -9% at Oct. sale. Sally Morrison to head marketing at Diamond Producers Association.


RapNet Data: October 29


Diamonds 1,218,611
Value $8,201,511,354
Carats 1,340,732
Average Discount -29.06%

www.rapnet.com


The RapNet Diamond Index (RAPI) is the average price for the top 25 diamond qualities (D-H, IF-VS2). It is based on the 10 best priced diamonds for each quality.




Get Current Price List | Subscribe to Rapaport | Join RapNet



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QUOTE OF THE WEEK
GIA strongly requests that anyone in possession of any of these diamonds or grading reports return them immediately to GIA for examination.

GIA’s announcement after an outside party gained unauthorized remote access to its grading information database and altered reports for 1,042 diamonds









MARKETS




United States: Steady trading with buyers looking for opportunities. Suppliers able to sell at low profits. Dealers filling specific orders can get good prices...

Belgium: Activity improving with dealers filling specific orders for the holiday season. U.S. demand good, Europe just okay, China weak...

Hong Kong: Slight improvements with some limited inventory buying at deeply discounted prices. Most activity is for specific orders with some stones getting good prices...

India: Polished trading improving with U.S., Israeli and Chinese buyers looking for opportunities before Mumbai shuts for Diwali (Nov. 7-13). Local buyers also active...

Israel: Slight improvement in polished trading as dealers return from New York DDC week. U.S. demand is driving the Israeli market, while Chinese demand improving...

Click here to continue reading















INSIGHTS



Is the Two-Stone Ring The One?

The last few years have been a tiresome journey for the diamond industry but recent announcements from Signet Jewelers and De Beers signaled that the urgent call to sales by stepping up marketing activity may have finally been heard…

Click here to continue reading















INDUSTRY



GIA Invalidates 1,000+ Hacked Grading Reports

The Gemological Institute of America (GIA) invalidated grading reports for 1,042 diamonds after an outside party gained unauthorized access to GIA’s grading information database and altered the reports.

The alterations pertained to both color and clarity grades, and the clients who submitted the diamonds in question have been contacted and suspended from further submissions to GIA, pending the association’s continued investigation.

The GIA published a list of the clients that submitted the diamonds which includes the number and issue date of the invalidated reports, the shape and weight of each stone, and the submitting client account. The list does not include color or clarity grades because these may have been altered, GIA added.

The diamonds were submitted between November 2014 and September 2015; approximately 900 were submitted in July and August, with most of the diamonds submitted in India.

GIA said internal controls identified discrepancies, prompting it to initiate an investigation with Tata Consultancy Services (TCS), a contractor that supports GIA databases. The investigation indicated that one or more former TCS employees made the unauthorized changes remotely to alter grades before the reports were printed and sent to clients. The hackers were said to be acting at the behest of parties unrelated to GIA or TCS.

Indian law enforcement agencies are also actively investigating the matter.







RapNet Suspends Members Suspected of Falsifying GIA Reports

RapNet, the Rapaport Diamond Trading Network, has suspended 10 members pending further investigation. The members have also been suspended by the Gemological Institute of America (GIA) for allegedly participating in a scheme that hacked into the GIA’s computer system and upgraded 1,042 GIA grading reports. GIA issued laboratory alerts invalidating the grading reports and naming the suspended members.

RapNet has removed all diamonds with grading reports involved in this matter as well as all other diamonds listed by suspended members. Additional updated information and a list of all the diamonds and the companies that submitted them is available at http://goo.gl/TEF66F.

GIA has asked anyone in possession of the listed diamonds or invalidated grading reports to immediately return them to GIA. Rapaport clients may return the grading reports and diamonds to Rapaport offices in New York, Ramat Gan, Mumbai and Hong Kong.

The names of the suspended Rapnet Members are:, A. Lallubhai & Brothers, Admg Diamonds Pvt. Ltd, Darshna Gems, Dirgh Diamond Pvt. Ltd., Mahima Gems, Nidhi Impex, Pansuriya Impex, Shree Yogeshwar Gems, Sitaram Gems and Unity (HK).







De Beers Enables 100% Deferrals

De Beers will allow sightholders to defer their entire November allocations until December.

“Further to discussions with several of you following recent cutting center visits, we are writing to provide an overview of some of the additional flexibility we will be putting in place for sights 9 and 10,” the company said in a note to sightholders, which was obtained by Rapaport News. “We understand that many businesses' short-term demand requirements may well have seen some significant changes, so we are looking to find the best ways to be flexible in meeting your needs.”

Sightholders reported a somber mood at the October sight and refused about half of their allocated supply. Diamond manufacturers have significantly reduced their rough diamond intake and factory output in 2015 as polished sales have declined due largely to a slowdown in China.







WFDB Agenda Prioritizes Membership Expansion, Benefits

The World Federation of Diamond Bourses (WFDB) will discuss a “new strategy” at its executive committee meeting in Germany, which it said will seek to grow its membership and broaden the benefits offered by membership. The event will be hosted by Germany’s Diamant-und Edelsteinbörse, or diamond and gemstones exchange, in Idar-Oberstein in the state of Rhineland-Palatinate.

Other topics on the agenda will include the World Diamond Mark (WDM), which will be the subject of an address by WDM chairman Alex Popov.

Members will also discuss forging closer ties with trade bodies in the major diamond centers, producers, and laboratories, WFDB president Ernie Blom said.







JFC Announces ‘Facets of Hope’ Honorees

Jewelers for Children (JFC) will honor Stuart Lee of Signet Jewelers and Dennis Ulrich of the Richline Group at its annual Facets of Hope event, set for June 2016.

Both Lee, Signet’s executive vice president of merchandising, and Ulrich, Richline’s CEO and chairman of JFC, have agreed to serve as guests of honor, with the responsibility of assisting in the group’s fundraising efforts. The proceeds benefit children who are the victims of catastrophic illness or life-threatening abuse and neglect.







Slack Demand Leads to Earlier Diwali Closings

Indian diamantaires will close a week early for Diwali this year as they expect a subdued holiday season, The Times of India reported.

Work will stop by the end of October, even though the official 20-day vacation does not begin until November 5, with Diwali to be celebrated on November 11 this year. Most business owners are contemplating reopening in the first week of December, a Diamond Trading Company sightholder was quoted as saying in the report.

A fall in demand for polished stones has negatively impacted the Indian industry as the Chinese economy has slowed down. Around 300 smaller diamond units have closed permanently in recent months, cutting output capacity by 60% and rendering more than 20,000 workers redundant.







Laurelton-Reign Factory to Reopen After Tiffany Exit

A Namibian diamond cutting and polishing company that supplied Tiffany & Co. will reopen after shutting down earlier this year, but without Tiffany’s involvement, The Namibian reported, citing the country’s Diamond Commissioner, Kennedy Hamutenya.

Laurelton-Reign Diamonds, which operated as a joint venture between Tiffany subsidiary Laurelton Diamonds and Namibia’s Reign Investment, closed in August after the U.S. retailer pulled out because the supply of stones was not adequate and not the right type, the newspaper quoted Hamutenya as saying.

Reign is in the process of acquiring the company’s factory in Windhoek and is looking for new investors to enable it to operate again in the near future, Hamutenya added.















RETAIL & WHOLESALE



Rio Tinto, Pure Gold to Offer Diamond Jewelry in Middle East

Rio Tinto Group and retailer Pure Gold Jewellers struck an exclusive partnership to sell diamond jewelry in the Middle East, targeting the region’s lucrative wedding-gift market.

The British miner’s collection, marketed every year for the Hindu festival, will be available in Pure Gold stores during Diwali, with prices starting at $463 (AED 1,699) for jewelry items made from natural diamonds and hallmarked, 18-karat gold.







Worthy Raises $8M for Diamond, Colored Gem Expansion

Worthy, an online auction site for pre-owned diamonds and jewelry, raised $8 million to buy diamond and colored stone jewelry, as well as vintage watches, from consumers. The two-year-old New York City e-commerce startup, which also operates an R&D facility in Israel, previously raised more than $8.5 million.

Worthy brokers items from consumers, then insures the goods and pays to ship and authenticate them. Once the items have been inspected, they are typically placed on the e-commerce site within five days. Worthy then auctions them to mostly antique dealers and retail jewelers, paying the original owners via check, wire transfer or PayPal, and taking a cut of between 5% and 20%, depending on the price of the item.

Ben De-Kalo, Worthy’s founder and CEO, said that since the world’s diamond mines are going to be exhausted in about 50 years, business opportunities will abound in recycling already-mined diamonds, including the $1 trillion worth of polished stones estimated to be held in U.S. households.







India’s Flipkart, Malabar Partner

Indian e-commerce giant Flipkart partnered with Malabar Gold and Diamonds on its inaugural online marketplace, just ahead of the Diwali festival.

The site lists more than 1,300 designs of gold, diamond and platinum jewelry.

Flipkart delivers 5 million shipments monthly—books, electronics, makeup and clothing—to 18 million registered users in 150 cities, and its cash-on-delivery model made e-commerce more viable in India, according to Bloomberg News.







Black Friday to be Top U.S. Shopping Day

Black Friday is expected to be the busiest shopping day of the year, using both customer visits and sales dollars as indicators, according to retail analytics provider ShopperTrak.

November 27, the day after Thanksgiving Day this year in the U.S., is the day on which retailers traditionally offer promotions. The second-busiest day by both measures will be Super Saturday, which falls on December 19 this year, the last Saturday before Christmas.







Bulgari Strength Fueling Jewelry’s Growing Dominance Over Watches at LVMH

The strength of the Bulgari brand against the “repositioning” TAG Heuer label is largely responsible for the widening gap between LVMH Moët Hennessy Louis Vuitton’s sales figures for jewelry and watches, according to Chris Hollis, LVMH's director of financial communications.

“Although when you look at this gap, it's a little bit artificial as you compare watches for Bulgari, which are benefiting from the strengths of the brand, but also watches from TAG Heuer, which is in a sort of repositioning phase," Hollis said in the group’s third-quarter results conference call October 13.

Meanwhile, LVMH has appointed McKinsey & Company’s Anish Melwani as chairman and chief executive officer of LVMH Inc. from January 4, responsible for activities in North America, LVMH said in a statement October 27. Pauline Brown will step down as North America chairman at the end of 2015, it statement said October 27.







Signet Calls for Tax Equality for Brick-and-Mortar Jewelry Retailers

Signet Jewelers has called for measures to remove a perceived unfairness in the tax system that it said imposes a financial disadvantage on traditional retailers in the U.S., versus their online counterparts.

The U.S.-based jeweler’s comments, posted on Cleveland.com, came amid discussions over the introduction of the Marketplace Fairness Act of 2015 in the Congress. The act, which has yet to be passed, aims to “restore States' sovereign rights to enforce State and local sales and use tax laws.”

Currently, online sellers such as Amazon and eBay can avoid charging and collecting sales tax in states where they do not have a warehouse or another physical presence, which, according to Cleveland.com, gives them a 7% to 8% price advantage.

Under current tax laws, brick-and-mortar stores are required to charge and collect sales taxes, but the same does not apply to online sellers, James Alperin, an Ohio jeweler, said in an interview with the site. The Ohio General Assembly is prepared to pass the legislation once Congress does.







$3.1M Fancy Pink Diamond Ring Up for Auction in HK

A 12.31-carat, VVS1 pear-shaped fancy light pink diamond and diamond ring valued at an estimated $3.1 million (HKD 24 million) will be offered at a tender to be held by Hong Kong auction house Luxeford on November 10 at the country’s Conrad Hotel.

The stone is exceptionally chemically pure and flanked by pear-shaped diamond shoulders weighing 1.26 and 1.2 carats and an openwork gallery embellished with pavé-set, brilliant-cut diamonds of pink hue, Luxeford stated.

A public exhibition of this and other lots will be held at the Conrad Hotel from November 7 to 10.







Marco Bicego Rolls Out E-Commerce Site

Jewelry brand Marco Bicego launched an e-commerce site that enables visitors to browse its 11 core collections and its Unico line online, National Jeweler reported.

Consumers can view online merchandise by category, collection, technique and style, as well as access updates about the brand and events.

Marco Bicego is set to unveil its latest collection, Luce, this December exclusively on the new site, according to National Jeweler. The line will feature a range of silhouettes crafted in thin, irregularly shaped 18-karat yellow-gold hand-engraved strands, some of which are piece-set with diamonds. Retail prices will range from $1,500 to $4,000.







J.C. Penney Lays off 300

J.C. Penney Company laid off 300 staffers at its headquarters in Plano, Texas, citing a need to simplify the business and increase productivity, The Dallas Morning News reported.

The move, which follows the appointment of Marvin Ellison as CEO on August 1, affects just under 10% of the company’s 3,400 employees. Since taking the helm, Ellison has been reviewing the business with the aim of identifying areas for cost reduction, the report said.

It was “essential that our operations align with the strategic priorities of the company,” J.C. Penney spokeswoman Dapne Avila said in The Dallas Morning News.“Over the last several months, the company has been evaluating its home office structure to identify opportunities for greater simplification and higher productivity.”

J.C. Penney aims to achieve roughly $2 billion in incremental sales by 2017, resulting in mid-single-digit sales growth during the period, it said in a statement posted on its website last October.















MINING



Petra Diamonds Reports Zero Revenue

Petra Diamonds reported that it generated no revenue during its first fiscal quarter that ended on September 30, though its production rose 1% year on year to 842,796 carats, moving the company toward its goal of producing more than 3.3 million carats in fiscal 2016.

“The diamond market continues to be impacted by excess polished inventory in the pipeline, a slowdown in demand, particularly from China, as well as financing and profitability issues in the midstream,” Petra explained in its trading update.

Petra didn’t hold any tender sales during the quarter. Consequently, its diamond inventory rose 90% to 1.18 million carats as of September 30.

The company held its first tender of the year in October, selling 696,801 carats for $68.9 million with 96% of the goods on offer sold. The average price achieved was $99 per carat, which was 8.8% below the average price garnered at Petra’s previous sales in May and June.















GENERAL



India’s Central Bank Plan to Cut Gold Imports

The Reserve Bank of India unveiled a set of guidelines designed to govern the gold monetization scheme, which is expected to reduce the approximately 900-ton total imported annually, according to information posted on the Gem & Jewellery Export Promotion Council (GJEPC) website.

The government wants to make some part of the country’s 20,000-ton idle gold inventory, held by individuals, trusts or mutual funds, available, as high gold imports were a contributing factor in the current account deficit.







Gem-A Appoints Interim CEO

The Council of the Gemmological Association of Great Britain (Gem-A) appointed Nick Jones as interim CEO, after the post had been unoccupied for several months.

Jones’ role as interim CEO will be to manage the trade association and advise the governing council on the future structure of the group. Jones is a chartered accountant who recently retired after 12 years at the Society of Operations Engineers (SOE), having served as its CEO for the past six years.







South Africa Told Its Lagging Diamond Industry Needs a Boost

South Africa needs to boost its lagging diamond industry to re-establish the industry’s former glory, two keynote speakers said at the nation’s first Diamond Indaba in Johannesburg.

Ernie Blom, president of the World Federation of Diamond Bourses, called on delegates at the conference to “work together as partners or we will all perish together as failures,” in a speech posted online by Mining Weekly October 28.

Even though South Africa is the world’s fifth-largest diamond producer and home to some of the diamond mining industry’s most iconic names, the number of workers employed in the sector in South Africa had fallen from a peak of 4,500 to 200 today, Blom said.

“We need to consider the benefits that we can derive as a region and individual countries if we collaborate to establish SADC as a diamond beneficiation hub," Barend Petersen, the executive chairperson at De Beers Consolidated Mines, told delegates at the Indaba, an African term for a conference, in a speech posted by Mining Weekly.















ECONWATCH



Diamond Industry Stock Report

Shares of miners saw losses this past week, led by Petra Diamonds (-16%) after the South African miner reported disappointing results. Among retailers, JC Penney (-5.5%) and Nordstrom (-4.5%) lost value. Kering (+9%) led gains in European luxury stocks after it said 3Q revenue was fueled by a "surge" of Chinese tourist shoppers in Western Europe and Japan.

View the detailed industry stock report.
Oct. 29 (10:52 GMT) Oct. 22 (13:00 GMT) Chng.
$1 = Euro 0.91 0.89 0.024
$1 = Rupee 65.24 65.10 0.1
$1 = Israel Shekel 3.89 3.87 0.02
$1 = Rand 13.77 13.51 0.27
$1 = Canadian Dollar 1.32 1.31 0.01

Precious Metals
Gold $1,160.15 $1,167.98 -$7.83
Platinum $979.50 $979.50 $0.00
Silver $15.96 $15.82 $0.14

Stock Indexes Chng.
BSE 26,838.14 27,287.66 -449.52 -1.6%
Dow Jones 17,779.52 17,168.61 610.91 3.6%
FTSE 6,377.83 6,339.07 38.76 0.6%
Hang Seng 22,819.94 22,845.37 -25.43 -0.1%
S&P 500 2,090.35 2,018.94 71.41 3.5%
Yahoo! Jewelry 1,048.17 1,018.87 29.30 2.9%

V Bratislave ukradli z predajne ALO diamantový prsteň
www.topky.sk/cl/10/1508979/V-Bratislave-zmizol-diamant-obrovskej-hodnoty--FOTO-zlodejov--kto-ich-najde--ma-rozpravkovu-odmenu

Zažil som to presne v tomto termíne ,ale v roku 2011 prsteň z modrým diamantom bol fuččč , mimo iných vecí , hajzíkom stačilo 16 sekúnd...

Možno to bol človek s dobrým srdcom, čo chcel urobiť radosť manželke...

Určite ,ale v inom svetadiely .

Rapaport Weekly Market Comment November 12, 2015


Rough trading freezes as sightholders defer most goods at unprecedented $70M De Beers sight with factories closing for extended Diwali break. Shortages developing before important U.S. holiday season which is reducing sales. High price to pay for high prices. Chinese single’s day (11/11) online sales lift Far East sentiment (1derful). Chow Tai Fook cautions 1H profit -50% on weak HK market. Richemont 1H jewelry sales +18% to $3.4B. Sotheby’s nets $141M (83% by lot) with cushion, 12.03ct., fancy vivid blue, IF diamond selling for $48.5M ($4M/ct.). Christie's fetches $109M (80% by lot) as cushion, 16.08ct., fancy vivid pink, VVS2 diamonds sells for $28.5M ($1.8/ct.). Happy Diwali.


RapNet Data: November 11

Diamonds 1,189,157
Value $8,158,941,701
Carats 1,324,505
Average Discount -28.55%

www.rapnet.com


The RapNet Diamond Index (RAPI) is the average price for the top 25 diamond qualities (D-H, IF-VS2). It is based on the 10 best priced diamonds for each quality.




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QUOTE OF THE WEEK
We recognize that there are challenges in the industry and that we’re still in a destocking period. So our focus was to be flexible to meet sightholder needs.

David Johnson, head of midstream communications at De Beers, on flexibility at the November sight









MARKETS




United States: Steady polished trading but suppliers still waiting for holiday upswing. Buyers pushing for higher discounts and getting better prices in Mumbai than New York. Good deals for cash buyers...

Belgium: Polished trading quiet with slow demand. Indian dealers away for Diwali. Sentiment improving in anticipation of Christmas holiday season. Good demand for 0.25-1ct., G-J, VVS-SI diamonds...

Hong Kong: Some improvement as Nov. 11 “single’s day” special online deals keep diamond traders busy. Indian buyers and suppliers off the market for Diwali...

India: Market sentiment weak as trading halts for Diwali break. Mumbai dealers away for a week (Nov. 7-13) and factories to remain shut until end of the month...

Israel: Trading quiet for this time of year. Buyers looking for deals at lower prices with suppliers compromising on inventory that’s hard to sell. Dealers focused on filling U.S. holiday orders...

Click here to continue reading















INSIGHTS



Beautiful Diamonds that Sell in Any Market

The hype surrounding Sotheby’s and Christie’s auctions in Geneva this week created a buzz in the diamond trade that is otherwise starved for excitement...

Click here to continue reading















INDUSTRY



U.S. Polished Diamond Imports -23% in September

U.S. polished diamond imports fell 23% year on year to $1.6 billion in September, the second-lowest monthly figure so far this year. Diamond imports by weight fell 19% to 923,229 carats, at an average price of $1,774 per carat. Polished diamond exports, meanwhile, fell 17% to $1.5 billion, driving net imports down 37% to $178.1 million. In August, imports were $1.6 billion.

Rough diamond exports soared 199% to $14.9 million, while rough imports increased 16% in September to $34.8 million, leaving net rough imports down 21% at $19.9 million. The net diamond account, reflecting the difference between net imports and exports, dropped 50% to $398.8 million.







De Beers Sight Slumps to Estimated $70M

De Beers recorded one of its smallest ever contract sales in November as the November sight closed with an estimated value of $70 million. The rough diamond supplier kept prices stable and enabled extra flexibility due to the slump in sightholder demand.

“It was a small sight as we expected because of the Diwali holidays,” said David Johnson, head of midstream communications for De Beers. “We recognize that there are challenges in the industry and that we’re still in a destocking period. So our focus was to be flexible to meet sightholder needs.”

Sightholders could defer their entire November allocations to December, or bring their December supply forward, among other options. Most chose to defer.







Belgium’s Polished Exports -27%

Belgium’s polished diamond exports fell 27% year on year to $929 million in October, according to data from the Antwerp World Diamond Council. By volume, polished exports dropped 14% to 484,158 carats, while the average price of the exports decreased 15% to $1,919 per carat.

Polished imports fell 25% to $880 million in October and the country’s net polished exports, representing the excess of exports over imports, tumbled 51% to $49.4 million.

Rough imports dropped 14% to $962 million during the month, while rough exports increased 1% to $1.01 billion. Net rough imports, representing imports minus exports, fell to negative $48.9 million compared with a surplus of $121 million one year earlier.

The country’s October net diamond account, or total exports of rough and polished less total imports, was positive $98.2 million compared with a deficit of $20 million in October 2014.







Sarine Posts 3Q Loss, Revenue -53%

Israel’s Sarine Technologies, a diamond manufacturing equipment maker, reported revenue fell 53% in the third quarter to $9.5 million in the period to September 30. It posted a loss of $1.4 million, compared with a profit of $5.7 million a year ago. Revenue from India, the largest contributor to sales, plummeted 64% to $6 million.

Results were dampened by higher prices of rough and increased polished inventory, which impacted business activity, the company said. Performance was particularly affected by the disappointing De Beers’ July and August sights and ALROSA’s September tender, it added.







DDC Expands Arbitration to Cover Disputes with Non-Members

Members of the Diamond Dealers Club (DDC) of New York will be able to use the organization’s arbitration services to resolve disputes over transactions with non-members following an expansion of the service.

DDC members can now take cases to the trade group’s arbitration program by putting an arbitration clause into memos or invoices, or on their letterhead, the DDC said in a statement.

The move is aimed at increasing the safety and efficiency of diamond and jewelry transactions, the statement said.















RETAIL & WHOLESALE



Blue Moon Sold for Record $48.5M

Sotheby’s has auctioned the 12.03-carat Blue Moon diamond for $48.5 million, or $4 million per carat, setting what the auctioneer claims is a world record for a diamond of any color.

The internally flawless diamond sold at a Sotheby’s sale in Geneva on November 11, breaking the previous record set when the auction house sold the 24.78-carat Graff Pink diamond for $46.2 million in the same city in 2010. It was expected to go for between $35 million and $55 million. The stone was sold by New York jewelry company Cora International to a Hong Kong-based buyer, later reported to be Hong Kong real estate investor Joseph Lau. The previous day, he purchased the 16.08-carat ‘Sweet Josephine’ pink diamond for $28.6 million at Christie’s auction (see story).

Total sales at Sotheby’s auction were $139.1 million, with 83% of lots sold.







Christie’s Sells Pink Diamond for $29M

Christie’s sold a 16.08-carat pink diamond for $28.6 million (CHF 28.7 million) at its auction in Geneva on November 10.

The large stone with a rare pink hue, set in a platinum and gold ring surrounded by a double row of pavé-set white diamonds, was sold to an unidentified Chinese client based in Hong Kong, who renamed it ‘Sweet Josephine.’ Its pre-sale estimate was $23 million to $28 million. The origin of the diamond and the identity of its seller were not disclosed.







Pandora’s Revenue +37%

Danish jewelry retailer Pandora’s revenue jumped 37 percent to $563.7 million (DKK 3.9 billion) year on year in the third quarter that ended September 30.

The company closed 116 unbranded stores in the Americas during the third quarter, mostly in the US, it said. The overall number of points of sale in the Americas was cut by 212, or 6 percent, to 3,124, compared with the third quarter last year. Globally, the number of points of sale dropped by 308 to 9,533.

Ring sales jumped 79 percent to $88.7 million.







Gitanjali’s Profit, Revenue Surge

India’s Gitanjali Gems sales surged 40% to $520.5 million (INR 34 billion) in the second quarter. Profit soared 113% to $6.2 million in the three months to September 30, the company said in a statement.

However, diamond sales slumped 30% to $99 million and profit from the diamonds division plunged 65% to $1.2 million. Revenue from the jewelry segment surged 71% to $42.8 million, the statement said. Overall revenue from India jumped 69% to $216.8 million and sales from the rest of the world grew 25% to $303.8 million.

Revenue increased 39% to $948.6 million for the half year to September 30, the company said.







Chow Tai Fook Expects Profit Drop

Hong Kong-based Chow Tai Fook, the world’s largest listed jeweler, warned its profit for the six months ended September 30 could be half of the comparable period last year due to weak consumer sentiment in Hong Kong and Macau, according to a statement to the Hong Kong stock exchange.

The jeweler said it also expects to report lower gross profit margins due in part to a change in its product mix with an increased sale of gold products. The company expects to report results for the period on November 24.







Christie’s To Auction Thatcher’s Diamond Jewelry

Former UK Prime Minister Margaret Thatcher’s emerald and diamond necklace by Chaumet, dating back to about 1930, will be among the items Christie’s will auction next month in London.

Christie’s will tender the piece valued at $181,200 (GBP 120,000) to $271,900 alongside 150 other items from the Iron Lady’s collection on December 15, it said on its website.

A George III pavé-set diamond flower brooch from the 1800s, comprising old cushion, pear and circular-cut diamonds, will also be on sale. Its value is expected to be $12,100 to $15,100. A further 200 lots will be available in online-only bids from December 3 to December 16.







Sotheby’s Revenue +46%

Sotheby’s revenue increased 46 percent to $137.9 million year on year in the third quarter that ended September 30. The net loss was cut 35 percent to $17.9 million, or 0.26 per diluted share, the auctioneer said in a statement.

The company also said net auction sales increased 15 percent because of a change on its events calendar. Auction commission revenues decreased, largely due to significantly weaker sales in higher-margin categories, including jewelry.







Shrenuj’s Diamond Sales +19%

Shrenuj & Company Ltd. reported that sales increased 16 percent to $458.7 million (INR 30.3 billion) year on year in the first half to September 30. Net profit for the period slumped 44 percent to $4 million, the Indian polished diamond and jewelry manufacturer said in a statement November 10.

Diamond sales advanced 19 percent to $414.1 million, while sales of studded jewelry increased 2 percent to $61.1 million. Profit on diamonds before tax and finance costs increased 13 percent to $16 million, while profit on studded jewelry fell 34 percent to $2.1 million.







Alibaba Settles $5bn in First 90 Minutes of ‘Singles Day’

Five billion dollars were settled through third-party online payment platform Alipay in the first hour and a half of the ‘Singles Day,’ an annual Chinese festival for bachelors, Alibaba Group said in a statement. More than $14 billion in sales was reported by the company.

Sales to the tune of $3.9 billion were recorded in the first hour from midnight on November 11, of which $2.9 billion, or 74 percent, was through transactions made on mobile phones.

Singles Day takes place on November 11 each year because the date in numbers has four “ones” in a row and has become a key day in the retail calendar.















MINING



Letšeng Sales +7%

Gem Diamonds' rough diamond sales advanced 7 percent to $65.6 million year on year in the third quarter to September. It sold 25,460 carats from its Letšeng mine in Lesotho, an increase of 8 percent, and average prices fell 1 percent to $2,578 per carat. Recovery increased 4 percent to 29,460 carats.

Recovery guidance for the full year was adjusted upwards to 105,000 to 108,000 carats, with sales expected at between 103,000 and 105,000.

It also recovered 31,922 carats from Ghaghoo, a Botswanan mine that opened in September 2014.







Lucara’s 3Q Revenue Flat, Profit +6%

Lucara Diamond Corp., which operates the Karowe mine in Botswana, reported that revenue was flat at $90.9 million year on year in the third quarter to September 30. Profit for the period increased 6% to $44.2 million.

Production at Lucara’s Karowe mine slipped 5% to 100,651 carats, but mining performed well, the company said, having recovered 160 special stones of more than 10.8 carats. The company’s special stone production had an average size of 33.49 carats, a 34% increase on the 2014 full year.

The company held one exceptional stone tender and a regular tender during the quarter, which between them generated proceeds of $89.2 million from the sale of 76,156 carats, or $1,171 per carat.







Murowa Working to Boost Production

Zimbabwe’s Murowa mine, formerly controlled by Rio Tinto, is set for a return to diamond production, after earlier fears that it was shutting down following the key investor’s exit.

The mine is working on boosting production, Zimbabwean newspaper The Chronicle cited Lovemore Chihota, chairman of operator Murowa Diamonds, as saying. Rio Tinto pulled out of the project in June, selling its 77.8 percent stake to RioZim.















GENERAL



GIA to Hold Synthetics Seminars in Israel

The Gemological Institute of America (GIA) will organize two seminars on methods of treating diamonds and recognizing synthetics at the Israel Diamond Exchange in mid-November.

GIA researchers James Shigley and Brenda Harwick will speak at the event, which will be held on November 15 and 16, the Israel Diamond Institute said on its website. Identifying Diamond Treatments will focus on laser drilling, fracture filling, high-pressure, high-temperature (HPHT) treatment, irradiation and other treatment processes.

Identifying Synthetic Diamonds will give information on HPHT and diamond growth using chemical vapor deposition and ways of distinguishing them from natural stones.















ECONWATCH



Diamond Industry Stock Report

Chinese retailer stocks were down after both Chow Tai Fook (-9%) and Luk Fook (-7%) issued profit warnings. U.S. retailers were generally stable except Macy’s (-20%). Miners’ shares were largely flat this past week, but there were sizable falls for the UK’s Petra Diamonds (-29%), Anglo American (-19%) and Canada’s Dominion Diamond Corporation (-14%). True North was the strongest mining stock (+13%). In India, there were sharp declines for India’s C. Mahendra (-18%), Classic Diamond (-11%) and Goldiam International (-9.5%).

View the detailed industry stock report.
Nov. 12 (10:00 GMT) Nov. 5 (07:53 GMT) Chng.
$1 = Euro 0.93 0.92 0.010
$1 = Rupee 66.01 65.75 0.3
$1 = Israel Shekel 3.90 3.90 0.00
$1 = Rand 14.21 13.95 0.26
$1 = Canadian Dollar 1.33 1.32 0.01

Precious Metals
Gold $1,087.45 $1,108.85 -$21.40
Platinum $979.50 $979.50 $0.00
Silver $14.42 $15.02 -$0.60

Stock Indexes Chng.
BSE 25,866.95 26,475.41 -608.46 -2.3%
Dow Jones 17,702.22 17,867.58 -165.36 -0.9%
FTSE 6,255.82 6,412.88 -157.06 -2.4%
Hang Seng 22,888.92 23,026.49 -137.57 -0.6%
S&P 500 2,075.00 2,102.31 -27.31 -1.3%
Yahoo! Jewelry 1,050.48 1,058.30 -7.82 -0.7%

Najväčšie diamantové lúpeže:

www.aktuality.sk/clanok/308189/kradez-rozpravkoveho-prstena-v-bratislave-je-len-kvapka-v-mori-toto-su-najvacsie-diamantove-lupeze/

Pekný kúsok.

Rapaport Weekly Market Comment November 19, 2015


Polished trading improves slightly, supported by shortages and U.S. holiday demand. Retailers discounting for Black Friday with Amazon offering 70% on fashion jewelry and Macy’s 30% on engagement rings. U.S. Oct. price index for jewelry -1%. India’s Diwali jewelry sales moderate. HK jewelers under pressure as Luk Fook warns 1H profit -40%. Gold slump to 5-year low ($1,065/oz.) may boost Chinese New Year sales of low-margin gold jewelry. Rough market very quiet as cutters refuse to manufacture at high prices. India’s Oct. polished exports -17%. Civil Society boycotts Kimberley Process over UAE chairmanship. Lucara finds historic 1,111ct. and 843ct. diamonds at Botswana Karowe mine.


RapNet Data: November 19

Diamonds 1,142,147
Value $8,009,571,477
Carats 1,258,453
Average Discount -28.88%

www.rapnet.com

The RapNet Diamond Index (RAPI) is the average price for the top 25 diamond qualities (D-H, IF-VS2). It is based on the 10 best priced diamonds for each quality.

Get Current Price List | Subscribe to Rapaport | Join RapNet



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QUOTE OF THE WEEK
The significance of the recovery of a gem-quality stone larger than 1,000 carats, the largest for more than a century, cannot be overstated.

Lucara president and chief executive officer William Lamb on the recovery of a 1,111-carat diamond from the Karowe mine in Botswana


MARKETS

United States: Sentiment improving with some last-minute holiday demand ahead of Black Friday / Thanksgiving weekend. Buyers more aggressive...

Belgium: Antwerp trading quiet. Concern that Paris attacks will reduce European consumer and tourist spending this Christmas...

Hong Kong: Some improvement with buyers looking for bargains in Far East while India is closed.Savvy diamond dealers capitalize on Single’s Day ...

India: Activity slow with manufacturers still on Diwali break. Dealers slowly returning to work and regular activity expected to resume next week...

Israel: Slight improvement in the past few weeks with dealers focused on filling U.S. holiday orders. Dealers lack confidence as turnover below...

Click here to continue reading


INDUSTRY

Civil Society Coalition to Boycott Kimberley Process

The Kimberley Process Civil Society Coalition (CSC) will boycott next year’s Kimberley Process (KP) in response to the United Arab Emirates’ (UAE) chairmanship of the organization. The group said it lacked a sincere partner in the effort to work with the UAE to address governance issues ahead of the country taking the helm in 2016.

The CSC said concern has been raised about the “undervaluation” of diamonds entering the UAE, claiming that exports of diamonds from Dubai in 2014 were on average 40% higher than their original import values. Ahmed Bin Sulayem, executive chairman of the Dubai Multi Commodities Centre (DMCC), said the CSC’s remarks were “baseless.”

India’s Polished Exports -17%

India’s polished diamond exports fell 17% to $1.8 billion year on year in October, according to data from the Gem & Jewellery Export Promotion Council. The average price of the exports plunged 29% to $499.44 per carat.

Polished imports plummeted 53% to $282.2 million during the month. As a result, net polished exports, or exports less imports, declined 4% to $1.6 billion.

India’s rough imports increased 15% to $1.1 billion in October and rough exports slumped 38% to $66.7 million. Net rough imports increased 21% to $1 billion.

The net diamond account, representing the excess of total exports of polished and rough over total imports, fell 30% to $551.1 million.

IDE President Won’t Seek Re-election

Israel Diamond Exchange (IDE) president Shmuel Schnitzer will not run for re-election in mid-December, a spokesperson for the IDE confirmed with Rapaport News.

The election is being contested between Yoram Dvash, owner of Yoram Dvash Diamonds, and Arnon Yuval, partner at S. Yuval & Co. Both currently serve on the IDE’s executive committee.

Schnitzer, who is chief executive officer and chairman of S. Schnitzer Diamonds, served as IDE president from October 2013 following a previous term from 1998 to 2004. He was president of the World Federation of Diamond Bourses between 2002 until 2006.

Rajesh Exports’ Revenue, Profit Surge

Indian jewelry manufacturer and marketer Rajesh Exports reported sales rose about four-fold in the second quarter, pushing up net profit by 75%.

Revenue surged to $6.7 billion (INR 443.2 billion) in the three-month period that ended September 30, the company said in a statement. Net profit climbed to $43.3 million as expenses advanced to $6.6 billion.

Results included revenue and profit figures for August and September from metal refining group Valcambi, which Rajesh acquired for $400 million at the end of July.

Scio’s Revenue Doubles, Loss Widens

Lab-grown diamond producer Scio Diamond Technology Corporation reported sales more than doubled in the second quarter following an increase in the production of single-crystal colorless stones.

Revenue surged to $236,292 in the three months that ended September 30, the Greenville, South Carolina-based company said in a statement. Cost of goods sold jumped 13% to $461,279 from a year ago and the net loss rose 8% over the same period to $809,588.

RETAIL & WHOLESALE

U.S. Jewelry Prices Fall 1% in October

The U.S. consumer price index (CPI) for jewelry fell 1.1% in October from the previous month, according to the U.S. Bureau of Labor Statistics. The CPI’s reading for the month was down 2.2% from a year ago.

October’s CPI for watches at 124.30 points was down 1.4% over the previous month; it was flat relative to a year earlier.

Meanwhile, U.S. specialty jewelry-store sales in September barely changed year on year, dipping 0.6% to $2 billion, according to the U.S. Census Bureau. On an adjusted basis taking into account seasonal fluctuations, sales dropped 0.5% to $2.5 billion. The sales data lags by a month.

Swiss Watch Exports Slip 12%

Swiss watch exports fell 12.3% year on year to $2 billion (CHF 2 billion) in October as exports to Hong Kong, China and the U.S. fell. Wristwatch exports decreased by 13% to $1.9 billion, while other timepiece exports declined 4.4% to $119 million, according to figures from the Federation of the Swiss Watch Industry.

The poor result stems primarily from an acute contraction of the main markets of Asia and the United States, the Federation said.

The largest drop in exports occurred in watches made from gold and steel, which slid 22% to $260 million. Exports to key consumer markets dropped substantially, with sales to Hong Kong down 39% to $258 million, exports to the U.S. down 12% to $232 million and sales to China declining 5% to $120 million.


Macy’s Cuts Prices for Black Friday

U.S. retailer Macy’s will offer shoppers a 30% discount on diamond engagement rings as part of its Black Friday specials, according to a company announcement.

The sale will include purchases made in-store and online beginning in the evening of Thanksgiving, November 26. Select items in the retailer’s fashion jewelry lines will be priced at “buy one, get one free.”

Amazon to Offer 70% off Diamond Jewelry

Amazon.com will offer discounts of as much as 70% on selected diamond jewelry and up to 50% off selected luxury watches for women as part of its Black Friday deals.

The discount bonanza will start November 20, a week ahead of Black Friday, with new deals being added on a dedicated site as often as every five minutes for eight consecutive days. It will also offer 10 ‘Deals of the Day’ starting at midnight on Thanksgiving, November 26, and up to another 10 more promotions on Black Friday, November 27.

Last year, holiday-season sales from Amazon’s e-commerce app doubled in the U.S., and Black Friday had the fastest growth in mobile shopping, according to the company.

Blackstone Acquires Diamonds Direct

Private equity firm Blackstone Group has acquired jewelry retailer Diamonds Direct for an undisclosed sum. Diamonds Direct, founded in 1995 in Charlotte, North Carolina, has grown to become a multi-channel retailer, with several stores across the U.S. as well as an e-commerce platform.

The takeover, which closed in early November, was completed through an affiliate company, Blackstone Tactical Opportunities, the U.S.-based asset manager said in a statement November 16. The same affiliate acquired equity in Canadian miner Stornoway Diamond Corporation and a minority interest in the Renard diamond stream in Québec in April.


Luk Fook Issues Profit Warning

Luk Fook Holdings’ profit will probably plummet about 40% as the Hong Kong-based retailer saw a decline in sales amid rising costs in the first half of its calendar year.

Revenue from gem-set jewelry products will fall, cutting gross margin, in the six months to September 30, the company said in its guidance before the release of full results on November 30.

MINING

Lucara Finds Second-Largest Diamond in History

Lucara Diamond Corp. has recovered a 1,111-carat stone from its Karowe mine in Botswana, claiming it is the second-largest gem-quality diamond ever recovered and the largest since the 3,106-carat Cullinan diamond in 1905.

The type-II stone, measuring 65mm x 56mm x 40mm, is the largest diamond ever retrieved through a modern processing facility and the largest recovered in Botswana, according to the Canadian miner.

“The significance of the recovery of a gem-quality stone larger than 1,000 carats, the largest for more than a century, cannot be overstated,” president and chief executive officer William Lamb said. Lucara also recovered two diamonds weighing 813 and 374 carats from Karowe, it said.

The announcement came after the group reported sales of $29.7 million from its recent exceptional stone tender, with 13 diamonds from Karowe selling for an average of $20,625 per carat.

ALROSA Makes Double Hire

ALROSA has hired Vladislav Zhdanov as vice president from machine maker Zhejiang Noblelift Equipment JSC, handing him responsibility for the Russian miner’s financial security, internal audit and risk management. The appointment follows the Russian government’s recent approval of a corporate governance code that mandates more effective risk management and calls for the creation of relevant new business units.

Meanwhile, the miner appointed Oleg Petrov as director of its United Selling Organisation (USO), the Moscow-based unit that sorts, prepares, valuates and sells ALROSA's diamond production. Petrov joined the Russian mining group in September as an adviser to president Andrey Zharkov. He was previously sales and marketing director at potash fertilizer company PJSC Uralkali, ALROSA said.


De Beers Appoints Strategy Director

De Beers has appointed Bruce Cleaver as group director for strategy and business development, responsible for industry trend analysis. He will retain his place on the board as a non-executive director, according to parent company Anglo American.

Chief financial officer Gareth Mostyn has taken on Cleaver’s previous role as executive head of strategy and corporate affairs. Both appointments are effective January 1, 2016. A new CFO will be chosen in due course, Anglo said.

GENERAL

De Beers To Host Botswana Conference

De Beers will co-host a conference in Gaborone later this month in conjunction with Botswana’s Ministry for Minerals, Energy and Water Resources, dealing with the impact of the diamond industry on the country’s development.

The two-day event on November 23 and 24, entitled ‘Connecting Resources and Society,’ will address how the responsible management of resources can ensure diamond exploration benefits future generations. All sessions will be available to view online.

India Plans Advertising Push

India’s Gem & Jewellery Export Promotion Council (GJEPC) is planning to team up with the world’s leading miners to drum up interest in the country’s diamonds through promotional campaigns and celebrity endorsements, according to The Economic Times.

The council is considering joining hands with the likes of Rio Tinto, ALROSA and De Beers for marketing diamonds into strategic hubs such as China, Latin America and the Middle East, the daily newspaper reported.

The trade body will hire country-specific advertizing agencies to initiate campaigns based on local purchasing trends, the newspaper cited GJEPC chairman Praveen Shankar Pandya as saying.


ECONWATCH

Diamond Industry Stock Report

Industry-related stocks were broadly down over the past week. U.S. retailers fell, led by Birks Group (-16%) and Nordstrom (-10%). Chinese jewelry retailer shares followed declines in the local Hang Seng index, led by Luk Fook (-7.6%) and Chow Tai Fook (-3.4%). Miners’ shares were largely down, including declines in Rockwell Diamonds (-15%) and Firestone Diamonds (-15%).

View the detailed industry stock report.
Nov. 19 (10:30 GMT) Nov. 12 (10:00 GMT) Chng.
Currencies
$1 = Euro 0.94 0.93 0.003
$1 = Rupee 66.16 66.01 0.1
$1 = Israel Shekel 3.89 3.90 -0.01
$1 = Rand 14.13 14.21 -0.08
$1 = Canadian Dollar 1.33 1.33 0.00

Precious Metals Chng.
Gold $1,070.72 $1,087.45 -$16.73 -1.5%
Platinum $849.42 $979.50 -$130.08 -13.3%
Silver $14.18 $14.42 -$0.24 -1.7%

Stock Indexes Chng.
BSE 25,792.40 25,866.95 -74.55 -0.3%
Dow Jones 17,737.16 17,702.22 34.94 0.2%
FTSE 6,255.82 6,255.82 0.00 0.0%
Hang Seng 22,888.92 22,888.92 0.00 0.0%
S&P 500 2,075.00 2,075.00 0.00 0.0%
Yahoo! Jewelry 1,050.48 1,050.48 0.00 0.0%

Rapaport Weekly Market Comment November 26, 2015


Rapaport calls for resignation of De Beers CEO and 30-50% rough price cut to inject liquidity and profits into diamond trade. De Beers stops buying and paying Botswana for rough, 2H15 De Beers rough sales expected to plummet at least 60%, possibly 70% Y/Y. (See Rough Bubble Bust article.) U.S. retail okay as holiday season starts. Dealers hope for last-minute orders but concerned as jewelers inventories are high. ALROSA 3Q sales -4% to $619M, loss -47% to $231M, inventory ~20M cts. worth ~$1B ($50/ct.). Signet 3Q sales +3% to $1.2B, profit of $15M vs. loss of $1.3M. Tiffany 3Q sales -2% to $938M, profit +137% to $91M. Chow Tai Fook 1H sales -4% to $3.6B, profit -43% to $201M.


RapNet Data: November 25

Diamonds 1,142,169
Value $8,071,704,603
Carats 1,267,908
Average Discount -28.60%

www.rapnet.com


The RapNet Diamond Index (RAPI) is the average price for the top 25 diamond qualities (D-H, IF-VS2). It is based on the 10 best priced diamonds for each quality.

Get Current Price List | Subscribe to Rapaport | Join RapNet


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QUOTE OF THE WEEK
Without a viable, profitable and sustainable diamond trade distributing their diamonds, De Beers diamond mines are worthless.

Martin Rapaport, chairman of the Rapaport Group, on De Beers refusal to lower rough diamond prices

MARKETS

United States: New York trading quiet as many businesses close early for long Thanksgiving weekend. Demand weaker than usual before holiday...

Belgium: Sentiment much better than few weeks ago with holiday demand and shortages supporting the market. Very few fresh goods on the market...

Hong Kong: Polished trading stable but cautious with some early Chinese New Year demand. Good demand for dossiers...

India: Trading slowly returning to normal after Diwali with manufacturers expected to return next week. SI-I2 demand strong for U.S. market...

Israel: Gradual improvement continues with dealers focused on filling U.S. holiday demand. Some orders difficult to fill due to shortages...

Click here to continue reading

INSIGHTS

How Botswana Will Find Independence

Fifty years on from independence, Botswana still finds itself in desperate need of improvements in its economic diversity. Its unsustainable reliance on diamonds is the reason why...

Click here to continue reading

INDUSTRY
Rapaport Calls for Resignation of De Beers CEO

In an article published this week (“Rough Bubble Bust”), Martin Rapaport details how and why rough diamond prices have been manipulated to artificially high unsustainable levels and the negative impact this is having on the profitability, liquidity and viability of the diamond trade. The fact that rough prices are significantly higher than resultant polished prices is reducing De Beers sales and profits. De Beers suspension of purchases and payments for Botswana diamonds is also having a negative impact on the country.

“The rough diamond distribution system is collapsing as De Beers and other mining companies attempt to force unsustainable artificially high rough diamond prices on the diamond trade. Rough prices are higher than polished prices, which have come down to realistic levels due to the downturn in the global economy. The mining company’s refusal to lower rough prices is destroying the diamond trade, creating severe financial losses, illiquidity, supply shortages, and the loss of tens of thousands of jobs. De Beers must immediately inject liquidity into the diamond trade by reducing rough diamond prices 30-50%. There is no justification for rough prices higher than polished diamond prices. Without a viable, profitable and sustainable diamond trade distributing their diamonds, De Beers diamond mines are worthless,” said Martin Rapaport, Chairman of the Rapaport Group.

De Beers Shareholders to Meet on Diamond Prices

De Beers shareholders were scheduled to meet November 26 to discuss diamond prices, Botswana Minerals, Energy and Water Resources Minister Kitso Mokaila said.

Speaking November 23 at a conference in Gaborone, the minister said “diamond prices have been coming down and something more sustainable needs to be done. The shareholders need to get their heads together.” Anglo American PLC owns 85 percent of De Beers and the government of Botswana owns the rest.

The conference, exploring the role of Botswana’s diamond industry in the socio-economic development of the country since independence, was hosted jointly by De Beers and the ministry November 23 and 24.

Diamonds in Hacking Case Still Unreturned

Only 175 of the 1,042 diamonds whose Gemological Institute of America (GIA) reports were invalidated last month following a hacking incident have been returned for examination, the organization said.

“It is imperative that all of the diamonds and their reports be returned to GIA for examination to remove the fraudulently altered reports from the market,” the GIA said in a statement November 25.

The GIA nullified the certificates after the gems’ color and clarity reports were changed by hackers. The group requested on October 23 that anyone in possession of any of the stones or reports return them immediately for a free examination.

DPA Hires Creative Agency

The Diamond Producers Association (DPA) has hired creative agency Mother New York to help kick-start the appeal of diamonds to young people.

The move comes after the consortium of miners, including ALROSA, De Beers and Rio Tinto, appointed Sally Morrison as managing director of marketing in October. She has responsibility for all of the organization's marketing activities, including the appointment of an agency partner.

Israeli Diamond Industry Offers 50% Cyber-Monday Cuts

The Israeli Diamond Industry is offering discounts of up to 50% for Cyber Monday, the annual post-Thanksgiving online sales bonanza.

Jewels are being sold from a dedicated promotions website, which will run until December 4, the trade group said in a statement November 23. List prices of items of offer range from $700 to $450,000 and reductions start at 6%.

Categories of jewels in the promotion include polished white and natural fancy color stones, engagement rings, pendants, earrings and bracelets, according to the statement.

Silver Supply Will Drop in 2015: Reuters

Silver supply will decrease 3 percent this year as production is predicted to grow at its slowest pace in 13 years following weaker demand from the jewelry and electronics industries, and China, according to a forecast from Thomson Reuters. Bullion coin sales jumped to a new record.

Total supply is expected to slide to 1,014.4 million ounces (Moz), Erica Rannestad, senior analyst in the GFMS team at Thomson Reuters, said at an event hosted by the Silver Institute. Output is projected to record its narrowest advance since 2002, up 0.3 percent to 867.2 Moz.

Jewelry fabrication is expected to fall 2.5 percent from a year earlier as the industry in China plummeted 25 percent.


Namibian Factories Decimated in Downturn

Nine of Namibia’s 13 diamond-cutting and polishing factories have shut down over the last few years because of a downturn in the industry across the world, The Namibian cited the country’s minister for mines and energy Obeth Kandjoze as saying.

The four remaining cutting centers now employ 700 workers compared with 2,000 at the peak, Kandjoze told an International Diamond Conference in Windhoek, according to the November 24 report.


WDC Seeks Amnesty’s Help to Resume CAR Trade

World Diamond Council’s president Edward Asscher called on Amnesty International to return to the Kimberley Process (KP) and help resume diamond trading with the Central African Republic. The country has been suspended from the KP since 2013.

Asscher joined more than 300 delegates from 50-plus countries at the five-day KP plenary meeting at Luanda in Angola last week, the industry body said in a statement November 24.His speech followed an Amnesty report on diamond trafficking from the Republic that alleged gem sales still funded violence in country. The report wasdescribed by the NGO’s legal adviser Lucy Graham as “a damning indictment of the Kimberley Process.”

RETAIL & WHOLESALE

Signet Misses Expectations

Signet Jewelers reported that third-quarter earnings were below expectations as sales were driven by lower-margin Kay stores and lower prices at Zales.

Mark Light, Signet’s chief executive officer, noted that earnings were affected by a modest margin impact due to a shift in its sales mix from the higher-value Jared stores to Kay.

The company registered adjusted earnings of 33 cents per share for the three months that ended October 31, compared to 21 cents a year ago. However, that was below its guidance given in August of 36 to 40 cents per share.

Group sales rose 3.3% to $1.22 billion in the third quarter year on year, with same-store sales up 3.3%. Net income rose to $15 million from a loss of $1.3 million a year earlier.

Tiffany���s Revenue -2%

Tiffany & Co said sales declined 2% to $938.2 million in the third quarter that ended October 31, with the strong U.S. dollar hampering reported revenue figures. In the nine months to October, sales decreased 2% to $2.9 billion and profit narrowed 4% to $288 million.

On a constant-currency basis, sales rose 4%. Comparable-store sales increased 1% due to growth in Japan and Asia Pacific but the performance was offset by lower sales in the Americas, the U.S. jewelry retailer said. Profit more than doubled to $91 million and net earnings per diluted share grew at a similar rate to $0.70.

The company has revised its full-year net earnings estimate for 2015 downward and now expects the figure to decrease by 5% to 10% from last year’s $4.20 per diluted share.

Chow Tai Fook’s Profit -43%

Chow Tai Fook reported that sales fell 4% to $3.6 billion (HKD 28.1 billion) in the six months that ended September 30 due to weak consumer sentiment in Hong Kong and Macau and declining numbers of tourists visiting Hong Kong from mainland China. Profit plummeted 43% to $201.4 million, the Hong Kong jewelry retailer said.

Same-store sales in Hong Kong and Macau slumped 18%, while mainland China comparative sales were basically flat. Same-store sales fell 9% overall, according to a statement November 24.

Revenue in Hong Kong, Macau and other markets excluding mainland China fell 7% to $1.5 billion. Jewelery sales in mainland China performed better, edged down 1% to $2 billion, while watch sales in that market slid 12% to $115.5 million.

Luk Fook’s Profit -43%, Revenue Slips

Luk Fook Holdings International Limited reported revenue declined 7.7% to $898.6 million (HKD 5.4 billion) in the six months to September 30 as a result of the Chinese downturn and the weak Hong Kong tourism industry.

Profit for the first half slumped 43% to $59.8 million, according to a company statement November 26. Overall revenue in Hong Kong – which makes up 60% of group-wide sales – fell 6.3% to $542.5 million.

Gem-set jewelry sales fell 16% to $323.3 million, but gold sales improved as a result of a sales rush when prices dropped in July and August.

Early Black Friday Data Not Good Indicator of Actual Sales

Early Black Friday figures claiming to signal how well the holiday period is progressing should be ignored as initial numbers fail to accurately predict the actual sales, according to FiveThirtyEight.com.

First round of news stories on Thursday evening or Friday are driven “almost entirely by anecdote” such as length of queues and isolated interviews, Ben Casselman, the chief economics writer at the data website, said in a note November 25. Updates on Sunday and Monday tend to contradict each other and are disproven by subsequent official statistics.

Birks Group’s 1H Revenue -4%

Birks Group’s sales fell 4% to $134 million year on year in the six months to September 26, mainly because of unfavorable foreign exchange rates, the Canadian jewelry retailer said November 20.

Excluding a $10.2 million adjustment attributable to translating Canadian sales into U.S. dollars, revenue increased 3% to $144.2 million. Comparable store sales grew 3%. Gross profit fell 7% to $51.6 million. The Canadian dollar depreciated 4.9% against the U.S. currency in the period, according to data compiled by Bloomberg.

Sotheby’s to Auction $4.6M Diamond Necklace

Sotheby's will auction a platinum and diamond necklace estimated to sell at between $3.6 million and $4.6 million in New York on December 9. The bib-style piece set with 217 carats of diamonds in a ‘sunburst’ motif was created in 1939 by Van Cleef & Arpels for Queen Nazli of Egypt, the auctioneer said.

Other lots include a platinum, Kashmir sapphire and diamond ring valued at $3.5 million to $4.5 million that had been in the possession of three generations of the family of financier Thomas Fortune Ryan, and a platinum and diamond ring estimated at $3.5 million to $4.5 million set with a square emerald-cut, 38.27-carat, D, VVS2, type-IIa diamond from the estate of an Italian countess.

Graff Ring Collection Inspired by Prohibition-Era Parties

Graff Diamonds has introduced a ring design inspired by America’s flamboyance in the 1920s and the excitement of alcohol-laden secret parties of the prohibition era.

Rings in the new collection feature a dome consisting of layers of diamonds in a swirl, with an elevated central stone as the focal point. Women at the time wore “show-stopping” statement rings which in subsequent years were billed ‘cocktail rings’ and have remained fashionable, the U.K.-based jewelry retailer said in a statement.

Among the designs is a ring of “exceptionally rare” pink pavé diamonds surrounding a 4.18-carat brilliant round precious stone. Others incorporate white pavé diamonds featuring a 5.34-carat radiant-cut fancy intense yellow stone, a 4.38-carat emerald-cut diamond or a 4.21-carat pear-shaped stone.

MINING

ALROSA Loss Widens 47%

ALROSA reported revenue decreased 3.5% to $619.4 million (RUB 40.6 billion) in the third quarter that ended September 30. The Russian miner’s loss increased 47% to $231.2 million, driven partly by the depreciation of the ruble against the U.S. dollar. The U.S. dollar strengthened 17% against the ruble between December 31, 2014, and September 30, 2015, the statement said, citing official exchange rates from the Central Bank of the Russian Federation.

The company’s diamond sales decreased 4.5% to $524.7 million, with exports rising 4% to $454 million and domestic sales falling 11% to $64 million. Diamond inventory expanded 48% to $724.7 million.

The company “revised” its sales budget to reflect changes in the diamond market and macroeconomic factors but kept this year’s production plan unchanged at 38 million carats, it said after a supervisory meeting last week.

Dominion Sales -53%

Dominion Diamond Corporation’s revenue slumped 53% to $145 million year on year in the third quarter that ended October 31. In volume terms, sales fell 31% to 795,000 carats and the average price slid 25% to $145 per carat, the Toronto-based miner said.

Sales from the Ekati Diamond Mine in Canada increased 5% to 480,000 carats, but a 41% drop in the average price to $184 per carat resulted in sales dropping 38% to $88.2 million in value terms.

Revenue from the Diavik Diamond Mine, also in Canada, dropped 29% to $56.8 million as the volume of rough sales plummeted 55% to 315,000 carats. However, the average price increased 56% to $180 per carat.

Stellar Diamonds Cuts Loss 25%

Stellar Diamonds, a U.K.-based exploration group focused on West Africa, cut its annual loss by 25% as revenue grew from naught last year and costs were slashed.

Its loss fell to $3.1 million in the year to June 30, according to a November 24 statement from the company, which is listed on London’s Alternative Investment Market. Sales jumped to more than $614,228. Administrative costs plummeted 48% to $1.4 million as corporate and project-level expenses were reduced.

Botswana Diamonds Cuts Loss 64%

Botswana Diamonds trimmed its losses by 64% to $568,511 (GBP 372,502) in the full year to June 30, the Irish miner reported in a statement November 19. The exploration group has not made any sales to date. It mines for diamonds in the Orapa and Gope areas of Botswana primarily through a 50-50 joint venture with Russia’s ALROSA.

While in 2014 its loss was compounded by the downward revaluation of assets to the tune of $939,931, the figure was zero this year. As a result, the operating loss narrowed 68% to $512,122 as administrative expenses for the year fell 23%.

Peregrine Diamonds Announces Rights Issue

Peregrine Diamonds has announced a $7 million rights issue to finance the remaining work on its Chidliak mining project at Nunavut in Canada and exploration in Botswana.

The proceeds will be used to further the remainder of the 2015-2016 Chidliak Diamond Resource Development Program, and fund the 2016 Chidliak work program, according to a company statement.

Funds raised would also go toward extending exploration in Botswana and potentially for meeting working capital requirements, the company added.

GENERAL

IDC Unveils New Website

The International Diamond Council (IDC), a trade body that formulates globally recognized standards for diamond grading and terminology, has launched a new website to aid users’ understanding of the trade.

The site enables downloading the IDC’s rules on describing precious stones in English, German, Russian, Arabic and Chinese, the council said in a statement November 20.

The development comes after the International Organization for Standardization (ISO) published a new consumer-orientated guide to diamond vocabulary in July 2015.


Kim Kardashian Demands Diamond Choker

Celebrity Kim Kardashian has requested a Lorraine Schwartz diamond choker as a ‘push present’ – a post-pregnancy gift – from husband Kanye West.

“Do you guys believe in a push present? I never did, but all of my friends do! We have the funniest e-mail chains discussing it,” she wrote on her official blog, before adding “this pregnancy, I would love a Lorraine Schwartz diamond choker, like the ones I've worn before to the Art + Film Gala.”

The blog presents other ‘push present’ jewelry gift ideas ranging from $78 to $2,600.


ECONWATCH

Diamond Industry Stock Report

Mining stocks this past week were led by a surge by Lucara Diamond Corp. (+28%) following its discovery of the second largest diamond in history. Dominion Diamond Corporation fell 9% on disappointing third-quarter results. North American retailers Birks Group (+27%) and Tiffany (+9%) and Hong Kong’s Chow Tai Fook (+4%) rose despite reporting mixed or disappointing earnings figures.

View the detailed industry stock report.
Nov. 26 (10:30 GMT) Nov. 19 (10:30 GMT) Chng.
$1 = Euro 0.94 0.94 0.007
$1 = Rupee 66.56 66.16 0.4
$1 = Israel Shekel 3.88 3.89 -0.01
$1 = Rand 14.24 14.13 0.11
$1 = Canadian Dollar 1.33 1.33 0.00

Precious Metals Chng.
Gold $1,071.08 $1,070.72 $0.36 0.0%
Platinum $850.50 $849.42 $1.08 0.1%
Silver $14.22 $14.18 $0.04 0.3%

Stock Indexes Chng.
BSE 25,958.63 25,792.40 166.23 0.6%
Dow Jones 17,813.39 17,737.16 76.23 0.4%
FTSE 6,362.94 6,255.82 107.12 1.7%
Hang Seng 22,488.94 22,888.92 -399.98 -1.7%
S&P 500 2,088.87 2,075.00 13.87 0.7%
Yahoo! Jewelry 1,000.82 1,050.48 -49.66 -4.7%

Rapaport Weekly Market Comment December 03, 2015


Black Friday sales (-10%) signal shifting consumer behavior. Millennials buying more on mobile as comScore reports online Thanksgiving-Cyber Monday sales +24% to $5.3B. Branded bridal strong with U.S. Oct. jewelry sales +2% to $4.7B. Polished prices stable but shortages constraining holiday orders for select goods. Nov. 1ct. RAPI +0.7%. Rough market under pressure ahead of another very small De Beers sight next week. Rough auction demand firming. Lukoil’s 9M Grib diamond sales reach $122M. Christie’s HK sells $97M (80% by lot). Luk Fook 1H revenue -8% to $899M, profit -43% to $60M. De Beers sells final stake in Kimberley mines to Petra, Ekapa for $7.2M.


RapNet Data: December 3

Diamonds 1,139,579
Value $8,055,270,593
Carats 1,263,976
Average Discount -28.66%

www.rapnet.com


The RapNet Diamond Index (RAPI) is the average price for the top 25 diamond qualities (D-H, IF-VS2). It is based on the 10 best priced diamonds for each quality.




Get Current Price List | Subscribe to Rapaport | Join RapNet



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QUOTE OF THE WEEK
The polished pipeline is a little bit overloaded and it will probably take until about the middle of next year to come back to normal levels.

Jean-Marc Lieberherr, managing director of Rio Tinto’s diamond unit, in an interview with Bloomberg Television.

MARKETS


United States: New York trading is slower than expected before Christmas and there is a sense that jewelers have what they need for the holiday...

Belgium: Sentiment improves slightly with steady U.S. and European holiday orders. Trading still lower than previous years...

Hong Kong: Polished trading okay with steady demand for GIA dossiers and carat sizes. Trading better-than-expected at last week’s...

India: Polished trading improves after Diwali with locals and overseas buyers in the market. Shortages supporting prices, especially for 0.30-0.50ct...

Israel: Sentiment improves slightly with better demand and tight supply of RapSpec A2+ (3X, none) diamonds. Dealers looking for goods in anticipation of new orders...

Click here to continue reading

INDUSTRY

GJEPC and BDB to Hold Detecting Synthetics Seminar

India’s Gem & Jewellery Export Promotion Council (GJEPC) and the Bharat Diamond Bourse (BDB) are teaming to share how to use new technology to detect synthetics.

The Diamond Detection Expo and Symposium, December 15 and 16 in Mumbai, will display the latest equipment and give attendees access to service providers active in the synthetics detection business. Exhibitors will include GIA India, the International Gemological Institute and the International Institute of Diamond Grading & Research, part of De Beers.

The symposium comes a few months after the BDB banned trading in synthetic diamonds at the exchange.

Fake KP Certificate Found in Shipment from Sierra Leone

The Kimberley Process (KP) urged its members to stay vigilant after the Antwerp World Diamond Centre (AWDC) alerted the organization about a fake KP certificate in a rough diamond shipment from Sierra Leone.

The fake certificate “was confirmed by the Sierra Leone authorities,” the AWDC said in a statement December 1. The number on the certificate was from a number range used in 2014, the parcel number was also incorrect and dotted lines on the document did not correspond with the original, the statement said.



WW2 ‘Victory’ Under Hammer at Christie’s New York

Christie’s will auction a diamond that commemorated the Allied victory over the Germans in World War II as part of its Magnificent Jewels tender in New York. Estimates of jewelry up for auction range from $2,000 to more than $4 million. The sale will be held December 10, the company said in a statement November 30.

The central attraction of the auction is the diamond named ‘Victory,’ a 31.34-carat and D-color gem with a rectangular cut, which Christie’s estimates suggest will fetch $4 million to $5 million. Last offered at Christie’s in 1984, this precious stone is part of the collection of Florence J. Gould, the daughter-in-law of the 19th century railroad magnate Jay Gould.

Also under the hammer is the $2 million to $3 million ‘Petrie’ ring with a 24.34-carat D-color gem designed by Harry Winston from the estate of socialite Carroll Petrie.

Sotheby’s Jewelry Sales Expected to Dip

Sotheby’s worldwide jewelry auction sales in 2015 will likely be below its record reached last year, according to the auctioneer’s estimates.

While auction revenues since the start of this year have hit $506.5 million, the company estimated that the final figure for the whole year is likely to fall below the $602.5 million figure seen in 2014. It cautioned, however, that the numbers are “not calculated with the same exact information” as previous periods.

Sotheby’s upper estimate for its three final jewelry auctions of the year is $87.4 million cumulative. If it were to reach this figure, annual sales would stand at $593.9 million.

RETAIL & WHOLESALE

Signet’s Jared to Add Pandora in 200 Stores

Signet Jewelers’ Jared unit will upgrade more than 200 of its stores to include new Pandora boutiques.

The world’s largest retailer of diamond jewelry, Signet will start installing the enhanced boutiques from next year, according to a Signet statement December 2. Jared had 268 stores as of October 31, according to figures released with its third-quarter results November 24.

Pandora closed 116 unbranded stores -- mainly in independent jewelers -- during the third quarter, mostly in the U.S. The overall number of points of sale in the Americas was cut by 212, or 6 percent, to 3,124, compared with the third quarter last year.

U.S. Jewelry & Watch Sales +2%

U.S. jewelry and watch sales from all retail outlets increased 2% year on year to an estimated $5.29 billion in October, according to provisional government figures. The sector’s total for September was revised, with new figures showing sales improved by 2% to $5.26 billion that month, down from an earlier estimated increase of 4.8%.

Jewelry sales in October increased 2% year on year to $4.67 billion, according to Rapaport News estimates, the same growth rate as September. Watch sales rose 1.6% to $615 million year on year. Both categories have now enjoyed six successive months of growth after four months of decline between January and April.

Thanksgiving Sales Figures Mixed

Sales for the extended Thanksgiving period were mixed, with most analysts tracking the data indicating increases in online sales and declines in spending at bricks-and-mortar stores.

Retail analytics group ShopperTrak said in-store sales on Thanksgiving and Black Friday fell to $12.1 billion. By contrast, online sales on Friday were expected to increase 14% year on year to $2.72 billion, according to Adobe Systems Incorporated.

Cyber Monday sales from desktop computers were up 12 percent to $2.3 billion according to comScore. However, the National Retail Federation forecast that the number of people in the U.S. buying on the key internet sales day would drop 4.6 percent to 121 million.

Cartier Holiday Ad Gets 1.7M Views in a Week

Cartier’s holiday-season commercial for 2015 has been viewed more than 1.7 million times on YouTube, putting it well ahead of major competitors' online promotional videos.

The 90-second clip, featuring the classic Diamonds Are a Girl’s Best Friend re-arranged by British artist Jarvis Cocker, had been seen 1,735,074 times by December 1, a week after it was posted on the luxury group’s official YouTube page. It stars U.K. model and musician Karen Elson, who saunters and dances through Paris wearing items from Cartier’s jewelry collection.

Forevermark’s It's a Long Journey to Become The One had been viewed 41,102 times in a month and Tiffany & Co’s commercial got 35,533 clicks after three weeks of release.

LVMH Buys Stake in Italy’s Repossi

French luxury retailer LVMH Moët Hennessy Louis Vuitton has acquired a minority stake in family-run Italian jeweler Repossi, for an undisclosed sum.

The partnership will enable Repossi to develop its distribution network while benefitting from LVMH’s managerial know-how, the French group said in a statement November 30.

Repossi, founded in Turin in 1920, is known for its “iconic” Berber collection and multi-piercing earcuff. The acquisition comes four years after LVMH bought Italian jewelry group Bulgari for about $6 billion in 2011.


Diamond Size Matters to Hong Kong Women

Women vastly overestimate the weight of a diamond embedded in an engagement ring that their husbands-to-be will buy them, a recent poll carried out between November and December 2015 in Hong Kong found.

While 59 percent of 600 women expected their natural-diamond ring to weigh one carat or more and 13 percent anticipated at least two carats, most men said they would only buy a diamond below one carat, according to the 2015 Hong Kong Diamond Consumption Research report.

The survey, published by the Diamond Federation of Hong Kong, revealed 15 percent of 400 men would pick a stone weighing 0.3 to 0.5 carats. While 32 percent of men said they would buy a 1 or 2-carat diamond, only 2.3 percent were prepared to splash out on a 2 to 3-carat gem and 4 percent were ready to buy a diamond weighing 3 carats or more. In contrast, 6.6 percent of women expected a 2 to 3-carat diamond and 6 percent presumed they would get a gem that’s 3 carats or bigger.

Diamond Christmas Crackers Priced at More Than $370,000

Christmas revelers will be able to celebrate the holiday this year with a new kind of Christmas cracker – containing diamonds and costing as much as $371,315 (GBP 247,000).

Six white diamonds selected by U.K. jeweler Tresor Paris, each with a different cut, are being offered inside “hand-crafted” crackers – cardboard tubes wrapped with decorated paper that pop when pulled from either end. A common feature of the Christmas dinner table in many English-speaking countries, they usually contain a cheap gift or joke on a note inside. Sold by luxury product seller VeryFirstTo, they cost $1.5 million for the entire set of six, which include a cracker with a pear-shaped, 3-carat, D-VVS2, type-IIa diamond costing $371,315.

Richemont Hires Adviser on Celebrities, Product Placement

Richemont has created a director-level position to advise on the company’s marketing efforts, such as celebrity procurement and product placement in film, television and red-carpet events.

The luxury group hired Mike Tschida to work on a portfolio of ‘maisons,’ or boutiques, including Cartier, Van Cleef & Arpels, Piaget, Montblanc, Alfred Dunhill and Chloé. He will split his time between New York, Los Angeles, Geneva, and Paris, Richemont said in a statement December 1.

Tschida was previously president of Tschida Brand Entertainment, an entertainment marketing firm based in Los Angeles which handled celebrity procurement, sponsorship, licensing and brand building.

MINING

ALROSA Mulls Production Cut

ALROSA may reduce production in 2016 as its rough diamond inventory is at a critical level in a weak market.

“Currently, our inventory stands in excess of 20 million carats and increasing inventory further would not be feasible for the company, or it would be difficult economically,” Ilya Ryashchin, ALROSA’s first vice president in charge of finance and economy, said in a conference call November 25. “In case 2016 will not see consumption levels back to normal, we would probably reconsider production volumes.”

ALROSA maintained its production in 2015 and is on track to recover 38 million carats even as it has seen sales slump this year.

Rio Tinto Sees mid-2016 Rough Price Drop

Rio Tinto expects rough diamond prices to decline by the middle of next year, Jean-Marc Lieberherr, managing director of the company’s diamond unit, told Bloomberg Television.

“There is a need for the rough prices to adjust to the economic value of the polished price and that trend is in motion at the moment,” Lieberherr said in an interview broadcast Wednesday. There’s a disconnect between prices for rough diamonds and polished ones, he said. The executive said a “logjam” of diamonds held by the industry’s midstream -- traders, cutters and polishers -- will clear by the middle of next year as rough prices decline.


Lukoil 9-Month Diamond Sales Top $120M

Lukoil, Russia’s largest oil producer, said diamond sales totaled $122 million in the first nine months of 2015, its first full year of operating the Grib mine. Third quarter sales amounted to $41 million, according to the company’s earnings report published on November 30.

Sales in the comparable third quarter of 2014 were “relatively insignificant” since they were only launched in September 2014, Lukoil said. The Grib mine is in northwestern Russia, near its border with Finland.

The majority of Lukoil’s diamond production is sold via its Antwerp-based Grib Diamonds subsidiary. Other goods are sold independently in Russia in line with local legislation. Sources close to Grib told Rapaport News that the company is on track to sell 2 million carats in 2015, in line with its plan for the year.

De Beers Sells Last Kimberley Mine

U.K. miner Petra Diamonds and South Africa’s Ekapa Mining have bought the Kimberley Mines from De Beers for $7.1 million (ZAR 102 million), acquiring assets in an area famously known as the heart of the African nation’s early diamond rush of the 1860s.

Ekapa Minerals, a special acquisition vehicle in which Petra owns a 49.9% stake and Ekapa Mining the rest, has purchased a “number” of the so-called tailings dumps located at Kimberley in the Northern Cape Province of South Africa from De Beers Consolidated Mines Proprietary Ltd, Petra said in a statement December 1.

The mines are expected to generate about 700,000 carats per annum in the first three years, which translates into revenue of about $65 million in 12 months, with calculations based on an approximate price of $95 per carat.

De Beers sold the Kimberley Underground Mines to Petra for $10.9 million in 2007. The latest sale marks the mining giant’s exit from Kimberley.


Petra Finds 23-Carat Pink Diamond

Petra Diamonds has recovered a 23.16-carat pink diamond of “exceptional color and clarity” from the Williamson mine in Tanzania.

The gem is the most significant recovery by Petra from Williamson to date and an example of the high-quality pink diamonds for which the mine is known, the Jersey-based miner said in a statement November 27.

The stone will now be offered for sale by appointment in Antwerp as part of Petra’s December tender process, the company added.

Stellar Applies for Tongo License

Stellar Diamonds has applied for license to carry out large-scale mining at the Tongo project in Sierra Leone, the West Africa-focused diamond exploration group said.

“The submission of the Tongo mining license application and ESHIA marks a key milestone in the development of the project as we make the transition from exploration to mining,” chief executive Karl Smithson said in a statement November 27.

This is also the first large-scale mining license application since the onset of the Ebola crisis in the country, Smithson said.

GENERAL

Diamonds Created at Room Temperature

Researchers at North Carolina State University have discovered a method of producing diamonds at room temperature and ambient atmospheric air pressure, identifying a third and previously unknown form of carbon.

Known as Q-carbon, the new ‘phase’ of carbon is ferromagnetic, harder than diamond and glows in the dark. It can be used to create a “variety of single-crystal diamond objects,” the university said in a statement November 30.


Pope Confronts Illegal Diamond Trade

Pope Francis has warned Africa’s illegal trade in diamonds and other precious resources abets criminal activities and terrorism while undermining political stability.

“Human selfishness” and the abuse of the poor and excluded risked tearing Africa into pieces, the head of the Catholic church said in Kenya November 26 during his tour of the continent.

“Illegal trade in diamonds and precious stones,” rare metals and other important resources “fuels political instability, organized crime and terrorism,” he told an audience at the office of the United Nations in Nairobi.

ECONWATCH

Diamond Industry Stock Report

Canada’s Lucara Diamond Corp. (+11%) continued to rise following last month’s 1,111-carat diamond find. The UK’s Petra Diamonds (+21%) jumped after it bought De Beers last Kimberley mine jointly with Ekapa Mining. Another mining group, Rockwell Diamonds, slipped (-23.5%). U.S. and Far-East retail stocks were generally steady, except Birks Group (-22%). Indian stocks were led by Goldiam Intl. (+15%) and Lypsa Gems (+10%).

View the detailed industry stock report.
Dec. 03 (10:30 GMT) Nov. 26 (10:30 GMT) Chng.
$1 = Euro 0.95 0.94 0.005
$1 = Rupee 66.69 66.56 0.1
$1 = Israel Shekel 3.88 3.88 0.00
$1 = Rand 14.34 14.24 0.10
$1 = Canadian Dollar 1.33 1.33 0.00

Precious Metals Chng.
Gold $1,050.70 $1,071.08 -$20.38 -1.9%
Platinum $830.50 $850.50 -$20.00 -2.4%
Silver $13.94 $14.22 -$0.28 -2.0%

Stock Indexes Chng.
BSE 25,886.62 25,958.63 -72.01 -0.3%
Dow Jones 17,729.68 17,813.39 -83.71 -0.5%
FTSE 6,431.72 6,362.94 68.78 1.1%
Hang Seng 22,417.01 22,488.94 -71.93 -0.3%
S&P 500 2,079.51 2,088.87 -9.36 -0.4%
Yahoo! Jewelry 989.47 1,000.82 -11.35 -1.1%

Rapaport Weekly Market Comment December 10, 2015


Polished trading improving with holiday demand as shortages support prices for RapSpec A2+ (3X, none) diamonds. 0.30-0.40ct. improving with significant reductions in supply. Rough demand strong at tenders but very weak for De Beers overpriced rough. Dec. sight estimated at about $100M vs. $577M last year. De Beers says rough prices down 15% in 2015 and its 2016 production will fall from 29M to 26/28M cts. Anglo American moving to Charterhouse as De Beers avoids massive cost-saving restructure. Petra Diamonds sells 23.16ct., pink rough for $10M ($433,938/ct.). Sotheby’s NY sells $52M. U.S. Oct. polished imports -4% to $2.2B, polished exports -13% to $1.3B.


RapNet Data: December 10

Diamonds 1,109,793
Value $8,040,338,822
Carats 1,259,029
Average Discount -28.57%

www.rapnet.com


The RapNet Diamond Index (RAPI) is the average price for the top 25 diamond qualities (D-H, IF-VS2). It is based on the 10 best priced diamonds for each quality.
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December 9-16 Wed-Wed
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QUOTE OF THE WEEK
The crisis is not a demand crisis, it’s a stock crisis.

De Beers CEO Philippe Mellier on the state of the diamond industry at a presentation to analysts this week



MARKETS

United States: Wholesale market sentiment improves as dealers fill last-minute holiday orders. Limited supply supporting prices, particularly for 0.30-1ct., G-J, SI diamonds...

Belgium: Polished trading stable with buyers filling orders rather than stocking inventory. Suppliers focusing on U.S. and European markets, with some Far East demand...

Hong Kong: Polished trading is stable with good demand for dossiers, 0.30-1ct. diamonds. Some Christmas and Chinese New Year demand for RapSpec A2+ (3X, none) 0.30-0.40ct. D-J, VS-SI diamonds, which are in tight supply...

India: Polished market continues to improve after manufacturers and dealers return from the Diwali break. Good local buying activity with U.S. and Israeli dealers....

Israel: Trading continues to improve due to U.S. holiday demand, some Far East orders and limited supply of better quality RapSpec A2+ (3X, none) diamonds...

Click here to continue reading


INSIGHTS

Higher Interest Rates, Lower Jewelry Spending?

What can the diamond industry expect when the Federal Reserve raises interest rates for the first time in seven years? Or, more pointedly, will a rate hike put a dent in discretionary spending?

Click here to continue reading

INDUSTRY

Polished Diamond Prices Rise in November

Polished diamond prices firmed in November supported by shortages of select categories and seasonal holiday demand. Trading improved with dealers focused on filling U.S. holiday orders but old challenges remain: Manufacturing is unprofitable at current rough price levels and the diamond distribution chain is overstocked, despite some scarcities.

The RapNet Diamond Index (RAPI™) for 1-carat, GIA-graded diamonds rose 0.7% in November, its first increase in six months. RAPI for 0.30-carat diamonds advanced 3.3% and RAPI for 0.50-carat diamonds grew 1.1%. RAPI for 3-carat diamonds fell 0.6%. RAPI for 1-carat diamonds remains down 7.1% since the beginning of the year.

De Beers to Cut 2016 Production

De Beers expects diamond production to fall to between 26 and 28 million carats in 2016 from 29 million carats this year. The change comes amid a restructuring of parent company Anglo American that will see De Beers positioned as one of three core business in the group.

The diamond miner will also make significant cost and headcount reductions, closing mines and focusing exploration efforts on Botswana, South Africa and Canada. De Beers has already slashed its costs of production from $111 per carat in 2014 to $101 per carat in 2016, chief executive officer Philippe Mellier said in a presentation to analysts December 8.

Mellier also argued De Beers has helped open up profit for manufacturers by reducing rough prices by more than polished and was “mindful that the midstream has to generate profit.” The industry is suffering from a “stock crisis” not a crisis in demand, the executive added.

Petra Sells 23-Carat Pink Diamond for $10M

Petra Diamonds Limited has received $10.1 million from the sale of an exceptional 23.16-carat pink diamond, achieving $433,938 per carat for the rough stone. The miner recovered the gem from the Williamson mine in Tanzania in November 2015.

Petra, which is listed on the London Stock Exchange, sold the gem into a partnership and has retained a 20 percent interest future proceeds from polished sales.

The stone was bought by Golden Yellow Diamonds on behalf of Israeli diamond manufacturer M.A. Anavi Diamond Group, which specializes in large and unique colored diamonds.

Baunat Raises $3.5M, Rejects Takeover

Online diamond jewelry company Baunat has raised $3.5 million (EUR 3.3 million) in fresh capital from investors and staff through a private placement. It also rejected a takeover bid by an Asian investor.

The Antwerp-based company said it intends to use the extra funding to accelerate its growth and “become the point of reference on the international online diamond jewelry market.”

Baunat makes 60% of its sales through its online boutique and the rest in its showrooms in Antwerp, Paris, Geneva, Mumbai and Hong Kong. The company plans to open new showrooms in Germany, China, Tokyo and New York by 2018.

Green Light for Shenzhen Exchange

Shenzhen Rough Diamond Exchange (SRDE), a secure diamond storage, sorting and viewing facility in the Chinese city, received final approval to operate Shenzhen Customs House on December 3.

Foreign suppliers will be able to ship diamonds to the new bonded warehouse in the Luohu district of Shenzhen duty-free. Local Chinese companies will then be able to view the goods at the SRDE and purchase them through importation procedures at the Shanghai Diamond Exchange.

Dominion to Hold Rough Viewings at BDB

Dominion Diamond Marketing N.V., a subsidiary of Dominion Diamond Corporation, will conduct viewings of its rough diamond sales at the Special Notified Zone (SNZ) at Mumbai’s Bharat Diamond Bourse from February 2016.

The company will make a range of parcels available for inspection. After the viewing is complete, the tender will take place in Antwerp. The viewing dates in Mumbai in 2016 are: February 1-6; March 7-12; April 4-9; May 23-28; June 20-25; and August 1-6.

Blue Nile Starts Estate Jewelry Collection

Blue Nile has launched an estate jewelry collection that includes creations by Marina B and J.E. Caldwell & Co., according to a Blue Nile statement December 3.

The collection is starting with 13 pieces in three price categories: under $10,000, under $20,000 and under $100,000. Among the products at the highest price level are an Art Deco necklace featuring an emerald-cut, 3.47-carat diamond; a platinum choker necklace with over 12 carats of diamonds; and a pair of fancy, intense yellow diamond drop earrings set in 18-karat yellow gold and platinum.

RETAIL & WHOLESALE

U.S. Polished Imports -4%

U.S. polished diamond imports fell 4% year on year to $2.16 billion in October, according to data from the U.S. Census Bureau. Polished imports by weight increased 3% to 1.074 million carats. Polished diamond exports, meanwhile, fell 13% to $1.33 billion, driving net imports up 17% to $833 million.

Rough diamond imports slumped 58% in October to $17 million, while rough exports fell 38% to $24 million, leaving net rough imports at negative $7 million compared with positive $1 million a year earlier. The net diamond account, reflecting the difference between net imports and exports, increased 16% to $826 million.

Sotheby’s Takes $52M at New York Auction

Sotheby’s achieved total sales of $52.2 million at its Magnificent Jewels auction in New York on December 9, bringing in almost $4.3 million for the highest-profile lot, a Van Cleef & Arpels diamond necklace worn by the late Queen Nazli of Egypt.

The bib-style piece was commissioned by the Queen for her daughter’s wedding in 1939. Estimated pre-auction at $3.6 million to $4.6 million, it features 217 carats of diamonds in a ‘sunburst’ motif: at the center is a 6-carat round diamond, with 118 larger round diamonds weighing approximately 134 carats, a further 27 carats of smaller round diamonds and 50 carats of baguette diamonds.

The highest selling price at the auction was for an “exceptional” platinum, 25.87-carat sapphire and 0.4-carat diamond ring which went for $5.1 million, beating its estimate of $3.5 million to $4.5 million.

Bonhams Sets Auction Records

Bonhams sold a 2.97-carat diamond ring for $2.2 million (GBP 1.5 million), including the premium, at its fine jewelry auction in London on December 5, setting two world records. The step-cut diamond, set in a ring designed by jeweler Andrew Grima, fetched the highest-ever auction price per carat for a fancy greyish-blue diamond and also set a record for a Grima creation.

The auctioneer also sold a pair of late nineteenth-century sapphire and diamond earrings for $2.3 million. A 10.28-carat Madagascan ruby single-stone ring sold for $357,687 – another world record for price per carat.

Walmart Adds In-Store Payment with App

Walmart has introduced a new payment feature on its mobile app that allows customers to pay for goods in-store using a smartphone.

The U.S. retail giant is the only retailer to offer its own payment solution that works with any iOS or Android device capable of downloading it and with any major credit, debit or pre-paid card or Walmart gift card, according to a statement December 10.

The new service will be introduced in select Walmart stores from December, with a nationwide launch to be complete by the first half of 2016.

J.C. Penney Presents 2015 Christmas Gift Ideas

J.C. Penney has unveiled its Christmas gift ideas for the 2015 holiday season. Recommendations include a diamond twist heart necklace from the Heart of Hallmark Collection by Hallmark Diamonds. The piece features between 0.01 and 0.08 carats of round diamonds in 14 karats of rose gold over sterling silver, according to a J.C. Penney statement December 2.

Also on the U.S. national retailer’s list of gift suggestions are a pair J.C. Penney solitaire earrings with 0.25 carats of diamonds and 14 karats of gold; gold-tone metal double-drop earrings with red and purple stones, designed by Liz Claiborne; and a J.C. Penney crystal-bubble watch and bracelet set.

MINING

ALROSA to Stick to Long-Term Contracts

ALROSA will keep long-term contracts as the “cornerstone” of its sales policy because it gives the company and clients a stable supply of rough diamonds and protection against market fluctuations, the miner told clients Wednesday.

The Russian company followed a “conservative” sales policy throughout 2015, cutting both prices and sales volumes, according to a statement December 9. The group met with long-term clients to go over the year’s preliminary results and discuss market trends. It said experts were reporting signs of recovery in rough diamond demand and expect the market to stabilize in the second quarter of 2016.

De Beers Ceases Work at Canadian Mine

De Beers is to immediately cease mining at its Snap Lake mine in Canada. The move comes following a review of its operations, particularly in light of current market conditions.

The company has put the mine on “care and maintenance” and expects this status to last for one to nine months. The decision has resulted in 434 employees being laid off. The company will evaluate market conditions over the next year to determine whether the resources at the mine make it viable, according to a De Beers statement December 4. Environmental monitoring and other work required under the terms of the mine’s permits will continue in the meantime.

ALROSA to Increase Production in 2016

ALROSA expects to increase diamond production to 39 million carats in 2016, Russian news source Interfax reported December 8, citing company president Andrei Zharkov. This compares with 38 million carats which the Russian miner is on track to recover for 2015.

“Production volumes remain in line with the targets factored into the company's long-term development program, in other words about 39 million carats,” Interfax cited the executive as saying in an interview with the miner's media outlet. "We expect that the situation on the rough and cut diamond market should stabilize next year. And in general, we expect that there might be an improvement in the second half of the year.”

The news comes despite ALROSA’s first vice president, Ilya Ryashchin, saying in a call with analysts in November that the miner might “reconsider” its production volumes because of the size of its inventory.

GENERAL

Pakistani Wants Koh-i-Noor Returned

A Pakistani attorney has filed a petition with the High Court in Lahore, naming Queen Elizabeth II as a respondent. Iqbal Jaffree is demanding the return of the Koh-i-Noor diamond, the 105.6-carat gem which forms part of the British crown jewels, Reuters reported December 4.

Jaffree claims that the diamond belongs to Pakistan's Punjab province, as it was taken by the British from the King of Lahore during colonial rule. The stone is famous for its prominence in the crown worn by the late Queen Elizabeth, the Queen Mother, at her coronation in 1937, and again at the coronation of Queen Elizabeth II in 1953.

In November 2015, a group of Bollywood stars and Indian businessmen launched a similar claim in London’s High Court, demanding the return of the diamond to India.

New Book 'Stoned' Tells How Eight Jewels Shaped History

A new book, Stoned: Jewelry, Obsession, and How Desire Shapes the World, has been published, telling the story of how eight gems in history have started cultural movements, political dynasties and wars.

It is written by jeweler and scientist Aja Raden, former head of the auction division of House of Kahn Estate Jewelers. The 368-page book, released by Ecco, an imprint of HarperCollins Publishers, delves into the “unshakable addiction to beauty and the darker side of human desire,” according to the publisher’s website.

ECONWATCH

Diamond Industry Stock Report

Miner Anglo American fell 16.5% after it announced a major cost-cutting overhaul. Stellar Diamonds, another UK-listed miner, dropped 17.4%. Mining stocks were led by True North Gems (+6.5%) after it commenced mining at its Greenland project, but Rockwell Diamonds (-11.5%) and Shore Gold (-12.2%) both fell. U.S. stocks were mixed, with Sotheby’s (-9.9%), Movado Group (-6.6%) and Signet (-6.5%) all slipping.

View the detailed industry stock report.
Dec. 10 (12:00 GMT) Dec. 03 (10:30 GMT) Chng.
$1 = Euro 0.91 0.95 -0.034
$1 = Rupee 66.75 66.69 0.1
$1 = Israel Shekel 3.87 3.88 -0.02
$1 = Rand 15.17 14.34 0.83
$1 = Canadian Dollar 1.36 1.33 0.02

Precious Metals Chng.
Gold $1,075.01 $1,050.70 $24.31 2.3%
Platinum $860.50 $830.50 $30.00 3.6%
Silver $14.21 $13.94 $0.27 1.9%

Stock Indexes Chng.
BSE 25,252.32 25,886.62 -634.30 -2.5%
Dow Jones 17,492.30 17,729.68 -237.38 -1.3%
FTSE 6,099.44 6,431.72 -332.28 -5.2%
Hang Seng 21,704.61 22,417.01 -712.40 -3.2%
S&P 500 2,047.62 2,079.51 -31.89 -1.5%
Yahoo! Jewelry 937.27 989.47 -52.20 -5.3%

Rapaport Weekly Market Comment December 17, 2015


Polished market sentiment improving. Rough prices higher than resultant polished, significantly restricting rough trading and diamond production. Shortages supporting polished prices but reducing sales during important holiday season as dealers fill last-minute orders. Chinese New Year demand improving but very cautious. Rough prices remain high at De Beers est. $180M sight and small ALROSA sale. Sightholders expect rough price cuts in 2016. Dominion 3Q profit -90% to $3.4M. Christie’s NY sells $60M (71% by lot) with rectangular 31.34ct., D, VVS2 diamond sold for $4.3M ($138K/ct.). Belgium Nov. polished exports -12% to $920M. Yoram Dvash elected Israel Diamond Exchange president.


RapNet Data: December 17

Diamonds 1,126,160
Value $8,156,371,755
Carats 1,256,785
Average Discount -28.11%

www.rapnet.com


The RapNet Diamond Index (RAPI) is the average price for the top 25 diamond qualities (D-H, IF-VS2). It is based on the 10 best priced diamonds for each quality.




Get Current Price List | Subscribe to Rapaport | Join RapNet



RAPAPORT ANNOUNCEMENTS


January
7-11
Thu-Mon


Rapaport Rough Auction

Surat, India

View Details



January
12-20
Tue-Wed


Rapaport Melee Auction

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January
13-20
Wed-Wed


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RapNet is Fully Mobile
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QUOTE OF THE WEEK
Believe it or not, brides are taking an active role in their engagement, too. In fact, more brides than ever are researching what they want in a ring and dropping hints to their husband-to-be. Our study even reveals that a majority of brides know the cost of their engagement ring.

Kellie Gould, editor-in-chief of The Knot, on The Knot 2015 Jewelry & Engagement Study


MARKETS
United States: Sentiment improving as dealers fill last-minute Christmas orders. Dealers are looking for goods but demand is order-specific with shortages restricting sales and very limited buying to build up inventory...

Belgium: Dealers are busy filling last-minute orders before the market closes for two-week Christmas vacation (Dec. 21-Jan. 4). Good demand for 0.30-1ct., G-J, VS-SI (3X, none) diamonds...

Hong Kong: Activity improved with lots of inquiries from Chinese and Indian buyers but few sales. Dealers are cautious and uncertain about the upcoming Chinese New Year season (Feb. amid weak consumer sentiment...

India: Market continues steady improvement since Diwali. Polished inventory diminishing due to steady holiday orders and very low manufacturing output...

Israel: Polished trading stable with steady demand for 0.30-1.99ct., D-J, VS-SI diamonds and a shortage of goods on the market. Prices supported by scarce availability and last-minute U.S. holiday demand...

Click here to continue reading

INSIGHTS
Rough Diamond Market Stand-Off May Yet Prove Costly

Now that 2015 is coming to an end, mining companies are reportedly preparing to reduce rough diamond prices in January. Having held off from doing so in the fourth quarter of this year, the industry may be missing an opportunity...

Click here to continue reading

INDUSTRY

Rough Producers May Cut Prices Further: Moody’s

Rough diamond producers will have to slash prices further as a 28% slump from a peak in 2014 may be insufficient to revive demand, according to Moody’s Investors Service.

Miners will remain under pressure over the next 12 to 18 months because of slowing jewelry sales and cutters and polishers’ reduced access to credit, which have caused a temporary mismatch between supply and demand, the credit rating agency said in a report December 14. Rough diamonds prices have fallen 18% in the first 11 months of 2015 and dived since 2014, according to the company.


Belgium’s Polished Exports -12%

Belgium’s polished diamond exports dropped 12% year on year to $920.4 million in November, according to the Antwerp World Diamond Centre (AWDC). By volume, exports slid 16% to 382,491 carats, while the average price fell 5% to $2,406 per carat.

Total polished imports dived 17% to $770.2 million during the month as net polished exports, representing exports minus imports, soared 33% to $150.2 million. Rough imports slumped 43% to $709.3 million and rough exports plummeted 54% to $643.4 million. Net rough imports, representing imports minus exports, moved from negative $171 million to positive $65.8 million during the month.

Belgium’s November net diamond account, representing total polished and rough exports less total imports, dived 70% to $84.4 million.

Dvash Elected Israel Bourse President

Yoram Dvash has been elected president of the Israel Diamond Exchange (IDE) replacing Shmuel Schnitzer at the helm of the bourse for the next two years.

Dvash, owner of Y. Dvash Diamonds, won 1,080 votes compared to Arnon Yuval’s 761, the bourse said in a statement December 17.

Schnitzer concludes his time as IDE president having previously served between 1998 and 2004 and again since 2013.

JA Revamps Web Presence

U.S. trade association Jewelers of America (JA) has introduced a “consumer-facing” website with expanded educational tools to improve confidence among potential buyers.

New features are designed to showcase the trade body’s retail and supplier members to potential customers browsing the internet to make purchases, as well as impart knowledge about jewelry. It presents information on retailers for consumers and showcases suppliers to retailers.

IDCA Elects New Leaders

The Indian Diamond & Colorstone Association, Inc. (IDCA) unanimously elected a new executive committee for 2016, choosing Pioneer Gems’ Ashok Sancheti as president.

Rakesh Barmecha of Niru NY Ltd. was elected vice president, Amikam’s Jay Mehta is secretary, Nirav Doshi of Jewelex NY Ltd. is treasurer and Prateek Nigam of Oriental Gemco (NY), Inc. will serve as joint secretary.

India to Unveil Special Notified Zone

The India Diamond Trading Centre (IDTC), the first Special Notified Zone (SNZ) for rough diamond trading in the country, will be inaugurated at the Bharat Diamond Bourse (BDB) complex in Mumbai on December 20.

The SNZ, an initiative between India’s Gem and Jewellery Export Promotion Council (GJEPC) and the BDB, will be unveiled by chief guest Nirmala Sitharaman, the Minister of State (Independent Charge) for Commerce and Industry. Senior executives from miners such as ALROSA, De Beers and Rio Tinto are set to attend the opening ceremony.

OGI Opens Belgium Base

Diamond technology company OGI Systems Group has opened a service center in Belgium as part of a plan to expand its business in Europe.

The new offering features the company’s DiaPix technology, which is used to capture high-definition images and videos of diamonds. The center will also feature the Israeli firm’s GemScribe, an automatic inscription system for diamond and gemstones.

RETAIL & WHOLESALE



U.S. Jewelry Store Sales Flat

U.S. specialty jewelry store sales fell 0.4% year on year to $2.15 billion in October, according to the U.S. Census Bureau. The monthly loss comes despite an estimated 2% rise in jewelry and watch sales in October across all retail outlets to $5.29 million. After adjusting for seasonal fluctuations, specialty jewelry store sales climbed 0.1% to $2.51 billion.

Jewelry store sales in the first 10 months of the year have slipped 1.5% to $22.1 billion. The seasonally-adjusted figure is $25.28 billion, a 1.4% drop.

U.S. Jewelry Prices -1%

The U.S. consumer price index (CPI) for jewelry fell 1.4% in November from the previous month, according to the U.S. Bureau of Labor Statistics. The reading was 3.2% lower from a year ago.

The November CPI for watches slipped 1.3% from a month ago and 1.1% from a year earlier. The CPI for all urban consumers was unchanged.

Christie's Sells $60M at New York Auction

Christie’s sold $59.7 million of jewelry at its New York auction on December 10, selling the event’s top lot, the ‘Victory’ diamond, for $4.3 million.

The rectangular-cut, 31.34-carat, D-color ring commemorating the Allied victory in World War II fetched $137,492 per carat at the Magnificent Jewels auction.

In total, 11 lots were auctioned for at least $1 million each, and four fetched more than $3 million apiece. Christie's sold 71% by lot and 77% by value.


TOUS Picks Paltrow for Ad Campaign

Spain-headquartered jewelry brand TOUS has signed up Oscar-winning actress Gwyneth Paltrow as the star of its upcoming global advertising campaign.

Paltrow will appear in the campaign “Tender Stories Nº4,” which is aimed at depicting “tenderness as a universal TOUS value.” She will tell viewers a story that “aims to further explore the brand's essential value with a cool, intelligent, moving and fun tone.”


Steady Rise in Engagement Ring Spend

The average amount men spend on an engagement ring in the U.S. has increased to $5,978, according to the latest survey by popular online wedding resource The Knot.

The figure represents an 11% increase on the average spend in 2013, according to The Knot 2015 Jewelry & Engagement Study, which polled more than 12,000 brides and 1,200 grooms in the U.S. who were either engaged or married from 2014 to early 2015.

Those receiving a non-diamond stone rose from 6% in 2013 to 8%. The most popular diamond cut was round, accounting for 49% of gems, followed by princess (22%) and cushion (6%). The halo setting has soared in popularity from 7% in 2011 to 22% in the 2015 survey.

Kay Lures Customers with Online Game

Kay Jewelers has introduced an online memory game with a jewelry prize every day as the U.S. retailer steps up its holiday-season marketing campaign.

Visitors to Kay’s social media channels will be encouraged to take part in an interactive holiday-themed card-matching game, “Merry Match Sweepstakes,” on a dedicated website for a chance to win a prize from the company’s featured daily collection.

One winner will be selected each day and receive a piece of jewelry from a range of brands. Participants can also share a link to the game on Facebook and Twitter to earn a bonus entry for each friend who enters using the link they post.

Bailey Banks & Biddle Re-Opens in Austin

Jewelry retail chain Bailey Banks & Biddle has re-opened its location at Austin in Texas as part of an expansion plan in the U.S. state.

The new store is in the city’s Barton Creek Square shopping mall. It comprises a “highly branded and inviting” interior design with shop-in-shop fixtures from bridal designers such as Simon G and Kirk Kara and luxury Swiss watch brands including Oris, Tissot and Longines.

Pomellato Gets New CEO

French luxury goods company Kering has appointed Sabina Belli as chief executive officer of the Pomellato group, after acquiring the Italian jewelry brand in 2013.

Belli, a former executive at LVMH Moët Hennessy Louis Vuitton, will be responsible for the Pomellato and Dodo brands, effective immediately. She will report to Albert Bensoussan, CEO of Kering’s watches and jewelry division.

Gilt Groupe Close to $250M Takeover

Online retailer Gilt Groupe Inc. is close to a deal to sell itself for about $250 million to Hudson’s Bay Co., the owner of Saks Fifth Avenue, The Wall Street Journal reported.

That price compares with the reported $1.1 billion value that venture capitalists had put on the New York-based company in 2011.

Gilt, which sells a range of home and personal items on its website, including fashion, jewelry and furniture, was a pioneer of ‘flash sales’ that became popular during the recession, offering short-term promotions on specific items.

MINING

Dominion’s 3Q Profit -90%

Dominion Diamond Corporation reported a 90% drop in profit year on year to $3.4 million in the third quarter that ended October 31 as margins declined at the company’s Canadian mines. Revenue declined 35%, mainly due to a large drop in the average price per carat of sales from the Ekati Diamond Mine.

Rough sales were restrained by difficult polished market conditions and were further impacted by a drop in the level of rough diamond manufacturing capacity, Dominion said. The company lowered prices at the August sale and prices at the second sale of the quarter were flat.

Petra Sells $86M at Tender

Petra Diamonds sold 606,080 carats for $86.2 million at its second tender of the first half of fiscal year 2016 ending December 31, 2015. The figures include the sale of a 23.16-carat pink stone from the Williamson mine in Tanzania for $10.1 million and unsold parcels from the first tender of the six-month period.

The average price surged 43% over the first tender to $142 per carat, driven by an improvement in product mix that outweighed flat pricing. The miner expects the product mix to be better in the full fiscal year to June 30, 2016.

Stornoway’s 2Q Profit -12%

Canadian exploration and development company Stornoway Diamond Corporation reported a 12% year-on-year drop in net profit to $7.5 million (CAD 10.3 million) in the second quarter that ended October 31. Profit was impacted by several items not reflective of Stornoway’s underlying operating performance, according to the company.

Progress at the Renard Diamond Project is continuing, with first ore scheduled to be delivered to the plant in the second half of 2016 and commercial production set for the second quarter of 2017, in line with earlier forecasts.

GENERAL

Hong Kong Show Confirms 2016 Dates

The Hong Kong Trade Development Council (HKTDC) has announced the 2016 dates of its key jewelry shows, the HKTDC Hong Kong International Jewellery Show and the HKTDC Hong Kong International Diamond, Gem & Pearl Show.

The third edition of the HKTDC Hong Kong International Diamond, Gem & Pearl Show will take place March 1 to 5, 2016, at the AsiaWorld-Expo.

The 33rd edition of the HKTDC Hong Kong International Jewellery Show will run March 3 to 7 at the Hong Kong Convention & Exhibition Centre.

ECONWATCH

Diamond Industry Stock Report

Anglo American shares (-12.7%) continued to slide on news of its restructuring. Miners Peregrine Diamonds (-14.3%) and Kennady Diamonds (-7.8%) both slipped, while Petra Diamonds rose 11.1% on results from its rough tender. Indian stocks were led by jewelry manufacturer Goldiam International (+28.5%), with others generally stable. Out of U.S. retail stocks, Birks Group (-16.7%) suffered the largest percentage drop, with J.C. Penney (-6%) and Macy’s (-6%) among others that declined.

View the detailed industry stock report.
Dec. 17 (10:10 GMT) Dec. 10 (12:00 GMT) Chng.
$1 = Euro 0.92 0.91 0.007
$1 = Rupee 66.44 66.75 -0.3
$1 = Israel Shekel 3.89 3.87 0.02
$1 = Rand 14.94 15.17 -0.22
$1 = Canadian Dollar 1.38 1.36 0.03

Precious Metals Chng.
Gold $1,067.50 $1,075.01 -$7.51 -0.7%
Platinum $863.75 $860.50 $3.25 0.4%
Silver $14.11 $14.21 -$0.10 -0.7%

Stock Indexes Chng.
BSE 25,803.78 25,252.32 551.46 2.2%
Dow Jones 17,749.09 17,492.30 256.79 1.5%
FTSE 6,147.22 6,099.44 47.78 0.8%
Hang Seng 21,872.06 21,704.61 167.45 0.8%
S&P 500 2,073.07 2,047.62 25.45 1.2%
Yahoo! Jewelry 999.35 937.27 62.08 6.6%