Rapaport TradeWire - Friday, August 22, 2008
News: Trading activity slow due to weak U.S. consumer demand and
summer vacations. Zale FY08 sales $2.14 bil. (-0.7%) profits $11 mil.
(-82%) and same-store sales -0.7%. Tiffany 2Q sales $732 mil. (+10%)
profits $81 mil. (+99%) but U.S. same-store sales -4%. Finlay 2Q sales
$191 mil. (+29%) and net loss $12.3 mil.. Rio Tinto 1H rough sales
$571 mil. (+28%) profits $108 mil. (+20%). India July polished exports
$1.32 bil. (+11%) and rough imports $1.14 bil. (+6%). Belgium July
polished exports $1.47 bil. (+33%) rough imports $1.14 bil. (+29%).
U.S. traders must e-mail rough diamond import/exports and inventories
for 2007 to USKimberleyProcess@state.gov by Sept. 1. RAPAPORT
CONFERENCE – MONDAY SEP. 8 – NEW YORK WALDORF ASTORIA HOTEL – RESERVE
NOW! idc@diamonds.net -- http://www.diamonds.net/idc
ANNOUNCEMENTS
============-
Martin Rapaport to Lecture At
INTERNATIONAL JEWELLERY LONDON
=============================-
"State of the Diamond Industry"
Sept. 1, 2008, 11:00-12:30 p.m.
Earls Court Conference Centre - Room 2
=----------------------------------------------=
RAPAPORT INTERNATIONAL DIAMOND CONFERENCE
========================================-
Sept. 8, 2008, New York, Waldorf Astoria Hotel, 8:30-4:30
“2010, The Next Decade - The Future of the Diamond Industry”
Reserve Now. conference registration - www.diamonds.net/idc
Email: idc@diamonds.net or call 1-702-893-9400 for information.
http://www.diamonds.net/Conference/2008/Default.aspx
Rates: $150 for conference, $250 with lunch.
CONFERENCE WEBCAST:
==========================================-
Rapaport International Diamond Conference 2008
To Be Broadcast Live on the Internet.
$100 pay-per-view with 30 day Internet Access.
Webcast Registration:
https://www.diamonds.net/Conference/2008/Register.aspx
Email: idc@diamonds.Net
RETAIL QUOTE:
"With a decline in customers walking into the store...this has been
accelerated by a depressed economy. Business is off a little, but its
not too bad. Fortunately, people are still celebrating birthdays,
anniversaries and engagements but things are a little quieter. People
in the real-estate market are really feeling it, and many of our
customers are in the real-estate market."
---Jeff Hurwitz of Colonial Jewelry, Frederick, Maryland
WORLD NEWS:
---U.S. Deadline to Report Rough Imports, Exports, Inventory
Anyone dealing with rough must file their first rough diamond import
and export report with the federal government. The deadline for filing
is September 1, 2008, to report for the calendar year 2007. The next
deadline is April 1, 2009, to file for calendar year 2008 - and from
each April 1st from that point on.
E-mail (no specific format is required) the identities of the importer
and/or exporter (name, address, telephone number, fax, and e-mail
address) and the total amount of import/export activity for each of
the three harmonized tariff codes (7102.10, 7102.21 and 7102.31.)
E-mail the report to USKimberleyProcess@state.gov
---RBC Sees Deep Value in Diamond Shares
RBC Capital Markets foresees strong investment opportunities in the
diamond sector as share prices have fallen by as much as 70 percent
among mining and exploration companies so far in 2008. RBC named Petra
Diamonds and Gem Diamonds as “best picks” given their “growing
production, sound management, strong balance sheets, and no need to
access capital markets in the near future.”
RBC cautioned that production growth in the next three to five years
was limited. As a result, rough diamond supply was likely to fall
short of demand.
---De Beers to Provide 4Q Funds to Select Sightholders
De Beers made a special allocation of funds to a select group of
Diamond Trading Company (DTC) sightholders for fourth quarter
marketing activities. The funds were made available to those who
fulfilled a set of objective marketing goals and were in good standing
with BPP (best practice principles.)
---Thailand: July Gems, Jewelry Exports +197%
Thailands Ministry of Commerce reported the nations exports of gems
and jewelry rose 197 percent, and shipments of pre-formed gold rose
1,000 percent. Exact dollar figures were not available. The surge in
the jewelry and metals sector was driven in part by much higher prices
than one year ago.
---Myanmar Plans October Gem Auction
Myanmar is planning an auction of precious gems in October, with sales
based upon a competitive bidding system. Jade, pearls and precious
gems will be among the lots on sale. The auction would be the first in
Myanmar since President George W. Bush signed legislation in July to
ban the import of rubies and jade from there into the United States.
---U.S. 2Q08 GDP +3%, Consumer Spending +2%
A surge in exports during second quarter (April-June) helped to boost
the United States GDP 3.3 percent, which was higher than estimates of
1.9 percent. The weaker dollar during the quarter spurred buying
activity from other nations, but also made imports more expensive.
Overall exports grew 13.2 percent, imports fell at a 7.6 percent
during the quarter. Even with polished diamonds, for example, the
United States exported 18 percent more by value than it imported,
which was a first. Consumer spending during the quarter rose 1.7
percent and the government contended this increase was the result of
its stimulus checks.
---Rapaport News Broadcast
Retail results from Finlay find consumers continue to hold-back
spending on jewelry; Rio Tinto ends its quarter on a high due to
emerging market demand for diamonds; De Beers will help some
sightholders with fourth quarter marketing funds.
http://www.diamonds.net/news/NewsItem.aspx?ArticleID=23018
DIAMOND STATS:
---Belgium July Imports/Exports (YTD= year to date)
July 08 %Chng YTD 08 %Chng
($Mil) ‘07 ($Mil) ‘07
Polished Exports $1,468 33% $7,994 25%
Polished Imports $940 19% $7,359 27%
Net Polished $528 66% $634 4%
Rough Imports $1,136 29% $7,002 19%
Rough Exports $1,206 4% $7,521 10%
Net Rough ($70) 75% ($519) 44%
Diamond Account $598 0% $1,153 -25%
---India July Imports/Exports (YTD= year to date)
July 08 %Chng YTD 08 %Chng
($Mil) ‘07 ($Mil) ‘07
Polished Exports $1,322 11% $9,190 29%
Polished Imports $795 65% $4,367 132%
Net Polished $527 -25% $4,824 -8%
Rough Imports $1,138 6% $6,845 16%
Rough Exports $65 40% $491 40%
Net Rough $1,073 5% $6,354 15%
Diamond Account ($546) -71% ($1,530) N/A
RETAIL & WHOLESALE NEWS:
---Zale 4Q Loss at $5M, FY Profits -82% to $10M
Zale Corporation revenues rose 7.8 percent to $456.222 million for its
fourth fiscal quarter ending July 31, 2008. The jeweler reported a net
loss of $4.884 million, compared with $1.537 million profit one year
ago. Same-store sales in fiscal fourth quarter rose 6 percent. Sales
for fiscal year 2008 fell 0.7 percent to $2.138 billion, and Zale
reported profits of $10.801 million -- a drop of 82 percent. Gross
margin for the year was 49 percent, down from 52.2 percent. Same-store
sales fell 0.7 percent. Zale has reduced merchandise inventories 24
percent to $779.565 million. The jeweler stated that clearance sales
during the year drove inventory reduction of $127 million.
---Tiffany 2Q Profits Double, U.S. same-store sales -4%
Tiffany & Co reported net earnings doubled to $80.77 million during
its second fiscal quater. Net sales grew 10 percent to $732.4 million
and comparable store sales rose 3 percent. For the fiscal half year
Tiffany’s net earnings grew 53 percent to $145.16 million, with net
sales up 11 percent to $1.4 billion and comparable store sales growth
of 5 percent. First half sales in the Asia Pacific region rose 19
percent to $436.3 million, and European sales grew 36 percent to
$131.1 million. Sales in the Americas region increased 4 percent to
$796.0 million with U.S. comparable store sales declining 4 percent.
---Finlay 2Q Net Loss +6% to $12M
Finlay Enterprises reported that its second fiscal quarter net loss
grew 6.4 percent to $12.3 million. Sales rose 29 percent to $190.6
million for the quarter. Specialty jewelry stores consisting of
Carlyle, Congress, and Bailey Banks & Biddle, contributed sales of
$74.9 million for the second quarter -- up from $27 million from one
year ago (without Bailey Banks & Biddle.) Comparable store sales fell
4.8 percent.
---ShopNBC 2Q Sales -26%, Net Loss +191%
Weak consumer spending hit ShopNBC hard during second quarter as sales
fell 26 percent to $142 million. The company’s net loss for the second
quarter rose 191 percent to $15.7 million. The number of units shipped
fell 23 percent to 870,000, and the average price point fell 4 percent
to $224. As a percentage of total sales, jewelry came in at 39 percent
(down from 40 percent.) The only two segments showing improvement
during the second quarter were health and beauty, and the watches,
coins, and collectibles categories.
---Sothebys Schedules NY Important Jewels Sale for Sept. 25
Sotheby’s New York will hold its Important Jewels sale on September
- The sale will include approximately 450 lots with a pre-sales
estimate of between $11 million and $15 million.
---Michael Hill Intl Marks Entry into U.S. Market
Michael Hill International signed an agreement to acquire 17 stores
from Whitehall Jewelers. The deal is said to be worth about $5 million
(NZD7 million.) These stores are mostly in the greater Chicago area,
with two located in Missouri. The deal marks the first foray into the
United States for Michael Hill.
GENERAL NEWS:
---$20 Million in Gems, Jewelry to Help Pay Creditors
The U.S. Attorneys Office in Pittsburgh agreed to turn over an
estimated $20 million worth of precious gems and jewelry to a trustee
who will sell the items to pay creditors of bankrupt LeNatures Inc.
Included in the batch of diamonds, rubies, pearls, diamond-encrusted
watches, necklaces, bracelets, pendants and rings is a "fancy, vivid
green diamond" estimated to be worth $1.3 million to $3 million. Van
Cleef & Arpels is willing to take possession of the diamond or return
a $90,000 deposit it was paid to make part of a setting, but it wont
agree to both.
---Israel, Antwerp Preps for Strong Showing in Hong Kong
More than 50 diamond manufacturers and exporters from Israel will be
taking part in the Hong Kong Jewellery & Watch Fair from September
17–21, 2008. The Antwerp World Diamond Centre (AWDC) said 73
Antwerp-based diamond companies would participate in its pavilion.
---Industry Groups Submit Platinum Amendment Feedback to FTC
Jewelers Vigilance Committee (JVC,) Manufacturing Jewelers and
Suppliers of America (MJSA,) Jewelers of America (JA,) and American
Gem Society (AGS) filed a submission to the Federal Trade Commission
(FTC) that their position on terminology maintains the word “platinum”
should not be used to describe an alloy combining platinum with
non-platinum group metals.
---Pakistan Confirms Late October Houston Gem Show
The Pakistan Gems and Jewellery Development Company (PGJDC,) with
cooperation from the Pakistan Chamber of Commerce USA (PCC-USA,) will
hold a gem and jewelry exhibition in Houston during the final week of
October 2008. While no venue had been officially named to host the
event, more than 50 jewelers and gem merchants from Pakistan were
expected to attend, making it the largest exhibition by the nations
jewelers in a single country.
DIAMOND MINING NEWS:
---Rio Tinto 1H08 Diamond Earnings +20%, Group Profits Hit Record
Rio Tinto diamond earnings for the first fiscal half of 2008 rose 20
percent to $108 million. Gross sales increased 28 percent to $571
million. The rise in profits came despite a 31 percent decline in
production from its three mines, to 7.853 million carats during the
period.
---Grizzly Diamonds Private Placement Nets $811K
Grizzly Diamonds Ltd. raised $810,600 in a private placement of an
aggregate of 271,000 flow-through units at a price of $1 per unit, and
599,556 non-flow-through units at a price of 90-cents per unit.
Proceeds raised will be used to fund the companys drilling programs
in Alberta and British Columbia.
---North Australian Diamonds Plans to Raise $6M
North Australian Diamonds Ltd is planning to raise $6 million to help
advance its Merlin diamond project in Australia’s Northern Territory.
The funds will be carried out in three stages: Including a 150 million
share placement at $0.005 a share; a placement of 300 million shares
at $0.0075 a share; and the placement of 300 million shares at $0.01 a
share.
---Canada to Map Arctics Vast Resources
Canadas Prime Minister Stephen Harper announced Tuesday an ambitious
plan to discover and tap minerals beneath the Arctic. The governments
plan is to use "state of the art geological science and technology to
map the energy and mineral potential of the North."
---Rio Tinto Launches Annual Argyle Pink Diamond Tender
Rio Tinto launched its 24th annual Argyle Pink Diamond Tender in
Perth, Australia. It was the first of six locations to host the 65
pink diamonds before bidders are accepted in October. The remaining
five showings include in New York from September 2-5, London
(September 9- 11,) Hong Kong (September 15 -20,) Tokyo (September
24-26,) and finally in Sydney (October 1-2.)
---Namakwa Diamonds Launches Production at London Mine
Namakwa Diamonds Limited started production at its London 112HO
alluvial mine in the North West Province, South Africa. Namakwa bought
the London mine in July 2008 for $1.35 million saying the property had
an indicated and inferred resource of 114,390 carats of diamonds at an
average recovered grade of 0.7 carats per hundred tonnes (cpht.)
---DiamonEx Postpones First Lerala Sale to Sept.
DiamonEx has postponed the first sale of diamonds from its Lerala mine
in Botswana, after delays in commissioning the mine meant it did not
have a sufficiently large parcel to justify the pre-scheduled sale in
August.
---Mothae Tailings Project Yields 621cts of Diamonds
Motapa Diamonds recovered 620.92 carats of diamonds in phase-1 bulk
sampling at its Mothae tailings joint project in Lesotho, which it
operates with partner Lucara Diamond Corp. The sample consisted of
1,851 stones with 58 stones weighing more than 2 carats, and 13 stones
greater than 5 carats. The largest three diamonds were 10.24, 8.65 and
8.51 carats. Total diamond recovery from the phase-1 program to date
is 1,204.45 carats (3,160 diamonds.)
ECON WATCH:
For week ending August 28, 2008
Aug 21 Aug 14 Chng
$1 = Euro 0.680 0.671 0.009
$1 = Rupee 43.7 43.4 0.3
$1 = Israel Shekel 3.60 3.49 0.11
$1 = Rand 7.73 7.66 0.07
$1 = Canadian Dollar 1.05 1.04 0.01
Precious Metals
Aug 21 Aug 14 Chng
Gold $835.10 $837.60 -$2.50
Platinum $1,462.00 $1,456.00 $6.00
Stock Indexes
Aug 21 Aug 14 Chng Chng%
BSE 14,048.34 14,243.73 -195.39 -1.37%
Dow Jones Avg. 11,715.18 11,430.21 284.97 2.49%
FTSE 5,601.20 5,370.20 231.00 4.30%
Hang Seng 20,972.29 20,392.06 580.23 2.85%
S & P 500 1,300.68 1,277.72 22.96 1.80%
Yahoo! Jewelry Index 992.31 899.01 93.30 10.38%
MINING STOCKS
(pence unless noted)
Aug 21 Aug 14 Chng Chng%
USA
Abazias $1.50 $1.50 $0.00 0.00%
Birks & Mayors $2.35 $2.35 $0.00 0.00%
Blue Nile $42.74 $43.53 -$0.79 -1.81%
Charles & Colvard $0.63 $0.73 -$0.10 -13.70%
Collectors Universe $8.09 $8.25 -$0.16 -1.94%
DGSE Companies, Inc. $3.08 $2.90 $0.18 6.20%
Fuqi International $10.56 $10.21 $0.35 3.43%
JCPenney $39.04 $36.77 $2.27 6.17%
Kohls $49.93 $47.96 $1.97 4.11%
Lazare Kaplan $8.25 $8.25 $0.00 0.00%
LJ International $1.65 $1.70 -$0.05 -2.94%
Macys $20.65 $19.44 $1.21 6.22%
Man Sang $4.97 $5.00 -$0.03 -0.60%
Movado Group $23.60 $24.08 -$0.48 -1.99%
Nordstrom $30.67 $29.06 $1.61 5.54%
Saks $11.63 $10.44 $1.19 11.40%
Signet $11.47 $11.34 $0.13 1.15%
Sothebys $27.46 $25.93 $1.53 5.90%
Tiffany $43.85 $38.58 $5.27 13.66%
Wal-Mart $59.88 $58.50 $1.38 2.36%
Zale $27.92 $22.72 $5.20 22.89%
EUROPE
Bulgari €6.55 €6.60 -€0.05 -0.76%
Citizen Holdings €4.51 €4.22 €0.29 6.87%
Esa €12.70 €12.67 €0.03 0.24%
Golay-Buchel CHF 2,340.00 CHF 2,250.00 CHF 90.00 4.00%
LVMH €72.96 €69.05 €3.91 5.66%
Pinault P-R SA €76.43 €74.00 €2.43 3.28%
Richemont SA CHF 63.70 CHF 60.90 CHF 2.80 4.60%
Sakha Diamonds €0.26 €0.29 -€0.03 -10.80%
Swatch Group CHF 259.50 CHF 248.60 CHF 10.90 4.38%
Theo Fennell (pence) 46.75 46.50 €0.25 0.54%
HONG KONG
Hang HKD 1.95 HKD 2.00 -HKD 0.05 -2.50%
King Fook HKD 0.66 HKD 0.68 -HKD 0.02 -2.94%
Noble Jewelry HKD 1.00 HKD 1.00 HKD 0.00 0.00%
Tse Sui Luen HKD 0.83 HKD 0.83 HKD 0.00 0.00%
INDIA (rupee)
Classic Diamond 39.95 41.10 -1.15 -2.80%
Gitanjali Gems 234.30 244.40 -10.10 -4.13%
Rajesh Exports 46.20 49.20 -3.00 -6.10%
Reliance 2,073.70 2,212.35 -138.65 -6.27%
Su-Raj Diamonds 60.65 61.90 -1.25 -2.02%
Titan 1,239.20 1,181.55 57.65 4.88%
Zodiac JRD 24.00 25.20 -1.20 -4.76%
Shantivijay Jewels 160.00 146.00 14.00 9.59%
Shukra Jewellery 2.95 3.10 -0.15 -4.84%
Suashish Diamonds 440.60 443.35 -2.75 -0.62%
NEW ZEALAND
Michael Hill NZD 0.88 NZD 0.91 -NZD 0.03 -3.30%
SINGAPORE
Gems TV Holdings SGD 0.120 SGD 0.125 -SGD 0.005 -4.00%
Sarin Technologies SGD 0.310 SGD 0.355 -SGD 0.045 -12.68%
INDIA MARKET REPORT:
---Polished: After good activity for the past couple of weeks, trading
in the polished market has slowed considerably.
-1 point: Very good demand: +$300 whites.
Good demand: $150-$300 whites.
Fair demand: $150-$350 TTLC & $175-$250 white natts.
-2 point: Good demand: +$300 whites.
Fair demand: $125-$150 TTLB & $125-$400 TTLC.
2-7 point: Very Good demand: +$300 whites.
Good demand: $250- $300 whites.
Fair demand: $100-$150 TTLB & $125-$400 TTLC.
8-18 point: Good demand: +$600 whites.
Fair demand: $150-$200 TTLB & $200-$450 TTLC.
20 points: Good demand: +$650 whites.
Fair demand: $200-$400 whites.
25 points: Good demand: +$700 whites.
Fair demand: $200-$450 whites.
33 points: Good Demand: $1400-$1600 whites.
Fair Demand: $150-$500 whites.
50 points: Good demand: +$2000 & $1000-$1,500 whites
Fair demand: $700-$800 & $300-$500 whites.
75 points: Good demand: +$3,000 whites.
Fair demand: $700-$900 whites.
1 carat+: Good demand: +$5,000 whites.
Fair demand: $1,500-$4,500 whites.
Princess: -3 point: Fair demand: $200-$250 & $325-&375 whites.
+3 point: Fair demand: $$250-$300 & $350-$400 whites.
+9-18 point: Good demand: +14 pts $600-$650 whites
Fair demand: $225-$275 & $300-$400 whites.
20 point: Fair demand: $350-$400 whites & $750-$800 whites.
25 point: Fair demand: $350-$400 whites.
50 point: Fair demand: $600-$1,000 whites.
75 point: Good demand: $1,200-$1,400 whites.
1 carat+: Good demand: +$1,500 whites.
Marquise: -6 point: Very good demand: $400-$550 whites.
Good demand: $250-$350 whites.
+7-18 point: Very good demand: $500-$650 & +14-point $850-
$900 whites.
Good demand: $225-$300 & +14-point $300-$350
whites.
20 point: Good demand: $675-$725 & $950-$1000 whites.
Fair demand: $325-$375 whites.
25 point: Good demand: $1,000-$1,100 whites.
Fair demand: $400-$450 whites.
33 point: Good demand: $1,200-$1,400 whites.
50 point: Good demand: $1,600-$1,800 whites.
75 point: Good demand: $1,100-$1,400 & $2,600-$3,000 whites.
1 carat+: Very Good demand: +$1,200 whites.
Tapers & Baguettes:
Good demand: $550-$800 +5mm whites. $225-$300
2mm-2.5mm whites; $300-$350, 2.5mm-3mm whites;
$350-$450 3mm-4mm, $500-$600 4mm –
5mm & $175-$250 +2mm-3mm whites.
---ROUGH: Premium from the DTC sight boxes has been removed, still the
activities in the local rough market is slow. There is some movement
in Mixed lot and -0.01, star and melee which yields rough.
1-5 point: Very good movement: $80-$150 makeables; $100-$200 crystals.
Good movement: $30-$75 makeables.
Good movement: $50-$100 OW TTLB & TTLC;
Fair movement: $5-$20 OW TTLB & TTLC.
6-20 point: Good demand: $150-225 crystals; $130-$180 makeables.
Fair demand: $40-$140 makeables; $60-$80 clivage;
$50-$100 makeables; Very good movement $80-$180;
Fair demand $60-$120 fancy shapes;
$70-$120 OW TTLC & TTLB rounds.
21-50 point: Good demand: $235-300 makeables; $170-$360 crystals.
Fair demand: $110-$220 rounds; $100-$150 crystals; $70-
$130 clivage; Very good movement $150-$230 and
Fair demand $75-$100 fancy shapes; Good demand $70-$150 &
Fair demand $20-$50 OW TTLC & TTLB.
0.51-1.00 carat: Good demand: $80-$125 & $150-$350 makeables;
$125-$250 & $300-$500 crystals.
Fair demand: $70-$100 clivage; Very good demand $225-
$325 and Fair demand $70-$125 fancy shapes;
Good demand $140-$180 & Fair demand $90-$125 OW TTLC &
TTLB.
1.01-2.00 carat: Fair demand: $225-$650 rounds; $225-$800 crystals;
$125-$170 clivage; $200-$400 all fancy shapes.
Good demand $170-$225 OW TTLC & TTLB.
2.01-3.00 carat: Good demand: $225-$1,500 makeables; $500-$1,000 OW
TTLC & TTLB & $350-$1,700 crystals.
Fair demand: $300-$400 clivage; $125-$400 flats &
$500-$1,000 fancy shapes.
5.00 carat+: Very good demand: $1,200+ makeables, crystals & all fancy
shapes till L color.
Mixed Lot: Good demand: $2-$50.
Múdry sa teší objaveniu pravdy, hlupák falošnosti.
Rapaport TradeWire - Friday, September 5, 2008
News: Diamond industry focusing on Far East as Hong Kong and Shenzhen
show preparations improve trading activity. U.S. retail demand very
weak with consumers seeking deep discounts. Large expensive rough
strong and in short supply but edge has come off commercial rough with
buyers more picky and prices settling down. Israel Aug. rough imports
$373 mil. (-6%) and polished exports $207 mil. (-55%). Japan Aug.
polished diamond imports $73.96 (+1%). Hong Kong July retail sales
$24.2 bil. (+14%), but jewelry sales flat. Dubai’s Damas 1H08 sales
$653.4 mil. (+34%) and profits $44.9 mil. (+137%) on strong Arab Gulf
region sales. Whitehall liquidators accept Michael Hill Intl $5 mil.
bid for 17 stores. RAP WEBCAST: Sept. 8, Rapaport International
Diamond Conference & Web Broadcast. Live/30days, $100 Register:
idc@diamonds.net.
ANNOUNCEMENTS:
RAPAPORT INTERNATIONAL DIAMOND CONFERENCE
========================================-
Sept. 8, 2008, New York, Waldorf Astoria Hotel, 8:30-4:30
"2010, The Next Decade - The Future of the Diamond Industry"
Major Topics will include:
The impact of the new economy on the jewelry industry,
Commoditization, Branding and Profit Margins.
Webcast is available for $100, playback for 30 days.
Email: idc@diamonds.net or call 1-702-893-9400 for information.
http://www.diamonds.net/Conference/2008/Default.aspx
===========================================-
RETAIL QUOTE:
"Theres a fine line between aggressive retail promotions and panic,
and we are seeing a little bit of both right now."
---Dan Hess, founder and CEO of research firm Merchant Forecast
WORLD NEWS:
---Aug. Jewelry Sales Mixed at U.S. Retailers
Retail sales in the United States remained sluggish during August, as
the jewelry segment continued to show mixed performance. J.C. Penney
Inc. called fine jewelry the softest category. August sales fell 3.2
percent to $1.51 billion, as same store sales dropped 4.9 percent.
Kohl’s Corporation reported an increase in sales of 2.6 percent to
$1.26 billion although same-store sales fell 5.8 percent. Neiman
Marcus revenues rose 0.7 percent in August to $285 million, while
comparable revenues fell 0.5 percent, as jewelry and women’s fine
apparel performed the strongest. Saks Incorporated sales fell 6.1
percent to $200.5 million and comparable store sales decreased 5.9
percent. Fashion jewelry at Saks performed well. BJs Wholesale Club
Inc. called jewelry one of its weakest performers, but overall sales
increased 17 percent to $774.4 million while comparable store sales
rose 15.4 percent. Macy’s no longer publishes monthly sales figures.
---Hong Kong July Retail Sales +14%, Jewelry Flat
Hong Kongs retail sales in July increased 13.8 percent from one year
ago, but jewelry sales remained flat. Total retail sales grew to
approximately $24.2 billion. When accounting for the effect of
inflation, the figure shows a humbler 6.6 percent growth for the month
in terms of volume of sales. Jewelry was among the weaker performers
by volume, as were watches and clocks. For the first seven months of
the year, Hong Kongs total retail sales increased by 15.6 percent in
value and 8.9 percent in volume compared with one year ago.
---Namibia: Rough Supplies Dwindle After 100yrs of Mining
Namibias once rich diamond deposits are dwindling after a century of
exploitation, forcing miners to look for stones offshore while the
countrys fledgling cutting and polishing sector could shrink as fewer
and smaller stones are found. Namibias diamond industry is the sixth
largest in the world and is the countrys economic backbone, dominated
by international diamond giant De Beers. The company mined 2.17
million carats in 2007 in the country -- mainly average stones size of
0.44 carats. It achieved a turnover of NAD585 million.
---U.S. Aug. Manufacturing Report Reflects Weakness in Jewelry
Category
Economic activity across the manufacturing sector, including jewelry,
remained stagnant in August, according to the Institute for Supply
Management (ISM.) In the most recent Manufacturing ISM Report On
Business, the PMI indicated a slight decline in manufacturing during
August, which continued the year-long trend toward negligible growth
or a contraction each month. Manufacturing contracted in August as the
PMI registered 49.9 percent, 0.1 percentage point lower than the 50
percent reported in July. A reading above 50 percent indicates that
the manufacturing economy is generally expanding; below 50 percent
indicates that it is generally contracting.
---China Likely to Retain Position as No. 1 Gold Producer
China is set to retain its newfound position as the world’s largest
gold producer, as much of its reserves remain unexplored, according to
the China Gold Report 2008ö published by ResearchAndMarkets. China
overtook South Africa to become the largest producer of the yellow
metal in 2007. It is expected to increase output a further 7 percent
to 300 metric tons this year, which would see it keep its number one
position in 2008 as well according to the report. Demand from mainland
China for gold jewelry reached 302 tons in 2007, helping China surpass
the United States as the second largest market for gold behind India.
---Rapaport News Broadcast
Highlights from the International Jewellery Show London find a
mixed-bag of activity, and Bhushan Vora, president of the Diamond
Manufacturers Association of Canada, discusses the plans for diamond
bourse by 2009.
http://www.diamonds.net/news/NewsItem.aspx?ArticleID=23139
DIAMOND STATS:
---Japans Polished Diamond Imports +1% in July
Japan’s polished diamond imports rose 0.9 percent to $73.96 million in
July. Diamond imports from India fell 14.7 percent to $25.56 million.
Imports from Belgium rose 8.8 percent to $22.9 million, and from
Israel imports grew 41 percent to $11.9 million. For the first seven
months of the year, Japan’s polished imports decreased 8.1 percent to
$490.28 million.
---Israel Aug Imports/Exports (YTD= year to date)
Aug 08 %Chng YTD 08 %Chng
($Mil) 07 ($Mil) 07
Polished Exports $207 -55% $4,822 3%
Polished Imports $312 0% $3,084 16%
Net Polished $(165) N/A $1,738 -14%
Rough Imports $373 -6% $3,613 10%
Rough Exports $277 10% $2,766 22%
Net Rough $96 -34% $847 -19%
Diamond Account $(261) N/A $891 -10%
RETAIL & WHOLESALE NEWS:
---Weak U.S. Retail Impacts Signet 1H Sales, Profits
Signet Group plc reported that same-store sales fell 5.2 percent in
the United States, but rose 2.3 percent in the United Kingdom for its
first fiscal half ending August 2, 2008. Group sales fell 0.6 percent
to $1.591 billion. Net income fell 39 percent to $45.4 million. The
jewelry retailer stated that results from price increases remained
encouraging as the group expected to maintain gross merchandise margin
rate at 7.9 percent (10.4 percent one year ago.) Bridal, which
accounts for 45 percent of sales, performed better than average.
---Damas Profits +137% on Strong Sales in the Gulf
Dubai-based jewelry and watch retailer Damas International Limited
reported a surge in profits during its first half of fiscal 2008 as
strong market conditions in the Gulf spurred growth. Net profits grew
137 percent to AED164.8 million ($44.9 million) for the six months
ending June 30, 2008. Group revenues rose 33.7 percent to AED 2.4
billion ($653.4 million.) Damas opened 42 new stores, including 11 in
the UAE, 14 elsewhere in the Gulf and 17 outside the Gulf. The company
said it plans to open more than 80 shops by the end of 2008 to bring
the total to 569 Damas stores around the world.
---Gitanjali to Operate Jewelry Showrooms With MMTC
Gitanjali Gems has agreed to form a joint venture with trading company
MMTC Ltd to operate jewelry showrooms in India. The two companies
signed a memorandum of understanding with a view to form a joint
venture through equal investments. MMTC is the largest single exporter
of minerals from India, and is one of the country’s premier bullion
traders, handling more than 100 metric tons of gold and 500 metric
tons of silver annually.
---Kwiat Opens Retail Store on Madison Ave.
Kwiat celebrated the grand opening of its diamond boutique at 725
Madison Avenue, New York City. The opening was planned to coincide
with celebrating the family-run business centennial year. The
1,000sq.ft. store showcases a full range of offerings in a comfortable
setting and includes a private viewing room upstairs. Check Rapaports
broadcast on September 10, 2008, for more coverage of the event.
---Sothebys Oct. Hong Kong Jewels & Jadeite Sale Value at $64M
Sotheby’s Hong Kong will conduct its Magnificent Jewels and Jadeite
2008 Autumn Sale at the Hong Kong Convention and Exhibition Centre on
October 7, 2008. Some 320 lots will be offered with an estimated total
value of HKD500 million ($64 million.) The highlight of the sale is a
fancy vivid yellow diamond necklace with an estimated value of $7.4
million to $9.5 million, featuring a 102.56-carat fancy vivid yellow
diamond (pictured.) It has a flower pendant that can be detached from
the necklace and worn as a brooch.
---Gemfields Completes Exclusive License Agreement with Fabergé
Gemfields Resources plc has gained the exclusive license to use the
Fabergé brand name in respect to colored gemstones, excluding
diamonds. The gemstone producer said Monday it completed the
arrangements with Fabergé parent Pallinghurst Resources, and that it
plans to use the Fabergé name for high-end, conflict-free and
ethically mined gemstones of guaranteed provenance Fabergé gemstones
will be individually numbered and certificated to ensure traceability.
---Nagel Sues Graff for Unpaid Commission
W. Nagel International Diamond Brokers is suing Laurence Graff for
non-payment of commission owed. The High Court order claimed that in
1999 Graff agreed that Nagel would always be paid 1 percent commission
on its purchases from De Beers outside South Africa. It claims that by
2004 the agreement had been breached. François Graff, managing
director of Graff Diamonds International, told Rapaport News the suit
was completely unfounded and would be "aggressively defended."
---Movado Chairman Gedalio Grinberg to Retire
Movado Group chairman Gedalio Grinberg will retire at the end of
January 2009. Company president and chief executive Efraim Grinberg
will take over as chairman of the board in the new fiscal year.
Gedalio Grinberg, 76, will continue to serve on the board with the
title of founder and chairman emeritus.
GENERAL NEWS:
---Loose Stones, Diamond Jewelry to be Auctioned in N.J. Sept. 17
VSE Corporation and Rick Levin & Associates Inc. will conduct an
auction of seized and forfeited diamonds and diamond jewelry in New
Jersey on behalf of the U.S. Department of the Treasury. The auction
will take place at 9 a.m. on Wednesday, September 17, 2008, at the VSE
Warehouse, in Dayton, New Jersey. Registration begins at 8 a.m. day of
sale.
View the list of items:
http://www.treas.gov/auctions/treasury/gp/dayton_jewelry.shtml
---Gubelin Lab Off-premise Testing at Hong Kong Show Runs Sept.13-20
The Gubelin Gem Lab will carryout off-premise testing services at the
Hong Kong Show. The services begin September 13, 2008, and close
before the show ends on September 20. Gubelin Gem Lab will service
clients out of the Grand Hyatt near the Hong Kong Convention and
Exhibition Centre. The lab asks clients to contact them in advance
(Tel. +4141 429 1717) and be prepared to estimate the number of stones
that require testing.
---HRD Antwerp Launches Lab Link Service in Dubai
HRD Antwerp NV launched its Lab Link service in Dubai as part of its
global expansion. The move follows the introduction of Lab Link into
the Israeli, Hong Kong, and Mumbai markets during the past year. Lab
Link will allow members of the Dubai diamond sector direct access to
the HRD Antwerp - Diamond Lab.
---Kimberley Process Plenary Meeting Scheduled for Nov.
The Kimberley Process Certification Scheme (KP) has scheduled its
annual plenary meeting for November 3-6, 2008. The meeting will take
place in New Delhi, India, which holds the calendar year 2008 KP
chairmanship.
DIAMOND MINING NEWS:
---BRC DiamondCore Tender Exceeds $1M
BRC DiamondCore Ltd. generated $1.36 million in sales at the sixth
tender of diamonds from its projects in South Africa’s Northern Cape
Province. The company sold 1,351.13 carats from its Silverstreams
alluvial, De Kalk alluvial and Paardeberg East kimberlite trial mining
projects, for an average $1,010.81 per carat at the tender. The
tender, while not the companys largest of the year, exceeded the
previous two held by BRC. During the six tenders held so far this
year, BRC has generated approximately $8.96 million in sales, from
about 12,004 carats, with an average value of $746 a carat.
---Ellendale Mine Boosts 1H Diamonds Production
Gem Diamonds reported that diamond recovery across its operating mines
rose more than five-fold in the first half of 2008 as its Australia
operation at Ellendale came on stream. The company mined 283,840
carats of diamonds from January through June 2008, compared with
46,305 carats recovered one year ago. Gem Diamonds mined 233,082
carats from Ellendale, representing a 5 percent increase in
production. Gem Diamonds sold 287,693 carats of Ellendale diamonds for
$59.55 million, or $207 per carat.
---Vaaldiam Expects Duas Barras Revenues to Exceed $6M in 2008
Vaaldiam Resources expects revenues from its Duas Barras mine in
Brazil to exceed $6.5 million in 2008 as it ramps up diamond and gold
production at the site. The company launched production at Duas Barras
in September 2007 and produced 33,385 carats of diamonds valued at an
average $165 per carat in the first 11 months of operation. It expects
Duas Barras production to reach 35,000 carats of diamonds and 850
ounces troy ounces of gold in 2008.
---True North Gems Private Placement Raises $1M
True North Gems Inc. completed an initial closing of a private
placement with gross proceeds of $1.003 million. True North Gems
intends to use the majority of proceeds for exploration expenditures
and a feasibility study at the Fiskenaesset Ruby Project, located on
the west coast of Greenland.
---Sacre-Coeur Raises More than $1M in Private Placement
Sacre-Coeur Minerals Ltd. raised CAD1.55 million through a
non-brokered private placement. The company issued 1 million units at
CAD1.55 per unit to a single institutional investor.
---Namakwa Diamonds Forms Partnership for Offshore Concessions
Namakwa Diamonds has partnered with marine mining contractor Nutam to
further the development of the company’s Namibian offshore mining
concessions. Namakwa’s subsidiary Tidal Diamonds signed a memorandum
of understanding (MOU) with Nutam for an initial service agreement to
evaluate Tidal’s offshore mining and prospecting areas, and to perform
operational work including resource verification.
---Saad Investments Increases Stake in Petra Diamonds to 36%
Saad Investments Co. Ltd., now holds about 65.3 million shares
representing almost 36 percent of Petra Diamonds ordinary issued
share capital. Petra Diamonds Limited is a Bermuda registered company
and as such is not subject to the Takeover Code and accordingly there
is no obligation for a mandatory offer under the Rules of the Takeover
Code by any shareholder increasing their holding above 30 percent.
Saad Investments is registered in the Cayman Islands and operates out
of Saudi Arabia.
---Trans Hex in Talks to Buy De Beers Namaqualand Mine
Trans Hex is in exclusive talks with De Beers Consolidated Mines
(DBCM) for buying the Namaqualand Diamond Mine. Trans Hex shares rose
2.3 percent to ZAR 9 in late morning trade on the Johannesburg Stock
Exchange on Thursday following the announcement. De Beers said it
expects production at Namaqualand, South Africa’s largest alluvial
diamond mine, to reach 300,000 carats in 2008.
---Rockwell Diamonds Resumes Operations as Wage Dispute Ends
Rockwell Diamonds Inc. resumed operations at all its South Africa
mines on Wednesday after reaching a wage agreement with the National
Union of Mineworkers. The company’s Wouterspan Mine was suspended on
July 25 after employees declared industrial action over the wage
dispute. Work stoppages followed at Rockwells three other mines:
Holpan, Klipdam and Saxendrift - in mid-August when negotiations hit a
deadlock there.
ECON WATCH:
For week ending September 4, 2008
Sept 4 Aug 21 Chng
$1 = Euro 0.698 0.680 0.018
$1 = Rupee 44.7 43.7 0.9
$1 = Israel Shekel 3.57 3.60 -0.03
$1 = Rand 8.01 7.73 0.27
$1 = Canadian Dollar 1.07 1.05 0.02
Precious Metals
Sept 4 Aug 21 Chng
Gold $796.30 $835.10 -$38.80
Platinum $1,387.00 $1,462.00 -$75.00
Stock Indexes
Sept 4 Aug 21 Chng Chng%
BSE 14,899.10 14,048.34 850.76 6.06%
Dow Jones Avg. 11,188.23 11,715.18 -526.95 -4.50%
FTSE 5,362.10 5,601.20 -239.10 -4.27%
Hang Seng 20,389.48 20,972.29 -582.81 -2.78%
S & P 500 1,237.09 1,300.68 -63.59 -4.89%
Yahoo! Jewelry Index 966.95 992.31 -25.36 -2.56%
USA
Abazias $1.50 $1.50 $0.00 0.00%
Birks & Mayors $2.35 $2.35 $0.00 0.00%
Blue Nile $39.79 $42.74 -$2.95 -6.90%
Charles & Colvard $0.64 $0.63 $0.01 1.59%
Collectors Universe $7.72 $8.09 -$0.37 -4.57%
DGSE Companies, Inc. $3.10 $3.08 $0.02 0.65%
Fuqi International $11.15 $10.56 $0.59 5.59%
JCPenney $39.57 $39.04 $0.53 1.36%
Kohls $50.74 $49.93 $0.81 1.62%
Lazare Kaplan $8.00 $8.25 -$0.25 -3.03%
LJ International $1.62 $1.65 -$0.03 -1.82%
Macys $20.69 $20.65 $0.04 0.19%
Man Sang $4.32 $4.97 -$0.65 -13.08%
Movado Group $22.41 $23.60 -$1.19 -5.04%
Nordstrom $31.99 $30.67 $1.32 4.30%
Saks $11.27 $11.63 -$0.36 -3.10%
Signet $11.21 $11.47 -$0.26 -2.27%
Sothebys $25.77 $27.46 -$1.69 -6.15%
Tiffany $43.50 $43.85 -$0.35 -0.80%
Wal-Mart $59.78 $59.88 -$0.10 -0.17%
Zale $27.94 $27.92 $0.02 0.07%
EUROPE
Bulgari €7.10 €6.55 €0.55 8.40%
Citizen Holdings €5.09 €4.51 €0.58 12.86%
Esa €11.50 €12.70 -€1.20 -9.45%
Golay-Buchel CHF 2,338.00 CHF 2,340.00 -CHF 2.00 -0.09%
LVMH €71.30 €72.96 -€1.66 -2.28%
Pinault P-R SA €76.49 €76.43 €0.06 0.08%
Richemont SA CHF 64.85 CHF 63.70 CHF 1.15 1.81%
Sakha Diamonds €0.17 €0.26 -€0.08 -32.42%
Swatch Group CHF 264.50 CHF 259.50 CHF 5.00 1.93%
Theo Fennell (pence) 48.00 46.75 €1.25 2.67%
HONG KONG
Hang HKD 1.95 HKD 1.95 HKD 0.00 0.00%
King Fook HKD 0.65 HKD 0.66 -HKD 0.01 -1.52%
Noble Jewelry HKD 1.02 HKD 1.00 HKD 0.02 2.00%
Tse Sui Luen HKD 0.83 HKD 0.83 HKD 0.00 0.00%
Múdry sa teší objaveniu pravdy, hlupák falošnosti.
Rapaport TradeWire - Friday, Sept. 12, 2008
NEWS: Diamond industry heads to Hong Kong with high hopes that strong
Far East demand will sustain high price levels. U.S. holiday season
looking weak but well marketed jewelry brands may do much better than
expected. Europe and Asia buying better quality under the carat certs.
Shanghai Diamond Exchange introduces 0.3% ($3 per thousand)
transaction fee on polished diamond imports. U.S. July polished
imports at record $2 bil. (+21%) and polished exports $1.3 bil.
(+56%). Canada 2007 diamond production at 17 mil. cts (+28%) with
value at $1.44 bil (-10%). Australia 2Q08 diamond production at 3.142
million carats (-31%) but higher prices push value to $127.52 million
(+26%). Movado Group 2Q08 sales $129.7 mil. (-7%) and profits $8.14
mil. (-34%). Lazare Kaplan FY08 sales $369.7 mil. (-15%) and profits
at $7 mil. recovering from $3 mil. loss in 2Q07. Harry Winston 2Q
retail sales $81.1 mil. (+19%,) rough sales flat at $105 mil. company
profits double to $49.95 mil.
ANNOUNCEMENTS:
RAPAPORT BELGIUM ROUGH DIAMOND TENDER
Viewing By Appointment Only Sept. 15-19, 2008
Tender Close: Friday, Sept. 19 at 3:00 PM
Contact Shavit Gaistman, tender@diamonds.net, +32-3232-3300
RAPAPORT WILL EXHIBIT AT:
Shenzhen and Hong Kong shows
View details:
http://www.diamonds.net/Events/default.aspx
===========================================-
RETAIL QUOTE:
"Our businesses in Asia, Europe and the Middle East have been
sufficient to offset the general market softness in the U.S. and
Japan; this contributed to our strong retail finish for second
quarter. Together with solid results from the first quarter, the first
half of the year has put us on firm footing..."
---Thomas J. ONeill, president of Harry Winston
WORLD NEWS:
---Rio Tinto Survey Finds Rough Shortage #1 Concern for Industry
Diamond professionals consider the shortage of rough supply as the
most important challenge facing the diamond industry during the next
five years, according to a survey conducted by Rio Tinto Diamonds.
The 2008 Survey of Rio Tinto’s Diamond Business Stakeholders
revealed that of the 159 people who participated - representing a 23
percent response rate - 31 listed the supply shortage as their chief
concern for the coming years.
The second biggest challenge was pricing and lower profit margins, as
expressed by 20 stakeholders, while synthetic / artificial diamonds
was most prevalent for 19 participants. Other major issues included
‘reputation, image, and marketing issues;’ supply chain transparency;
and Kimberley Process compliance. Just eight respondents said economic
conditions were the most important challenges facing the industry.
---Shanghai Introduces Transaction Fee on Polished Diamond Imports
The Shanghai Diamond Exchange (SDE) adds a transaction fee on polished
diamonds imported to China beginning October 1, 2008. Importers will
pay a 0.3 percent transaction fee on the import value of their goods.
The minimum charge on any shipment will be CNY 300 (approximately
$44.) The fee is in addition to the 4 percent value added tax (VAT) on
imports.
---South Africas 2Q Gold Production -10%
South Africa’s gold production nationwide fell 10.4 percent to 56,933
kilograms in the second quarter of 2008 as the country’s electricity
crisis continued to impact the sector. The Chamber of Mines of South
Africa reported that production from its members also fell 12.9
percent to 47,329.8 kilograms in April through June from one year ago.
For the first half of 2008, South Africa’s production declined 13.6
percent to 109,160.8 kg.
---Rapaport News Broadcast
Weak retail in the U.S. continues to dampen market spirit and trade,
but Kwiat bucks those worries and opens a beautiful new store on
Madison Ave., New York. The Harry Oppenheimer Israel Diamond Museum
opened Apples of Gold in Pictures of Silver an exhibition of rare
and ancient jewelry excavated at various archeological sites in
Israel.
http://www.diamonds.net/news/NewsItem.aspx?ArticleID=23267
DIAMOND STATS:
---USA July Imports/Exports (YTD= year to date)
July 08 %Chng YTD 08 %Chng
($Mil) 07 ($Mil) 07
Polished Imports $2,021 21% $12,350 18%
Polished Exports $1,279 56% $9,078 49%
Net Polished $ 742 -12% $3,272 -25%
Rough Imports $ 97 41% $546 11%
Rough Exports $ 41 24% $252 -11%
Net Rough $ 56 56% $294 40%
Diamond Account $ 798 -9% $3,566 -22%
---Australias 2Q Diamond Production -31% But Export Values Rise
Australias diamond production fell 30.5 percent to 3.142 million
carats during the three months ending June 30, 2008. Australia
exported all 3.142 million carats of diamonds during the quarter and
exports by value rose 26.4 percent to AUD 158 million ($127.52
million,) from one year ago. The average price on diamond exports rose
82 percent to AUD 50.28 ($40.58) per carat.
---Russias 1H08 Rough Exports at $955M
Russia exported 14.361 million carats in rough diamonds worth $955
million in the first half of 2008. The country exported the bulk of
rough, or 10.447 million carats in diamonds ($711 million,) to the
European Union, and imported 73,289 carats ($18 million) from Europe.
Russia exported 52,437 carats to the United States during the same
period with a value of $9.475 million, according to U.S. government
data.
---Canada’s Diamond Production +28% to 17M Carats in 2007
Canada’s diamond production rose 28 percent to 17 million carats in
- Production by value fell 9.6 percent to $1.44 billion during the
year.
RETAIL & WHOLESALE NEWS:
---Harry Winston 2Q Sales +7%, Profits Increase for Both Segments
Harry Winston Diamond Corporations consolidated sales for its fiscal
second quarter of 2009 rose 7 percent, generating a 23 percent
increase in gross margin and a 30 percent increase in consolidated
earnings from operations. Quarterly sales were $186.1 million and net
earnings more than doubled to $49.947 million, which included a net
$5.3 million foreign exchange gain. Rough diamond sales were flat at
$105 million, but higher prices offset lower carat production. The
retail segment recorded a 19 percent increase in sales to $81.1
million. Gross margin as a percentage of retail sales rose to 49.3
percent from 47.8 percent in second quarter fiscal 2008. Earnings from
retail operations rose 82 percent to $5.91 million.
---Lazare Kaplan FY08 Sales Drop But Profits Soar to $7M
Lazare Kaplan International Inc.s fourth fiscal quarter sales fell
2.6 percent to $94.4 million for the period ending May 31, 2008. Gross
margin rose from 5.6 percent to 10.4 percent. Net income for the
fourth quarter rose to $3.178 million from $154,000 one year ago.
Lazare Kaplans full fiscal year sales fell 14.9 percent to $369.7
million. Gross margin rose from 5.3 percent to 8.9 percent. Net income
for the fiscal year came in at $7.2 million -- up from a loss of $2.97
million in fiscal 2007.
---Movado Group 2Q Sales -7%, Net Income -34%
Movado Group sales for three months ending July 31, 2008, fell 7
percent to $129.7 million. Cost of sales fell 18 percent to $45.8
million, but selling and general administration expenses rose 9
percent to $73 million, during this second quarter for Movados fiscal
year 2009. Gross profit (65 percent of sales) was flat at $83.9
million, but net income fell 33.6 percent to $8.136 million.
---Jubilee Diamond Sets IPO Date for Dec. 08
Jubilee Enterprise, a diamond and jewelry vendor, will hold its
initial public offering (IPO) and list on Thailands Market for
Alternative Investment in December. The marketer of the Jubilee
Diamond brand will float 55 million new shares at one baht (3-cents.)
---Kristall to Increase Rough Buying Abroad by Factor of Eight
Kristall of Smolensk, Russia’s biggest diamond cutting enterprise
plans to spend "at least $25 million" on rough diamonds abroad this
year. Kristall is De Beers sole Russian sightholder, but currently
buys 65 percent of its rough from Russian diamond miner ALROSA.
Kristall’s general director, Maxim Shkadov, has said the company was
buying more rough diamonds abroad partly because ALROSA had increased
prices.
---Five Pound Pearl is a Record Says EGL USA
EGL USA authenticated one of the largest pearls ever to be discovered
and documented. The brain-shaped specimen — a giant non-nacreous
natural blister pearl — weighs an incredible five pounds (2.267 kilos)
and measures some six inches in length. It was found in the waters off
the Philippines in a giant clam.
GENERAL NEWS:
---GIA GemFest Hong Kong 2008 on Sept. 19
The Gemological Institute of America (GIA) Alumni Association will
hold its GemFest Hong Kong 2008 during the Hong Kong Jewellery & Watch
Fair on Friday, September 19 at the Hong Kong Convention and
Exhibition Centre in Room 601.
---Seminar: Legal Compliance is NOT Optional Comes to 47th Street in
Oct.
Jewelers Vigilance Committee (JVC) will present “Legal Compliance is
NOT Optional” to members of the New York City’s 47th Street Business
Improvement District on Wednesday, October 29, 2008, from 9:30 a.m. to
11:00 a.m. This seminar is exclusive for Diamond District businesses.
To register, visit JVC’s Web site: www.jvclegal.org. For questions,
contact the BID, 212-302-5739 or JVC, 212-997-2002.
---IGI Launches Diamond Typing Service
The International Gemological Institute (IGI) added a new
identification offering to its existing gemological services. IGI
Diamond Typing, available via the New York laboratory, divides
diamonds into four major types, Ia, Ib, IIa and IIb, based upon the
concentration levels of nitrogen and/or boron in a given stone, as
well as the state of aggregation of present nitrogen within its
crystal lattice. If a diamond is determined fit for color treatment,
knowing the type aids in establishing the proper treatment conditions
(temperature, pressure, irradiation, etc.) and assists in forecasting
the color of the diamond after treatment.
WHO IS NEWS:
---ALROSAs Sergey Oulin Receives Belarus Order of Honor
ALROSA vice president Sergey Oulin was awarded an Order of Honor by
special decree of the President of Belarus Alexander Lukashenko. Oulin
was presented the award on September 2, 2008, for "his considerable
personal contribution to developing international trade and economic
relations in the diamond industry." Oulin was appointed vice president
of ALROSA in December 2007.
---IDI Appoints Alissa Goren Chief Marketing Officer
The Israel Diamond Institute Group of Companies (IDI) appointed Alissa
Goren as its deputy managing director and chief marketing officer to
be responsible for implementing IDI’s marketing strategy. Goren joined
IDI in 2000 and has served as the organization’s director of
marketing, public relations and trade shows since 2004. IDI explained
that her promotion was in keeping with the groups reorganization
which has taken place over the past year.
DIAMOND MINING NEWS:
---RBC Lowers Price Target on Gem Diamonds, Firestone, Kopane, Pangea
RBC Capital Markets lowered its 12-month price target for Gem Diamonds
due to expected higher costs at the miner’s Ellendale operation in
Australia and lost production at its Cempaka mine in Indonesia. RBC
set a 12 month share target price for Gem Diamonds at GBP 12.06, down
from GBP 14.20. Firestone Diamonds was lowered to GBP 1.40 from GBP
2.30; Kopane Diamond Developments was lowered to GBP 0.13 from GBP
0.20; and Pangea Diamondfields was lowered to GBP 0.40 from GBP 0.70.
---Investment Firm Bids $86M for Rockwell Diamonds
Pala Investments Holdings Ltd offered $85.7 million to buy up Rockwell
Diamonds shares. The (British) Channel Islands-based strategy
investment company owns approximately 20 percent of the junior diamond
miner. Rockwell called the offer opportunistic and urged shareholders
not to tender their shares until the board of directors has reviewed
the proposed transaction.
---Tawana Resources Uses Tender to Assess Diamond Value
Tawana Resources placed a parcel of 222.71 carats of diamonds from its
Kareevlei project on tender to better assess the value of the stones.
The diamonds were valued at an average $169 per carat with one 3.741
carat stone valued at $2,800 per carat. The parcel was withdrawn from
the sale after the close of the tender. The value derived from the
tender process was 40 percent higher than the average value of
diamonds from a kimberlite parcel from Kareevlei assessed by
independent valuators in 2005.
---ALROSA Green Lights Namibia Diamond Prospecting
ALROSA’s board gave the green light to commence prospecting work to
identify the diamond potential at the Vryheid-Ritfontein kimberlite
field in Namibia. The company acknowledged the viability of diamond
prospecting in the field given the available geological data and
experience acquired by ALROSA geologists in 2007 from similar
prospecting carried out at the nearby Warmbad area.
---Gemfields Acquires Madagascar Color Gemstone Miner
Gemfields Resources plc acquired Madagascar-based color gemstone
producer Oriental Mining. Oriental has the rights to 15 exploration
licenses covering emeralds, rubies, sapphires, tourmalines and garnets
in the Antananarivo, Fianarantsoa and Toliara provinces of Madagascar.
It also has the right to five exploration licenses that are pending
approval from the Madagascan Ministry of Energy and Mines, Gemfields
explained. Gemfields recently gained the exclusive license to use the
Fabergé brand name in respect to colored gemstones, excluding
diamonds.
ECON WATCH:
For week ending September 11, 2008
Sept 11 Sept 4 Chng
$1 = Euro 0.716 0.698 0.017
$1 = Rupee 45.9 44.7 1.2
$1 = Israel Shekel 3.63 3.57 0.06
$1 = Rand 8.15 8.01 0.15
$1 = Canadian Dollar 1.08 1.07 0.01
Precious Metals
Sept 11 Sept 4 Chng
Gold $748.90 $796.30 -$47.40
Platinum $1,138.00 $1,387.00 -$249.00
Stock Indexes
Sept 11 Sept 4 Chng Chng%
BSE 14,324.29 14,899.10 -574.81 -3.86%
Dow Jones Avg. 11,433.71 11,188.23 245.48 2.19%
FTSE 5,318.40 5,362.10 -43.70 -0.81%
Hang Seng 19,388.72 20,389.48 -1,000.76 -4.91%
S & P 500 1,249.05 1,237.09 11.96 0.97%
Yahoo! Jewelry Index 1,171.56 966.95 204.61 21.16%
USA
Abazias $1.50 $1.50 $0.00 0.00%
Birks & Mayors $2.25 $2.35 -$0.10 -4.26%
Blue Nile $39.21 $39.79 -$0.58 -1.46%
Charles & Colvard $0.57 $0.64 -$0.07 -10.94%
Collectors Universe $7.34 $7.72 -$0.38 -4.92%
DGSE Companies, Inc. $2.67 $3.10 -$0.44 -14.03%
Fuqi International $10.59 $11.15 -$0.56 -5.02%
JCPenney $43.22 $39.57 $3.65 9.22%
Kohls $52.53 $50.74 $1.79 3.53%
Lazare Kaplan $7.63 $8.00 -$0.37 -4.63%
LJ International $1.31 $1.62 -$0.31 -19.14%
Macys $21.85 $20.69 $1.16 5.61%
Man Sang $3.64 $4.32 -$0.68 -15.74%
Movado Group $24.48 $22.41 $2.07 9.24%
Nordstrom $35.53 $31.99 $3.54 11.07%
Saks $11.64 $11.27 $0.37 3.28%
Signet $23.12 $11.21 $11.91 106.24%
Sothebys $23.03 $25.77 -$2.74 -10.63%
Tiffany $42.72 $43.50 -$0.78 -1.79%
Wal-Mart $63.17 $59.78 $3.39 5.67%
Zale $26.99 $27.94 -$0.95 -3.40%
EUROPE
Bulgari €6.77 €7.10 -€0.33 -4.65%
Citizen Holdings €5.32 €5.09 €0.23 4.52%
Esa €10.05 €11.50 -€1.45 -12.61%
Golay-Buchel CHF 2,338.00 CHF 2,338.00 CHF 0.00 0.00%
LVMH €67.34 €71.30 -€3.97 -5.56%
Pinault P-R SA €72.70 €76.49 -€3.79 -4.95%
Richemont SA CHF 59.10 CHF 64.85 -CHF 5.75 -8.87%
Sakha Diamonds €0.34 €0.17 €0.16 94.22%
Swatch Group CHF 234.20 CHF 264.50 -CHF 30.30 -11.46%
Theo Fennell (pence) 46.00 48.00 -€2.00 -4.17%
HONG KONG
Hang HKD 1.69 HKD 1.95 -HKD 0.26 -13.33%
King Fook HKD 0.65 HKD 0.65 HKD 0.00 0.00%
Noble Jewelry HKD 0.95 HKD 1.02 -HKD 0.07 -6.86%
Tse Sui Luen HKD 0.83 HKD 0.83 HKD 0.00 0.00%
INDIA (rupee)
Classic Diamond 40.05 40.75 -0.70 -1.72%
Gitanjali Gems 218.35 238.70 -20.35 -8.53%
Rajesh Exports 46.80 49.05 -2.25 -4.59%
Reliance 1,997.60 2,152.65 -155.05 -7.20%
Su-Raj Diamonds 61.20 61.40 -0.20 -0.33%
Titan 1,178.35 1,244.25 -65.90 -5.30%
Zodiac JRD 24.05 25.00 -0.95 -3.80%
Shantivijay Jewels 160.85 155.50 5.35 3.44%
Shukra Jewellery 2.55 2.82 -0.27 -9.57%
Suashish Diamonds 445.30 435.30 10.00 2.30%
NEW ZEALAND
Michael Hill NZD 0.88 NZD 0.90 -NZD 0.02 -2.22%
SINGAPORE
Gems TV Holdings SGD 0.110 SGD 0.115 -SGD 0.005 -4.35%
Sarin Technologies SGD 0.300 SGD 0.305 -SGD 0.005 -1.64%
MINING STOCKS
(pence unless noted)
Sept 11 Sept 4 Chng Chng%
USA
Anglo American $20.50 $21.26 -$0.76 -3.57%
CANADA
Archangel CAD 0.50 CAD 0.56 -CAD 0.07 -11.61%
Harry Winston CAD 18.91 CAD 19.61 -CAD 0.70 -3.57%
Mountain Province CAD 3.35 CAD 4.20 -CAD 0.85 -20.24%
Peregrine Diamonds CAD 0.40 CAD 0.39 CAD 0.01 2.56%
Rockwell Diamonds CAD 0.32 CAD 0.21 CAD 0.11 50.00%
Shore Gold CAD 1.05 CAD 1.28 -CAD 0.23 -17.97%
Stornoway Diamond CAD 0.26 CAD 0.28 -CAD 0.02 -5.45%
True North Gems CAD 0.23 CAD 0.28 -CAD 0.05 -17.86%
UK (pence)
African Diamonds 46.6 46.6 0.0 0.00%
BHP Billiton 1,405.0 1,486.0 -81.0 -5.45%
Firestone Diamonds 56.0 65.0 -9.0 -13.84%
Gem Diamonds 729.5 825.0 -95.5 -11.58%
Mano River 7.0 7.1 -0.1 -1.75%
Mwana Africa 25.5 27.8 -2.3 -8.11%
Namakwa Diamonds 128.0 141.0 -13.0 -9.22%
Petra Diamonds 105.8 109.0 -3.3 -2.98%
Rio Tinto plc 4,158.00 4,471.00 -313.0 -7.00%
INDIA MARKET REPORT:
---Polished: The markets resumed some activity following Jain and
traders are preparing for the upcoming Hong Kong show. Business in the
local market is greatly affected by weakening rupee against the
dollar.
-1 point: Good demand: +$300 whites.
Fair demand: $150-$300 whites;
$150-$350 TTLC & $175-$250 white natts.
-2 point: Good demand: +$300 whites.
Fair demand: $125-$150 TTLB & $125-$400 TTLC.
2-7 point: Good demand: +$250 whites.
Fair demand: $100-$150 TTLB & $125-$400 TTLC.
8-18 point: Good demand: +$600 whites.
Fair demand: $150-$200 TTLB & $200-$450 TTLC.
20 points: Good demand: +$650 whites.
Fair demand: $200-$400 whites.
25 points: Good demand: +$700 whites.
Fair demand: $200-$450 whites.
33 points: Good Demand: $1400-$1600 whites.
Fair Demand: $150-$500 whites.
50 points: Good demand: +$2000 & $1000-$1,500 whites
Fair demand: $700-$800 & $300-$500 whites.
75 points: Good demand: +$3,000 whites.
Fair demand: $700-$900 whites.
1 carat+: Good demand: +$5,000 whites.
Fair demand: $1,500-$4,500 whites.
Princess: -3 point: Fair demand: $200-$250 & $325-&375 whites.
+3 point: Fair demand: $$250-$300 & $350-$400 whites.
+9-18 point: Good demand: +14 pts $600-$650 whites
Fair demand: $225-$275 & $300-$400 whites.
20 point: Fair demand: $350-$400 whites & $750-$800 whites.
25 point: Fair demand: $350-$400 whites.
50 point: Fair demand: $600-$1,000 whites.
75 point: Good demand: $1,200-$1,400 whites.
1 carat+: Good demand: +$1,500 whites.
Marquise: -6 point: Good demand: $250-$350 & $400-$500 whites.
+7-18 point: Very good demand: $500-$650 & +14-point $850-
$900 whites.
Good demand: $225-$300 & +14-point $300-$350
whites.
20 point: Good demand: $675-$725 & $950-$1000 whites.
Fair demand: $325-$375 whites.
25 point: Good demand: $1,000-$1,100 whites.
Fair demand: $400-$450 whites.
33 point: Good demand: $1,200-$1,400 whites.
50 point: Good demand: $1,600-$1,800 whites.
75 point: Good demand: $1,100-$1,400 & $2,600-$3,000 whites.
1 carat+: Very Good demand: +$1,200 whites.
Tapers & Baguettes:
Good demand: $550-$800 +5mm whites. $225-$300
2mm-2.5mm whites; $300-$350, 2.5mm-3mm whites;
$350-$450 3mm-4mm, $500-$600 4mm –
5mm & $175-$250 +2mm-3mm whites.
---ROUGH: Market resumed trade after Jain. Some financial hardships
seen in Surat market (state of Gujarat).
1-5 point: Very good movement: $80-$150 makeables; $100-$200 crystals.
Good movement: $30-$75 makeables.
Good movement: $50-$100 OW TTLB & TTLC;
Fair movement: $5-$20 OW TTLB & TTLC.
6-20 point: Good demand: $150-225 crystals; $130-$180 makeables.
Fair demand: $40-$140 makeables; $60-$80 clivage;
$50-$100 makeables; Very good movement $80-$180;
Fair demand $60-$120 fancy shapes;
$70-$120 OW TTLC & TTLB rounds.
21-50 point: Good demand: $235-300 makeables; $170-$360 crystals.
Fair demand: $110-$220 rounds; $100-$150 crystals; $70-
$130 clivage; Very good movement $150-$230 and
Fair demand $75-$100 fancy shapes; Good demand $70-$150 &
Fair demand $20-$50 OW TTLC & TTLB.
0.51-1.00 carat: Good demand: $80-$125 & $150-$350 makeables;
$125-$250 & $300-$500 crystals.
Fair demand: $70-$100 clivage; Very good demand $225-
$325 and Fair demand $70-$125 fancy shapes;
Good demand $140-$180 & Fair demand $90-$125 OW TTLC
& TTLB.
1.01-2.00 carat: Fair demand: $225-$650 rounds; $225-$800 crystals;
$125-$170 clivage; $200-$400 all fancy shapes.
Good demand $170-$225 OW TTLC & TTLB.
2.01-3.00 carat: Good demand: $225-$1,500 makeables; $500-$1,000 OW
TTLC & TTLB & $350-$1,700 crystals.
Fair demand: $300-$400 clivage; $125-$400 flats &
$500-$1,000 fancy shapes.
5.00 carat+: Very good demand: $1,200+ makeables, crystals & all fancy
shapes till L color.
Múdry sa teší objaveniu pravdy, hlupák falošnosti.
Rapaport TradeWire - Friday, September 19, 2008
News: Global financial meltdown destroys confidence in banks and
traditional financial institutions as it sharply reduces consumer
wealth and luxury demand. Gold surges $140 to $918oz. Very strong
traffic at Hong Kong show with some Far East buying of commercial
goods but great confusion and concern for large stones as dealers try
to project impact of plummeting stock market and surging gold prices.
Luxury demand is in deep trouble but investment demand may save big
stones. South Africa blocks some diamond imports and exports delaying
DTC South African sight. ALROSA rough auction nets $15 mil. (80% sold
by lot). NY court dismisses Fortunoff’s Chapter 11 bankruptcy after
deal reached with creditors. Whitehall to sell off 355 remaining
leases. Belgium Aug. rough imports at $665 mil. (-18%) and polished
exports at $405 mil. (-16%). India Aug. rough imports at $665 mil.
(-3%) and polished exports $1.42 bil. (+7%).
ANNOUNCEMENTS:
Did you miss the Rapaport International Diamond Conference?
Pay-per-view webcast of the entire event is now available:
https://www.diamonds.net/Conference/2008/Register.aspx
===================================================
RETAIL QUOTE:
TNS Retail Forward estimates U.S. Christmas retail sales to increase
1.5 percent to $527 billion (not accounting for inflation / price
increases.)
"I think the current environment is putting a chill on shoppers
spending in ways we havent seen for a long time. One of the hallmarks
of consumer spending is that shoppers were quite resilient. But the
price shocks that households have seen, the shocks to the financial
system have left them shaken."
---Frank Badillo
Senior economist for TNS Retail Forward
WORLD NEWS:
---Worst U.S. Crisis Since 1930s - No End in Sight
Hopeful expectations for a quick resolution are fading fast as the
financial crisis that began 13 months ago entered a new, far more
serious phase. The consequences for companies and chief executives who
hope for better times in which to raise capital, sell assets or
acknowledge losses -- are now clear and brutal, as falling share
prices and fearful lenders send troubled companies into ever-deeper
holes. Many failures have now resulted in government intervention that
is more extensive and expensive, and carries greater risk of
unintended consequences.
---S. Africa Export Issues Arise Before De Beers Sight
De Beers rough for its September sight didnt leave South Africa for
sorting in London. But the Diamond Trading Company vowed to supply
South Africa clients with unsorted rough (although on a much smaller
than normal scale) one week late. Sights in London, Botswana, and
Namibia will proceed as planned September 22-26.
The issue centers around required exemption filings, and delays in
implementing the Diamond Export Levy Act. Some dealers in South Africa
have experienced trouble shipping goods out this week, but others
(especially for smaller stones) have reported no issue with exporting.
---ALROSA Sept. Diamond Auction Nets $15M
ALROSA sold $15 million worth of rough diamonds at its 31st
International Diamond Auction in Moscow. The sales value represented a
premium of approximately 16 percent. A total of 482 diamonds, about
7,700 carats, in 148 lots were offered. Eight-percent was sold by lot.
---Thailand to Easily Beat 08 Target Jewelry Exports
Gem and jewelry exports from Thailand came in at $4.53 billion for the
first seven months of 2008. According to the Thai Gem & Jewelry
Traders Association the projected annual increase by the end of the
year was targeted at 20 percent or $5.92 billion, which now looks easy
to beat by nearly $2 billion.
---Russia Arms Exporter to Accept Diamonds, Commodities for Payment
Rosoboronexport [Russias state-controlled arms exporter] will offer
potential clients in Africa its military equipment and supplies in
exchange for export commodities such as diamonds, timber, cotton, palm
oil, and coffee.
---Rapaport News Broadcast
Gold jumps the most in single day as the U.S. financial crisis
worsens; DTC postpones its South Africa sight one week, but also gives
access to its marketing services to four former sightholders;
Fortunoff bankruptcy ends and Whitehall assigns a realty firm to sell
355 leases.
http://www.diamonds.net/news/NewsItem.aspx?ArticleID=23367
DIAMOND STATS:
---Belgium Aug. Imports/Exports (YTD= year to date)
Aug08 %Chng YTD 08 %Chng
($Mil) 07 ($Mil) 07
Polished Exports $405 -16% $8,399 22%
Polished Imports $929 31% $8,289 28%
Net Polished ($525) N/A $110 -71%
Rough Imports $665 -18% $8,186 7%
Rough Exports $937 9% $7,940 17%
Net Rough ($273) N/A $246 -72%
Diamond Account ($252) -45% ($136) 73%
---India Aug. Imports/Exports (YTD= year to date)
Aug08 %Chng YTD 08 %Chng
($Mil) 07 ($Mil) 07
Polished Export $1,423 7% $10,613 25%
Polished Imports $592 23% $4,958 110%
Net Polished $831 -3% $5,655 -7%
Rough Imports $664 -3% $7,509 14%
Rough Exports $68 43% $559 40%
Net Rough $596 -6% $6,950 12%
Diamond Account $235 7% ($1,296) N/A
RETAIL & WHOLESALE NEWS:
---Damiani Buys Rocca for $10M
Damiani purchased Rocca for EUR 7 million ($10.08 million.) Damiani
will pay EUR 2.05 million in shares and EUR 4.5 million in cash. Rocca
has 22 stores under direct management selling high-end watches and
jewelry. Rocca had revenues in 2007 of approximately EUR 39.2 million
($56.4 million,) and a net loss of approximately EUR 2 million ($2.87
million.)
---Court Dismisses Fortunoff Bankruptcy Case
New York bankruptcy court dismissed retailer Fortunoff’s Chapter 11
case. Fortunoff filed for bankruptcy in February and was subsequently
bought by NRDC Equity Partners, which owns the Lord & Taylor
department store chain. Fortunoff requested the court dismiss its case
upon reaching an agreement with its creditors.
---Whitehall Appoints DJM Realty to Dispose of 355 Retail Leases
Whitehall Jewelers Holdings Inc. selected DJM Realty, a Gordon
Brothers Group Company, to manage the national disposition of all
remaining (355) retail store leases across 38 states. The engagement
is subject to bankruptcy court approval and could conduct an auction
sometime in late October.
---DTC Names Four Former Sightholders to Program
The Diamond Trading Company launched its ‘DTC accredited business
program’ and named four non-sightholders to the scheme. Livingstones;
Premier Diamond Cutting Ltd; Richold SA; and Shree Ramkrishna Export,
each of which lost their sightholder status this year, qualify now for
DTC marketing services. DTC chose the four for having complied with
the De Beers’ Diamond Best Practice Principles.
---Signet Added to the Russell Indexes
Signet Jewelers Limited is now a member of the broad-market Russell
3000 Index, Russell 3000 Value Index, Large Cap Russell 1000 Index,
Russell 1000 Value Index, Russell 2500 Index, Russell 2500 Value
Index, Russell Midcap Index, Russell Midcap Value Index, Russell Small
Cap Completeness Index and the Russell Small Cap Completeness Value
Index.
---Collectors Universe Delays Filing Annual Report
Collectors Universe Inc. notified the Securities and Exchange
Commission of a delay in the filing of the companys annual report for
fiscal year ending June 30, 2008. Collectors Universe, which is the
parent of GCAL and AGL, expects to complete and file its report before
permitted extension period ends. Preliminary financial information for
the fiscal year and fourth quarter indicated that the firm expects to
report (before giving effect to the impairment charge) increases in
its operating loss ($6.5 million) and pre-tax loss ($5.4 million) for
fiscal 2008, which is up from $2.9 million and $800,000 one year ago.
---Ponahalo Diamonds Highlight Christies NY Oct. Sale
Christie’s "Jewels the New York Sale" will offer diamonds, colored
diamonds and gemstones, and will include 273 lots with an expected
sale of more than $35 million. Leading the auction are two magnificent
diamonds weighing approximately 102.11 carats and 70.87 carats, cut
from a rough diamond of 316.15 carats called The Ponahalo, which was
discovered at De Beers Venetia mine.
---Shenzhen Companies Hold 70% of Chinas Jewelry Market
Some 2,100 registered jewelry companies in southern Shenzhen take a 70
percent of the share in Chinas jewelry market with a combined annual
production value of CNY 60 billion ($8.77 billion.) The volume of
gold, diamond, platinum processed by Shenzhen jewelry providers
represents around 90 percent of the total trading volume of Shanghai
Gold Exchange and Shanghai Diamond Exchange, according to statistics.
---Fitch Foresees Weak Retail Season at Dpt. Stores
Fitch Ratings predicts weak retail sales during the Christmas season
in the United States as economic pressures continue to strain
consumers cash flow. In the groups Retail Register report, Fitch
stated that apparel and home furnishing retailers would be hit
hardest, but food-related shops would show relative strength.
Discounters and warehouse clubs should continue to outperform other
retail formats.
---U.S. Shoppers Adopt Frugal Habits in August
Retail sales in the United States fell 0.3 percent from July to August
to $381.2 billion, according to data from the Commerce Department. The
governmental agency does not adjust for price increases, but said
compared with August 2007 retail sales rose 1.6 percent. Compared with
one year ago, department store sales fell 4.2 percent in August to
$16.84 billion.
Wholesale price inflation fell almost 1 percent in August from July
primarily due to a drop in oil prices. For the year though wholesale
prices are up 10 percent - the largest increase in 27 years. Core
inflation, which excludes energy and food price hikes, rose 0.2
percent from July to August. But the government revised upwards the
figure from June to July to 0.7 percent. Core inflation for the past
12 months is up 4 percent.
WHO IS NEWS:
---Sears Appoints New Jewelry Unit President
Sears Holdings Corporation appointed Michelle Pearlman as president of
its business unit. Pearlman joins Sears from Ann Taylor Stores
Corporation, where she served as executive vice president for ATC
Direct, leading its Internet sales division.
---Rosy Blue: New Generation of Management for Israel
Dilip Shah will leave Rosy Blue Israel to pursue other opportunities
in the diamond industry. Amish Mehta and Rosy Blue South Africa
chairman Vishal Mehta will be leading the new Israel team.
---AGTA 2009 Election Results
The American Gem Trade Association (AGTA) announced 2009 election
results for the organizations board of directors. The new officers
will serve three year terms and will be introduced at the AGTA
membership meeting February 8, 2009, in Tucson, Arizona.
President: Benjamin Hackman, Intercolor USA
Vice president: Kambiz Sabouri, Gem 2000 Inc.
Secretary: John Bachman, John M. Bachman Inc.
Treasurer: Sampat Poddar, Byrex Gems Inc.
Director: Ruben Bindra, B & B Fine Gems
Director: Ron Ringsrud, Ronald Ringsrud Co.
Director: Ambrish Sethi, Manak Jewels Inc.
GENERAL NEWS:
---Robbers Seriously Wound Dealer, Steal $1.5M in Goods
A jewelry salesman from Florida was stabbed and seriously injured near
OHare International Airport. The salesman had parked his car and was
heading the airport when three men attacked, slashed the dealers
wrists, and made off with $500,000 in diamonds and about $1 million in
jewelry. The attackers drove away from the scene in a 1990s model
silver sedan with the license plate covered.
---Pakistan Abolishes Duty on Diamonds, Precious Metals
Pakistan abolished customs duties on diamonds and other jewelry
imports in effort to boost industry related trade. The countrys gem
and jewelry industry has also scheduled a Pakistan Gems and Jewellery
Expo for Houston, Texas, in October.
---IDMA to Hold 2008 Presidents Meeting in Botswana
The International Diamond Manufacturers Association (IDMA) will hold
its presidents meeting in Gaborone, Botswana, November 10-12, 2008.
---Register Online for Antwerp Diamond Conference 2008
Registration is open for the fifth annual Antwerp Diamond Conference,
which is scheduled for November 17-18, 2008, in Antwerp.
http://www.antwerpdiamondconference.be/en/home.aspx
Keynote speakers at the gala dinner (November 17) include:
- Jacky Roth, president Antwerp World Diamond Centre
- H.R.H. King Letsie III of Lesotho
- Sir Richard Branson, CEO Virgin Group
DIAMOND MINING NEWS:
---Gemfields Proposes Offer to Tanzanite One
Gemfields Resources Plc proposed an offer for Tanzanite One Limited of
45-pence per share. The offer values the whole of issued common share
capital of Tanzanite One at approximately GBP33 million ($60 million,)
representing a premium of approximately 76.5 percent. Tanzanite One
advised shareholders to take no action until the board has examined
the offer.
---ALROSA Targets Southern D.R. Congo
ALROSA and the Democratic Republic of the Congo reached an agreement
for new diamond mining projects in the southern part of the country.
Recently, ALROSA’s board gave the green light to commence prospecting
work to identify the diamond potential at the Vryheid-Ritfontein
kimberlite field in Namibia. ALROSA also holds two joint diamond
projects in neighboring Angola.
---BHP Expects Short Term Volatility in Commodity Markets
BHP Billiton Ltd expects commodity markets to remain volatile in the
short term but has forecast Asian demand for its products to continue.
Asias economic growth would slow at some point, but the slowdown
would be concentrated in regions reliant upon the light export sector.
ECON WATCH:
For week ending September 18, 2008
Sept 18 Sept 11 Chng
$1 = Euro 0.697 0.716 -0.019
$1 = Rupee 46.2 45.9 0.4
$1 = Israel Shekel 3.53 3.63 -0.10
$1 = Rand 8.18 8.15 0.03
$1 = Canadian Dollar 1.06 1.08 -0.02
Precious Metals
Sept 18 Sept 11 Chng
Gold $853.00 $748.90 $104.10
Platinum $1,088.00 $1,138.00 -$50.00
Stock Indexes
Sept 18 Sept 11 Chng Chng%
BSE 13,315.60 14,324.29 -1,008.69 -7.04%
Dow Jones Avg. 11,019.69 11,433.71 -414.02 -3.62%
FTSE 4,880.00 5,318.40 -438.40 -8.24%
Hang Seng 17,632.46 19,388.72 -1,756.26 -9.06%
S & P 500 1,206.51 1,249.05 -42.54 -3.41%
Yahoo! Jewelry Index 1,156.38 1,171.56 -15.18 -1.30%
USA
Abazias $1.40 $1.50 -$0.10 -6.67%
Birks & Mayors $2.08 $2.25 -$0.17 -7.56%
Blue Nile $49.25 $39.21 $10.04 25.61%
Charles & Colvard $0.49 $0.57 -$0.08 -14.04%
Collectors Universe $7.28 $7.34 -$0.06 -0.82%
DGSE Companies, Inc. $2.52 $2.67 -$0.14 -5.44%
Fuqi International $8.92 $10.59 -$1.67 -15.77%
JCPenney $38.99 $43.22 -$4.23 -9.79%
Kohls $51.08 $52.53 -$1.45 -2.76%
Lazare Kaplan $7.80 $7.63 $0.17 2.23%
LJ International $1.04 $1.31 -$0.27 -20.61%
Macys $19.91 $21.85 -$1.94 -8.88%
Man Sang $3.07 $3.64 -$0.57 -15.66%
Movado Group $23.23 $24.48 -$1.25 -5.11%
Nordstrom $33.54 $35.53 -$1.99 -5.60%
Saks $10.80 $11.64 -$0.84 -7.22%
Signet $23.23 $23.12 $0.11 0.48%
Sothebys $20.79 $23.03 -$2.24 -9.73%
Tiffany $38.22 $42.72 -$4.50 -10.53%
Wal-Mart $61.48 $63.17 -$1.69 -2.68%
Zale $28.15 $26.99 $1.16 4.30%
EUROPE
Bulgari €6.31 €6.77 -€0.46 -6.79%
Citizen Holdings €5.19 €5.32 -€0.13 -2.44%
Esa €10.09 €10.05 €0.04 0.40%
Golay-Buchel CHF 2,349.00 CHF 2,338.00 CHF 11.00 0.47%
LVMH €64.40 €67.34 -€2.93 -4.36%
Pinault P-R SA €69.12 €72.70 -€3.59 -4.93%
Richemont SA CHF 53.70 CHF 59.10 -CHF 5.40 -9.14%
Sakha Diamonds €0.27 €0.34 -€0.06 -18.45%
Swatch Group CHF 211.80 CHF 234.20 -CHF 22.40 -9.56%
Theo Fennell (pence) 46.00 46.00 €0.00 0.00%
HONG KONG
Hang HKD 1.64 HKD 1.69 -HKD 0.05 -2.96%
King Fook HKD 0.57 HKD 0.65 -HKD 0.08 -12.31%
Noble Jewelry HKD 0.82 HKD 0.95 -HKD 0.13 -13.68%
Tse Sui Luen HKD 0.83 HKD 0.83 HKD 0.00 0.00%
INDIA (rupee)
Classic Diamond 34.30 40.05 -5.75 -14.36%
Gitanjali Gems 209.70 218.35 -8.65 -3.96%
Rajesh Exports 35.10 46.80 -11.70 -25.00%
Reliance 1,932.85 1,997.60 -64.75 -3.24%
Su-Raj Diamonds 47.45 61.20 -13.75 -22.47%
Titan 1,109.70 1,178.35 -68.65 -5.83%
Zodiac JRD 22.05 24.05 -2.00 -8.32%
Shantivijay Jewels 168.75 160.85 7.90 4.91%
Shukra Jewellery 3.20 2.55 0.65 25.49%
Suashish Diamonds 431.95 445.30 -13.35 -3.00%
NEW ZEALAND
Michael Hill NZD 0.75 NZD 0.88 -NZD 0.13 -14.77%
SINGAPORE
Gems TV Holdings SGD 0.110 SGD 0.110 SGD 0.000 0.00%
Sarin Technologies SGD 0.280 SGD 0.300 -SGD 0.020 -6.67%
MINING STOCKS
(pence unless noted)
Sept 18 Sept 11 Chng Chng%
USA
Anglo American $19.44 $20.50 -$1.06 -5.17%
CANADA
Archangel CAD 0.50 CAD 0.50 CAD 0.01 1.01%
Harry Winston CAD 17.00 CAD 18.91 -CAD 1.91 -10.10%
Mountain Province CAD 2.90 CAD 3.35 -CAD 0.45 -13.43%
Peregrine Diamonds CAD 0.35 CAD 0.40 -CAD 0.05 -12.50%
Rockwell Diamonds CAD 0.29 CAD 0.32 -CAD 0.03 -9.52%
Shore Gold CAD 0.75 CAD 1.05 -CAD 0.30 -28.57%
Stornoway Diamond CAD 0.23 CAD 0.26 -CAD 0.03 -11.54%
True North Gems CAD 0.24 CAD 0.23 CAD 0.01 4.35%
UK (pence)
African Diamonds 47.0 46.6 0.4 0.86%
BHP Billiton 1,317.0 1,405.0 -88.0 -6.26%
Firestone Diamonds 55.0 56.0 -1.0 -1.79%
Gem Diamonds 680.0 729.5 -49.5 -6.79%
Mano River 7.0 7.0 0.0 -0.60%
Mwana Africa 22.0 25.5 -3.5 -13.73%
Namakwa Diamonds 103.0 128.0 -25.0 -19.53%
Petra Diamonds 97.0 105.8 -8.8 -8.27%
Rio Tinto plc 3,655.00 4,158.00 -503.0 -12.10%
Múdry sa teší objaveniu pravdy, hlupák falošnosti.
Rapaport TradeWire - Friday, September 26, 2008
News: Diamond markets show signs of stress with some downward pressure
on prices. Financial crisis reducing market expectations with
increasing concerns that diamond prices may fall. Big stone liquidity
decreasing, but sellers refusing low offers. DTC Sept. sight estimate
at $600 mil. Gold rises 12% to $880/oz. as credit and dollar declines.
U.S. Aug. jewelry prices increase +10% (CPI Jewelry Index). Gem
Diamonds recovers 478ct., D color, rough diamond from Letseng mine.
Abbey Chikane leaves post as South Africa State Diamond Trader. U.S.
Employment Commission sues Sterling for sex discrimination. Tiffany to
open store in Berlin. IGI opens diamond grading lab in Ramat Gan.
ANNOUNCEMENTS:
Did you miss the Rapaport International Diamond Conference?
Pay-per-view webcast of the entire event is now available:
https://www.diamonds.net/Conference/2008/Register.aspx
===================================================
RETAIL QUOTE:
“The number of orders for exclusive diamond jewelry is growing mainly
due to the strong crown, so Czech clients are starting to invest money
in luxurious jewelry and watches.”
---Michaela Jetmarová, Dušák in Prague
WORLD NEWS:
---DTC Sept. Sight $600M, Some Sightholders Reject Goods
The Diamond Trading Company’s (DTC) eighth sight of 2008 reflected
some stability in prices and assortment of goods supplied by De Beers,
but there seemed to be a somber mood amongst sightholders who say they
feel the pinch from recent price increases. The sight had an estimated
value of $600 million, and there was some ex-plan. Some sightholders
rejected goods. The September sight was among the smaller sights of
- DTC holds a local sight in South Africa next week.
---U.S. Aug. Jewelry Price Index +10%
The consumer price index for jewelry during the month of August rose
10.3 percent to 154.73 points, according to statistics provided by BLS
(the Bureau of Labor Statistics.) This rate, based upon 100 points
from 1986, was nearly two points lower than July. When combining the
watches and jewelry categories, the year-to-year difference was an
increase of 9 percent in the United States.
---Hong Kong Show Recovers from Low Expectations
The Hong Kong Show experienced good demand for low color commercial
goods, but the high level big stone deals which have characterized the
show in the past were not hot. By most accounts, demand for high
quality (IF, VVS, VS) high color (D,E,F) large stones above 6 carats
was poor. In contrast, trading was brisk for low color commercial
goods ranging from 1 carat up to 3 carats with especially strong
demand for goods between 30 points and 90 points. In addition, fancy
shapes in low colors did well.
---Letseng Diamond Mine Produces 478ct Stone
Gem Diamonds recovered a 478-carat type II D color diamond which they
say has the potential to yield one of the largest flawless D-color
round polished diamonds in history. The diamond was recovered on
September 8, and sent to Antwerp for analysis. Letseng has become the
premier diamond mine consistently producing high value gem quality
stones since it was reopened in 2004 and acquired by Gem Diamonds in
- The mine has produced four of the world’s 20 largest rough
diamonds.
---Rapaport News Broadcast
Martin Rapaport shares comments on trading from the Hong Kong Show and
discusses the importance of integrating luxury and investment diamond
demand as financial crisis grips the credit markets.
http://www.diamonds.net/news/NewsItem.aspx?ArticleID=23449
RETAIL & WHOLESALE NEWS:
---Star Brillian Reports $235K Diamond Theft by Korean National
Diamond manufacturer Star Brillian reported that a 3.2 carat GIA
certified diamond valued at $234,856.20 (INR 1.02 million) was stolen
from its office in Mumbai, India by a South Korean man named Seo
Byung. Star Brillian management filed a complaint with the police
stating that Seo Byung visited its offices to buy diamonds. Seo Byung
finalized a purchase and gave back the packet with the diamond for
export, which Star Brillian was to ship once payment was made. Since
payment was not deposited with Star, management attempted to contact
Seo Byung, but found that hed left India. Management opened the
packet and found that the original diamond was gone. The original
details of the stone are: Round brilliant D color, IF clarity,
weighing 3.20 carats with GIA certificate No. GIA REPORT 16851075.
---Blue Nile: Weaker Demand for Solitaires as Consumers Cut Back on
Bridal
Blue Nile Inc. CEO Diane Irvine contended that trends underway
included a shift (downsize) in bridal purchases. Consumers were
trading from solitaires to diamond bands on their website,
representing an average price difference from about $6,000 to $3,000.
Consumers were also switching from platinum to white gold. While there
was no statistical evidence suggesting a slow-down in wedding or
engagement planning due to the economy, Blue Nile chairman Mark Vadon
said that anecdotal data suggested a weakening market due to very
tight consumer credit and economic worries.
Also this week, Blue Nile partnered with Bill Me Later Inc. to give
online shoppers an alternative choice to purchasing diamonds. Bill Me
Later enables consumers to shop online without using a credit card.
Blue Nile is offering a "no payment" for 90 days offer for purchases
of more than $250. Bill Me Later charges and an annual percentage rate
of 19.99 percent on the purchase.
---China: FUQI Intl Opens Branded Jewelry Counters
FUQI International expanded its retail presence across the Beijing and
Shanghai markets by opening branded jewelry counters in department
stores. Counters were described as ranging from 330 to 550 square feet
and hosted some 2,000 SKUs. FUQI expects to open two more counters
before November. The company also opened one Temix jewelry counter in
Shanghai -- one more is planned and two are planned for Beijing.
---Charles & Colvard 4Q Inventory Adequate, Delays $710K Purchase
Commitment
Charles & Colvard Ltd., the sole source of moissanite, suspended the
commitment to purchase silicon carbide inventory in the amount of
$710,000 during the fourth quarter from Cree Inc., its primary
supplier. Charles & Colvard claimed it has adequate inventory on hand
to meet sales demand.
---Dynamix Jewelry Group to Acquire JewelAmerica
The Dynamix Jewelry Group plans to acquire all of JewelAmerica Inc. in
a transaction being completed next month. Dynamix has been expanding
its jewelry interests over the years and believes the time is now
right to integrate JewelAmerica with its other global business
interests.
---Tiffany to Open in Berlin
Tiffany & Co. plans to open an approximately 1,670-square-foot
boutique in Berlins KaDeWe department store, in October of 2008.
KaDeWe, Germanys premier destination for luxury shopping, is located
at Tauentzienstrasse 21-24, in the citys most fashionable shopping
area. Berlin will be the jewelers fifth location in Germany. Tiffany
also operates stores in Munich, Frankfurt and Hamburg. A store in
Dusseldorf is scheduled to open later this month.
---Christies Dubai Jewels & Watches Sale Takes Place Oct. 29
Christie’s auction, Jewels and Watches -- The Dubai Sale, takes place
at the Jumeirah Emirates Towers Hotel on October 29, 2008 at 7 p.m.
The sale will include jewelry from leading contemporary designers,
natural pearls, rare vintage Cartier, and antique Indian jewels. The
sale is expected to realize between $20 million and $25 million. The
Dubai sale includes 12 lots of fine diamond jewelry from an important
private European collection with a combined estimate of $6 million to
$8 million. The largest diamond in the sale is a radiant-cut 57.02
carat fancy intense yellow diamond ring (estimate: $2 million to $2.5
million.) A classic 1940s diamond bracelet by Cartier is also included
with an estimate of $300,000 to $350,000.
WHO IS NEWS:
---S. Africa: CEO Chikane Leaves State Diamond Trader
Abbey Chikane has left his position as chief executive officer of
South Africa’s State Diamond Trader (SDT) after his contract expired
at the end of August. SDT chairperson Linda Makatini confirmed that
Chikane’s contract had ended and would not be renewed as it had been a
12-month fixed-term contract running through the provisional rights
period in which the trader could operate.
---Gitanjali Group Appoints New Pres. of HR Function
The Gitanjali Group appointed Mr. C. Subramaniam as the group
president of human resources. Subramaniam has eighteen years of
experience within the human relations function. He added that he was
excited to take on the task of leading the function at a time when
Indias economy is booming. "I am confident that all together we will
write yet another page of the success story of the Gitanjali Group."
---Diamond Cutter Wanted in Four States, Australia Requests the Mans
Fingerprints
Moshe Tsitsaushivili, a diamond cutter charged with stealing diamonds
from a jeweler in Yorktown Heights, New York, in 1989 is also a
suspect in similar thefts across four other states. Tsitsaushivili,
41, is alleged to have worked for various jewelers, for little or no
pay in order to prove himself, but would make off with a diamond (or
diamonds) during a lunch break and never return. Authorities in New
South Wales, Australia, recently requested photos of Tsitsaushivili
and copies of his fingerprints to investigate a $1.3 million jewel
heist dating back to 1999. He is being held on a felony larceny charge
in Westchester County after being caught by border patrol crossing
into New York from Canada this past week with a fake passport from
Israel. Warrants for his arrest have also been issued in Maryland, New
Jersey, Pennsylvania, and Ohio.
---Detroit: Jeweler Faces Money Laundering Charges
A 32-year-old Southfield jeweler was arrested for money laundering in
which involved more than $1.5 million in cash for drug dealers. Gary
Yee was arrested after agents from the Drug Enforcement Agency and IRS
Criminal Investigation executed search warrants at the homes of him
and his mother. Authorities said he was arrested after an undercover
operation during which agents posed as marijuana dealers.
GENERAL NEWS:
---Zimbabwe: Governor Seeks to Curb Diamond Looting
The newly-appointed governor of Manicaland, Zimbabwe, Christopher
Mushohwe met with law enforcement this week to discuss ways in which
to curb diamond looting. The government contends foreign nationals
continue to take diamonds from the Chiadzwa area.
---Botswana Introduces Vocational Training Tax
The government of Botswana has introduced a new vocational training
tax, which will likely impact diamond businesses in the country. Tax
has been set at a rate of 0.2 percent for businesses with a turnover
of between BWP 250,000 and BWP 2 billion (about $37,000 to $294
million,) and at 0.05 percent if turnover exceeds BWP 2 billion.
Employers with a turnover of less than BWP 250,000 will be exempt from
the fee. The tax will take effect on October 1, 2008.
---Antwerp Diamantaires Sue Fund for Worker’s Social Benefits
Some 18 Antwerp-based diamantaires have launched a lawsuit against
Belgium’s Intern Compensation Fund for a newly introduced taxation
scheme designed to reimburse the social benefits for workers of
diamond manufacturers. According to a letter sent by the Belgium
Polished Diamond Dealers Association (BVGD) to its members, the
industry is claiming the fund collected about EUR 4.7 million in 2007
but spent only EUR 1.7 million. BVGD president Andre Gumuchdjian
explained that the fund was not supposed to accumulate funds above EUR
800,000 and that the individual diamantaires were suing to get their
money back.
---DDE Sept. Tender to Include Diamonds Up to 20 Carats
The Dubai Diamond Exchange (DDE) will include 10-to-20 carat stones in
its September ‘rough diamond sales week.’ The tender, held in
partnership with Global Diamond Tenders DMCC, will take place
September 28-30, 2008, on DDE’s premises, and will include goods from
Australia, South Africa, and Lesotho. The tender will consist of goods
totaling approximately 95,000 carats with stones ranging in size from
small goods up to single stones of 20 carats each, DDE explained.
---IGI Expands Israeli Presence
IGI opened its newest full-service gemological laboratory in Ramat
Gan, Israel. IGI has had a presence in Israel for eight years through
its Diamond Window Service. IGI opted to open a full-service
gem-testing laboratory in Ramat Gan located in the Yahalom Building.
---Jewelers Mutual Adds Employment Practices Liability Insurance to
Product Portfolio
In response to the rising number of employment practices claims and
awards, Jewelers Mutual Insurance Company added Employment Practices
Liability Insurance (EPLI) to its product portfolio for businesses in
the United States. Available as an endorsement to the company’s
Businessowners Policy, EPLI covers claims resulting from
employment-related offenses such as work-related harassment, including
sexual harassment; wrongful termination, including retaliatory or
constructive discharge; wrongful failure to hire, promote or grant
tenure; intentional infliction of emotional distress; and more.
Coverage limits range from $100,000 to $1 million each claim/policy
aggregate.
DIAMOND MINING NEWS:
---Petra Diamonds Posts Profit for FY08; Disposes of Polishing Works
Petra Diamonds posted its first-ever profit, and sold its cutting and
polishing operations. Petra fiscal year net profits were $1.9 million,
compared with a loss of $20.9 million in fiscal 2007. Revenues grew
352 percent to $76.9 million for the year, and Petra recovered 200,287
carats of diamonds spurred by the first full year of production from
the Koffiefontein mine, which the company gained control from De Beers
in July 2007.
The company reported that it achieved stable prices at its most recent
tender in July; Petra’s first in fiscal 2009, where it sold 99,827
carats for $23.19 million, or $232 per carat. The tender included
66,127 carats of diamonds from Cullinan for the first time, which sold
for $6.6 million, or $100 a carat. Koffiefontein diamonds achieved an
average price of $460 per carat and the fissure mines sold for an
average $529 per carat.
---ALROSA Profits Expected to Fall 27% in 2008
ALROSA expects to post a profit of RUB 10.28 billion (about $411.67
million) in 2008, which would represent a decline of 27 percent from
2007 figures. Performance targets “reflect the current economic
situation,” and production costs have risen with increased costs of
fuel, materials, machinery, and labor, and higher prospecting and
exploration expenses.
---Bristow States Why Rockwell Shareholders Should Reject Offer
Pala Investments Holdings Limited amended its all-cash offer to
shareholders of Rockwell Diamonds Inc. Pala waived the due diligence
condition, which required that Pala be granted access to information
concerning Rockwell, including access to its management, by September
24, 2008. Rockwells board has recommended shareholders not tender
their shares to Pala. Rockwell president and CEO John Bristow explains
why in this MP3 audio file:
http://www.diamonds.net/news/Files/Docs/2008/9/25/rockwell.mp3
---African Diamonds Ends Dispute With De Beers Over Botswana Mine
African Diamonds deferred its court dispute with De Beers over the
AK06 mine in Botswana, after the government rejected De Beers’
application for a retention license to delay development of the
project. African Diamonds, which owns 28.38 percent in AK06 with De
Beers holding 71 percent, said Monday that it had been informed by
Botswana’s director of mines that the “retention license applied for
by De Beers was not considered and in his view was not formally
lodged, as a mining license application was still pending.”
As a result, negotiations for a mining license for AK06 continue and
are pegged to be complete by the end of September. A rift between De
Beers and African Diamonds developed in July over the project as De
Beers cited potential power issues meant it was not economically
viable to develop the mine, and sought to delay it by two years. The
two also disagreed on the potential marketing of diamonds from AK06.
---Patrician Diamonds Seeks Share Consolidation, Name Change
Junior explorer Patrician Diamonds Inc. proposed to shareholders a 1
for 10 share consolidation and a corporate name change to Diamond
Exploration Inc. Patrician operates projects in Doctor Lake, Northwest
Territories and Borden, Baffin Island, Nunavut. Exploration on both
projects has previously found diamonds. Patrician expects to conduct
additional drilling and other major exploration in 2009. Patrician is
also currently developing a significant new project for early 2009
field work.
ECON WATCH:
For week ending September 18, 2008
Sept 25 Sept 18 Chng
$1 = Euro 0.684 0.697 -0.013
$1 = Rupee 46.0 46.2 -0.2
$1 = Israel Shekel 3.41 3.53 -0.12
$1 = Rand 8.12 8.18 -0.07
$1 = Canada Dollar 1.03 1.06 -0.03
Precious Metals
Sept 25 Sept 18 Chng
Gold $877.50 $853.00 $24.50
Platinum $1,171.00 $1,088.00 $83.00
Stock Indexes
Sept 25 Sept 18 Chng Chng%
BSE 13,547.18 13,315.60 231.58 1.74%
Dow Jones Avg. 11,022.06 11,019.69 2.37 0.02%
FTSE 5,197.02 4,880.00 317.02 6.50%
Hang Seng 18,934.43 17,632.46 1,301.97 7.38%
S & P 500 1,209.18 1,206.51 2.67 0.22%
Yahoo! Jewelry Index 1,096.24 1,156.38 -60.14 -5.20%
USA
Abazias $0.70 $1.40 -$0.70 -50.00%
Birks & Mayors $1.76 $2.08 -$0.32 -15.38%
Blue Nile $46.28 $49.25 -$2.97 -6.03%
Charles & Colvard $0.53 $0.49 $0.04 8.16%
Collectors Universe $7.00 $7.28 -$0.28 -3.85%
DGSE Companies, Inc. $2.55 $2.52 $0.03 1.19%
Fuqi International $8.61 $8.92 -$0.31 -3.48%
JCPenney $35.90 $38.99 -$3.09 -7.93%
Kohls $47.90 $51.08 -$3.18 -6.23%
Lazare Kaplan $7.43 $7.80 -$0.37 -4.74%
LJ International $1.16 $1.04 $0.12 11.54%
Macys $18.90 $19.91 -$1.01 -5.07%
Man Sang $3.50 $3.07 $0.43 14.01%
Movado Group $23.76 $23.23 $0.53 2.28%
Nordstrom $29.51 $33.54 -$4.03 -12.02%
Saks $9.17 $10.80 -$1.63 -15.09%
Signet $23.95 $23.23 $0.72 3.10%
Sothebys $20.28 $20.79 -$0.51 -2.45%
Tiffany $36.76 $38.22 -$1.46 -3.82%
Wal-Mart $60.12 $61.48 -$1.36 -2.21%
Zale $24.92 $28.15 -$3.23 -11.47%
EUROPE
Bulgari €6.46 €6.31 €0.15 2.38%
Citizen Holdings €4.80 €5.19 -€0.39 -7.51%
Esa €9.66 €10.09 -€0.43 -4.26%
Golay-Buchel CHF 2,349.00 CHF 2,349.00 CHF 0.00 0.00%
LVMH €65.00 €64.40 €0.60 0.93%
Pinault P-R SA €68.35 €69.12 -€0.77 -1.11%
Richemont SA CHF 52.80 CHF 53.70 -CHF 0.90 -1.68%
Sakha Diamonds €0.28 €0.27 €0.01 3.65%
Swatch Group CHF 214.30 CHF 211.80 CHF 2.50 1.18%
Theo Fennell (pence) 45.00 46.00 -€1.00 -2.17%
HONG KONG
Hang HKD 1.62 HKD 1.64 -HKD 0.02 -1.22%
King Fook HKD 0.54 HKD 0.57 -HKD 0.03 -5.26%
Noble Jewelry HKD 0.82 HKD 0.82 HKD 0.00 0.00%
Tse Sui Luen HKD 0.83 HKD 0.83 HKD 0.00 0.00%
INDIA (rupee)
Classic Diamond 35.45 34.30 1.15 3.35%
Gitanjali Gems 193.80 209.70 -15.90 -7.58%
Rajesh Exports 34.40 35.10 -0.70 -1.99%
Reliance 2,025.00 1,932.85 92.15 4.77%
Su-Raj Diamonds 47.35 47.45 -0.10 -0.21%
Titan 1,119.50 1,109.70 9.80 0.88%
Zodiac JRD 21.10 22.05 -0.95 -4.31%
Shantivijay Jewels 165.00 168.75 -3.75 -2.22%
Shukra Jewellery 3.69 3.20 0.49 15.31%
Suashish Diamonds 433.90 431.95 1.95 0.45%
NEW ZEALAND
Michael Hill NZD 0.76 NZD 0.75 NZD 0.01 1.33%
SINGAPORE
Gems TV Holdings SGD 0.110 SGD 0.110 SGD 0.000 0.00%
Sarin Technologies SGD 0.290 SGD 0.280 SGD 0.010 3.57%
Múdry sa teší objaveniu pravdy, hlupák falošnosti.
;) Dobrý večer Grofik, ty jsi se tedy rozjel.....
...to určitě ano,....škoda,že neumím anglicky,určitě je to velmi zajímavé..😃
Rapaport TradeWire - Friday, October 3, 2008
NEWS: Diamond prices coming under increasing pressure as global
economic situation worsens. Sellers are trying to maintain price
levels as trading volume fall and liquidity concerns mount. ABN AMRO’s
diamond division is up for sale with few takers. Everyone is worried
or should be. Indian polished trade weakens and rough demand slows as
outlook for holiday season dims. De Beers DTC Sept. sight estimated at
$600 mil. Collectors Universe posts $13 million loss for 4Q. Cartier
opens flagship store in Seoul. Bulgari opens in Paris. Vasant Mehta
elected chair of India’s GJEPC. Rapaport offices will be closed on
Thursday Oct. 9 due to Yom Kippur. We wish everyone a happy, healthy,
peaceful and prosperous Jewish New Year.
RETAIL QUOTE:
“Recession in the major retail diamond markets will ripple back to the
cutting centers and will almost certainly lead to weaker prices for
rough and polished diamonds…The party is over for diamonds, at least
for the next two years.”
---Des Kilalea, RBC Capital Markets
WORLD NEWS:
---U.S. Aug. Consumer Spending Flat
The U.S. Commerce Department reported that consumer spending in August
was unchanged from July. Personal spending accounts for roughly 70
percent of economic activity. While nondurable goods and services
sales fell, motor vehicle and parts rose to offset the difference.
Consumer spending was the weakest since February. Personal incomes,
adjusted to remove price changes, fell 0.9 percent in August, compared
with a decrease of 1.5 percent in July.
---RBC Forecasts Weaker Diamond Prices, Consumer Demand
RBC Capital Markets expects polished and rough diamond prices to
weaken as the economic slowdown in the United States and Europe
impacts jewelry demand. RBC said demand for diamonds by the jewelry
trade was starting to slow as the U.S., Europe, and Japan, where
consumer disposable income was being squeezed and jobs have been lost.
RBC found that U.S. consumer confidence fell more than 50 percent
January 2006 and June 2008 due to growing uncertainty in financial
markets.
---Fortis Plans Sale of ABN Amro Diamond Unit
Fortis Bank is planning to sell its ABN Amro Diamond Bank subsidiary.
Fortis announced on Monday that the governments of Belgium, the
Netherlands and Luxembourg had agreed to invest EUR 11.2 billion in a
bailout deal to prevent a run on the bank. Fortis provides an
estimated $3 billion of credit to the diamond industry through its ABN
Amro subsidiary, according to RBC Capital Markets, which said
widespread bank debt in the cutting centers may result in liquidity
drying up.
---U.S. Burmese Rubies, Jadeite Regulations Now Apply
Effective September 29, the “Tom Lantos Block Burmese JADE Act of
2008” took effect. Jadeite and rubies from Myanmar cannot be imported
into the United States. This encompasses all jadeite and rubies from
third-party countries as long as these originated in Myanmar. U.S.
Customs and Border Protection have issued new Harmonized Tariff System
codes for all non-Burmese rubies and jadeite imported into the U.S.
The importation ban does not apply to jadeite or rubies that are
imported for personal use, meaning for personal wear by the importer.
Further, the bill does not address U.S. sales of any inventory of
Burmese jadeite or rubies currently in the U.S.
---GJEPC Elects Mehta Chairman
Vasant Mehta was elected as the chairman of the Gem & Jewellery Export
Promotion Council (GJEPC.) Mehta will take on the responsibilities
from Sanjay Kothari, who has completed his two-year term (2006-2008)
as chairman. Rajiv Jain, who was chairman of the Jaipur region, has
assumed the post of vice chairman of Council. They will hold office
for a period of two years from 2008 to 2010.
---Rapaport Videos
Martin Rapaport discusses the financial crisis in his Jewish New Year
message to the industry.
http://www.diamonds.net/News/NewsItem.aspx?ArticleID=23460
Rapaport Weekly Broadcast touches upon Zales new Z-Trends push for
sales and Rockwell Diamonds 212ct yellow diamond at Sothebys Hong
Kong.
http://www.diamonds.net/news/NewsItem.aspx?ArticleID=23527
DIAMOND STATS:
---Japan’s Polished Diamond Imports -25% in Aug.
Japan’s polished diamond imports fell 25.4 percent to $45.88 million
in August. Japan’s imports by volume remained flat compared with
August 2007 at 177,232 carats. The average price fell 25 percent to
$259 per carat. Imports from India, Japan’s largest source of polished
diamonds, dropped 39.5 percent to $22.67 million, while from Hong Kong
they rose 137 percent to $7.36 million. Imports from Israel and
Belgium rose 28 percent and 8 percent respectively. Polished diamond
imports for the first eight months of the year declined 9.9 percent to
$536.17 million. By volume, imports increased 5.2 percent to 1.58
million carats, while average prices have fallen 14 percent to $339
per carat.
RETAIL & WHOLESALE NEWS:
---Collectors Universe Posts $13M Loss in 4Q Fiscal 2008
Collectors Universe, the parent company of parent company of GCAL and
AGL grading services, posted a net loss of $13.1 million in the fourth
quarter, compared with a loss of $840,000 one year ago. Net revenues
grew 3.6 percent to $10.3 million boosted by its jewelry grading
business.
---Harrods Reports Double Digit Growth for Jewelry
For its fiscal year, ending February 2, 2008, retailer Harrods group
revenue rose 13 percent to GBP688 million ($1.2 billion.) Jewelry,
accessories, womens clothing, and furniture increased by double
digits the company reported. Sales since the fiscal year ended have
remained strong; the retailer contended but did not cite examples.
---Sotheby’s New York Jewelry Auction Garners $13M
Sotheby’s generated $13.13 million at its Important Jewels sale held
in New York on September 25, and saw it as a sign that the jewelry
auction market had so far bucked the current difficult economic
conditions. The auction sold 77.6 percent by lot, out of 452 lots on
offer, and 79.4 percent by value. The top selling lot was a ring by
Van Cleef & Arpels with an emerald-cut sapphire weighing 25.25 carats,
flanked by two pear shaped diamonds, mounted in platinum. The ring
sold for $656,500, almost double its pre-auction estimated value to an
anonymous buyer.
---Hong Kong Aug. Jewelry Sales +2%
Retail sales across Hong Kong rose 10.4 percent in August to HKD22.8
billion ($2.9 billion.) By volume, sales rose 4 percent. The
government was pleased with the figures as it was assumed many Chinese
would stay home during the two-week run of the Olympic Games. The
jewelry category rose 2.4 percent.
---Bulgari Opens in Paris
Bulgari opened a new store in Paris at the corner of Avenue George V
and Rue Francois 1er. The luxury retailers CEO Francesco Trapani
called Paris a lucrative market not just because of the French
clientele, but also the hordes of tourists and the presence of major
flagship boutiques.
---Cartier Opens in Seoul
Cartier opened its first store in the fashionable Cheongdam-dong
district in southern Seoul. French architect David-Pierre Jalicon
designed the boutique that was inspired by the Korean wrapping cloth
or bojagi. Cartier decided the timing was right to open in Seoul as
the luxury market is growing rapidly in the South Korean capital.
---Neiman Marcus Braces for Huge Downshift in Wall Street Bonuses
Neiman Marcus Inc. said this past week that its fiscal fourth-quarter
loss more than doubled from a year ago. Historically huge Wall Street
bonuses ($33.2 billion in 2007,) which mean everything to New York
luxury retailers in December, are expected to be a fraction of what
they were.
GENERAL NEWS:
---Indo Argyle Diamond Council to Close After 15 Years
The Indo Argyle Diamond Council (IADC) program will close in December.
The program was developed to raise awareness in the United States
about the jewelry manufacturing potential in India and its ability to
manufacture high-quality, sellable diamond jewelry to reach price
points from the high-end to mass market. The program was cited as
helping to increase jewelry exports from India to the U.S., from
around $300 million in 1994 to $2.3 billion in 2007.
---LBMA Expects Gold Prices to Remain High
The financial crisis on Wall Street and tight credit will keep gold
prices high, according to Jeremy Charles, chairman of the London
Bullion Market Association (LBMA.) Charles said gold holds true as a
safe-haven asset. Since gold hit a record at $1,032oz. in March, the
metal has experienced wide swings in demand as investors switch from
gold to dollar investments and back again depending upon the
confidence in the currency at any given time. The gold sell-off from
April through July was primarily due to the improved outlook for the
dollar and lower oil and commodity prices, Charles said. But new
demand has been so strong that global supply of gold bars has been
playing catch-up this month.
DIAMOND MINING NEWS:
---DiamondCorp Loss Widens 7% in 1H
DiamondCorp reported a net loss of GBP 1.34 million ($2.36 million) in
the first half of 2008, which was 7 percent deeper than the loss one
year ago. The diamond mining and exploration company had revenues of
GBP 578,847 ($1.17 million) for the period ending June 30, 2008, from
19,214 carats of diamonds sold at tender in Johannesburg for an
average price of $61 per carat. It had zero revenues in the comparable
period one year ago.
---Vaaldiam Plans $20M in Debt Financing
Vaaldiam Resources is planning to raise $20 million in debt financing
to fund further development of its Duas Barras mine in Brazil. Funds
raised will also be used to complete the feasibility study on the
Braúna kimberlite project, and for general working capital purposes.
The initiative follows a failed attempt to raise money from a rights
offering which expired on September 17. Vaaldiam has two operating
alluvial mines in Brazil, Duas Barras and Chapada, and exploration
projects in Brazil and Canada.
---Vancouver Group Agrees to Buy Tahera Diamond Corp
A group of Vancouver resource developers has agreed to buy troubled
diamond mining company Tahera Diamond Corporation, owner of the
Jericho mine in Canada’s Nunavut province. Tahera claims an unnamed
privately owned company signed a ‘plan sponsorship agreement with
Tahera in a cash deal to acquire 100 percent of the miner’s equity and
help pay its creditors. The undisclosed amount being paid by the group
(plan sponsor) is insufficient to pay all of the claims of creditors
of the company in full, Tahera added.
---De Beers Maintains 2011 Launch Goal For Botswana Mine
De Beers is in the final stages regarding development of the AK06 mine
and remains hopeful for mining in 2011. De Beers holds a 71 percent
stake in the Boteti joint venture, which owns the AK6 project, with
junior partner African Diamonds owning a 28 percent interest and Wati,
a private Botswana-based company, the remaining 1 percent. The two
larger stakeholders have been in dispute regarding work on the project
after African Diamonds accused De Beers of delaying development of the
mine. While African Diamonds stated it was in favor of building the
mine “as quickly as possible,” De Beers claimed it was not economical
to develop a mine while Botswana was experiencing power shortages,
expected to continue through 2009 and 2010.
ECON WATCH:
For week ending October 2, 2008
Oct 2 Sept 25 Chng
$1 = Euro 0.725 0.684 0.041
$1 = Rupee 47.6 46.0 1.6
$1 = Israel Shekel 3.46 3.41 0.05
$1 = Rand 8.52 8.12 0.40
$1 = Canadian Dollar 1.08 1.03 0.04
Precious Metals
Oct 2 Sept 25 Chng
Gold $836.80 $877.50 -$40.70
Platinum $980.00 $1,171.00 -$191.00
Stock Indexes
Oct 2 Sept 25 Chng Chng%
BSE 13,055.67 13,547.18 -491.51 -3.63%
Dow Jones Avg. 10,482.85 11,022.06 -539.21 -4.89%
FTSE 4,870.34 5,197.02 -326.68 -6.29%
Hang Seng 18,211.11 18,934.43 -723.32 -3.82%
S & P 500 1,114.28 1,209.18 -94.90 -7.85%
Yahoo! Jewelry Index 1,001.21 1,096.24 -95.03 -8.67%
USA
Abazias $1.40 $0.70 $0.70 100.00%
Birks & Mayors $1.30 $1.76 -$0.46 -26.14%
Blue Nile $39.62 $46.28 -$6.66 -14.39%
Charles & Colvard $0.49 $0.53 -$0.04 -7.55%
Collectors Universe $6.56 $7.00 -$0.44 -6.29%
DGSE Companies, Inc. $2.40 $2.55 -$0.15 -5.88%
Fuqi International $8.32 $8.61 -$0.29 -3.37%
JCPenney $32.80 $35.90 -$3.10 -8.64%
Kohls $42.39 $47.90 -$5.51 -11.50%
Lazare Kaplan $7.43 $7.43 $0.00 0.00%
LJ International $0.97 $1.16 -$0.19 -16.37%
Macys $16.21 $18.90 -$2.69 -14.23%
Man Sang $3.20 $3.50 -$0.30 -8.57%
Movado Group $20.08 $23.76 -$3.68 -15.49%
Nordstrom $25.39 $29.51 -$4.12 -13.96%
Saks $8.56 $9.17 -$0.61 -6.65%
Signet $20.08 $23.95 -$3.87 -16.16%
Sothebys $18.01 $20.28 -$2.27 -11.19%
Tiffany $33.67 $36.76 -$3.09 -8.41%
Wal-Mart $58.85 $60.12 -$1.27 -2.11%
Zale $24.08 $24.92 -$0.84 -3.37%
EUROPE
Bulgari €6.11 €6.46 -€0.35 -5.42%
Citizen Holdings €4.99 €4.80 €0.19 3.96%
Esa €8.08 €9.66 -€1.58 -16.36%
Golay-Buchel CHF 2,170.00 CHF 2,349.00 -CHF 179.00 -7.62%
LVMH €60.37 €65.00 -€4.64 -7.13%
Pinault P-R SA €60.91 €68.35 -€7.44 -10.89%
Richemont SA CHF 49.04 CHF 52.80 -CHF 3.76 -7.12%
Sakha Diamonds €0.27 €0.28 -€0.01 -3.87%
Swatch Group CHF 194.70 CHF 214.30 -CHF 19.60 -9.15%
Theo Fennell (pence) 45.00 45.00 €0.00 0.00%
HONG KONG
Hang HKD 0.65 HKD 1.62 -HKD 0.97 -59.88%
King Fook HKD 0.55 HKD 0.54 HKD 0.01 1.85%
Noble Jewelry HKD 0.72 HKD 0.82 -HKD 0.10 -12.20%
Tse Sui Luen HKD 0.83 HKD 0.83 HKD 0.00 0.00%
INDIA (rupee)
Classic Diamond 32.80 35.45 -2.65 -7.48%
Gitanjali Gems 188.70 193.80 -5.10 -2.63%
Rajesh Exports 28.30 34.40 -6.10 -17.73%
Ren. Jewellery 35.40 37.75 -2.35 -6.23%
Su-Raj Diamonds 46.45 47.35 -0.90 -1.90%
Titan 1,118.85 1,119.50 -0.65 -0.06%
Zodiac JRD 20.00 21.10 -1.10 -5.21%
Shantivijay Jewels 157.00 165.00 -8.00 -4.85%
Shukra Jewellery 3.88 3.69 0.19 5.15%
Suashish Diamonds 395.25 433.90 -38.65 -8.91%
NEW ZEALAND
Michael Hill NZD 0.77 NZD 0.76 NZD 0.01 1.32%
SINGAPORE
Gems TV Holdings SGD 0.110 SGD 0.110 SGD 0.000 0.00%
Sarin Technologies SGD 0.280 SGD 0.290 -SGD 0.010 -3.45%
MINING STOCKS
(pence unless noted)
Oct 2 Sept 25 Chng Chng%
USA
Anglo American $14.53 $18.98 -$4.45 -23.45%
CANADA
Archangel CAD 0.36 CAD 0.40 -CAD 0.04 -10.00%
Harry Winston CAD 13.01 CAD 16.69 -CAD 3.68 -22.05%
Mountain Province CAD 3.02 CAD 3.65 -CAD 0.63 -17.26%
Peregrine Diamonds CAD 0.36 CAD 0.44 -CAD 0.08 -18.18%
Rockwell Diamonds CAD 0.32 CAD 0.34 -CAD 0.02 -5.97%
Shore Gold CAD 1.07 CAD 1.09 -CAD 0.02 -1.83%
Stornoway Diamond CAD 0.17 CAD 0.22 -CAD 0.05 -22.73%
True North Gems CAD 0.15 CAD 0.16 -CAD 0.02 -9.38%
UK (pence)
African Diamonds 50.0 54.8 -4.8 -8.68%
BHP Billiton 1,121.0 1,440.0 -319.0 -22.15%
Firestone Diamonds 48.1 50.0 -1.9 -3.80%
Gem Diamonds 540.5 723.0 -182.5 -25.24%
Mano River 6.3 7.0 -0.7 -10.00%
Mwana Africa 15.5 19.3 -3.8 -19.48%
Namakwa Diamonds 98.0 100.0 -2.0 -2.00%
Petra Diamonds 97.5 104.0 -6.5 -6.25%
Rio Tinto plc 3,210.00 3,940.00 -730.0 -18.53%
Múdry sa teší objaveniu pravdy, hlupák falošnosti.
Pro vkládání příspěvků se musíte přihlásit.
