Týždenný prehľad zaujímavostí vo svete diamantov .

..............................TAK DAVAJ........................😉

Nech sa páči jano,čítaj.😈

Rapaport TradeWire - Friday, December 26, 2008

News: Initial estimates indicate U.S. holiday retail jewelry sales off
by about 10% with online jewelry demand down 17%. Big Box retailers
slash prices 50% to 70% to attract shoppers and clear diamond and
jewelry inventories. Liquidity has become more important than profits
as deep discounters take customers away from regularly priced stores.
Post holiday fashion jewelry demand expected to be extremely price
sensitive. Engagement ring and special occasion demand should do
better. Japan Nov. retail sales -6% to $7.2 bil., and jewelry and
watch sales -17%. China Nov. retail sales +21% to $143 bil.
Manufacturers in Israel face deep liquidity crunch forcing closures,
layoffs and return of goods. India reopens 70% of cutting centers with
rough imports to resume at end of month. Indian gem and jewelry 4Q
holiday exports to U.S. and E.U. -25%. Theo Fennell 1H08 sales -20% to
$15 mil. with loss of $845K. Petra Diamonds 1H08 production +422% to
529k cts due to purchase of new mines.

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 include:
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

http://www.diamonds.net/Conference/2008/Default.aspx

Email: IDC@Diamonds.Net
Telephone: +1-702-893-9400

RAPAPORT EVENTS

Please check our events page to view
upcoming Rapaport events and show locations.

http://www.diamonds.net/Events/default.aspx

RETAIL QUOTE:

“I was looking for a decent 1ct, G-VS2, GIA certified, last week, but
most of my providers wanted between $5,300 to $5,700 per carat for the
stone. I found I could buy it from Blue Nile for anywhere from
$4,700/ct and up with GIA cert. The diamond dealers and the industry
have actually destroyed the traditional jewelry business by putting so
many stones online cheaper than what they sell to stores. Profit
margin is low, prices keep going up despite lower sales, diamond
brokers or companies keep asking a premium for GIA certified stones
over EGL or other certifications from us retailers, while Blue Nile
and others provide GIA certs below our cost to public and then they
give 1.5% +/- discount for wire transfer.”

---Homayoun Moshiri
Charlotte and Tipit, Kansas City

WORLD NEWS:

---U.S. Weekly Chain Store Sales -1%

Chain store retail sales in the U.S. fell 0.6 percent compared with
one year ago for the week ending December 20, 2008, according to the
International Council of Shopping Centers (ICSC) and Goldman Sachs.
ICSC Research expects monthly comparable-store sales will be down 1
percent or slightly more for December. Chain store sales were up 2.6
percent compared with the previous week.

---Online Holiday Retail Sales -1%; Jewelry & Watches -17%

Online retail sales fell 1 percent to $24.029 billion in the period
between November 1 -- the start of the holiday shopping season -- and
December 19, online research company comScore found. The company
reported that sales so far in December rose 1 percent to $12.849
billion compared with the first 19 days of the month in 2007, as
consumers this year delayed spending. Online sales of jewelry and
watches dropped 17 percent in December, making it the third-worst
performer among the tracked categories.

---70% of Surats Polishing Firms Open After Extended Closures

Seventy percent of Surat’s diamond units were reopened this week after
being closed for nearly two months. Remaining units are expected to
reopen by January 1, 2009. Units had reduced their working hours or
shut down altogether because of the ban on rough diamond imports by
the Gem & Jewellery Export Promotion Council. Fears had risen that the
extended vacation in the Surat diamond manufacturing industry would
lead to large scale retrenchments of workers there.

---Indias Gem & Jewelry Christmas Orders Slump

Indias gem and jewelry exports are facing the heat of the economic
meltdown in the U.S. and Europe, as Christmas orders are down by 15 to
25 percent this year. "Christmas sales are down 15 to 25 percent as
the major market, the U.S., is reeling under the financial crisis,"
Mehul Choksi, Gitanjali Group chairman and managing director, said,
adding that this trend is likely to continue for the next full year.

---Israeli Diamond Manufacturer Zvi Or Closes

Israel-based diamond manufacturer Zvi Or has closed its operations
after more than three decades in business, becoming one of the Israel
Diamond Exchanges (IDE) first major casualties of the global
recession. The company allegedly owes creditors $3.5 million after
reportedly become overexposed in a failed real-estate investment.

---Africa Reels As Economic Crisis Hits Mines

The global financial crisis and nose-diving commodity prices have
dealt a major blow to mining-based African economies. Analysts say the
economic downturn and its impact on commodity prices pose a possible
disaster for resource-rich countries that have failed to diversify
beyond the mineral wealth that fills government coffers. Mining
companies are scaling back operations, resulting in retrenchments
across southern Africa, while others are implementing emergency
measures such as extended periods of leave to prevent further loss of
jobs.

---UN Extends Mandate of Panel to Assess Liberia’s Kimberley Process
Compliance

The UN Security Council passed a resolution extending the mandate of
the panel of experts appointed to oversee Liberia’s compliance with
the Kimberley Process Certification Scheme. The council also renewed
the arms embargo on Liberia and the travel ban on individuals who "had
threatened the peace there" for another 12 months.

---Rapaport Broadcast News

In this week’s broadcast, industry leaders in Israel and the Bank of
Israel attempt to help struggling dealers in Ramat Gan. The New York
Diamond dealers Club plan to review voter records and "waiver of dues”
following the by-laws change vote. New diamond jewelry designs were on
display courtesy of Platinum Guild International

http://www.diamonds.net/news/NewsItem.aspx?ArticleID=24667

RETAIL & WHOLESALE NEWS:

---JCPenney to Reduce Prices 50% on Entire Stock of Diamond Jewelry

J.C.Penney announced its after-Christmas sale, which the retailer
contends will be its largest sale to date. Stores will open at 5:30
a.m. on December 26 and will be offering a 50 percent sale on
gemstones and cultured pearls, 40 percent off already-reduced
clearance prices on fine jewelry and watches, 70 percent off gold and
fine sterling silver jewelry, and 50 percent off JCPenneys entire
stock of moissanite. The retailer also plans to reduce its entire
stock of diamond jewelry 50 percent.

---Consumer Confidence Remains Near Record Low

The December Reuters/University of Michigan survey of consumer
sentiment came in at 60.1 points -- almost five points higher than
Novembers reading, but down from 75.5 in December 2007. The slightly
better consumer mood was attributed to a softening of retail prices.
Mounting job losses and a general worsening of personal finances kept
the mood somber overall. In other surveys for December, the monthly
Ipsos RBC Cash Index, which measures personal finances and how
comfortable consumers are with making major purchases, slipped 77
percent from one year ago to 15.3 points.

---NRF Asks for National Tax Holidays in 2009 to Boost Retail Sales

The National Retail Federation (NRF) asked President-elect Barack
Obama for a series of national sales-tax holidays to help rebuild
consumer confidence and spending. NRF proposed that tax holidays be
held for 10-day periods in March, July and October 2009. Tax-free
status would apply to all tangible goods subject to a state sales tax,
from apparel and home furnishings to restaurant dining and
automobiles, but excluding tobacco and alcohol. NRF estimates that
consumers could save nearly $20 billion.

---Theo Fennell 1H Sales Slump 20%

Luxury jeweler Theo Fennell reported sales fell 20 percent to GBP 10.2
million ($15.09 million) in the six months ending September 30, 2008.
The company posted a net loss of GBP 571,387 ($844,972), compared with
profits of GBP 295,314 ($436,661) in the first fiscal half of 2007,
due in part to a heavy expansion program into Dublin and other
international markets.

---Chinas Nov. Retail Sales +21%

Chinas retail sales grew 20.8 percent year-on-year in November to CNY
979.1 billion ($143 billion), the National Bureau of Statistics
reported. This figure, the main gauge for private consumer spending in
the worlds fourth-largest economy, was down from 22.0 percent growth
in October and 23.2 percent in September.

---Japans Dept. Store Sales Fall in Nov.

Same-store sales at Japanese department stores fell year-on-year in
November for the ninth straight month. In November, sales fell 6.4
percent from a year before on a same-store basis, the Japan Department
Stores Association said. Overall, sales at 280 stores run by 91 firms
totaled JPY 649.127 billion ($7.228 billion). Sales of mainstay
categories such as jewelry and fine art dropped 15.9 percent.

---JJS 2008 Affected By Economic Slowdown

The Jaipur Jewelry Show 2008(JJS), which concluded on December 23, saw
a perceptible drop in foot traffic and purchases compared to previous
years. The 358 exhibitors from all over India, Thailand, Hong Kong,
the U.S. and Dubai estimated that traffic was down 25 to 50 percent
from last year. Segments that did well were studded jewelry, kundan,
fusion jewelry (gold and silver combined). There was a lukewarm
response for very high end loose diamonds and high quality precious
stones.

WHO IS NEWS:

---Madoff Must Turn Over List of Assets Including Jewelry Before Dec.
31

Bernard Madoff, the Wall Street investor who confessed to a $50
billion Ponzi scheme, was ordered to provide a written list of all
assets, including jewelry, artwork, cars and real estate, by December
31, 2008. The request was one step in the process of finding what is
left to repay Madoff’s wronged investors. The order places control of
these assets in the hands of a court-appointed receiver.

---Two Retail Brand Heavyweights Join Blue Nile Board

Ned Mansour, the former president of Mattel, and Leslie Lane, general
manager of Nikes global running group, have joined Blue Niles board
of directors. Joanna Strober resigned from the board, having served as
director since Blue Niles launch in May 1999. Mansour retired from
Mattel in March 2000 after 22 years with the company. He currently
serves on the board of homebuilder Ryland Group. Lane was appointed to
his current post at Nike to lead a consumer focus on running. He
joined Nike in 2003.

GENERAL NEWS:

---Israel Diamond Exchange Acts to Help Members

The Israel Diamond Exchange (IDE) has implemented a number of measures
to help its members weather the current economic climate. IDE
president Avi Paz said that IDE membership fees would be cut by 50
percent in the first six months of 2009 for members in crisis. The IDE
plans to lower the requisite maintenance fee by about 10 percent for
the whole of next year and has eased the conditions for companies to
have sales permits reissued as well as the payment requirements for
conditional membership of the bourse.

IDE also increased its budget to help members in debt who have legal
claims against other members that prevent them from meeting their
obligations. Subsequently, Paz appealed to members of the exchange to
disclose to the IDE all private settlement of debt. Paz reported
several incidents whereby diamond companies reached a private
arrangement in which they could return goods in lieu of making the
necessary payments, rather than doing so in a collective manner
through the appropriate exchange bodies.

---IDL Opens in Italy

Dubai-based International Diamond Laboratories (IDL) opened a diamond
and diamond jewelry grading laboratory in Valenza, which will serve
customers in Italy and other parts of Europe. IDL CEO, Peter Meeus,
said the company’s certificates were already being used by retailers
in the European market, and IDLs presence there would help enhance
its service to these jewelers.

---U.S. Customs Seize More than $1M in Stones at JFK

The U.S. Department of Homeland Securitys U.S. Customs and Border
Protection at JFK International Airport seized diamonds worth more
than $1.2 million from a 54-year old U.S. citizen. Authorities found
two sets of diamond earrings and a 20.39 carat emerald cut yellow
diamond concealed in the pocket of the man who failed to produce a
customs certificate for the stones.

---Responsible Jewellery Council Takes New Name, Launches New Logo

The Council for Responsible Jewellery has changed its name to the
Responsible Jewellery Council (RJC) and adopted a new logo. The
changes coincide with the release of the council’s implementation
documents for its new certification system which RJC hopes will ensure
ethical and social standards in the diamond and gold jewelry industry.
Under the system, RJC outlines a code of practices required across the
supply chain from mining to retail, provides accreditation and
verification by auditors, and grants certification to members based on
the auditors recommendations.

CRIME ROUNDUP:

---Socialite and hotel heiress Paris Hilton was robbed at one of her
homes in Los Angeles. Local media reported that the burglar swiped $2
million dollars worth of jewelry and other valuables.

---Police in Upper Merion Township, Pennsylvania, identified an
alleged jewelry thief and filed a criminal complaint against him for
stealing a $300,000 diamond ring from Milanj Diamonds on November 30.

---Police in Southfield, Michigan, arrested five men in a plot to
kidnap, rob, and kill a local jeweler and his family. Police were
tipped-off to the plan allowing the family to go into hiding while
police investigated.

---Christopher Diamonds in Chandler, Arizona, reopened after having
been the scene of a brutal robbery attempt on December 20. Store owner
Rusty Uptain was shot in the face during a struggle with the robbers.
Police identified the gunman as Kevin William Murray, 46.

---Police in Salinas, California, reported two men robbed the Don
Robertos Jewelry store during which employees were ordered to lie on
the floor. Police said a "large amount of jewelry" was stolen before
the two men fled the scene.

---Connecticut State police are investigating an armed robbery outside
a jewelry store in which troopers responding to the scene found three
victims duct taped and piled into a pickup truck in the rear of the
Gold & Diamond Exchange. The three were customers going to a jewelry
store but preliminary information indicates that the suspects did not
enter the store and the only items taken had been in the possession of
the victims.

DIAMOND MINING NEWS:

---De Beers Mining Operations to Extend Christmas Break

De Beers has put most of its global mining operations on hold for a
month beginning in mid-December, as the company takes an extended
vacation due to the slump in demand for rough diamonds. Tom Tweedy,
spokesperson for De Beers Consolidated Mines (DBCM), said that the
company doubled its Christmas break in South Africa by suspending
operations from December 15 until January 12.

---Petra Diamonds Rev. -2% in 1H, Slashes Exploration Plans 80%

Petra Diamonds reported that production for the first half of its
fiscal year rose 422 percent to 528,636 carats. The company sold
368,296 carats, a 218 percent increase over the same period in 2007,
but the groups revenue fell 2 percent to $31.1 million. Petra plans
to reduce its 2009 exploration budget by 80 percent to $5 million, by
pulling out of the Alto Cuilo project in Angola and reducing its
activity in Botswana and Sierra Leone.

---ALROSA Strikes Diamond Ore at Mir Ahead of Schedule

ALROSA has struck diamond ore ahead of schedule during construction of
an underground mine at its Mir diamond pipe. ALROSA had not expected
to reach the ore-body until May 2009. The first stage of the Mir mine
has a capacity of 150,000 metric tons (165,347 tons) of ore per year
and is due to be commissioned on July 15, 2009.

---Rio Tinto Claims Record Price for Argyle Diamond

Rio Tinto Diamonds said that it has received a record price for a pink
diamond mined at its Argyle mine in Western Australia. The company did
not disclose who bought the diamond or the price the stone fetched,
revealing only that it sold above the reserve price. The stone, named
“Aphrodite” after the Greek goddess of love, is a 1.01-carat, round
purplish-red diamond.

---Diamcor Agrees to Buy De Beers Alluvial Diamond Project

Diamcor Mining has signed a definitive agreement to acquire the
Krone-Endora alluvial diamond deposit from De Beers Consolidated mines
for ZAR 14 million ($1.44 million, or CAD 1.82 million). The deposit
is located in Limpopo Province in South Africa and consists of
prospecting rights over the Krone 104 and Endora 66 farms, which are
next to the De Beers Venetia Diamond Mine. De Beers had completed
extensive exploration work on the alluvial flows from Venetia but the
project did not fit De Beers current strategic focus.

---Gemfields FY Loss Grows in 2008

Gemfields Resources reported no revenue for its fiscal year 2008 that
ended on June 30, in contrast to the companys $1.8 million in revenue
one year earlier. Mining and production costs fell 48 percent to $3.02
million for the fiscal year. Additional operating income, however,
rose almost 300 percent to $739,000. Gemfields reported a loss of
$30.2 million for the fiscal year, from a loss of $7.3 million one
year ago.

---Diamond Fields Suspends Namibia Marine Operations

Diamond Fields International Ltd (DFI) has suspended the operations of
its mining vessel DF Discoverer off the coast of Namibia until further
notice. “The Board of Directors made this decision based on the
severity of the global economic downturn and the sudden drop in the
price of rough diamonds,” the companys statement explained.

ECON WATCH:

                         Dec 24        Dec 18        Chng    

$1 = Euro 0.714 0.680 0.034
$1 = Rupee 47.8 46.9 0.9
$1 = Israel Shekel 3.88 3.72 0.16
$1 = Rand 9.75 9.67 0.08
$1 = Canadian Dollar 1.22 1.18 0.04

Gold $847.80 $852.70 -$4.90
Platinum $865.00 $853.00 $12.00

zase som prerobil 😎

to vieš hospodárska kríza.😈

uz som myslel ze ti prestalo bit srdce. 4 slova si pisal 18 minut😃

:shock: 😲 neviem, musím ťa sklamať ešte žijem.😆

Rapaport TradeWire - Friday, January 23, 2009
News: Retail sales remain weak. Bridal/engagement ring sector providing only consistent source of demand as it supports under the carat cert market at deep discounts. Chinese New Year provides limited action with price sensitive Asians moving to SI goods. NY JA show poor. DTC Jan. sight estimated at under $100 mil. U.S. Dec. jewelry consumer price index +8%. Leviev No 1. 2008 Israeli polished exporter at $417 mil. (-20%). Belgium Dec. rough imports -70% to $242 mil. and polished exports -22% to $689 mil. Sierra Leone 2008 rough exports -31% to $98 mil. (371,285cts. -17%). Richemont 3Q total sales -7% to $2 bil. and jewelry sales -7% to $1 bil. BHP 2Q production -30% to 594,000 cts.

Martin Rapaport Video: New Year Market Analysis
Addresses key initiatives facing diamond dealers in 2009

ANNOUNCEMENTS:

RAPAPORT DIAMOND CONFERENCE 2008
NOW AVAILABLE ON VIDEO DVD !

Did you predict the financial crisis?
On September 8, the Rapaport Conference did.

Speakers and Diamond-Specific Topics include:
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 upcoming Rapaport events and show locations.

RETAIL QUOTE:

"The world could hardly be more different [now]. I’m not going to spell out the difficulties that face us and the industry....What I can say, and not by way of cheering you up I’m afraid, is that our preliminary view of Christmas sales in the U.S. is that they underperformed expectations. We do not have a precise read but the percentage decline year on year is likely to fall somewhere between 15 and 20 percent, leaving the decline for the U.S. market as a whole for the year in the high single digits. While a glimmer of good news is that the number of pieces sold may in fact not have declined, the need to move those items means that retailers’ margins have suffered and they are not in a position to replenish stock as strongly."

---Varda Shine, managing director of DTC, at London sightholder cocktail party

WORLD NEWS:

U.S. Jewelry CPI +8% in Dec.

The consumer price index (CPI) for jewelry in the U.S. rose 7.5 percent year on year during the month of December to 156.07 points. The rate was more than one point higher than Novembers index. For the watch and jewelry categories combined, the index for December was up 6.9 percent to 148.86 points.

Israels Top 25: Leviev Ranks No.1 Despite 20% Drop in Diamond Exports

Lev Leviev Diamonds (LLD Diamonds) was again Israel’s largest exporter of polished diamonds in 2008, despite a 20 percent decline in the company’s exports. According to Israel’s Ministry of Industry, Trade and Labor, LLD Diamonds exported $417 million worth of polished diamonds in 2008, compared with $522 million in 2007

Bank of America Sues Christian Bernard for $1M,
Hearts on Fire Opposes Sale of Goods

Bank of America is suing jeweler Christian Bernard for $1 million in connection with a loan granted in July 2003. BOA claims that after Christian Bernard filed Chapter 7 bankruptcy in December, it defaulted on a loan agreement. Christian Bernard Diffusion, a Paris subsidiary of Christian Bernard, was granted the loan through LaSalle Retail Finance, which is now part of BOA. Diamond brand Hearts on Fire also filed a petition with a U.S. Bankruptcy Court contending that diamonds consigned on memo to Christian Bernard must be returned, rather than being sold in a going-out-of-business sale to pay the retailers bank debt.

South Africas Acting State Diamond Trader Shows Goods to Clients

South Africa’s State Diamond Trader (SDT) is in the process of showing goods to clients even as the country’s mining houses have curtailed production due to the slump in demand for rough diamonds. Futhi Zikalala, acting chief executive officer (CEO) of the SDT, said that while the trader has presented the goods to the smaller cutting and polishing operations in South Africa, it remains to be seen at what level the organization will sell goods in January.

Rapaport Broadcast News

In this week’s broadcast, look for a wrap-up of the JA NY show and see how diamonds made their statement at the White House inaugural festivities.

DIAMOND STATS:

Belgium Dec. Imports/Exports

Dec. Chng. YTD Chng.
$mil 2007 $mil 2007
Polished Exports $633 -26% $14,480 10%
Polished Imports $470 -15% $7,492 58%
Net $194 -44% $6,987 -17%

Rough Imports $86 -91% $9,244 2%
Rough Exports $24 -43% $794 39%
Net $61 -94% $8,450 0%

Net Diamond Acct. $132 ($1,462)

Chinas Diamond Imports +22% in 2008

Chinas Shanghai Diamond Exchange (SDE) trade increased 30.5 percent year-on-year to $1.307 billion in 2008. Diamond imports and exports increased 29.1 percent from the previous year to $1.174 billion -- including imports of $535 million, up 21.7 percent. Bonded trades among members of the SDE amounted to $100 million in 2008, up 78.6 percent from 2007.

South Africas Nov. Diamond Production -27%

South Africa’s diamond production fell 27.4 percent in November 2008 compared with one year earlier, according to a preliminary report by Statistics South Africa on the country’s mineral production for the month.

Sierra Leone 2008 Diamond Exports -31% to $98M

Sierra Leone reported that its exports of diamonds, a major source of revenue for the West African nation, dropped by 31 percent in 2008, mainly due to industrial strikes. Total diamond exports for 2008 were valued at nearly $98 million from the sale of 371,285 carats, compared with $141.5 million for 448,928 carats in 2007.

WHOLESALE AND RETAIL:

Japans Dec. Department Store Sales -9%

Japan’s department store sales fell 9.4 percent to JPY 794.7 billion ($8.76 billion) in December from one year ago. The drop was the steepest sales dip the country has recorded since March 1998, when sales fell 20.8 percent. For the full year 2008, department store sales in Japan shrank by 4.3 percent to JPY 7.38 trillion ($81.45 billion).

Richemont 3Q Sales -7%

Luxury retailer Richemont reported a 7 percent drop in group sales during the three months ending December 31, 2008, and offered a bleak outlook for future performance. The company registered declines in each of its main product categories as total sales for the period fell to EUR 1.552 billion ($2.06 billion). Jewelry sales fell 7 percent to EUR 800 million ($1.062 billion). Sales were weakest in the Americas, where Richemont reported a 24 percent decline.

Theo Fennell Holiday Sales -21%

Theo Fennell reported that 2008 holiday sales fell 21 percent on a same-store basis due to poor performance in its U.K. home base. The luxury retailer previously reported a similar sales decline for its first fiscal half, with sales down 20 percent to GBP 10.2 million ($15.09 million) for the six months ending September 30, 2008.

Saks to Cut 1,100 Jobs

Saks Incorporated announced it will slash 1,100 jobs, or 9 percent of its workforce, as part of a major cost-cutting strategy that the retailer has adopted to weather the weak economic environment. The cuts will apply to corporate and in-store positions, and most will take effect by January 30, 2009.

Sterling Jewelers Cuts 114 Jobs on Sales Slowdown

Sterling Jewelers cut 114 employees from the workforce. The job cuts amounted to slightly more than 5 percent of the companys 2,200 local employees. Most of the laid-off workers worked in the companys headquarters in Akron, Ohio.

Birks & Mayors to Close One Store in Atlanta

Jewelry retailer Birks & Mayors will close its Mayors location in the Perimeter Mall in Atlanta, Georgia, on January 25, 2009. The store closure will affect five employees. The retailer reported that companywide sales fell 31 percent to $66 million for the period from November 2 to December 27, 2008, and same-store sales dropped 26 percent. In the U.S., same-store sales saw a 31 percent decrease, and they declined 19 percent in stores across Canada.

JCPenney Clarifies Unfounded Market Concerns About its Credit Facility

Retailer JCPenney released a statement in order to dispel "unfounded concerns" regarding its revolving credit facility. A spokesperson for the company said, "JCPenney has one of the strongest balance sheets in the retail industry and a cash position that is more than sufficient for all of our needs. Given this, there is no basis for any concern about our credit facility." JCPenney reported that it expects to have more than $2 billion cash on its balance sheet at the end of its fiscal year 2008, which ends January 31, 2009.

Japan-Based Jeweler Miki Goes Bust

Jeweler Miki Corporation filed for bankruptcy protection with liabilities estimated at JPY 11.7 billion ($130.2 million), due to slumping sales at its stores throughout Japan. The company, known for Jewelry Maki and other nationwide jewelry shop chains, had tried to restructure under the burden of heavy debts accompanying the development of a large number of shops. In the period from January to August 2008, however, sales plunged to JPY 20.5 billion ($228.1 million).

Analyst Cuts Blue Nile Amid Falling Prices, Weak Consumer Demand

Lower prices for polished diamonds and higher demand for smaller gemstones amid rising unemployment caused an analyst to cut his price target on online jeweler Blue Nile Inc. Matt Nemer, a Thomas Weisel Partners analyst, lowered his target to $17 from $26, implying that the stock may decline 15 percent from Wednesdays closing price of $20.03. Nemer expects polished diamond prices to decline because of shrinking demand worldwide for diamonds. Polished diamond prices have slipped 3.6 percent so far in January, Nemer said.

Damas Opens Ninth Store in Dubai Mall

Dubai-based jewelry and watch retailer Damas International Limited opened its ninth store in the Dubai Mall. The new store, Damas Italia, opened on January 10, and will house Italian brands such as IOSI, Porrati and Nouvelle Bague.

WHO IS NEWS:

De Beers Marketing Strategist Lamb to Leave

David Lamb, chief strategic officer of De Beers’ marketing unit, Forevermark, will be leaving De Beers at the end of this month. Lamb led and managed Forevermarks product strategy and creative design since its inception in 2007. Lamb previously served as global business director at branding company JWT, where he handled the De Beers account and helped create some of De Beers’ legendary campaigns including the "Past, Present, Future" three-stone ring campaign.

Zales CFO Leaves, Gordon Assumes the Role

Zale CFO Rodney Carter, has left the company, and has been replaced by Cindy Gordon until a replacement is found. Gordon will also continue to serve in her current role as company controller.

Paragon Lake Hires David Hill as VP of Sales

David Hill has joined Paragon Lake as the company’s new vice president of sales. Hill will be responsible for increasing sales and building up the in-house sales team.

GENERAL NEWS:

Pres. Bush Uses Authority to Alter Burmese JADE Act

In his last week in office, President George W. Bush waived some of the provisions in the Tom Lantos Block Burmese JADE Act against Myanmar. The bill was signed into law in July 2008 and was intended to prevent rubies and jade from Myanmar from entering the U.S., whether directly or through third-party countries. Bush waived the right of the government to freeze the assets of anyone who might be found trading in Burmese jewels but is not yet known to the government, or who hadn’t begun to trade in such goods at the time the bill was passed.

Robbers Steal $1M in Goods from Alberta Diamond Exchange

Calgary police say three masked thieves held a jeweler and his son, and the sons friends, hostage at their home before forcing the jeweler to open his store so the robbers could take diamonds and jewelry. Police estimate the stolen goods from Alberta Diamond Exchange amounted to $1 million. Police are still searching for three suspects.

GIA India to Launch First Courses in Jaipur in February

The Gemological Institute of America (GIA), in association with the Indian Institute of Gems and Jewellery (IIGJ), plans to offer two gemological courses in Jaipur. GIA India will host the two weeklong classes.

Webcast to Discuss Lessons Learned from Shane Bankruptcy

Panorama Consulting Group will host a free webcast on enterprise resource planning (ERP) software on January 29, for 60 minutes beginning at 11 a.m. Eastern Time. The consulting group noted in particular that costs associated with an ERP solution were cited as a contributing factor in jewelery retailer Shane Co.s recent bankruptcy case. Panorama will address realistic cost expectations for ERP, the risks and rewards of installing such a solution, and will provide guidance on software options for small and mid-sized businesses.

DIAMOND MINING NEWS:

BHP Billiton Diamond Production -30% in 2Q

BHP Billiton reported that its diamond production for the quarter ending December 31, 2008, fell 30 percent to 594,000 carats. The company explained that the year-to-year decline was primarily due to lower grades and an expected change in the mix of ore as its Ekati mine in Canada transitions from open-pit to underground mining.

De Beers Freezes Expenditures, Plans Job Cuts in South Africa

De Beers is planning a sweeping reduction of its 3,500 employee workforce in South Africa in response to weak diamond demand. The company plans to cut 1,415 positions, of which about 400 are currently vacant. The move is part of its plan to freeze all nonessential capital expenditures for the year.

Cullinan Mine to Meet 2009 Production Targets

The Cullinan mine, operated by Petra Diamonds, produced 450,129 carats in the second half of 2008, staying on track to meet its production targets for the fiscal year. The mining company expects the mine to produce 950,000 carats for the year ending June 30, 2009. Petra has no intention to cut back production at Cullinan, bucking the trend set by other mining companies in response to the slump in demand for rough diamonds.

ECON WATCH:

For week ending January 22, 2009

Jan. 22 Jan. 15 Chng.
$1 = Euro 0.770 0.760 0.010
$1 = Rupee 49.2 48.9 0.3
$1 = Israel Shekel 3.94 3.88 0.06
$1 = Rand 10.07 10.02 0.05
$1 = Canadian Dollar 1.26 1.25 0.01

Precious Metals
Gold $856.40 $817.00 $39.40
Platinum $922.00 $919.00 $3.00

Stock Indexes Chng.
BSE 8,813.84 9,046.76 -232.92 -2.57%
Dow Jones Avg. 8,122.80 8,212.49 -89.69 -1.09%
FTSE 4,052.23 4,121.11 -68.88 -1.67%
Hang Seng 12,657.99 13,242.96 -584.97 -4.42%
S & P 500 827.50 843.74 -16.24 -1.92%
Yahoo! Jewelry Index 522.96 555.71 -32.75 -5.89%

USA
Birks & Mayors $0.50 $0.51 -$0.01 -1.96%
Blue Nile $19.17 $20.50 -$1.33 -6.49%
Charles & Colvard $0.22 $0.22 $0.00 0.00%
Collectors Universe $3.97 $2.86 $1.11 38.81%
DGSE Companies, Inc. $1.49 $1.40 $0.09 6.43%
Fuqi International $5.88 $6.25 -$0.37 -5.92%
JCPenney $17.89 $19.25 -$1.36 -7.06%
Kohls $37.68 $37.48 $0.20 0.53%
Lazare Kaplan $3.75 $4.00 -$0.25 -6.25%
LJ International $0.69 $0.70 -$0.01 -1.43%
Macys $9.39 $9.76 -$0.37 -3.79%
Man Sang $1.50 $1.46 $0.04 2.74%
Movado Group $7.72 $8.25 -$0.53 -6.42%
Nordstrom $13.06 $12.66 $0.40 3.16%
Saks $2.40 $3.38 -$0.98 -28.99%
Signet $7.70 $9.45 -$1.75 -18.52%
Sothebys $7.95 $8.79 -$0.84 -9.56%
Tiffany $21.21 $22.06 -$0.85 -3.85%
Wal-Mart $48.87 $51.42 -$2.55 -4.96%
Zale $1.45 $2.93 -$1.48 -50.51%

EUROPE
Bulgari €3.50 €3.80 -€0.30 -7.89%
Citizen Holdings €2.49 €2.49 €0.00 0.00%
Esa €2.85 €2.95 -€0.10 -3.39%
Golay-Buchel CHF 1,593.00 CHF 1,695.00 -CHF 102.00 -6.02%
LVMH €41.92 €41.00 €0.92 2.24%
Pinault P-R SA €37.73 €40.98 -€3.25 -7.93%
Richemont SA CHF 18.00 CHF 17.44 CHF 0.56 3.21%
Sakha Diamonds €0.26 €0.27 -€0.01 -3.70%
Swatch Group CHF 129.50 CHF 129.70 -CHF 0.20 -0.15%
Theo Fennell (pence) 13.00 14.00 -€1.00 -7.14%

HONG KONG
King Fook HKD 0.35 HKD 0.39 -HKD 0.04 -10.26%
Noble Jewelry HKD 0.43 HKD 0.43 HKD 0.00 0.00%

INDIA (rupee)
Classic Diamond 8.83 9.39 -0.56 -5.96%
Gitanjali Gems 50.95 56.90 -5.95 -10.46%
Rajesh Exports 24.00 22.30 1.70 7.62%
Ren. Jewellery 21.10 19.15 1.95 10.18%
Su-Raj Diamonds 22.00 23.00 -1.00 -4.35%
Titan 893.75 929.05 -35.30 -3.80%
Zodiac JRD 11.70 12.25 -0.55 -4.49%
Suashish Diamonds 164.90 178.10 -13.20 -7.41%

NEW ZEALAND
Michael Hill NZD 0.53 NZD 0.53 NZD 0.00 0.00%

SINGAPORE
Gems TV Holdings SGD 0.040 SGD 0.040 SGD 0.000 0.00%
Sarin Technologies SGD 0.115 SGD 0.115 SGD 0.000 0.00%

MINING STOCKS
(pence unless noted)
USA
Anglo American $8.93 $9.81 -$0.88 -8.97%
CANADA
Archangel CAD 0.07 CAD 0.09 -CAD 0.03 -27.78%
Harry Winston CAD 4.80 CAD 4.96 -CAD 0.16 -3.23%
Mountain Province CAD 0.99 CAD 1.03 -CAD 0.04 -3.88%
Peregrine Diamonds CAD 0.65 CAD 0.68 -CAD 0.03 -4.41%
Rockwell Diamonds CAD 0.07 CAD 0.08 -CAD 0.01 -12.50%
Shore Gold CAD 0.35 CAD 0.33 CAD 0.02 6.06%
Stornoway Diamond CAD 0.12 CAD 0.13 -CAD 0.01 -7.69%
True North Gems CAD 0.09 CAD 0.10 -CAD 0.01 -10.00%
UK (pence)
African Diamonds 30.0 30.3 -0.3 -1.02%
BHP Billiton 1,162.0 1,137.0 25.0 2.20%
Firestone Diamonds 20.0 19.6 0.4 2.30%
Gem Diamonds 270.8 315.0 -44.3 -14.05%
Mano River 2.8 2.9 -0.1 -4.18%
Mwana Africa 3.8 4.0 -0.2 -4.75%
Namakwa Diamonds 38.3 41.0 -2.8 -6.71%
Petra Diamonds 66.8 80.0 -13.3 -16.56%
Rio Tinto plc 1,536.0 1,401.0 135.0 9.64%

INDIA MARKET REPORT:

Rapaport TradeWire - Friday, January 30, 2009
News: Total rough diamond sales to the trade plummet to mere $150 million this January as cutters run out of money. ALROSA sells all rough to Russia repository Gokhran. Tiffany’s Laurelton Diamonds closes Yellowknife cutting plant. Polished markets under continued pressure due to severe liquidity and credit concerns. Interdealer cash markets developing at 30% to 40% below memo price levels with great profit opportunities for those that have cash and buyers. Miami Antique Show attracts diamonds but few buyers. Valentines Day sales expected to come in at -20% of last year. Chinese diamond imports up 22% in 2008. EU calls on Kimberley Process to enforce Zimbabwe compliance. Fred Myers to open 15 new stores in 2009.

Martin Rapaport Video: New Year Market Analysis
Addresses key initiatives facing diamond dealers in 2009

ANNOUNCEMENTS:

RAPAPORT DIAMOND CONFERENCE 2008
NOW AVAILABLE ON VIDEO DVD !

Did you predict the financial crisis?
On September 8, the Rapaport Conference did.

Speakers and Diamond-Specific Topics include:
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 upcoming Rapaport events and show locations.

RETAIL QUOTE:

“[Christmas sale were fair. People were definitely spending less and price-shopping. Now we are negotiating stronger with our designers and diamond buyers. We are looking for better deals to bring the prices down as much as we can. We are just trying to be smarter about a lot of things."

---Jamie Bovender, owner of Oletowne Jewelers

West Manchester Township, Pennsylvania

World News

ALROSA to Sell Rough Only to Gokhran

ALROSA will stop selling rough diamonds to all of its customers with the exception of Russia’s state repositor, Gokharn. Gokhran will continue buying supplies from ALROSA to keep cash flowing for mining operations. ALROSA had previously announced it planned to reduce rough sales by 30 percent due to the shrinking demand for rough goods.

Laurelton Diamonds Closes Yellowknife Polishing Plant

Laurelton Diamonds, a subsidiary of Tiffany & Co., plans to close its diamond polishing unit in Yellowknife, Canada, as a result of high operational costs and a lack of accessible rough diamond supply. The plant closes February 19 and is expected to layoff 25 of the 38 employees who work there. Laurelton is a Diamond Trading Company sightholder that specializes in the manufacture of diamonds for sale as jewelry at Tiffany & Co.s retail stores.

NRF Survey Predicts 14% Drop in Gift Spending for Valentines

Total Valentine’s Day spending this year is expected to reach $14.7 billion, according to the National Retail Federation (NRF), down 13.6 percent from the organization’s estimate of $17.02 billion in 2008. Based upon Christmas jewelry retail sales, Rapaport Research forecasts that Valentine’s Day spending will fall approximately 20 percent from 2008.

The NRF expects overall retail sales to fall by 2.5 percent in the first half of 2009, and by 1.1 percent in the third quarter. However, the NRF predicted a 3.6 percent increase in fourth-quarter sales for 2009. The upswing will come "due to easy comparisons to last year as well as a strengthening economy."

EU Calls upon Kimberley Process to Ensure Zimbabwe is Compliant

The European Union (EU) called for the Kimberley Process "to take action with a view to ensure Zimbabwes compliance with its Kimberley obligations." The EU supports action to investigate the exploitation of diamonds from the Marange/Chiadzwa area and alleged financial support of the regime and recent human rights abuses. As a result of an ongoing economic and humanitarian crises in Zimbabwe, the World Diamond Council (WDC) raised concerns this past December about the possible illegal exports of Zimbabwean diamonds.

Indian Diamond Industry May See More Defaults

The diamond industry in Surat has witnessed more than half a dozen cases of defaults involving diamond manufacturers and merchants recently, to the tune of more than $8 million. If the current trend is anything to go by, default cases are likely to soar in the next one to two months, market watchers told the Times of India.

France Slashes VAT Rate on Some High-End Jewelry Imports

The French government lowered the value added tax (VAT) on some “rare” or “high-value” jewelry imports from 19.6 percent to 5.5 percent. The move was designed to boost the appeal of Paris as an auction center for jewelry.

Rapaport Broadcast News

In this week’s broadcast, The Conference Boards latest consumer survey finds that shoppers are very pessimistic about the economy, which plays into NRFs prediction of weak retail sales for the first half. ShopNBC is working on cost-cutting measures. Israel’s activity is directed toward overseas traders.

Wholesale & Retail

Bulgari Sales -10% in 4Q08, Jewelry Revenue -13%

Bulgari sales fell 9.8 percent in the fourth quarter to EUR 312.6 million ($412.6 million); using constant exchange rates, total sales dropped 15.5 percent. Jewelry sales for the three months ending December 31, 2008, declined 12.8 percent to EUR 129.3 million ($170.7 million), and at constant exchange rates they were down 17.3 percent. Watch sales decreased 21.2 percent to EUR 72 million ($95 million), a 28 percent drop at constant exchange rates. Full-year jewelry sales fell 2.6 percent to EUR 448.2 million ($591.6 million), and dropped 1.5 percent using constant exchange rates. Watch sales declined 10.5 percent to EUR 263.8 million ($348.2 million), and total company sales were down 1.5 percent to EUR 1.075 billion ($1.42 billion). By geographic region, Bulgari experienced its steepest sales drop for the fiscal year in the Americas, where they were down 12.5 percent. Sales decreased 1.4 percent in Europe, but grew 1.6 percent across Asia and were up by 9.1 percent across the Middle East. Full-year profits for fiscal 2008 will be announced on March 11, 2009.

Swatch Watch, Jewelry Sales -6% in 2H 2008

Swatch Groups sales in the second half of 2008 fell 6.3 percent to CHF 2.853 billion ($2.469 billion), while gross watch and jewelry sales declined 5.6 percent to CHF 2.451 billion ($2.122 billion). The company did not provide separate half-year sales figures in its full-year report published Thursday. For the full year, Swatch posted a 0.5 percent rise in net sales to CHF 5.677 billion ($4.908 billion). Its watch and jewelry segment saw gross sales increase 1.8 percent for the year to CHF 4.796 billion ($4.151 billion), while at constant exchange rates sales rose 6.6 percent. Sales growth was most profound in China and the Middle East, where Swatch posted double-digit increases. Sales in Europe and the U.S. showed more modest growth, "with recession fears starting to weigh on consumer confidence in several countries and markets towards the end of 2008," the company explained.

Bijou Brigitte Same-store Sales -5%, Revenue +2%

Bijou Brigitte Modisches revenue rose 2.2 percent in 2008 to $512.8 million, mostly from an increase in new stores. Same-store sales fell 4.9 percent. Bijou Brigitte opened 95 outlets and closed 15. The jeweler reported that domestic sales were stable in Germany, but revenues declined in Spain, Portugal and France. The company will report profits in March.

Israel’s Esskay Diamonds Informs the Exchange it Owes Almost $5M

Israel’s Esskay Diamonds notified the Israel Diamond Exchange (IDE) that it is having difficulty settling its debts. The company reported that it owes other diamond companies $3 million and the banks a further $1.8 million. An IDE spokesperson confirmed that Esskay Diamonds has not closed, nor has it declared bankruptcy. Following the news, New York-based Esskay Gems made a point to announce that it was not affiliated with any company with a similar name.

Israeli Diamond Dealer Ady Legziel Closes

Diamond manufacturer and dealer Ady Legziel has joined the growing list of companies in the Israel Diamond Exchange (IDE) to close up shop. A Tel Aviv District Court has appointed a liquidator to oversee the company’s debt, which amounts to approximately $1.6 million.

Fred Meyer Plans to Open 15 Stores

Fred Meyer Jewelers plans to open 15 new stores in the U.S. this year. In addition, Littman Jewelers, Fred Meyer’s sister company, will change the name of all its Tennessee stores to Fred Meyer Jewelers when it holds two Fred Meyer grand openings in the state on February 11.

Bankruptcies +94% in 08 in O.C., Jewelry Among Vulnerable Industries in 09

Individuals and businesses that filed for liquidation or protection in Orange County, California, during the year numbered 8,983. Thats a 93.8 percent increase from 2007, according to the U.S. Bankruptcy Court. Most experts expect 2009 to be worse, with the most vulnerable industries being real estate, jewelry, apparel and restaurants.

UK Online Jewelry Retail Traffic Up in Dec.

Online retailers of jewelry and luxury goods saw an increase in U.K Internet traffic this past December. According to online research company comScore, traffic to jewelry and luxury goods sites grew 4.6 percent compared with a year ago, to almost 4.1 million unique visitors in December. Visitors to jewelry and luxury sites climbed 26 percent from the previous month. ComScore did not provide sales figures.

No Bids for ShopNBC, 4Q Results Disappoint

The board of directors of ShopNBC agreed to continue business as an independent entity following an extensive and unsuccessful search for a buyer. ShopNBC preliminary fourth-quarter results found that sales fell 35 percent to $142 million. The shopping network expects a net loss of $40 million, much deeper than its loss of $1 million one year ago.

Who is News

Archangel Diamond Corp. Names New Chairman

Robert Shirriff, company director of Archangel Diamond Corporation, was named chairman of the board following the resignation of former chairman of the board, Bruce Cleaver, and former director Jonathan Dickman. Tony Guthrie, a senior manager at De Beers Group Services, and Steven Thomas, chief financial officer (CFO) of De Beers Canada and CFO of Archangel, were appointed to the board as well.

A.Jaffe Appoints DeGraeve to Head Marketing, Reduces Retail Doors

Bridal jewelry manufacturer A.Jaffe appointed Evert DeGraeve as vice president of merchandising and marketing. DeGraeve will be responsible for the development of all merchandising and marketing plans at A.Jaffe. A.Jaffe also announced it would be streamlining its account base to concentrate on 300 exclusive retail partners, ending its partnerships with 100 retailers.

Fong to Resign Post at FUQI, Remain as Consultant through May

FUQI International, the jewelry designer and manufacturer based in Shenzhen, China, announced that Dexter Fong, its executive vice president of corporate development, will be resigning effective January 31, 2009. Fong will serve as a consultant to FUQI through May.

WhiteFlash Acquires GemDiamond.com

Online diamond retailer WhiteFlash acquired GemDiamond.com. As part of the integration plan, WhiteFlash hired Bryan Boyne as vice president for this newly created position.

General News

Robbers Steal Diamonds from Two Dealers Visiting Oklahoma

Two dealers were robbed in Oklahoma City while putting gasoline in their rental car. Police say three robbers, who were also in a rental car, pulled up to the dealers car, and then two of them broke the cars back windows and stole two suitcases filled with diamonds. The suspects were described as white men. The dealers had been to Tulsa and Norman on sales calls prior to their stop in Oklahoma City. Police believe the dealers were hunted and that the robbery was premeditated.

German Jewel Thieves Stage Multimillion-Euro Heist

Robbers pulled off a daring heist in Berlin, stealing jewelry reportedly worth up to EUR 5 million ($6.5 million). The raid was carried out during this past weekend at the upscale KaDeWe store. The thieves appeared to have managed past burglar alarms, as the theft was not discovered until Monday morning.

Bank of Israel Forecasts Negative Growth in 2009

The Bank of Israel expects the country to experience negative growth in 2009 due to the intensified economic slowdown in the final quarter of 2008. The bank lowered its forecast to negative 0.2 percent from its previous outlook of 1.5 percent growth.

IDL Plans Feb. Launch of Saudi Arabia Lab

Dubai-based International Diamond Laboratories (IDL) plans to launch operations in the Kingdom of Saudi Arabia on February 14, 2009. The new facility will mark the first time a diamond and diamond jewelry grading lab has been established in the country, according to IDL.

Diamond Mining News

DiamondCorp Nets Almost $2M from Lace Tailings Tenders

DiamondCorp reported that it sold 31,906 carats of diamonds from its Lace tailings retreatment plant in South Africa at tender during 2008 for $1.7 million, or an average $53.52 per carat. The company added, however, that it has ceased activities at the plant, as the “significant drop in prices” in the second half of the year meant it was “no longer economic” to operate.

Debswana Shareholders Argue on Bailout, Layoffs

A rift may be emerging between De Beers and Botswana over a possible bailout of Debswana. Botswana’s Sunday Standard cited unnamed "insiders" as saying that the government is prepared to recapitalize Debswana on its own in order to avoid mass layoffs. The government favors keeping Debswana’s mines operating and stockpiling inventory until the markets recover. De Beers, however, will not stockpile and has committed to scaling back production to meet lower demand from its customers.

Pangea DiamondFields Settles $2M Loan

Diamond exploration company Pangea DiamondFields repaid a $2 million loan to Pangea Exploration (Proprietary) Limited (Panex) and settled the outstanding loan from funds it raised through a successful open offer in December.

Endiama Seeking Diamond Exploration Partners in Angola

Angola’s state-owned diamond mining company, Endiama, is looking for diamond exploration partners. The company has 100 sites ready for exploration across 14 of the 18 provinces in Angola.

Payment for Stake in Tawanas Kareevlei Project Delayed

Diamond exploration company Tawana Resources claimed Agio Diamonds Investments delayed its payment for a share in Tawanas South Africa Kareevlei diamond project and issued a summons for payment in the High Court of South Africa.

Mexivada’s Prospecting License in Republic of Congo Approved

Junior mining and exploration company Mexivadas diamond prospecting permit for Camp Socobois in the Republic of Congo (ROC) was approved. The permit covers a 780 square kilometer (310 square mile) area located between the company’s Malambani concession to the north and the Bitsandou concession to the south.

WAD Plans Alluvial Diamond Mine Launch in March

West African Diamonds is on target to begin production at its Guinea-based Bomboko alluvial diamond mine in March. The project spans nine alluvial diamond licenses adjacent to Guinea’s only diamond mine, Aredor, according to John Teeling, the companys chairman.

Econ Watch

For the week ending January 28, 2009

Jan. 28 Jan. 22 Chng.
$1 = Euro 0.760 0.770 -0.010
$1 = Rupee 48.9 49.2 -0.3
$1 = Israel Shekel 4.06 3.94 0.12
$1 = Rand 10.01 10.07 -0.06
$1 = Canadian Dollar 1.21 1.26 -0.05

Precious Metals
Gold $906.30 $856.40 $49.90
Platinum $973.00 $922.00 $51.00

Stock Indexes Jan. 28 Jan. 22 Chng.
BSE 9,236.28 8,813.84 422.44 4.79%
Dow Jones Avg. 8,149.01 8,122.80 26.21 0.32%
FTSE 4,190.11 4,052.23 137.88 3.40%
Hang Seng 13,154.43 12,657.99 496.44 3.92%
S & P 500 845.14 827.50 17.64 2.13%
Yahoo! Jewelry Index 536.81 522.96 13.85 2.65%

Rapaport TradeWire - Friday, February 13, 2009
News: Slight improvement in cutting center trading activity and market sentiment. Some dealers are buying select goods from distress sellers at very low cash prices. Consumer demand for jewelry is poor but bridal demand is holding up and supporting under the carat cert market. Rio Tinto 08 diamond revenue -18% to $840 mil., earnings -51% to $137 mil. Yakutia Russia 08 rough production flat at $2.6 bil., but polished +8% to $147 mil. U.S. Dec. polished imports -25% to $967 mil. and polished exports -20% to $805 mil. Belgium Jan. polished exports -26% to $558 mil. rough imports -44% to $461 mil. Dubai 08 gold imports +21% to 743 tons, exports +29% to 409 tons. South Africa ’08 diamond production -16% to 12.7 mil. cts. De Beers launches Forevermark Precious Collection in Hong Kong.

ANNOUNCEMENTS:

Rapaport Fair Trade Jewelry Conference at BASELWORLD

When: March 30, from 10:30 a.m. until 13:30 p.m.
Where: Montreal Hall, Basel Congress Center

The conference is free and open to everyone,
but space is limited so reserve now! fairtrade@diamonds.net

Topics at the conference will include:
• Fair Trade Jewelry Initiatives
• What is and what is not Fair Trade Jewelry
• The role of the private sector
• What’s in a name: Charitable, Conflict Free,
Ethical, Fair Trade, Fair Made, Development Jewelry
• Sourcing and Marketing Fair Trade Jewelry

Read Martin Rapaports latest article on the industry titled: Stall and Spin

RETAIL QUOTE:

“The industry is down 30 percent. The jewelry business has taken a big hit, because jewelry is one thing that does not have to be purchased, like food or gas. We havent had to adjust due to the economy, though, because of the custom manufacturing. We find that people who still want custom-made jewelry and have money to, purchase that. The general run-of-the-mill jewelry has slowed down, but custom work still stays busy."

-- Todd Murray

Co-owner, Murrays Jewelers, Muncie, Indiana

WORLD NEWS:

U.S. Jan. Dpt. Store Sales -6%, Feb. Looks as Grim

U.S. department store sales fell 6 percent in January 2009 to $16.1 billion, according to the latest government figures. The International Council of Shopping Centers (ICSC) reported that chain-store sales for the week ending February 7, 2009, remained very weak as consumers continued to reduce spending. ICSC reported that sales declined 1.8 percent during the first week of February. Michael P. Niemira, ICSCs chief economist, said, “For February, ICSC Research expects same-store sales will be down by one to two percent from the same month of the prior year.”

Nedbank Sues Alleged Embezzler Peykar for $36M

Nedbank of South Africa is suing diamond distributor Peykar International in U.S. court, claiming it embezzled more than $36 million in diamonds from Fine Diamonds, a debtor of Nedbanks. Nedbank is also seeking settlement of an $11 million debt from a loan it made to Diamond Trading Company (DTC) sightholder Festdiam Cutting Works, which went into liquidation in December 2008 as a result of its connection with Fine Diamonds and Peykar’s alleged fraud.

Diamond Execs Plan First Working Meeting for Generics Campaign

Diamond sector leaders will meet February 24 in London to continue planning an industry-wide generic marketing campaign. Participants will include representatives of the major mining companies — ALROSA, De Beers, BHP Billiton, Rio Tinto and Harry Winston Diamond Corp. The project gained steam in 2008, after De Beers announced it would cut back on its advertising spending.

Owner of 101-Carater Names it The Shizuka Diamond

The owner of the largest colorless diamond ever sold in Asia at auction has named the stone "The Shizuka Diamond." Christie’s sold the 101.27-carat, F color, VVS1 shield-shaped diamond in May 2008 for $6.2 million, or about $61,334 per carat. The buyers name was not revealed, but Christies reported that he purchased the diamond as a gift for his wife of 16 years. The stone was cut from a 460-carat rough into an unusual modified shield shape with 92 facets.

Rapaport Broadcast News

Trading comments and observations point to improved trading activity. Forevermark launches a new collection of fine diamond jewelry in Hong Kong. Diamond jewelry designer Donna Distefano kicks off a benefit for Women for Women International at her studio and discusses a special ensemble of jewelry she is designing for Jama Jandrokovics upcoming concert at Carnegie Hall. Judy Olsen, Distefanos marketing director, shares the companys new strategy that led to a VIP partnership with, and customized jewelry for, the New Jersey Devils.
http://www.diamonds.net/news/NewsItem.aspx?ArticleID=25275

DIAMOND STATS:

U.S. Dec. Imports, Exports

December $Mil Chng. YTD $Mil. Chng.
Polished Imports $967 -25% $18,994 5%
Polished Exports $805 -20% $14,300 26%
Net Imports $162 -43% $4,694 -31%

Rough Imports $29 -72% $752 -11%
Rough Exports $17 -76% $390 -21%
Net Imports $12 -61% $362 1%

Net Diamond Acct. $174 -45% $5,056 -29%

Belgium Jan. Imports, Exports

January $Mil Chng.
Polished Exports $558 -26%
Polished Imports $657 -13%
Net Exports ($98)

Rough Imports $461 -44%
Rough Exports $304 -68%
Net Imports $152

Net Diamond Acct. ($252)

South Africas 2008 Production -16%

South Africas diamond production fell 16.2 percent in 2008. Actual production figures were not provided in the report. Using Kimberley Process data for 2007, South Africa’s diamond production in 2008 fell to approximately 12.8 million carats.

WHOLESALE & RETAIL:

Fortunoff Auction Feb. 23

Fortunoff notified employees of its Westbury, New York, store it may be forced to eliminate jobs and close the location if the company is unable to find investors or a buyer. Lawyers for Fortunoff have proposed the sale of all of the companys assets, and have scheduled an auction for February 23, 2009, in New York. To object to this sale, the objection must be filed in writing and served to all parties involved in the case by February 20, 2009, at 4 p.m.

Renaissance Jewellery Profits -72%, Sales +32%

Renaissance Jewellerys net profits for the fiscal third quarter ending December 31, 2008, fell 72 percent to $669,836 (INR 32.5 million). Sales grew 32 percent to $48.9 million (INR 2.4 billion) while expenses rose 38 percent to $47.2 million (INR 2.3 billion). For the first nine months of the fiscal year, Renaissances profits dropped 38 percent to $3.4 million (INR 167.8 million) and net sales rose 20 percent to $111.9 million (INR 5.4 billion).

Collectors Universe 2Q Rev. -16%, Loss Grows to $11M

Collectors Universes second fiscal quarter revenues fell 16 percent to $8.2 million, and the company posted a net loss of $10.9 million. Revenues from its grading, authentication and related services declined only 10 percent to $8.1 million, of which $402,000 was revenue from Collectors jewelry-grading division, a drop of 25 percent. Product sales decreased 87 percent to $102,000.

Tiffany & Co. to Reduce Prices at Stores in Japan

Tiffany & Co. said it will cut prices for most of its products in Japan by an average of 9 percent. The cuts come on top of the price reductions, averaging 6 percent, that the company made in late November. The U.S. jewelry and silverware company will implement the reduction at all of its 57 Japanese outlets in response to slumping sales.

Michael C. Fina Adds Wedding Ring Boutique to Flagship Store

Michael C. Fina opened a wedding ring boutique at its Fifth Avenue flagship store in Manhattan. The new gallery showcases more than 1,000 rings from 25 designers, including Erica Courtney, MaeVona, Beaudry, Mark Patterson and Tacori. The Michael C. Fina store also features a working diamond cutting and polishing wheel, so that customers can "try their hand" at polishing a rough stone.

Love & Pride Adds a Diamond and Platinum Collection for a Sour Economy

Love and Pride creator and diamond jewelry designer Udi Behr launched the Revolution of Love, a new "value-driven" diamond and platinum collection. Behr said that the depressed economy has changed the game for designers and retailers. The collection uses 585 platinum — an alloy of 58.5 percent platinum and 41.5 percent cobalt — with natural clarity-enhanced diamonds. Price points for engagement rings begin at $699.

World Gold Council Survey Finds Most Women See Long-Term Value in the Metal

The results of a jewelry survey by the World Gold Council suggested that Valentines Day is an occasion when women like to receive gold jewelry. The survey, conducted by GfK, polled 7,500 female respondents from India, China, Saudi Arabia, Italy, Turkey and the U.S. The women surveyed overwhelmingly cited gold jewelry as being "everlasting." The World Gold Council advised the industry to use these results in driving Valentines sales by targeting men for gift purchases.

De Beers, Brides Magazine Partner on Duo Diamond Ring Launch

De Beers Diamond Jewellers debuted Duo, an interlaced diamond engagement ring and wedding band, at stores on February 10, 2009. The Duo diamond ring design incorporates what De Beers calls an "intimate twist" of two bands — tiny diamonds on a smooth platinum ring and a central round stone. Duo will be featured in the March/April issue of Brides and coincide with a contest to give away a Duo ring valued at $18,000.

Police Arrest Twins in KaDeWe Jewelry Robbery

Police arrested 27-year-old twins in connection with a Berlin jewel heist in which the robbers are believed to have snatched valuables worth $6.5 million. None of the jewelry and watches stolen from KaDeWe, Berlins biggest department store, was recovered, but "various pieces of evidence" were found, police said.

DMIA Says Adopt Prudent, Conservative Business Practices

In a letter to the trade the Diamond Manufacutures & Importers Association of America (DMIA) urged the exercise of diligence and self-discipline in re-evaluating memo practices and, in light of current conditions, the implementation of sounder and more cautious and conservative credit practices. The DMIA and the Jewelers Board of Trade (JBT) is developing a system of comprehensive credit reporting for members of the diamond industry. A particular focus is the creation of an electronic data exchange for the reporting and disseminating of credit information relative to memo, sales and receivables. As a precursor to this system, it is critical for members of the Association to join the JBT credit interchange and to supply accurate and timely information. DMIA reminded traders to use the Uniform Commercial Code (UCC) form for memo transactions.

"We must anticipate that in the coming months we will be forced to reduce the reliance on bank facilities commensurate to reduced business activity. All DMIA members should undertake a careful evaluation of all current business and credit practices. We must evaluate every customer, old and new alike, carefully and objectively." Dont rely solely on customer payment histories, resist the temptation to adopt more aggressive sales policies and more lenient credit policies. "We need to tighten our belts and refrain from practices which only serve to magnify the extent of our exposure to potential losses."

WHO IS NEWS:

Ganz Urges Manufacturers to Maintain Balance

Moti Ganz, president of the International Diamond Manufacturers Association (IDMA), told diamond manufacturers to balance the need to retain a viable labor force with the ability to continue serving long-term clients. "It has been our experience from previous downturns that when workers are laid off they leave the industry and will not come back when the tide turns," he said. "We suddenly live in a new world where banks face shortages of funds. The diamond industry remains attractive to the banking system, but we have to fight to keep our preferred position among many other borrowers who are seeking funding. IDMA is consulting closely with the commercial banks and we feel confident that they understand and appreciate the current situation prevailing in the industry."

Ganz added that the industry must join forces,and banks must recognize that it is the manufacturing sector that will lead the industry to stability and renewed growth. "Our members are displaying great resilience and a strong commitment to all our stakeholders. When the crisis is behind us, what will be remembered is the role played by our members in all the manufacturing countries around the world."

Paz Urges Trade Fairs to Support Traders

Avi Paz, president of the World Federation of Diamond Bourses (WFDB) urged international trade-fair organizers to better support the marketing efforts of firms that exhibit loose diamonds at their shows. Paz told show organizers to “go the extra mile” to subsidize the participation of diamond companies that would otherwise opt out of future trade shows due to reduced marketing budgets.

Gemfields Appoints Harebottle as CEO

Gemfields Resources appointed Ian Timothy Harebottle as its chief executive officer (CEO), effective immediately. Harebottle joined the company that became TanzaniteOne as operations director in September 2001. He was appointed CEO of TanzaniteOne in April 2005 and served in that capacity until February 2008.

Rio Tintos New Chairman Quits

The new chairman of Rio Tinto has quit following a boardroom row over a multibillion-dollar fundraiser likely to involve one of its main customers, Chinese firm Chinalco. Jim Leng, who took up the post four weeks ago, said he had resigned because of a "difference of opinion" over how to reduce the mining groups $39 billion debt.

Esau to Chair Kimberley Process for Namibia

Bernhard Esau, Namibias deputy mining and energy minister, was appointed by the mining minister to chair the Kimberley Process Certificate Scheme for 2009. Namibia took over as chair of the Kimberley Process in 2009. The appointment sidelined to Kennedy Hamutenya, the countrys longtime diamond commissioner.

GENERAL NEWS:

Responsible Jewellery Council Welcomes Beaverbrooks Jewelers

The Responsible Jewellery Council — the trade name of the Council for Responsible Jewellery Practices — announced its newest member, Beaverbrooks the Jewellers, bringing its total membership across the supply chain to 85. Beaverbrooks the Jewellers employs more than 700 people and has 60 stores in the U.K.

100 AGS Retailers Will be Reimbursed for Conclave Hotel Stay

The American Gem Society (AGS) plans to reimburse 100 qualified retailers for the cost of their hotel rooms during the groups upcoming Conclave, which runs April 1 to 4, 2009, at the Hyatt Regency Chicago. The first 100 AGS member retailers who apply will receive passport-style booklets which must be signed by six vendors during the Supplier Showcase, held on April 1 and 2, and then submitted to AGS after the Conclave along with their hotel bills for reimbursement.

DIAMOND MINING NEWS

Stephen Lussiers Presentation at the Mining Indaba 2009

Stephen Lussier, executive director of De Beers, delivered the keynote address at the Mining Indaba in Cape Town on February 10, 2009. In his speech, Lussier outlined the bold actions that De Beers has taken to weather the current global economic downturn. Read Lussier’s presentation:
http://www.diamonds.net/news/Files/Docs/2009/2/10/SCLIndabapresentation1.pdf

Angola’s Catoca Mine to Reduce Production

The Catoca mine in Angola is scaling back production in 2009 due to the drop in demand for rough diamonds. The move follows earlier reports that the mine’s largest foreign shareholder, ALROSA, will stop exploration work at the site until the end of the year. Catoca is 32.8 percent owned by ALROSA, and is responsible for about 70 percent of Angola’s total production.

Firestone Suspends Operations at Bonte Koe

Firestone Diamonds suspended operations at its Bonte Koe plant on the Buffels River in South Africa, after De Beers Consolidated Mines terminated its toll treatment joint-venture agreement with Firestone. De Beers cited a decrease in revenue from diamonds recovered and an increase in mining costs as its reasons for discontinuing the agreement.

DiamondCorp Granted Mining Right For Lace Mine

DiamondCorp was granted the mining right to the Lace diamond mine in South Africa for more than 20 years. DiamondCorp owns a 74 percent stake in the Lace mine and, together with its two Black Economic Empowerment partners, Shanduka Resources and Sphere Investments, has been redeveloping the site.

Tahera Applies for Suspension of Shares

Tahera Diamond Corporation has applied for the voluntary suspension of trading of its shares on the Toronto Stock Exchange (TSX). The embattled mining company stressed that any plan for restructuring or liquidation would not result in any return for Tahera shareholders, and therefore the stock should be suspended from trading “for the time being.”

Namdeb Secures Overdraft Protection

Namibia has provided a $32.9 million (NAD 325 million) security to Namdeb to renew its $65.9 million (NAD 650 million) revolving overdraft facility with local banks. Namibia and De Beers each holds a 50 percent share in Namdeb. It is still in discussion with the banks, but Namdeb reported that some have already approved the of the companys overdraft.

ECON WATCH:

Week ending February 12, 2009

Feb.5 Feb.5 Chng.
$1 = Euro 0.780 0.776 0.004
$1 = Rupee 48.9 48.8 0.1
$1 = Israel Shekel 4.05 4.05 0.00
$1 = Rand 9.99 9.83 0.16
$1 = Canadian Dollar 1.24 1.23 0.01

Precious Metals
Gold $945.50 $914.90 $30.60
Platinum $1,074.00 $974.00 $100.00

Stock Indexes Feb.5 Feb.5 Chng.
BSE 9,465.83 9,090.88 374.95 4.12%
Dow Jones Avg. 7,923.76 8,063.07 -139.31 -1.73%
FTSE 4,202.24 4,228.93 -26.69 -0.63%
Hang Seng 13,228.30 13,178.90 49.40 0.37%
S & P 500 835.19 845.85 -10.66 -1.26%
Yahoo! Jewelry Index 518.08 540.97 -22.89 -4.23%

USA
Birks & Mayors $0.24 $0.33 -$0.09 -27.27%
Blue Nile $23.00 $23.12 -$0.12 -0.52%
Charles & Colvard $0.40 $0.34 $0.06 17.65%
Collectors Universe $3.68 $3.77 -$0.09 -2.39%
DGSE Companies, Inc. $1.43 $1.61 -$0.18 -11.18%
Fuqi International $4.61 $4.78 -$0.17 -3.56%
JCPenney $15.81 $15.07 $0.74 4.91%
Kohls $36.54 $38.20 -$1.66 -4.35%
Lazare Kaplan $3.65 $3.58 $0.07 1.96%
LJ International $0.58 $0.70 -$0.12 -17.14%
Macys $8.71 $8.75 -$0.04 -0.46%
Man Sang $1.50 $1.57 -$0.07 -4.46%
Movado Group $7.28 $7.87 -$0.59 -7.50%
Nordstrom $13.77 $13.05 $0.72 5.52%
Saks $1.95 $2.40 -$0.45 -18.75%
Signet $7.99 $6.27 $1.72 27.43%
Sothebys $8.73 $8.46 $0.27 3.19%
Tiffany $20.57 $21.74 -$1.17 -5.38%
Wal-Mart $48.13 $48.56 -$0.43 -0.89%
Zale $1.40 $1.37 $0.03 2.19%

EUROPE
Bulgari €3.36 €3.24 €0.12 3.70%
Bijou Brigitte €80.50 €78.24 €2.26 2.89%
Esa €2.99 €3.15 -€0.16 -5.08%
Golay-Buchel CHF 1,550.00 CHF 1,574.00 -CHF 24.00 -1.52%
LVMH €48.14 €44.80 €3.34 7.46%
Pinault P-R SA €42.28 €41.31 €0.97 2.35%
Richemont SA CHF 17.96 CHF 17.70 CHF 0.26 1.47%
Swatch Group CHF 17.96 CHF 135.70 -CHF 117.74 -86.76%
Theo Fennell (pence) 12.00 12.40 -€0.40 -3.23%

INDIA (rupee)
Classic Diamond 8.77 8.24 0.53 6.43%
Gitanjali Gems 50.70 45.50 5.20 11.43%
Rajesh Exports 25.10 24.00 1.10 4.58%
Ren. Jewellery 21.25 20.60 0.65 3.16%
Su-Raj Diamonds 22.70 20.85 1.85 8.87%
Titan 853.45 784.60 68.85 8.78%
Zodiac JRD 10.30 10.40 -0.10 -0.96%
Suashish Diamonds 133.00 135.00 -2.00 -1.48%

NEW ZEALAND
Michael Hill NZD 0.52 NZD 0.53 -NZD 0.01 -1.89%

MINING STOCKS
(pence unless noted)
USA
Anglo American $9.62 $10.30 -$0.68 -6.60%
CANADA
Archangel CAD 0.08 CAD 0.09 -CAD 0.01 -11.11%
Harry Winston CAD 4.53 CAD 4.88 -CAD 0.35 -7.17%
Mountain Province CAD 1.05 CAD 1.00 CAD 0.05 5.00%
Peregrine Diamonds CAD 0.57 CAD 0.59 -CAD 0.02 -3.39%
Rockwell Diamonds CAD 0.07 CAD 0.07 CAD 0.00 0.00%
Shore Gold CAD 0.32 CAD 0.30 CAD 0.02 6.67%
Stornoway Diamond CAD 0.12 CAD 0.13 -CAD 0.01 -7.69%
True North Gems CAD 0.10 CAD 0.10 CAD 0.00 0.00%
UK (pence)
African Diamonds 27.0 30.4 -3.4 -11.04%
BHP Billiton 1,276.0 1,285.0 -9.0 -0.70%
Firestone Diamonds 15.3 14.4 0.9 6.34%
Gem Diamonds 211.8 215.0 -3.2 -1.51%
Mano River 2.8 2.3 0.5 21.74%
Mwana Africa 3.8 4.0 -0.2 -6.02%
Namakwa Diamonds 28.0

Rapaport TradeWire - Friday, February 20, 2009
News: Market conditions remain slow despite U.S. Valentine’s Day. Independent retailers discounting heavily as consumers restrict purchases to bargain prices. Blue Nile 4Q sales -23% to $86 mil. and profits -53% to $3.5 mil. GIA reduces U.S. workforce by 9% and cuts management salaries up to 20%. KPS Capital Partners to buy Lenox pending bankruptcy court approval. Christies 2008 jewelry sales -3% to $384 mil. Israel Jan. polished diamond exports -59% to $306 mil. and total diamond imports -77% to $142 mil. India Jan. rough imports -76% to $217 mil. and polished diamond exports -41% to $761 mil. Chinas Jan. jewelry sales +29%. Suashish Diamonds 3Q sales -59% to $30 mil. with net loss of $6 mil. Big box retailer PPR 2008 sales +6% to $26 bil. and profits flat at $1.2 bil.

ANNOUNCEMENTS:

Martin Rapaport “State of the Diamond Industry”
BASELWORLD Watch and Jewellery Show

When: March 30
Presentation 1: 8:00-10:00
Presentation 2: 14:00-16:00
Where: Basel Congress Center, Montreal Hall

To reserve a space email conference@diamonds.net

Rapaport Fair Trade Jewelry Conference at BASELWORLD

When: March 30, from 10:30 until 13:30
Where: Montreal Hall, Basel Congress Center

The conference is free and open to everyone,
but space is limited so reserve now! fairtrade@diamonds.net

Topics at the conference will include:
• Fair Trade Jewelry Initiatives
• What is and what is not Fair Trade Jewelry
• The role of the private sector
• What’s in a name: Charitable, Conflict Free,
Ethical, Fair Trade, Fair Made, Development Jewelry
• Sourcing and Marketing Fair Trade Jewelry

RETAIL QUOTE:

"Nationally, 80 percent of jewelers are down, but Im fine. We did more sales than last Christmas, but people spent less. We had to work a lot harder to make the money. Well put the buckle back on your kids watch, and you go out the door happy. It makes us a little recession-proof. Everything from soup to nuts. We can go from pencil drawings to finished sketches. Its going to be a leaner year, but were swamped with work right now."

---Goldsmith Kurt Brazeau

Murduffs Jewelry, Florence, Massachusetts

WORLD NEWS:

Indias 4Q Gold Demand +84%

Gold demand in India increased by 84 percent during the fourth quarter of 2008, on the back of a 107 percent jump in jewelry consumption, according to the World Gold Council. In its report on gold-demand trends, the group said that global demand was up by 26 percent to $26.5 billion, and that investment demand rose 182 percent. Demand for gold was mixed in the U.S., however, as jewelry demand dropped 35 percent, but buying of gold bars and coins grew 370 percent.

China’s Jan. Jewelry Sales +29%

China’s retail jewelry sales grew 29 percent in January 2009 compared with one year ago. Across all sales categories, the 1,000 major Chinese retailers surveyed for the report saw their sales rise 25 percent during the month. Jewelry was among the strongest growth categories in January, along with food, which grew 29 percent, and cigarettes and alcohol, up 47 percent.

Japans Jan. Jewelry Sales -19%

Japans department store sales fell 9.1 percent year-on-year to $6.6 billion in January. It was the 11th consecutive monthly drop in department store sales and the steepest drop ever for the month of January. Sluggish sales of clothing, down 12 percent, and of expensive items such as jewelry, decreasing 19 percent, were a key factor in the department store sales plunge.

Reserve Bank of India Relaxes Terms for Diamond Dollar Accounts

In order to help the troubled diamond industry, the Reserve Bank of India (RBI) relaxed the provisions for opening the dollar accounts that are used by diamond exporters for importing rough stones. RBI has delegated the powers of opening such accounts, called diamond dollar accounts (DDA), to permitted authorized dealers, a change from the current practice of granting the accounts on a case-by-case basis.

Indias Fiscal Budget Extends 2% Finance Credit Another Six Months

The interim budget for fiscal year 2009-2010, presented to Indias Parliament, extended the period of financing for exporters by six months, through September 2009. The interest subsidy of 2 percent on pre- and post-shipment credit applies to gems and jewelry.

Thailands Gemstone Industry Faces Slowdown

Thailands diamond and gemstone trade projects a 20 to 30 percent drop in demand for stones from Thailand during 2009. The biggest drop in demand so far has been from the U.S., with a 20 percent decline, followed by Europe, with a 15 percent drop. Asian markets are more resilient, with consumers in Japan consuming 10 percent fewer diamonds; only India and China may experience increases in demand.

Consumers, Economists Fear Deeper Pain to Come for U.S.

The Reuters/University of Michigan consumer survey registered a preliminary February consumer confidence index of 56.2 points, five points lower than Januarys. Consumer expectations for the future of the economy registered their lowest reading since May 1980, at 49.1 points. In a separate report from the Federal Reserve Bank of Philadelphia, economists surveyed said they expect a severe economic contraction during the first half, followed by gradual improvement in the fourth quarter and into early 2010.

Rapaport Broadcast News

Zales brings cheers and happy tears to Times Square, with one lucky couple winning a $22,000 Celebration Diamond ring. Diamond Trading Company (DTC) sightholder Stuller shows retailers how its new electronic tools help sell diamonds at the counter. Harry Winston gives us a sneak peak of new inspirational jewelry pieces that you can watch for on the red carpet at the 81st Annual Academy Awards in Los Angeles on February 22, 2009.

http://www.diamonds.net/news/NewsItem.aspx?ArticleID=25366

DIAMOND STATS:

Belgium Imports / Exports Jan. 2009 Chng.
$mil
Polished Exports $558 -39%
Polished Imports $656 -38%
Net Exports ($98) 35%

Rough Imports $461 -56%
Rough Exports $304 -70%
Net Import $156 482%

Net Diamond Acct. ($254) -42%

India Imports / Exports Jan. 2009 Chng.
$mil
Polished Exports $761 -41%
Polished Imports $482 -8%
Net Export $279 -64%

Rough Imports $217 -76%
Rough Exports $59 32%
Net Import $158 -81%

Net Diamond Acct. $121

WHOLESALE & RETAIL:

PPR 2008 Sales +6%, Profits Flat

Big-box retailer PPR reported a 5.8 percent increase in sales during 2008 to $25.7 billion (EUR 20.2 billion) and that its profits were basically flat at $1.2 billion (EUR 924 million). The Paris-based PPR reported that its international sales grew during the year to represent 61 percent of total revenues, and that online sales rose 10 percent during the year.

Blue Nile 4Q Sales -23%, FY08 Sales -8% with Profits -34%

Blue Niles fourth-quarter sales fell 23 percent to $85.8 million. Net income dropped 53 percent to $3.5 million. Blue Niles full-fiscal-year sales decreased 8 percent to $295.3 million, and net income for 2008 was down 34 percent to $11.6 million. Cash and cash equivalents at the end of the fiscal year stood at $54.5 million.

Suashish Diamonds 3Q Sales -59%, Registers Loss

Suashish Diamonds net sales from operations fell 59 percent in the second fiscal quarter ending December 31, 2008, to $29.6 million (INR 1.4 billion). The diamond manufacturer and jeweler recorded a net loss of $6.3 million (INR 304.3 million) for the period, after posting a profit of $6 million (INR 290.9 million) one year ago.

U.S. Online Jan. Jewelry Sales -15%

Online jewelry sales in the U.S. fell 15 percent in January, according to comScores latest figures. Of 14 categories comScore regularly measures for sales, jewelry was fourth from the bottom inching out office supplies which dropped 20 percent. Sales of sports and fitness items rose 42 percent --the best performing category-- and the worst performer was computer software with a sales drop of 58 percent. Overall online spending rose 2 percent during the month to $10.9 billion.

Jewelmak Seeks Return of Merchandise from Fortunoff

Jewelmak filed a complaint in U.S. Bankruptcy Court against Fortunoff, which is currently in Chapter 11 protection. Jewelmak is seeking return of its merchandise and an injunction against any sale of its merchandise in Fortunoffs possession. Jewelmak told the court that its agreement with Fortunoff was specifically for supplying goods to Lord & Taylor stores. In response, Fortunoff stated that this specification was not explicitly stated. Fortunoff further argued that it would not be cost-effective to track down the merchandise in question, as some products are already in 11 Lord & Taylor stores and some are being held, among goods from many other jewelry suppliers, at a Fortunoffs facility in Uniondale, New York.

Fortunoff Lays off 300, Faces Lawsuit

Fortunoff has dramatically scaled down its corporate operations, laying off about 300 of its corporate staff and triggering a class-action lawsuit by some of the laid-off workers. Affected workers said they were not given severance packages, and several criticized the companys handling of the cuts as chaotic and confusing, with little information provided about options for health care.

NovaGem Forces R. Meyers Jewelers into Bankruptcy

Mountain Brook, Alabama, retailer R. Myers Jewelers has been thrown into involuntary bankruptcy by NovaGem of New York. NovaGem cited an unpaid balance for goods in documents filed with U.S. Bankruptcy Court in Birmingham, Alabama. NovaGem said in its bankruptcy filing that R. Myers owes it $138,000. A creditor can force a company into bankruptcy if it is owed more than $10,000.

Lenox Finds a Buyer

The Lenox brand was bought at auction by a newly formed subsidiary of KPS Capital Partners. KPS stated that it will fund the purchase and liquidity needs of Lenox without outside financing. The auction and sale are subject to final approval by the U.S. Bankruptcy Court. Lenox filed for Chapter 11 bankruptcy protection in New York in December 2008.

Omega Diamonds Suspected of Multibillion-Euro Fraud

Police in Belgium are investigating an alleged multibillion-Euro fraud involving Omega Diamonds. Representatives from the company purportedly earned billions of Euros by buying diamonds on the black market in Angola and the Democratic Republic of the Congo (DRC). They then traded the stones to companies in Dubai, Tel Aviv and Geneva. The full extent of the scheme is not yet known, and police are still seeking conclusive evidence in the case.

Buffett Buys $250M of Tiffany Debt

Warren Buffetts Berkshire Hathaway agreed to buy $250 million of debt from Tiffany, in the form of bond. The bonds will yield 10 percent a year, with half the debt scheduled to mature in 2017 and the remainder two years later. Tiffany said it would use the funds to “refinance existing indebtedness and for general corporate purposes.”

Gitanjali, Gemapi to Establish Polishing Plant in Brazil

The Gitanjali Group, in partnership with Brazil-based Gema do Piauí Mineração (Gemapi), will establish Brazils first diamond polishing plant in the town of Cabo de Santo Agostinho in the state of Pernambuco. The investment amounts to $9.7 million. The new plant will employ 1,500 local workers, who will be trained by Indian specialists. The plant will have the capacity to polish up to 150,000 carats per month.

Tanishq Launches Luxury Diamond Jewelry Stores

Tanishq, a subsidiary of Titan Industries, has launched a new high-end diamond jewelry retail chain to complement its range of watch and jewelry lines. The new store, called Zoya, is the result of a strategic decision by Tanishq to offer "a premium and differential experience in the luxury jewelry space."

Bazaarvoice Adds Ratings, Reviews Function to Ice.com

Online diamond retailer Ice.com added the Bazaarvoice social commerce platform to its website, enabling Ice.com customers to rate and comment on products.

Gemfields Launches Kagem Emerald Collection

In its ongoing effort to increase market share across the gemstone world, Gemfields Resources launched an emerald jewelry collection using traceable emeralds from the Kagem mine in Zambia. Gemfields recently established a cutting and polishing facility in Jaipur, India, to produce the stones. The company holds an exclusive 15-year license to use the Fabergé brand name for colored gemstones.

Online Diamond Firms in China Sign Consumer Protection Pact

The Gems and Jewelry Trade Association of China (GAC) published a self-regulation pact for the domestic online diamond trade in an attempt to protect consumer rights. The pact, dubbed "The Self-Discipline Pact for Chinas e-Trade on Jewelry (Diamond)," was jointly formed by the GAC and nine major online jewelry companies. In 2008, Chinas online diamond trade stood at $146 million, and the figure is expected to double in 2009, according to the GAC.

WHO IS NEWS:

Rio Tinto Appoints Cox to Diamond Post

Rio Tinto appointed Bruce Cox as managing director of Rio Tinto Diamonds. Cox will be based in London and will be responsible for all of Rio Tintos diamond mining operations, which include the Argyle mine in Australia, the Diavik mine in Canada, the Murowa mine in Zimbabwe and the Bunder project in India. He will also head Rio Tintos Antwerp-based sales and marketing activities.

De Beers Diamond Jewellers Promotes Belkadi to U.S. CEO

De Beers Diamond Jewellers named Hamida Belkadi as its chief executive officer (CEO) for the U.S. Belkadi joined De Beers in March 2005 and has been instrumental in the establishment of De Beers retail jewelry stores in the U.S. She has been leading the companys U.S. operations as chief operating officer (COO) since July 1, 2007.

Luxury Retail Expert Danziger to Deliver Keynote at Atlanta Jewelry Show

The Atlanta Jewelry Show, which runs February 28 through March 2, 2009, at the Cobb Galleria Center, will feature keynote speaker Pam Danziger, president of Unity Marketing. Danziger will discuss how current trends are transforming the market for luxury goods in general, and how independent jewelers can use those trends to transform the shopping experience in their stores.

GENERAL NEWS:

GIA Announces Further Workforce-Reduction Measures

The Gemological Institute of America (GIA) carried out a second resource action this week, following an 11 percent workforce reduction in December 2008. GIA notified 103 employees, or 9 percent of its workforce in the U.S., that their jobs have been cut. Those affected were given 60 days of paid leave, and will get two week severance and an additional week of pay for every completed year of service. GIA will provide career counseling services to those employees. Additionally, all GIA management took up to a 20 percent reduction in salary, and those on hourly schedules will experience a 20 percent reduction in their work hours.

New Fund Projects Investment Opportunity in Colored Diamonds

Codiam Fund, which invests in high-end polished colored diamonds, reported a 9 percent increase in its net asset value in the three months of operation since it launched in September. The fund only buys colored diamonds larger than 1 carat, in the top colors, including red, intense purple, intense green, purple red, purplish-red, bluish-green, greenish-blue, pink, blue, orange and yellow.

Istanbul to Host CIBJO Congress 2009 in May

The World Jewellery Confederation (CIBJO) will host its 2009 congress in Istanbul, Turkey, from May 3 to 5 at the Çirağan Palace Kempinski on the banks of the Bosporus. CIBJO plans to roll out its World Jewellery Confederation Education Foundation (WJCEF) at the event. WJCEF is a body created by CIBJO in cooperation with the UN to create and deliver training programs on the principles and practices of corporate social responsibility (CSR) for all sectors of the jewelry industry.

Myanmar Opens New Gemstone Museum

Myanmars largest gemstone museum opened to the public on February 12, 2009. The museum is three stories tall and houses some of the nations most famous gemstones, jade, pearls and jewelry. Items on display include a natural pearl that reportedly weighs 845 carats, and a ruby said to weigh 21,450 carats. If the ruby is in fact that size, it would supplant the record currently held by the 125West Ruby, certified by the Gemological Institute of America (GIA) at 18,696 carats.

Georgia Border Police Detain Two on Diamond, Gold Smuggling Charge

Shalva Kamushadze and Mirian Gamqrelidze were detained at the Sarpi customs terminal, on the Turkish border with Georgia, on charges of smuggling over 9 kilograms (19.8 pounds) of gold, 8 kilograms (17.6 pounds) of silver and some diamonds from Turkey into Georgia. The total value of the smuggled precious metals exceeds $597,000. If the charges are proven, the detainees will be sentenced to 5 to 7 years in prison.

AGS Labs Introduces Light Performance Report for Royal Asscher Cut

AGS Laboratories will introduce a Light Performance Diamond Quality Report for the Royal Asscher Cut diamond in the U.S. AGS has performed extensive research on the proprietary diamond in order to determine a grading system for it based on AGSs Light Performance Cut Grade methodology. The Royal Asscher Cut is protected by a worldwide patent. Royal Asscher’s own laboratory in Amsterdam grades each diamond, and laser-inscribes each with the company logo and an individual identification number before sending it to AGS.

Responsible Jewellery Council Joins Global Compact

The Responsible Jewellery Council (RJC) formally became a participant in the UN Global Compact. The Council promised to publicly advocate for the Global Compact and its principles, and to report annually on the progress it has made in implementing those principles among its members.

Gubelin Gem Lab Schedules Off-Premise Testing for Hong Kong Show

The Gübelin Gem Lab reminded clients that it would offer an off-premise testing facility in Hong Kong in connection with the Hong Kong March Show, which runs March 4 to 8, 2009. Gubelin Gem Lab will run testing services March 3 to 9, from 9 a.m. to 6:30 p.m. It asks those interested in its services to arrange an appointment ahead of time.

DIAMOND MINING NEWS:

Jindal Steel & Power to Invest $20M in Diamond Mining

Jindal Steel and Power will invest up to $20 million in the next 12 months in diamond mining in the Democratic Republic of the Congo (DRC). The Navin Jindal-led firm, with primary interests in the steel and power sector, also said it would start mining iron ore from its mines in Bolivia in the second half of the year.

Petra Acquires 75% Stake in Tanzanias Williamson Mine

Petra Diamonds has acquired a 75 percent stake in the Williamson diamond mine in Tanzania from Cheviot Holdings Limited, a subsidiary of De Beers. Petra agreed to buy the stake in September 2008, funding the deal from its internal cash resources. Tanzanias government will retain its 25 percent stake in the mine.

Firestone, ADP to Build Tailings Plant

Firestone Diamonds and ADP Projects were named by Debswana as the preferred bidders to build a tailings retreatment plant at the Jwaneng mine in Botswana. Firestone will finance and operate the plant, while ADP will be responsible for the plant’s design and construction. Firestone expects the contract negotiations with Debswana to be concluded and signed in the third quarter of 2009.

Peregrine Diamonds Doubles Prospecting Rights Coverage at Baffin Island

Peregrine Diamonds was granted approval for 86 new prospecting permits, totaling 3.2 million acres, bordering the junior mining companys Chidliak project on Baffin Island. Peregrine discovered three diamond-bearing kimberlites at Chidliak in 2008, and already has a $9.2 million exploration program planned this year for Chidliak, to be funded by BHP Billiton.

Stornoway Updates Status of Aviat Project

Stornoway Diamond Corporation and Hunter Exploration Group reported that they have recovered 89.55 carats of diamonds from processing the first 43 metric tons (47 tons) of an approximately 200-metric-ton (220-ton) sample of kimberlite from their Aviat Project in Nunavut, Canada. The largest diamond recovered from this first sample is a 0.81-carat grey fragment. A conceptual study of Aviat concluded that, based upon the drilling undertaken to date, there were an estimated 12.4 million to 16 million metric tons (13.7 million to 17.6 million tons) of kimberlite material within four separately distinguishable kimberlite sheets. Once final results of the 200-metric-ton sample are known, Stornoway expects to conduct a market valuation of the parcel. This will be undertaken once the world rough diamond market has stabilized.

Mexivada Begins Diamond Mining Near Koidu

Mexivada reported that it has begun mining diamonds near Koidu Town, Sierra Leone. Mexivadas partners have received a second artisanal mining license for diamond mining, which covers a one-acre site adjoining its first licensed area. So far the channel has yielded white, green and yellowish diamonds of up to 14 carats in the area downstream from Mexivadas present operation.