RAPAPORT NEWS SERVICE | AUG. 13, 2010 www.rapaport.com | news@rapaport.com

Industry Retail EconWatch India Mining General

RapUp Aug. 13, 2010

Indian polished sellers firm on prices ahead of Mumbai IIJS show as hopes rise the event will boost trade. Other centers quiet. Rough market slow amid concern prices may soften. ALROSA 1H revenue +300% to $1.8b, net income of $96m vs loss of $483m. Namdeb to invest $1b to extend marine operations through 2050. Gitanjali 1Q sales +38% to $399m, net profit +73% to $17m. Bidz.com 2Q revenues -5% to $26m, net loss of $653K vs net income of $693K. U.S. June polished imports +83% to $1.8b, polished exports +69% to $1.6b. Zimbabwe sells 900,000 cts of KP certified Marange diamonds for $72m ($80/ct). Rapaport Trade Alert warns that KP certified Marange diamonds are subject to U.S., EU and U.K sanctions and may be involved in human rights violations.

RapNet Data: August 13, 2010

Diamonds 732,193

Value $4,633,722,748

Carats 799,493

Average Discount -31.89%

Get Current Price List | Subscribe to Rapaport | Join RapNet

ANNOUNCEMENTS

August
12
Thu
TRADE ALERT: Marange Diamonds

The Kimberley Process (KP) has just certified approximately 900,000 carats of rough diamonds from Marange, Zimbabwe. While the trading of Marange diamonds may be legal in certain jurisdictions, companies owning or selling the diamonds are sanctioned by the U.S., EU, and U.K. governments and their trading may be illegal by citizens of these countries.

Furthermore, the KP does not have a mandate to deny its certification for diamonds involved in human rights violations and there is no guarantee that diamonds with KP certification are free of human rights violations.

Rapaport strongly advises all diamond buyers not to trade in KP certified Marange diamonds and to request written assurance from their suppliers that their diamonds have not been sourced from Marange.

RapNet, the Rapaport Diamond Trading Network, will not allow the trading of any diamonds sourced from Marange, Zimbabwe. Members found to have knowingly offered Marange diamonds for sale on RapNet will be expelled and their names will be publicly communicated.

August
19-23
Thu-Mon
Rapaport at India Intl Jewellery Show (IIJS)
Mumbai

NSE Complex - Hall 5
Booths: 5EX015 I, 5EX016 II, 5EX017 I, 5EX018 II

For information contact Pooja Kotwani:
+91-22-6628-2700 or email pooja.kotwani@diamonds.net

September
5-8
Sun-Wed
Rapaport at Intl Jewellery London (IJL)
Booth H91 – H99 Earls Court 2 London,

Contact: Francesco Lopresti
+39-02-40047274
francesco.lopresti@diamonds.net

October
21
Thu
Rapaport Intl Diamond Conference 2010
The Times Center, 242 W. 41st., New York

8:30 a.m. - 5 p.m.
Diamond Demand
Human Rights and the Diamond Industry - The Way Forward

Register now, seating is limited.

QUOTE OF THE WEEK:
Investors were aware of a slowdown in the U.S. economic recovery, but now there are concerns other economies wont be able to decouple from slower growth here and in China. Markets are re-pricing and with that, we are likely to see some dollar strength.

Jessica Hoversen | MF Global

Careers@Rapaport

The Rapaport Group is growing rapidly. If you want to work with the best and brightest, join us. We have great opportunities for trading managers, gemologists, sales assistants, and entry level positions for our offices in New York, Antwerp, Mumbai, Dubai, and Shanghai. To get on the fast track, email your resume to careers@rapaport.com.

INDUSTRY

Zimbabwe Sells Rough

Zimbabwe reportedly sold 900,000 carats of KP-certified rough from the Marange. The value of the sale was estimated at $72 million. During the event, heavily armed police and soldiers guarded top security vaults built at the main Harare airport, where the sale took place. Private jets brought buyers in from Israel, India, Lebanon and Russia. Some reports have stated that buyers from the U.S. and Europe were also present.

RETAIL

Rapaport Weekly Broadcast

WATCH NOW: Online retail sales in the U.S. remain the sectors bright spot. Retail sales rose 9 percent on an annual basis during the second quarter, according to comScore. The group remains cautiously optimistic heading into the second half, concluding that unemployment and weak consumer spending patterns could dampen growth rates. The National Retail Federation (NRF), meanwhile, noted solid gains in retail container imports during the first half, which the group expects to continue as retailers restock their shelves after holding back in 2009.

U.S. Retail Growth Stalls in July

MasterCard Advisors’ SpendingPulse determined that U.S. retail sales for July, excluding the automobile sector, grew by 1.4 percent year on year. On a seasonally adjusted, month-to-month basis, however, sales declined by 0.9 percent. Excluding auto and gasoline sales and on a seasonally unadjusted basis, sales in July grew by 1 percent, a slight dip from the 1.1 percent increase recorded for June. SpendingPulse found strength in e-commerce, airline, lodging, electronics and appliances, while spending in the apparel, jewelry and luxury sectors underperformed.

Gitanjali Reports Profit

Gitanjali Gems reported that its first-quarter sales grew 38 percent to $399.3 million, while its expenses rose 37 percent to $370.4 million and its profits jumped 73 percent to $16.8 million. The companys jewelry sales were up 50 percent to $213.5 million and its diamond sales increased by 32 percent to $203.8 million.

Bidz.com Reports Loss

Bidz.com reported a net loss of $653,000 for the second quarter, compared with the net income of $693,000 it posted one year ago. The retailers net revenues dropped 5 percent to $25.7 million. Merchandise sales decreased 10 percent year on year to $23.7 million, while its cost of revenues increased by 5 percent to $19.6 million and its operating expenses were up 2 percent to $7 million.

Knot Launches New Deal

The Knot launched Deals.WeddingChannel.com, a group buying program designed to offer brides exclusive national and local wedding deals. Through group purchasing, the new website gives brides access to products that offer discounts of more than 50 percent on luxury honeymoons, diamond jewelry and local wedding services. The new platform also offers its partners a new way to market products to brides and is linked off both theknot.com and weddingchannel.com.

Fortunoff Brand Jewelry Returns

Fortunoff Brands and Four Leaf Designs will market the "Fortunoff" brand of fine jewelry products in the U.S. and online. Four Leaf Designs is a new partnership between Esther and David Fortunoff and Lester Friedlander and Shaun Apgar. The company intends to launch an e-commerce site first, before the fourth quarter, and the focus on adding stores across the Tri-State region in 2011.

ENZO Opens 110th Store

LJ International announced the opening of its 110th ENZO store, a boutique located in the TFF Store in Tianjin, China. There are nine ENZO stores in Tianjin, a city with approximately 12.8 million residents. The TFF Store is ENZOs largest location and will serve as its Tianjin flagship store.

Santa Monica Place Reopens

Santa Monica Place celebrated its new grand opening in southern California following a complete makeover. This 524,000-square-foot, three-level, open-air retail mall hosts more than 50 stores, including Ben Bridge Jeweler, Pandora and Juicy Couture. The project is 97 percent committed and 92 percent leased. The anchor department store, Bloomingdales, is now open and Nordstrom will open on August 27. Tiffany & Co. opens at the center in September. Santa Monica Place incorporated many green-building features and basically recycled the 1980s-era enclosed mall that owner Macerich redeveloped into what stands there today.

Shane Plans to Exit Bankruptcy

Shane Co. expects to fully repay lenders whose claims are backed by assets, according to reorganization plan the jeweler filed with bankruptcy court in Colorado. The company plans to emerge from Chapter 11 and will continue operations directed by current management. Shane sells diamonds and jewelry online and at its retail stores in 13 states.

GENERAL

David Kwiat Dies at 94

David S. Kwiat, a prime force behind Kwiat and the son of the company’s founder Sam Kwiat, died at the age of 94. He was an icon in the diamond industry and will be long remembered for his sharp mind, his love of diamonds and his reputation for integrity.

In the diamond business, the parties signal their agreement by concluding a deal with the word “mazal.” If you had told David years ago that he would live to be 94, engaged in the business until his last days, surrounded by his whole family, there is no question that he would have said “mazal” to that. And it would have been the best deal he ever made.

Memorial donations can be made in his name to Jewelers for Children.

Museum Extends Wittelsbach-Graff Exhibit

The Smithsonians National Museum of Natural History is extending the Wittelsbach-Graff Diamond exhibit to September 1. The rare blue, 31.06-carat diamond is currently on display in the museums Harry Winston Gallery, adjacent to the renowned Hope Diamond, in the Hall of Geology, Gems and Minerals. The museum is located at 10th Street and Constitution Avenue N.W. in Washington, D.C. Admission is free.

STATS

Israel Imports & Exports

July $Mil. Chng. YTD $Mil. Chng.
Polished Exports $457 14% $3,457 75%
Polished Imports NA $1,880
Net Exports NA $1,577

Rough Imports NA $1,820
Rough Exports $243 36% $1,866 88%
Net Imports NA ($46)

Net Diam Acct. NA $1,531

Israel does not provide complete data.

U.S. Imports & Exports

Figures are rounded June 10 YTD 10
$Mil Chng. $Mil Chng.
Polished Imports $1,800 83% $8,800 60%
Polished Exports $1,600 69% $6,700 56%
Net Imports $168 $2,100

Rough Imports $44 (8%) $266 164%
Rough Exports $28 (35%) $150 109%
Net Imports $16 $116

Net Diamond Acct. $184 $2,200 83%

MINING

ALROSAs 1H Revenue, Profits Increase

ALROSAs first-half revenue rose 300 percent to $1.76 billion, while its net income totaled $97.3 million compared against the loss of $482.6 million it posted for the first half of 2009. Carat production fell to 16.6 million carats compared with 17.4 million carats for the first half of 2009. The mining giant reported that its preliminary sales for the second quarter came to $997 million, $249.1 million of which were domestic sales and $747.9 million of which were export sales. For the first half, then, ALROSA placed its rough sales at $1.9 billion, 31 percent of which were transacted through long-term contracts. ALROSA is planning sales of $3.3 billion for 2010.

Namdeb Extends Marine Mining

Namdeb budgeted $1 billion to invest in extending the life of its marine diamond mining operations during the next 10 years. Although its existing deposits are due to be depleted by 2014, Namdeb, a joint venture between De Beers and the government, believes it can find an additional 68 million carats along the shoreline, specifically between the high-water mark and 70 meters underwater. At press time, Namdeb was considering a consortium of local banks to help finance the investment, some of which will be used to develop shallow-water diamond mining techniques.

Chamber of Mines Appoints Hoefer

The Nunavut Chamber of Mines and the Northwest Territories appointed Tom Hoefer to the position of executive director. Hoefer, pictured, is well known for promoting and advancing Canadas north as an important resource industry. His experience during the past 25 years has encompassed exploration, mining, regulation and sustainable development in both the private and public sectors.

ECONWATCH

For the week ending Aug. 12, 2010:

Aug. 12 Aug. 5 Chng.
$1 = Euro 0.779 0.758 0.021
$1 = Rupee 46.78 46.17 0.6
$1 = Israel Shekel 3.78 3.76 0.02
$1 = Rand 7.30 7.25 0.05
$1 = Canadian Dollar 1.04 1.01 0.03

Precious Metals
Gold $1,215.30 $1,196.10 $19.20
Platinum $1,527.00 $1,569.00 -$42.00

Stock Indexes Chng.
BSE 18,073.90 18,172.83 -98.93 -0.5%
Dow Jones 10,319.95 10,674.98 -355.03 -3.3%
FTSE 5,266.06 5,365.78 -99.72 -1.9%
Hang Seng 21,105.71 21,551.72 -446.01 -2.1%
S&P 500 1,083.61 1,125.81 -42.20 -3.7%
Yahoo! Jewelry 828.46 860.37 -31.91 -3.7%

USA
Birks & Mayors $1.09 $1.19 -$0.10 -8.4%
Blue Nile $42.04 $47.43 -$5.39 -11.4%
Charles & Colvard $2.24 $2.37 -$0.13 -5.5%
DGSE Companies $3.00 $2.95 $0.05 1.7%
Fuqi Intl. $7.77 $7.72 $0.05 0.6%
JCPenney $20.83 $22.09 -$1.26 -5.7%
Kohls $46.61 $48.95 -$2.34 -4.8%
LJ Intl. $3.00 $2.95 $0.05 1.7%
Macys $20.25 $19.73 $0.52 2.6%
Man Sang $2.06 $2.40 -$0.34 -14.2%
Movado Group $10.83 $11.66 -$0.83 -7.1%
Nordstrom $33.49 $34.07 -$0.58 -1.7%
Saks $7.82 $8.65 -$0.83 -9.6%
Signet $28.02 $30.26 -$2.24 -7.4%
Sothebys $29.18 $27.53 $1.65 6.0%
Tiffany $42.40 $43.22 -$0.82 -1.9%
Walmart $50.45 $51.56 -$1.11 -2.2%
Zale $1.81 $2.03 -$0.22 -10.8%

EUROPE
Bulgari €5.82 €6.11 -€0.29 -4.7%
Bijou Brigitte €99.00 €103.20 -€4.20 -4.1%
Damiani €0.78 €0.83 -€0.05 -6.0%
LVMH €92.93 €96.51 -€3.58 -3.7%
PPR €102.05 €105.45 -€3.40 -3.2%
Richemont CHF 39.72 CHF 42.01 -CHF 2.29 -5.5%
Swatch Group CHF 338.00 CHF 351.00 -CHF 13.00 -3.7%
Theo Fennell (pence) 37.00 40.55 -3.55 -8.8%

INDIA (rupee)
Classic Diamond 21.40 20.75 0.65 3.1%
Gitanjali Gems 211.50 177.55 33.95 19.1%
Goldiam Intl. 62.00 51.25 10.75 21.0%
Rajesh Exports 99.25 90.10 9.15 10.2%
Ren. Jewellery 74.65 72.05 2.60 3.6%
Su-Raj Diamonds 61.95 57.95 4.00 6.9%
Titan 2,847.20 2,785.90 61.30 2.2%
Zodiac JRD 28.40 28.00 0.40 1.4%
Suashish Diamonds 184.80 169.95 14.85 8.7%

NEW ZEALAND
Michael Hill NZD 0.67 NZD 0.66 NZD 0.01 1.5%

MINING STOCKS
CANADA
Harry Winston CAD 11.86 CAD 12.63 -CAD 0.77 -6.1%
Lucara Diamond CAD 0.86 CAD 0.96 -CAD 0.10 -10.4%
Mountain Province CAD 3.40 CAD 3.47 -CAD 0.07 -2.0%
Peregrine Diamonds CAD 2.10 CAD 1.87 CAD 0.23 12.3%
Rockwell Diamonds CAD 0.06 CAD 0.07 -CAD 0.01 -14.3%
Shore Gold CAD 0.64 CAD 0.63 CAD 0.01 1.6%
Stornoway Diamond CAD 0.56 CAD 0.56 CAD 0.00 0.0%
True North Gems CAD 0.10 CAD 0.10 CAD 0.00 0.0%
UK (pence)
African Diamonds 39.22 30.00 9.2 30.7%
Anglo American 2,376.50 2,580.00 -203.5 -7.9%
BHP Billiton 1,940.00 2,026.25 -86.3 -4.3%
Firestone Diamonds 26.00 26.25 -0.3 -1.0%
Gem Diamonds 207.30 219.00 -11.7 -5.3%
Gemfields 4.63 4.53 0.1 2.2%
Mwana Africa 9.00 8.15 0.9 10.4%
Namakwa Diamonds 42.00 43.00 -1.0 -2.3%
Petra Diamonds 68.50 68.75 -0.3 -0.4%
Rio Tinto plc 3,265.50 3,430.00 -164.5 -4.8%
Stellar Diamonds 10.01 10.01 0.0 0.0%

INDIA MARKET REPORT

RAPAPORT NEWS SERVICE | AUG. 20, 2010 www.rapaport.com | news@rapaport.com

Industry Retail EconWatch India Mining General

RapUp Aug. 20, 2010

Mumbai show begins with heavy traffic and increased optimism for Indian demand. Surat Diamond Sourcing company established with reported $220m budget to buy rough for Indian cutters. Russia’s diamond output -3.1% in July. Shrenuj & Co sales +43% to $100m. Asian Star 1Q sales +26% to $95m. China’s 1H diamond imports +92% to $577m, exports +75% to $579m. U.S. jewelry inflation +0.4% in July.

RapNet Data: August 20, 2010

Diamonds 728,704

Value $4,673,009,184

Carats 802,138

Average Discount -31.84%

Get Current Price List | Subscribe to Rapaport | Join RapNet

ANNOUNCEMENTS

August
19-23
Thu-Mon
Rapaport at India Intl Jewellery Show (IIJS)
Mumbai

NSE Complex - Hall 5
Booths: 5EX015 I, 5EX016 II, 5EX017 I, 5EX018 II

For information contact Pooja Kotwani:
+91-22-6628-2700 or email pooja.kotwani@diamonds.net

September
5-8
Sun-Wed
Rapaport at Intl Jewellery London (IJL)
Booth H91 – H99 Earls Court 2 London,

Contact: Francesco Lopresti
+39-02-40047274
francesco.lopresti@diamonds.net

October
21
Thu
Rapaport Intl Diamond Conference 2010
The Times Center, 242 W. 41st., New York

8:30 a.m. - 5 p.m.
Diamond Demand
Human Rights and the Diamond Industry - The Way Forward

Register now, seating is limited.

QUOTE OF THE WEEK:
Household spending remains tepid amid concerns about U.S. economic stability. Current data on the economy is mixed, which signals that retailers will continue planning with caution until a long-term trend can be established.

Jack Kleinhenz | NRF chief economist

Careers@Rapaport

The Rapaport Group is growing rapidly. If you want to work with the best and brightest, join us. We have great opportunities for trading managers, gemologists, sales assistants, and entry level positions for our offices in New York, Antwerp, Mumbai, Dubai, and Shanghai. To get on the fast track, email your resume to careers@rapaport.com.

INDUSTRY

Surat Buying Cooperative Forms

Surat Diamond Sourcing India Ltd. was founded as a cooperative rough diamond-buying firm for its members. Organizers hope to eventually attract 1,500 members and source rough directly from mines in Africa, Russia, Canada and Australia. The company will ensure a continuous, stable supply of rough to the groups members and remove the need for its traders to travel to international diamond centers.

Argyle Pink Diamond Tender Begins

Rio Tinto launched its 2010 Argyle Pink Diamond Tender featuring 55 pink diamonds notable for their depth of color. Highlights in the collection include a classic, 2.02-carat, round, brilliant, fancy, vivid purplish pink diamond known as the "Argyle Mystra," a 1.43-carat, fancy purplish red, square-shaped diamond named "Argyle Ava" and a 0.50-carat, fancy purplish red, round-shaped diamond. The names of the diamonds were inspired by the tender collections theme of "Earth Magic." Tender viewings will be held in Perth through August 22, in Hong Kong from September 13 to 20 and in New York from October 12 to 17. Rio Tinto noted that this was the first year to showcase on mainland China, with a tender viewing scheduled in Shanghai on September 27.

U.S. Jewelry Inflation Flat

The consumer price index (CPI) for jewelry in the U.S. rose 0.4 percent year on year to 157.4 points in July 2010. The July reading marked the 30th consecutive cycle for which the jewelry CPI registered more than 150 points. The jewelry price index is based on the reference point of average prices in 1986, which is set at 100 points.

Myanmar Gem Sale in October

Myanmar expects to hold its third-quarter gems emporium in October at Nay Pyi Taw. The specific date for the sale has not been set as a new jade exhibition hall is still under construction adjacent to an existing jewelry exhibition hall. Myanmars gem sale, which was held in Yangon during June and July, earned $890 million from 7,000 lots of gemstones and jade.

Rapaport Weekly Broadcast

WATCH NOW: The Gems & Jewellery Export Promotion Council launched its first India International Jewellery Week (IIJW) event in Mumbai. The promotional event will place Mumbai on the map as an important fashion contender. Rio Tinto formed “Nazraana” to help retailers in India boost diamond jewelry consumption in addition to traditional bridal jewelry sets. The program includes sales training and visual merchandising techniques.

RETAIL

U.S. July Retail Mixed

U.S. chain-store sales rose 3.3 percent year on year this past week, according to weekly data collected by the International Council of Shopping Centers (ICSC) and Goldman Sachs. ICSC concluded that chain-store sales in July rose 2.9 percent in July, after having fallen by 5 percent one year ago.

MasterCard Advisors SpendingPulse report noted that July sales rose by an anemic 1.4 percent and that jewelry sales were weaker. Government data reflected a 0.8 percent drop in department store sales for July. The National Retail Federation (NRF), however, concluded that its membership counter sales were up 3.1 percent in July, excluding automobile, gas station and restaurant receipts.

Michael Hill Profits Drop

Michael Hill International reported a 60 percent drop in fiscal year profits to $18.8 million. The company took a hit of about $6 million from U.S. operations and closed eight of 17 stores. Global revenue rose 7.6 percent to $313 million. Same-store sales rose 5.2 percent. Operations in Australia and New Zealand performed well. Canada was improving, but the U.S. market remains very challenging.

ENZO Sales +57%

LJ Internationals group revenues rose 47 percent to $33 million during the second quarter. ENZO retail sales increased 57 percent to $16.7 million and wholesale sales were up 38 percent to $16.3 million. Net income grew to $2.3 million from $192,000 one year ago.

ShopNBC Narrows Loss

ShopNBCs second-quarter revenue rose 5.8 percent to $126 million, but the shopping network recorded a loss of $7.7 million compared against the loss of $8.8 million it recorded one year ago. The average price per item sold during the quarter fell 13 percent to $97, while the return rate dropped by 120 basis points to 21 percent. ShopNBC picked up 573,545 new customers during the quarter, an annual increase of 40 percent.

Asian Stars Profits +9%

Asian Stars revenues rose 26 percent to $94.8 million during its first quarter that ended on June 30, 2010. Diamond sales were up 29 percent to $89.9 million, while jewelry sales grew 2 percent to $6.7 million. Net profits rose 9 percent year on year to $1.7 million.

Shrenujs Profits +39%

Shrenuj & Co. posted a 43 percent annual sales increase to $99.9 million during its first quarter that ended on June 30, 2010. The companys diamond sales increased by 28 percent to $61.5 million and its studded jewelry sales were up 76 percent to $38.5 million. Profits rose 39 percent year on year to $2.9 million.

DGSEs Profits Soar

DGSE reported an annual revenue drop of 4.2 percent to $20.7 million during its second quarter. However, the company registered a net income of $7.7 million for the quarter, a significant gain from the $689,504 it posted one year ago.

Jos Alukkas Funds Expansion

Jos Alukkas expects to invest about $178 million during the course of the next two years to expand its retail operations across south India. The company reported sales of approximately $265 million for its fiscal 2010 and has targeted a growth rate of 25 percent for its current fiscal year. Jos Alukkas diamond sales have increased from 10 percent of total sales in 2009 to 20 percent of the total this year, but gold sales have eroded to only 60 percent of total sales versus 80 percent one year ago.

James Avery Opens in Tennessee

James Avery opened its first store in Tennessee at the CoolSprings Galleria in Franklin. The retailer plans to hold a grand opening at the store on September 16.

Bloomingdales Opens Outlet Concept

Bloomingdales opens its first round of upscale outlet stores this month, with one debuting at Bergen Town Center in Paramus, New Jersey, and another launching in Woodbridge, Virginia, at Potomac Mills. A Bloomingdales outlet store is also scheduled to open later this year at both Miamis Dolphin Mall and the Sawgrass Mills mall in Sunrise, Florida. Outlet stores feature 25,000 square feet of showroom space offering jewelry, mens and womens apparel, shoes and handbags.

GENERAL

Christies October Sale in Dubai

Christie’s will hold its Jewels: The Dubai Sale on October 27. Christie’s sale offers 41 examples of parures that are all signed by Chatila, Jahan and Mouawad. Each lot consists of earrings, a ring, a matching necklace and bracelet and will be accompanied by a certificate from its maker. Estimates range from $40,000 to $450,000 and all lots will be offered without reserve.

BJA Appoints Rainer

The British Jewellers Association (BJA) appointed Simon Rainer, pictured, as their new chief executive on August 11. Rainer, 53, has 15 years experience in international and domestic jewelry markets. He vowed to work closely with membership to provide a dynamic, credible, and reliable range of services and focus on adding to the membership’s commercial prosperity.

Police Seek Clues in De Beers Robbery

De Beers and Omega jewelry stores in London were robbed of an estimated $600,000 in diamonds. Police released images of four balaclava-clad robbers using hammers to break jewelry displays and abscond with the jewels. City of London police have a team of dedicated detectives working on the case. Investigators theorized that these robbers could not have just picked these stores on the off chance that the padlocks would be easy to cut through and are therefore questioning insiders for further information.

JSA, eBay Partner to Prevent Crime

Jewelers Security Alliance (JSA) is partnering with eBay on a crime prevention program at the auction website. The unique partnership provides for expanded information sharing to help the FBI, as well as state and local law enforcement agencies, curb jewelry industry losses. JSA and eBay will regularly share best practices and take measures to eradicate illegal activity, identify ways to leverage new technology and collaborate with the FBIs jewelry and gem initiative to help identify the crime rings that have been responsible for stealing jewelry.

STATS

Chinas 1H Imports

The Shanghai Diamond Exchange (SDE) reported that import, export and intermember transactions reached approximately $1.22 billion during the first half of 2010, up 76 percent from their 2009 level. The Diamond Administration of China added that the import volume of diamonds listed under the normal trade category reached $577 million, an annual increase of 92 percent. During the first half of the year, 25 new members joined SDE, bringing its total membership to 267. The SDE moved to the new China Diamond Exchange Center building late in 2009. In October 2010, SDE will celebrate its tenth anniversary.

Russia Production +1%

Russia mined 0.7 percent more diamonds during the January to July 2010 timeframe than it did one year ago, according to the Federal State Statistics Service (Rosstat). The government did not report the amount of carats produced during the first seven months of the year. Production in July dropped 3 percent.

MINING

Vaaldiam Narrows Loss

Vaaldiam Mining incurred a net loss of $1.68 million, or 2 cents per share, during the second quarter, an improvement against the per-share loss of 5 cents it reported one year ago. Cash stood at $10.5 million and working capital totaled $8.1 million at the close of the quarter. Vaaldiams Duas Barras project in Brazil recommenced alluvial diamond operations. Full production is expected to resume before the end of the third quarter, with 2010 production estimated at approximately 15,000 carats and 2011 production forecast as approximately 40,000 carats with a cost of $85 per carat.

African Diamonds Holds Firm

African Diamonds informed shareholders that the board would not consider a proposal made one week ago to buy all of its shares. The company holds a 40 percent share in the AK6 project in Botswana, with Lucara Diamonds owning the remaining 60 percent.

ECONWATCH

For the week ending Aug. 19, 2010:

Aug. 19 Aug. 12 Chng.
$1 = Euro 0.776 0.779 -0.003
$1 = Rupee 46.47 46.78 -0.3
$1 = Israel Shekel 3.78 3.78 0.00
$1 = Rand 7.29 7.30 -0.01
$1 = Canadian Dollar 1.03 1.04 -0.01

Precious Metals
Gold $1,231.60 $1,215.30 $16.30
Platinum $1,522.00 $1,527.00 -$5.00

Stock Indexes Chng.
BSE 18,454.94 18,073.90 381.04 2.1%
Dow Jones 10,271.21 10,319.95 -48.74 -0.5%
FTSE 5,211.29 5,266.06 -54.77 -1.0%
Hang Seng 21,072.46 21,105.71 -33.25 -0.2%
S&P 500 1,075.63 1,083.61 -7.98 -0.7%
Yahoo! Jewelry 836.59 828.46 8.13 1.0%

USA
Birks & Mayors $1.04 $1.09 -$0.05 -4.6%
Blue Nile $41.74 $42.04 -$0.30 -0.7%
Charles & Colvard $2.44 $2.24 $0.20 8.9%
DGSE Companies $2.72 $3.00 -$0.28 -9.3%
Fuqi Intl. $7.28 $7.77 -$0.49 -6.3%
JCPenney $20.60 $20.83 -$0.23 -1.1%
Kohls $46.72 $46.61 $0.11 0.2%
LJ Intl. $3.10 $3.00 $0.10 3.3%
Macys $20.72 $20.25 $0.47 2.3%
Man Sang $2.05 $2.06 -$0.01 -0.5%
Movado Group $10.96 $10.83 $0.13 1.2%
Nordstrom $31.19 $33.49 -$2.30 -6.9%
Saks $7.70 $7.82 -$0.12 -1.5%
Signet $27.81 $28.02 -$0.21 -0.7%
Sothebys $29.61 $29.18 $0.43 1.5%
Tiffany $43.21 $42.40 $0.81 1.9%
Walmart $50.06 $50.45 -$0.39 -0.8%
Zale $1.85 $1.81 $0.04 2.2%

EUROPE
Bulgari €5.88 €5.82 €0.06 1.0%
Bijou Brigitte €106.68 €99.00 €7.68 7.8%
Damiani €0.76 €0.78 -€0.02 -2.6%
LVMH €93.60 €92.93 €0.67 0.7%
PPR €102.15 €102.05 €0.10 0.1%
Richemont CHF 40.64 CHF 39.72 CHF 0.92 2.3%
Swatch Group CHF 339.10 CHF 338.00 CHF 1.10 0.3%
Theo Fennell (pence) 36.00 37.00 -1.00 -2.7%

INDIA (rupee)
Classic Diamond 20.85 21.40 -0.55 -2.6%
Gitanjali Gems 208.80 211.50 -2.70 -1.3%
Goldiam Intl. 57.05 62.00 -4.95 -8.0%
Rajesh Exports 99.50 99.25 0.25 0.3%
Ren. Jewellery 77.75 74.65 3.10 4.2%
Su-Raj Diamonds 62.20 61.95 0.25 0.4%
Titan 2,895.75 2,847.20 48.55 1.7%
Zodiac JRD 28.10 28.40 -0.30 -1.1%
Suashish Diamonds 179.60 184.80 -5.20 -2.8%

NEW ZEALAND
Michael Hill NZD 0.69 NZD 0.67 NZD 0.02 3.0%

MINING STOCKS
CANADA
Harry Winston CAD 11.79 CAD 11.86 -CAD 0.07 -0.6%
Lucara Diamond CAD 0.89 CAD 0.86 CAD 0.03 3.5%
Mountain Province CAD 3.65 CAD 3.40 CAD 0.25 7.4%
Peregrine Diamonds CAD 2.01 CAD 2.10 -CAD 0.09 -4.3%
Rockwell Diamonds CAD 0.07 CAD 0.06 CAD 0.01 16.7%
Shore Gold CAD 0.72 CAD 0.64 CAD 0.08 12.5%
Stornoway Diamond CAD 0.53 CAD 0.56 -CAD 0.03 -5.4%
True North Gems CAD 0.09 CAD 0.10 -CAD 0.01 -10.0%
UK (pence)
African Diamonds 39.00 39.22 -0.2 -0.6%
Anglo American 2,360.00 2,376.50 -16.5 -0.7%
BHP Billiton 1,810.00 1,940.00 -130.0 -6.7%
Firestone Diamonds 26.00 26.00 0.0 0.0%
Gem Diamonds 199.30 207.30 -8.0 -3.9%
Gemfields 4.65 4.63 0.0 0.4%
Mwana Africa 8.80 9.00 -0.2 -2.2%
Namakwa Diamonds 42.30 42.00 0.3 0.7%
Petra Diamonds 68.00 68.50 -0.5 -0.7%
Rio Tinto plc 3,290.00 3,265.50 24.5 0.8%
Stellar Diamonds 10.00 10.01 0.0 -0.1%

RAPAPORT NEWS SERVICE | AUG. 27, 2010 www.rapaport.com | news@rapaport.com

Industry Retail EconWatch India Mining General

RapUp Aug. 27, 2010

Very high traffic and strong trading at Mumbai show with sales significantly greater than last year. Prices stable for most goods. 3ct, H-K, VS goods hot. De Beers to expand online auctions to sightholders and open up access to sight goods to non-sightholders. BHP diamond division revenues +42% to $1.3b, earnings +234% to $485m. Gem Diamonds 1H revenue -11% to $104m, profits -9% to $3m. Sierra Leone 1H rough exports +43% to $51m. Signet 2Q revenue +2% to $723m, profits +47% to $41m. Michael Hill FY revenues +8% to $314m, profits -60% to $19m. Global 2Q gold demand +77% to $40b, gold jewelry demand -5%.

RapNet Data: August 27, 2010

Diamonds 743,069

Value $4,664,573,457

Carats 814,864

Average Discount -31.88%

Get Current Price List | Subscribe to Rapaport | Join RapNet

ANNOUNCEMENTS

Aug-Sep
30-2
Mon-Thu
Rapaport New York Melee Auction

40,000 carats of assorted parcels ranging from -2.5 sieve plate to 1ct of very fine to commercial quality goods. Excellent buying opportunity for diamond wholesalers and jewelry manufacturers.

Viewing By Appointment Only

+1-212-354-9100
auctions@diamonds.net

September
5-8
Sun-Wed
Rapaport at Intl Jewellery London (IJL)
Booth H91 – H99 Earls Court 2 London,

Contact: Francesco Lopresti
+39-02-40047274
francesco.lopresti@diamonds.net

October
21
Thu
Rapaport Intl Diamond Conference 2010
The Times Center, 242 W. 41st., New York

8:30 a.m. - 5 p.m.
Diamond Demand
Human Rights and the Diamond Industry - The Way Forward

Register now, seating is limited.

QUOTE OF THE WEEK:
Better sales growth continued in the high street in August, and retailers are upbeat about prospects in the coming three months. However, the broader outlook for consumer spending is still uncertain, given the ales tax] rise next year, subdued pay awards and the feedthrough of public spending cuts to job losses.

Lai Wah Co | Confederation of British Industry

Careers@Rapaport

The Rapaport Group is growing rapidly. If you want to work with the best and brightest, join us. We have great opportunities for trading managers, gemologists, sales assistants, and entry level positions for our offices in New York, Antwerp, Mumbai, Dubai, and Shanghai. To get on the fast track, email your resume to careers@rapaport.com.

INDUSTRY

De Beers Brings Sightholders to Secondary Market

Diamond Trading Company (DTC) sightholders will be given the option to bid for De Beers goods in the secondary market through Diamdel’s online auctions. Clients of Diamdel will be allowed to become sightholders even after the next supplier of choice contract period begins. As part of this new pilot program, Diamdel online auctions will be open to sightholders in October and to qualifying diamantaires in April 2011.

Successful companies will be given the opportunity to elevate their status to full-fledged DTC sightholders during the next contract period. DTC will invite such companies to submit a mid-contract proposal questionnaire once a year. The company has streamlined the supplier of choice application process for the next contract period so that one simplified contract proposal questionnaire will be required by each applicant to cover multiple categories of goods.

Industry analysts expect that a part of the company’s Botswana production may be set aside and sold at auctions in Gaborone, where the government plans to develop trading outside the DTC system. Despite these planned changes, the majority of De Beers goods will remain with sightholders and De Beers is committed to the ITO system.

Diamonds Fail to Boost Zimbabwes Economy

Zimbabwe’s economy is still in dire need of economic relief and diamonds are not likely to make much of a contribution. The value of stones auctioned off from Marange two weeks ago came to about $56 million, lower than previous estimates. The government reported earning $30 million in dividends from the rough sale. The Zimbabwe Mining Development Corporation (ZMDC), a government entity that is sanctioned by the U.S., was said to earn a small dividend from the sale, but the bulk of profits went back to the mining companies, Mbada and Canadile.

In an unrelated matter, the expansion of Rio Tintos Murowa Diamond Mine would create at least 300 more jobs. Additionally, Murowa, a joint empowerment venture between Rio Tinto and local investors, recently received praise for its corporate responsibility programs in the region.

Rapaport Weekly Broadcast

WATCH NOW: The Spectrem Millionaire Investor Confidence Index fell to negative 18 points in August, not far from a record low of negative 20 points in June 2009. The IIJS show in Mumbai experienced strong trading activity, generating $850 million worth of business. Demand for goods was spread across all categories of diamonds. There was also strong activity in fancy shapes with emerald cuts in 40 to 70 pointers proving popular. Pear shapes and princess cuts also received interest among buyers.

RETAIL

Gold Jewelry Demand Weakens Slightly

World gold demand by value rose 77 percent to $40.4 billion during the second quarter, concluded the World Gold Council. Gold spiked to a new record, topping $1,260 in June, which helped to boost the dollar figure.

Global jewelry demand fell 5 percent due, in part, to surging gold prices. Gold jewelry demand in India, the largest market, fell 2 percent. China experienced a gold jewelry demand increase of 5 percent. Global gold investment demand was the strongest performing segment as economic worries from the U.S. and Europe drove more individuals toward safe-haven buying. The Council expects little change in trends for the second half of 2010 with strong demand continuing from India and China and investment demand the driving force in Western cultures.

Signets 2Q Sales +2%, Profit +47%

Signets second quarter revenue rose 1.7 percent to $722.8 million. The retailer lowered its cost of sales by 1.2 percent, which helped improve the gross margin by 200 basis points. Net income rose 47 percent to $40.7 million. By region, sales in the U.S. rose 5.1 percent to $580.8 million and operating income rose 26 percent to $63.3 million. Same-store sales rose 5.9 percent. U.K. sales in local currency fell 1.8 percent and same-store sales fell 0.4 percent.

Titan to Open 150 New Stores

Titan Industries, parent of Tata and the Tanishq jewelry brand, plans to open 150 new stores by the end of March 2011. The group plans to invest about $37 million to open these facilities and has already launched 40 new stores in India this year.

Citibank Notifies Zale of Sales Shortfall

Citibank notified Zale Corporation for a fourth time, the retailer had not met the minimum volume of credit card sales required by its credit card agreement with the bank. Zale informed shareholders that on August 23, Citibank required a payment of approximately $396,000 prior to September 22 to cover a shortfall in its August sales and to avoid termination of its agreement in February 2011. Zale has been negotiating an agreement with Citibank and has already paid more than $5 million to the bank for these ongoing shortfalls.

Anjolee Unveils New Tennis Bracelet

Anjolee.com released its Timeless Dreams Tennis Bracelet as part of the Diamond Dreams Collection. The piece features a classic, four-prong setting and round diamonds. Customers can customize the bracelet by selecting the metal type, size, diamond quality and length online. The items starting price is $1,143.25.

Robbers Attack Salesman Near Dallas

Robbers attacked a wholesale jeweler outside a Richardson, Texas shop and got away with at least $750,000 in 22-karat gold jewelry. The victim was sitting in his car in an alley behind the shop when a car pulled up and three men jumped out, smashed his windows, physically restrained him, popped the trunk and took a small suitcase filled with what was described as “handcrafted fine-detailed Asian jewelry.” Police believe the robbery was planned in advance.

GENERAL

HRD Lab Link Service Expands in India

HRD Antwerp, along with partners Ferrari Belgium and BVC Logistics, expanded the HRD Lab Link service to cover eight cities in India, including Surat. Indirect services will be available to Dehli, Bangalore, Chennai, Kolkata, Hyderabad and Jaipur through the city of Mumbai.

GIA Announces May 2011 Symposium

The Gemological Institute of America (GIA) will host their 2011 symposium from May 29 to May 30 in Carlsbad, California. The theme will be Advancing the Science and Business of Gems. The event will commemorate the 80th anniversary of GIA and end just as Las Vegas Jewelry Week kicks off. Capacity is limited and the event fees include meals. Registration opens on October 15.

STATS

Sierra Leone’s Rough Exports +43%

Sierra Leones rough exports rose 43 percent year on year to $54 million during the first half of 2010 that ended on June 30, 2010. At the current rate, the country is on target to achieve strong improvement compared with 2009, when it exported just $78 million worth of rough.

MINING

BHP Diamonds Revenues +42%

BHP Billiton reported that revenue from its diamond and specialty products division rose 42 percent to $1.2 billion for fiscal year 2010. Earnings from diamonds, before interest and tax, rose 234 percent to $485 million. The companys total revenue increased by 5 percent to $52.79 billion, while net profits jumped 116 percent to $12.72 billion.

Harry Winston Closes Deal With Kinross

Harry Winston reinstated its 40 percent stake in the Diavik mine. The company repurchased a 9 percent stake in Diavik from Kinross Gold for an aggregate purchase price of $220 million, which included cash and stock.

Gem Diamonds 1H Profits -9%

Gem Diamonds reported that its first-half revenue fell 11 percent to $103.9 million. Profits for the first half dropped 9 percent to $3 million. The company ended the period with $108 million in cash and no debt. Rough prices from Letšeng increased 32 percent to $1,728 per carat. Ellendale fancy yellow diamonds rose 3 percent to an average of $2,588 per carat for goods sold to Tiffany & Co.

IGE Conducts Angola Diamond Mine Sale

IGE Resources sold 6,045 carats of rough diamonds for $483,600 out of its Luxinge mine in Angola. Another sale is planned for September. The sale occurred during IGEs current third fiscal quarter. The junior miner, which reports its financial data in krona currency, recorded second-quarter revenue of $849,000. It was the first time IGE registered sales income, most of which was derived from a sale of 3,407 carats. Additional income from nonmineral sales totaled $2.6 million. IGE was able to narrow its loss by 70 percent to $1.3 million. The miner also completed its purchase of Pangea DiamondFields during the quarter and secured government approval for its Luxinge diamond project in Angola.

Peregrine Diamonds Reports Six New Kimberlites

Peregrine Diamonds discovered six new kimberlites at its Chidliak diamond project on Baffin Island in Nunavut, Canada, bringing its total number of new discoveries to date to 38. Three of the new kimberlites were discovered at the surface and three were found through core drilling. Samples from the new discoveries were sent to the Saskatchewan Research Council for diamond analysis via caustic fusion. The results will be reported when they become available.

ECONWATCH

For the week ending Aug. 26, 2010:

Aug. 26 Aug. 19 Chng.
$1 = Euro 0.786 0.776 0.010
$1 = Rupee 46.82 46.47 0.4
$1 = Israel Shekel 3.82 3.78 0.04
$1 = Rand 7.33 7.29 0.04
$1 = Canadian Dollar 1.06 1.03 0.03

Precious Metals
Gold $1,237.50 $1,231.60 $5.90
Platinum $1,529.00 $1,522.00 $7.00

Stock Indexes Chng.
BSE 18,226.35 18,454.94 -228.59 -1.2%
Dow Jones 9,985.58 10,271.21 -285.63 -2.8%
FTSE 5,155.84 5,211.29 -55.45 -1.1%
Hang Seng 20,612.06 21,072.46 -460.40 -2.2%
S&P 500 1,047.23 1,075.63 -28.40 -2.6%
Yahoo! Jewelry 827.86 836.59 -8.73 -1.0%

USA
Birks & Mayors $1.10 $1.04 $0.06 5.8%
Blue Nile $42.07 $41.74 $0.33 0.8%
Charles & Colvard $2.40 $2.44 -$0.04 -1.6%
DGSE Companies $2.54 $2.72 -$0.18 -6.6%
Fuqi Intl. $6.36 $7.28 -$0.92 -12.6%
JCPenney $20.43 $20.60 -$0.17 -0.8%
Kohls $47.15 $46.72 $0.43 0.9%
LJ Intl. $3.10 $3.10 $0.00 0.0%
Macys $19.29 $20.72 -$1.43 -6.9%
Man Sang $2.23 $2.05 $0.18 8.8%
Movado Group $10.19 $10.96 -$0.77 -7.0%
Nordstrom $30.28 $31.19 -$0.91 -2.9%
Saks $6.99 $7.70 -$0.71 -9.2%
Signet $28.58 $27.81 $0.77 2.8%
Sothebys $28.50 $29.61 -$1.11 -3.7%
Tiffany $42.26 $43.21 -$0.95 -2.2%
Walmart $51.11 $50.06 $1.05 2.1%
Zale $1.51 $1.85 -$0.34 -18.4%

EUROPE
Bulgari €5.78 €5.88 -€0.10 -1.7%
Bijou Brigitte €104.95 €106.68 -€1.73 -1.6%
Damiani €0.74 €0.76 -€0.02 -2.6%
LVMH €91.99 €93.60 -€1.61 -1.7%
PPR €101.25 €102.15 -€0.90 -0.9%
Richemont CHF 39.38 CHF 40.64 -CHF 1.26 -3.1%
Swatch Group CHF 326.10 CHF 339.10 -CHF 13.00 -3.8%
Theo Fennell (pence) 36.00 36.00 0.00 0.0%

INDIA (rupee)
Classic Diamond 21.10 20.85 0.25 1.2%
Gitanjali Gems 212.90 208.80 4.10 2.0%
Goldiam Intl. 52.90 57.05 -4.15 -7.3%
Rajesh Exports 99.35 99.50 -0.15 -0.2%
Ren. Jewellery 74.60 77.75 -3.15 -4.1%
Su-Raj Diamonds 67.40 62.20 5.20 8.4%
Titan 2,981.85 2,895.75 86.10 3.0%
Zodiac JRD 28.30 28.10 0.20 0.7%
Suashish Diamonds 179.95 179.60 0.35 0.2%

NEW ZEALAND
Michael Hill NZD 0.69 NZD 0.69 NZD 0.00 0.0%

MINING STOCKS
CANADA
Harry Winston CAD 10.90 CAD 11.79 -CAD 0.89 -7.5%
Lucara Diamond CAD 0.81 CAD 0.89 -CAD 0.08 -9.0%
Mountain Province CAD 3.69 CAD 3.65 CAD 0.04 1.1%
Peregrine Diamonds CAD 2.00 CAD 2.01 -CAD 0.01 -0.5%
Rockwell Diamonds CAD 0.07 CAD 0.07 CAD 0.00 0.0%
Shore Gold CAD 0.63 CAD 0.72 -CAD 0.09 -12.5%
Stornoway Diamond CAD 0.53 CAD 0.53 CAD 0.00 0.0%
True North Gems CAD 0.08 CAD 0.09 -CAD 0.01 -11.1%
UK (pence)
African Diamonds 36.50 39.00 -2.5 -6.4%
Anglo American 2,302.00 2,360.00 -58.0 -2.5%
BHP Billiton 1,802.50 1,810.00 -7.5 -0.4%
Firestone Diamonds 23.13 26.00 -2.9 -11.0%
Gem Diamonds 199.40 199.30 0.1 0.1%
Gemfields 4.44 4.65 -0.2 -4.5%
Mwana Africa 9.01 8.80 0.2 2.4%
Namakwa Diamonds 42.31 42.30 0.0 0.0%
Petra Diamonds 64.00 68.00 -4.0 -5.9%
Rio Tinto plc 3,177.00 3,290.00 -113.0 -3.4%
Stellar Diamonds 9.59 10.00 -0.4 -4.1%

INDIA MARKET REPORT

RAPAPORT NEWS SERVICE | SEPT. 3, 2010 www.rapaport.com | news@rapaport.com

Industry Retail EconWatch India Mining General

RapUp Sept. 3, 2010

Polished markets stable with strong price resistance from buyers ahead of Hong Kong show. Rough prices and demand stable following DTC August sight estimated at $540m. Harry Winston 2Q revenue +62% to $154m, profits of $16m vs. loss of $24m. Tiffany 2Q revenues +9% to $669m, profits +19% to $68m. Lazare Kaplan estimates FY sales -21% to $152m. India’s July polished exports +37% to $1.7b, rough imports +7% to $942b. Belgium July polished exports +17% to $1.1b, rough imports +10% to $691m. Canadile building cutting and polishing center in Zimbabwe. Former IDE and WFDB president Itzhak Forem passes away. THE RAPAPORT PRICE LIST WILL NOT BE PUBLISHED NEXT WEEK, SEPTEMBER 9. WE WISH EVERYONE A NEW YEAR OF PEACE AND PROSPERITY.

RapNet Data: September 3, 2010

Diamonds 752,490

Value $4,633,116,336

Carats 818,284

Average Discount -31.47%

Get Current Price List | Subscribe to Rapaport | Join RapNet

ANNOUNCEMENTS

September
5-8
Sun-Wed
Rapaport at Intl Jewellery London (IJL)
Booth H91 – H99 Earls Court 2, London

Contact: Francesco Lopresti
+39-02-40047274
francesco.lopresti@diamonds.net

September
6
Mon
Martin Rapaport Presentation at IJL

“The State of the Diamond Industry”

12 p.m. to 2 p.m.
Victoria Room (1st Floor)

September
14-18
Tue-Sat
Rapaport at Hong Kong Show
Booth 7T24-7T26, AsiaWorld-Expo

Contact: Ofira Gutman-Berrebi
+852-280-52620
ofira.gutman@diamonds.net

October
11-15
Mon-Fri

Rapaport New York Melee Auction

Over 40,000 carats of assorted parcels ranging from -2.5 sieve plate to 1ct of very fine to commercial quality goods. Excellent buying opportunity for diamond wholesalers and jewelry manufacturers.

To participate please contact:

+1-212-354-9100
auctions@rapaport.com

October
21
Thu
Rapaport Intl Diamond Conference 2010
The Times Center, 242 W. 41st., New York

8:30 a.m. - 5 p.m.
Diamond Demand
Human Rights and the Diamond Industry - The Way Forward

Register now, seating is limited.

QUOTE OF THE WEEK:
Sales and [month to month comparison become much harder [now] and consumer sentiment is shakier than before, particularly in the accessible luxury segment. We remain cautious about the domestic business.

Randal Konik | Jefferies & Co.

Careers@Rapaport

The Rapaport Group is growing rapidly. If you want to work with the best and brightest, join us. We have great opportunities for trading managers, gemologists, sales assistants, and entry level positions for our offices in New York, Antwerp, Mumbai, Dubai, and Shanghai. To get on the fast track, email your resume to careers@rapaport.com.

INDUSTRY

Rapaport Group Sets Human Rights Standard

Martin Rapaport, the chairman of Rapaport Group, addressed the issue of human rights and the diamond industry in a keynote speech delivered in Mumbai. He defined the Rapaport Minimum Standard as comprising “All diamonds that are legal and not directly involved in severe human rights violations should be freely, fairly and legally traded,” noting that the phrase “directly involved in severe human rights violation” is defined as diamonds whose physical production involved murder, rape, physical violence or forced servitude.

Rapaport also provided requirements for the legitimization of Marange diamonds, including the elimination of human rights violations; the fair, legal and safe trade of the stones and the fair distribution of revenue to the people of Zimbabwe. Read more.

De Beers U.S. Case Returns to Court

The Diamond Manufacturers & Importers Association of America (DMIA) filed an amicus brief on behalf of its membership in the $250 million De Beers settlement case. The court will permit DMIA to participate as an amicus and tossed out the original conclusion, which overturned the settlement with De Beers and put the matter up for a rehearing en banc.

Meanwhile, De Beers sued retailer Kohl’s along with Brilliant Jewelers/MJJ Inc. and 10 unnamed “does” for patent infringement of its Everlon Diamond Knot Collection. U.S. Court documents show that De Beers believes that Kohl’s “Rhodium-Plated Sterling Silver Diamond Love-Knot ring” is a direct copy of its ‘913 patented “Knot Ring” and that the “Rhodium-Plated Sterling Silver Diamond Love Knot Bangle Bracelet” infringes on its ‘799 patented “Bangle Bracelet.”

De Beers promoted its Forevermark brand of loose diamonds in Chennai, India, this week, the first in a series of private promotional events to be held in that country.

Rapaport Weekly Broadcast

WATCH NOW: Diamond Trading Company sight analyst Avi Krawitz discusses sightholder observations and feedback from the August sight. On the retail side of news in the U.S., brand loyalty proves to be quite strong in the latest STORES Media Favorite 50 Online Retailers survey, conducted by BIGresearch and published in the September issue of STORES Magazine.

RETAIL

U.S. Chain-Store Sales +3% in August

U.S. chain-store sales rose 3.2 percent in August from one year ago on a same-store basis, according to the International Council of Shopping Centers (ICSC). MasterCard Advisor’s SpendingPulse report noted that online jewelry sales rose 2 percent in August, but that in store sales remained nearly flat.

Tiffany & Co. Profits +19%

Tiffany reported a 9.2 percent year on year rise in revenue to $668.8 million for its second fiscal quarter. Cost of sales rose 2.5 percent to $282 million and net profit increased by 19 percent to $67.7 million or 53 cents per share. The retailer also said that about half of its sales were taking place outside the U.S. Net sales rose 7 percent in the Americas, 17 percent in the Asia-Pacific region and 25 percent in Europe. Net sales in Japan fell 2 percent.

Lazare Kaplan Estimates FY Sales at $152M

Lazare Kaplan International anticipates that its net sales for fiscal 2010 will total approximately $152.4 million, a decline against the $192.4 million posted for fiscal 2009. The company notified the Securities and Exchange Commission that it wasn’t able to provide reasonable estimates, file financial reports or assess gross margin income before taxes. The company was working to resolve all uncertainties and will provide financial statements as soon as possible. The company was delisted by the New York Stock Exchange (NYSE) Amex on August 23 and currently trades on pink sheets.

Movado Records $20M Loss

Movado reported a 2.9 percent increase in revenue during second quarter to $85.4 million, but cost of sales rose 12 percent to almost $40 million. Movado reported an operating loss of $1 million, and a net loss of $19.8 million, up from $277,000 one year ago.

Fred Meyer Opens Two New Locations

Fred Meyer Jewelers opened two new stores: One in Little Rock, Arkansas, its first store in the city, and one in Phoenix, Arizona. The company has already opened five new locations this year and plans to open 13 more.

Gitanjali to Buy a Jewelry Firm in Italy

Gitanjali Group wants to buy a leading jewelry house in Italy by the end of next month. The company hopes to expand across Europe and thinks the venture will help it penetrate the Middle East market and launch new jewelry designs. Gitanjali entered the U.S. market through a small acquisition of jewelry stores.

Swatch Sues UBS

Swatch lodged a complaint against UBS claiming that the watch brand recorded millions in losses from UBS investments that were supposed to be absolute-return products. UBS confirmed the lawsuit but had no comment.

GENERAL

Itzhak Forem Passes Away

Itzhak Forem, a former president of the Israel Diamond Exchange (IDE) and the World Federation of Diamond Bourses (WFDB), died at 72. Forem started his career in banking and then opened his own diamond business before holding these positions in the community. In October 2009, the main entrance of the Yahalom building in Israel was dedicated to him.

Roth Joins WDC Board

The World Diamond Council (WDC) appointed Jacky Roth to its board of directors. Roth has been working in the Antwerp diamond industry since 1979, serving on the board of the Antwerp Diamond Bourse (Beurs voor Diamanthandel) and as president of the Antwerp World Diamond Center (AWDC).

Oppenheimer to Chair Debswana

Nicky Oppenheimer was appointed as the chairman of Debswana, replacing De Beers former chief executive Gareth Penny, who resigned in July.

GJEPC Signs Precious Metals Agreement With DIL

The Gems & Jewellery Export Promotion Council (GJEPC) and Diamond India Limited (DIL) agreed to work together to import precious metals. DIL will import metals from overseas to sell to jewelers, while the GJEPC will provide marketing support. The agreement will also form a joint venture between DIL’s bullion operations and GJEPC’s marketing outreach to add value to jewelry exporters’ businesses.

Canadile Builds Diamond Center in Zimbabwe

Canadile Resources, which operates from Zimbabwe’s Marange diamond fields, is constructing a $20 million cutting and polishing center in the country. It is slated to open within the next six months and the company estimated that it will create about 7,000 jobs. Cougan Matanhire, the chairman of Canadile, said that the center would enable the country to funnel all of its rough diamond streams to one professional, secure area.

STATS

Japan’s July Polished Imports

Japan’s polished diamond imports rose 20 percent in July to $56.6 million. By volume, polished imports were up by 18 percent to 183,746 carats as their average price grew 2 percent to $308 per carat. Japan’s gold jewelry imports fell 39 percent to $308.8 million, while its platinum jewelry imports declined 26 percent to $199.3 million. Pearl imports dropped 35 percent to $152.9 million.

India July Imports / Exports

Figures are rounded $Mil. Chng. YTD $Mil. Chng.
Polished Exports $1,680 37% $12,500 72%
Polished Imports $1,110 7% $7,740 61%
Net Exports $567 $4,760

Rough Imports $942 7% $6,780 92%
Rough Exports $63 56% $7,750 46%
Net Imports $879 $6,250

Net Diam Acct. ($312) ($1,490)

Belgium Imports & Exports

Figures are rounded July 10 YTD 10
$Mil Chng. $Mil Chng.
Polished Imports $798 22% $5,835 29%
Polished Exports $1,119 17% $6,467 29%
Net Exports $321 $632

Rough Imports $691 10% $5,582 70%
Rough Exports $1004 17% $6,686 72%
Net Imports ($313) ($1,104)

Net Diamond Acct. $634 $1,736

MINING

Harry Winston Profits Rise

Harry Winston Diamond Corporation reported that revenue rose 62 percent for fiscal second quarter. Profit rose to $16.5 million from the loss of $24.5 million it posted for the second quarter of fiscal 2010. Cost of rough sales was $55.4 million, resulting in a gross margin of 36.2 percent compared with 12.8 percent. Rough diamond production was 14 percent higher at 645,000 carats, but as measured by the calendar year.

Mining operations generated revenue of $86.8 million, an increase of 89 percent, and retail sales rose 37 percent to $66.9 million. Overall, Harry Winston improved gross margin as a percentage of sales to 43.5 percent, up from 30.1 percent. The company reported that from its retail sales, it experienced a 40 percent increase in sales across Europe, which totaled $24.7 million for the period. Its sales in the Asia-Pacific region increased 40 percent to $22.6 million and U.S. sales grew 31 percent to $19.6 million.

Trans Hex Sale Yields $16M in May

Trans Hex sold $15.7 million worth of diamonds from its South Africa operations in May at an average price of $927 per carat. The company saw its sales revenue increase by 12 percent year on year to $93.1 million. The company noted that production was below target this year due to underperformance at its Baken mine. Trans Hex also started pilot mining at its 33-percent–owned Luana project in Angola, yielding 26,452 carats that were then sold for $8.2 million or $312 per carat.

ACR Files Legal Action Against Mpofu

African Consolidated Resources (ACR) filed a court action against Zimbabwe mines minister Obert Mpofu for allowing the sale of rough diamonds from the Chiadzwa mining fields in an auction held August 10. ACR said that it owns the mining claims located in these fields and reiterated that the Zimbabwe Supreme Court had ruled that no sales of rough production from the mines should take place until the ownership issue was resolved. The stones sold from Chiadzwa were Kimberly Process (KP) certified, but violated the Supreme Court order. ACR wants Mpofu to face High Court action and for the court to throw out the appeal filed by Mpofu over Chiadzwa’s legal ownership.

Rockwell Produces Five Large Diamonds

Rockwell Diamonds recovered five large gemstones from its Holpan, Klipdam and Saxendrift operations in South Africa, bringing its total recoveries of rough diamonds of more than 50 carats to 11 for its current 2011 fiscal year. A 136-carat, clean white, H to I, broken octahedral stone was found in Holpan; a 69.26-carat, pinkish stone with a brown overtone and blocky shape was found at Klipdam; and 58-carat, 82-carat and 104-carat stones were found in Saxendrift. All of these diamonds will be sold through the company’s agreement with Steinmetz Diamond Group.

Firestone to Hold a Tender in 4Q10

Firestone Diamonds completed the commissioning of its diamond sorting facility at the Diamond Technology Park in Gaborone. Diamond concentrate from BK11 and other projects will now be shipped to the facility for sorting, acidisation and preparation for sale. Firestone will hold its first tender at the facility in fourth quarter. Initial diamond recoveries at BK11 included a large, high quality 13.74-carat diamond with a value estimated at $5,000 per carat.

ECONWATCH

For the week ending Sept. 2, 2010:

Sept. 2 Aug. 26 Chng.
$1 = Euro 0.780 0.786 -0.006
$1 = Rupee 46.64 46.82 -0.2
$1 = Israel Shekel 3.79 3.82 -0.03
$1 = Rand 7.23 7.33 -0.10
$1 = Canadian Dollar 1.05 1.06 -0.01

Precious Metals
Gold $1,251.10 $1,237.50 $13.60
Platinum $1,546.00 $1,529.00 $17.00

Stock Indexes Chng.
BSE 18,238.31 18,226.35 11.96 0.1%
Dow Jones 10,320.10 9,985.58 334.52 3.4%
FTSE 5,371.04 5,155.84 215.20 4.2%
Hang Seng 20,868.92 20,612.06 256.86 1.2%
S&P 500 1,090.10 1,047.23 42.87 4.1%
Yahoo! Jewelry 822.68 827.86 -5.18 -0.6%

USA
Birks & Mayors $1.10 $1.10 $0.00 0.0%
Blue Nile $42.73 $42.07 $0.66 1.6%
Charles & Colvard $2.28 $2.40 -$0.12 -5.0%
DGSE Companies $2.51 $2.54 -$0.03 -1.2%
Fuqi Intl. $6.74 $6.36 $0.38 6.0%
JCPenney $21.41 $20.43 $0.98 4.8%
Kohls $49.31 $47.15 $2.16 4.6%
LJ Intl. $3.39 $3.10 $0.29 9.4%
Macys $20.71 $19.29 $1.42 7.4%
Man Sang $2.29 $2.23 $0.06 2.7%
Movado Group $10.24 $10.19 $0.05 0.5%
Nordstrom $32.76 $30.28 $2.48 8.2%
Saks $8.22 $6.99 $1.23 17.6%
Signet $28.10 $28.58 -$0.48 -1.7%
Sothebys $29.21 $28.50 $0.71 2.5%
Tiffany $42.05 $42.26 -$0.21 -0.5%
Walmart $51.76 $51.11 $0.65 1.3%
Zale $1.66 $1.51 $0.15 9.9%

EUROPE
Bulgari €6.14 €5.78 €0.36 6.2%
Bijou Brigitte €100.60 €104.95 -€4.35 -4.1%
Damiani €0.79 €0.74 €0.05 6.8%
LVMH €96.47 €91.99 €4.48 4.9%
PPR €108.00 €101.25 €6.75 6.7%
Richemont CHF 41.70 CHF 39.38 CHF 2.32 5.9%
Swatch Group CHF 339.90 CHF 326.10 CHF 13.80 4.2%
Theo Fennell (pence) 36.00 36.00 0.00 0.0%

INDIA (rupee)
Classic Diamond 20.70 21.10 -0.40 -1.9%
Gitanjali Gems 205.45 212.90 -7.45 -3.5%
Goldiam Intl. 49.80 52.90 -3.10 -5.9%
Rajesh Exports 92.00 99.35 -7.35 -7.4%
Ren. Jewellery 74.80 74.60 0.20 0.3%
Su-Raj Diamonds 63.40 67.40 -4.00 -5.9%
Titan 2,996.90 2,981.85 15.05 0.5%
Zodiac JRD 27.25 28.30 -1.05 -3.7%
Suashish Diamonds 175.05 179.95 -4.90 -2.7%

NEW ZEALAND
Michael Hill NZD 0.67 NZD 0.69 -NZD 0.02 -2.9%

MINING STOCKS
CANADA
Harry Winston CAD 12.85 CAD 10.90 CAD 1.95 17.9%
Lucara Diamond CAD 0.90 CAD 0.81 CAD 0.09 11.1%
Mountain Province CAD 4.25 CAD 3.69 CAD 0.56 15.2%
Peregrine Diamonds CAD 2.20 CAD 2.00 CAD 0.20 10.0%
Rockwell Diamonds CAD 0.07 CAD 0.07 CAD 0.00 0.0%
Shore Gold CAD 0.63 CAD 0.63 CAD 0.00 0.0%
Stornoway Diamond CAD 0.56 CAD 0.53 CAD 0.03 5.7%
True North Gems CAD 0.09 CAD 0.08 CAD 0.01 12.5%
UK (pence)
African Diamonds 37.15 36.50 0.6 1.8%
Anglo American 2,465.00 2,302.00 163.0 7.1%
BHP Billiton 1,901.00 1,802.50 98.5 5.5%
Firestone Diamonds 26.61 23.13 3.5 15.0%
Gem Diamonds 191.10 199.40 -8.3 -4.2%
Gemfields 4.25 4.44 -0.2 -4.3%
Mwana Africa 8.89 9.01 -0.1 -1.3%
Namakwa Diamonds 41.75 42.31 -0.6 -1.3%
Petra Diamonds 63.00 64.00 -1.0 -1.6%
Rio Tinto plc 3,483.00 3,177.00 306.0 9.6%
Stellar Diamonds 8.51 9.59 -1.1 -11.3%

Kto má čas môže sa zúčastniť.

Invitation from Martin Rapaport

September 13, 2010

Dear Friends,

This year’s Rapaport International Diamond Conference (IDC) will take place on Thursday, October 21st at the Times Center, New York.

The morning session, entitled “Diamond Demand,” will analyze who will be buying what as the U.S. and global economies recover. You will learn about the trends that will define what and why consumers will buy jewelry. The morning session will conclude with an extraordinary multi-media presentation by Roy Williams, chancellor of the Wizard Academy.

The afternoon session, “Human Rights and the Diamond Industry – The Way Forward,” will focus on solutions rather than blame. We will transcend the current level of debate and introduce new ideas and real solutions to real problems. Dr. Michael Conroy, Chairman of TransFair USA and author of Branded – How the ‘certification revolution’ is transforming global corporations, will be presenting as will Dr. Peter Singer, a noted ethicist from Princeton University. Half of the afternoon session will be devoted to a “case study open discussion” using specific examples that highlight ethical and business concerns.

Friends, if you really want to understand where the diamond and jewelry industry is heading, don’t miss this conference.

All revenue from the conference (not just profits) will be donated directly to the Fair Trade Jewelry Association, a 501(c)3 U.S. registered charity. Your registration fee of $249 will be paid directly to the charity. NGO’s and government officials may apply for a fee waiver.

To register visit www.diamonds.net/idc, email idc@diamonds.net or call +1-702-893-9400.
Seating is limited so register now.

Yours truly,

Martin Rapaport
Chairman
Rapaport Group of Companies

This email was sent to djkokavec@orangemail.sk by The Rapaport Group, 133 E Warm Springs Road, Las Vegas, Nevada, 89119. To unsubscribe, please email unsubscribe-announcements@diamonds.net

8) A ty jedeš Grofik ?

:( Nemám volné buboše.😉

Ale môže isť automaticky každý čo je člen RAPAPORTU + pozvaní hostia.

Pár predajcom z Aukra by som vrele odporučil,býva to min. dva krát do roka na jar bola konkláve v EU.

RAPAPORT NEWS SERVICE | SEPT. 17, 2010 www.rapaport.com | news@rapaport.com

Industry Retail & Wholesale EconWatch India Mining

RapUp Sept. 17, 2010

All eyes on Hong Kong show. Visitor traffic falls below expectations with strong price resistance from buyers while sellers hold firm. Gold reaches record high ($1,279/oz). Gem Diamonds, Tiffany agree to 25% price hike on Ellendale fancy yellow rough. Zimbabwe sells 500,000 cts of Marange goods for estimated $13.5m. Rio Tinto invests $803m in Argyle underground development. Court dismisses Tiffany false advertising claim against eBay. U.S. July polished imports +35% to $1.65b. Belgium’s Aug. polished exports +25% to $354m, rough imports +52% to $782m. Israel’s Aug. polished exports +88% to $340m. THE RAPAPORT PRICE LIST WILL NOT BE PUBLISHED NEXT WEEK SEPT. 23 and offices will be closed Sept. 23-24 and Sept. 30-Oct 1.

RapNet Data: Sept. 16

Diamonds 769,227

Value $4,689,156,610

Carats 835,552

Average Discount -31.11%

Get Current Price List | Subscribe to Rapaport | Join RapNet

ANNOUNCEMENTS

October
7-10
Thu-Sun
Rapaport at Dubai Intl Jewellery Week
Hall 5, Stand 505
Dubai World Trade Center
For information contact Pooja Kotwani:
+91-22-6628-2700 or email pooja.kotwani@diamonds.net

October
11-15
Mon-Fri

Rapaport Melee Auction - New York

Over 40,000 carats of diamonds in all shapes, sizes and qualities. Excellent buying opportunity for wholesalers and manufacturers.

To participate please contact:

+1-212-354-9100
auctions@rapaport.com

October
21
Thu
Rapaport Intl Diamond Conference 2010
The Times Center, 242 W. 41st., New York

8:30 a.m. - 5 p.m.
Diamond Demand
Human Rights and the Diamond Industry - The Way Forward

Register now, seating is limited.

QUOTE OF THE WEEK:
We launched Forevermark little more than two years ago with the goal of becoming the world’s leading diamond brand. We wanted to develop a brand that not only defines quality and integrity within the diamond industry but that also inspires leading independent jewelry manufacturers and retailers to create precious and exciting diamond jewelry. We believe that growing into [the vibrant markets of Singapore, Mexico, and the Caribbean bring us closer to realizing that goal.

Stephen Lussier | Forevermark

Careers@Rapaport

The Rapaport Group is growing rapidly. If you want to work with the best and brightest, join us. We have great opportunities for trading managers, gemologists, sales assistants, and entry level positions for our offices in New York, Antwerp, Mumbai, Dubai, and Shanghai. To get on the fast track, email your resume to careers@rapaport.com.

INDUSTRY

Buyers Resist, Sellers Hold Firm in HK

So far, visitor traffic at the Hong Kong Gem & Jewellery fair has missed expectations. Diamond prices were being reported as "stable" but there was strong buyer resistance and sellers were holding firm. Vendors stressed though that business is being conducted -- if the price is right. There were a lot of Indian buyers, and a notable presence of buyers from Bangkok, Taiwan and Singapore. Chinese buyers appeared focused on specific orders, rather than stocking up for National Day Holiday, or Golden Week, which begins on October 1. Demand is strong for Triple-EX goods, and there is good demand for SI’s in all colors. Sizes above 3.00-carats are in demand. For many, this show will end early as Jewish vendors close in order to arrive home in time for Yom Kippur.

Forevermark Reaches New Markets

Forevermark will expand its reach into Singapore, Mexico, and selected islands in the Caribbean. De Beers claims that the brand has experienced $150 million in retail sales during the first 18 months of its launch and is available through 294 doors across Asia. Forevermark retail partners must meet the Forevermark Integrity Requirements and these standards are monitored by Société Générale de Surveillance. In Singapore, Forevermark will be available from Aspial and Lee Hwa stores. Diamonds International will offer Forevermark in the Caribbean and Mexico. Forevermark introduced the brand in India late in 2009 and De Beers is discussing arrangements with selected retailers in order to appoint authorized dealers this year.

Argyle Pink Diamonds Head to China

Rio Tinto brought the Argyle pink diamonds that are up for tender to mainland China. The decision to present the goods for the first time in China was a reflection of the growing appreciation for rare colored diamond in that market. The collection of 55 stones was made available for viewing to a select group of diamantaires, collectors and connoisseurs. Following its initial previews in Hong Kong and at the Australian pavilion at the Shanghai World Expo, the Argyle Pink Diamonds Tender will be showcased in Shanghai and Beijing in partnership with Chinese retailer, Chow Tai Fook. After China, the pink diamonds will be shipped to New York for viewing before returning to Australia in time for the bid deadline of October 26.

Rapaport Weekly Broadcast

WATCH NOW: An exhibition of jewelry, cameos and artifacts carved from gemstones opened at the Harry Oppenheimer Diamond Museum in Ramat Gan. The exhibition comprises works by master carvers in Idar-Oberstein and reflects the fruitful cooperation between Germany and Israel. The exhibition features jewelry and artifacts reflecting traditions going back hundreds of years, passed down from father to son. This show will be open until the end of December.

RETAIL & WHOLESALE

No Surprises from U.S. Aug. Retail Figures

U.S. chain-store sales rose 2.6 percent this past week compared with one year ago, according to the International Council of Shopping Centers (ICSC) and Goldman Sachs. For the month of August, department store sales fell 1.2 percent to $15.5 billion, signaling continued weakness for the sector, according to government data. The National Retail Federation (NRF) estimated that retail industry sales, which excluded automobiles, gas stations, and restaurants, rose 3 percent during the month. NRF concluded that consumers are spending cautiously and looking for bargains and comparing prices before buying.

Fancy Yellow Rough Prices Increase for Tiffany

Gem Diamonds negotiated a 25 percent price increase for its fancy yellow diamonds that it is contracted to supply Tiffany & Co. The price increase will take effect on October 1. Gem Diamonds has a long term agreement with Laurelton Diamonds, the rough sourcing and polishing subsidiary of Tiffany, to supply the exclusive assortment of fancy yellow stones mined from its Ellendale operation in Australia. Fancy yellow goods sold to Tiffany in the first half of 2010 achieved an average price of $2,588 per carat and that was up from an average price of $2,509 per carat in the first six months of 2009.

Kristall Raises 2010 Forecast

Kristall of Smolensk raised its sales estimates for the year, since they are expecting to receive rough and polished diamonds from ALROSA to boost its stocks. The company expects revenues to range between $325 million to $357 million, up from $220 million to $240 million as previously forecasted.

Movado Sets New Strategy

Movado Group delivered a multi-year strategic plan to investors that capitalizes upon the companys portfolio of brands, particularly Movado, and delivers new products and consumer-centric marketing programs in order to generate sustained sales and profit growth. Movado will capture growth opportunities in China and plans to grow global sales some 10 percent to 13 percent annually through 2014. Sales for fiscal 2014 are expected to range between $520 million and $540 million with gross margin to range between 56 percent and 58 percent. Movado anticipates operating profit to return to approximately a 12 percent contribution by fiscal year 2014.

FUQI Opens Showroom in Shenzhen

FUQI International opened a new 10,000 square foot jewelry showroom in Shenzhen, China. The store offers a larger jewelry product collection than what is typical. FUQI plans further retail expansion in China by "cultivating the FUQI and Temix brands." There are more than 100 FUQI and Temix retail locations already.

Shree Ramkrishna Launches Design Canvas

Shree Ramkrishna Export launched its Design Canvas online application during the Hong Kong show. The virtual tool helps customers sketch diamond jewelry designs to show how custom designs appear when completed. It allows the customer to see how different elements of the design can fit a range of price points.

Court Dismisses Tiffany’s Claim Against eBay

A Manhattan judge dismissed Tiffany’s false advertising claim against auction website eBay for a final time, ruling that the jeweler failed to establish that eBay “intentionally set out to deceive the public.” The luxury retailer sued eBay in 2004 asking the court to hold eBay responsible, as the host environment, for selling counterfeit Tiffany goods. All arguments have since been dismissed.

Michael C. Fina, Tacori Host Diamond Dash

Michael C. Fina and Tacori collaborated once again to present the second annual diamond dash in Manhattan, which is scheduled for September 25. The "Diamond Dash: Dash for a Diamond & a Cure" kicks-off at noon and proceeds generated will support The Leukemia & Lymphoma Society, of which Michael C. Fina is a Mission Sponsor for the New York Chapter. The winning diamond dash team will receive a handcrafted Tacori engagement ring setting, matched with a Tacori Diamond, valued at $20,000, and a five-day honeymoon to the Aventura Spa Palace, in the heart of Riviera Maya in Mexico.

Zale Names Supply Chain Exec.

Zale named John Legg as senior vice president for the supply chain. Legg will be responsible for warehousing, logistics and purchasing. Legg was most recently the managing director for a consulting firm he formed, Management Services International. Legg designed and launched supply chain solutions in support of restructuring, process improvement and inventory management initiatives.

GENERAL

Police Arrest NamGem Manager

NamGem production manager Erez Ben Shushan was arrested in Namibia in connection with $2.6 million worth of missing diamonds. Shushan appeared in Okahandja magistrate court and was released on a $14,000 bail, but he is not permitted to leave the country.

Christie’s to Auction Rare Blue Diamond

Christie’s New York will feature a triangle-shaped diamond ring at its October auction. The Bulgari ring features a 10.95-carat, fancy vivid blue diamond paired with a triangular shaped, 9.87-carat, colorless diamond. It is expected to sell for at least $12 million.

Soros Funds Benefit Human Rights Watch

George Soros’ Open Society Foundations gave a challenge grant of $100 million to Human Rights Watch, the largest funding Soros has ever given to a non-governmental organization. The money will be used to expand the group’s global presence and to more effectively promote and protect human rights. Human Rights Watch has recently been monitoring abuse from the Marange diamond fields.

STATS

Israel Imports & Exports

Figures are rounded Aug. $Mil. Chng. YTD $Mil. Chng.
Polished Exports $340 88% $3,810 76%
Polished Imports NA $1,880
Net Exports NA $1,930

Rough Imports NA $1,820
Rough Exports $222 84% $2,090 87%
Net Imports NA ($270)

Net Diam Acct. NA $2,200

Israel does not provide complete data.

U.S. Imports & Exports

Figures are rounded July $Mil. Chng. YTD $Mil. Chng.
Polished Exports $1,180 36% $7,860 55%
Polished Imports $1,650 35% $10,460 58%
Net Exports $467 34% $2,590 71%

Rough Imports $36 57% $302 95%
Rough Exports $11 22% $161 46%
Net Imports $25 79% $141 200%

Net Diam Acct. $492 36% $2,740 75%

Belgium Imports & Exports

Figures are rounded Aug. $Mil Chng. YTD $Mil Chng.
Polished Imports $678 31% $6,510 30%
Polished Exports $353 25% $6,820 29%
Net Exports ($324) -39% $308 17%

Rough Imports $782 52% $6,360 68%
Rough Exports $555 38% $7,240 69%
Net Imports $223 100% ($877)

Net Diamond Acct. ($551) $1,190 57%

MINING

Gem Diamonds Evolves Letseng Strategy

Gem Diamonds plans a more dynamic sales strategy for its Letseng production which would include holding its own rough tenders and marketing polished goods. Gem Diamonds has been selling rough through an exclusive agreement with WWW International, but this expired this month. Gem will hold its first in-house tender in Antwerp in October. The miner also expects to forge partnerships with manufacturers and/ or retailers which will enable it to sell Letseng polished goods directly to the market in about six months.

Zimbabwe Holds Marange Rough Sale

Zimbabwe sold approximately 500,000 carats of diamonds from the Marange as approved by the Kimberley Process. The sale took place between September 9 and 13 and reportedly involved six buyers —one from Antwerp and others from India and Dubai. The sales value was estimated at about $13.5 million. The government now blocks the press, as best it can, from obtaining information about all Marange rough sales.

Rio Tinto Invests $803M in Argyle Underground

Rio Tinto will invest $803 million in ramping up the Argyle underground mining project. Construction activity at the site will increase in the first half of 2011 in order to have full operations by 2013. The underground project will extend the mine’s life beyond 2019.

Catoca Sales, Profits Slump

Catoca sales and profits fell during 2009 due to the sharp decline in diamond prices caused by the global downturn. The mining company reported that annual profit fell 25 percent and sales dropped 11 percent, despite a 9 percent increase in production. Average price per carat fell 20 percent and the value of diamond inventory fell 42 percent.

ECONWATCH

For the period Sept. 8-16, 2010:

Sept. 16 Sept. 7 Chng.
$1 = Euro 0.760 0.784 -0.024
$1 = Rupee 46.10 46.70 -0.6
$1 = Israel Shekel 3.72 3.79 -0.07
$1 = Rand 7.14 7.27 -0.13
$1 = Canadian Dollar 1.02 1.04 -0.02

Precious Metals
Gold $1,274.60 $1,255.70 $18.90
Platinum $1,608.00 $1,555.00 $53.00

Stock Indexes Chng.
BSE 19,417.49 18,645.06 772.43 4.1%
Dow Jones 10,594.83 10,341.07 253.76 2.5%
FTSE 5,540.14 5,407.82 132.32 2.4%
Hang Seng 21,691.45 21,401.79 289.66 1.4%
S&P 500 1,124.66 1,091.86 32.80 3.0%
Yahoo! Jewelry 863.59 817.03 46.56 5.7%

USA
Birks & Mayors $1.15 $1.10 $0.05 4.5%
Blue Nile $42.76 $41.87 $0.89 2.1%
Charles & Colvard $2.28 $2.28 $0.00 0.0%
DGSE Companies $3.52 $2.52 $1.00 39.7%
Fuqi Intl. $7.02 $6.29 $0.73 11.6%
JCPenney $24.42 $20.86 $3.56 17.1%
Kohls $50.55 $49.16 $1.39 2.8%
LJ Intl. $3.60 $3.42 $0.18 5.3%
Macys $21.70 $20.56 $1.14 5.5%
Man Sang $2.37 $2.22 $0.15 6.8%
Movado Group $10.89 $10.10 $0.79 7.8%
Nordstrom $36.14 $32.67 $3.47 10.6%
Saks $8.68 $7.79 $0.89 11.4%
Signet $29.00 $27.47 $1.53 5.6%
Sothebys $32.09 $29.21 $2.88 9.9%
Tiffany $44.37 $42.16 $2.21 5.2%
Walmart $53.12 $51.99 $1.13 2.2%
Zale $1.81 $1.69 $0.12 7.1%

EUROPE
Bulgari €6.13 €5.98 €0.15 2.5%
Bijou Brigitte €106.30 €104.70 €1.60 1.5%
Damiani €0.81 €0.82 -€0.01 -1.2%
LVMH €101.10 €97.05 €4.05 4.2%
PPR €114.65 €107.20 €7.45 6.9%
Richemont CHF 43.24 CHF 41.86 CHF 1.38 3.3%
Swatch Group CHF 350.20 CHF 337.50 CHF 12.70 3.8%
Theo Fennell (pence) 44.00 36.90 7.10 19.2%

INDIA (rupee)
Classic Diamond 20.95 21.50 -0.55 -2.6%
Gitanjali Gems 206.10 209.85 -3.75 -1.8%
Goldiam Intl. 49.25 49.30 -0.05 -0.1%
Rajesh Exports 102.45 91.95 10.50 11.4%
Ren. Jewellery 72.75 74.10 -1.35 -1.8%
Su-Raj Diamonds 64.50 67.20 -2.70 -4.0%
Titan 3,112.30 3,005.95 106.35 3.5%
Zodiac JRD 27.30 27.85 -0.55 -2.0%
Suashish Diamonds 175.45 175.30 0.15 0.1%

NEW ZEALAND
Michael Hill NZD 0.70 NZD 0.68 NZD 0.02 2.9%

MINING STOCKS
CANADA
Harry Winston CAD 11.96 CAD 12.19 -CAD 0.23 -1.9%
Lucara Diamond CAD 0.90 CAD 0.91 -CAD 0.01 -1.1%
Mountain Province CAD 4.53 CAD 4.00 CAD 0.53 13.3%
Peregrine Diamonds CAD 2.52 CAD 2.25 CAD 0.27 12.0%
Rockwell Diamonds CAD 0.07 CAD 0.07 CAD 0.00 0.0%
Shore Gold CAD 0.69 CAD 0.68 CAD 0.01 1.5%
Stornoway Diamond CAD 0.61 CAD 0.56 CAD 0.05 8.9%
True North Gems CAD 0.09 CAD 0.09 CAD 0.00 0.0%
UK (pence)
African Diamonds 41.00 37.55 3.5 9.2%
Anglo American 2,516.00 2,460.50 55.5 2.3%
BHP Billiton 1,963.50 1,892.50 71.0 3.8%
Firestone Diamonds 26.80 26.00 0.8 3.1%
Gem Diamonds 186.60 196.50 -9.9 -5.0%
Gemfields 3.89 4.25 -0.4 -8.5%
Mwana Africa 11.00 10.75 0.3 2.3%
Namakwa Diamonds 43.00 41.25 1.8 4.2%
Petra Diamonds 73.75 65.00 8.8 13.5%
Rio Tinto plc 3,573.50 3,447.50 126.0 3.7%
Stellar Diamonds 8.50 8.55 -0.1 -0.6%

v

RAPAPORT NEWS SERVICE | OCT. 15, 2010 www.rapaport.com | news@rapaport.com

Industry Retail EconWatch India Mining General Stats

RapUp Oct. 15, 2010

Polished trading centers stable with buyers resisting high asking prices. Indian suppliers refusing offers in anticipation of higher prices before Diwali holiday. China’s Golden Week jewelry sales flat. Gold reaches record ($1,388.30/oz). Surat Rough Diamond Sourcing Ltd hosts Zimbabwe mine minister, requests $100M/month in rough supply. Rio Tinto diamond production +27% to 3.536M cts. De Beers opens store in Singapore, plans 4Q Forevermark retail launch in India. LVMH 3Q watch & jewelry sales +30% to $343M. U.S. Aug. polished imports +50% to $1.3B, polished exports +45% to $1.1B. Belgium Sept. polished exports +21% to $1.3B, rough imports +3% to $637M. India to open Mumbai diamond bourse in Bandra (Oct. 18). Leon Finker, long serving arbitrator of Diamond Dealers Club, passes away at 100.

RapNet Data: Oct. 14

Diamonds 787,515
Value $4,838,086,053
Carats 853,452
Average Discount -31.70%

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ANNOUNCEMENTS

October
11-20
Mon-Wed

Rapaport Melee Auction - New York

Over 60,000 carats of diamonds in all shapes, sizes and qualities. Excellent buying opportunity for wholesalers and manufacturers.
To participate please contact:
+1-212-354-9100
auctions@rapaport.com

October
21
Thu
Rapaport Intl Diamond Conference 2010
The Times Center, 242 W. 41st., New York

Diamond Demand
Human Rights and the Diamond Industry - The Way Forward

Register now, seating is limited.

October
25-28
Mon-Thu

Rapaport Polished Diamond Auction

Single Stone Auction
Certified and non-certified diamonds ranging from 0.30cts to 5.00ct+ in a broad range of shapes and qualities. Excellent buying opportunities for retailers, wholesalers, and diamond manufacturers.

To book an appointment or for more information please contact:
auctions@rapaport.com
Tel: +1-800-488-9108

November
9-15
Tue-Mon
Rapaport Certified Diamond Auction Online

Submit supplier list by Nov. 3
Submit diamonds to Rap office by Nov. 4

QUOTE OF THE WEEK:
We think that there will be manufacturing again here in the U.S. [Consumer want local employment and they understand that perhaps contract labor may cost a bit more here in New York City, but yet if you are employing people the general population is extremely happy about that. I think the ‘The Made in America’ tag and the ‘Repaired in America’ tag has panache today.

Ronnie VanderLinden | Diamex

Careers@Rapaport

The Rapaport Group is growing rapidly. If you want to work with the best and brightest, join us. We have great opportunities for trading managers, gemologists, sales assistants, and entry level positions for our offices in New York, Antwerp, Mumbai, Dubai, and Shanghai. To get on the fast track, email your resume to careers@rapaport.com.

INDUSTRY

Rio Tinto 3Q Diamond Production +27%

Rio Tinto’s third quarter diamond production rose 27 percent to 3.54 million carats. At the company’s own Argyle mine, diamond production rose 7 percent to 2.4 million carats. Rio Tinto’s share of Diavik production increased 115 percent to 1.1 million carats and at Murowa the share of production jumped 147 percent to 42,000 carats. Gold production fell 33 percent to 187,000 ounces and silver output dropped 25 percent to 1.6 million ounces. During the quarter, Rio Tinto approved $803 million for moving operations underground at Argyle, moving the previously stalled project back on track to be operational in 2013 with targeted production of 20 million carats per year

Banks Steer Clear of Marange Goods

ABN Amro and the Antwerp Diamond Bank won’t finance goods from the Marange, even if the stones have KP certificates. The banks must follow U.S. and E.U sanctions against certain parties in Zimbabwe that benefit financially from diamond sales.

Zimbabwe’s mines minister Obert Mpofu however dismissed their decision as not relevant. Meanwhile, industry players in India expressed interest in building diamond trading partnerships with Zimbabwe and will train 1,000 Zimbabwean youngsters to cut and polish diamonds.

Recession Continues for Small Businesses

In their monthly economic report, the National Federation of Independent Business (NFIB) found that the level of optimism in U.S. small business is stuck in “recession territory,” mostly due to lagging sales, taxes, unfriendly government regulations and red tape. The environment for capital spending is not improving either, also due to continuing curbed consumer spending. The Index of Small Business Optimism gained just 0.2 points in September, rising to 89 points. The most recent time this index reached 100 points was in October 2006.

Rapaport Weekly Broadcast

WATCH NOW: Diamex and 580 Fifth partnered to bring New York a cutting and polishing facility that is now operational on 47th Street. The initiative reflects a fundamental shift in the U.S. marketplace that is demanding more "Made in the U.S.A." products and supports highly-skilled manufacturing jobs.

RETAIL

LVMH Watch and Jewelry Revenue +30%

LVMH revenues from its watch and jewelry division rose 30 percent to $343.2 million in the third quarter that closed September 30. Total sales for the third quarter rose 24 percent to $7.12 billion. Same-store sales rose 14 percent. Diamond jewelry and watch sales were particularly strong in Asia and Europe.

De Beers Opens Singapore Boutique

De Beers opened its first diamond boutique in southeast Asia at The Shoppes at Marina Bay Sands in Singapore. The store, like all other De Beers Diamond Jewellery boutiques, is equipped with a De Beers Beauty Scan, which allows the customer to see in detail the brand’s diamonds true superiority and brilliance.

Forevermark to Launch in India in 4Q

De Beers plans to launch Forevermark in India during the fourth quarter of 2010. The first launch will be in Bangalore in December, followed by Mumbai, Delhi, Chennai, Hyderabad and Kolkata. Focusing on the Far East reflects the strong shift in consumer trends for diamond brands. Forevermark first launched in China and Japan in 2008.

Titan Launches Diamantine

Goldplus, from Titan’s TATA jewelry brand, launched its diamond simulant Diamantine in India. Diamantine is created by using Serenity Technology’s proprietary, patent pending and nano-diamond coating technology. The product is GIA and IGI certified, free of Dosha, qualifies for buyback and is set in 18-karat gold jewelry.

Christie’s Geneva Will Hold Auction on Nov. 17

Christie’s Geneva will hold a Legendary Mines, Royal Provenance and Exquisite Jewels Auction on November 17 at the Four Seasons Hotel des Bergues. Fine, period, vintage and signed pieces will be available. Highlights include a 26.17-ct., internally flawless, pear-shaped Golconda diamond, suspended from a diamond briolette chain; two Indian diamond “Sarpechs” and an antique ruby and diamond necklace, circa 1890, set with 18 Burmese rubies, once belonging to a Lady of Title.

Gitanjali to Open 25 New Stores

Gitanjali will be opening 25 stores, including three in Kerala, during this festival season with an Rs 300 crore investment. Leading jewelry brands such as Asmi, D’damas, Diya, Gili, Nakshatra, Maya Gold and Ezee diamonds will be available at the Kerala location.

Ernest Jones Launches Amanda Wakeley Line

U.K. retailer Ernest Jones launched the Amanda Wakeley line with collections featuring four themes: The Statement, Linear Vintage, Skinny Diamonds, the Drop and the Zodiac, all representing a certain mood while remaining fashionable and elegant. The line carries earrings, rings, bangles, bracelets and pendants in varied and unique diamond and sterling silver styles.

Cash America Launches “Gold Promise” to Consumers

Mr. T will be the spokesman for Cash America International’s new mail-in gold and jewelry buying business, “Gold Promise.” The operation launched today and will begin airing TV commercials and print ads next week featuring Mr. T., the 1980s TV actor, best known for his gold chains and bracelets. Gold Promise will buy gold jewelry, as well as diamonds, platinum and fine watches.

GENERAL

Leon Finker Passes Away

Leon Finker passed away this week just months before reaching his 101st birthday. He was an active member of the New York diamond community, a longtime DMIA member and a senior arbitrator for the Diamond Dealers Club.

India’s Kimberley Process Office Moves

India’s Kimberley Process (KP) customs operation will move to the Bandra Kurla Complex on October 18.

Surat Rough Diamond Sourcing (India) Ltd.

Surat Diamond Sourcing (India) Limited (SDSL) will now be called Surat Rough Diamond Sourcing (India) Limited to avoid delays in registering the company name. The original version was too similar to other existing companies.

STATS

U.S. Imports & Exports

Figures are rounded Aug. $Mil. Chng. YTD $Mil. Chng.
Polished Imports $1,336 50% $11,793 57%
Polished Exports $1,129 45% $8,992 53%
Net Exports $207 77% $2,801 72%

Rough Imports $31 107% $333 96%
Rough Exports $19 90% $180 50%
Net Imports $12 140% $153 206%

Net Diam Acct. $219 80% $2,954 76%

Belgium Imports & Exports

Figures are rounded Sept. $Mil Chng. YTD $Mil Chng.
Polished Exports $1,262 21% $8,082 28%
Polished Imports $1,156 42% $7,673 31%
Net Exports $106 -53% $409 -17%

Rough Imports $637 3% $7,001 59%
Rough Exports $838 12% $8,079 61%
Net Imports ($201) 57% ($1,078) 73%

Net Diamond Acct. $307 -13% $1,487 36%

MINING

Namibia’s YTD Diamond Sales +22%

Namibia sold nearly $4.4 million worth of diamonds during the January to August period, a 22 percent increase against the same months in 2009. Nearly 1.1 million carats were mined during the period, an increase of 96 percent. August diamond output rose 29 percent from July and 60 percent from one year ago. Total carats sold in August grew by 221 percent against July and by 78 percent from August 2009.

Stellar Diamond Notes Strong 3Q Production

Stellar Diamonds sold 18,549 carats from its Mandala mine in Guinea for $608,819 or $32.82 per carat in the third quarter. Quarterly production at the mine was significantly higher than the second quarter, with the mine yielding 18,291 carats. Fiscal year-to-date diamond sales from Mandala totaled 51,471 carats for $1.74 million.

Namakwa Recovers Rare 7.53ct Vivid Orange Diamond

Namakwa Diamonds recovered an exceptionally rare 7.53-ct. vivid orange diamond and a 26.74-ct., D type IIa diamond from its mining operations in the North West Providence of South Africa. Both have a flawless potential. The diamonds will be presented for sale during the company’s Johannesburg tender now underway.

ECONWATCH

For the week ending Oct. 14

Oct. 14 Oct. 7 Chng.
$1 = Euro 0.710 0.710 0.000
$1 = Rupee 44.20 44.40 -0.2
$1 = Israel Shekel 3.57 3.58 -0.01
$1 = Rand 6.80 6.89 -0.09
$1 = Canadian Dollar 0.99 1.01 -0.02

Precious Metals
Gold $1,380.50 $1,336.30 $44.20
Platinum $1,711.00 $1,696.00 $15.00

Stock Indexes Chng.
BSE 20,497.64 20,315.32 182.32 0.9%
Dow Jones 11,094.57 10,948.58 145.99 1.3%
FTSE 5,727.21 5,662.13 65.08 1.1%
Hang Seng 23,852.17 22,884.32 967.85 4.2%
S&P 500 1,173.81 1,158.06 15.75 1.4%
Yahoo! Jewelry 963.55 942.38 21.17 2.2%

USA
Birks & Mayors $1.20 $1.14 $0.06 5.3%
Blue Nile $43.97 $42.21 $1.76 4.2%
Charles & Colvard $2.05 $2.08 -$0.03 -1.4%
DGSE Companies $3.90 $4.21 -$0.31 -7.4%
Fuqi Intl. $7.87 $6.35 $1.52 23.9%
JCPenney $33.14 $31.64 $1.50 4.7%
Kohls $52.27 $52.78 -$0.51 -1.0%
LJ Intl. $4.88 $4.30 $0.58 13.5%
Macys $24.03 $23.85 $0.18 0.8%
Man Sang $2.75 $2.65 $0.10 3.8%
Movado Group $11.49 $11.28 $0.21 1.9%
Nordstrom $38.17 $38.47 -$0.30 -0.8%
Saks $9.90 $8.70 $1.20 13.8%
Signet $32.40 $32.70 -$0.30 -0.9%
Sothebys $37.74 $38.30 -$0.56 -1.5%
Tiffany $49.41 $47.79 $1.62 3.4%
Walmart $53.25 $54.37 -$1.12 -2.1%
Zale $2.58 $2.10 $0.48 22.9%

EUROPE
Bulgari €7.28 €6.66 €0.62 9.3%
Bijou Brigitte €110.30 €105.81 €4.49 4.2%
Damiani €0.89 €0.88 €0.01 1.1%
LVMH €111.45 €110.00 €1.45 1.3%
PPR €118.45 €114.50 €3.95 3.4%
Richemont CHF 48.11 CHF 46.64 CHF 1.47 3.2%
Swatch Group CHF 368.00 CHF 363.90 CHF 4.10 1.1%
Theo Fennell (pence) 44.00 44.30 -0.30 -0.7%

INDIA (rupee)
Classic Diamond 21.10 21.25 -0.15 -0.7%
Gitanjali Gems 243.80 232.45 11.35 4.9%
Goldiam Intl. 50.40 47.95 2.45 5.1%
Rajesh Exports 112.35 105.50 6.85 6.5%
Ren. Jewellery 77.30 76.20 1.10 1.4%
Su-Raj Diamonds 63.75 62.85 0.90 1.4%
Titan 3,311.00 3,363.10 -52.10 -1.5%
Zodiac JRD 31.30 31.60 -0.30 -0.9%
Suashish Diamonds 168.40 170.85 -2.45 -1.4%

NEW ZEALAND
Michael Hill NZD 0.71 NZD 0.71 NZD 0.00 0.0%

MINING STOCKS
CANADA
Harry Winston CAD 13.05 CAD 12.23 CAD 0.82 6.7%
Lucara Diamond CAD 0.90 CAD 0.89 CAD 0.01 1.1%
Mountain Province CAD 4.48 CAD 4.50 -CAD 0.02 -0.4%
Peregrine Diamonds CAD 2.30 CAD 2.39 -CAD 0.09 -3.8%
Rockwell Diamonds CAD 0.07 CAD 0.07 CAD 0.00 0.0%
Shore Gold CAD 0.72 CAD 0.71 CAD 0.01 1.4%
Stornoway Diamond CAD 0.62 CAD 0.64 -CAD 0.02 -3.1%
True North Gems CAD 0.11 CAD 0.09 CAD 0.02 22.2%
UK (pence)
African Diamonds 37.65 37.65 0.0 0.0%
Anglo American 2,863.50 2,664.50 199.0 7.5%
BHP Billiton 2,215.00 2,122.50 92.5 4.4%
Firestone Diamonds 24.55 25.39 -0.8 -3.3%
Gem Diamonds 197.00 197.50 -0.5 -0.3%
Gemfields 9.76 11.24 -1.5 -13.2%
Mwana Africa 11.55 13.85 -2.3 -16.6%
Namakwa Diamonds 43.00 41.00 2.0 4.9%
Petra Diamonds 90.00 82.50 7.5 9.1%
Rio Tinto plc 4,100.00 3,889.40 210.6 5.4%
Stellar Diamonds 6.50 6.90 -0.4 -5.8%

INDIA MARKET REPORT

Polished and rough trading activity

POLISHED: Better demand as overseas buyers and locals are present ahead of Indias festive season (Diwali). While there is slight improvement compared with previous weeks, activity remains slow due to weaker dollar and high asking prices.

Kto má voľné chechtáky môže sa zúčastniť.

Dear Rapaport Subscriber,

I am reaching out to you directly to invite you to participate in the new and exciting Rapaport Certified Diamond Auction that will take place on the Internet. This unique online global auction provides an opportunity for buyers from all over the world to source polished diamonds directly from the major diamond cutting centers. The auction will provide direct access to GIA graded, Excellent to Triple Very Good, Round, 0.50-10.00 carat, D-K, IF-VS2 diamonds.

Bidding will take place on the Internet via specially designed live bid screens on our www.rapaport.com/auctions website. There will be full disclosure of reserve prices and transparent online bidding. Rapaport will guarantee the authenticity of the GIA reports, as well as payment to suppliers and delivery of diamonds. Suppliers will pay a 3% commission and there will not be any commission fee for buyers that are members of the jewelry trade.

The Auction will open on Tuesday, November 9, 2010 at 9.00am-Mumbai time.

The Auction will close on Monday, November 15, 2010 at 5.00pm- New York time.

To participate in the Rapaport Certified Diamond Auction register now at www.rapaport.com/auctions. Your personal Rapaport representative will be in touch with you shortly after your registration is completed and help you learn all about the auction procedures and establish credit so that you can bid at the auction. For additional information please email auctions@rapaport.com or contact your local Auction Support Team.

The new Rapaport online auction will create unprecedented opportunity for the international trading of diamonds at fair market prices in a secure and transparent environment. I strongly encourage you to take advantage of this opportunity and look forward to welcoming you to our auction client list.

Yours truly,

Martin Rapaport
Chairman – Rapaport Group of Companies

Rapaport Auction Support:
auctions@rapaport.com

New York
+1-212-354-9100
auctions-ny@rapaport.com

Las Vegas
+1-702-893-9400
auctions-lv@rapaport.com

Mumbai
+91-22-6627-2600
auctions-mumbai@rapaport.com

Surat
+91-261-254-9583
auctions-surat@rapaport.com

Ramat Gan
+972-3-613-3330
auctions-il@rapaport.com

Antwerp
+32-3-232-3300
auctions-antwerp@rapaport.com

Hong Kong
+852-9222-7001
auctions-hk@rapaport.com

Shanghai
+86-21-6160-2380
auctions-china@rapaport.com

This email was sent to djkokavec@orangemail.sk . If you would prefer not to receive future announcements - please contact us at unsubscribe-announcements@diamonds.net This email was sent to you by the Rapaport Group, 133 E. Warm Springs Road, Las Vegas, NV 89119