RAPAPORT NEWS SERVICE | FEB. 18, 2011 www.rapaport.com | news@rapaport.com

Industry Retail & Wholesale EconWatch India Stats General

Rapaport Weekly Market Comment Feb. 18, 2011  

Polished prices firm as dealers prepare for Hong Kong show. Strong rough demand with price increase expected at next week’s DTC sight. De Beers 2010 sales +53% to $5.9b with DTC prices +27%, net earnings of $546m vs. loss of $743m, production +34% to 33m cts. BHP Billiton 1H11 diamond sales +11% to $427m, and sells 78ct. Ekati Spirit for $6.1m. Gitanjali Group 3Q sales +46% to $584m, net profit +64% to $22m. Sotheby’s 2010 jewelry sales +213% to $405m. U.S. 2010 polished imports +45% to $18b, polished exports +42% to $13.8b. Israel’s Jan. polished exports +9% to $618m. Zimbabwe Jan/Feb Marange sales reach $174m, Treasury says $112m in proceeds missing.

RapNet Data: Feb. 17

Diamonds 696,299
Value $4,622,737,734
Carats 794,436
Average Discount -29.96%

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RAPAPORT ANNOUNCEMENTS

February
25-28
Fri-Mon
Rapaport at Inhorgenta Europe
Booth: Hall C1, 401

Feb-Mar
27-1
Sun-Tue
Rapaport at JA New York
Booth: 1200

March
2-7
Wed-Mon

Rapaport Hong Kong Diamond Auction
Melee, Single Stone and Certified Diamonds
For details and to register: rapaportauctions.com

March
4-8
Fri-Tue
Rapaport at Hong Kong Show
Booth: Hall 3G-B42
Auction: 2/F Exclusive Showroom Diamonds S221
RapNet Presentation: by Saville Stern, COO,
Mar. 4, 11:30 a.m. - 12:30 p.m. Meeting Room N206-8

QUOTE OF THE WEEK:
We have received [confirmation] from Zimbabwe Mining Development Corp. showing that we have received $174 million, and that shows a discrepancy from our figures. As a result... I have since instructed the accountant general and the commissioner general of the Zimbabwe Revenue Authority to verify figures of the diamond proceeds received so far. In addition, I have instructed the comptroller and auditor general to audit the books of the relevant parastatals involved in the sale of diamonds.

Tendai Biti | Zimbabwe Finance Minister

Careers@Rapaport

The Rapaport Group is growing rapidly. If you wish 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 Sales +53% to $6B

De Beers reported that fiscal year 2010 sales increased 53 percent to $5.88 billion due to easy comparisons, higher rough prices and renewed demand for diamonds. Net earnings for the year grew to $546 million, compared with a net loss of $743 million in 2009. Sales of rough diamonds through the Diamond Trading Company (DTC) rose 57 percent to $5.08 billion with the average price of DTC goods up 27 percent through the year. The company generated additional revenue from its Diamdel unit, which sells rough to the secondary market, its De Beers Diamond Jewellery retail partnership, and its Element 6 industrial diamond business. Read the full report.

Zim Rough Sales Hit $174M

Rough diamond sales in Zimbabwe during January and February have totaled more than $174 million, according to the state-run Herald. However, finance minister Tendai Biti said $100 million of the funds were missing from the Treasury and he ordered an audit.

WFDB Warns of Conflict Diamond Risk

The World Federation of Diamond Bourses (WFDB) asked member bourses to be aware of possible conflict diamonds from Cote d’Ivoire following a letter from Kimberley Process (KP) chairman Mathieu Yamba. The ongoing unrest in Cote d’Ivoire is of great humanitarian concern of course, but additionally, Yamba cited U.N. reports stating that rough diamonds were being mined in Cote d’Ivoire and then exported to neighboring countries, despite the diamond ban, where those goods would then be processed with KP certificates. Cote d’Ivoire’s former President Laurent Gbagbo has refused to concede defeat against President-elect Alassane Ouattara.

U.S. Jewelry CPI Hits New Record

The U.S. consumer price index (CPI) for jewelry hit a new high in January at 170.9 points. The measure jumped 8.7 percent from one year ago. The January reading marked the 36th consecutive month for which the jewelry CPI registered more than 150 points.

Rapaport Weekly Broadcast

WATCH NOW: MasterCard Advisors’ SpendingPulse, reported that total retail sales in the U.S., during January rose 5.5 percent, but jewelry sales were weak. Gitanjali Group’s third quarter revenue increased 46 percent and profits jumped 62 percent. BHP Billiton’s first half diamond revenues grew 11 percent to $427 million, and just this week BHP sold its Ekati Spirit, a 78-carat diamond, in Antwerp for $6.1 million. In other mining news, Trans Hex tendered $19.8 million in rough while Namakwa Diamonds sold $6 million in goods this month. Lucara Diamond Corp. raised new capital towards its AK6 project funding efforts.

RETAIL & WHOLESALE

U.S Jan. Department Store Sales Fall Flat

U.S. department store sales were flat in January at $15.5 billion. However, the government reported that total retail sales rose 7.8 percent to $381.6 billion. Retail trade sales rose 8.3 percent. The National Retail Federation (NRF) calculated an increase of 3.5 percent for retail industry sales, excluding automobiles, gas stations, and restaurants.

Indian Firms Report 3Q Sales

A number of public Indian jewelers reported their third quarter results this week:
Asian Star reported that group sales rose 8 percent to $81.8 million. Sales of cut and polished diamonds fell 3 percent to $69.9 million while jewelry sales nearly tripled to $15 million. Intersegment sales grew 51 percent to $3.4 million. Group profits rose 5 percent to $1.6 million.
Suashish Diamonds reported that net sales declined 5 percent year on year to $66 million. Net profit for the period fell 39 percent to $2.3 million.
Goldiam International sales rose 47 percent to about $157 million. Net profit fell 12 percent to $11 million
Suraj Diamonds & Jewellery Limited reported that group sales rose 34 percent to $216.1 million. Sales from the diamonds segment grew 1 percent to $40.1 million while jewelry sales rose 45 percent to $176.2 million. Group profits more than doubled to $6.6 million.
Classic Diamonds reported that group sales fell 22 percent to $28.6 million. Sales of cut and polished diamonds fell 35 percent to $14.5 million, while jewelry sales decreased 1 percent to $14 million. Group profits fell 75 percent to $176,171.

Fossil 4Q Sales +33%, FY10 Sales +31%

Fossil reported that fourth quarter revenue rose 33 percent to $701 million and cost of sales jumped 31 percent to $301 million, for the period that ended January 1. Net profit rose 39 percent to $96.7 million. Fiscal year sales grew 31 percent to $2 billion and profits soared 83 percent to $255 million.

Rokstok Creates Men’s Jewelry Collection

Jewelry designer Andrew Moquin created a new men’s collection for Rokstok.com, named "Bound" and features wedding rings in tribal flames, barbed wire, and tribal Celtic patterns, among others. The rings are made of white or yellow god, platinum, palladium and can be two-tone.

Jewelers Launch Fairtrade and Fairmined Gold

A number of jewelers were licensed this week in London to offer Fairtrade and Fairmined gold products including big names such as Garrard, CRED, Fifi Bijoux, Ingle & Rhode, and Harriet Kelsall of the U.K. Additionally, Fair Trade Jewellery Company (FTJCo) of Toronto was one of the first authorized in North America for Fairtrade gold. Collections and individual pieces will become available, all of which will be hallmarked with the FAIRTRADE Mark and Fairmined Mark, a stamp of reassurance that the miners are getting a better deal on their metal.

Queen Renews ‘Royal’ Title to the Asscher

The Asscher family was again awarded the ‘’Royal’’ title by Her Majesty the Queen of The Netherlands in Amsterdam. The title was first granted in 1980 and is now extended another 25 years in acknowledgement of the Asschers leadership across the diamond industry. To mark the occasion, Royal Asscher will release a special edition Stars of Africa ring with orange diamonds on April 30, 2011, on the former Queen’s birthday.

Sotheby’s Jewelry Auctions Achieve $405M

Jewelry auctions at Sotheby’s in 2010 achieved total sales of $405 million —marking the highest annual total ever for jewelry sales — and representing a 213 percent increase from the figure in 2009. Important fall auctions in New York, Geneva, Hong Kong and London also broke records for large diamonds, jadeite and jewelry.

GENERAL

NY Diamond Dealers Club Election Results

Moshe Mosbacher was elected full-term president of the New York Diamond Dealers Club February 15. Mosbacher (pictured) won by an overwhelming margin of two-thirds of the vote and has been club president since the death of Jacob Banda. Additionally, Basant Johari was elected vice president, Reuven Kaufman was voted as secretary, and Jacob Zupnick was elected treasurer.

Those elected to serve on the board of directors included, Solomon Cohen, Gary Dimenstein, Abraham Einhorn, Meilech Fastag, Jack Friedman, Dov Fruchter, Michael Gross, Roy Herzl, Isaac Jacob, Joseph Khafi, Philip Klein, Moshe Lax, Efraim Reiss, Benny Simkhai, Jacob Weinstock and Moshe Zwiebel. Shraga Gancz and Avi Simkhai were elected to the Diamond Dealers Clubs control committee.

Seminar Helps Master the Export Process

The New York Diamond Dealers Club hosted a seminar for jewelers that addressed efficient, legal and safe ways in which to export jewelry and stones. The U.S. Department of Commerce and the U.S. Embassy discussed ways in which they support global trade and industry experts talked about cost effective ways to ship merchandise, general import and export regulations, and tips for efficiently exporting goods.

View the following resources for more information:
www.census.gov
www.buyusa.gov/nyc

STATS

U.S. Imports & Exports

For December 2010

Figures are rounded Dec. $Mil. %Chng. YTD $Mil. %Chng.
Polished imports $1,450 22% $18,060 45%
Polished exports $1,150 24% $13,760 42%
Net polished $299 17% $4,300 57%

Rough imports $63 70% $524 81%
Rough exports $54 -21% $341 44%
Net rough $9 $183 245%

Net diamond acct. $308 37% $4,480 60%

Israel Imports & Exports

Israel does not release complete diamond imports and exports.

Figures are rounded Jan. $Mil. %Chng.
Polished exports $618 9%
Polished imports NA
Net polished NA

Rough imports NA
Rough exports $381 25%
Net rough NA

Net diamond acct. $257 -23%

Namibia 2010 Figures

$Mil. %Chng. Cts. %Chng.
Carat sold $766 32% 1.522M 12%
Carat production 1.467M 57%
Earnings from sales $246

ECONWATCH

For the week ending Feb. 17

Feb. 17 Feb. 9 Chng.
$1 = Euro 0.738 0.733 0.005
$1 = Rupee 45.27 45.64 -0.4
$1 = Israel Shekel 3.62 3.67 -0.05
$1 = Rand 7.17 7.26 -0.09
$1 = Canadian Dollar 0.98 1.00 -0.02

Precious Metals
Gold $1,383.60 $1,363.40 $20.20
Platinum $1,844.00 $1,826.00 $18.00

Stock Indexes Chng.
BSE 18,506.82 17,463.04 1,043.78 6.0%
Dow Jones 12,318.14 12,229.29 88.85 0.7%
FTSE 6,087.38 6,020.01 67.37 1.1%
Hang Seng 23,301.84 22,708.62 593.22 2.6%
S&P 500 1,340.43 1,321.87 18.56 1.4%
Yahoo! Jewelry 1,035.65 1,041.29 -5.64 -0.5%

USA
Birks & Mayors $1.34 $1.31 $0.03 2.3%
Blue Nile $55.03 $63.66 -$8.63 -13.6%
Charles & Colvard $3.85 $3.63 $0.22 6.1%
DGSE Companies $4.23 $4.45 -$0.22 -4.9%
Fuqi Intl. $4.62 $5.10 -$0.48 -9.4%
JCPenney $36.94 $36.00 $0.94 2.6%
Kohls $53.54 $53.00 $0.54 1.0%
LJ Intl. $4.15 $3.51 $0.64 18.2%
Macys $24.06 $24.22 -$0.16 -0.7%
Man Sang $4.49 $4.22 $0.27 6.4%
Movado Group $14.69 $14.71 -$0.02 -0.1%
Nordstrom $46.48 $45.57 $0.91 2.0%
Saks $12.97 $11.99 $0.98 8.2%
Signet $44.83 $44.06 $0.77 1.7%
Sothebys $47.90 $44.37 $3.53 8.0%
Tiffany $63.86 $63.40 $0.46 0.7%
Walmart $54.75 $55.59 -$0.84 -1.5%
Zale $4.42 $4.61 -$0.19 -4.1%

EUROPE
Bulgari €7.71 €7.71 €0.00 0.0%
Bijou Brigitte €102.30 €101.84 €0.46 0.5%
Damiani €1.03 €1.05 -€0.02 -1.9%
LVMH €117.45 €118.85 -€1.40 -1.2%
PPR €115.85 €118.25 -€2.40 -2.0%
Richemont CHF 55.15 CHF 55.25 -CHF 0.10 -0.2%
Swatch Group CHF 410.20 CHF 413.00 -CHF 2.80 -0.7%
Theo Fennell (pence) 44.50 46.00 -1.50 -3.3%

INDIA (rupee)
Asian Star 1,082.00 1,084.35 -2.35 -0.2%
Classic Diamond 13.39 11.10 2.29 20.6%
C.Mahendra 184.00 163.00 21.00 12.9%
Gitanjali Gems 241.95 189.80 52.15 27.5%
Goenka Diamond 63.15 57.65 5.50 9.5%
Goldiam Intl. 35.00 31.35 3.65 11.6%
Rajesh Exports 138.85 130.50 8.35 6.4%
Ren. Jewellery 76.40 66.85 9.55 14.3%
Shantivijay Jewels 82.90 90.05 -7.15 -7.9%
Suashish Diamonds 147.60 140.25 7.35 5.2%
Su-Raj Diamonds 51.65 40.35 11.30 28.0%
Titan 3,294.30 3,093.40 200.90 6.5%
Vaibhav Gems 23.20 20.05 3.15 15.7%

NEW ZEALAND
Michael Hill NZD 0.89 NZD 0.89 NZD 0.00 0.0%

MINING STOCKS
CANADA
Harry Winston CAD 11.91 CAD 11.72 CAD 0.19 1.6%
Lucara Diamond CAD 1.20 CAD 1.16 CAD 0.04 3.4%
Mountain Province CAD 5.90 CAD 5.90 CAD 0.00 0.0%
Peregrine Diamonds CAD 2.53 CAD 2.37 CAD 0.16 6.8%
Rockwell Diamonds CAD 0.06 CAD 0.05 CAD 0.01 20.0%
Shore Gold CAD 0.80 CAD 0.82 -CAD 0.02 -2.4%
Stornoway Diamond CAD 0.58 CAD 0.61 -CAD 0.03 -4.9%
True North Gems CAD 0.13 CAD 0.13 CAD 0.00 0.0%
UK (pence)
Anglo American 3,304.12 3,308.50 -4.4 -0.1%
BHP Billiton 2,444.50 2,484.00 -39.5 -1.6%
Firestone Diamonds 35.33 35.00 0.3 0.9%
Gem Diamonds 299.00 283.00 16.0 5.7%
Gemfields 15.00 15.20 -0.2 -1.3%
Mwana Africa 11.00 11.44 -0.4 -3.8%
Namakwa Diamonds 62.00 62.00 0.0 0.0%
Petra Diamonds 175.00 175.00 0.0 0.0%
Rio Tinto plc 4,498.50 4,549.00 -50.5 -1.1%
Stellar Diamonds 10.00 10.30 -0.3 -2.9%

Rapaport Weekly Market Comment Mar. 4, 2011

High expectations for Hong Kong show as Far East demand continues to grow. Rough is tough and gold is bold ($1,441/oz.) as commodity prices reflect increasing Mid-East uncertainty. MasterCard Advisors’ SpendingPulse reports slower U.S. retail growth in Feb. but online jewelry sales +7%. Michael Hill FY1H revenues +10% to $202M, profit +7% to $18M. Belgium’s Feb polished exports +51% to $1.3B, rough exports +26% to $1.1B. Hong Kong’s 4Q polished imports +31% to $3.5B, polished exports +33% to $2.7B. Japan’s Jan. polished imports +44% to $72M. Nicky Oppenheimer to retire from Anglo American board.

RapNet Data: Mar. 3

Diamonds 721,102
Value $4,743,863,202
Carats 813,716
Average Discount -29.02%

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RAPAPORT ANNOUNCEMENTS

March
2-7
Wed-Mon

Rapaport Hong Kong Diamond Auction
Melee, Single Stone and Certified Diamonds
For details and to register: rapaportauctions.com

March
4-8
Fri-Tue
Rapaport at Hong Kong Show
Booth: Hall 3G-B42
Auction: 2/F Exclusive Showroom Diamonds S221
Presentation by Saville Stern, RapNet COO
Mar. 4, 11:30 a.m. - 12:30 p.m. Meeting Room N206-8

QUOTE OF THE WEEK:
We were all exceedingly gratified by the ilver jewelry sale data that so strongly affirmed what we already knew on an anecdotal basis. What was somewhat of a surprise was not just silver’s absolute growth and performance ratings, but that in all major categories the 2010 results exceeded the corresponding record numbers from 2009.

Michael Barlerin | Silver Institute’s Silver Promotion Service

Careers@Rapaport

The Rapaport Group is growing rapidly. If you wish 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

RapNet Polished Prices +3.4% in Feb.

The RapNet average asking prices increased 3.4 percent in February with 0.5-carat stones up 2.5 percent, while average 1-carat diamonds rose 4.2 percent and average prices for 3-carat stones jumped 4.5 percent. Prices of small, inexpensive diamonds at Rapaport Auctions continued to strengthen during the month. During the first two months of 2011, average prices rose by 4.7 percent, but watch this, at the end of February prices jumped 11.3 percent higher than they were one year ago. Read the full report.

DTC to Launch New Sightholder Process

The Diamond Trading Company (DTC) will host two webinars on March 8 from London to support companies considering registering to become a sightholder for the next Supplier of Choice contract period. The sessions are open to all at www.newsightholdercontract.com.

Rapaport Weekly Broadcast

WATCH NOW At the JA Winter Show in New York, show director Drew Lawsky explained that the event worked well as an incubator for dozens of new designers and small firms exhibiting for their first time. Aside from that, Atelier Minyon debuted their new Goth bridal collection along with diamond and gemstone fairy wings and mermaids (pictured); Saundra Messinger has been increasing her use of big diamonds lately with her silver jewelry collection; Gurhan debuted their latest collection of one-of-a-kind, artifact cameos that feature vintage style angel carvings. Additional coverage includes MasterCard Advisors SpendingPulse’s observation on February retail sales.

RETAIL & WHOLESALE

U.S. Retailers Report February Sales

U.S. chain-store sales rose 4.2 percent year on year in February, according to the International Council of Shopping Centers (ICSC), mostly due to more retailers and retail segments reporting strong sales improvements.

Major U.S. retailers also reported February sales today. Saks, Neiman Marcus, JCPenney and Nordstrom noted strong fine jewelry sales for the month.

Nordstrom’s sales increased 12 percent to $606 million, while same-store sales rose 7.3 percent.
Neiman Marcus’ sales and same-store sales grew 13 percent to $282 million.
Saks’ sales jumped 14 percent to $196.2 million and same-store sales grew 15 percent.
Macy’s sales increased 5.9 percent to $1.8 billion, while same-store sales rose 5.8 percent.
JCPenney’s sales grew just 2.7 percent to $1.2 billion and same-store sales increased 6.4 percent. The retailer also reported fiscal year 2010 figures this week, showing revenue rose 1.2 percent to $7.56 billion and same- store sales increased 2.5 percent. Profit jumped 55 percent to $389 million.
Kohl’s sales jumped 7.1 percent to $1.2 billion and same-store sales rose 5 percent.
Target’s sales rose 2.4 percent to $4.7 billion, while same-store sales grew 1.8 percent.
BJ Wholesale’s sales grew 9.3 percent to $814.1 billion and same-store sales increased 3.9 percent.
Costco’s sales jumped 14 percent to $6.4 billion and same-store sales rose 4 percent.

U.S. Silver Jewelry Sales Rise

The Silver Institute’s Silver Promotion Service found that 87 percent of U.S. jewelry retailers said their silver jewelry sales increased in 2010 with 52 percent saying silver jewelry sales increased between 11 percent and 25 percent while 28 percent experienced sales increase of more than 25 percent. Overall, silver jewelry sales rose by an average of 23 percent. Retailers rated categories in order of their "best" maintained margin with silver jewelry offering the highest margin at 57 percent followed by diamond jewelry at 20 percent and bridal jewelry at 15 percent.

Sothebys Reports FY10 Results

Sotheby’s reported that total revenue for fiscal year 2010 soared 60 percent to $774.3 million. Sotheby’s profit for 2010 was at $161 million compared with a loss of $6.5 million one year ago. Sothebys consolidated sales were $2 billion and as previously reported, the companys jewelry sales totaled a record-high $405 million in 2010.

Michael Hill Intl 1H Profits and Revenue Rise

Michael Hill International reported that first fiscal half profits rose 7.2 percent to $18 million compared with one year ago. Revenue for the fiscal half, which ended December 31, rose 9.9 percent to $202 million. In Canada, same-store sales rose 15.1 percent while revenue jumped 23.5 percent. Revenue from Australia rose 6.1 percent, while same-store sales rose 5.7 percent. In New Zealand, same-store sales rose 6.2 percent and sales increased 7.1 percent. However, in the U.S. operations recorded a loss of $2.1 million and revenue was $4.2 million.

Berkshire Hathaways 2010 Retail Sales +2%

Berkshire Hathaway — whose retail division includes Borsheims, Helzberg Diamond and Ben Bridge among other top non-jewelry brands— reported that revenues from all retail operations rose 2 percent year on year to $2.9 billion in 2010.

Christie’s to Auction 10.09ct. Pink

Christie’s will offer a 10.09-carat, cushion cut, fancy vivid purplish pink diamond at its Magnificent Jewels Auction coming up in New York on April 12. The diamond carries a presale estimate of $12 million to $15 million. In the past 15 months, four of these most desirable pink jewels have achieved more than $1 million per carat at auction.

James Allen Releases iPhone and iPad App

James Allen launched a new iPhone and iPad application — the James Allen Diamond App — that enables users to view more than 20,000 diamond photos using the custom-built Virtual Loupe feature. The tool lets users inspect each stone up close as well as laboratory reports and price comparisons. The App also lets shoppers view more than 1,000 engagement rings in high-definition and instantly connects them to a store to speak with customer service or make a direct purchase.

Lili Diamonds Launches Space Branding Campaign

Lili Diamonds launched its new branding strategy focusing strongly on online publicity by incorporating a “space” theme which encompasses its new website and company logo, print magazine advertisements, corporate video and catalogue production, as well as its new Meteor® Cut diamond design. The company’s other designs include the Crisscut®, Crisscut® Cushion, Wondercut®, among others.

Surya Capital Buys Robbins Diamonds Inventory

Surya Capital, along with Buxbaum Jewelry Advisors, purchased the inventory of Philadelphia jeweler Robbins Diamonds’ former flagship store at a sealed bid auction. The inventory of loose diamonds and diamond jewelry is valued at about $1.6 million at cost.

Whiteflash Achieves ISO 9001:2008 Certification

Diamond retailer Whiteflash was awarded certification for the ISO 9001:2008 Quality Management System by SGS. The retailer met continuing requirements of ISO 9001 by demonstrating a systemic process to continually improve products and services for the ultimate benefit of their customers and trading partners.

GENERAL

West Coast Jeweler Clifford Newton Farrar Jr. Dies

West Coast jeweler Clifford Newton Farrar Jr. passed away on February 28 and was 88 years old. Farrar’s jewelry career began in 1947 when he joined Wurm’s Jewelry in California as a watchmaker. He eventually became a gemologist/appraiser and owned multiple jewelry stores. He also held the role of president for numerous industry organizations including the Pacific Jewelry Show, the Southern California Chapter of the AGS, and the California Jewelers Association.

Tiffany Appoints Cumenal as Executive Vice President

Tiffany & Co appointed Frederic Cumenal, 51, as its executive vice president effective March 10, 2011. He will head Tiffany’s businesses in Asia, Japan, Europe and emerging markets and will report to the companys chairman, Michael Kowalski. Cumenal previously held the position of president of the LVMH group and chief executive of Moët & Chandon S.A.

Oppenheimer to Retire from Anglos Board

De Beers Group chairman Nicky Oppenheimer will retire from the board of Anglo American after serving 37 years. Oppenheimer will step down from his post as a non-executive director on the board on April 21 at the conclusion of the mining giants annual general meeting.

STATS

Belgium Imports & Exports

Figures are rounded
Feb. $Mil. %Chng. YTD $Mil. %Chng.
Polished exports $1,320 51% $2,130 40%
Polished imports $885 33% $1,870 33%
Net exports $432 104% $260

Rough imports $1,050 35% $2,100 37%
Rough exports $1,140 26% $2,170 26%
Net imports ($84) -45% ($70)

Net diamond acct. $516 54% $330 0%

Hong Kong Imports & Exports

Figures are rounded
4Q10 $Mil. %Chng. 2010 $Mil. %Chng.
Polished imports $3,490 31% $13,510 39%
Polished exports $2,700 27% $10,000 41%
Rough imports $305 32% $1,140 19%
Rough exports $296 30% $1,130 17%
Net diamond acct. $9 244% $3,510 37%

Japan Imports

Jan. $Mil. %Chng.
Polished diamond imports $72 44%
Gold jewelry imports $47 20%
Platinum jewelry imports $32 3%

MINING

TanzaniteOne Recovers 12,100-carat Stone

TanzaniteOne recovered a 12,100-carat rough tanzanite stone from its flagship project in Tanzania, possibly making it the third-largest stone in the world. The stone will be analyzed, graded for color and clarity and then cut and polished into smaller stones at the company’s new in-house cutting facility.

Shear Budgets Almost $5M for Phase 1 at Jericho

Shear Diamonds approved $4.6 million for its first phase on the Jericho diamond project in Nunavut, Canada. There is already a work crew of five at the site to prepare facilities for a drilling program planned to commence in early April. Shear ‘s goals this year are to confirm and expand current resources, explore for new diamondiferous kimberlites and begin work to determine if Jericho is economically feasible.

ECONWATCH

For the week ending Mar. 3

Mar. 3 Feb. 24 Chng.
$1 = Euro 0.720 0.725 -0.005
$1 = Rupee 44.95 45.57 -0.6
$1 = Israel Shekel 3.60 3.65 -0.05
$1 = Rand 6.92 7.05 -0.13
$1 = Canadian Dollar 0.97 0.98 -0.01

Precious Metals
Gold $1,416.30 $1,401.60 $14.70
Platinum $1,823.00 $1,779.00 $44.00

Stock Indexes Chng.
BSE 18,489.76 17,632.41 857.35 4.9%
Dow Jones 12,258.20 12,068.50 189.70 1.6%
FTSE 6,005.09 5,919.98 85.11 1.4%
Hang Seng 23,122.42 22,601.04 521.38 2.3%
S&P 500 1,330.97 1,306.10 24.87 1.9%
Yahoo! Jewelry 1,014.85 997.86 16.99 1.7%

USA
Birks & Mayors $1.48 $1.46 $0.02 1.4%
Blue Nile $53.81 $53.31 $0.50 0.9%
Charles & Colvard $3.53 $3.80 -$0.27 -7.1%
DGSE Companies $4.30 $4.15 $0.15 3.6%
Fuqi Intl. $4.13 $4.54 -$0.41 -9.0%
JCPenney $33.94 $36.55 -$2.61 -7.1%
Kohls $54.33 $53.80 $0.53 1.0%
LJ Intl. $4.08 $3.85 $0.23 6.0%
Macys $23.64 $23.17 $0.47 2.0%
Man Sang $4.30 $4.00 $0.30 7.5%
Movado Group $14.80 $14.09 $0.71 5.0%
Nordstrom $44.63 $45.00 -$0.37 -0.8%
Saks $12.18 $12.31 -$0.13 -1.1%
Signet $45.08 $43.18 $1.90 4.4%
Sothebys $49.72 $46.93 $2.79 5.9%
Tiffany $62.14 $60.55 $1.59 2.6%
Walmart $52.01 $52.09 -$0.08 -0.2%
Zale $4.19 $4.15 $0.04 1.0%

EUROPE
Bulgari €7.68 €7.32 €0.36 4.9%
Bijou Brigitte €102.99 €101.54 €1.45 1.4%
Damiani €1.03 €1.03 €0.00 0.0%
LVMH €112.95 €111.20 €1.75 1.6%
PPR €110.00 €110.50 -€0.50 -0.5%
Richemont CHF 54.10 CHF 52.30 CHF 1.80 3.4%
Swatch Group CHF 394.50 CHF 387.30 CHF 7.20 1.9%
Theo Fennell (pence) 44.00 44.25 -0.25 -0.6%

INDIA (rupee)
Asian Star 1,083.00 995.00 88.00 8.8%
Classic Diamond 13.14 12.51 0.63 5.0%
C.Mahendra 206.10 201.95 4.15 2.1%
Gitanjali Gems 219.60 215.65 3.95 1.8%
Goenka Diamond 61.00 59.60 1.40 2.3%
Goldiam Intl. 31.60 32.35 -0.75 -2.3%
Rajesh Exports 123.80 127.35 -3.55 -2.8%
Ren. Jewellery 75.40 72.40 3.00 4.1%
Shantivijay Jewels 75.20 78.10 -2.90 -3.7%
Suashish Diamonds 141.05 139.85 1.20 0.9%
Su-Raj Diamonds 47.80 46.15 1.65 3.6%
Titan 3,452.85 3,271.00 181.85 5.6%
Vaibhav Gems 34.10 21.75 12.35 56.8%

NEW ZEALAND
Michael Hill NZD 0.86 NZD 0.89 -NZD 0.03 -3.4%

MINING STOCKS
CANADA
Harry Winston CAD 12.40 CAD 11.74 CAD 0.66 5.6%
Lucara Diamond CAD 1.18 CAD 1.15 CAD 0.03 2.6%
Mountain Province CAD 5.65 CAD 5.02 CAD 0.63 12.5%
Peregrine Diamonds CAD 2.07 CAD 2.30 -CAD 0.23 -10.0%
Rockwell Diamonds CAD 0.05 CAD 0.05 CAD 0.00 0.0%
Shore Gold CAD 0.84 CAD 0.74 CAD 0.10 13.5%
Stornoway Diamond CAD 2.08 CAD 2.25 -CAD 0.17 -7.6%
True North Gems CAD 0.12 CAD 0.13 -CAD 0.01 -7.7%
UK (pence)
Anglo American 3,360.50 3,178.50 182.0 5.7%
BHP Billiton 2,484.00 2,360.50 123.5 5.2%
Firestone Diamonds 33.00 33.00 0.0 0.0%
Gem Diamonds 284.70 286.00 -1.3 -0.5%
Gemfields 15.40 14.12 1.3 9.1%
Mwana Africa 9.50 10.28 -0.8 -7.6%
Namakwa Diamonds 58.00 58.00 0.0 0.0%
Petra Diamonds 174.14 168.02 6.1 3.6%
Rio Tinto plc 4,351.00 4,170.00 181.0 4.3%
Stellar Diamonds 8.61 8.69 -0.1 -0.9%

RAPAPORT NEWS SERVICE | MAR. 11, 2011 www.rapaport.com | news@rapaport.com

Industry Retail & Wholesale EconWatch India Stats General

Rapaport Weekly Market Comment Mar. 11, 2011  

Hong Kong show exceeds expectations with very strong buying activity. Show indicated a shift to seller’s market as shortages and increasing Indian and Far East demand enabled higher prices. Investment demand building as Mid-East political instability increases demand for large fine quality D-IF and other high quality investment diamonds. De Beers reports unprecedented rough demand at Feb. Diamdel online auctions. DTC launches sightholder application process for 2012-2015 contract period. LVMH to acquire Bulgari for $6b. U.S. Jan. polished imports +25% to $1.6b, polished exports +39% to $1.3b. Botswana’s Jan. diamond exports +40% to $354m.

RapNet Data: Mar. 10

Diamonds 710,130
Value $4,667,882,080
Carats 802,470
Average Discount -28.34%

Get Current Price List | Subscribe to Rapaport | Join RapNet

RAPAPORT ANNOUNCEMENTS

March
14-22
Mon-Tue

Rapaport NY Melee Auction
Over 50,000 carats
Tel. 1-212-354-9100
Email: auctions@rapaport.com

March
25
Fri

Rapaport Conference at Baselworld

Special Presentation by Martin Rapaport
How to Make Money in the Diamond Business
9 a.m. - 10:30 a.m.

Rapaport Fair Trade Jewelry Conference
10:30 a.m. - 12:30 p.m.

Basel Congress Center, Montreal Hall
Register Now

QUOTE OF THE WEEK:
We want to be able to choose to whom we deliver so it’s not like a supermarket where everyone can help themselves. If LVMH spent 10% of the money they’re spending on Bulgari on training and watch production, that would be a good thing. Jewelry is much less sexy than making watches. That’s not to say it doesn’t interest Swatch Group, as we do have our own jewelry. Making watches is more interesting.

Nick Hayek | Swatch Group CEO

Careers@Rapaport

The Rapaport Group is growing rapidly. If you wish 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

LVMH to Acquire Bulgari in $6B Deal

LVMH Moet Hennessy Louis Vuitton SA will acquire Bulgari SpA in a deal valued at about $6 billion. LVMH will buy 50.4 percent of Bulgari by issuing 16.5 million shares in exchange for 152.5 million Bulgari shares held by the Bulgari family, which will give them approximately 3.3 percent in LVMH, making them the second largest family shareholder in LVMH. The deal will also bring Bulgari into LVMH’s watch and jewelry business, which already includes the TAG Heuer, Chaumet, Zenith, Hublot, Fred and De Beers brands.

Spot Gold Hits New Record

Spot gold hit an all-time high on Monday reaching $1,444.40oz. before pulling back during the afternoon hours in London. Escalating violence in Libya made investors jittery about oil prices and spurred some safe-haven buying of the yellow metal.

DTC Opens New Sightholder Application Process

The Diamond Trading Company (DTC) opened its sightholder registration process for the 2012 contract period. Applicants must provide financial data and adhere to strict De Beers best practice principles in order to be considered. Online registration closes at midnight (London time) on April 18, after which applicants will be requested to submit contract proposal questionnaires before July 7. The company set up a new website to facilitate the process.

Rapaport Weekly Broadcast

WATCH NOW Hong Kong Show diamond dealers reported strong trading driven by a buoyant Far East market for polished diamonds. There was strong demand for 1 to 3 carat, in D-F and I-K color ranges, and mainly for VVS, VS to SI clarity goods. In addition to 0.30 to 3 carat stones performed very well. Stones larger than 10 carats in all colors and clarities experienced improvement.

RETAIL & WHOLESALE

Diamdel: Unprecedented Demand at Feb. Auctions

Diamdel reported “unprecedented demand” at its February diamond auctions as 166 different companies submitted bids for stones. The De Beers subsidiary sold all 197 lots made available with 68 different companies winning lots. The company noted that sales to customers based in Belgium and Israel rose to record levels. Non-sightholders bought 62 percent of the lots while no individual buyer won more than 15 lots. There was strong demand for all categories of diamonds with the highest buyer participation seen in the 2-carat-plus sizes and small range stones.

Tanishq to Merge With Titan Industries

Tanishq (India) Ltd, a 100 percent subsidiary of watch and jewelry maker Titan Industries Ltd., has filed a petition with the Karnataka high court to merge itself with its parent company. This is part of Titan Industries’ plan to reduce the number of subsidiaries. After the merger Titan Industries will have only two subsidiaries: Titan Time products Ltd. and Titan Properties Ltd.

Christie’s to Auction Gloria Swanson’s 5ct. Diamond Ring

Christie’s Paris will auction legendary actress Gloria Swanson’s 5.1-carat, rectangular cut diamond ring on May 23. The beautifully crafted ring has a presale estimate of $97,377 to $139,110. Swanson was a Hollywood actress and silent move star, most famous for starring in “Sunset Boulevard” in 1950 and for her extravagant taste in jewelry — that would put most of today’s celebrities to shame.

Tacori Mating Game Sweepstakes Draws New Fans

Tacori chose the winner of its “Mating Game" sweepstakes, which ran on Facebook from February 10 to 28 and featured an online, interactive game that allowed players to navigate five potential dates through a question and answer session. At the end of the game, players were given their ideal match, engagement ring and wedding proposal. Michelle Rey won the sweepstakes and has her pick of any piece from the Tacori 18k925 Collection of color-filled fine jewelry valued up to $3,000. Tacori picked up thousands of new fans during the sweepstakes promotion.

Venus Jewel Launches Diamond DNA Feature

Venus Jewel launched a unique tool that lets customers closely look at the diamonds they are interested in purchasing. Diamond DNA shows shoppers diamond diagrams, plotting of inclusions, high-res photographs and AGS parameters among other details before they decide to buy the stone. The tool is available at www.venusjewel.com.

Las Vegas Antique Jewelry Show Moves to the Paris

The Las Vegas Antique Jewelry & Watch Show will be held at the Paris Hotel from June 2 to 5, 2011. The show offers loose diamonds, rare and unique antique jewelry, watches and gemstones from all over the world.

GENERAL

Industry Players Make Forbes List

Forbes magazine published their annual list of the World’s Richest Players for 2011 and included some from the diamond and jewelry retail industry.

No. 3: Warren Buffett, worth $50 billion
No. 4: Bernard Arnault, LVMH, worth $41 billion
No. 30: Jeff Bezos, Amazon, worth $18.1 billion
No. 67: Francois Pinault, PPR, worth $11.5 billion
No. 136: Nicky Oppenheimer (pictured), worth $7 billion
No. 162: Beny Steinmetz, worth $6 billion
No. 173: Ralph Lauren, worth $5.8 billion
No. 219: Johann Rupert, Richemont, worth $4.8 billion
No. 459: Laurence Graff, worth $2.5 billion
No. 782: Lev Leviev, worth $1.6 billion
No. 782: Jack Ma, Alibaba, worth $1.6 billion
No. 993: Mohamed al Fayed, Harrods, worth $1.2 billion

COLLOQUY Report Says News Travels Fast

COLLOQUY’s latest research into the word-of-mouth social sharing practices of U.S. households found that a bad customer experience travels faster than a good one. They advice brands to make sure customers not only have an opportunity for two-way dialogue, but have a voice with others through social media. Also, make sure that brand content is relevant and fresh, go overboard to service clients and address any negative feedback immediately.

STATS

U.S. Imports & Exports

Figures are rounded Jan. $Mil. %Chng.
Polished imports $1,590 25%
Polished exports $1,260 39%
Net imports $326 -8%

Rough imports $56 19%
Rough exports $34 105%
Net imports $22 -29%

Net diamond account $348 -10%

MINING

Gemfields 1H11 Revenue +141% to $29M

Gemfields reported that revenue from rough and polished emerald sales soared 141 percent to $29 million for the six months that ended December 31, 2010, versus the same fiscal period of 2009. The mining company also recovered a profit of $15.5 million versus a loss of $5.8 million one year ago and is debt free. Also, gemstone production at the Kagem mine for the first six months of the fiscal year totaled 18.7 million carats of emerald and beryl, exceeding total production for fiscal year 2009 of 17.4 million carats.

Alrosa Opts to Tender Polished Diamonds 1ct.+

ALROSA’s Market Conjuncture Panel decided that polished diamonds of 1-carat or larger would now be sold on a tender basis rather than through the previous system of one-time contracts, due to strong global demand for polished goods. ALROSAs obligations to supply polished diamonds to its customers, who were buying through one-time supply contracts before March 4, will be honored under the terms and conditions of existing contracts.

Stellar Improves Cash Position During 1H11

Stellar Diamonds reported that diamond sales totaled $971,561 for 28,967-carats during its first fiscal half that ended December 31, 2010. The junior miner improved its cash position to $1.3 million from $700,000 six months earlier. Stellar also completed a share placement and raised $3 million in October to advance the Tongo and Droujba kimberlite projects.

Additionally, Stellar also raised $10 million through a share placement following its fiscal results, to accelerate development of the company’s kimberlite portfolio — including their projects in Guinea and Sierra Leone — and to fund general working capital requirements in line with the company’s growth strategy.

Peregrine Diamond Completes $8M Private Placement

Peregrine Diamonds completed a non-brokered private placement of 3 million common shares and raised $8.4 million. The common shares were sold on a “flow-through” basis and were bought by institutional investors, whose common advisor is a company insider. Proceeds from the fundraising will benefit the mining company’s mineral exploration projects in Canada, but are still subject to final regulatory approval.

Vaaldiam to Acquire 51% of Brauna

Vaaldiam Mining entered an agreement to increase its interest in the joint venture company, which holds its Braúna kimberlite diamond property in Bahia State, Brazil, from 20 percent to a majority 51 percent share. Vaaldiam plans to bring the Braúna 3 (B3) kimberlite pipe to production as quickly as possible. The company has commissioned Coffey Mining to prepare a preliminary economic assessment that should be completed this month.

ECONWATCH

For the week ending Mar. 10

Mar. 10 Mar. 3 Chng.
$1 = Euro 0.723 0.720 0.003
$1 = Rupee 45.28 44.95 0.3
$1 = Israel Shekel 3.58 3.60 -0.02
$1 = Rand 6.92 6.92 0.00
$1 = Canadian Dollar 0.98 0.97 0.01

Precious Metals
Gold $1,412.00 $1,416.30 -$4.30
Platinum $1,763.00 $1,823.00 -$60.00

Stock Indexes Chng.
BSE 18,327.98 18,489.76 -161.78 -0.9%
Dow Jones 11,985.14 12,258.20 -273.06 -2.2%
FTSE 5,845.29 6,005.09 -159.80 -2.7%
Hang Seng 23,614.89 23,122.42 492.47 2.1%
S&P 500 1,295.46 1,330.97 -35.51 -2.7%
Yahoo! Jewelry 1,016.23 1,014.85 1.38 0.1%

USA
Birks & Mayors $1.57 $1.48 $0.09 6.1%
Blue Nile $53.01 $53.81 -$0.80 -1.5%
Charles & Colvard $3.33 $3.53 -$0.20 -5.7%
DGSE Companies $4.45 $4.30 $0.15 3.5%
Fuqi Intl. $4.69 $4.13 $0.56 13.6%
JCPenney $36.88 $33.94 $2.94 8.7%
Kohls $55.15 $54.33 $0.82 1.5%
LJ Intl. $3.95 $4.08 -$0.13 -3.2%
Macys $23.63 $23.64 -$0.01 0.0%
Man Sang $4.41 $4.30 $0.11 2.6%
Movado Group $13.77 $14.80 -$1.03 -7.0%
Nordstrom $44.38 $44.63 -$0.25 -0.6%
Saks $12.62 $12.18 $0.44 3.6%
Signet $43.79 $45.08 -$1.29 -2.9%
Sothebys $47.33 $49.72 -$2.39 -4.8%
Tiffany $61.98 $62.14 -$0.16 -0.3%
Walmart $52.72 $52.01 $0.71 1.4%
Zale $4.05 $4.19 -$0.14 -3.3%

EUROPE
Bulgari €12.16 €7.68 €4.48 58.3%
Bijou Brigitte €101.60 €102.99 -€1.39 -1.3%
Damiani €1.01 €1.03 -€0.02 -1.9%
LVMH €113.10 €112.95 €0.15 0.1%
PPR €108.50 €110.00 -€1.50 -1.4%
Richemont CHF 53.60 CHF 54.10 -CHF 0.50 -0.9%
Swatch Group CHF 387.90 CHF 394.50 -CHF 6.60 -1.7%
Theo Fennell (pence) 46.00 44.00 2.00 4.5%

INDIA (rupee)
Asian Star 1,056.40 1,083.00 -26.60 -2.5%
Classic Diamond 13.13 13.14 -0.01 -0.1%
C.Mahendra 254.90 206.10 48.80 23.7%
Gitanjali Gems 215.35 219.60 -4.25 -1.9%
Goenka Diamond 60.05 61.00 -0.95 -1.6%
Goldiam Intl. 35.00 31.60 3.40 10.8%
Rajesh Exports 120.40 123.80 -3.40 -2.7%
Ren. Jewellery 77.95 75.40 2.55 3.4%
Shantivijay Jewels 78.90 75.20 3.70 4.9%
Suashish Diamonds 139.00 141.05 -2.05 -1.5%
Su-Raj Diamonds 48.05 47.80 0.25 0.5%
Titan 3,473.75 3,452.85 20.90 0.6%
Vaibhav Gems 32.40 34.10 -1.70 -5.0%

NEW ZEALAND
Michael Hill NZD 0.87 NZD 0.86 NZD 0.01 1.2%

MINING STOCKS
CANADA
Harry Winston CAD 13.65 CAD 12.40 CAD 1.25 10.1%
Lucara Diamond CAD 1.10 CAD 1.18 -CAD 0.08 -6.8%
Mountain Province CAD 5.92 CAD 5.65 CAD 0.27 4.8%
Peregrine Diamonds CAD 2.08 CAD 2.07 CAD 0.01 0.5%
Rockwell Diamonds CAD 0.05 CAD 0.05 CAD 0.00 0.0%
Shore Gold CAD 0.80 CAD 0.84 -CAD 0.04 -4.8%
Stornoway Diamond CAD 2.14 CAD 2.08 CAD 0.06 2.9%
True North Gems CAD 0.12 CAD 0.12 CAD 0.00 0.0%
UK (pence)
Anglo American 3,112.00 3,360.50 -248.5 -7.4%
BHP Billiton 2,300.00 2,484.00 -184.0 -7.4%
Firestone Diamonds 30.29 33.00 -2.7 -8.2%
Gem Diamonds 267.00 284.70 -17.7 -6.2%
Gemfields 15.55 15.40 0.2 1.0%
Mwana Africa 7.92 9.50 -1.6 -16.6%
Namakwa Diamonds 57.00 58.00 -1.0 -1.7%
Petra Diamonds 163.00 174.14 -11.1 -6.4%
Rio Tinto plc 3,932.80 4,351.00 -418.2 -9.6%
Stellar Diamonds 8.09 8.61 -0.5 -6.0%

INDIA MARKET REPORT

Jen tak pro zajímavost, je tady někdo,
kdo čte ty Grofikovi zašifrovanosti?
🙄

mimo Grofika asi ne...
kdo se tím žíví, sem jistě nechodí...😕

ja 😉 urcite je nas viac🙂

turtle ; je to štandartné týždenné hlasenie a pohyboch na diamantovom poli.
Vôbec sem nedávam týždenný prehľad o predaji farebných kamienkoch atd.,atd.
Taktiež nedávam cenu na farebné a biele kamene platnú pre rôzne odrody a kvalitu, je to môj koníček a dokonca sa aj trochu viem zorientovať v probléme.😉
Moho ľudí si pozrie trebárs diskusiu na tému Antické mince ,verím 95% vôbec netuší o čom sa píše ,nemá prehľad o počte Cisárov,miestodržiteloch atd.atd.

Dobrá, dobrá, tak se nerozčiluj, jen mně doopravdy zajímalo
kdo to čte.
😉

Prepáč turtle;pokiaľ môj príspevok ti pripadal ako rozčulovanie😲 😃 v tom duchu to nebolo písané.😉

Rapaport Weekly Market Comment Mar. 18, 2011

Financial markets slump as Japan’s earthquake, tsunami and radiation threat increases uncertainty about a global economic recovery. Prices for commercial quality diamonds steady. Dealers expecting higher prices for large expensive diamonds at next week’s important Basel Show as global economic and political uncertainty surge due to Japanese and Mid-East crises. Luxury jewelry and diamond mining shares drop while polished and rough demand continues to be strong. Interfax reports that Russia’s Gokhran plans to sell diamonds worth $105m in 2011. Gem Diamonds’ 2010 revenues +9% to $266m, profits +43% to $36m. U.K. watch & jewelry sales +2% to $7.5b in 2010.

RapNet Data: Mar. 17

Diamonds 693,999
Value $5,235,796,897
Carats 784,761
Average Discount -21.54%

Get Current Price List | Subscribe to Rapaport | Join RapNet

RAPAPORT ANNOUNCEMENTS

March
14-22
Mon-Tue

Rapaport NY Melee Auction
Over 50,000 carats
Tel. 1-212-354-9100
Email: auctions@rapaport.com

March
25
Fri

Rapaport Conference at Baselworld

Special Presentation by Martin Rapaport
How to Make Money in the Diamond Business
9 a.m. - 10:30 a.m.

Rapaport Fair Trade Jewelry Conference
10:30 a.m. - 12:30 p.m.

Basel Congress Center, Montreal Hall
Register Now

QUOTE OF THE WEEK:
[Wm. Scheer Jeweler sort of put in place that standard for other jewelers in Rochester. With the Internet being what it is now, its tremendously influenced the bread-and-butter heart of the jewelry business — the diamond engagement ring. Before, youd ask mom and dad and theyd refer you to the family jeweler, which in Rochester, that be Scheers, but now they buy online. (Wm. Scheer to close after 111 years in the business.)

Jerry Laufer | Owner of Laufer & Tweet Jewelers, Rochester NY

Careers@Rapaport

The Rapaport Group is growing rapidly. If you wish 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

U.S. Jewelry CPI +10%, Sets New Record in Feb.

The U.S. consumer price index (CPI) for jewelry hit a new high in February at 171.4 points, jumping 10 percent from one year ago. February marked the second consecutive month for which the reading topped 170 points and the 37th consecutive month of a reading higher than 150 points.

UK Jewelry & Watch Sales +2% in 2010

Retail jewelry and watch sales in the U.K. rose 1.8 percent to $7.45 billion in 2010. Sales were boosted by a strong performance in the watch sector and in cheap fashion jewelry, according to Research and Markets. There was also strength in the bridal category — despite the rough economic climate, most couples were unwilling to compromise on the quality of wedding bands and engagement rings.

Gokhran Plans to Sell $105M of Rough

Gokhran plans to sell precious metals and gems worth about $366 million in 2011, with about $105 million coming from diamond sales, including $17 million from export sales. The remaining $261 million will come from the sale of precious metals, excluding gold, mainly on export markets. It does not plan to buy diamonds or sell gold from its reserves, according to Interfax.

Diamdel to Process Applications in April

Beginning in April, Diamdel will process applications from companies wishing to register for its diamond auctions. Registration will be on a first-come, first-served basis and can be done here. Diamdel will accept registration from any company that utilizes rough diamonds.

Rapaport Weekly Broadcast

WATCH NOW: RBC Capital Markets noted that diamond industry equities will continue to feel the heat given the disaster in Japan. RBC expects that the demand for luxury goods would be significantly impacted by the scale of the personal and economic losses; overall it could pressure rough prices in the near-term. In the U.S., the Luxury Institute’s 2011 Consumer Experience Index ranked retailers on store personnel, shopping environment and the degree of satisfaction with the overall experience. Bergdorf Goodman, Nordstrom, and Brooks Brothers all earned highest marks

RETAIL & WHOLESALE

U.S. Sales Return Mixed Results

U.S. department store sales fell 1.9 percent to $15.5 billion in February from one year ago. However, the International Council of Shopping Centers (ICSC) reported that same-store sales at chain-stores rose by 3.8 percent. The National Retail Federation (NRF) also reported an increase for retail sales, excluding automobiles, gas stations, and restaurants, during February rose 4.2 percent.The higher income households are driving sales so far as middle and lower income households experience stagnate or declines in income. Neiman Marcus experienced a 6.4 percent increase in sales for its second quarter at $1.17 billion and profit surged to $21 million compared with only $3.96 million one year ago.

Bidz.com Reports Profit Plunge

Bidz.com reported that net revenues rose 6 percent year on year to $29 million during the fourth quarter that ended December 31. Net profit declined by 96 percent to $15,000 as cost of sales rose 13 percent to $21.9 million. The company warned of a slight slowdown in consumer spending at the start of 2011 with first quarter revenue forecasted to fall to between $23 million and $25 million down from $26.5 million one year ago.

Diamond in the Rough Launches Bridal Boutique

Diamond in the Rough is launching its first e-commerce bridal boutique. The bridal section will feature solitaire natural rough diamond ring designs. Each ring will be one-of-a-kind and feature a natural rough diamond center stone with micro pave diamond accents in 18-karat yellow and pink gold and platinum. Natural rough diamond bands will be also be available. The collection ranges in price from $3,500 to $10,000 retail, with special pieces topping $10,000 and bands starting at $2,000 retail.

United Brands Preps NBA Diamond Jewelry Market

United Brands creative team will provide professional marketing services for Gameplan Concepts to promote the NBA Diamond Jewelry™ brand. Marketing initiatives will focus on leveraging Internet social media and public relations activities for building the NBA Diamond Jewelry brand across Facebook, Twitter, television and in print media. United Brands will work on connecting audiences, fans and collectors with member jewelry retailers in each NBA team location.

Michael Kors and Fossil to Debut Jewelry Collection

Fossil and Michael Kors will debut the Michael Kors Fall 2011 jewelry collection, offering womens earrings, necklaces, bracelets and rings. Pieces will range in price from $100 to $500 and will be available in select Michael Kors retail stores worldwide and sold through limited domestic and European wholesale partners beginning in the third quarter of 2011.

Kimberley Process Annual Reports Due April 1

The U.S. State Department requires that rough diamond importers and exporters file an annual report with the Office of the Special Advisor for Conflict Diamonds at the U.S. Department of State each year on April 1. Dealers who import rough diamonds must state the total carats of rough diamond imports and exports and any stockpiles remaining at the end of the calendar year. Reports should be submitted via email to USKimberleyProcess@state.gov. The Jewelers Vigilance Committee (JVC) is available to answer any questions.

FUQI Shares Hit 52wk Low

Shares in FUQI International plummeted to a 52-week low of $3.19 following its extension request to the SEC. The company stated that it was unable to prepare and review all necessary information and disclosures in its annual report and three quarterly reports for the period that ended December 31. As previously stated, FUQI identified accounting errors that require a restatement of its condensed consolidated financial statements for all three fiscal quarters in 2009, which were included in the extension request.

GENERAL

Forevermark U.S. Names Executive Team

De Beers diamond brand Forevermark appointed its core management team for the U.S. and confirmed Forevermark Diamantaires as it progresses toward a country launch. Charles Stanley will lead the team as the president of Forevermark U.S. Inc. The management under his guidance includes Sally Morrison, chief marketing officer; Colby Shergalis, vice president of marketing; Emmy Kondo, director of strategic planning; Lisa Cochin, director of partner relations; and Jamie Cadwell, director of public relations; and Kevin Lane, vice president of sales.

Meetings with potential U.S. Forevermark retailers are underway. Authorized Forevermark diamantaires include Crossworks, Dali-Alink, Diarough, Eurostar, Julius Klein, Leo Schachter, Pluczenik, Premier Gem, Rosy Blue, Trau, and Venus Jewel.

Chow Tai Fook Sub Invests in Ping An

Jin Jun Company, an affiliate of Chow Tai Fook, agreed to purchase 272 million shares in insurance and banking firm Ping An for approximately $2.5 billion. The transaction will be subject to the approval of the China Insurance Regulatory Commission and the China Securities Regulatory Commission. The number of shares to be issued accounts for approximately 3.4 percent of the enlarged issued share capital of Ping An.

Couture Design Awards Competition Underway

The Couture Design Awards competition will again be held this year during the Couture show at Wynn Las Vegas. This year’s competition will be a juried event, led by a panel of jewelry designers, Cornerstone retailers, jewelry and fashion editors all of whom will judge submissions for uniqueness of design, craftsmanship and salability. Retailers will also be voting for their favorite piece in order to provide a “People’s Choice” winner. Entries will be on display during the Couture show and can be submitted here.

MINING

Zim Reconciles Missing Diamond Accounts

Zimbabwes Mines minister Obert Mpofu said that the ongoing dispute for so-called "missing" diamond revenue at the Treasury has been closed. The Finance Ministry now agreed that it had collected all $174.2 million from its share of diamond sales. Mpofu claimed that $313.5 million worth of rough had been sold out of Mbada Diamonds and Marange Resources. But it remains uncertain whether the total represented only 2010 sales, or just the period of August 2010 to February 2011

Mothae Diamond to Tender 8,500cts. in Antwerp

Mothae Diamonds, a subsidiary of Lucara Diamond, will hold its first diamond sale from March 21 through March 28 in Antwerp. Mothae Diamonds will offer about 8,500 carats of rough diamonds that were produced from bulk sampling and trial mining at the Mothae kimberlite in Lesotho. A 4 percent royalty from the sale will be payable to a Mothae partner, the government of Lesotho.

Gem Diamonds Profits Rise 43% in 2010

Gem Diamonds reported that net profits rose 43 percent to $36.2 million in 2010 and group revenues increased 9 percent to $266.4 million, driven by higher rough prices achieved in the fourth quarter. Despite a 13 percent decrease in volumes sold at Gem Diamonds’ flagship Letšeng mine in Lesotho to 88,564 carats, the average price of Letšeng stones rose 40 percent year on year to $2,149 per carat in 2010. Similarly, production sold at the Ellendale mine in Australia fell 48 percent year on year to 163,924 carats while the average price of the diamonds rose 105 percent to $475 per carat.

Guinea Sample Returns 565cts. for Stellar

Stellar Diamonds reported that its first sample from the Bouro north dyke in Guinea returned 565 carats. This sample returned a significantly high diamond grade of 243 carats per hundred tonnes. Rough diamond recovery included 20 stones greater than 1 carat and the largest diamond was 3.67 carats. Preliminary analysis found that 4 percent of the diamonds were classified as "gem quality," although that rate is expected to increase following the parcels acidisation and cleaning in April. The diamonds will be valued and sold in Antwerp.

ECONWATCH

For the week ending Mar. 17

The diamond industry stock slide this week didnt qualify as a blood bath, but it was close. Read the extended stock report for major retailer and miner stocks from India, the U.S., and Europe.

Mar. 17 Mar. 10 Chng.
$1 = Euro 0.710 0.723 -0.013
$1 = Rupee 45.10 45.28 -0.2
$1 = Israel Shekel 3.55 3.58 -0.03
$1 = Rand 7.14 6.92 0.22
$1 = Canadian Dollar 0.99 0.98 0.01

Precious Metals
Gold $1,404.80 $1,412.00 -$7.20
Platinum $1,698.00 $1,763.00 -$65.00

Stock Indexes Chng.
BSE 18,149.87 18,327.98 -178.11 -1.0%
Dow Jones 11,774.59 11,985.14 -210.55 -1.8%
FTSE 5,696.11 5,845.29 -149.18 -2.6%
Hang Seng 22,284.43 23,614.89 -1,330.46 -5.6%
S&P 500 1,273.72 1,295.46 -21.74 -1.7%
Yahoo! Jewelry 946.27 1,016.23 -69.96 -6.9%