Rapaport TradeWire - Friday, October 10, 2008
News: Diamond prices under increasing pressure as global economic situation worsens. Premiums for big stones coming down with almost no trading as sellers refuse low offers and shocking financial market conditions create extreme uncertainty. Plummeting stock markets and severe credit crunch reducing luxury demand. MasterCard reports 8% plunge in U.S. Sept. consumer retail activity. Indian market softening with some local demand for better goods but severe oversupply and few orders for lower quality U.S. commercial goods. Rupee plummets to six year low of 48.5/$. Gold surging but highly volatile at prices over $900/ounce. The Rapaport Price List will not be published Oct. 17 due to Jewish Holiday of Sukot. Special market and RapNet price updates will be available on our website. Offices will be closed October 14-15 and 21-22 due to the holiday.
RETAIL QUOTE:
"[With business down 50%] Im going to have a poor Christmas and I know it. Twenty years, and I never said that before. Christmas was always gravy for me. Now I need Christmas just to bail me out."
---Matthew Sulby, Unclaimed Diamonds in Philadelphia
WORLD NEWS:
---Govt Equity Stake in Fortis a Positive Step Towards Stability
ABN Amro’s diamond and jewelry business is confident it will continue activity following the Dutch government’s recent acquisition of Fortis. The government’s equity stake is a positive step in terms of stability for ABN Amro clients and staff and provides the necessary financial stability and solvency. "It also makes us less vulnerable to the credit crisis,” said Victor Van der Kwast, CEO of ABN Amro International Diamond and Jewelry Group. “We can continue our efforts and development path and the new government backing underpins our business.”
“We are not calling loans or pulling any clients lines though manage our business carefully,” he said. “We are trying as best we can to keep liquidity managed in a logical way and are quite selective in our choice of clients we can and do want to do business with,” he said.
---IMF Sees U.S. Economic Growth Falling Flat in 2009
The International Monetary Fund (IMF) predicted the United States would become the epicenter of the worlds financial meltdown as the group further lowered expectations for world economic growth in 2009. The IMF predicted that the economy in the United States, which grew 2 percent in 2007, would clock-in closer to 1.5 percent this year, and fall flat in 2009. The world economy, due to the United States financial crisis, is now entering a major downturn in the face of the most "dangerous shock in mature financial markets since the 1930s." It predicts that the global economy would slow to a growth of 3.9 percent in 2008, down from 5 percent in 2007, and grow only by 3 percent in 2009.
Earlier, financial services firm UBS lowered its global growth forecast for 2009 from 2.8 percent to 2.2 percent indicating that the world economy is slipping into recession following the path of the United States. The revised forecast brings the expected growth rate below the 2.5 percent level, which UBS believes to be consistent with global recession conditions. U.S. economic growth was revised from 1.2 percent to 0.3 percent anticipating three consecutive quarters of negative growth starting in third quarter 2008.
Both IMF and UBS contended that emerging markets would avoid a recession. They expect growth in China and India of between 8 percent and 10 percent.
--- Bank of Israel Lowers Interest Rate, Improves Sector Confidence
The Bank of Israel (BOI) cut its interest rates by 0.5 percentage points on Tuesday in reaction to “the sharp increase in uncertainty in financial markets around the world and its implication for Israel’s financial markets.” The reduction brings the central bank’s prime lending rate to 3.75 percent. The local diamond industry welcomed the BOIs action.
---Rapaport Broadcast News
Tune in at 4:00 p.m. EDT Friday for a look at The Ponahalo diamonds, which are the leading items from Christies Jewels the New York Sale. The two magnificent diamonds weigh approximately 102.11 carats and 70.87 carats and have been cut from a rough diamond of 316.15 carats. Once posted, the video will remain online for your viewing pleasure.
http://www.diamonds.net/news/NewsItem.aspx?ArticleID=23607
DIAMOND STATS:
Israel Sept. 2008 Imports/ Exports (YTD=2008 Year to Date)
2008 %Chng YTD %Chng
($Mil) 2007 ($Mil) 2007
Polished Exports $663 1% $5,484 3%
Polished Imports $424 17% $3,508 16%
Net Polished $239 -18% $1,976 -15%
Rough Imports $343 -4% $3,956 8%
Rough Exports $256 1% $3,020 20%
Net Rough $88 -17% $935 -18%
Diamond Account $151 -19% $1,040 -11%
RETAIL & WHOLESALE NEWS:
---Full of Doubts U.S. Shoppers Cut Spending
In response to the falling value of their homes and high gasoline prices, consumers in the United States have become more frugal all year. But in recent weeks, as the financial crisis reverberated from Wall Street to Washington, consumers appear to have cut back sharply.
Saks Inc. same-store sales in September fell 10.9 percent, and total sales fell 11.1 percent to $273.2 million for five weeks ending October 4, 2008. Saks reported that the stronger categories were jewelry, fragrances, and cosmetics.
Neiman Marcus Inc. September sales fell 11.1 percent to $415 million, same store sales fell 13 percent to $406 million. In the five-week September period, comparable revenues in the specialty retail stores (Neiman Marcus Stores and Bergdorf Goodman,) decreased 15.8 percent.
Nordstrom Inc. estimated September sales at $718 million for the five-weeks ending October 4, 2008, which represented a 5.8 percent drop from one year ago. Same-store sales decreased 9.6 percent.
JCPenney Inc. same-store sales in September fell 12.4 percent and total sales fell 10.9 percent for the five weeks ending October 5, 2008, to $1.446 billion.
Discount retailers reported sales gains though: BJs Wholesale Club Inc. experienced an 11.8 percent increase in sales during September to $892.8 million. Same-store sales rose 10.4 percent. Sales of jewelry and televisions fell about 3 percent and sales of food items rose 10 percent. Wal-Mart Stores Inc. reported same-store sales rose 2.4 percent and total sales rose 4.8 percent to $22.482 billion. Sams Club sales rose 8 percent to $4.391 billion. Same-store sales at Sams rose 4.6 percent during the five weeks ending October 3, 2008. Costco Wholesale Corp. September sales rose 10 percent to $6.67 billion and same-store sales rose 8 percent.
--- Sotheby’s HK Sale at $20M But 102ct Diamond Fails to Sell
Sotheby’s generated sales of $19.97 million (HKD 155.06 million) at its Magnificent Jewels & Jadeite auction in Hong Kong. The auction sold 49.5 percent by lot, out of 321 lots offered, and 32.5 percent by value. The pre-auction highlight, a 102.56 carat fancy vivid yellow diamond necklace, failed to sell and Sotheby’s said it would continue to seek a buyer privately.
---Wealth Survey Predicts 6% Drop in Christmas Gift Spending
American Express Publishing and the Harrison Group released the results of a poll taken two weeks ago and found almost 80 percent of the wealthy expect to spend the same or slightly more on Christmas gifts in 2008, but they were not looking at jewelry. The wealthy were cutting back on jewelry and fashion items, but wealthy consumers were continuing to spend. Overall the researchers found that the wealthy group, those earning more than $100,000 per year, plan to spend 6 percent less on gifts this year compared with Christmas 2007. More than six in 10 planned to buy fewer "big ticket items" and 83 percent said theyll wait for items to go on sale. Two percent said they have dropped luxury spending all together.
---Bidz.com Launches Arabic Language Website
Online jewelry seller Bidz.com launched a complete Arabic-language version of its online auction site. The company has also hired Arabic speaking marketing personnel to better assist this emerging marketplace of 400 million consumers.
GENERAL NEWS:
---Similar Descriptions Fit Suspect in Kay, JCPenney, Zale Robberies
Jewelry robberies at JCPenney and Zales in Lancaster, Pennsylvania, may have been related to one at a Kay Jewelers one week earlier. The two robberies on October 2 occurred less than one hour apart. JCPenney at Park City Center was robbed by a male using a handgun. Zales at the York Galleria mall was robbed by a man carrying a gun. One day earlier police reported a jewelry robbery at the Tanger Outlets Kay Jewelers with a man threatening a clerk with a gun. The suspect is a white male of about 6 feet in height and shoulder-length hair.
---Sydney Jeweler Identifies Suspect Online
Christopher Gregory, the owner of Gregory Jewellers in Australia, said that Moshe Tsitsaushivili was the suspect in a $1.5 million diamond theft in December 1997. Gregory said he recognized Tsitsaushivili’s photograph distributed on the Internet following the diamond cutters arrest in Westchester County, New York, two weeks ago. Tsitsaushivili faces a grand larceny charge in New York for stealing diamonds from a Yorktown Heights jeweler in 1989. Gregory said that hed hired Tsitsaushivili to perform invisible diamond setting, but it was on the setters second day at work when he allegedly opened a safe and walked out of the shop with two boxes of polished white diamonds. Tsitsaushivili admitted to a Westchester newspaper that hed taken the diamonds in Yorktown, but the suspect did not respond to the claim from Australia.
---India: A New Polishing Center
The central Indian state of Chhattisgarh plans to invest some $37 million in a gem and jewelry park within the next two years in its new state capital. The state set aside Rs. 1.7 billion to develop a state-of-the art diamond cutting and polishing center on 28.32 acres of territory in the city of Naya Raipur. They expect to create an estimated 5,000 jobs in addition to indirectly employing 20,000 in the area.
---Atlanta Jewelry Show Adds Four New Designers
The Atlanta Contemporary Jewelry Show (ACJS) added four jewelry designers to the roster of artists exhibiting at its second annual event including Marcia Macdonald, Chihiro Makio, Steve Midgett, and Jerry Scavezze. The show runs November 7-8, 2008, at the Defoor Centre in Atlanta, Georgia. The show features artists from 13 states and many of the artists will debut special collections.
---AGS Opens 2009 Conclave to Non-member Retailers
The American Gem Society will celebrate its 75th anniversary in 2009 by opening its annual membership gathering, the American Gem Society Conclave, to non-member retailers for the first time. The conclave, which is scheduled for April 1-4, 2009, will be held at the Hyatt Regency Chicago hotel.
---NCDIA Reminds Consumers to Inspect for Natural Color Diamonds
Consumers are taking notice of natural color diamonds in fine jewelry and demand is increasing, according to the Natural Color Diamond Association (NCDIA.) Consumer perception of colored diamonds was once limited to pink, brown, and yellow; however, the industry expanded the way that designers are incorporating natural color diamonds into their jewelry and now include blue, green, orange, purple, gray, red, and black. NCDIA advised consumers to have all natural color diamonds inspected when purchasing a piece.
Consumers can learn more about natural color diamonds at http://www.ncdia.com/
DIAMOND MINING NEWS:
---Rockwell Sale Nets $15M
Rockwell Diamonds Inc. realized total revenue of $15,219,216 from its most recent diamond sale, representing an average price of $3,680 per carat. During this September sale, Rockwell reported selling a 189.68 carat rough diamond from the Klipdam mine for $10,291,050, which equated to a value of $54,255 per carat. Concurrently Rockwell also realized $4.93 million for the sale of 3,945.84 carats of run-of-mine production from its Wouterspan, Holpan, Klipdam and Saxendrift operations.
---Petra Diamonds Places 39ct Blue Diamond on Tender
Petra Diamonds Limited placed a 39.19 carat special blue diamond in the company’s tender in Johannesburg, South Africa. It is currently available for buyers to view at the offices of SADIAMEX (Meyer Diamonds), in the Diamond Centre in Johannesburg, South Africa. This rare stone was produced from the Cullinan mine in South Africa, which is renowned as the world’s only significant source of highly prized blue diamonds.
---Motapa Diamonds Recovers 23ct Type IIa from Mothae
Motapa Diamonds Inc., and partner Lucara Diamond Corporation, recovered a 23.4 carat type IIa diamond at the Mothae project in Lesotho. The diamond is a white anhedral stone that has been confirmed type IIa by the Swiss Gemological Institute.
---Stornoway Study Outlines +24M Carats at Aviat
Stornoway Diamond Corporation and Hunter Exploration Group concluded a conceptual study of the Aviat Project in Canada. Highlights of the study found 12.4 million to 16 million tonnes total content of kimberlite material with 235 carats per hundred tonnes of total diamond content and 24.1 million to 40.3 million carats in the ground. The 486,000 acre Aviat Project is located on the Melville Peninsula in eastern Nunavut, Canada.
---De Beers to Open Voorspoed in Nov.
De Beers Group plans to open its new Voorspoed mine on November 4, 2008. The mine is expected to produce some 1 million carats per year. The Voorspoed mine will employ 420 people and would be the first opened under the black empowerment initiative.
---Zimbabwe Police Renew Crackdown on Diggers
Police in Zimbabwe have launched what is being called a massive operation against illegal diamond miners. Police intend to flush out illegal panners and restrict the movement of unauthorized people in and around Chiadzwa diamond fields in Manicaland. More than 9,000 illegal diamond panners and dealers had been arrested in and around Chiadzwa this year so far.
---S. Africa: Govt Official Appointed Acting CEO of State Diamond Trader
Futhi Zikalala, deputy director general of South Africa’s Department of Minerals and Energy, has been appointed acting CEO of the State Diamond Trader (SDT.) Zikalala, who previously sat on the board of the SDT, replaces Abbey Chikane who left the organization after his 12-month fixed-term contract expired on September 1.
---China Urges Europe to Reject BHP Bid for Rio
A senior Chinese government official urged European regulators to reject BHP Billiton Ltd/PLCs $89 billion bid for Rio Tinto Ltd/PLC, saying it would be harmful to the global economy. This past week, BHP got clearance for its bid from Australias competition regulator. The European Commission has set a January 15 deadline for its in depth review of the deal, having previously flagged its concerns about the impact of surging commodity prices on manufacturers and consumers.
---Levievs Auramine in Talks with Strategic Investors
Auramine, the company that brings together the gold mining units of Lev Levievs Leviev Group, could bring a strategic investor on board said Valery Morozov who is general director of the Leviev Groups Russia-based LLC Ruis Diamonds. Auramine is also discussing financing with Russian and foreign banks, Morozov said, without giving details. Leviev Groups Russia-based gold mining assets include the Karalveem field in Chukotka and Sopka Kvartsevaya in the Magadan region.
ECON WATCH:
For week ending October 9, 2008
Oct 9 Oct 2 Chng
$1 = Euro 0.735 0.725 0.010
$1 = Rupee 47.8 47.6 0.2
$1 = Israel Shekel 3.60 3.46 0.14
$1 = Rand 9.37 8.52 0.85
$1 = Canadian Dollar 1.15 1.08 0.07
Precious Metals
Oct 9 Oct 2 Chng
Gold $913.40 $836.80 $76.60
Platinum $1,046.00 $980.00 $66.00
Stock Indexes
Oct 9 Oct 2 Chng Chng%
BSE 11,328.36 13,055.67 -1,727.31 -13.23%
Dow Jones Avg. 8,579.19 10,482.85 -1,903.66 -18.16%
FTSE 4,313.80 4,870.34 -556.54 -11.43%
Hang Seng 15,943.24 18,211.11 -2,267.87 -12.45%
S & P 500 909.92 1,114.28 -204.36 -18.34%
Yahoo! Jewelry Index 745.49 1,001.21 -255.72 -25.54%
USA
Abazias $0.90 $1.40 -$0.50 -35.71%
Birks & Mayors $1.00 $1.30 -$0.30 -23.08%
Blue Nile $37.53 $39.62 -$2.09 -5.28%
Charles & Colvard $0.40 $0.49 -$0.09 -18.37%
Collectors Universe $4.01 $6.56 -$2.55 -38.87%
DGSE Companies, Inc. $1.59 $2.40 -$0.81 -33.75%
Fuqi International $7.03 $8.32 -$1.29 -15.50%
JCPenney $23.42 $32.80 -$9.38 -28.60%
Kohls $33.16 $42.39 -$9.23 -21.77%
Lazare Kaplan $7.38 $7.43 -$0.05 -0.67%
LJ International $0.55 $0.97 -$0.42 -43.30%
Macys $11.46 $16.21 -$4.75 -29.30%
Man Sang $1.90 $3.20 -$1.30 -40.63%
Movado Group $15.80 $20.08 -$4.28 -21.31%
Nordstrom $18.97 $25.39 -$6.42 -25.29%
Saks $6.21 $8.56 -$2.35 -27.45%
Signet $15.45 $20.08 -$4.63 -23.06%
Sothebys $11.09 $18.01 -$6.92 -38.42%
Tiffany $24.67 $33.67 -$9.00 -26.73%
Wal-Mart $51.39 $58.85 -$7.46 -12.68%
Zale $18.01 $24.08 -$6.07 -25.21%
EUROPE
Bulgari €5.05 €6.11 -€1.06 -17.35%
Citizen Holdings €4.77 €4.99 -€0.22 -4.41%
Esa €5.06 €8.08 -€3.02 -37.38%
Golay-Buchel CHF 2,100.00 CHF 2,170.00 -CHF 70.00 -3.23%
LVMH €51.29 €60.37 -€9.08 -15.04%
Pinault P-R SA €48.19 €60.91 -€12.72 -20.88%
Richemont SA CHF 40.70 CHF 49.04 -CHF 8.34 -17.01%
Sakha Diamonds €0.21 €0.27 -€0.06 -21.98%
Swatch Group CHF 175.90 CHF 194.70 -CHF 18.80 -9.66%
Theo Fennell (pence) 40.00 45.00 -€5.00 -11.11%
HONG KONG
Hang HKD 0.65 HKD 0.65 HKD 0.00 0.00%
King Fook HKD 0.49 HKD 0.55 -HKD 0.06 -10.91%
Noble Jewelry HKD 0.65 HKD 0.72 -HKD 0.07 -9.72%
Tse Sui Luen HKD 0.83 HKD 0.83 HKD 0.00 0.00%
INDIA (rupee)
Classic Diamond 23.55 32.80 -9.25 -28.20%
Gitanjali Gems 137.30 188.70 -51.40 -27.24%
Rajesh Exports 23.70 28.30 -4.60 -16.25%
Ren. Jewellery 28.95 35.40 -6.45 -18.22%
Su-Raj Diamonds 37.75 46.45 -8.70 -18.73%
Titan 890.90 1,118.85 -227.95 -20.37%
Zodiac JRD 14.30 20.00 -5.70 -28.50%
Shantivijay Jewels 164.85 157.00 7.85 5.00%
Shukra Jewellery 4.05 3.88 0.17 4.38%
Suashish Diamonds 366.25 395.25 -29.00 -7.34%
NEW ZEALAND
Michael Hill NZD 0.74 NZD 0.77 -NZD 0.03 -3.90%
SINGAPORE
Gems TV Holdings SGD 0.085 SGD 0.110 -SGD 0.025 -22.73%
Sarin Technologies SGD 0.250 SGD 0.280 -SGD 0.030 -10.71%
MINING STOCKS
(pence unless noted)
Oct 9 Oct 2 Chng Chng%
USA
Anglo American $12.25 $14.53 -$2.28 -15.69%
CANADA
Archangel CAD 0.30 CAD 0.36 -CAD 0.06 -16.67%
Harry Winston CAD 10.67 CAD 13.01 -CAD 2.34 -17.99%
Mountain Province CAD 1.60 CAD 3.02 -CAD 1.42 -47.02%
Peregrine Diamonds CAD 0.26 CAD 0.36 -CAD 0.10 -27.78%
Rockwell Diamonds CAD 0.23 CAD 0.32 -CAD 0.09 -26.98%
Shore Gold CAD 0.79 CAD 1.07 -CAD 0.28 -26.17%
Stornoway Diamond CAD 0.13 CAD 0.17 -CAD 0.04 -23.53%
True North Gems CAD 0.14 CAD 0.15 CAD 0.00 -3.45%
UK (pence)
African Diamonds 46.4 50.0 -3.6 -7.24%
BHP Billiton 1,036.0 1,121.0 -85.0 -7.58%
Firestone Diamonds 32.0 48.1 -16.1 -33.47%
Gem Diamonds 449.0 540.5 -91.5 -16.93%
Mano River 4.8 6.3 -1.6 -24.60%
Mwana Africa 7.1 15.5 -8.4 -54.19%
Namakwa Diamonds 84.5 98.0 -13.5 -13.78%
Petra Diamonds 91.0 97.5 -6.5 -6.67%
Rio Tinto plc 2,750.00 3,210.00 -460.0 -14.33%
Riadna recesia.😞
Múdry sa teší objaveniu pravdy, hlupák falošnosti.
Rapaport TradeWire - Friday, October 17, 2008
Rapaport Weekly Comments: Diamond industry under increasing pressure
as extreme stock market volatility and plummeting commodity prices
rattle global economy. World Federation of Diamond Bourses call on
mining companies to reduce sales amid market liquidity concerns and
plummeting consumer demand. De Beers to reduce next two sights. Oil
drops below $70 and gold falls below $800 amid fears of long term
recession. Large diamond prices weaker but relatively stable as
Christie’s New York sells $29 mil. (69% sold by lot) with Dubai buying
102ct., Emerald cut, L, SI1 for $4,114,500 ($40,300/ct.) and 16.05 Em.
cut, D VS2 (pot. IF) for $2,098,500 ($130,750/ct.) Rio Tinto 3Q
production -9.7% to 6.11 mil. cts. Returns continue as Indian Sept.
polished imports $726 mil. (+112%) and polished exports at $1.43 bil.
(+18%) and U.S. Aug. polished imports $1.36 bil. (+3%) but polished
exports $1.14 bil. (+10.3%). LVMH 3Q sales at $5.69 bil. (+3.1%).
Rapaport offices will be closed October 21-22 for the Jewish holiday.
=============
RETAIL QUOTE:
"The situation is grim at jewelry stores as this is normally peak
season. Sales are down 10% in September and October (for high-end
rings and necklaces.) Its not that there are fewer customers coming,
they are just spending less."
--Miao Xiaoli
Consultant with Jewelry Studio in China
===========
WORLD NEWS:
---DTC To Reduce Two Remaining Sights
The Diamond Trading Company informed sightholders in a letter that its
remaining two sights in the calendar year would be smaller and more
focused. The move follows World Federation of Diamond Bourse President
Avi Pazs appeal to diamond producers to limit the supply of rough in
an effort to curb industry debt.
---WFDB Calls on Diamond Producers to Curb Supply
The World Federation of Diamond Bourse (WFDB) appealed to diamond
mining companies to curb their supply of rough diamonds to help ensure
stability for the industry during the current financial crisis. WFDB
president Avi Paz said that his biggest concern for the diamond
industry at the moment was the level of debt which rises as
diamantaires are forced to take bank loans to purchase rough diamonds,
and should be permitted to opt out of auctions they may not be able to
afford.
Paz linked the level of debt in the industry directly to the supply of
rough and stressed that mining companies could enhance stability by
reducing the volume of rough diamonds they are supplying to the
market.
---South Africa Remains Reasonably Insulated from Financial Storm
South Africa, the continents economic powerhouse, is "reasonably
well-insulated" from the global financial crisis despite expecting low
export revenue this year. The country is one of the worlds major
exporters of diamonds and gold, neither of which has yet been damaged
by the current crisis. South Africas foreign exchange earning exports
also include platinum, coal, aluminum, iron and steel, paper products,
automotive parts and accessories. South African banks say they have
minimal exposure to the subprime or high-risk home loan securities at
the root of the U.S. crisis that has led to the collapse of a growing
list of the U.S. and European banks and financial groups.
---U.S. OPIC Guarantees $250M Credit for Botswana Diamond Industry
Overseas Private Investment Corporation (OPIC) approved a $250 million
guarantee facility for the Botswana diamond industry. OPIC said the
key objective of the facility was to develop a vibrant and robust
lending market to Botswana’s emerging cutting and polishing industry,
which will allow manufacturers to access long term capital to finance
their purchases of rough diamonds for processing.
---Rapaport Broadcast News
Market conditions reflect the times in the U.S. and Israel. Retail
diamond traders in New York say foot traffic is way down, but
consumers are indeed buying. Gold started its historic climb in Oct.
2007, so from this point on it will be tough to experience dramatic
gains in the price of the metal.
http://www.diamonds.net/news/NewsItem.aspx?ArticleID=23719
==============
DIAMOND STATS:
---U.S. Aug. Imports/ Exports (YTD=2008 Year to Date)
2008 %Chng YTD %Chng
($Mil) 2007 ($Mil) 2007
Polished Imports $1,359 3% $13,709 16%
Polished Exports $1,137 10% $10,215 44%
Net Polished $222 -24% $3,494 -26%
Rough Import $53 26% $599 12%
Rough Exports $41 52% $304 -5%
Net Rough $1 -80% $295 37%
Diamond Account $223 -25% $3,789 -22%
---India Sept. Imports/ Exports (YTD=2008 Year to Date)
2008 %Chng YTD %Chng
($Mil) 2007 ($Mil) 2007
Polished Exports $1,431 18% $12,044 25%
Polished Imports $726 112% $5,685 125%
Net Polished $705 -19% $6,359 -11%
Rough Imports $959 30% $8,468 18%
Rough Exports $77 89% $636 71%
Net Rough $882 -27% $7,832 15%
Diamond Account ($177) N/A ($1,473) N/A
========================
RETAIL & WHOLESALE NEWS:
---Christies Jewelry Sale Garners $29M
Despite a dour Dow Christie’s Jewels: The New York Sale fared well
with five of the top ten lots soaring over the million dollar mark to
bring the auction total to $29,423,450. The top lot was the highly
touted Ponahalo Diamond, a 102.11-carat rectangular cut LSI1, which
sold for $4,114,500 to Dubai-based dealer Amer Radwan. He also,
snatched up the second of the two stones, a 70.87-carat rectangular
cut, LSI1 for $2,714,800. The two stones were cut from a 316.15-carat
rough diamond discovered at the Venetia mine in 2005.
---Lazare Kaplan Revenues -24% in 1Q Fiscal 2009
Lazare Kaplan International net sales fell 24 percent to $78.3 million
in its first fiscal quarter ending August 31, 2008, and were likely to
continue to soften in the coming months due to the global economic
slowdown. Polished diamond revenues for the period rose 1 percent to
$40.9 million, while rough diamond sales fell 46 percent to $37.4
million. The company nevertheless saw profits rise 125 percent to
$900,000 as it cut cost of sales by 24 percent to $71,856.
---LVMH 3Q Sales +3%, Jewelry +11%
LVMH Moët Hennessy Louis Vuitton third quarter sales rose 3.1 percent
to $5.69 billion. Sales of jewelry and watches grew 11 percent to $894
million. For the first three quarters of its fiscal year sales have
risen 4.5 percent to $16.4 billion. The retailer stated that it was
pleased with results considering poor retailing conditions in the
United States. LVMH maintained its target outlook for the year.
---KARP Impex Buys 128ct D Flawless Rough Diamond
Surat-based diamond manufacturer Karp Impex recently bought a 128.47
carat D color flawless rough diamond on tender for $12.13 million, or
$94,765 per carat. The company called the purchase a milestone for the
Indian diamond industry which is traditionally known as a center for
cutting and polishing smaller stones. Karp did not disclose from which
company it bought the diamond but said the stone was mined on the
Orange River in South Africa.
---Macys Lowers FY Guidance But Says Need for Cash is Reduced
While Macys Inc. no longer provides monthly sales figures, the big
box retailer updated investors on recent sales heading into the final
month of its third quarter and stated that capital needs have been
met. Same-store sales at Macys during August and September fell 5.8
percent. For the year to date (February through September,) same-store
sales have declined by 3.2 percent. If weaker sales trends continue,
same-store sales in the fourth quarter could be down by 3 to 6
percent. The company said its credit facility was in good shape and
would not need additional cash.
---Thailand: Gem Trade Assoc. Remains Optimistic for Growth
Gem and jewelry export sales are expected to grow 10 percent this year
to 200 billion baht ($5.8 billion) despite warnings that the sector
would be one of the first casualties of the global economic meltdown.
The industry grew more than 20 percent in 2007. However, traders are
expected to see up to a 30 percent sales drop from their main export
markets of the United States, Japan and Europe. The new markets of
Russia, the Middle East, China and India have been growing at a rate
faster than 50 percent, but their total value is still too small to
offset the decline in the main markets.
---Chow Tai Fook Announces Deal for Peace Mark
Chow Tai Fook Enterprises bailed out troubled luxury watch maker and
retailer Peace Mark (Holdings). The company did not disclose the
amount for the acquisition, but a source close to the deal said it
paid about HKD600 million ($77.4 million) for Peace Marks retail
network in the greater China area as well as its watch-manufacturing
facilities. On the completion of the deal, Chow Tai Fook would take
over Peace Marks 120 luxury watch shops and about 1,000 watch selling
points on the mainland, Hong Kong and Macau.
=============
GENERAL NEWS:
---Mounties Arrest, Charge Ramirez for $1M Diamond Heist
Royal Canadian Mounted Police in Saskatchewan arrested and charged a
man wanted in a $1 million diamond heist in Toronto. Mounties said
they stopped a driver, Gustavo Ramirez, 38, of Toronto, acting
suspiciously on the Trans-Canada Highway near Swift Current. They said
when they approached the mans vehicle he ran away and later fought
with officers. They later learned the man was wanted by Toronto police
for armed robbery at a jewelry store where thieves stole more than $1
million in diamonds.
---Mumbai: Traders Diamonds Recovered After Planned Robbery
The Punjab police arrested the son of a bureau policeman for allegedly
robbing a Mumbai trader of diamonds. The police arrested the
26-year-old suspect on Saturday, and said they recovered diamonds
valued at Rs 1.75 crore ($363,143) from his Ludhiana house. A
policeman accomplice was also arrested. The suspect owns a jewelry
business in Patiala. On Sunday, a court remanded him and the
accomplice to police custody until October 15.
---Dubai: Saudi Arabia, Turkey Confirm Participation in MECDJ Summit
Leading diamond and jewelry traders from the Middle East, including
Saudi Arabia and Turkey, have confirmed their participation at the
Middle East-China Diamond and Jewellery Summit (MECDJS,) set to take
place at the Atlantis Hotel, Dubai, from November 8-9, 2008. The
two-day summit will feature panel discussions by leading, local and
international retailers such as Damas International, Joy Alukkas, Chow
Tai Fook, Chow Sang Sang, and Luk Fook. Top jewelry brands including
Roberto Coin, Mouawad, and Christies have also confirmed their
participation in panel discussions on the first day of the summit.
====================
DIAMOND MINING NEWS:
---Rockwell Diamonds Posts Loss in 2Q After Work Stoppage
Rockwell Diamonds posted a deficit for the second quarter ending
August 31, 2008, as a strike by employees at its operations took its
toll on production and revenues. The junior diamond mining company
reported a net loss of $2.25 million. Revenues fell 28 percent to
$10.17 million, with rough diamond sales down 29 percent to $9.9
million. Contract diamond sales and other sales made up the remaining
revenues. The average value of rough diamond sales dropped 27 percent
to $1,951.41 per carat. Rockwell reported that production at its four
operating mines declined 45 percent to 4,266.25 carats for the period.
---Rio Tinto Diamond Production -10% in 3Q 2008
Rio Tinto reported rough diamond production fell 9.7 percent to 6.11
million carats in the third quarter of 2008. The drop came as a result
of declines in production at its flagship Argyle mine in Australia and
at its Diavik mine in Canada. Rio Tinto’s third operating mine is the
Murowa alluvial mine in Zimbabwe. For the first nine months of the
year, Rio Tinto’s total diamond production fell 23 percent to 13.962
million carats.
---Gem Diamonds Average Prices Soften in 3Q
Gem Diamonds said it saw a softening of prices of higher quality
diamonds mined at its Letseng mine in Lesotho during the third quarter
of 2008, indicating that the current global economic crisis could have
a continued effect of pricing in the short term. The company recorded
average sales of $2,173 per carat from Letseng in the three months
ending September 30, down 13.5 percent. Letseng is the highest per
value diamond mine in the world and has produced three of the top 20
sized stones in history during the past two years.
---S&P Places ALROSA on CreditWatch After Bailout of KIT Bank
Standard & Poors Ratings Services (S&P) reviewed its long term
corporate credit rating of Russian diamond mining company ALROSA to
BB, placing it on CreditWatch with negative implications. S&P
explained the move came in response to ALROSA’s subsidiary, Investment
Group ALROSA’s, planned acquisition of 45 percent of KIT Finance
Investment Bank “which is experiencing financial difficulties.”
---Russia Permits Archangel Investment 50% Stake in Arkhangelsk
The governmental commission for control over foreign investments is
considering about 10 applications from foreigners who wish to work
with Russian strategic industries, including diamonds. The first
allowance was for the sale of a 49.99 percent stake in the
diamond-mining company Arkhangelsk-Geologodobycha to Luxemburgs
Archangel Investment, indirectly controlled by De Beers. The
government commission reserved certain mandatory conditions, such as
the processing of diamonds in Russian territory in amounts to be
agreed with the Russian government later.
---Lonhro Mining Raises $3M in Share Placement
Lonrho Mining Limited, formerly Nare Diamonds, raised $2.89 million in
a share placement on the Australian Stock Exchange. The company said
it would use the funds to further exploration and development of its
Lulo project in Angola, to finance its Schmidtsdrift operation until
completion of its sale of the mine, and for general working capital
purposes. Lonrho agreed in August to sell the Schmidtsdrift mine to
new Africa Mining for $13.5 million in order to focus on the
development of Lulo.
===========
ECON WATCH:
For week ending October 16, 2008
Oct 16 Oct 9 Chng
$1 = Euro 0.743 0.735 0.008
$1 = Rupee 48.6 47.8 0.8
$1 = Israel Shekel 3.73 3.60 0.14
$1 = Rand 10.14 9.37 0.77
$1 = Canadian Dollar 1.18 1.15 0.03
Precious Metals
Gold $805.10 $913.40 -$108.30
Platinum $906.00 $1,046.00 -$140.00
Stock Indexes
BSE 10,581.49 11,328.36 -746.87 -6.59%
Dow Jones Avg. 8,979.26 8,579.19 400.07 4.66%
FTSE 3,861.39 4,313.80 -452.41 -10.49%
Hang Seng 15,230.52 15,943.24 -712.72 -4.47%
S & P 500 946.43 909.92 36.51 4.01%
Yahoo! Jewelry Index 793.20 745.49 47.71 6.40%
USA
Abazias $0.52 $0.90 -$0.38 -42.22%
Birks & Mayors $0.85 $1.00 -$0.15 -15.00%
Blue Nile $35.08 $37.53 -$2.45 -6.53%
Charles & Colvard $0.36 $0.40 -$0.04 -10.00%
Collectors Universe $4.13 $4.01 $0.12 2.99%
DGSE Companies, Inc. $2.10 $1.59 $0.51 32.08%
Fuqi International $7.48 $7.03 $0.45 6.40%
JCPenney $21.02 $23.42 -$2.40 -10.25%
Kohls $30.43 $33.16 -$2.73 -8.23%
Lazare Kaplan $6.00 $7.38 -$1.38 -18.70%
LJ International $0.56 $0.55 $0.01 1.82%
Macys $10.05 $11.46 -$1.41 -12.30%
Man Sang $1.81 $1.90 -$0.09 -4.74%
Movado Group $15.67 $15.80 -$0.13 -0.82%
Nordstrom $16.64 $18.97 -$2.33 -12.28%
Saks $5.40 $6.21 -$0.81 -13.04%
Signet $14.07 $15.45 -$1.38 -8.93%
Sothebys $10.65 $11.09 -$0.44 -3.97%
Tiffany $27.61 $24.67 $2.94 11.92%
Wal-Mart $54.62 $51.39 $3.23 6.29%
Zale $16.73 $18.01 -$1.28 -7.11%
EUROPE
Bulgari €5.30 €5.05 €0.25 4.95%
Citizen Holdings €4.93 €4.77 €0.16 3.35%
Esa €4.95 €5.06 -€0.11 -2.17%
Golay-Buchel CHF 2,170.00 CHF 2,100.00 CHF 70.00 3.33%
LVMH €51.59 €51.29 €0.31 0.59%
Pinault P-R SA €40.71 €48.19 -€7.49 -15.53%
Richemont SA CHF 39.04 CHF 40.70 -CHF 1.66 -4.08%
Sakha Diamonds €0.25 €0.21 €0.04 17.37%
Swatch Group CHF 173.00 CHF 175.90 -CHF 2.90 -1.65%
Theo Fennell (pence) 37.25 40.00 -€2.75 -6.88%
HONG KONG
Hang HKD 0.65 HKD 0.65 HKD 0.00 0.00%
King Fook HKD 0.44 HKD 0.49 -HKD 0.05 -10.20%
Noble Jewelry HKD 0.60 HKD 0.65 -HKD 0.05 -7.69%
Tse Sui Luen HKD 0.83 HKD 0.83 HKD 0.00 0.00%
INDIA (rupee)
Classic Diamond 25.25 23.55 1.70 7.22%
Gitanjali Gems 119.85 137.30 -17.45 -12.71%
Rajesh Exports 24.05 23.70 0.35 1.48%
Ren. Jewellery 29.55 28.95 0.60 2.07%
Su-Raj Diamonds 31.15 37.75 -6.60 -17.48%
Titan 857.00 890.90 -33.90 -3.81%
Zodiac JRD 13.15 14.30 -1.15 -8.04%
Shantivijay Jewels 160.60 164.85 -4.25 -2.58%
Shukra Jewellery 3.85 4.05 -0.20 -4.94%
Suashish Diamonds 380.95 366.25 14.70 4.01%
NEW ZEALAND
Michael Hill NZD 0.70 NZD 0.74 -NZD 0.04 -5.41%
SINGAPORE
Gems TV Holdings SGD 0.085 SGD 0.085 SGD 0.000 0.00%
Sarin Technologies SGD 0.230 SGD 0.250 -SGD 0.020 -8.00%
Múdry sa teší objaveniu pravdy, hlupák falošnosti.
Rapaport TradeWire - Friday, October 24, 2008
Rapaport Weekly Comments: Diamond trading activity stalls as buyers
face extreme uncertainly about viability of current price levels. The
trade expects prices to fall but no one knows by how much. Bridal
demand relatively stable but almost everything else is on hold as
consumers put off purchases and liquidity deteriorates. Extreme
volatility in currency markets drive Euro to two year low ($/0.781),
and Rupee plummets below $/50 as investors flee emerging markets.
India’s GJEPC calls on rough producers to curtail supplies amid
reports that De Beers, Russia and other suppliers will reduce supplies
by as much as 30%. BHP 1Q09 diamond production at 773,000 cts. (-24%).
Antwerp Diamond Conference cancelled due to financial crisis. Antwerp
press reports court seizure of $128 mil. of diamonds from Omega
Diamonds the second largest importer of rough diamonds from Africa
accounting for 12% of Antwerp’s rough imports. U.S. retail chain
Mervyns to close after holidays.
RETAIL QUOTE:
"Business is up one month, down the next. Funnily enough though, the
last three weeks when the news has been at its blackest, its been
pretty good. People still get engaged or married and celebrate their
birthdays during a recession, and they are still buying jewelry. It
could be because the recession has been so rammed down our throats and
were talking such huge, huge sums people cannot comprehend. Its out
of their control. So I think they sit back and think, "Theres nothing
I can do so I might as well enjoy myself and buy those earrings."
---Jeremy Hoye
Jeremy Hoye Store in Brighton, UK
WORLD NEWS:
---GJEPC Calls for Reduced Supply of Rough to Maintain Stability
The Gem & Jewellery Export Promotion Council of India appealed to all
the rough producers to curtail the supply of rough diamonds for a few
weeks in order to maintain stability and confidence in the diamond
market during the current economic turmoil.
---Preventative Diamond Seizure Paralyzes Trade
The court in Antwerp has seized EUR 100 million ($128 million) in
diamonds from the Omega Diamonds firm, Groot Bijgaarden De Standaard
reported citing court sources. This past Wednesday, a search took
place at Omega Diamonds, and the investigating judge decided to empty
the safes, and seized diamonds. Sources at the court stated the
consignment of diamonds without the required Kimberley Process
Certificates was found and assume from that they were illegally
imported.
The court makes it a practice in major diamond investigations to seize
the stocks immediately. The diamond sector is hoping for the passing
of a bill whereby preventive attachment will be possible only
following an experts permission. The Antwerp World Diamond Centre
said the seizures were disrupting market processes and urges that the
goods be released. There are ways of investigating security other than
such a seizure which could have far-reaching consequences for the
entire sector, according to AWDCs CEO Freddy Hanard.
---BHP Billiton Diamond production -24% in Sept. Quarter
BHP Billiton reported a 24 percent fall in diamond production to
773,000 carats in the first quarter of its fiscal year ending
September 30, 2008. Quarterly production declined due to lower grades
and a change in ore source expected as it transitions its Ekati mine
from open pit to underground mining.
---ALROSA Considers Holding Back 30% of Supplies
ALROSA could slash supplies of rough offered to the market by up to 30
percent. The reduction would affect the whole range of ALROSAs
diamonds. The decision was said to help stabilize the world diamond
market. A diamond stockpile would be set up at the Gokhran and it too
would refrain from selling rough on the market.
---Myanmar Gem Auction Nets $175M
The most recent government sale of gemstones in Myanmar fetched about
$175 million during a two-week auction, which ended October 16. The
amount was up about 46 percent from the countrys auctions held in
June and March, and up 17 percent from fourth-quarter auction in 2007.
Myanmar generally holds three auctions per year. An organizer of the
gems emporium said some 2,600 gem merchants participated in the
auction. It was estimated that some 2,000 buyers from China attended
the event.
---Trade Between EU, Asia Grew 60% in Seven Years
China led the trade boom between Asian countries and the European
Union (EU) over the past seven years. Between years 2000 and 2007,
EUs trade with the 16 Asian countries grew by around 60 percent. Main
EU exports to the Asian countries were aircraft, diamonds, electronic
circuits, motor cars, and medicine, while the main imports were
computers and parts, mobile phones, motor cars and digital cameras.
---Rapaport Broadcast News
Comments from Israel, India, and New York show broad weakness across
the markets; Royal Asscher appoints a new sales manager for North
America to push the diamond business; Tom Cushman is recognized for
his sustainable mining work in Madagascar; and retailer Levinson
Jewelers builds brand awareness with event sponsorships.
http://www.diamonds.net/news/NewsItem.aspx?ArticleID=23791
RETAIL & WHOLESALE NEWS:
---Japans Sept. Dpt. Store Sales -5%
Department store sales across Japan fell 4.7 percent during September,
based upon same-store totals. Total sales were JPY524.0 billion ($5.19
billion.) Jewelry sales fell 6.4 percent as economic pressure weighed
on the luxury goods sector.
---Tanishq Jewelry Sales Spurs Growth at Titan in 2Q
Titan Industries reported that sales at its jewelry unit under the
Tanishq brand rose 71 percent to INR 752.18 crore ($152.34 million) in
its second fiscal quarter ending September 30, 2008, largely due to
the rise in gold prices. The group’s total sales grew 52.4 percent to
INR 1,104.85 crore ($223.77 million) for the period. Growth was
spurred by the jewelry unit under the Tanishq brand which made up 68
percent of total sales. Titan’s watch sales rose 18.8 percent to INR
303.45 crore ($61.46 million,) and its “other businesses” grew 93.7
percent to INR 17.62 crore (3.57 million.) The company’s net profit
increased 88 percent to INR 87.14 crore ($17.65 million) in the
quarter.
---Mervyns to Close
Retail chain Mervyns has decided to close after exhausting its
options under bankruptcy protection. The retailer filed for bankruptcy
in July. Mervyns has been operating for nearly six decades across the
southwestern United States, mostly in California. The company will
conduct a "going out of business" sale during Christmas season.
---Derco Jewelers Emerges from Chpt. 11
Derco Jewelers Inc. of San Francisco emerged from Chapter 11
bankruptcy in less than 10 months after filing for protection. U.S.
Bankruptcy Judge Dennis Montali confirmed Derco’s status on October
15, 2008. Derco is a full service jeweler and manufacturer established
in 1939, and maintains two stores in San Francisco.
---James Avery Open 48th Location
James Avery opened its newest store at the Victoria Mall in Texas
earlier this month. The jeweler will hold a ribbon cutting ceremony on
October 23 with a grand opening celebration from 6 p.m. to 8 p.m. With
the new store in Victoria, James Avery now has 48 locations.
---Bidz.com Selects Mercent Retail to Drive-up Traffic, Sales
Online jewelry retailer Bidz.com launched the Buyz.com online
storefront this year to provide gold, silver, and brand name jewelry
and watches at fixed prices. Bidz.com recently adopted the on-demand
Mercent Retail platform to promote these products on all the leading
comparison shopping engines and affiliate networks. Mercent helps
retailers drive product sales through more than 50 e-commerce
channels, including comparison shopping engines, transactional
marketplaces, paid inclusion programs, and affiliate networks.
Bidz.com revenues grew 42 percent in 2007 to $187.1 million. During
the first half of 2008, Bidz.com achieved sales of $116.9 million, a
39 percent increase from 2007.
---India: Drop in Diamond Demand Forces Shops to Close
With the demand for polished diamonds in the global market on the
slide there are few takers for polished diamonds and the rough
diamonds supplied to the industry have piled up in Surat. For the
first time in the past several years, the industry has asked rough
diamond suppliers to cut supplies. Recently, as many as 2,000 smaller
diamond units have closed. At the same time, the decreased demand for
polished diamonds will force as many as 2,000 more units to shut after
Diwali vacation.
---Wealthy Shoppers in Russia Cool Spending Habits
Russia, one of the worlds fastest growing and largest luxury markets,
is being hit by the financial crisis. After months of resilience
consumers had finally started to rein in spending on pricey items such
as jewelry, and fashion apparel.
WHO IS NEWS:
---Mogae Wins $5M Prize for Good Governance
Botswanas former President Festus Mogae was named the winner of a $5
million prize for good governance in Africa, winning praise for
putting his countrys mineral wealth to good use. Announcing the
Ibrahim Prize for Achievement in African Leadership in Londons City
Hall, former U.N. Secretary General Kofi Annan also praised Mogaes
efforts in fighting AIDS in the southern African nation.
---Rockwell Names Morgan as CFO
Rockwell Diamonds Inc. appointed Desmond Morgan as its new chief
financial officer (CFO.) Morgan replaces Dominique de la Roche, who
resigned from the role and will leave the company.
---Two Pink Panther Members Caught in Monaco
INTERPOL reported the arrest of two suspected members of the so-called
Pink Panther gang of jewel thieves in Monaco after one suspect was
taken to a hospital following a car crash. Dusko Poznan, 30, from
Bosnia-Herzegovina, and an unnamed 27-year-old Serbian were arrested
after local police recognized their photos from INTERPOL. Police
identified Poznan from a photo circulated by INTERPOL when they went
to the hospital to question the man following the accident in Monaco.
The Pink Panther gang is believed to have stolen some $135 million
worth of jewelry from shops across 20 countries. The group earned its
name in 2004 for hiding a diamond ring in a jar of face cream -- which
had been a ploy used in one of the Pink Panther films starring the
late Peter Sellers.
GENERAL NEWS:
---DMIA NY Open Meeting Oct. 27
The Diamond Manufacturers & Importers Association of America (DMIA) in
New York invites all interested parties to an important legal program
on Memos, Consignments, Accounts Receivable, Security Agreements,
UCC’s and Bankruptcy to be held on Monday, October 27th beginning
promptly at 4:00 p.m. The program will take place in the Grand
Ballroom of the 3 West Club located at 3 West 51st Street, NYC. Any
member of the diamond and jewelry industry wishing to attend MUST
contact the DMIA office to reserve a space. (212) 944-2066
---Panama Diamond Exchange to Launch on October 24
The Panama Diamond Exchange (PDE) will officially launch on Friday
October 24, 2008. The PDE is being launched as a first stage towards
developing Panama as a hub for the Latin American diamond and jewelry
markets.
---Fifth Antwerp Diamond Conference Postponed
In light of the financial crisis, the Fifth Antwerp Diamond
Conference, which was scheduled to take place in Antwerp on November
17 and 18, has been postponed. The Antwerp World Diamond Centre is
reviewing future dates for the conference.
---Positive Response to Dubai Diamond Summit
Organizers of the inaugural Middle East-China Diamond and Jewellery
summit in Dubai have received an overwhelming response for the event.
More than 500 diamond traders, retailers and jewelry stakeholders will
take part in summit to be held at the Atlantis Hotel, The palm
Jumeirah in Dubai on November 8-9, the Dubai Multi Commodities Centre
(DMCC) said. Delegates to the Dubai summit include representatives
from 70 companies in China, more than 150 delegates from across Europe
and India, and more than 280 participants from the Middle East.
---Partnership Africa Canada: Diamonds and Human Security
In this years Diamonds and Human Security Annual Review from
Partnership Africa Canada (PAC,) the group turned its attention to
evidence of a large and growing trade in illicit rough diamonds,
running in parallel with the Kimberley Process Certification Scheme
that is supposed to eliminate the practice.
The review covers the diamond trade in 13 countries of Africa and
South America. It found Venezuelas production vanishes without a
trace, and discussed developments in Côte dIvoire, the last bastion
of conflict diamonds. The increasingly formulaic Kimberley Process is
becoming less rather than more effective in curtailing abuse and
criminality, PAC concluded.
---GemClear Finds Non-compliant Topaz in U.S. Market
GemClear found irradiated blue topaz in the United States market that
was not in compliance with Nuclear Regulatory Commission ("NRC")
regulations. The gems, from a New York dealer, were believed to be
legal, but were not. The gems will be at the U.S.-legal level of
compliance at the end of November 2008. There is no process or
treatment that can accelerate the decay rate, only time. The
non-compliant stones have been withheld from the market.
---Sundance Diamonds Opens New Testing Facility in Israel
Sundance Diamonds, a high pressure high temperature (HPHT) diamond
processing company, will officially open its new diamond testing
service in the Israel Diamond Exchange on October 30. The new facility
is located in the Brinks office in the Maccabi Building of the Ramat
an exchange and will operate by appointment only.
DIAMOND MINING NEWS:
---ALROSA to Resume Rough Diamond Supply to Armenia
ALROSA will resume its supply of rough diamonds to Armenia after a
three year break. The deal follows an agreement signed in August 2007
between ALROSA and the Armenian government to cooperate in the jewelry
industry. ALROSA plans to deliver diamonds worth $28 million to $30
million to four Armenian companies, the largest of which is DCA.
---DiamonEx Starts First Sale of Lerala Diamonds
DiamonEx commenced the sale of its first parcel of diamonds from the
Botswanan Lerala mine presenting 10,000 carats for viewing in
Botswana. The sale was previously postponed from its pre-scheduled
date in August as delays in commissioning the mine meant it did not
have a sufficiently large parcel at that time. The stones were
recovered during the commissioning and start-up phase at Lerala and
will be presented in Antwerp after this week’s showing in Gaborone.
DiamonEx also launched plans to raise UAD 2 million through the
placement of 20 million of its shares.
---Gemfields Adjusts Offer for Tanzanite One
Gemfields Resources adjusted its offer to purchase Tanzanite One
Limited following Tanzanite One’s dividend payment in September.
Gemfields has now proposed a tender offer of 42.75 pence per share for
30,754,970 shares, or a total GBP13.15 million ($21.38 million.)
Gemfields --together with its parent company Pallinghurst Resources--
currently owns 18.5 percent of Tanzanite One and acceptance of the
offer will push that stake up to approximately 60 percent. Gemfields,
which holds exclusive rights to the Faberge brand, has argued that the
acquisition of Tanzanite One would help it become the worlds leading
miner of colored gemstones. The offer closes November 11.
ECON WATCH:
For week ending October 23, 2008
For week ending October 23, 2008
Oct 23 Oct 16 Chng
$1 = Euro 0.774 0.743 0.031
$1 = Rupee 50.0 48.6 1.4
$1 = Israel Shekel 3.83 3.73 0.10
$1 = Rand 11.03 10.14 0.89
$1 = Canadian Dollar 1.25 1.18 0.07
Oct 23 Oct 16 Chng
Precious Metals
Gold $721.90 $805.10 -$83.20
Platinum $823.00 $906.00 -$83.00
Stock Indexes
Oct 23 Oct 16 Chng Chng%
BSE 9,771.70 10,581.49 -809.79 -7.65%
Dow Jones Avg. 8,691.25 8,979.26 -288.01 -3.21%
FTSE 4,087.83 3,861.39 226.44 5.86%
Hang Seng 13,760.49 15,230.52 -1,470.03 -9.65%
S & P 500 908.11 946.43 -38.32 -4.05%
Yahoo! Jewelry Index 681.46 793.20 -111.74 -14.09%
USA
Abazias $0.51 $0.52 -$0.01 -1.92%
Birks & Mayors $0.90 $0.85 $0.05 5.88%
Blue Nile $27.97 $35.08 -$7.11 -20.27%
Charles & Colvard $0.32 $0.36 -$0.04 -11.11%
Collectors Universe $3.56 $4.13 -$0.57 -13.80%
DGSE Companies, Inc. $1.90 $2.10 -$0.20 -9.52%
Fuqi International $7.56 $7.48 $0.08 1.07%
JCPenney $19.50 $21.02 -$1.52 -7.23%
Kohls $28.26 $30.43 -$2.17 -7.13%
Lazare Kaplan $5.63 $6.00 -$0.37 -6.17%
LJ International $0.43 $0.56 -$0.13 -23.21%
Macys $9.61 $10.05 -$0.44 -4.38%
Man Sang $1.61 $1.81 -$0.20 -11.05%
Movado Group $14.05 $15.67 -$1.62 -10.34%
Nordstrom $16.88 $16.64 $0.24 1.44%
Saks $5.68 $5.40 $0.28 5.19%
Signet $12.23 $14.07 -$1.84 -13.08%
Sothebys $8.65 $10.65 -$2.00 -18.78%
Tiffany $23.80 $27.61 -$3.81 -13.80%
Wal-Mart $52.76 $54.62 -$1.86 -3.41%
Zale $14.91 $16.73 -$1.82 -10.88%
EUROPE
Bulgari €5.55 €5.30 €0.25 4.72%
Citizen Holdings €4.55 €4.93 -€0.38 -7.71%
Esa €4.86 €4.95 -€0.09 -1.82%
Golay-Buchel CHF 2,100.00 CHF 2,170.00 -CHF 70.00 -3.23%
LVMH €50.46 €51.59 -€1.13 -2.19%
Pinault P-R SA €40.93 €40.71 €0.22 0.54%
Richemont SA CHF 24.60 CHF 39.04 -CHF 14.44 -36.99%
Sakha Diamonds €0.27 €0.25 €0.02 6.00%
Swatch Group CHF 177.10 CHF 173.00 CHF 4.10 2.37%
Theo Fennell (pence) 28.00 37.25 -€9.25 -24.83%
HONG KONG
Hang HKD 0.65 HKD 0.65 HKD 0.00 0.00%
King Fook HKD 0.39 HKD 0.44 -HKD 0.06 -12.50%
Noble Jewelry HKD 0.54 HKD 0.60 -HKD 0.06 -10.00%
Tse Sui Luen HKD 0.83 HKD 0.83 HKD 0.00 0.00%
INDIA (rupee)
Classic Diamond 24.45 25.25 -0.80 -3.17%
Gitanjali Gems 105.20 119.85 -14.65 -12.22%
Rajesh Exports 25.65 24.05 1.60 6.65%
Ren. Jewellery 24.90 29.55 -4.65 -15.74%
Su-Raj Diamonds 30.05 31.15 -1.10 -3.53%
Titan 979.65 857.00 122.65 14.31%
Zodiac JRD 12.65 13.15 -0.50 -3.80%
Shantivijay Jewels 159.00 160.60 -1.60 -1.00%
Shukra Jewellery 4.04 3.85 0.19 4.94%
Suashish Diamonds 393.65 380.95 12.70 3.33%
NEW ZEALAND
Michael Hill NZD 0.66 NZD 0.70 -NZD 0.04 -5.71%
SINGAPORE
Gems TV Holdings SGD 0.080 SGD 0.085 -SGD 0.005 -5.88%
Sarin Technologies SGD 0.180 SGD 0.230 -SGD 0.050 -21.74%
MINING STOCKS
(pence unless noted)
Oct 23 Oct 16 Chng Chng%
USA
Anglo American $9.83 $11.00 -$1.17 -10.64%
CANADA
Archangel CAD 0.24 CAD 0.50 -CAD 0.26 -52.00%
Harry Winston CAD 9.66 CAD 9.74 -CAD 0.08 -0.82%
Mountain Province CAD 1.42 CAD 1.32 CAD 0.10 7.58%
Peregrine Diamonds CAD 0.25 CAD 0.29 -CAD 0.04 -14.04%
Rockwell Diamonds CAD 0.18 CAD 0.18 CAD 0.00 0.00%
Shore Gold CAD 0.61 CAD 0.58 CAD 0.03 5.17%
Stornoway Diamond CAD 0.12 CAD 0.11 CAD 0.01 9.09%
True North Gems CAD 0.10 CAD 0.15 -CAD 0.05 -33.33%
UK (pence)
African Diamonds 47.9 47.3 0.6 1.27%
BHP Billiton 823.0 811.0 12.0 1.48%
Firestone Diamonds 19.5 27.3 -7.8 -28.44%
Gem Diamonds 308.0 285.0 23.0 8.07%
Mano River 4.3 4.4 -0.1 -2.86%
Mwana Africa 2.5 5.3 -2.8 -52.38%
Namakwa Diamonds 54.0 57.5 -3.5 -6.09%
Petra Diamonds 75.0 90.5 -15.5 -17.13%
Rio Tinto plc 2,240.00 2,050.00 190.0 9.27%
🙄 😉
Múdry sa teší objaveniu pravdy, hlupák falošnosti.
vvvvvRapaport TradeWire - Friday, October 31, 2008
Rapaport Weekly Comments: Limited trading as diamond markets try to
absorb financial crisis shock and India celebrates Diwali. U.S. Retail
sales holding up better than expected but few if any are ordering new
merchandise. Cutters and dealers highly concerned about diamond price
levels and market liquidity as banks are expected to tighten credit
access. U.S. Sept. department store sales -5% to $16.5 bil., 3Q GDP
-0.3%, jewelry price index +9%. Demand for large stones remains soft.
Fine cut carat to 2ct, SI, doing well as large retailers honor
previous commitments for holiday season. India’s Diwali holiday season
attracts jewelry demand as gold becomes more affordable but demand is
weaker than last year. De Beers 3Q08 production down -4.1% to 13.3
mil. carats. U.N. extends embargo on Ivory Coast diamonds for one year
as war in Congo intensifies. NGOs warn of increased diamond smuggling
from Venezuela and Zimbabwe ahead of Kimberley Process meeting.
ANNOUNCEMENTS:
==================================-
RAPAPORT DIAMOND CONFERENCE 2008
NOW AVAILABLE ON VIDEO DVD !
==================================-
Did you predict the financial crisis?
On September 8, the Rapaport Conference did.
See and hear what the experts had to say.
Speakers and Diamond Specific Topics included:
Rajiv Mehta: Dimexon/Eurostar - Globalization
Victor Van der Kwast: ABN Amro - Banking
Rahul Kadakia: Christies - Big Stone Boom
Gerald Celente: World Economy
Martin Rapaport: Diamond Markets of the Future
Ralph Destino: Chairman GIA - Branding
Neil Goldberg: CEO Zale - Retailing
Mark Moeller: President AGS - Are Bread & Butter Goods Toast?
James Shigley: GIA Research - Treatments and Synthetics
Order now - $100 plus shipping
Email: IDC@Diamonds.Net
Telephone: +1-702-893-9400
=================================.
RAPAPORT TO SPEAK IN MUMBAI INDIA
=================================.
Martin Rapaport will discuss Diamond Prices
Thursday, November 6 at 6 PM
Taj Palace Hotel – Mumbai
Contact:
india@diamonds.net
+9122-6637-6633
========================================-
For additional information about rapaport events
http://www.diamonds.net/Events/default.aspx
========================================-
RETAIL QUOTE:
"In this tough economy, jewelry has fallen down the list of priorities
for many. Its a struggle [to survive.] But Im determined to make it
work by adding engraving services and offering designer products and
quality custom pieces."
---Brenda Cohen
Berwick Jewelers, Savannah, Georgia
WORLD NEWS:
---Rapaport: Prices Under Pressure, Expected to Decline
Rapaport chairman Martin Rapaport spoke at the Ramat Gan diamond
bourse about the current state of the diamond business and explained
that diamond prices are under pressure and expected to decline. His
comments were met with appeals from diamond manufacturers and dealers
to freeze the Rapaport Price List or stop publishing it until after
Christmas. Rapaport replied that he could not do this, and would
publish his opinion of diamond prices on a weekly basis as he has for
the past 30 years. Rapaport stressed his ethical obligation to publish
prices even if they were lower.
---Gubelin Gem Lab Receives HPHT Treated Diamond with Fake GIA Report
The Gubelin Gem Lab stated that it had recently received a diamond for
testing that displayed indications of HPHT treatment, but whose
accompanying GIA certificate didnt mention treatment. Gubelin Gem Lab
suspected the certificate was a forgery "based on the appearance and
content of genuine GIA reports." The diamond -- D Color, IF clarity,
Excellent Cut grade -- exceeded 2 carats.
---UN Extends Diamond Sanctions on Cote dIvoire
Cote dIvoire will face sanctions on its diamond trade until at least
October 31, 2009. The United Nations Security Council unanimously
approved a resolution drafted by France that extends the ban on
selling arms to Cote dIvoire and against buying rough diamonds for
another year. The Council made presidential elections part of the
deal. It will review sanctions "no later than three months after the
holding of open, free, fair and transparent presidential elections."
---PAC and Global Witness Call for Swift Action to Address KP Flaws
As the Kimberley Process (KP) rough diamond certification scheme’s
fifth year draws to a close, the trafficking of conflict and illicit
stones looks more like a dangerous rule than an exception. In a report
released today, Global Witness and Partnership Africa Canada (PAC)
warned that the illicit trade in rough diamonds remains one of the
greatest threats facing the Kimberley Process. The report also claims
that the cutting and polishing industry is completely outside KP
scrutiny and is currently a largely exploited loophole.
---USA: GDP, Personal Spending Drop in 3Q08
Real gross domestic product (GDP) in the United States fell at an
annual rate of 0.3 percent in third quarter. Second quarter GDP rose
2.8 percent, the government reported. The price index for gross
domestic purchases increased 4.8 percent in the third quarter,
compared with an increase of 4.2 percent in the second quarter. Real
personal consumption expenditures decreased 3.1 percent in the third
quarter, in contrast with an increase of 1.2 percent in the second
quarter.
---Credit Markets Signal Tighter Squeeze
The credit markets showed renewed signs of stress as investors,
worried about plunging stocks and the possibility of companies
defaulting on their debt, fled once again to the safety of Treasury
bills. Another dip in bank-to-bank lending rates offered little
relief. Fears are growing that the world could suffer a serious,
widespread recession, and large investors -- particularly hedge funds
-- are responding to the turmoil by “deleveraging” or trying to pay
off their debts. Deleveraging involves selling stocks and other assets
and, in turn, causing them to plunge in value.
---India: Gold Sales Jump in October
Gold sales have picked up phenomenally after a fall in prices to the
INR 12,000-level per 10 grams ($240.50.) The consistent steep decline
in equity markets has boosted the demand for the yellow metal as a
safe investment. According to the study, about 50 tons of the metal
was consumed during October 1-20, compared to more than 80 tons sold
in the whole of the October-December quarter in 2007.
---Rapaport Broadcast News
The Uniform Commercial Code or UCC financial statement form is a
useful tool for memos/consignments. In this segment, UCC experts
discuss how diamond dealers can use the form to protect themselves in
transactions. Partnership Africa Canada (PAC) stepped up its
monitoring of the diamond industry ahead of next week’s Kimberley
Process plenary and found issues of non-compliance remain troublesome.
PACs Ian Smillie discusses what he hopes the meeting accomplishes.
http://www.diamonds.net/News/NewsItem.aspx?ArticleID=23880
RETAIL & WHOLESALE NEWS:
---Shrenuj Profits -50% in 2Q
Diamond and jewelry manufacturer Shrenuj & Companys profits fell 50
percent in the companys second fiscal quarter as sales fell and
expenses rose. Consolidated net profits fell 49.8 percent to INR 57
million ($1.15 million) in the three months ending September 30, 2008.
Net sales declined 4 percent to INR 3.42 billion ($69.22 million) and
total expenses fell 3 percent to INR 3.20 billion ($64.66 million).
---Suashish Diamonds 2Q Sales +36%, Reports Net Loss
Suashish Diamonds moved into the red in the second quarter of its
fiscal 2008-09, largely because of higher expenses. The Mumbai-based
Diamond Trading Company sightholder posted a net loss of INR 292.71
million ($5.9 million) in the three months ending September 30, 2008,
down from a profit of INR 174.36 million ($3.53 million) one year ago.
Net sales rose 36 percent to INR 2.91 billion ($58.98 million.) Its
expenses grew 46 percent to INR 2.96 billion ($59.93 million.)
---Su-Raj Diamonds 2Q Profits -23%
Su-Raj Diamonds and Jewellery Limited reported that net profits fell
23 percent to INR 94.8 million ($1.9 million,) in the second fiscal
quarter ended September 30, 2008. The decline came despite a 25
percent rise in net sales to INR 5.37 billion ($108.55 million) during
the period. Operating expenses rose 27 percent to INR 5.24 billion
($105.96 million.)
---Classic Diamonds Profits -54% in Fiscal 2Q
India-based company Classic Diamonds net profits fell 54 percent from
a year before to INR 35.66 million ($712,020) in the three months
ending September 30, 2008. Sales for the second fiscal quarter rose 16
percent to INR 2.03 billion ($40.6 million,) boosted by strong
revenues at the jewelry division, up 105 percent to INR 621.61 million
($12.41 million,) while diamond division revenues fell 21 percent to
INR 1.41 billion ($281.84 million.)
---Chopard Sales +11% in First Nine Months
Sales of Swiss luxury watch and jewelry manufacturer Chopard in Italy
in the first nine months of 2008 climbed 10.5 percent on the year. The
companys sales in Italy in the third quarter alone increased 16.4
percent on the year.
---Bijou Brigitte 9mos Sales +3%, Profits -4%
Bijou Brigitte fashion jewelry reported a 3 percent increase in sales
for the first nine months of 2008 to EUR 269.6 million ($350 million.)
Profits fell 3.7 percent to EUR 54.5 million ($71 million.) The
retailer opened 58 new shops across Germany during the first three
quarters and closed 13 underperforming stores.
---Kiran Jewels Initiates Chpt. 7 Against Dunkins
Kiran Jewels Inc. initiated a Chapter 7 involuntary petition today
against retailer Dunkins Diamonds Inc. of Ohio and Florida. According
to papers filed in the United States Bankruptcy Court for the Southern
District of Ohio, Kiran stated the debtor had not paid for goods
delivered. At press time there was no further information on the case.
Dunkins corporate offices were already closed for the day and its
principal could not be reached at home. Earlier this month, The
Advocate (of Newark, Ohio,) reported that Dunkins planned to close
some stores, including one at the Indian Mound Mall.
---RBC Slashes Harry Winston Target Price
RBC Capital Markets slashed its outlook for Harry Winston Diamond
Corporation, as the global economic downturn is expected to hurt
prices of rough diamonds. The investment analysts cut the target price
on Harry Winston shares from $35 a share to $14 for the next 12
months. Despite its dramatic revaluation, RBC said it still sees
“compelling value” in the company for long-term investors. RBC’s chief
concerns about Harry Winston center on a dramatic decline in rough
diamond sales revenue from the Diavik mine -- Harry Winston’s sole
mining operation, in which it owns a 40 percent stake.
---A.M. Best Rates Jewelers Mutual A+ Superior
Jewelers Mutual Insurance Company, for the 22nd consecutive year,
earned an A+ Superior rating from A.M. Best Company. The A+ Superior
rating reflects the overall financial strength of Jewelers Mutual and
consistent profitability. The A.M. Best rating provides a solid
measure of assurance that a company has the capacity to pay claims.
A.M. Best is an independent rating agency widely trusted for its
benchmark ratings when assessing insurers’ financial strength.
---Dimexon Launches China Operation
Dimexon International Holdings launched operations in China. The
company opened offices in the Shanghai Diamond Exchange (SDE,) which
will be managed by Jiaqi Zhao. He will report directly to Dimexon’s
regional office in Hong Kong. Rajiv Mehta, Dimexons chief executive
officer said the new office will enhance the companys distribution
network in the region and allow it to work more closely with Chinese
retailers and jewelry manufacturers.
---Neil Lane Jewelry Opens in Los Angeles
Jewelry designer Neil Lane opened his flagship store in Los Angeles.
The Neil Lane Jewelry store is located at 708 N. La Cienega Boulevard,
near Melrose Place. Lane has become a legendary figure in Hollywood
for his designs and is an avid collector of fine jewelry. The store
presents a luxurious space featuring display cases made of white oak
and Portuguese limestone, accented with a series of plush offset
panels of ultra-suede. Architect David Montalba designed the space to
create an intimate environment without compromising the glamour and
polish of the Neil Lane brand.
---U.S. Sept. Jewelry Price Index +9%
The year-to-year consumer price index for jewelry in the United States
during the month of September rose 9.3 percent to 156.56 points,
according to statistics provided by the Bureau of Labor Statistics
(BLS). This rate -- based on a reference of average prices in 1986 set
at 100 points -- was almost two points higher than in August.
For the watch and jewelry categories combined, the year-to-year
difference was an increase of 8.2 percent in the United States, at
148.85 points. The September jewelry price index registered its
second-highest level of the year, only 0.03 points behind that
reported in July. During the January to September 2007 cycle, the
index averaged about 142 points, but this year it has risen to an
average of 154.
---U.S. & U.K. Dept. Store Sales Drop
Year-to-year department store sales in the United States contracted
5.3 percent to $16.517 billion in September. Spending at department
stores during September dropped 1.5 percent from the figure reported
in August. For the first nine months of 2008, department store sales
have slipped 3.4 percent to $137.931 billion.
In the U.K., September sales for non-specialized stores (considered
department stores) fell 2.4 percent, but specialized store sales rose
4.6 percent.
WHO IS NEWS:
---Jewelers Mutual Appoints New Sales VP
Jewelers Mutual appointed Patrick Drummond as its new vice president
of sales and marketing. Drummond will head the companys marketing
efforts and its nationwide sales team. He joined Jewelers Mutual two
years ago and comes to his new role with 15 years experience in the
insurance industry, the company said.
---Szul, Model Settle $5M Video Lawsuit
A model who writhed and moaned suggestively on a bed in a New York
jewelry companys sexy video ad settled her $5 million lawsuit against
the company. The model said she didnt consent to use of her image "to
simulate a female having an orgasm." The Internet video attracted more
than 700,000 hits before it was removed from YouTube in January. The
accord came to light Monday after a Manhattan judge filed a notice
saying the "action has settled." A joint statement by the models
lawyer, Kevin Mulhearn, and lawyers for Szul ("zool") Jewelry Inc.
said that the terms of the settlement were confidential.
GENERAL NEWS:
---Dubai: DMCC, Govt Entity Agree to Three-Year Export Alliance
The Dubai Export Development Corporation (EDC,) the governmental body
charged with promoting exports from the emirate, announced an alliance
with the Dubai Multi Commodities Centre (DMCC.) The parties expect the
three-year agreement to increase demand for exports of various DMCC
commodities. They will establish a joint management committee to
oversee EDCs provision of a number of specific services, including
export preparation, export facilitation and international trade
assistance to DMCC member companies.
---UK: Birmingham Assay Office Sponsors Centrepiece 2008
The Birmingham Assay Office will sponsor Centrepiece 2008. Running
from November 11 through December 23, the event brings together
contemporary jewelry designers, makers and silversmiths based in West
Midlands. This year the work will be exhibited and available for sale
from two locations: Symphony Hall and Birmingham Town Hall.
DIAMOND MINING NEWS:
---De Beers Production -4% in 3Q08
De Beers’ production fell 4.3 percent to 13.1 million carats, in the
quarter ended September 30, 2008. For the first nine months of the
year, De Beers’ production fell 4.1 percent to 37.3 million carats.
The drop in production came as a result of lower recoveries at De
Beers’ flagship Orapa mine in Botswana and at the Venetia mine in
South Africa. The company said that medium- and long-term growth would
be driven by the market fundamentals of its core commodities, with
constrained supply and growing demand led by the industrialization of
China and other developing countries.
---Namakwa Diamonds Expects Continued Price Volatility
Namakwa Diamonds expects diamond prices to remain volatile as the
current global economic uncertainty continues. The company, which
operates in the mining and polished diamond segments of the industry,
observed significant price decreases during August and September from
rough producers that sell exclusively on tender. The decreases were a
result of the general fall in commodities prices, uncertainty in
financial markets, lower liquidity and the threat of global recession,
the company explained.
Namakwa posted a net loss of $19.60 million in the second half of its
fiscal year ending August 31, 2008, as high operating costs took a
toll on operations. Reliable comparable figures were not provided
because this quarter closed the companys first fiscal year since the
company’s listing on the London Stock Exchange in December 2007.
Revenues of $29.30 million were reported on the back of higher
production and stronger pricing for rough and polished diamonds during
the six-month period.
---RBC Note: Diamond Prices Under Strain
In a price target revision note on Petra Diamonds, RBC Capital Markets
lowered its diamond prices forecast by 10 percent a year for the next
two years, to reflect the groups view that rough diamonds would face
demand and pricing pressures as a result of weaker sales and high debt
in cutting centers. RBC Capital Markets did not factor in any value
for exploration since it does not believe the market will accord these
assets any material value at present. This penalizes Petra as it has
an extensive exploration portfolio in Angola and Botswana, but Petra
remains one of RBC Capital Markets’ preferred names in the diamond
sector.
---Stornoway: Formal Review Confirms Successful Diamond Mining Outlook
for Renard
Stornoway Diamond Corporations economic study for the Renard Diamond
Project improved the projects outlook and the companys confidence in
its construction. The Renard project is located at the Foxtrot
Property in north-central Québec. The report found mineral resources
comprising 7 million carats of "indicated resource" (11.6 million tons
at an average grade of 60 carats per hundred tons (cpht)) and 4.5
million carats of "inferred resource" (7.2 million tons at an average
grade of 63 cpht).
---Rockwell Sale Receives Strong Premiums for Three Yellow Diamonds
Rockwell Diamonds Inc. sold three "exceptional" yellow diamonds to
buyers in southeast Asia. These stones were recovered from Rockwells
Makoenskloof project and Wouterspan mine, located in the Middle Orange
River area of South Africa, and were cut and polished by the Steinmetz
Diamond Group. The finished stones included one 102-carat vivid yellow
diamond cut from a 212-carat yellow rough diamond, and two matching
10-carat vivid yellow diamonds cut from a 36-carat yellow rough
diamond. The sale of the larger stone achieved a 50 percent premium
over and above the rough diamond value realized for the original
212-carat stone. The matching pair achieved an 80 percent premium over
and above the rough diamond value realized for the original 36-carat
stone. The sale of the three stones resulted in additional revenues of
approximately $2 million.
---TanzaniteOne to Issue B Shares in Attempt to Frustrate Gemfields
Takeover
Miner TanzaniteOne is trying to sabotage a hostile takeover bid from
rival Gemfields in an increasingly ugly battle for control between the
two gemstone groups. Tanzanite, which has attacked Gemfields GBP 33
million ($51.5 million) offer for discriminating against some
shareholders, is issuing B shares in a subsidiary company to
frustrate the unsolicited bid. Gemfields is trying to seize control of
Tanzanite by buying out other shareholders on a first come, first
served basis until its existing 18.5 percent stake climbs above 50
percent.
---West African Diamonds Reflects on Tumultuous Year
The current economic crisis is hitting junior resources hard, and this
has resulted in a tumultuous year for West African Diamonds (WAD.) It
was spun off from African Diamonds in order to focus on diamond
exploration projections in Sierra Leone and Guinea. The share price
has shed 70 percent since its first listing, to open trade this week
at 7.35 pence a share. The company reported a net loss of GBP 220,066
($338,626) for the year ending April 30, 2008, compared with a loss of
GBP 692,260 ($1.06 million) the previous fiscal year, which had
included a GBP 393,713 ($605,313) listing expense.
ECON WATCH:
For week ending October 30, 2008
Oct 30 Oct 23 Chng
$1 = Euro 0.773 0.774 0.000
$1 = Rupee 49.3 50.0 -0.7
$1 = Israel Shekel 3.76 3.83 -0.07
$1 = Rand 9.93 11.03 -1.10
$1 = Canadian Dollar 1.21 1.25 -0.04
Oct 30 Oct 23 Chng
Precious Metals
Gold $736.70 $721.90 $14.80
Platinum $836.00 $823.00 $13.00
Oct 30 Oct 23 Chng Chng%
Stock Indexes
BSE 9,044.51 9,771.70 -727.19 -7.44%
Dow Jones Avg. 9,180.69 8,691.25 489.44 5.63%
FTSE 4,291.65 4,087.83 203.82 4.99%
Hang Seng 14,329.85 13,760.49 569.36 4.14%
S & P 500 954.09 908.11 45.98 5.06%
Yahoo! Jewelry Index 742.54 681.46 61.08 8.96%
USA
Abazias $0.51 $0.51 $0.00 0.00%
Birks & Mayors $0.80 $0.90 -$0.10 -11.11%
Blue Nile $28.96 $27.97 $0.99 3.54%
Charles & Colvard $0.27 $0.32 -$0.05 -15.63%
Collectors Universe $3.65 $3.56 $0.09 2.53%
DGSE Companies, Inc. $1.90 $1.90 $0.00 0.00%
Fuqi International $7.38 $7.56 -$0.18 -2.38%
JCPenney $21.49 $19.50 $1.99 10.21%
Kohls $33.86 $28.26 $5.60 19.82%
Lazare Kaplan $6.13 $5.63 $0.50 8.88%
LJ International $0.43 $0.43 $0.00 -0.02%
Macys $11.66 $9.61 $2.05 21.33%
Man Sang $1.73 $1.61 $0.12 7.45%
Movado Group $14.29 $14.05 $0.24 1.71%
Nordstrom $15.99 $16.88 -$0.89 -5.27%
Saks $5.81 $5.68 $0.13 2.29%
Signet $10.92 $12.23 -$1.31 -10.71%
Sothebys $9.02 $8.65 $0.37 4.28%
Tiffany $26.01 $23.80 $2.21 9.29%
Wal-Mart $54.75 $52.76 $1.99 3.77%
Zale $17.41 $14.91 $2.50 16.77%
EUROPE
Bulgari €6.00 €5.55 €0.45 8.11%
Citizen Holdings €4.17 €4.55 -€0.38 -8.35%
Esa €3.95 €4.86 -€0.91 -18.72%
Golay-Buchel CHF 1,765.00 CHF 2,100.00 -CHF 335.00 -15.95%
LVMH €51.18 €50.46 €0.72 1.43%
Pinault P-R SA €47.45 €40.93 €6.53 15.94%
Richemont SA CHF 23.96 CHF 24.60 -CHF 0.64 -2.60%
Sakha Diamonds €0.26 €0.27 -€0.01 -3.02%
Swatch Group CHF 182.30 CHF 177.10 CHF 5.20 2.94%
Theo Fennell (pence) 26.00 28.00 -€2.00 -7.14%
HONG KONG
Hang HKD 0.65 HKD 0.65 HKD 0.00 0.00%
King Fook HKD 0.35 HKD 0.39 -HKD 0.04 -9.09%
Noble Jewelry HKD 0.49 HKD 0.54 -HKD 0.06 -10.19%
Tse Sui Luen HKD 0.83 HKD 0.83 HKD 0.00 0.00%
INDIA (rupee)
Classic Diamond 22.85 24.45 -1.60 -6.54%
Gitanjali Gems 78.10 105.20 -27.10 -25.76%
Rajesh Exports 20.15 25.65 -5.50 -21.44%
Ren. Jewellery 22.10 24.90 -2.80 -11.24%
Su-Raj Diamonds 28.45 30.05 -1.60 -5.32%
Titan 1,004.35 979.65 24.70 2.52%
Zodiac JRD 12.90 12.65 0.25 1.98%
Shantivijay Jewels 159.00 159.00 0.00 0.00%
Shukra Jewellery 4.04 4.04 0.00 0.00%
Suashish Diamonds 247.10 393.65 -146.55 -37.23%
NEW ZEALAND
Michael Hill NZD 0.70 NZD 0.66 NZD 0.04 6.06%
SINGAPORE
Gems TV Holdings SGD 0.070 SGD 0.080 -SGD 0.010 -12.50%
Sarin Technologies SGD 0.165 SGD 0.180 -SGD 0.015 -8.33%
MINING STOCKS
(pence unless noted)
Oct 30 Oct 23 Chng Chng%
USA
Anglo American $12.14 $9.83 $2.31 23.50%
CANADA
Archangel CAD 0.29 CAD 0.24 CAD 0.05 20.83%
Harry Winston CAD 10.45 CAD 9.66 CAD 0.79 8.18%
Mountain Province CAD 1.60 CAD 1.42 CAD 0.18 12.68%
Peregrine Diamonds CAD 0.38 CAD 0.25 CAD 0.13 53.06%
Rockwell Diamonds CAD 0.22 CAD 0.18 CAD 0.04 19.44%
Shore Gold CAD 0.60 CAD 0.61 -CAD 0.01 -1.64%
Stornoway Diamond CAD 0.14 CAD 0.12 CAD 0.02 12.50%
True North Gems CAD 0.10 CAD 0.10 CAD 0.00 0.00%
UK (pence)
African Diamonds 46.8 47.9 -1.1 -2.30%
BHP Billiton 997.0 823.0 174.0 21.14%
Firestone Diamonds 27.8 19.5 8.3 42.36%
Gem Diamonds 319.3 308.0 11.3 3.65%
Mano River 3.7 4.3 -0.6 -13.53%
Mwana Africa 5.5 2.5 3.0 120.00%
Namakwa Diamonds 49.3 54.0 -4.8 -8.80%
Petra Diamonds 87.3 75.0 12.3 16.33%
Rio Tinto plc 2,753.0 2,240.0 513.0 22.90%
INDIA MARKET REPORT:
---Polished: Markets are quiet due to Diwali vacation. Polished market
is worried about the status of the market after this holiday.
-1 point: Fair demand: +$250 whites; $150-$350 TTLC.
-2 point: Fair demand: +$350 whites; $125-$150 TTLB;
$125-$400 TTLC & $90-$110 Dark Browns.
2-7 point: Fair demand: +$350 whites; $100-$150 TTLB;
$125-$400 TTLC & $100-$120 Dark Browns.
8-18 point: Fair demand: +$650 whites;
$150-$200 TTLB & $200-$450 TTLC.
20 points: Fair demand: +$700 whites.
25 points: Fair demand: +$850 whites.
33 points: Fair Demand: $1400-$1600 whites.
50 points: Fair demand: $700-$800; $1000-$1,500 & +2000 whites.
75 points: Fair demand: $700-$900 & +$3000 whites.
1 carat+: Fair demand: +$1,000 whites.
Princess: -3 point: Fair demand: $200-$250 & $325-&375 whites.
+3 point: Fair demand: $$250-$300 & $350-$400 whites.
+9-18 point: Fair demand:
+14 pts $600-$650 whites $225-$275 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: Fair demand: $1,200-$1,400 whites.
1 carat+: Fair demand: +$1,500 whites.
Marquise: -6 point: Fair demand: $250-$350 & $400-$500 whites.
+7-18 point: Fair demand: $500-$650 & +14-point
$850-$900 whites.
20 point: Fair demand: $1,000-$1,100 whites.
25 point: Fair demand: $1,200-$1,400 whites.
33 point: Fair demand: $1,400-$1,600 whites.
50 point: Fair demand: $1,800-$2,000 whites.
75 point: Fair demand: $1,100-$1,400 & $2,600-$3,000 whites.
1 carat+: Fair demand: +$1,200 whites.
Tapers & Baguettes:
Fair demand: $600-$800 +5mm whites. $250-$325
2mm-2.5mm whites; $350-$400, 2.5mm-3mm whites;
$400-$450 3mm-4mm, $500-$600 4mm –
5mm & $175-$250 +2mm-3mm whites.
Rapaport TradeWire - Friday, October 31, 2008
Rapaport Weekly Comments: Limited trading as diamond markets try to
absorb financial crisis shock and India celebrates Diwali. U.S. Retail
sales holding up better than expected but few if any are ordering new
merchandise. Cutters and dealers highly concerned about diamond price
levels and market liquidity as banks are expected to tighten credit
access. U.S. Sept. department store sales -5% to $16.5 bil., 3Q GDP
-0.3%, jewelry price index +9%. Demand for large stones remains soft.
Fine cut carat to 2ct, SI, doing well as large retailers honor
previous commitments for holiday season. India’s Diwali holiday season
attracts jewelry demand as gold becomes more affordable but demand is
weaker than last year. De Beers 3Q08 production down -4.1% to 13.3
mil. carats. U.N. extends embargo on Ivory Coast diamonds for one year
as war in Congo intensifies. NGOs warn of increased diamond smuggling
from Venezuela and Zimbabwe ahead of Kimberley Process meeting.
ANNOUNCEMENTS:
==================================-
RAPAPORT DIAMOND CONFERENCE 2008
NOW AVAILABLE ON VIDEO DVD !
==================================-
Did you predict the financial crisis?
On September 8, the Rapaport Conference did.
See and hear what the experts had to say.
Speakers and Diamond Specific Topics included:
Rajiv Mehta: Dimexon/Eurostar - Globalization
Victor Van der Kwast: ABN Amro - Banking
Rahul Kadakia: Christies - Big Stone Boom
Gerald Celente: World Economy
Martin Rapaport: Diamond Markets of the Future
Ralph Destino: Chairman GIA - Branding
Neil Goldberg: CEO Zale - Retailing
Mark Moeller: President AGS - Are Bread & Butter Goods Toast?
James Shigley: GIA Research - Treatments and Synthetics
Order now - $100 plus shipping
Email: IDC@Diamonds.Net
Telephone: +1-702-893-9400
=================================.
RAPAPORT TO SPEAK IN MUMBAI INDIA
=================================.
Martin Rapaport will discuss Diamond Prices
Thursday, November 6 at 6 PM
Taj Palace Hotel – Mumbai
Contact:
india@diamonds.net
+9122-6637-6633
========================================-
For additional information about rapaport events
http://www.diamonds.net/Events/default.aspx
========================================-
RETAIL QUOTE:
"In this tough economy, jewelry has fallen down the list of priorities
for many. Its a struggle [to survive.] But Im determined to make it
work by adding engraving services and offering designer products and
quality custom pieces."
---Brenda Cohen
Berwick Jewelers, Savannah, Georgia
WORLD NEWS:
---Rapaport: Prices Under Pressure, Expected to Decline
Rapaport chairman Martin Rapaport spoke at the Ramat Gan diamond
bourse about the current state of the diamond business and explained
that diamond prices are under pressure and expected to decline. His
comments were met with appeals from diamond manufacturers and dealers
to freeze the Rapaport Price List or stop publishing it until after
Christmas. Rapaport replied that he could not do this, and would
publish his opinion of diamond prices on a weekly basis as he has for
the past 30 years. Rapaport stressed his ethical obligation to publish
prices even if they were lower.
---Gubelin Gem Lab Receives HPHT Treated Diamond with Fake GIA Report
The Gubelin Gem Lab stated that it had recently received a diamond for
testing that displayed indications of HPHT treatment, but whose
accompanying GIA certificate didnt mention treatment. Gubelin Gem Lab
suspected the certificate was a forgery "based on the appearance and
content of genuine GIA reports." The diamond -- D Color, IF clarity,
Excellent Cut grade -- exceeded 2 carats.
---UN Extends Diamond Sanctions on Cote dIvoire
Cote dIvoire will face sanctions on its diamond trade until at least
October 31, 2009. The United Nations Security Council unanimously
approved a resolution drafted by France that extends the ban on
selling arms to Cote dIvoire and against buying rough diamonds for
another year. The Council made presidential elections part of the
deal. It will review sanctions "no later than three months after the
holding of open, free, fair and transparent presidential elections."
---PAC and Global Witness Call for Swift Action to Address KP Flaws
As the Kimberley Process (KP) rough diamond certification scheme’s
fifth year draws to a close, the trafficking of conflict and illicit
stones looks more like a dangerous rule than an exception. In a report
released today, Global Witness and Partnership Africa Canada (PAC)
warned that the illicit trade in rough diamonds remains one of the
greatest threats facing the Kimberley Process. The report also claims
that the cutting and polishing industry is completely outside KP
scrutiny and is currently a largely exploited loophole.
---USA: GDP, Personal Spending Drop in 3Q08
Real gross domestic product (GDP) in the United States fell at an
annual rate of 0.3 percent in third quarter. Second quarter GDP rose
2.8 percent, the government reported. The price index for gross
domestic purchases increased 4.8 percent in the third quarter,
compared with an increase of 4.2 percent in the second quarter. Real
personal consumption expenditures decreased 3.1 percent in the third
quarter, in contrast with an increase of 1.2 percent in the second
quarter.
---Credit Markets Signal Tighter Squeeze
The credit markets showed renewed signs of stress as investors,
worried about plunging stocks and the possibility of companies
defaulting on their debt, fled once again to the safety of Treasury
bills. Another dip in bank-to-bank lending rates offered little
relief. Fears are growing that the world could suffer a serious,
widespread recession, and large investors -- particularly hedge funds
-- are responding to the turmoil by “deleveraging” or trying to pay
off their debts. Deleveraging involves selling stocks and other assets
and, in turn, causing them to plunge in value.
---India: Gold Sales Jump in October
Gold sales have picked up phenomenally after a fall in prices to the
INR 12,000-level per 10 grams ($240.50.) The consistent steep decline
in equity markets has boosted the demand for the yellow metal as a
safe investment. According to the study, about 50 tons of the metal
was consumed during October 1-20, compared to more than 80 tons sold
in the whole of the October-December quarter in 2007.
---Rapaport Broadcast News
The Uniform Commercial Code or UCC financial statement form is a
useful tool for memos/consignments. In this segment, UCC experts
discuss how diamond dealers can use the form to protect themselves in
transactions. Partnership Africa Canada (PAC) stepped up its
monitoring of the diamond industry ahead of next week’s Kimberley
Process plenary and found issues of non-compliance remain troublesome.
PACs Ian Smillie discusses what he hopes the meeting accomplishes.
http://www.diamonds.net/News/NewsItem.aspx?ArticleID=23880
RETAIL & WHOLESALE NEWS:
---Shrenuj Profits -50% in 2Q
Diamond and jewelry manufacturer Shrenuj & Companys profits fell 50
percent in the companys second fiscal quarter as sales fell and
expenses rose. Consolidated net profits fell 49.8 percent to INR 57
million ($1.15 million) in the three months ending September 30, 2008.
Net sales declined 4 percent to INR 3.42 billion ($69.22 million) and
total expenses fell 3 percent to INR 3.20 billion ($64.66 million).
---Suashish Diamonds 2Q Sales +36%, Reports Net Loss
Suashish Diamonds moved into the red in the second quarter of its
fiscal 2008-09, largely because of higher expenses. The Mumbai-based
Diamond Trading Company sightholder posted a net loss of INR 292.71
million ($5.9 million) in the three months ending September 30, 2008,
down from a profit of INR 174.36 million ($3.53 million) one year ago.
Net sales rose 36 percent to INR 2.91 billion ($58.98 million.) Its
expenses grew 46 percent to INR 2.96 billion ($59.93 million.)
---Su-Raj Diamonds 2Q Profits -23%
Su-Raj Diamonds and Jewellery Limited reported that net profits fell
23 percent to INR 94.8 million ($1.9 million,) in the second fiscal
quarter ended September 30, 2008. The decline came despite a 25
percent rise in net sales to INR 5.37 billion ($108.55 million) during
the period. Operating expenses rose 27 percent to INR 5.24 billion
($105.96 million.)
---Classic Diamonds Profits -54% in Fiscal 2Q
India-based company Classic Diamonds net profits fell 54 percent from
a year before to INR 35.66 million ($712,020) in the three months
ending September 30, 2008. Sales for the second fiscal quarter rose 16
percent to INR 2.03 billion ($40.6 million,) boosted by strong
revenues at the jewelry division, up 105 percent to INR 621.61 million
($12.41 million,) while diamond division revenues fell 21 percent to
INR 1.41 billion ($281.84 million.)
---Chopard Sales +11% in First Nine Months
Sales of Swiss luxury watch and jewelry manufacturer Chopard in Italy
in the first nine months of 2008 climbed 10.5 percent on the year. The
companys sales in Italy in the third quarter alone increased 16.4
percent on the year.
---Bijou Brigitte 9mos Sales +3%, Profits -4%
Bijou Brigitte fashion jewelry reported a 3 percent increase in sales
for the first nine months of 2008 to EUR 269.6 million ($350 million.)
Profits fell 3.7 percent to EUR 54.5 million ($71 million.) The
retailer opened 58 new shops across Germany during the first three
quarters and closed 13 underperforming stores.
---Kiran Jewels Initiates Chpt. 7 Against Dunkins
Kiran Jewels Inc. initiated a Chapter 7 involuntary petition today
against retailer Dunkins Diamonds Inc. of Ohio and Florida. According
to papers filed in the United States Bankruptcy Court for the Southern
District of Ohio, Kiran stated the debtor had not paid for goods
delivered. At press time there was no further information on the case.
Dunkins corporate offices were already closed for the day and its
principal could not be reached at home. Earlier this month, The
Advocate (of Newark, Ohio,) reported that Dunkins planned to close
some stores, including one at the Indian Mound Mall.
---RBC Slashes Harry Winston Target Price
RBC Capital Markets slashed its outlook for Harry Winston Diamond
Corporation, as the global economic downturn is expected to hurt
prices of rough diamonds. The investment analysts cut the target price
on Harry Winston shares from $35 a share to $14 for the next 12
months. Despite its dramatic revaluation, RBC said it still sees
“compelling value” in the company for long-term investors. RBC’s chief
concerns about Harry Winston center on a dramatic decline in rough
diamond sales revenue from the Diavik mine -- Harry Winston’s sole
mining operation, in which it owns a 40 percent stake.
---A.M. Best Rates Jewelers Mutual A+ Superior
Jewelers Mutual Insurance Company, for the 22nd consecutive year,
earned an A+ Superior rating from A.M. Best Company. The A+ Superior
rating reflects the overall financial strength of Jewelers Mutual and
consistent profitability. The A.M. Best rating provides a solid
measure of assurance that a company has the capacity to pay claims.
A.M. Best is an independent rating agency widely trusted for its
benchmark ratings when assessing insurers’ financial strength.
---Dimexon Launches China Operation
Dimexon International Holdings launched operations in China. The
company opened offices in the Shanghai Diamond Exchange (SDE,) which
will be managed by Jiaqi Zhao. He will report directly to Dimexon’s
regional office in Hong Kong. Rajiv Mehta, Dimexons chief executive
officer said the new office will enhance the companys distribution
network in the region and allow it to work more closely with Chinese
retailers and jewelry manufacturers.
---Neil Lane Jewelry Opens in Los Angeles
Jewelry designer Neil Lane opened his flagship store in Los Angeles.
The Neil Lane Jewelry store is located at 708 N. La Cienega Boulevard,
near Melrose Place. Lane has become a legendary figure in Hollywood
for his designs and is an avid collector of fine jewelry. The store
presents a luxurious space featuring display cases made of white oak
and Portuguese limestone, accented with a series of plush offset
panels of ultra-suede. Architect David Montalba designed the space to
create an intimate environment without compromising the glamour and
polish of the Neil Lane brand.
---U.S. Sept. Jewelry Price Index +9%
The year-to-year consumer price index for jewelry in the United States
during the month of September rose 9.3 percent to 156.56 points,
according to statistics provided by the Bureau of Labor Statistics
(BLS). This rate -- based on a reference of average prices in 1986 set
at 100 points -- was almost two points higher than in August.
For the watch and jewelry categories combined, the year-to-year
difference was an increase of 8.2 percent in the United States, at
148.85 points. The September jewelry price index registered its
second-highest level of the year, only 0.03 points behind that
reported in July. During the January to September 2007 cycle, the
index averaged about 142 points, but this year it has risen to an
average of 154.
---U.S. & U.K. Dept. Store Sales Drop
Year-to-year department store sales in the United States contracted
5.3 percent to $16.517 billion in September. Spending at department
stores during September dropped 1.5 percent from the figure reported
in August. For the first nine months of 2008, department store sales
have slipped 3.4 percent to $137.931 billion.
In the U.K., September sales for non-specialized stores (considered
department stores) fell 2.4 percent, but specialized store sales rose
4.6 percent.
WHO IS NEWS:
---Jewelers Mutual Appoints New Sales VP
Jewelers Mutual appointed Patrick Drummond as its new vice president
of sales and marketing. Drummond will head the companys marketing
efforts and its nationwide sales team. He joined Jewelers Mutual two
years ago and comes to his new role with 15 years experience in the
insurance industry, the company said.
---Szul, Model Settle $5M Video Lawsuit
A model who writhed and moaned suggestively on a bed in a New York
jewelry companys sexy video ad settled her $5 million lawsuit against
the company. The model said she didnt consent to use of her image "to
simulate a female having an orgasm." The Internet video attracted more
than 700,000 hits before it was removed from YouTube in January. The
accord came to light Monday after a Manhattan judge filed a notice
saying the "action has settled." A joint statement by the models
lawyer, Kevin Mulhearn, and lawyers for Szul ("zool") Jewelry Inc.
said that the terms of the settlement were confidential.
GENERAL NEWS:
---Dubai: DMCC, Govt Entity Agree to Three-Year Export Alliance
The Dubai Export Development Corporation (EDC,) the governmental body
charged with promoting exports from the emirate, announced an alliance
with the Dubai Multi Commodities Centre (DMCC.) The parties expect the
three-year agreement to increase demand for exports of various DMCC
commodities. They will establish a joint management committee to
oversee EDCs provision of a number of specific services, including
export preparation, export facilitation and international trade
assistance to DMCC member companies.
---UK: Birmingham Assay Office Sponsors Centrepiece 2008
The Birmingham Assay Office will sponsor Centrepiece 2008. Running
from November 11 through December 23, the event brings together
contemporary jewelry designers, makers and silversmiths based in West
Midlands. This year the work will be exhibited and available for sale
from two locations: Symphony Hall and Birmingham Town Hall.
DIAMOND MINING NEWS:
---De Beers Production -4% in 3Q08
De Beers’ production fell 4.3 percent to 13.1 million carats, in the
quarter ended September 30, 2008. For the first nine months of the
year, De Beers’ production fell 4.1 percent to 37.3 million carats.
The drop in production came as a result of lower recoveries at De
Beers’ flagship Orapa mine in Botswana and at the Venetia mine in
South Africa. The company said that medium- and long-term growth would
be driven by the market fundamentals of its core commodities, with
constrained supply and growing demand led by the industrialization of
China and other developing countries.
---Namakwa Diamonds Expects Continued Price Volatility
Namakwa Diamonds expects diamond prices to remain volatile as the
current global economic uncertainty continues. The company, which
operates in the mining and polished diamond segments of the industry,
observed significant price decreases during August and September from
rough producers that sell exclusively on tender. The decreases were a
result of the general fall in commodities prices, uncertainty in
financial markets, lower liquidity and the threat of global recession,
the company explained.
Namakwa posted a net loss of $19.60 million in the second half of its
fiscal year ending August 31, 2008, as high operating costs took a
toll on operations. Reliable comparable figures were not provided
because this quarter closed the companys first fiscal year since the
company’s listing on the London Stock Exchange in December 2007.
Revenues of $29.30 million were reported on the back of higher
production and stronger pricing for rough and polished diamonds during
the six-month period.
---RBC Note: Diamond Prices Under Strain
In a price target revision note on Petra Diamonds, RBC Capital Markets
lowered its diamond prices forecast by 10 percent a year for the next
two years, to reflect the groups view that rough diamonds would face
demand and pricing pressures as a result of weaker sales and high debt
in cutting centers. RBC Capital Markets did not factor in any value
for exploration since it does not believe the market will accord these
assets any material value at present. This penalizes Petra as it has
an extensive exploration portfolio in Angola and Botswana, but Petra
remains one of RBC Capital Markets’ preferred names in the diamond
sector.
---Stornoway: Formal Review Confirms Successful Diamond Mining Outlook
for Renard
Stornoway Diamond Corporations economic study for the Renard Diamond
Project improved the projects outlook and the companys confidence in
its construction. The Renard project is located at the Foxtrot
Property in north-central Québec. The report found mineral resources
comprising 7 million carats of "indicated resource" (11.6 million tons
at an average grade of 60 carats per hundred tons (cpht)) and 4.5
million carats of "inferred resource" (7.2 million tons at an average
grade of 63 cpht).
---Rockwell Sale Receives Strong Premiums for Three Yellow Diamonds
Rockwell Diamonds Inc. sold three "exceptional" yellow diamonds to
buyers in southeast Asia. These stones were recovered from Rockwells
Makoenskloof project and Wouterspan mine, located in the Middle Orange
River area of South Africa, and were cut and polished by the Steinmetz
Diamond Group. The finished stones included one 102-carat vivid yellow
diamond cut from a 212-carat yellow rough diamond, and two matching
10-carat vivid yellow diamonds cut from a 36-carat yellow rough
diamond. The sale of the larger stone achieved a 50 percent premium
over and above the rough diamond value realized for the original
212-carat stone. The matching pair achieved an 80 percent premium over
and above the rough diamond value realized for the original 36-carat
stone. The sale of the three stones resulted in additional revenues of
approximately $2 million.
---TanzaniteOne to Issue B Shares in Attempt to Frustrate Gemfields
Takeover
Miner TanzaniteOne is trying to sabotage a hostile takeover bid from
rival Gemfields in an increasingly ugly battle for control between the
two gemstone groups. Tanzanite, which has attacked Gemfields GBP 33
million ($51.5 million) offer for discriminating against some
shareholders, is issuing B shares in a subsidiary company to
frustrate the unsolicited bid. Gemfields is trying to seize control of
Tanzanite by buying out other shareholders on a first come, first
served basis until its existing 18.5 percent stake climbs above 50
percent.
---West African Diamonds Reflects on Tumultuous Year
The current economic crisis is hitting junior resources hard, and this
has resulted in a tumultuous year for West African Diamonds (WAD.) It
was spun off from African Diamonds in order to focus on diamond
exploration projections in Sierra Leone and Guinea. The share price
has shed 70 percent since its first listing, to open trade this week
at 7.35 pence a share. The company reported a net loss of GBP 220,066
($338,626) for the year ending April 30, 2008, compared with a loss of
GBP 692,260 ($1.06 million) the previous fiscal year, which had
included a GBP 393,713 ($605,313) listing expense.
ECON WATCH:
For week ending October 30, 2008
Oct 30 Oct 23 Chng
$1 = Euro 0.773 0.774 0.000
$1 = Rupee 49.3 50.0 -0.7
$1 = Israel Shekel 3.76 3.83 -0.07
$1 = Rand 9.93 11.03 -1.10
$1 = Canadian Dollar 1.21 1.25 -0.04
Oct 30 Oct 23 Chng
Precious Metals
Gold $736.70 $721.90 $14.80
Platinum $836.00 $823.00 $13.00
Oct 30 Oct 23 Chng Chng%
Stock Indexes
BSE 9,044.51 9,771.70 -727.19 -7.44%
Dow Jones Avg. 9,180.69 8,691.25 489.44 5.63%
FTSE 4,291.65 4,087.83 203.82 4.99%
Hang Seng 14,329.85 13,760.49 569.36 4.14%
S & P 500 954.09 908.11 45.98 5.06%
Yahoo! Jewelry Index 742.54 681.46 61.08 8.96%
USA
Abazias $0.51 $0.51 $0.00 0.00%
Birks & Mayors $0.80 $0.90 -$0.10 -11.11%
Blue Nile $28.96 $27.97 $0.99 3.54%
Charles & Colvard $0.27 $0.32 -$0.05 -15.63%
Collectors Universe $3.65 $3.56 $0.09 2.53%
DGSE Companies, Inc. $1.90 $1.90 $0.00 0.00%
Fuqi International $7.38 $7.56 -$0.18 -2.38%
JCPenney $21.49 $19.50 $1.99 10.21%
Kohls $33.86 $28.26 $5.60 19.82%
Lazare Kaplan $6.13 $5.63 $0.50 8.88%
LJ International $0.43 $0.43 $0.00 -0.02%
Macys $11.66 $9.61 $2.05 21.33%
Man Sang $1.73 $1.61 $0.12 7.45%
Movado Group $14.29 $14.05 $0.24 1.71%
Nordstrom $15.99 $16.88 -$0.89 -5.27%
Saks $5.81 $5.68 $0.13 2.29%
Signet $10.92 $12.23 -$1.31 -10.71%
Sothebys $9.02 $8.65 $0.37 4.28%
Tiffany $26.01 $23.80 $2.21 9.29%
Wal-Mart $54.75 $52.76 $1.99 3.77%
Zale $17.41 $14.91 $2.50 16.77%
EUROPE
Bulgari €6.00 €5.55 €0.45 8.11%
Citizen Holdings €4.17 €4.55 -€0.38 -8.35%
Esa €3.95 €4.86 -€0.91 -18.72%
Golay-Buchel CHF 1,765.00 CHF 2,100.00 -CHF 335.00 -15.95%
LVMH €51.18 €50.46 €0.72 1.43%
Pinault P-R SA €47.45 €40.93 €6.53 15.94%
Richemont SA CHF 23.96 CHF 24.60 -CHF 0.64 -2.60%
Sakha Diamonds €0.26 €0.27 -€0.01 -3.02%
Swatch Group CHF 182.30 CHF 177.10 CHF 5.20 2.94%
Theo Fennell (pence) 26.00 28.00 -€2.00 -7.14%
HONG KONG
Hang HKD 0.65 HKD 0.65 HKD 0.00 0.00%
King Fook HKD 0.35 HKD 0.39 -HKD 0.04 -9.09%
Noble Jewelry HKD 0.49 HKD 0.54 -HKD 0.06 -10.19%
Tse Sui Luen HKD 0.83 HKD 0.83 HKD 0.00 0.00%
INDIA (rupee)
Classic Diamond 22.85 24.45 -1.60 -6.54%
Gitanjali Gems 78.10 105.20 -27.10 -25.76%
Rajesh Exports 20.15 25.65 -5.50 -21.44%
Ren. Jewellery 22.10 24.90 -2.80 -11.24%
Su-Raj Diamonds 28.45 30.05 -1.60 -5.32%
Titan 1,004.35 979.65 24.70 2.52%
Zodiac JRD 12.90 12.65 0.25 1.98%
Shantivijay Jewels 159.00 159.00 0.00 0.00%
Shukra Jewellery 4.04 4.04 0.00 0.00%
Suashish Diamonds 247.10 393.65 -146.55 -37.23%
NEW ZEALAND
Michael Hill NZD 0.70 NZD 0.66 NZD 0.04 6.06%
SINGAPORE
Gems TV Holdings SGD 0.070 SGD 0.080 -SGD 0.010 -12.50%
Sarin Technologies SGD 0.165 SGD 0.180 -SGD 0.015 -8.33%
MINING STOCKS
(pence unless noted)
Oct 30 Oct 23 Chng Chng%
USA
Anglo American $12.14 $9.83 $2.31 23.50%
CANADA
Archangel CAD 0.29 CAD 0.24 CAD 0.05 20.83%
Harry Winston CAD 10.45 CAD 9.66 CAD 0.79 8.18%
Mountain Province CAD 1.60 CAD 1.42 CAD 0.18 12.68%
Peregrine Diamonds CAD 0.38 CAD 0.25 CAD 0.13 53.06%
Rockwell Diamonds CAD 0.22 CAD 0.18 CAD 0.04 19.44%
Shore Gold CAD 0.60 CAD 0.61 -CAD 0.01 -1.64%
Stornoway Diamond CAD 0.14 CAD 0.12 CAD 0.02 12.50%
True North Gems CAD 0.10 CAD 0.10 CAD 0.00 0.00%
UK (pence)
African Diamonds 46.8 47.9 -1.1 -2.30%
BHP Billiton 997.0 823.0 174.0 21.14%
Firestone Diamonds 27.8 19.5 8.3 42.36%
Gem Diamonds 319.3 308.0 11.3 3.65%
Mano River 3.7 4.3 -0.6 -13.53%
Mwana Africa 5.5 2.5 3.0 120.00%
Namakwa Diamonds 49.3 54.0 -4.8 -8.80%
Petra Diamonds 87.3 75.0 12.3 16.33%
Rio Tinto plc 2,753.0 2,240.0 513.0 22.90%
Múdry sa teší objaveniu pravdy, hlupák falošnosti.
Rapaport TradeWire - Friday, November 7, 2008
Rapaport Weekly Comments: Obama landslide victory signifies major U.S.
social and generational shift. Nov. DTC sight estimate halved to $300
mil. as rough prices plummet and sightholders delay purchases to next
year. Despite Diwali holiday, Oct. Indian gold imports drop 30% to
1.55 mil. oz. as rupee weakens 5% against U.S. dollar. Israel Oct.
rough imports down 53% to $208.5 mil. and polished exports down 46% to
$324.61 mil. Belgium Sept. rough diamond imports up 34% to $1.12 bil.
and polished exports up 41% to $1.39 bil. Dubai 1H08 polished imports
double to $2.94 bil. and polished exports up 153% to $2.35 bil. Japan
Sept. polished imports down 14% to $59.91 mil. Gitanjali Gems 2Q sales
up 14% to $268.81 mil. and profits up 15% to $10.19 mil. Blue Nile 3Q
sales down 3% to $65 mil. and profits down 21% to $2.3 mil.; U.S.
sales down 7% to $58.5 mil. and int’l sales up 53% to $6.9 mil. Petra
Diamonds sells blue 39.19 carat diamond for $8.8 mil. ($224,547/
carat).
ANNOUNCEMENTS:
===================
NEW PRICE LIST INFO
Rapaport Will Publish A New RapNet Price List With
Trading Network’s Best and Average Asking Prices
Read the full announcement:
http://www.diamonds.net/rapnetpricelist/RapnetNewPriceList-Nov08.pdf
================================
RAPAPORT DIAMOND CONFERENCE 2008
NOW AVAILABLE ON VIDEO DVD !
Did you predict the financial crisis?
On September 8, the Rapaport Conference did.
See and hear what the experts had to say.
Speakers and Diamond Specific Topics included:
Rajiv Mehta: Dimexon/Eurostar - Globalization
Victor Van der Kwast: ABN Amro - Banking
Rahul Kadakia: Christies - Big Stone Boom
Gerald Celente: World Economy
Martin Rapaport: Diamond Markets of the Future
Ralph Destino: Chairman GIA - Branding
Neil Goldberg: CEO Zale - Retailing
Mark Moeller: President AGS - Are Bread & Butter Goods Toast?
James Shigley: GIA Research - Treatments and Synthetics
Order now - $100 plus shipping
Email: IDC@Diamonds.Net
Telephone: +1-702-893-9400
RAPAPORT EVENTS
Please check our events page to view
Rapaport exhibiting locations.
http://www.diamonds.net/Events/default.aspx
RETAIL QUOTE:
"People that shop luxury, who demand a certain brand, they just dont
trade down. They simply do without until they feel comfortable to
purchase again."
---Marie Driscoll
Standard & Poors
WORLD NEWS:
---DTC Nov. Sight Significantly Lower at $300M
The Diamond Trading Companys (DTC) November sight was valued
significantly lower than in previous years, as sightholders requested
that De Beers defer supply until after Christmas. The sight had an
estimated value of $300 million, compared with $530 million in the one
held one year ago. Observers reported no change in prices and no
significant adjustment to the assortment of goods.
---RBC: Gloomy Outlook for Diamond Cos., Investors
RBC Capital Markets detailed issues facing the diamond trade: Diamond
trading center debt is in excess of $15 billion; prices at recent
rough tenders held by BHP Billiton and Etruscan Diamonds fell well
below average; and major producers are responding to lower demand for
rough by cutting back offered supplies. The mood in the industry is
gloomy, made more severe by police raids in Antwerp. Until consumer
confidence and wealth begin to recover, RBC noted, the market for the
raw materials of luxury goods like diamonds will show slower demand
and lowered prices. Shares in diamond firms have declined 70 percent
on average from their highs, with exploration firms in need of funding
fairing worst; retailers have been impacted least.
---Indias Diamond Inventory Grows as Global Demand Weakens
India’s diamond industry is staring at large inventories due to
falling demand in its biggest markets in the U.S., Europe and Japan.
Imports of rough diamonds grew 19 percent between April and September
of this year to INR 251.1 billion ($5.17 billion) compared with a year
ago. Although exports of polished have risen by 21.6 percent to INR
335.2 billion ($6.9 billion), the outlook is poor. The demand for
processed diamonds has dropped 10-15 percent since September, when
Christmas orders usually start picking up. The Gem & Jewellery Export
Promotion Council called upon diamond miners to restrict the release
of uncut diamonds in the market to offset the current excess supply.
---Counterfeit GIA Reports Pose Risk - Verify Authenticity
Counterfeit Gemological Institute of America (GIA) grading reports
have been found in the marketplace. In some cases, fraudulent reports
use the actual GIA report numbers and grading information of other
GIA-graded diamonds. These forgeries have been found accompanying HPHT
diamonds or natural diamonds of a lower grade that resemble -- or have
been re-cut to match -- the real diamond to which that report number
belongs. Dealers can verify reports online with GIA Report Check
www.gia.edu/reportcheck/
---Israel to Hold Vice Chairmanship of Kimberley Process
Israel was elected vice chair of the Kimberley Process for 2009 and
will therefore take the helm of the organization in 2010. Elections
were held on the opening day of the annual plenary. Namibia takes
control of the organization from India on January 1, 2009.
India put forward a proposal to set up a permanent panel to address
disputes arising due to human and administrative errors while issuing
Kimberley Process Certificates to countries mining and exporting rough
diamonds.
---De Beers Confident of Value in Diamonds During Christmas
De Beers believes diamonds have a unique place in the current
environment even though global financial distress is cutting into
consumer wealth and confidence. De Beers Christmas marketing plans
include print, online and television spots meant to show how the
diamond is an icon of enduring value. The campaign is expected to
reach 97 million consumers in the U.S. at least six times during the
season.
---Botswanas Diamond Exports Threatened By Financial Crisis
If the current global economic recession and financial market turmoil
persist for another eight months, Botswanas real economy will be
heavily affected, forcing the government to adjust consumption and
expenditure patterns. Analysts believe that Botswanas economy, which
is heavily reliant on diamond export revenues, will be hard hit by the
slowdown of the global economy, as diamond sales will decline sharply.
---Rapaport Broadcast News
The mood in Israel is rather gloomy as trading activity remains well
below historical norms. The Natural Color Diamond Association (NCDIA)
predicts demand to hold its own due to the exposure natural color
stones are receiving at auction and at red carpet events.
http://www.diamonds.net/news/NewsItem.aspx?ArticleID=23978
DIAMOND STATS
---Israel Oct. Imports/ Exports (YTD=2008 Year to Date)
2008 %Chng YTD %Chng
($Mil) 2007 ($Mil) 2007
Polished Exports $325 -46% $5,812 -2%
Polished Imports $278 -44% $3,787 8%
Net Polished $46 -55% $2,025 -16%
Rough Imports $209 -53% $4,165 2%
Rough Exports $144 -59% $3,173 11%
Net Rough $64 -30% $991 -20%
Diamond Account -$18 N/A $1,034 -13%
---Belgium Sept. Imports/ Exports (YTD=2008 Year to Date)
2008 %Chng YTD %Chng
($Mil) 2007 ($Mil) 2007
Polished Exports $1,394 41% $9,793 25%
Polished Imports $1,311 76% $9,600 33%
Net Polished $83 -66% $193 -69%
Rough Imports $1,129 34% $9,060 19%
Rough Exports $1,102 35% $9,288 10%
Net Rough $17 6% -$228 73%
Diamond Account $66 -71% $422 -72%
---Japan’s Sept. Polished Diamond Imports -14%
Japan’s polished diamond imports fell 14 percent to $59.91 million in
September. The country’s imports of gold jewelry rose 4 percent to
$61.91 million, platinum jewelry imports soared 59 percent to $49.14
million for the month, silver jewelry imports fell 24 percent to
$18.23 million, and other precious metals rose 160 percent to
$808,000.
RETAIL & WHOLESALE NEWS:
---Oct. Retail Sales Plunge
October sales at Neiman Marcus fell 25.3 percent to $286 million, and
same-store sales fell 26.8 percent to $281 million. Saks’ monthly
same-store sales dropped 16.6 percent. Its net sales fell 18.6 percent
to $219 million. Nordstrom’s same-store sales fell 15.7 percent in
October, and its total sales dropped 15.5 percent to $529 million.
Macys same-store sales fell 6.3 percent and total sales fell 7
percent to $1.72 billion. J. C. Penneys same-store sales decreased 13
percent, and total sales fell 11.8 percent to $1.361 billion. Kohls
October same-store sales fell 9 percent, and total sales fell 4.8
percent to $1.21 billion. Same-store sales fell 1 percent at Costco,
where net sales rose less than 2 percent to $5.3 billion.
---U.S. 3Q Online Jewelry Sales -11%
The jewelry and watch segment was among the weakest performers in the
United States online retail market during the third quarter of 2008,
e-commerce research company comScore reported. U.S. online sales of
jewelry and watches fell 11 percent during the three months ending
September 30, 2008, compared with the same period in 2007.
---Hong Kong Sept. Jewelry, Watch Sales -4%
Hong Kongs retail sales during September rose almost 7 percent,
compared with one year ago, to $2.7 billion, and the government
revised its August retail sales increase 0.2 percentage points lower,
to 10.2 percent. The government reported that sales of jewelry,
watches and clocks fell 3.5 percent following a 2.4 percent increase
for this category in August.
---Signet 3Q Sales -7%
Signet Jewelers reported that group sales fell 7.3 percent to $629.4
million in its third fiscal quarter. Same-store sales dropped 6.6
percent during the period. The quarter saw U.S. sales fall 4.3 percent
to $467.2 million, while same-store sales declined 7.9 percent. U.K.
sales dropped 14.9 percent to $162.2 million, spurred by sharper
declines in October. Same-store sales there fell 2.4 percent.
---Blue Nile 3Q U.S. Sales -7%, Company Profits -21%
Blue Nile Inc.s profits fell 21 percent to $2.335 million during the
third quarter. Sales slipped 3 percent to $65.4 million. Within the
U.S., third-quarter sales dropped 7 percent to $58.5 million, but
international sales rose 53 percent to $6.9 million. Gross profit for
the third quarter was $13.3 million, so, as a percent of net sales,
gross profit increased to 20.3 percent, compared with only 19.8
percent one year ago. Blue Nile declined to provide financial guidance
for the fourth quarter and the fiscal year, citing the economic
climate, combined with "a lack of visibility into expectations for the
upcoming holiday season."
---Gitanjali 2Q Profits +15%
Gitanjali Gems reported that its net profits grew 15 percent to INR
489.52 million ($10.19 million) in its fiscal second quarter spurred
by strong growth at the company’s jewelry unit. Net sales for the
period rose 14 percent to INR 12.91 billion ($268.81 million). Jewelry
revenues grew 37 percent to INR 7.22 billion ($150.85 million) and
diamond revenues increased 15 percent to INR 7.23 billion ($151
million).
--Consumers Cut Christmas Shopping Budget
The first expected annual ISCS-Goldman Sachs Holiday Survey showed
that this holiday season 37 percent of consumers intended to scale
back their holiday spending -- 10 percent more than said so in 2007,
and the highest percentage since ICSC started asking the question. The
survey found that the average spending this holiday season would
amount to $1,154 per household, $533 of that on gifts. According to a
separate survey conducted by the NRF, U.S. consumers plan to spend
$832.36 on holiday-related shopping, an increase of only 1.9 percent
over last year. NRF expects holiday sales to rise 2.2 percent to
$470.4 billion.
---De Beers Opens in South Coast Plaza
De Beers Diamond Jewellers opened its ninth store in North America in
Costa Mesa, California. The store is located at the South Coast Plaza
in Costa Mesa and covers an area of 1,600 sq ft. De Beers South Coast
Plaza store features new collections designed by Raphaele Canot, De
Beers creative director, including Talisman, Amulets, Ice on Fire and
Radiance.
---Christie’s Stresses Strong Demand for Colored Diamonds
Christie’s expressed its confidence in the colored diamond market
ahead of its London jewels sale in December. Demand for colored
diamonds remains high, Christies said, citing its recent record sale
in Geneva of a 13.39-carat fancy intense blue diamond for $8.9
million. The auction house is hoping to emulate that feat when it
presents the Wittelsbach Diamond, a rare 35.56-carat grayish-blue
diamond, VS2 clarity, at "Jewels: The London Sale," with an estimated
value of about $15 million.
---De Beers Launches Forevermark Website
Forevermark, the marketing brand of De Beers, launched its new
consumer website, www.forevermark.com, which allows users and
diamantaires the opportunity to create a profile for their Forevermark
stones with details of the diamonds. It features information about the
Forevermark concept and its new grading service. De Beers is also
using the website to offer a preview of its first Forevermark
advertising campaign, which will be launched later this month in
Chinese.
---Blue Nile Enhances Search for Engagement Ring Settings
Online retailer Blue Nile introduced an enhanced search process for
engagement ring settings that allows customers to choose from the
company’s four collections: classic, sidestones, vintage and color.
Customers can also search by metal type and price. The new search
feature categorizes Blue Niles 150 engagement ring settings to help
customers select a style.
---Jewelry Television Spices Up Ornaments with Gemstones
Jewelry Television partnered with Joy To The World Collectibles on a
proprietary collection of gemstone-encrusted Christmas ornaments. The
ornament designs use garnet, peridot, citrine, white topaz, amethyst
and other fine gemstones. They are handmade from European glass and
custom-cut glitter. Using a traditional and labor-intensive process,
each ornament takes about seven days to complete. The collection will
be available on the Jewelry Television shopping network in November,
as well as at http://www.jewelrytelevision.com/glitter.
---New York: Sales of High-end Jewelry Drop
Jewelers are worried about the upcoming holiday season. Demand for
jewelry has waned, while a wobbly labor market and tighter credit have
consumers unable to finance expensive purchases. Analysts say that
even the affluent are becoming more frugal, feeling the pinch of a
weak economy but not inclined to buy cheaper brands. The economic
slowdown in Europe and a stronger U.S. dollar suggest that help will
not be coming from overseas. Jewelers are also hoping sales of
engagement rings hold steady, but while a weak economy isnt likely to
stop couples from getting engaged, it may dampen how much a suitor can
spend.
WHO IS NEWS:
---Accredited Gemologists Assoc. to Honor Smith in Feb.
Christopher Smith, vice president and chief gemologist at American
Gemological Laboratories (AGL) in New York City, will receive the 2009
Antonio C. Bonanno Award For Excellence in Gemology from the
Accredited Gemologists Association on February 4, 2009. Smith
spearheads the growth and development of AGL’s colored-stone services.
The award, which includes a prize of $2000, is a tribute to Smiths
commitment to high ethical standards, and to his career as a whole,
which is devoted to laboratory work, applied gemological research,
advocacy of proper disclosure and education.
GENERAL NEWS:
---Police Recover $4M Ruby
Police in Austria recovered a $4.1 million ruby (Prince of Burma)
after a raid on a suspected gang of international jewel thieves. Two
men and a woman were arrested in the raid and the three are suspected
of stealing the ruby along with diamonds and other gems recovered in
the raid from a German jewelry dealer in Milan, Italy in August.
---Police Bust Group That Fooled Diamond Buyers with Fake Stones
A suspected international diamond smuggling syndicate alleged to have
conned millions of rands out of diamond buyers operating across the
country -- and involving corrupt police officers -- has been busted in
South Africa. The undercover operation, which began two years ago,
ended yesterday when police arrested the remainder of 34 suspects.
Police seized more than ZAR 6 million ($588,000) worth of fake
diamonds the syndicate used to con diamond buyers out of their money.
---Dubai to Showcase 478ct Diamond from Letseng Nov. 8
Gem Diamonds and the Dubai Multi Commodities Centre will showcase a
478-carat white diamond, recovered at Letseng in September, at the
Middle East China Diamond and Jewellery Summit on November 8 at the
Atlantis Hotel, Palm Jumeirah. The diamond ranks as the 20th-largest
rough diamond ever to be recovered, and the third-largest rough
diamond this century.
---Industry Celebrate $200M Panama Diamond Exchange Project
Leaders of the world diamond and jewelry industry joined the heads of
the Panama Diamond Exchange (PDE) in Panama City to launch a $200
million building project, which will serve as both the headquarters of
the PDE and as the center of the diamond, gemstone and jewelry trade
in Latin America. The projected turnover of diamonds, precious stones
and jewelry traded within its confines is estimated at more than $7
billion per annum. The PDE Tower complex, designed by renowned
architect Ignacio Mallol, will include a diamond exchange and an
office tower, and will eventually include a shopping mall with
high-end retail jewelry stores. Construction is expected to begin
mid-year 2009.
---IDL Expands into Italy, Saudi Arabia
International Diamond Laboratories (IDL) plans to expand its
operations into Italy and Saudi Arabia by the end of the year. The
lab, a subsidiary of the Dubai Multi Commodities Centre, expects to
open an office in Valenza, Italy, in mid-December. IDL claimed it
would become the first international lab to open a diamond and jewelry
grading lab in Saudi Arabia when it launches its branch office in the
"Jeddah International Centre" in December.
---GCAL, Ideal Diamond Solutions Partner for Turnkey Website
GCAL and Ideal Diamond Solutions will provide a customizable website
module that jewelry retailers can use to market and sell GCAL
certified diamonds and jewelry. The website acts as a
business-to-consumer portal bearing the retailers name and brand
identity to offer GCAL certified diamonds and jewelry, but items are
priced with a retail margin. The solution is commission based and
handles fulfillment, credit card processing, online marketing, and
customer service provided by Ideal Diamond Solutions.
GCAL is also participating in a pilot program called "Made in
Botswana" to identify and certify polished diamonds using its
proprietary Source Veritas assurance service. The pilot program is
being offered through Days Jewelers, a chain in Maine and New
Hampshire.
---GIA’s First Law Enforcement Class Graduates
The GIAs first class made up entirely of law enforcement officials
recently graduated, after an intensive two-week course of training on
gemological identification and fraud prevention. The 13 graduates
endured a curriculum, developed in cooperation with the Violent Crime
Section of the FBI’s Criminal Investigative Division that was designed
to train law enforcement to better investigate and resolve crimes
affecting the gem and jewelry trade. GIA intends to continue offering
the gemology course to law enforcement.
---AWDC to Host ‘Confidence in Challenging Times’
The international diamond community will gather in Antwerp for a
symposium on November 17. In light of the financial crisis currently
impacting the world economy, and given the changing market conditions,
the Antwerp World Diamond Centre (AWDC) is holding an international
symposium for the world diamond community on November 17, 2008.
Entitled ‘Confidence in Challenging times,’ it will focus on the
impact of the worldwide financial crisis on the diamond industry.
DIAMOND MINING NEWS:
---ALROSA Profits -62% in First Three Quarters
ALROSAs net profit fell 62 percent in the first nine months of 2008
to RUB 3.542 billion ($130.8 million), and net profit in the third
quarter alone fell 97 percent to about $4.2 million.
---De Beers Officially Launches Voorspoed Mine
De Beers officially opened its Voorspoed Mine, marking the first new
diamond mining launch in South Africa in nearly 20 years. Voorspoed is
the third De Beers mine to open in 2008, following the launch of the
Snap Lake and Victor mines in Canada. Voorspoed is expected to produce
approximately 800,000 carats of diamonds a year at full production,
and recover more than 10 million carats during its anticipated
12-to-16 year life. Initial pre-launch production saw the recovery of
60,000 carats with a value of $120 a carat.
---Rio Tinto Reports Strong Market for Pink Diamond Tender
Rio Tinto’s 24th annual Argyle Pink Diamond Tender showed a strong
market for the rare precious stones despite the difficult economic
conditions, the company reported. Because prices are expected to
escalate as Argyle production comes to a close, Rio put reserve prices
on the collection for the first time this year. Rio also introduced a
new distribution strategy for its Argyle production, selecting 15
“Authorized Partners” to receive polished pink diamonds directly from
the mine, and a number of “Select Ateliers” who will use the Argyle
brand but not buy directly from the mine.
---Petra Sells 39ct Rough Blue Diamond for $9M
Petra Diamonds Ltd. sold a 39.19 carat special blue diamond from the
Cullinan mine, which was on tender in Johannesburg, South Africa, for
$8.8 million. Alisa Moussaieff, the co-owner of Moussaieff Jewelers in
the United Kingdom, purchased the diamond.
---Pala Withdraws Bid for Rockwell Diamonds
Pala Investments Holdings Limited withdrew its all-cash offer for
Rockwell Diamonds. Pala determined that a number of the conditions to
the bid were incapable of being satisfied prior to the expiry time.
---Investors Opt Out of Tahera Buyout
Tahera Diamond Corporation stated that a planned sponsorship agreement
was cancelled after it failed to meet conditions laid out in the deal.
A group of unnamed Vancouver resource developers agreed in September
to buy Tahera subject to a number of conditions, including the
necessary due diligence by the "plan sponsor" before October 31, and
the necessary creditor and court approvals. These conditions were not
met by the deadline and the agreement was terminated.
---Stornoway Diamond Increases Private Placement
Stornoway Diamond Corporation increased the size of its private
placement from CAD 3 million to CAD 5 million ($2.5 million-$4.2
million). The private placement will also now have a brokered and a
non-brokered component. The private placement will broker up to
13,333,300 “flow-through” common shares.
---Pangea DiamondFields Secures $2M Loan
Pangea DiamondFields entered into a $2 million short-term loan to be
provided by Pangea Exploration (Proprietary) Ltd. Although Pangeas
interim results on September 25 listed about $1.82 million in cash and
approximately $750,000 in unsold diamonds, by October 24, the junior
miner had only $230,000 cash resources with unsold stock of $800,000.
Pangea’s directors anticipate that the loan facility will provide
sufficient working capital to maintain its current activities for up
to three months.
ECON WATCH:
For week ending November 6, 2008
Nov 6 Oct 30 Chng
$1 = Euro 0.787 0.773 0.014
$1 = Rupee 48.1 49.3 -1.2
$1 = Israel Shekel 3.84 3.76 0.08
$1 = Rand 10.29 9.93 0.36
$1 = Canadian Dollar 1.19 1.21 -0.01
Precious Metals
Gold $731.50 $736.70 -$5.20
Platinum $836.00 $836.00 $0.00
Nov 6 Oct 30 Chng Chng%
Stock Indexes
BSE 9,734.22 9,044.51 689.71 7.63%
Dow Jones Avg. 8,695.79 9,180.69 -484.90 -5.28%
FTSE 4,272.41 4,291.65 -19.24 -0.45%
Hang Seng 13,790.04 14,329.85 -539.81 -3.77%
S & P 500 904.88 954.09 -49.21 -5.16%
Yahoo! Jewelry Index 654.32 742.54 -88.22 -11.88%
Múdry sa teší objaveniu pravdy, hlupák falošnosti.
Rapaport TradeWire - Friday, November 14, 2008
Rapaport Weekly Market Comments: Diamond markets under continued
pressure as global economic crisis reduces luxury demand and volatile
stock, commodity and currency markets rattle consumer confidence.
Trading volume falls as buyers face increasing liquidity difficulties
and sellers sharply reduce long term credit sales amid fears that they
will not get paid. S&P predicts U.S. Christmas retail sales will be
flat to -2%, with recession bottoming in 2Q09. U.S. Sept. polished
imports up 25% to $1.7 bil. and polished exports down 22% to $1.3 bil.
Belgium Oct. polished exports down 4% to $905 mil. and rough imports
drop 32% to $670 mil. India Oct. polished exports down 20% to $1.24
bil. and rough imports drop 37% to $470 mil. U.S. Oct. retail sales
plummet: Neiman Marcus down 13% to $986 mil; Nordstrom down 8% to $1.8
bil. Saks 3Q sales down 12.3% to $693 mil. Signet 3Q sales down 7% to
$629 mil. Macys 3Q sales down 7% to $5.5 bil. Charles & Colvard 3Q
sales down 37% to $4 mil. with loss of $3 mil. Finlay sales up 13% to
$160.2 mil. but same-store down 14%. Sotheby’s 3Q revenues down 11% to
$76 mil. and loss doubles to $46 mil.
ANNOUNCEMENTS:
=========================
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Monday November 17, 2008 at 6:00 PM
Radisson SAS Park Lane Hotel
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RSVP Required:
tel. 32-3-232-3300, e-mail Belgium@Diamonds.Net
Mr. Rapaport will begin his talk at 6:15 sharp.
Buffet dinner and discussion to follow presentation.
================================
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Gerald Celente: World Economy
Martin Rapaport: Diamond Markets of the Future
Ralph Destino: Chairman GIA - Branding
Neil Goldberg: CEO Zale - Retailing
Mark Moeller: President AGS - Are Bread & Butter Goods Toast?
James Shigley: GIA Research - Treatments and Synthetics
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RETAIL QUOTE:
“Especially in these uncertain times, it matters more what we do
inside our stores than what happens outside. Create action and a
positive atmosphere, and people will want to come into your store to
see what you are doing so differently than the majority. Customers
often ask us why it’s so crowded. I like to tell them that we are not
participating in this recession.”
---James F. Sunderland Jr.
CEO of James & Sons, Orland Park, Illinois
WORLD NEWS:
---UK Posts Biggest Retail Sales Drop in Three Years
Retailers in the U.K. posted their worst month in three years in
October. Data published by the British Retail Consortium and KPMG
showed that October U.K. retail sales values fell 2.2 percent, on a
same-store basis, from October 2007, noting that total sales were
lower than a year ago for the first time since April 2005. Helen
Dickinson, head of retail at KPMG, said the reduction in consumer
spending was “hardly surprising given the uncertainty created by the
turmoil in the financial markets.”
---Dubai Diamond Exchange to Launch Polished Tenders in Jan. 09
The Dubai Diamond Exchange plans to start hosting polished diamond
tenders in January 2009. Goods offered will include solitaires, large
and fancy colored diamonds, layouts for jewelry and consistent parcels
of small goods. The stones will be physically available for inspection
and will be offered on cash terms. The polished tenders come in
addition to Dubai Diamond Exchange’s monthly rough tenders it
introduced earlier this year.
---Luxury Jeweler Graff Invests in Gem Diamonds
Laurence Graff, owner of U.K.-based luxury jeweler Graff Diamonds, has
purchased a 4.5 percent stake, or 2,824,744 shares, in Gem Diamonds as
an investment. Graff does not plan to make a formal offer to buy the
company, he stated. Graff Diamonds owns a diamond-cutting facility in
Johannesburg, South Africa, and sources some diamonds from Gem
Diamonds. Gem closed Thursday at 348 pence a share in London.
---Gem Diamonds Unveils 478ct Laseli la Letseng in Dubai
Gem Diamonds unveiled the newly named "Laseli la Letseng" diamond on
Saturday in Dubai, giving the public a first viewing of the
twentieth-largest rough diamond ever found. The diamond was recovered
at Lesotho’s Letseng mine in September and was subsequently named by
the government, which owns a 30 percent stake in the mine in
partnership with Gem Diamonds. The name translates as “the Light of
Letseng,” a name meant to reflect the high color and clarity of the
stone.
---Angolas Troops Join Fighting in D.R. Congo
Angolan troops have joined Congolese soldiers battling rebels near the
city of Goma, Democratic Republic of the Congo (DRC), raising new
fears the conflict will spread in the region as African leaders
struggled to find a way to stop it. New clashes between army and
rebels also erupted just outside Goma near Kibati, where about 45,000
refugees from the rebellion in the mineral-rich eastern DRC have taken
refuge. Thousands fled toward the relative safety of Goma.
---South Africa: Diamond Smuggling Continues
Police estimate 2.5 percent to 5 percent of diamond values recovered
every year are stolen by smugglers. But some believe the figure along
the western coast is higher. A number bandied about five years ago
suggested 30 percent of all diamonds mined by Alexkor were stolen. But
a top security official at one of the companies, who asked not to be
named, says it is difficult to estimate the extent of diamond
smuggling, as many of the stolen diamonds are never accounted for.
---Rapaport Broadcast News
Analysts at Standard & Poors rating agency discuss liquidity, credit
ratings for retailers and expected consumer retail spending patterns
for the fourth quarter. Hint: Flat to negative 2 percent. Diamond
Promotion Service launches its Christmas campaign this month for the
U.S. marketplace and promoters talk up key takeaways from the effort.
DIAMOND STATS
---Belgium Oct. Imports/ Exports (YTD=2008 Year to Date)
2008 %Chng YTD %Chng
($Mil) 2007 ($Mil) 2007
Polished Exports $905 -4% $10,697 22%
Polished Imports $968 -18% $10,568 26%
Net Polished ($63) -72% $130 -67%
Rough Imports $670 -32% $9,729 13%
Rough Exports $619 -36% $9,909 5%
Net Rough $506 265% ($1,793) 79%
Diamond Account ($113) 53% $309 -75%
---India Oct. Imports/ Exports (YTD=2008 Year to Date)
2008 %Chng YTD %Chng
($Mil) 2007 ($Mil) 2007
Polished Exports $1,241 -20% $13,285 18%
Polished Imports $509 -11% $6,194 89%
Net Polished $732 -26% $7,091 -11%
Rough Imports $470 -37% $8,938 11%
Rough Exports $91 97% $727 49%
Net Rough $378 -46% $8,211 8%
Diamond Account $353 24% ($1,119) N/A
---USA Sep.Imports/ Exports (YTD=2008 Year to Date)
2008 %Chng YTD %Chng
($Mil) 2007 ($Mil) 2007
Polished Imports $1,744 25% $15,453 17%
Polished Exports $1,251 22% $11,466 41%
Net Polished $493 34% $3,987 -21%
Rough Imports $47 15% $646 12%
Rough Exports $31 55% $335 -1%
Net Rough $16 -24% $311 32%
Diamond Account $477 37% $3,676 -23%
RETAIL & WHOLESALE NEWS:
---Macys 3Q Sales -7%, Net Loss at $44M
Macys Inc. sales fell 7 percent in the third quarter to $5.49 billion
while same-store sales fell 6 percent. The retailer reported a net
loss of $44 million compared with profits of $33 million one year ago.
For the first three quarters of fiscal 2008, sales have fallen 4.3
percent to $16.96 billion, and same-store sales have dropped 3.5
percent. Macys reported a loss of $30 million for the first nine
months of its fiscal year, compared with profits of $143 million one
year ago. Macys expects same-store sales in the fourth quarter to "be
down in the range of 1 to 6 percent, which would result in same-store
sales for the fall season (third and fourth quarters combined) down in
the range of 3 to 6 percent."
---Finlay 3Q sales +13%, Comparable Store Sales -15%
Finlay Enterprises reported sales rose 12.9 percent to $160.2 million
during its third quarter, as new operations helped stimulate growth.
The specialty jewelry stores that the company acquired in November
2007 -- Carlyle, Congress, and Bailey Banks & Biddle -- contributed
sales of $58 million during the quarter, compared with $23.6 million
one year ago. Comparable-store sales, however, fell 14.9 percent.
Excluding the Macys and Lord & Taylor counters that Finlay plans to
close by the years end, comparable-store sales declined 13.5 percent.
---Flawless Diamond Profits +5% in Fiscal 2Q
Flawless Diamond reported net profits rose 5 percent to INR 57.61
million ($1.2 million) in the second fiscal quarter ending September
30, 2008. Net sales grew 15 percent to INR 1.56 billion ($33 million)
for the period, and expenses increased 14 percent to INR 1.48 billion
($31.28 billion.)
---LJ International 3Q Rev. -13%, Profit -20%
LJ Internationals third quarter sales fell 13 percent to $32.96
million and net income fell 19.6 percent to $374,000. LJ International
blamed the drop in revenue on the weakening wholesale sector. The
company also temporarily suspended its "Signature" retail line in the
quarter due to weaker consumer demand at the counter. Revenues from
the firms ENZO chain of jewelry stores in China rose 48 percent to
$9.3 million. Wholesale revenues fell 25 percent to $23.6 million.
---Man Sang 2Q Sales Hold Flat, Net Income +35%
Pearl wholesaler Man Sang Holdings Inc. reported second quarter
revenue was flat at $14.13 million. Pearl operations accounted for
$13.93 million and real estate revenue came in at $207,000. Net income
rose 35 percent to $641,000. For the first six months of fiscal 2009,
revenue fell 5 percent to $25.59 million and net income fell 27
percent to $1.18 million.
---Swank 3Q Sales -8%, Profits -94%
Swank Inc., distributor and designer of mens jewelry and leather
goods, reported that its third-quarter sales fell 8 percent to $28.7
million. Net income fell 94 percent to $53,000 for the quarter ending
September 30, 2008. Expenses associated with in-store promotional
activity rose 19 percent as the company moved aggressively to maintain
or expand its market share, Swank reported.
---Bidz.com Profits Fall in 3Q Despite Strong Sales Growth
Online jewelry retailer Bidz.com saw profits fall in the third quarter
of 2008, despite strong sales performance during the period. The
company reported net income fell 9 percent to $3.3 million during the
three months ending September 30, 2008, resulting mainly from higher
expenses and operating costs. Earnings per share of 13 cents, however,
beat its previously stated guidance of 11 cents. Merchandise sales
grew 38 percent to $55.27 million as the company continued to
penetrate foreign markets.
---Charles & Colvard Posts $3M Loss in 3Q, Net Sales -37%
Charles & Colvards third net loss registered $3.12 million for the
three months ending September 30, 2008, compared with a profit of
$246,208 one year ago. Net sales fell 37 percent to $4.16 million;
domestic sales in the U.S. declined 45 percent while international
sales rose 1 percent. The company said it shipped 22,900 carats during
the period, a 44 percent decline from the third quarter of 2007.
Prices per carat rose an average 5 percent.
---Collectors Universe 1Q Rev. -11%
Collectors Universe Inc., parent company of GCAL and AGL, reported
that revenues during its first fiscal quarter fell 10.5 percent to
$9.69 million. For the quarter, which ended September 30, 2008,
Collectors reported a net loss of $1.3 million, up from a loss of
$110,000 in 2007. Revenues mainly fell because of a 17 percent
decrease in coin revenues. Revenues from jewelry, diamond and gemstone
grading rose 14 percent. The companys gross profit margin was 46.5
percent, down from 52 percent one year ago.
---Sarin Technologies Profits -49% in 3Q
Sarin Technologies saw its profits nearly drop by half in the third
quarter ending September 30, 2008, as customers cut capital
expenditure. The company reported profits fell 49 percent to $1.04
million in the three-month period, and revenues declined 6.9 percent
to $8.78 million.
---Kristall Slashes Rough Diamond Procurement from ALROSA
Kristall of Smolensk slashed rough diamond procurement from ALROSA
after failing to secure discounts. ALROSA said Kristall had rejected a
consignment of rough diamonds priced in accordance with a standard
contract for diamond buyers. ALROSA granted Kristall the option to
reject 20 percent of the diamonds offered, but Kristall asked for a 20
percent discount instead. Kristall has procured more than 65 percent
of its rough diamonds from ALROSA this year.
---Wachovia Agrees to Take Jewelers Debt, Merchandise
Wachovia Bank and David Nygaard Fine Jewelers struck a tentative
agreement in which the bank will absorb the jewelry companys
additional debt that was secured by the stores merchandise. By taking
over a debt of more than $150,000, the bank would gain the right to
that merchandise as collateral. Nygaard owes Wachovia more than $1.7
million on loans and another $150,000 to BB&T, which had the first
lien on the business, giving it the right to collect the collateral
first. BB&T took possession of a safe full of jewelry in August.
Wachovia sued Nygaard to prevent a sale of the company.
---Fortunoff to Open New Fifth Avenue Boutique
Jewelry and home-furnishings retailer Fortunoff is planning to open a
New York boutique at Lord & Taylor’s flagship store in February.
Fortunoff parent company NRDC Equity Partners is planning to close
Fortunoff’s Manhattan flagship, on West 57th Street near Bergdorf
Goodman, after Christmas in order to make the move. NRDC, which also
owns Lord & Taylor, bought Fortunoff in March for about $110 million,
rescuing it from bankruptcy. The boutique will be located on the
ground floor of the Lord & Taylor store at Fifth Avenue and 39th
Street. It will have its own separate entrance on Fifth, and will
occupy the north end of Lord & Taylor, replacing the jewelry sales
floor.
---comScore: Retailers Should Offer Free Shipping
comScore Networks found that jewelry was cited by 9 percent as the
planned Christmas gift of choice, which was three percentage points
lower than electronics. The No. 1 gift choice for 2008 was gift cards,
followed by necessity items, then books, apparel and accessories. In
all, comScore expected ecommerce growth to increase between 6 percent
and 10 percent from levels set in 2007. The growth rate from November
1 through December 31, 2007, was 19 percent, at $29.17 billion.
comScore told retailers to offer free shipping, because if you dont,
shoppers will find the offer elsewhere online.
---Blue Nile Sweetens Bill Me Later Financing Option
Blue Nile Inc. expanded credit options through its "Bill Me Later"
payment program. Now consumers can choose no-interest financing for
six months on orders of more than $500. On orders between $250 and
$500, customers can select Bill Me Later and pay no interest for 90
days. In addition to Bill Me Later, Blue Nile also offers third-party
financing through Bank of America, and payment options that include
PayPal, all major credit cards and bank wire transfers.
---Sears to Offer Layaway Program for Christmas
Following customer feedback in a tight economy, Sears decided to offer
layaway beginning November 16. Items must be paid in full by December
- Jewelry, Craftsman tools, fitness equipment and apparel qualify
for the layaway program. Sears stated the layaway program does not
affect the existing Fine Jewelry payment program.
WHO IS NEWS:
---Burman to Remain Signet Chief Exec. Through Jan. 11
Terry Burman agreed to remain group chief executive officer of Signet
Jewelers Ltd. until January 29, 2011, at which time he will retire.
---Antwerp World Diamond Centre Hosts King Albert II in Mumbai
The Antwerp World Diamond Centre hosted what they termed "an intimate
diamond luncheon" in the presence of King Albert II of Belgium at the
Oberoi Hotel in Mumbai. The event, part of the king’s state visit to
India, highlighted the close and historical ties between the diamond
industries in Belgium and India.
---ABN Amro Diamond & Jewellery Unit Appoints New Head of Americas
ABN Amro Diamond & Jewellery Division appointed a new regional head
for the Americas following the departure of Anna Martin from the bank.
Martin will be succeeded by Rob Broedelet, who has been with ABN Amro
since 1980.
---Simmons Diamond Empowerment Fund Benefit Raises $320K
The Diamond Empowerment Fund held its first major fundraiser, titled
Dallas Rocks 2008, on November 7th at Dallas Cityplace. The Fund,
founded by Russell Simmons in December 2007, raised more than $320,000
in Dallas. Net proceeds from the event will go to a Diamond
Empowerment Fund beneficiary, the Community and Individual Development
Association (CIDA) in Johannesburg, South Africa.
GENERAL NEWS:
---GIA and Jewelers of America Form Strategic Partnership
The Gemological Institute of America and Jewelers of America have
agreed to make education resources, as well as certification programs
and career development resources, available to each other’s respective
members in 2009. The two also started a network in which they and
jewelers and police will quickly share information related to criminal
activity.
---Philippines Weighs Possible $204M Auction of Marcos Jewels
The Philippines Bureau of Customs and the Department of Finance have
to come up with a decision on the possible auction of the jewelry
collections owned by former first lady Imelda Marcos. The two
government agencies must decide what to do with the jewelry, priced at
a conservative estimate of $204 million to $306 million. Customs
retains custody of the Roumeloites collection, one of three
collections, which is in a vault at the Central Bank for safekeeping.
---Kimberley Process Concludes 6th Annual Plenary
The Sixth Annual meeting of the Kimberley Process welcomed the
initiative by India to undertake a security audit of the KP website in
order to secure it from vulnerabilities. The efforts of India to
strengthen the KP in 2008 as KP chair were appreciated by the Plenary.
Israel was selected as the KP vice chair for 2009. Israel will succeed
Namibia as the Chair of KP from January 1, 2010. Namibia will take
over as chair of the Kimberley Process from January 1, 2009.
DIAMOND MINING NEWS:
---Trans Hex 1H Loss Spirals to $6M, Sales -16%
Junior diamond miner Trans Hex posted a significantly wider loss in
the first half of its fiscal year 2009, as sales were impacted by the
global financial crisis. The South Africa-based diamond mining company
posted a net loss of ZAR 64.35 million ($6.16 million according to the
November 12 exchange rate) during the six months ending September 30,
- The loss reported one year ago was $1.06 million. Sales fell 16
percent to ZAR 329.69 million ($31.59 million) due to a weak diamond
tender late in the reporting cycle.
---ALROSA Blames Stronger Dollar for Lower Profits
The dollars gains against the ruble were responsible for the drop in
ALROSAs net profit, by Russian Accounting Standards, for January
through September 2008 the miner stated. One year ago $1 bought
approximately RUB 24.5, but today $1 buys about RUB 27. ALROSA profits
plummeted 96.8 percent to RUB 112.57 million ($4.2 million) in the
third quarter of 2008.
---Cullinan Mine Adds $20M to Petra Revenues So Far
Petra Diamonds said it generated revenues of $19.8 million from its
first two tenders of diamonds recovered at its Cullinan mine in South
Africa. The company issued its first trade report on the mine since
taking ownership from De Beers in July. Petra said it placed a total
146,462 carats of diamonds for sale at the tenders in September and
October, achieving an average price of $135 per carat. The October
tender included the sale of a 39-carat blue diamond for $8.8 million.
---Gemfields Ends Bid for TanzaniteOne
Gemfields Resources said it would not revise its bid to purchase
colored gemstone producer TanzaniteOne after its initial offer expired
this week. The company, which is a subsidiary of Pallinghurst
Resources, owner of the Faberge brand, had offered about $21 million
for TanzaniteOne, but lowered it to about $19.6 million after
TanzaniteOne announced interim dividends.
---European Islamic Investment Bank Raises Stake in DiamondCorp
European Islamic Investment bank (EIIB) raised its stake in
DiamondCorp from 9.37 percent to 26.09 percent. The bank purchased
6.72 million shares in the deal, adding to its initial investment of 4
million shares acquired through a private placement on November 5. The
move makes EIIB the largest shareholder in DiamondCorp.
---Lerala Sale Disappoints Diamonex
Diamonex reported disappointing results from its inaugural sale of
diamonds from the Lerala mine in Botswana. The Australia-based company
initially offered the 10,613 carats for sale to local cutters and
polishers in Gaborone before sending the parcel to Antwerp to be
viewed by international diamantaires. The sale achieved an average
price of $20 per carat for the whole run-of-mine parcel, the company
said in its recent quarterly activities report.
---DiamondCorp to Raise $3M in Share Placement
DiamondCorp expects to raise GBP 1.8 million ($2.8 million) in a
placement of new shares on the Johannesburg Stock Exchange (JSE) and
London’s Alternative Investment Market (AIM). The company applied to
list four million fully paid ordinary shares, representing 10.79
percent of the company’s issued share capital.
ECON WATCH:
For week ending November 13, 2008
Nov 13 Nov 6 Chng
$1 = Euro 0.782 0.787 -0.006
$1 = Rupee 49.2 48.1 1.2
$1 = Israel Shekel 3.86 3.84 0.03
$1 = Rand 10.23 10.29 -0.06
$1 = Canadian Dollar 1.21 1.19 0.02
Precious Metals
Gold $735.70 $731.50 $4.20
Platinum $838.00 $836.00 $2.00
Nov 13 Nov 6 Chng Chng%
Stock Indexes
BSE 9,536.33 9,734.22 -197.89 -2.03%
Dow Jones Avg. 8,835.25 8,695.79 139.46 1.60%
FTSE 4,169.21 4,272.41 -103.20 -2.42%
Hang Seng 13,221.35 13,790.04 -568.69 -4.12%
S & P 500 911.29 904.88 6.41 0.71%
Yahoo! Jewelry Index 632.70 654.32 -21.61 -3.30%
Nov 13 Nov 6 Chng Chng%
USA
Abazias $0.51 $0.51 $0.00 0.00%
Birks & Mayors $0.60 $0.75 -$0.15 -20.00%
Blue Nile $23.73 $25.14 -$1.41 -5.61%
Charles & Colvard $0.20 $0.26 -$0.06 -23.08%
Collectors Universe $3.21 $3.74 -$0.53 -14.17%
DGSE Companies, Inc. $1.64 $1.70 -$0.06 -3.53%
Fuqi International $5.28 $6.77 -$1.49 -22.01%
JCPenney $19.28 $21.91 -$2.63 -12.00%
Kohls $30.57 $33.38 -$2.81 -8.42%
Lazare Kaplan $5.33 $6.76 -$1.43 -21.15%
LJ International $0.46 $0.51 -$0.05 -9.80%
Macys $8.38 $10.51 -$2.13 -20.27%
Man Sang $1.54 $1.61 -$0.07 -4.35%
Movado Group $12.42 $13.38 -$0.96 -7.17%
Nordstrom $12.96 $15.21 -$2.25 -14.79%
Saks $5.16 $5.16 $0.00 0.00%
Signet $10.44 $11.37 -$0.93 -8.18%
Sothebys $9.69 $8.75 $0.94 10.74%
Tiffany $22.44 $23.06 -$0.62 -2.69%
Wal-Mart $54.93 $53.51 $1.42 2.65%
Zale $13.93 $14.65 -$0.72 -4.91%
EUROPE
Bulgari €5.82 €6.00 -€0.18 -3.00%
Citizen Holdings €3.94 €4.39 -€0.45 -10.25%
Esa €4.04 €4.10 -€0.06 -1.46%
Golay-Buchel CHF 1,809.00 CHF 1,829.00 -CHF 20.00 -1.09%
LVMH €42.73 €49.64 -€6.91 -13.92%
Pinault P-R SA €37.64 €45.75 -€8.12 -17.74%
Richemont SA CHF 20.10 CHF 24.40 -CHF 4.30 -17.62%
Sakha Diamonds €0.27 €0.27 -€0.01 -1.83%
Swatch Group CHF 144.50 CHF 176.40 -CHF 31.90 -18.08%
Theo Fennell (pence) 23.00 27.00 -€4.00 -14.81%
HONG KONG
Hang HKD 0.65 HKD 0.65 HKD 0.00 0.00%
King Fook HKD 0.34 HKD 0.34 HKD 0.00 0.00%
Noble Jewelry HKD 0.42 HKD 0.42 HKD 0.00 0.00%
Tse Sui Luen HKD 0.83 HKD 0.83 HKD 0.00 0.00%
INDIA (rupee)
Classic Diamond 22.60 22.10 0.50 2.26%
Gitanjali Gems 79.80 83.10 -3.30 -3.97%
Rajesh Exports 27.35 30.80 -3.45 -11.20%
Ren. Jewellery 22.00 22.20 -0.20 -0.90%
Su-Raj Diamonds 28.15 28.75 -0.60 -2.09%
Titan 890.90 910.10 -19.20 -2.11%
Zodiac JRD 14.30 13.00 1.30 10.00%
Shantivijay Jewels 150.75 158.65 -7.90 -4.98%
Shukra Jewellery 3.65 3.65 0.00 0.00%
Suashish Diamonds 213.55 245.25 -31.70 -12.93%
NEW ZEALAND
Michael Hill NZD 0.60 NZD 0.68 -NZD 0.08 -11.76%
SINGAPORE
Gems TV Holdings SGD 0.070 SGD 0.075 -SGD 0.005 -6.67%
Sarin Technologies SGD 0.150 SGD 0.160 -SGD 0.010 -6.25%
Nov 13 Nov 6 Chng Chng%
MINING STOCKS
(pence unless noted)
USA
Anglo American $10.08 $10.37 -$0.29 -2.80%
CANADA
Archangel CAD 0.46 CAD 0.30 CAD 0.16 51.67%
Harry Winston CAD 8.54 CAD 10.73 -CAD 2.19 -20.41%
Mountain Province CAD 1.43 CAD 1.70 -CAD 0.27 -15.88%
Peregrine Diamonds CAD 0.34 CAD 0.39 -CAD 0.06 -14.10%
Rockwell Diamonds CAD 0.06 CAD 0.12 -CAD 0.06 -47.83%
Shore Gold CAD 0.42 CAD 0.49 -CAD 0.07 -14.29%
Stornoway Diamond CAD 0.11 CAD 0.15 -CAD 0.04 -24.14%
True North Gems CAD 0.11 CAD 0.13 -CAD 0.02 -12.00%
UK (pence)
African Diamonds 45.8 48.0 -2.2 -4.58%
BHP Billiton 926.5 969.0 -42.5 -4.39%
Firestone Diamonds 30.0 30.0 0.0 0.00%
Gem Diamonds 348.0 285.3 62.8 22.00%
Mano River 3.3 3.5 -0.3 -7.14%
Mwana Africa 4.9 5.8 -0.9 -15.22%
Namakwa Diamonds 49.0 51.0 -2.0 -3.92%
Petra Diamonds 93.0 93.0 0.0 0.00%
Rio Tinto plc 2,570.0 2,506.0 64.0 2.55%
Múdry sa teší objaveniu pravdy, hlupák falošnosti.
ja uz som si tak zvykol citat tieto tyzdenne prehlady ale nejak to tu upadlo.sak uz som v strate 7 tyzdnov,a neviem co sa deje.JA CHCEM TYZDENNE PREHLADY 😈 😈 😈
... Som tu deň a noc ...
Historické pohľadnice, dobové dokumenty a predmety z mesta Sereď
http://sered-city.blogspot.com
mamm rad zaujimavosti a hlavne v tej medzinarodnej blbej reci ked su napisane. JA CHCEM ZAUJIMAVOSTI o ktore si ma pripravil za tych 7 tyzdnov😃
... Som tu deň a noc ...
Historické pohľadnice, dobové dokumenty a predmety z mesta Sereď
http://sered-city.blogspot.com
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