Rapaport Weekly Market Comment March 23, 2017

Polished market upbeat with steady orders from U.S. and Chinese jewelers. Improving demand for big stones as Basel show begins with fewer companies attending due to high exhibitor costs. Sotheby’s to offer Oval, 59.60 ct., Fancy Vivid Pink, IF Pink Star diamond at Apr. 4 Hong Kong auction with low estimate of $60M ($1M/ct.). Rapaport Auctions sells 83,000 cts. for $12.5M at Hong Kong show as melee prices rebound. 1Q Rapaport Melee Index +13%. Tiffany 2016 sales -3% to $4B, profit -4% to $446M. De Beers buys LVMH stake in De Beers Diamond Jewellers. Dominion rejects $1.1B takeover bid from Washington Companies. India Feb. polished exports +3% to $2.4B, rough imports -3% to $1.5B.

RapNet Data: March 23

Diamonds 1,244,958
Value $7,454,575,039
Carats 1,327,166
Average Discount -30.36%

www.rapnet.com

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

Get Current Price List | Subscribe to Rapaport | Join RapNet

RAPAPORT ANNOUNCEMENTS
March 21-29 Tue-Wed

Rapaport Melee Auction

New York & Dubai View Details
March 22-29 Wed-Wed

Rapaport Single Stone Auction

New York & Israel

View Details
April 2-5 Sun-Wed

Rapaport Single Stone Auction

Israel

View Details
QUOTE OF THE WEEK
Millennials are going to be our number-one customer in the next five years. They don’t want to go to stores to buy things. I don’t say the shop model is not there, but you need to integrate stores and online sales.

Praveenshankar Pandya, chairman of the Gem & Jewellery Export Promotion Council (GJEPC).

MARKETS 	  

United States: Sentiment improving with dealers filling orders. A lot of goods out on memo. Stable demand for commercial-quality 1 to 2 ct., G-I, VS2-SI2 diamonds…

Belgium: Positive market momentum with good Far East demand for dossiers and steady U.S. demand for 1 ct., D-H, VS-SI, RapSpec A3+ diamonds…
Israel: Polished trading relatively slow compared with other centers. Dossiers stable but 1 to 2.99 ct., D-J, VVS-VS sluggish with tight profit margins…

India: Good mood in the market. Firm prices for smaller diamonds signal diminishing negative impact of demonetization on local trading…

Hong Kong: Polished market slowed slightly after the peak selling period surrounding the March show. Steady demand for 0.50 to 0.70 ct., D-H, VVS-SI RapSpec A2+ (3X, none) diamonds…

RAPAPORT STATEMENT 	  

Rapaport Garners $12.5M at Hong Kong Auctions

Rapaport Auctions, the world’s leading recycler of diamonds, closed its Hong Kong auctions this month at one of the largest jewelry shows of the year. The auctions sold over 83,000 carats of polished diamonds for $12.5M, achieving a sell-through rate of over 87%. The Rapaport Melee Index (RMI™) for small diamonds increased by 13.3% to 108.40 during the first quarter of 2017.

INSIGHTS 	  

Will Retail Help De Beers ‘Build Forever’?

De Beers acquisition of LVMH’s 50% stake in De Beers Diamond Jewellers was hardly surprising, as it means the company has taken full control of its branding. What it does next with the network of stores will be more telling for the company and its Forevermark program...

INDUSTRY 	  

Rapaport to India: Scrap Diamond Import Tax
Martin Rapaport, chairman of the Rapaport Group, called on India to show reciprocity in its trade relationship with the U.S. by lowering or removing its import tax on diamonds, gems and jewelry. Speaking at the “Mines to Market” conference in Mumbai to mark 50 years of Indias Gem & Jewellery Export Promotion Council, Rapaport noted that India’s import tax on loose polished diamonds and gems was 2.575%, whereas the U.S. charged nothing. Further, he said, India’s levy on diamond-jewelry imports is 31.56%, compared with America’s 5.5%.

Modi Notes Custom Jewelry Potential 

Indian Prime Minister Narendra Modi urged his country’s gem and jewelry industry to forge stronger connections with consumers in order to shape their buying habits and grow the sector. In particular, it should tap into demand for custom jewelry by utilizing the “golden opportunity” of ecommerce technology, he told the “Mines to Market” conference in Mumbai. The trade should support young entrepreneurs in order to cultivate such a market, he added.
India’s Polished Exports Improve in Feb.

India’s polished exports rose 3% to $2.41 billion in February, according to data from the Gem & Jewellery Export Promotion Council (GJEPC). Polished imports dropped 20% to $178 million, and net polished exports – the excess of exports over imports – increased 6% to $2.24 billion. Meanwhile, rough imports declined 3% to $1.51 billion, and rough exports grew 11% to $145 million. The countrys net diamond account grew 25% to $875 million.

China’s Polished Imports Rise in 2016 

China’s polished diamond imports increased 4.9% to $7.02 billion last year, according to data from the China Customs Information Center. By weight, polished imports increased 1.2% to 7.7 million carats, while the average price rose 3.7% to $916 per carat. Polished exports fell 11% to $1.91 billion, meaning net polished imports jumped 12% to $5.12 billion. Rough imports slid 13% to $666 million, while rough exports increased 11% to $30 million.

RETAIL & WHOLESALE 	  
De Beers Buys Out LVMH Retail Partner 

De Beers has taken full ownership of the De Beers Diamond Jewellers (DBDJ) retail operation. The group bought the 50% stake owned by LVMH, which previously operated the stores, for an undisclosed sum, thereby ending its partnership with the luxury house. DBDJ comprises 32 stores in 17 consumer markets around the world, including China, London, Paris and New York.

Pink Star Diamond Back on the Auction Block 

Sotheby’s will auction the Pink Star diamond in Hong Kong next month, more than three years after its previous sale fell through. The oval, 59.60-carat, internally flawless, fancy vivid pink diamond is expected to exceed $60 million, which would rank it among the most valuable diamonds ever sold, according to Sotheby’s. It will be on display at the Hong Kong Convention and Exhibition Centre from March 29 to April 3 before going under the hammer on April 4.

Tiffany Targets New Products as Sales Fall 

Tiffany & Co. expects to turn a corner in 2017 by raising the number of new product launches following last year’s poor performance. Sales fell 3% to $4 billion in the fiscal year that ended January 31, with net earnings declining 4% to $446.1 million. Tiffany continues to emphasize its fashion product segment and is also seeing increased success with sales under $500, said Michael Kowalski, Tiffany’s chairman and interim CEO.

Swiss Watch Dip Expected to Solidify Market 

The Swiss watch industry remained cautious at the start of the Baselworld show as data indicated a continued slowdown in the timepiece trade. The nation’s watch exports declined 10% to $1.5 billion (CHF 1.49 billion) in February, the Federation of the Swiss Watch Industry reported. However, the downturn will lead to a consolidation period that will benefit the entire sector, said Eric Bertrand, president of the Baselworld Exhibitors’ Committee. Baselworld runs from March 23 to 30.

MINING 	  

Dominion Under Merger Spotlight

Dominion Diamond Corporation received a $1.1 billion takeover approach from the Washington Companies. The miner said it was prepared to enter discussions with the group, but claimed the informal proposal was “opportunistic” and undervalued the business. Dominion has also been in merger talks with Stornoway Diamond Corporation, with discussions covering the possibility of Stornoway CEO Matt Manson filling the soon-to-be vacant CEO role at Dominion, Reuters reported.

ALROSA Upbeat Despite Sales Decline

ALROSA sales fell 6% to an estimated $1.25 billion during the first quarter even as its rough diamond prices firmed, the company reported. The miner’s rough diamond price index rose 2%, with reports of strong demand at the beginning of the year. Although sales slowed during the quarter, the company maintained a positive outlook for the rest of 2017, with full-year production projected to rise 5% to 39.2 million carats.
Pastor Finds 706ct. Diamond in Sierra Leone

An alluvial miner discovered a 706-carat rough diamond at the Koyadu village in Sierra Leone, the government confirmed. The stone was presented to the country’s President Ernest Bai Koroma by Paramount Chief Paul Saquee of the Tankoro chiefdom in the Kono district, where artisanal miner Pastor Emmanuel A. Momoh unearthed it. Koroma thanked the chief and his people for not smuggling the diamond out of the country and stressed the importance of selling it in Sierra Leone.

GENERAL 	  

DPA Taps Bartle Bogle Hegarty for India Ads
The Diamond Producers Association (DPA) has appointed Bartle Bogle Hegarty as its creative agency in India. The organization plans to roll out the “Real Is Rare” campaign in the sub-continent in September, reported DPA chief executive officer Jean-Marc Lieberherr (pictured). The launch will be the DPA’s first venture outside the U.S. The association is also seeking to raise its budget for 2017, which will be funded by its seven member mining companies, predominantly De Beers and ALROSA.

Shenzhen Bourse to Embrace Polished Diamonds 

The Shenzhen Rough Diamond Exchange (SRDE) plans to expand into polished trading and is preparing to rebrand as the Shenzhen Diamond Exchange to reflect the upgrade. The SRDE opened a bonded warehouse in 2015, where rough diamonds and colored gemstones that have been shipped into the Chinese city can be held tax-free for traders to view. The exchange now plans to receive polished diamonds, which will then be sent to the Shanghai Diamond Exchange as per import procedures.
TAGS to Hold Six Dubai Rough Tenders

Trans Atlantic Gem Sales (TAGS) will host six rough diamond tenders at the Dubai Diamond Exchange this year. The collaboration aims to enable suppliers with smaller production to present their goods alongside larger offerings and gain greater exposure. Buyers, meanwhile, will be able to maximize the value of their viewing time, since they’ll have access to a wider range of goods, explained Mike Aggett, general manager of TAGS (pictured).

ECONWATCH 	  

Diamond Industry Stock Report

Dominion Diamond (+44%) and Stornoway Diamond (+12%) both gained significant value following reports the pair were in merger talks, with Dominion also boosted by a separate $1.1 billion takeover bid from Washington Companies. In the U.S., J.C.Penney (-7.8%) and Macys (-6.4%) led the declines amid continued concerns over the future of brick-and-mortar retail. Tiffany & Co. (+5.7%) rose on better-than-expected results.

View the detailed industry stock report
Mar 23, 2017 (11:58 GMT) Mar 16, 2017 (12:45 GMT) Chng.
$1 = Euro 0.93 0.93 0.00
$1 = Rupee 65.47 65.39 0.08
$1 = Israel Shekel 3.64 3.63 0.01
$1 = Rand 12.51 12.73 -0.22
$1 = Canadian Dollar 1.33 1.33 0.00

Precious Metals Chng.
Gold $1,248.10 $1,231.59 $16.51 1.3%
Platinum $964.00 $965.40 -$1.40 -0.1%
Silver $17.60 $17.45 $0.15 0.9%

Stock Indexes Chng.
BSE 29,332.16 29,585.85 -253.69 -0.9%
Dow Jones 20,661.30 20,950.10 -288.80 -1.4%
FTSE 7,325.46 7,405.93 -80.47 -1.1%
Hang Seng 24,327.70 24,288.28 39.42 0.2%
S&P 500 2,348.45 2,385.26 -36.81 -1.5%

Rapaport Weekly Market Comment April 6, 2017

Positive mood but market cooling ahead of Passover and Easter break. First quarter weaker than previous years with cautious retail inventory replacement. 1 ct. RAPI -1.1% in 1Q, +0.1% in March. Good demand for 0.30 to 0.49 ct. diamonds. Rough market hot with 3% to 10% dealer premiums after De Beers $580M sight exceeds expectations. Sotheby’s Hong Kong sells 59.60 ct., fancy vivid pink, IF diamond to Chow Tai Fook for record $71.2M ($1.2M/ct.). Belgium March polished exports +0.4% to $1.2B, rough imports +2% to $1.1B. Israel bourse to appoint judge to handle high-value arbitration. THE RAPAPORT PRICE LIST WILL NOT BE PUBLISHED ON APRIL 14 DUE TO THE JEWISH HOLIDAY OF PASSOVER.

RapNet Data: April 6

Diamonds 1,243,452
Value $7,638,971,461
Carats 1,353,058
Average Discount -29.96%

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

RAPAPORT ANNOUNCEMENTS
April 20-26 Thu-Wed

Rapaport Single Stone Auction

New York & Israel
View Details Apr-May 25-3 Tue-Wed

Rapaport Melee Auction

New York & Dubai View Details
May 10-17 Wed-Wed

Rapaport Single Stone Auction

New York & Israel View Details

RapNet is Fully Mobile 

App now available on iOS and Android.
Download now

QUOTE OF THE WEEK
Diamonds have value worldwide, so it comes as no surprise that an alleged organized ring would target diamond wholesalers in Manhattans diamond district in a worldwide scheme.

Acting Manhattan US attorney Joon Kim after police arrest 10 people accused of involvement in a $9M fraud scheme.

MARKETS 	  

United States: Rising consumer confidence lifting trade sentiment. Independent jewelers that are investing in social media marketing and innovation and adapting to changing consumer needs are doing well…

Belgium: Polished market steady with good demand for 0.30 to 0.49 ct., F-I, VS-SI, RapSpec A2 (3X) diamonds. Commercial-quality, J to L colors also moving well…

Israel: Trading quiet but stable. Many businesses closing for next week’s Passover holiday. Dealers trying to innovate but struggling to break stagnant trading patterns…
India: Steady polished trading driven by consistent Chinese demand. Local dealer demand improving with start of the new financial year in April…

Hong Kong: Positive sentiment but dealer activity has slowed following the Chinese New Year season and due to the public holiday this week…

Click here for deeper analysis

RAPAPORT STATEMENT 	  

Diamond Market Improves After Cautious 1
Diamond trading improved in March, with better-than-expected Chinese demand at the Hong Kong show. Suppliers were willing to compromise on price in order to generate liquidity before new, better-quality polished production becomes available.The RapNet Diamond Index (RAPI™) for 1-carat polished diamonds edged up 0.1% in March and was down 1.1% during the first quarter.

Click here for the full statement

INSIGHTS 	  

Diamond Trade Banking on Relationships

The recent diamond financing seminar in Mumbai highlighted the gulf that exists between the trade and its lenders but also a willingness to engage with one another...

Click here to continue reading

INDUSTRY 	  

Pink Diamond Smashes Records with $71M Sale 

Chow Tai Fook bought the Pink Star diamond for $71.2 million, or $1.2 million per carat, at Sotheby’s Hong Kong, making it the most valuable diamond ever sold at auction. The oval, mixed-cut, 59.60-carat, fancy vivid pink, internally flawless diamond originated from a 132.50-carat rough extracted by De Beers in 1999, and cut and polished by Steinmetz Diamonds. The stone was renamed the ‘CTF Pink’ in honor of the buyer’s founder and to mark the jeweler’s 88th anniversary.

De Beers Sees Strong Demand at $580M Sight

De Beers garnered sales of $580 million in March amid positive sentiment in the rough diamond market.That saw the company’s sales rise 2% to $1.86 billion over the first three sights of the year, according to Rapaport records, as rough demand improved following a liquidity crunch in India at the end of 2016. Sightholders reported strong demand for De Beers goods on the secondary market during the sight which ended March 31, with boxes selling at 3% to 10% premiums.

Judge to Head Israel Bourse Arbitration Unit 

The Israel Diamond Exchange (IDE) will appoint a judge to decide major disputes between its members, marking a break from its 80-year tradition of settling matters within the trade.The appointee will head the IDE’s Arbitration Institution in lieu of a bourse member, dealing with financial disputes between members valued at $400,000 and above, as well as appeals on smaller disagreements. IDE members will continue to deal with initial arbitration for matters below $400,000.
Gang of Diamond Fraudsters Arrested

New York police arrested 10 men accused of defrauding wholesalers out of diamonds worth more than $9 million. The accused wrote bad checks, forged documents and devised long stories to cheat their victims in New York, Las Vegas and Mumbai, the US Attorney’s Office for the Southern District of New York reported. Police are still looking for two more men charged in the scheme. The group focused on obtaining small melee diamonds, building up credit and trust with the diamond supplier before walking away with millions of dollars in diamonds at the moment of maximum credit, the complaint explained.

RETAIL & WHOLESALE 	  

Signet Says Shareholder Suit Lacks Merit

Signet Jewelers dismissed a lawsuit that claims it misled the public about an arbitration case in which allegations of sexual harassment surfaced. The suit was filed by Irving Firemen’s Relief & Retirement System, an institutional investor in Signet, alleging the company violated federal securities laws by disseminating false or misleading statements about the true nature of the allegations.The suit says shareholders suffered damages when Signet’s shares fell 13% last month as claims of sexual harassment at Signet surfaced in a report by The Washington Post. Signet said the lawsuit was “without merit.”

NRF Predicts Cracking Good Easter

Easter retail sales are projected to rise 6% to $18.4 billion this year, according to the National Retail Federation (NRF), as the holiday’s relatively late date means consumers will have longer to shop. The improving economy means consumers are in the mood to shop and retailers are ready to entice them with deals, the NRF added. US consumer confidence improved 8% in March from the previous month, hitting its highest level since December 2000, the Conference Board said.

Titan Optimistic Amid Indian Economic Reforms

Titan Company projected sales will increase by more than 10% this year, underpinned by government measures to formalize the Indian economy. The jeweler expects to build on exceptional growth in the last fiscal year that ended March 31, which came despite a nationwide jewelers strike and demonetization which squeezed consumer liquidity. Retail sales grew more than 40% at its flagship Tanishq stores during the fourth fiscal quarter, the company reported.

Signet, DPA Setting Synthetics Detection Criteria

Signet Jewelers is working with the Diamond Producers Association (DPA) and product-testing firm UL to establish quality criteria for equipment that detects synthetics, the jeweler said. The project with UL, formerly Underwriters Laboratories – and not United Laboratories as previously reported by Rapaport News – aims to establish criteria for identifying screening equipment for lab-grown diamonds. Thats in addition to the machines currently available from HRD Antwerp, the Gemological Institute of America (GIA) and De Beers International Institute of Diamond Grading & Research (IIDGR). Signet is not opening a testing laboratory, contrary to the original Rapaport News report.

MINING 	  

Dominion Sees More Life in Diavik Mine

Dominion Diamond Corporation has extended the life span of its jointly owned Diavik mine by two years to 2025. The company, which is currently soliciting bids to be acquired, expects output of 46 million carats for the remainder of the operation, up 16% from its previous estimate. Its revenue forecast subsequently rose 22% to $6.77 billion. Dominion owns 40% of Diavik, with Rio Tinto owning the rest.

Alrosa’s Asian Sales Gain Momentum

Alrosa raised $12.9 million from a rough-diamond auction at its new Eurasian Diamond Centre in Vladivostok. The miner sold 21,000 carats of gem-quality rough for $8 million, at an average price of $380 per carat, with the remaining $4.9 million of sales coming from 440,000 carats of industrial-grade diamonds. The main buyers were Indian and Chinese, but the sale also attracted bidders from South Korea, Europe and Russia, the company said.

Large Yellow Diamond Confirms Liqhobong Potential

Firestone Diamonds has extracted a 110-carat, light-yellow diamond, which it says is the largest discovery to date at its Liqhobong mine in Lesotho. The rough diamond surfaced during the ramp-up phase of the mine, where production began in October. The mine previously yielded 20 stones larger than 10.8 carats, including a 37-carat diamond. The new diamond’s discovery “confirms our long-held belief that Liqhobong has large-stone potential,” said Firestone CEO Stuart Brown.

DiamondCorp Sends Staff Home

DiamondCorp retrenched all employees effective April 3 after talks with its lender and a mining union failed. Negotiations with the rescue practitioner for DiamondCorp’s subsidiary Lace Diamond Mine, to commence care and maintenance at the mine, were terminated without a settlement being reached. DiamondCorp warned that the group will need to be placed in administration if an “accelerated” funding plan cannot be completed by mid-May 2017.

GENERAL 	  

GIA Launches Gem Guide for Artisanal Miners

The Gemological Institute of America (GIA) is piloting a free gemology guide for artisanal miners in producing countries. The aim is to offer basic gemological and market knowledge in regions where gem-mining takes place, the institute explained. The GIA has distributed the illustrated booklet – available in English and Tanzanian Swahili – to approximately 45 women miners in Tanzania’s Tanga region.The project was carried out in partnership with international development organization Pact at a cost $120,000, paid from the GIA’s endowment fund.
London Bourse Recruits Ethics Adviser

The London Diamond Bourse (LDB) has appointed Katherine Chappell, a longstanding member and specialist in fair-trade principles, as its special adviser for ethical issues. This means LDB can enhance its conversations around responsible sourcing and engage in a more relevant dialogue, and at the same time strengthen the bourse’s understanding of specialist issues, explained Victoria McKay, the LDB’s chief operating officer.

JBT Backs Chairman for Second Term

The Jewelers Board of Trade (JBT) has reelected Todd Wolleman, of New York-based colored-stone specialist Leo Wolleman, as chairman for another year. Michael Kaplan of New York’s Rocket Jewelry Box will remain first vice chairman, while Ann Arnold of Arnold Advisory Group in Norwood, New Jersey, will stay on as second vice chairman. Anthony Capuano, meanwhile, continues to serve as president and treasurer. Brenda Pimentel has been reelected as secretary.

Baselworld to Be Two Days Shorter

Organizers of the Baselworld watch and jewelry exhibition have reduced the 2018 edition by two days after fewer buyers and exhibitors attended this years show. A total of 106,000 buyers took part in the event, down 4% from the previous year, while the number of exhibitors reportedly fell 13% to 1,300. Baselworld said it was responding to exhibitor feedback by limiting the show to six days instead of the traditional eight. Baselworld 2018 will run from March 22 to 27.

ECONWATCH 	  

Diamond Industry Stock Report

Firestone Diamonds (+17%) led mining stocks after the rough producer discovered the largest diamond to date at its Liqhobong mine. In the U.S., retail stocks had a disappointing week amid continued reports of store closures and poor first-quarter figures. Far East stocks climbed, with the gains headed by Chow Tai Fook (+5.4%) in a week that saw the Hong Kong-based retailer buy the most expensive diamond in history.

View the detailed industry stock report
Apr 6, 2017 (12:58 GMT) Mar 30, 2017 (12:22 GMT) Chng.
$1 = Euro 0.94 0.93 0.01
$1 = Rupee 64.55 64.90 -0.35
$1 = Israel Shekel 3.64 3.62 0.02
$1 = Rand 13.84 12.86 0.98
$1 = Canadian Dollar 1.34 1.33 0.01

Precious Metals Chng.
Gold $1,253.12 $1,250.40 $2.72 0.2%
Platinum $954.75 $957.71 -$2.96 -0.3%
Silver $18.23 $18.17 $0.06 0.3%

Stock Indexes Chng.
BSE 29,927.34 29,647.42 279.92 0.9%
Dow Jones 20,648.15 20,659.32 -11.17 -0.1%
FTSE 7,304.24 7,354.17 -49.93 -0.7%
Hang Seng 24,273.72 24,301.09 -27.37 -0.1%
S&P 500 2,352.95 2,361.13 -8.18 -0.3%

Rapaport Weekly Market Comment April 13, 2017

Diamond trading quiet, with many dealers closed during the Passover and Easter holidays. U.S. brick-and-mortar retail under pressure from rise in online shopping as Credit Suisse reports record 2,880 general stores shut in 1Q. Further planned department store closures expected to impact diamond inventory movement. Francisco Partners invests $140M in online jeweler James Allen. Asia Pacific turning a corner with Chow Tai Fook 4Q same-store sales +12% in China, +4% in Hong Kong & Macau. LVMH 1Q jewelry & watch sales +14% to $932M. Dominion FY2017 sales -21% to $571M, operating loss of $57M vs. profit of $8M. ALROSA March sales +1% to $567M. U.S. Feb. polished imports -15% to $1.5B.

RapNet Data: April 13

Diamonds 1,252,860
Value $7,588,988,734
Carats 1,349,962
Average Discount -30.07%

www.rapnet.com

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

Get Current Price List | Subscribe to Rapaport | Join RapNet

RAPAPORT ANNOUNCEMENTS
April 20-26 Thu-Wed
Rapaport Single Stone Auction

New York & Israel

View Details
Apr-May 25-3 Tue-Wed
Rapaport Melee Auction

New York & Dubai View Details
May 10-17 Wed-Wed

Rapaport Single Stone Auction

New York & Israel View Details

RapNet is Fully Mobile 

App now available on iOS and Android.
Download now
QUOTE OF THE WEEK
We continue to observe stable demand in almost all categories of rough diamonds, which is a confirmation of the optimism of market participants shown during the jewelry exhibition in Hong Kong.

Yury Okoyomov, vice president of Alrosa.

INDUSTRY 	  

Alrosa March Sales Beat Expectations

Alrosa saw steady demand for most categories of its rough diamond supply in March, pushing sales above its projected figures for the first quarter. Sales grew 1% year on year to $566.6 million during the month, with analysts at VTB Capital noting this was 12% higher than expected. Rough sales totaled $554.2 million, and polished sales closed at $12.4 million. During the first quarter, rough sales came to approximately $1.3 billion, about in line with last year.

DPA, Signet, De Beers Working on ‘Project Assure’
The Diamond Producers Association (DPA) has launched “Project Assure” to design and implement an independent “Diamond Screening Device Performance Test Protocol.” The protocol is scheduled to be in place in the fourth quarter of 2017. Signet Jewelers and De Beers are supporting the project and participating in its steering committee, which will set up an advisory board comprising diamond and jewelry trade associations. An independent testing laboratory will implement the protocol and solicit companies that produce diamond-screening machines to send their devices for testing.
Kiran Gems Cuts Loose US, HK Subsidiaries

Surat-based Kiran Gems has offloaded a number of subsidiaries as part of a group-wide restructuring effort. The diamond manufacturer’s US-based jewelry operations – Kiran Jewels Inc., Unique Design, SDIL, and Prestige – will operate as independent entities, as will polished-diamond operation Kiran Export Hong Kong. Kiran Gems first announced its reorganizing process in September of last year, when it spun off its Belgium operation, Kiran Exports.

RETAIL & WHOLESALE 	  

Chow Tai Fook Shows Long-Awaited Sales Gains

Chow Tai Fook saw positive retail sales growth in the fiscal fourth quarter that ended March 31. Jewelry retail sales in mainland China increased 16%, with same-store sales rising 12% during the period. Retail sales in Hong Kong and Macau grew 1%, and same-store sales rose 4%. Growth was driven by gold products; gem-set jewelry sales rose 5% in mainland China but fell 17% in the municipalities due to a decline in the average selling price. Chow Tai Fook’s e-commerce sales spiked 85% in the mainland.
Bulgari Boosts LVMH Jewelry, Watch Performance

LVMH Moët Hennessy Louis Vuitton’s watch and jewelry sales grew 14% in the first quarter as its Bulgari brand continued to gain market share. The luxury house reported double-digit growth across all its divisions, with watch and jewelry sales rising to $931.7 million from $820.4 million a year earlier. Comparable-store sales for the unit grew 11% at constant exchange rates. Its other businesses, including leather products, perfumes and wines, all posted strong increases.

Equity Firm Buys Major Stake in James Allen

Online diamond retailer James Allen has received a $140 million equity investment from Francisco Partners. The investment gives the private-equity firm a near-50% stake in the New York-based R2Net, which owns James Allen, valuing the e-commerce company at just under $300 million, Israeli newspaper Globes reported. The companies did not disclose the terms of the deal or how the money would be used, except to say the investment would accelerate James Allen’s rapid expansion.

MINING 	  

Dominion Optimistic Despite Sales Decline

Dominion Diamond Corporation sales fell 21% to $571 million in the fiscal year that ended January 31, as the miner continues to undergo a strategic review that might result in the sale of the company. Dominion reported an operating loss of $56.6 million, compared to a profit of $8 million the previous year. However, management offered a positive view of its prospects for the next three years, driven by a ramp-up of high-value production at the Ekati mine. In March, Dominion rejected a $1.1 billion takeover bid from the Washington Companies, and subsequently formed a committee to review strategic alternatives.

Letšeng Mine Yields 114ct. Diamond

Gem Diamonds has found a 114-carat rough diamond at its Letšeng mine in Lesotho. The discovery of the D-color, type-II stone follows a drop in recovery of large diamonds at the mine, which yielded only five stones above 100 carats last year compared with 11 in 2015. Letšeng is considered one of the highest-value diamond mines by average price per carat, producing four of the 20 largest gem-quality white diamonds in history since Gem Diamonds acquired it in 2006.

Sales Steady at Lulo Diamond Mine

The latest rough diamond sale from Angola’s Lulo alluvial mine garnered $2.5 million, Lucapa Diamond Company reported. A parcel containing 1,919 carats of rough fetched an average of $1,317 per carat at the sale, which was Lulo’s third this year. So far, gross proceeds from Lulo for 2017 total $13.2 million at an average price of $2,055 per carat. The next sale will include a 92-carat, D-color diamond from the m Sierra Leone Delays 709ct. Rough Sale

The government of Sierra Leone has pushed back the schedule for selling a 709.41-carat rough diamond to give bidders more time to take part. Potential buyers can view the diamond until May 10 at the Bank of Sierra Leone in Freetown, with bids opening the following day. The process was previously scheduled to end on April 6. A local artisanal miner, Pastor Emmanuel A. Momoh, found the diamond last month in the Kono district, and the stone was presented to Sierra Leone’s president.

GENERAL 	  

AGS Honors Former President Cathy Calhoun

The American Gem Society (AGS) has presented former head Cathy Calhoun (pictured, right) with its prestigious Robert M. Shipley Award for her service to the organization and the wider industry. Calhoun, of Calhoun Jewelers, served as AGS president between 2010 and 2012, overseeing its full takeover of AGS Laboratories. She serves on several boards, including that of the Jewelers Mutual Insurance Company. She received the award during the annual AGS Conclave in Hollywood, California.

Signet Opens Larger Non-Merchandise Warehouse
Signet Jewelers has expanded its facility for distributing non-merchandise items like jewelry boxes and other store supplies. The expansion adds 56,000 square feet to the Barberton, Ohio, center, bringing its total space to 134,000 square feet. The move consolidates all the non-merchandise supply needs of Signet’s approximately 3,000 US stores into one central location. Enlarging the warehouse has tripled its available inbound and outbound capacity and will enable the company to increase employment at the facility from 40 to 58 workers by year-end.

ECONWATCH 	  

Diamond Industry Stock Report

Global markets ended the week relatively flat with investors waiting to see if the positive momentum from the first quarter will be maintained. Far East jewelers led the gains after Chow Tai Fook (+6.9%) reported positive retail sales growth for the first time in three years. Mining shares declined with Mountain Province (-32%) losing the most ground and continuing its volatility seen since the start of the year.

View the detailed industry stock report
Apr 13, 2017 (11:45 GMT) Apr 6, 2017 (12:58 GMT) Chng.
$1 = Euro 0.94 0.94 0.00
$1 = Rupee 64.44 64.55 -0.11
$1 = Israel Shekel 3.65 3.64 0.01
$1 = Rand 13.58 13.84 -0.26
$1 = Canadian Dollar 1.32 1.34 -0.02

Precious Metals Chng.
Gold $1,286.60 $1,253.12 $33.48 2.7%
Platinum $971.00 $954.75 $16.25 1.7%
Silver $18.46 $18.23 $0.23 1.3%

Stock Indexes Chng.
BSE 29,461.45 29,927.34 -465.89 -1.6%
Dow Jones 20,591.86 20,648.15 -56.29 -0.3%
FTSE 7,311.43 7,304.24 7.19 0.1%
Hang Seng 24,261.66 24,273.72 -12.06 0.0%
S&P 500 2,344.93 2,352.95 -8.02 -0.3%

Rapaport Weekly Market Comment
May 11, 2017

Dealers preparing for Las Vegas shows concerned that US orders have slowed as retailers reduce their inventory requirements. Chinese demand continues to improve. Rough trade strong with rising premiums on secondary market as De Beers limits supply at May sight. Stornoway 1Q sales of $36M ($77/ct.). Mountain Province 1Q sales $38M as Gahcho Kué average price ($72/ct.) disappoints. Hong Kong 1Q polished imports +11% to $4.7B, exports +6% to $3.4B. Israel 1Q polished exports +15% to $1.7B, rough imports +4% to $785M. Belgium April polished exports -13% to $779M, rough imports -43% to $694M. Antwerp’s Carat+ show demonstrates appetite for high-end, diamond-focused trade event.

Fancies: Steady demand for Pears in the Far East, with Ovals overtaking Pears as the strongest shape in the US. Shortages of fine-quality large Pears and Ovals. Cushions stable. Emeralds selling better than Princesses. Some demand for big fancy shapes, but buyers extremely picky. Improving demand for Radiant, 3.01 to 9.99 ct., D-I, SI1-SI2 elongated stones. Large price differentials between excellent- and average-cut fancies. Off-make, poorly cut fancies illiquid and very hard to sell, even at very deep discounts.

United States: Positive mood among large-stone dealers.Good demand for 5 ct., G-H, VS1-SI2 diamonds. VVS weak, but improvement seen in D, flawless among big stones. Steady demand for bread-and-butter 1 ct., G-H, VS-SI diamonds for the engagement ring market. Stable Mother’s Day jewelry retail sales.

Belgium: Sentiment improved during upbeat Antwerp Carat+ show. More independent European jewelers looking to source via programs. Steady demand for dossiers, 0.30 to 1 ct., G-I, VS1-SI1 and GIA-certified 1 ct.-plus, G-H, VS-SI diamonds. Dealers seeing better prices and profit from polished sourced in secondary market than direct supply from manufacturers. Rough trading strong.

Israel: Polished trading stable, with rising expectations for Las Vegas shows. US cautious as demand for I1 goods has softened. China working well. Good demand for 0.30 ct., D-J, VVS-SI diamonds and steady demand for 1 ct., I-K, SI goods. Bourse expanding partnerships with online retail platforms.

India: Market relatively slow, with pockets of good demand for select categories such as 0.50 to 0.90 ct., SIs. Some dealers on vacation during May school holiday period. Foreign buyers looking for stock ahead of Las Vegas, while suppliers keeping prices steady before the show. Polished inventory levels rising as large manufacturers boost production. Strong rough demand continues.

Hong Kong: Wholesale market stable, with many dealers still on vacation. Positive sentiment due to improvement in Chinese retail, but consumers shifting to lower price points. Steady dealer demand for 0.50 to 1 ct., D-H, VS-SI diamonds. Rising consumer interest in color diamonds and gemstones, especially sizes above 2 ct. Major jewelers exploring growth potential on e-commerce and mobile platforms.

Rapaport Weekly Market Comment
May 18, 2017 11:00 AM By Rapaport News

Positive sentiment despite lackluster May trading. Rising expectations for JCK Las Vegas with some concern the show’s weekday schedule will limit retailers’ attendance. Suppliers trying to protect polished profit margins after rough prices rose 1% to 2% at last week’s $520M De Beers sight. Graff buys 373.72 ct., D, type IIa rough for $17.5M ($46,935/ct.). Sotheby’s Geneva sells $151.5M (90% by lot) as pear-shape, 14.54 ct., fancy vivid blue, IF diamond fetches $42.1M ($2.9M/ct.) and matching pear, 16 ct., fancy intense pink, VVS2 diamond sells for $15.3M ($959,636/ct.). Christie’s Geneva garners $95M with heart-shape, 92.15 ct., D, FL diamond selling for $15M ($162,611/ct.).

Fancies: Steady demand for Pears in the Far East, with Ovals overtaking Pears as the strongest shape in the US. Shortages of fine-quality large Pears and Ovals. Cushions stable. Emeralds selling better than Princesses. Some demand for big fancy shapes, but buyers extremely picky. Improving demand for Radiant, 3.01 to 9.99 ct., D-I, SI1-SI2 elongated stones. Large price differentials between excellent- and average-cut fancies. Off-make, poorly cut fancies illiquid and very hard to sell, even at very deep discounts.

United States: New York trading stable. Sentiment improved as demand picked up in March and April after a slow start to the year. Dealers preparing for Las Vegas shows, looking to assess retail mood ahead of 2017 holiday season. Scarcity of nice-make, marketable diamonds (RapSpec A2). Steady melee demand. Retail jewelry market stable, with online sales compensating for slowdown among segments of independent jewelers.

Belgium: Polished trading slow. Buyers concentrating on narrow selection of goods they know they can sell. Shortage of better-quality RapSpec A2 diamonds. Steady demand for 0.30 to 0.50 ct., D-H, VS-SI diamonds and improving demand for larger sizes above 3 ct. SI’s selling in all sizes. Positive sentiment in the rough market with strong trading after De Beers sight.

Israel: Polished market stable. Dealers optimistic about Las Vegas shows. Suppliers shifting to niche products like color diamonds and fancy shapes in search of better margins. Steady demand and low availability for 0.70 ct., 1 ct., and 1.50 ct., J, SI1 diamonds. Good demand and strong prices for oversize 1.40 ct. and 1.80 ct. diamonds. Oval, 1 to 3.99 ct., F-I, VS2-SI2 strongest item among fancies.

India: Suppliers preparing for Las Vegas shows. Some companies sending fewer personnel as they expect lower retail visitor traffic. A few large diamond manufacturers presenting jewelry lines in Vegas. Good demand for SI’s in all sizes, with Chinese jewelers shifting to lower clarities. Rough trading steady after De Beers limited supply to $520M at May sight. Polished production continues to rise.

Hong Kong: Polished trading slow, but dealers expect stronger activity in June, with improvement in Chinese demand and retail jewelry sales. Good demand for 0.30 to 1 ct., F-M, VS-SI diamonds. Rising interest in color diamonds and gemstones. Slow traffic reported at Shanghai International Jewellery Exhibition (May 10 to 15).

Rapaport Diamond Industry Stock Tracker
Retail & Mining Shares
Jun 1, 2017 10:58 AM By Rapaport News

Signet Jewelers (-12%) suffered its second consecutive weekly decline following disappointing quarterly sales. US retail stocks were otherwise mixed, with Movado Group (-5.8%) down following a drop in revenue and Birks Group (+11%) gaining value. In India, Renaissance Jewellery (+19%) benefited from strong financial results, while other jewelry stocks were mixed. Mining stocks generally had a sluggish week, with Petra Diamonds (-5.4%) and Anglo American (-4%) both lower.

June 1, 2017 (10:57 GMT) May 25, 2017 (13:03 GMT) Chng.
$1 = Euro 0.89 0.89 0.00
$1 = Rupee 64.54 64.55 -0.01
$1 = Israel Shekel 3.55 3.58 -0.03
$1 = Rand 13.04 12.90 0.14
$1 = Canadian Dollar 1.35 1.34 0.01

Precious Metals Chng.
Gold $1,266.47 $1,255.00 $11.47 0.9%
Platinum $942.75 $950.60 -$7.85 -0.8%
Silver $17.16 $17.20 -$0.04 -0.2%

Stock Indexes Chng.
BSE 31,137.59 30,750.03 387.56 1.3%
Dow Jones 21,008.65 21,012.42 -3.77 0.0%
FTSE 7,551.86 7,509.49 42.37 0.6%
Hang Seng 25,809.22 25,630.78 178.44 0.7%
S&P 500 2,411.80 2,404.39 7.41 0.3%

USA
Birks Group $1.43 $1.29 $0.14 11.3%
Charles & Colvard $0.88 $0.89 -$0.01 -0.6%
JCPenney $4.70 $4.65 $0.05 1.1%
Kohls $38.43 $37.93 $0.50 1.3%
Macys $23.50 $23.18 $0.32 1.4%
Movado Group $21.10 $22.40 -$1.30 -5.8%
Nordstrom $41.80 $41.29 $0.51 1.2%
Signet $48.10 $54.53 -$6.43 -11.8%
Sothebys $52.59 $52.52 $0.07 0.1%
Tiffany $86.96 $85.03 $1.93 2.3%
Walmart $78.60 $78.15 $0.45 0.6%

Far East
Chow Sang Sang (HKD) 18.02 18.00 0.02 0.1%
Chow Tai Fook (HKD) 8.26 8.04 0.22 2.7%
Luk Fook (HKD) 26.50 25.70 0.80 3.1%
Sarine (SGD) 1.72 1.73 -0.01 -0.9%
ValueMax Group 0.28 0.28 -0.01 -1.8%

Europe
Damiani €1.21 €1.19 €0.02 1.9%
LVMH €228.75 €228.30 €0.45 0.2%
Kering €295.95 €294.05 €1.90 0.6%
Richemont CHF 81.15 CHF 80.90 €0.25 0.3%
Swatch Group CHF 379.00 CHF 386.00 -€7.00 -1.8%

INDIA (rupee)
Gitanjali Gems 67.05 61.85 5.20 8.4%
Goenka Diamond 0.70 0.75 -0.05 -6.7%
Goldiam Intl. 84.35 84.00 0.35 0.4%
Lypsa Gems 61.90 63.00 -1.10 -1.7%
Rajesh Exports 651.65 646.90 4.75 0.7%
Ren. Jewellery 189.90 159.85 30.05 18.8%
Titan 470.75 464.40 6.35 1.4%
Vaibhav 519.30 512.50 6.80 1.3%

AUSTRALIA
Michael Hill AUD 1.17 AUD 1.17 AUD 0.00 -0.4%

MINING STOCKS
ALROSA RUB 87.99 RUB 90.01 -RUB 2.02 -2.2%
Dominion Diamond CAD 17.41 CAD 17.41 CAD 0.00 0.0%
Kennady Diamonds CAD 3.25 CAD 3.40 -CAD 0.15 -4.4%
Lucara Diamond CAD 3.00 CAD 2.95 CAD 0.05 1.7%
Mountain Province CAD 6.66 CAD 6.66 CAD 0.00 0.0%
Peregrine Diamonds CAD 0.19 CAD 0.20 -CAD 0.02 -7.5%
Rockwell Diamonds CAD 0.06 CAD 0.06 CAD 0.00 0.0%
Shore Gold CAD 0.30 CAD 0.24 CAD 0.06 25.0%
Stornoway Diamond CAD 0.82 CAD 0.81 CAD 0.01 1.2%
UK (pence)
Anglo American 1,019.00 1,061.00 -42.0 -4.0%
Firestone Diamonds 45.40 46.00 -0.6 -1.3%
Gem Diamonds 90.25 90.00 0.3 0.3%
Gemfields 33.86 33.82 0.0 0.1%
Petra Diamonds 126.00 133.20 -7.2 -5.4%
Rio Tinto plc 3,118.50 3,166.50 -48.0 -1.5%

RAPAPORT PRESS RELEASE, October 15, 2017, New York… The Government of Sierra Leone is pleased to announce the appointment of the Rapaport Group as the marketing and sales agent of the Peace Diamond. This 709-carat diamond, discovered by diamond diggers in the village of Koryardu, is the third-largest diamond ever found in Sierra Leone and the 14th-largest worldwide. The Peace Diamond is special because it is a development diamond. Over 50% of its sale value will directly benefit the community where the diamond was discovered and the people of Sierra Leone.

An international online press conference for the Peace Diamond will be held on Tuesday, October 17 at 2 p.m. Freetown time (GMT), 10 a.m. New York time (EST). Additional information will be provided including the viewing schedule, auction date, videos and images. To participate in the press conference or to request a viewing of the diamond please email PeaceDiamond@Diamonds.Net.

“The Peace Diamond will greatly improve the lives of our people as it will bring clean water, electricity, schools, medical facilities, bridges and roads to our villages and the Kono District. This diamond represents our hope for a better future as the resources of Sierra Leone fund growth, development and jobs,” said Pastor Emmanuel Momoh, the owner of the diamond.

“I thank the local chief and his people for not smuggling the diamond out of the country, and the owners should get what is due to them and it should also benefit the country as a whole. The Government remains committed to ensuring a transparent and competitive auction process that will ensure fair market value for Sierra Leone’s diamonds,” said Dr. Ernest Bai Koroma, President of Sierra Leone. “We call on the worldwide diamond industry to bid generously for the Peace Diamond as it will bring vital infrastructure and benefit to thousands of Sierra Leone’s artisanal diggers.”

“I believe in the positive energy of the Peace Diamond and the great good it will do for the people of Sierra Leone. The lucky buyers of the Peace Diamond and the resultant polished Peace Diamonds can take pride in knowing that they have created a better life for tens of thousands of people. This is a diamond that makes the world a better place. This is a diamond with spiritual sparkle,” said Martin Rapaport, Chairman of the Rapaport Group.

Rapaport Media Contacts: PeaceDiamond@diamonds.net
U.S. Office: Sherri Hendricks +1-702-216-1041
International: Gabriella Laster +1-718-521-4976

About the Rapaport Group: The Rapaport Group is an international network of companies providing added-value services that support the development of ethical, transparent, competitive and efficient diamond and jewelry markets. Established in 1976, the Group has more than 20,000 clients in over 121 countries. Group activities include Rapaport Information Services, providing the Rapaport benchmark Price List for diamonds, as well as research, analysis and news; RapNet – the world’s largest diamond trading network, with over 15,000 members in 95 countries and daily listings of over 1.4 million carats valued at over $8 billion; Rapaport Laboratory Services, providing GIA and Rapaport gemological services in India, Israel and Belgium; and Rapaport Trading and Auction Services, the world’s largest recycler of diamonds, selling over 500,000 carats of diamonds a year. Additional information is available at www.Diamonds.Net.

Obrázky:

Almas Diamond Services založila továreň s investíciou 1,8 milióna dolárov, ktorú financuje Nemesis International, miestny predajca. Zariadenie sa zameria na kamene nad 25 000 dolárov za karát.

Medzi prvými z nich bude 813 karátový diamant Constellation, ktorý spoločnosť Nemesis kúpila v spolupráci so švajčiarskym klenotníkom Grisogonom v roku 2016 za 63,1 milióna dolárov.

Obrázky:

Rapaport Weekly Market Comment

Oct 19, 2017 11:00 AM By Rapaport News

Trading quiet due to Jewish and Indian holidays. Industry hoping stock-market wealth will boost holiday luxury spending, as Dow hits new high above 23,000. Jewelers’ holiday orders reflect lower retail inventory requirements. Bankers at Dubai conference warn of rising lending costs, inflated polished supply and excess funding. Rough trading slow with reduced premiums, as Indian factories close for Diwali. De Beers Oct. sale -25% to $370M. Chow Tai Fook 2Q China sales +15%. Ahmed bin Sulayem to replace Peter Meeus as Dubai Diamond Exchange chairman. Rapaport Group to auction 709ct. Peace Diamond in New York on Dec. 4. Rapaport wishes all our friends a happy, enlightening Diwali.

Fancies: Ovals selling well in US. Pears and Cushions steady. Squares soft, with declining interest in Princesses. US demand supporting market for commercial-quality, medium-priced fancies under 1 ct. Selective buyers of large, fine-quality fancy shapes facing limited supply. Far East demand improving as consumers seek fancy shapes at better prices. Off-make, poorly cut fancies illiquid and hard to sell, even at very deep discounts.

United States: Activity mixed as dealers return from Jewish holiday vacation. Larger companies receiving steady orders, but smaller wholesalers and dealers struggling to match last year’s sales. Steady demand for VS-SI goods. IF-VVS clarities weaker. Expectations rising for holiday season among jewelers with improved omni-channel offerings.

Belgium: Polished and rough trading relatively quiet with Indian dealers on Diwali vacation. Steady US demand as jewelers prepare for holiday season. Chinese orders improving. Steady demand for commercial-quality goods above 3 carats. Dealers stuck with large polished inventory, but note shortage of top-quality SI’s. Rough market quiet over Diwali.

Israel: Market quiet as traders return to first full week of activity after nearly a month of Jewish holidays. Sentiment weak due to low profitability and rising inventory levels. Steady demand for large rough diamonds as Israel strengthens its position in big-stone niche. US orders steady, with high volume of commercial-quality goods sent on memo.

India: Market shut down for Diwali festival that began Oct. 19. Dealers expected to return Nov. 6, manufacturers on Nov. 13. Weak demand and growing inventories putting prices under pressure. Rough demand slow as factories head to Diwali with high polished inventory. Lower gold price expected to boost Diwali jewelry sales.

Hong Kong: Dealer market quiet with Indian buyers absent during Diwali. Steady demand for 1-carat, F-H, VS-SI2 (3VG to 3X) goods. Market focused on SI-I1 stones. Retailers encouraged by Oct 1. Golden Week sales and ongoing wedding season. Tourist arrivals stable during busy holiday period. Chow Tai Fook reports strong growth (+104%) in second-quarter e-commerce sales.

Jménem senioru a drobného lidu zde na Sběrateli zastoupených děkuji za nejnovější info. Jsem vždy nervosní a čekám na novinky či stabilitu.🙄