Rapaport TradeWire - Friday, August 21, 2009
News: U.S. demand weak as consumers continue to hold back spending due to fears about economy and job security. Polished markets quiet during summer vacation. Lots of opportunity and risk in rough markets as Russia plans to sell over $2 billion during second half 2009. Markets uncertain about De Beers pricing and supplies prior to next week’s sight. Rio Tinto 1H diamond revenues -68% to $184 mil., net loss of $56 mil. vs. profit of $108 mil. ALROSA posts net loss of $1 bil. for 2008, vs. profit of $505 mil. Swatch 1H sales -17% to $2.3 bil., net income -28% to $281 mil. Saks 2Q sales -15% to $562 mil., net loss of $55 mil., vs. loss of $33 mil. JCPenney 2Q sales -8% to $4 bil., net loss of $1 mil. vs. profit of $117 mil. U.S. jewelry price index +1% in July.

ANNOUNCEMENTS:

RAPAPORT INTERNATIONAL DIAMOND CONFERENCE - 2009
Sept. 10, New York Times Center – 8:30 a.m. to 5:00 p.m.

Conference Topic — "New Realities"

The New Economy and the Jewelry Industry
From Rough to Retail
Des Kilalea, Royal Bank of Canada
Christopher Ellis, Consensus Advisors

New Consumer Markets: The India Story
C.K. Venkataraman, COO Tanishq - Titan Industries
Mehul Choksi, Chairman Gitanjali Group

Riding the Wave of Change
Martin Rapaport, Chairman Rapaport Group

The Big Stone Market: The 47th Street Perspective
Ronald Friedman, Pres. DMIA
Moshe Mosbacher, Pres. NY DDC
And other leading NY diamantaires

Human Rights and the Diamond Industry: Panel Discussion
What can and should we do?

Ian Smillie, DDI
Eli Izhakoff, WDC
Cecilia Gardner, JVC
Brad Brooks Rubin, U.S. State Dept.
Human Rights Watch

The conference will be held at the new
New York Times Center, 242 West 41 St.

Register now!
or call +1-702-893-9400, or email idc@diamonds.net.
Registration is $249
A VIP luncheon is available for an extra charge
Special hotel reservations available from the Hilton Times Square

Retail Quote:

"The consumer is not as enthusiastically anticipating a recovery as [Wall Street] has been. Doubts about the consumers willingness to spend are calling into question the rate of the economys recovery."

Stephen Lieber
Chief investment officer
Alpine Woods Investments

RETAIL & WHOLESALE:

There were widespread declines in consumer demand for gold jewelry during the second quarter, reflected by a 22 percent drop from one year ago. Global gold demand fell 9 percent by weight and 6 percent by value to $21.3 billion. However, investment demand for gold remained strong, up 46 percent, according to the World Gold Council. Demand in India fell 38 percent, while gold demand in China rose 9 percent. Total demand for gold fell 18 percent in the Middle East, with jewelry demand down by 17 percent. In the U.S., the demand rose 10 percent, but jewelry demand was down 19 percent.

The consumer price index (CPI) for jewelry in the U.S. during July rose 0.6 percent year-on-year to 156.61 points. In contrast, the CPI for all consumer products fell 1.9 percent to 214.47 points. While the increase in the jewelry index was minimal, the figure was up 1 percent from June and has now held above 150 points for 18 consecutive months. Prior to its current run, the index had not reached 150 points since February 1998.

The Reuters/University of Michigan index of U.S. consumer sentiment fell in August, souring the optimism that has boosted Wall Street in recent weeks. The index suggested that consumers remain too worried about job security to go on spending sprees. The affluent in the U.S. feel better about the economy, though.

Unity Marketing warned the industrys marketers, however, not to ignore the fundamental changes taking place in wealthy consumers buying habits. Unitys Luxury Consumption Index (LCI) rose 18.6 points in the second quarter and affluents spent 11 percent more on products and services. But consumers expectations of future luxury spending continued to lag behind other indicators and their basic attitudes toward consumption have changed in that they demand better value, quality and price compared with pre-recession times.

Weekly chain store sales in the U.S. for the week that ended August 15, were 0.6 percent lower than one year ago. U.S. department store sales fell 12 percent to $15 billion in July. Japan reported a similar percentage drop for the month, with total sales of $6.5 billion.

Financial results from the large retailers continue to show weak consumer spending. J.C. Penneys second-quarter sales fell 8 percent to $3.9 billion, while the retailers same-store sales fell 9.5 percent and it recorded a loss of $1 million, compared with profits of $117 million one year ago.

BJs Wholesale Club reported weak jewelry sales in the second quarter as total sales fell 5 percent to $2.5 billion and same-store sales fell 8 percent. Net income fell 4 percent to $35 million.

High-end retailer Saks reported that its sales fell 15 percent in the second quarter to $562 million, its same-store sales fell 16 percent and its net loss grew to $54.5 million from $32.7 million.

ShopNBCs second-quarter sales fell 16 percent to $119.3 million, with jewelry accounting for 28 percent of the product mix, which was down from 39 percent one year ago. ShopNBC reported a net loss of $8.2 million, an improvement over a loss of $15.8 million.

Swatch Groups first-half sales declined 17 percent to $2.3 billion and its net income fell 28 percent to $281 million.

Man Sang Holdings first-quarter revenues dropped 46 percent to $6.3 million and its net earnings decreased 83 percent to $90,319.

DGSEs second-quarter revenue fell 14 percent to $21.6 million and its net income rose 41 percent to $689,504.

Charles & Colvards second-quarter sales were down 64 percent to $1.3 million and the firm reported a loss of $1.2 million, up from a loss of $1.1 million one year ago.

In retail expansion news, James Avery Jewelers opened a new store in Birmingham, Alabama, at The Summit, marking the 52nd location for the retailer. David Orgell and Montblanc opened high-end jewelry boutiques on Rodeo Drive in Beverly Hills, California.

In India, Tanishqs Zoya retail chain launched a collection of diamond wedding jewelry that includes diamond-studded neckpieces, bracelets, earrings and rings.

Rapaport Weekly Broadcast

The jewelry price index has maintained monthly increases since March 2006. Has jewelry inflation peaked?

MINING:

ALROSA reported a net loss of $1 billion for 2008 compared with profits of almost $505 million in 2007. Production fell 11 percent to $2.4 billion, while the firms net debt nearly doubled to $3.6 billion.

Rio Tintos diamond revenues fell 68 percent to $184 million during the first half of 2009.The diamond unit posted a net loss of $56 million, compared with profits of $108 million. Production fell 14 percent to 6.787 million carats.

Rockwell Diamonds generated sales of about $4 million in July and reported a 10 percent increase in rough prices during the month. Shore Gold posted a second-quarter net loss of $2 million, which was an improvement from its loss of $2.5 million one year ago.

BRC DiamondCore reported a second-quarter net loss of $1.8 million, up from $1 million in 2008.

Indias sole diamond mine, Panna, is set to reopen after being closed for four years. The mine is expected to produce 100,000 carats per year.

The UN estimated that 114,629 people have been expelled from Angolas diamond-rich north and pushed into the Democratic Republic of the Congo (DRC) since December 2008.

IN THE NEWS:

The New York Diamond Dealers Club presented Freddy Hager, London Diamond Bourse president, with an honorary membership in recognition of his significant contributions to the industry.

JWT named Sally Morrison its interim U.S. director in charge of the De Beers account, following the departure of Richard Lennox in July. Morrison has served as director of the Diamond Information Center for the past seven years.

Alpha Kwok, a Chinese-born British national, was arrested in Manila for allegedly smuggling $20 million in diamonds and gemstones for private clients. The undersecretary of the nations anti-smuggling group vows to disclose Kwoks clients, many of whom were said to be jewelers.

ECON WATCH:
Aug.20 Aug.13 Chng.
$1 = Euro 0.702 0.700 0.002
$1 = Rupee 48.58 48.15 0.4
$1 = Israel Shekel 3.82 3.79 0.03
$1 = Rand 7.90 8.01 -0.11
$1 = Canadian Dollar 1.09 1.08 0.01

Precious Metals
Gold $940.20 $954.50 -$14.30
Platinum $1,239.00 $1,265.00 -$26.00

Stock Indexes Chng.
BSE 15,012.32 15,518.49 -506.17 -3.26%
Dow Jones Avg. 9,349.82 9,398.19 -48.37 -0.51%
FTSE 4,756.58 4,755.46 1.12 0.02%
Hang Seng 20,328.86 20,861.30 -532.44 -2.55%
S & P 500 1,007.25 1,012.73 -5.48 -0.54%
Yahoo! Jewelry Index 863.85 867.81 -3.96 -0.46%

USA
Birks & Mayors $0.50 $0.47 $0.03 6.38%
Blue Nile $54.63 $53.55 $1.08 2.02%
Charles & Colvard $0.50 $0.60 -$0.10 -15.97%
DGSE Companies, Inc. $0.78 $0.85 -$0.07 -8.24%
Fuqi International $24.79 $28.26 -$3.47 -12.28%
JCPenney $30.70 $33.34 -$2.64 -7.92%
Kohls $51.52 $52.39 -$0.87 -1.66%
Lazare Kaplan $2.69 $2.47 $0.22 8.91%
LJ International $1.78 $2.64 -$0.86 -32.58%
Macys $14.89 $16.15 -$1.26 -7.80%
Man Sang $2.05 $2.22 -$0.17 -7.66%
Movado Group $11.95 $13.09 -$1.14 -8.71%
Nordstrom $27.84 $29.76 -$1.92 -6.45%
Saks $5.61 $6.09 -$0.48 -7.88%
Signet $22.65 $22.61 $0.04 0.18%
Sothebys $17.00 $16.62 $0.38 2.29%
Tiffany $30.78 $31.01 -$0.23 -0.74%
Wal-Mart $51.70 $51.88 -$0.18 -0.35%
Zale $6.05 $6.37 -$0.32 -5.02%

EUROPE
Bulgari €4.96 €4.78 €0.18 3.77%
Bijou Brigitte €115.79 €110.00 €5.79 5.26%
Esa €0.72 €0.68 €0.04 5.88%
LVMH €64.31 €63.50 €0.81 1.28%
Pinault P-R SA €79.86 €78.93 €0.93 1.18%
Richemont SA CHF 28.58 CHF 27.06 CHF 1.52 5.62%
Swatch Group CHF 226.00 CHF 210.10 CHF 15.90 7.57%
Theo Fennell (pence) 46.00 49.00 -3.00 -6.12%

INDIA (rupee)
Classic Diamond 16.80 18.20 -1.40 -7.69%
Gitanjali Gems 106.80 108.45 -1.65 -1.52%
Rajesh Exports 43.00 43.40 -0.40 -0.92%
Ren. Jewellery 38.90 40.15 -1.25 -3.11%
Su-Raj Diamonds 39.55 43.30 -3.75 -8.66%
Titan 1,194.55 1,194.65 -0.10 -0.01%
Zodiac JRD 16.50 16.00 0.50 3.13%
Suashish Diamonds 187.00 184.75 2.25 1.22%

NEW ZEALAND
Michael Hill NZD 0.69 NZD 0.73 -NZD 0.04 -5.48%

MINING STOCKS

CANADA
Harry Winston CAD 6.03 CAD 6.18 -CAD 0.15 -2.43%
Mountain Province CAD 1.67 CAD 1.71 -CAD 0.04 -2.34%
Peregrine Diamonds CAD 0.70 CAD 0.74 -CAD 0.04 -5.41%
Rockwell Diamonds CAD 0.05 CAD 0.05 CAD 0.00 0.00%
Shore Gold CAD 0.57 CAD 0.59 -CAD 0.02 -3.39%
Stornoway Diamond CAD 0.12 CAD 0.12 CAD 0.00 0.00%
True North Gems CAD 0.12 CAD 0.12 CAD 0.00 0.00%
UK (pence)
African Diamonds 29.48 29.12 0.4 1.24%
Anglo American 1,915.00 1,922.00 -7.0 -0.36%
BHP Billiton 1,562.50 1,590.00 -27.5 -1.73%
Firestone Diamonds 26.09 24.50 1.6 6.49%
Gem Diamonds 251.75 247.00 4.8 1.92%
Gemfields 7.60 7.25 0.4 4.83%
Mano River 7.37 7.80 -0.4 -5.51%
Mwana Africa 6.82 6.50 0.3 4.92%
Namakwa Diamonds 33.05 34.60 -1.6 -4.48%
Petra Diamonds 34.50 33.50 1.0 2.99%
Rio Tinto plc 2,334.50 2,410.46 -76.0 -3.15%

INDIA MARKET REPORT:
POLISHED: Activity is quiet due to long weekend and the ongoing Jain festival of Paryushan.

Rapaport TradeWire - Friday, September 25, 2009
News: Hong Kong show opened strong but softened as Far East buyers refused to pay higher prices. Price standoff is restricting sales volume. Sellers report slightly higher prices but below their expectations. Good Demand for 1-3 cts., G-I, VVS-VS, X-VG+ goods with sellers pushing SI qualities to Far East markets. Trade is concerned about further rough price increases at next week’s sights. ALROSA Sept. sales about $200 mil. Rio Tinto predicts stronger demand and higher sales for 2H. Zale to restate 2007, 2008 financials after errors found. Retail Forward analysts predict flat sales growth for U.S. 4Q retail. Bloomberg reports Gordon Brothers buys Finlay assets for $116 mil. Rapaport offices closed Monday Sept. 28 for Yom Kippur.

SPECIAL MESSAGE FROM MARTIN RAPAPORT

Dear Friends,

Greetings and best wishes for the upcoming holiday season. I am writing to ask for your assistance regarding the distribution of the Rapaport Price List. Over the next few weeks and months we will be expanding the electronic distribution of the Price List. As we increase access we will also be implementing controls to ensure that only paid subscribers receive and have access to the Price List.

At this time I am personally appealing to our Rapaport subscribers not to redistribute the Rapaport Price List or give your password to any third parties. Your subscription and membership is personal. Please do not give copies of our list to third parties. I am also appealing to those who receive the Price List without a membership subscription to please join Rapaport directly by emailing join@rapaport.com or subscribing via our www.diamonds.net website.

The Rapaport Group is committed to significantly expanding our information and services to clients at reasonable cost. We will only share our knowledge and technology with honest and ethical clients who respect our intellectual property and the extensive investment we make in research and development. We will terminate our relationship with those that violate our terms of service, trading rules and compliance requirements. We will fully support and help increase the trade and profitability of clients that work with us in a fair and honest manner.

As the diamond trade adapts to the new realities of the marketplace, great opportunities await those who use advanced communication technology to reach and develop new customers. The Rapaport Group is on the cutting edge of new technologies and is committed to helping our clients use them to grow and prosper. I urge members of the diamond trade to join our efforts us and share the benefits.

Yours truly,
Martin Rapaport

ANNOUNCEMENTS:

RAPAPORT NY POLISHED DIAMOND TENDER
October 19–22, 2009

Wide assortment of round and fancy shape polished diamonds
Fine to commercial qualities, -6.5 sieve plate to 1+ carat.

By Appointment Only

Contact: Myles Schakler
Email:NYTender@diamonds.net
Phone: +1-212-354-9800

QUOTE OF THE WEEK:

“This [zero growth rate as opposed to negative sale is positive news as we move into the critical holiday season, but the economic environment will remain difficult. Sales declines will persist for specific retail channels—particularly apparel and home goods—but will end for aggregate measures of retail sales. The emerging recovery will be driven by growing confidence among households in response to, among other things, subsiding job cuts by businesses. Businesses, in turn, are taking their foot off the brakes in light of leaner inventories and expectations that pent-up demand and economic stimulus will soon require new business investment.”

Frank Badillo
Senior economist for Retail Forward

WORLD NEWS:

The September Hong Kong Jewellery & Gem Fair reported a record number of exhibitors spread out across a space 25 percent larger than that afforded by previous shows. Hong Kong buyers represented almost one-third of visitor traffic and another one-quarter arrived from mainland China. Notably, a decent number of visitors were present from the U.S., Taiwan and India. In contrast with other shows held earlier this year, exhibitors especially noticed that buyers from India were quick to close deals. There was, however, very little interdealer trading at the show. Demand was focused upon 1.00-3.00 ct., G-I, VVS-VS goods, while sellers were also finding increased success in SI clarities. H-I colors and lower are selling well in general. Participants noted some price increases, but they still failed to reach sellers’ expectations.
Read detailed coverage from the show.

The 44th Bangkok Gems & Jewelry Fair reported that traffic was on par with the 2008 level and this year’s show offered a fine diamond jewelry pavilion for the first time. Trading activity during the show centered on colored stones and silver jewelry. Diamond jewelry experienced weak activity. The show highlighted Thailands aggressive branding initiative to become a major colored gemstone jewelry trading center. Thailand also reduced the value-added tax (VAT) on rough stone and precious metal imports in order to boost the local cutting, polishing and jewelry design trades.

ALROSA plans to sell between $190 million and $200 million worth of rough in September, much of which will be handled through long-term contracts. The company also plans to deliver a large supply of rough to the Gokhran. So far this year, Gokhran has purchased about $395 million in rough.

Rapaport Weekly Broadcast
Diamond jewelry and major brands were plentiful on the red carpet at the 61st annual Emmys. See some of the pieces up close.

RETAIL & WHOLESALE:

Zale will restate its financial results for fiscal years 2007 and 2008 and expects to provide interim results for fiscal 2009 by October 29. Zale has twice delayed releasing its 2009 results pending review of the prior two years. The companys balance sheets for 2007 and 2008 misreported $41 million in prepaid advertising costs. Additional adjustments were required to aggregate approximately $9 million on a pre-tax basis from charges related to accounts receivable and depository bank account reconciliations. Another $4 million charge related to federal income taxes will be recorded in fiscal 2008.

Finlay Enterprises and its affiliates and subsidiaries completed an auction for its business and assets under provisions of the United States Bankruptcy Court in New York. The winning bid went to Gordon Brothers Retail Partners and the group will conduct "store closing" or similar sales of merchandise located at all of Finlays locations, including distribution centers. The transaction must be approved by the court, and once approved could complete by February 28, 2010.

Weekly U.S. chain store sales were basically flat from one year ago for the week that ended September 19, 2009, according to the International Council of Shopping Centers (ICSC) and Goldman Sachs. Foot traffic slowed and customer traffic was sharply lower at department stores.

Lazare Kaplan could be delisted from the New York Stock Exchange (NYSE) if it fails to meet certain conditions required by the exchange. Lazare Kaplan delayed filing its annual report, but it has notified the exchange that it will submit a plan of action by September 30, 2009 detailing the measures necessary for it to achieve compliance by December 15. Failure to submit the plan or the rejection of the plan by the exchange would also subject Lazare Kaplan to delisting.

Stuller introduced a Red Box Diamond Giveaway through Facebook in conjunction with the release of its iPhone application to consumers in order to help drive bridal shoppers to local, independent Red Box Diamond retailers. Stuller hopes to generate excitement among consumers, which would result in increased business for the retailers.

MINING:

Rio Tinto told investors that sales and supplies of rough have risen recently and will continue to increase for the remainder of the year. Rio Tinto is a partner in the Diavik mine, where production has so far exceeded the company’s expectations for 2009. Diavik has undergone an expansive shift toward underground mining and Rio Tinto expects underground production to begin there in early 2010.

Peregrine Diamonds discovered large diamonds and a coarse diamond-size distribution from samples collected at the Chidliak project on Baffin Island in Nunavut, Canada. One sample from CH-6 yielded 2,730 diamonds that were larger than the 0.075 mm. sieve size, including 131 diamonds bigger than the 0.600 mm. sieve size. The largest diamond recovered from the sample was a 0.62-carat, white, transparent aggregate. Another sample from CH-5 revealed a diamondiferous pipe with a 423.7 kg. surface sample yielding 49 diamonds larger than the 0.075 mm. sieve size.

Lucara Diamond was granted a ten-year diamond mining lease by Lesotho for its Mothae project concurrent with a diamond mining agreement between Lucara and the government. Lucara will hold a 75-percent stake in the project, while the government will hold a 25-percent share. Lucara can now move forward with pre-production testing. A diamond valuation conducted in June resulted in a modeled diamond value of $549 per carat for Mothae.

TanzaniteOne reported an interim first half loss of $580,000, a sharp decline from its profits of $3.5 million for the first half of 2008. Revenue fell 77 percent to $4.9 million. The number of carats recovered fell 21 percent and the cash cost per carat rose to $3.99 from $3.38. The mining company noted that its second sight of the year was delayed and held in July, which further eroded its first-half revenue. This sale achieved $2.01 million and will be included in TanzaniteOne’s second-half results.

ECON WATCH:
Sept. 24 Sept. 17 Chng.
$1 = Euro 0.683 0.678 0.005
$1 = Rupee 48.30 48.12 0.2
$1 = Israel Shekel 3.75 3.74 0.01
$1 = Rand 7.46 7.39 0.07
$1 = Canadian Dollar 1.08 1.06 0.02

Precious Metals
Gold $993.70 $1,011.80 -$18.10
Platinum $1,297.00 $1,335.00 -$38.00

Stock Indexes Chng.
BSE 16,781.43 16,711.11 70.32 0.42%
Dow Jones Avg. 9,706.46 9,784.22 -77.76 -0.79%
FTSE 5,079.27 5,163.95 -84.68 -1.64%
Hang Seng 21,050.73 21,768.51 -717.78 -3.30%
S & P 500 1,050.75 1,065.50 -14.75 -1.38%
Yahoo! Jewelry Index 1,015.80 1,067.42 -51.62 -4.84%

USA
Birks & Mayors $0.58 $0.59 -$0.01 -1.19%
Blue Nile $60.01 $61.73 -$1.72 -2.79%
Charles & Colvard $0.63 $0.70 -$0.07 -10.00%
DGSE Companies, Inc. $1.42 $1.41 $0.01 0.71%
Fuqi International $29.32 $30.57 -$1.25 -4.09%
JCPenney $32.87 $33.67 -$0.80 -2.38%
Kohls $54.76 $54.87 -$0.11 -0.20%
Lazare Kaplan $2.50 $2.50 $0.00 0.00%
LJ International $2.18 $2.24 -$0.06 -2.68%
Macys $18.02 $17.68 $0.34 1.92%
Man Sang $2.55 $2.12 $0.43 20.28%
Movado Group $14.76 $13.77 $0.99 7.19%
Nordstrom $30.61 $31.68 -$1.07 -3.38%
Saks $6.94 $7.13 -$0.19 -2.66%
Signet $25.35 $26.51 -$1.16 -4.38%
Sothebys $16.03 $16.75 -$0.72 -4.30%
Tiffany $36.83 $38.84 -$2.01 -5.18%
Wal-Mart $50.69 $49.90 $0.79 1.58%
Zale $7.28 $7.35 -$0.07 -0.95%

EUROPE
Bulgari €5.21 €5.56 -€0.35 -6.29%
Bijou Brigitte €116.73 €126.69 -€9.96 -7.86%
LVMH €67.79 €69.74 -€1.95 -2.80%
Pinault P-R SA €84.31 €87.00 -€2.69 -3.09%
Richemont SA CHF 29.18 CHF 29.82 -CHF 0.64 -2.15%
Swatch Group CHF 233.60 CHF 239.00 -CHF 5.40 -2.26%
Theo Fennell (pence) 34.00 35.00 -1.00 -2.86%

INDIA (rupee)
Classic Diamond 25.90 25.60 0.30 1.17%
Gitanjali Gems 117.50 121.05 -3.55 -2.93%
Rajesh Exports 74.95 74.05 0.90 1.22%
Ren. Jewellery 48.15 51.90 -3.75 -7.23%
Su-Raj Diamonds 52.25 52.75 -0.50 -0.95%
Titan 1,249.85 1,275.30 -25.45 -2.00%
Zodiac JRD 22.05 21.55 0.50 2.32%
Suashish Diamonds 214.65 221.35 -6.70 -3.03%

NEW ZEALAND
Michael Hill NZD 0.72 NZD 0.75 -NZD 0.03 -4.00%

MINING STOCKS
CANADA
Harry Winston CAD 9.14 CAD 9.52 -CAD 0.38 -3.99%
Mountain Province CAD 2.65 CAD 1.74 CAD 0.91 52.30%
Peregrine Diamonds CAD 1.80 CAD 0.73 CAD 1.07 146.58%
Rockwell Diamonds CAD 0.05 CAD 0.05 CAD 0.00 0.00%
Shore Gold CAD 1.07 CAD 1.45 -CAD 0.38 -26.21%
Stornoway Diamond CAD 0.15 CAD 0.16 -CAD 0.01 -6.25%
True North Gems CAD 0.12 CAD 0.12 CAD 0.00 0.00%
UK (pence)
African Diamonds 29.75 29.00 0.8 2.59%
Anglo American 2,062.08 2,125.00 -62.9 -2.96%
BHP Billiton 1,686.62 1,766.00 -79.4 -4.49%
Firestone Diamonds 37.25 40.75 -3.5 -8.59%
Gem Diamonds 243.60 251.90 -8.3 -3.29%
Gemfields 6.75 6.90 -0.2 -2.17%
Mano River 8.63 7.75 0.9 11.35%
Mwana Africa 12.25 12.00 0.3 2.08%
Namakwa Diamonds 33.05 35.05 -2.0 -5.71%
Petra Diamonds 53.00 42.00 11.0 26.19%
Rio Tinto plc 2,686.09 2,740.00 -53.9 -1.97%

INDIA MARKET REPORT:

Rapaport TradeWire®
Friday, October 02, 2009

News: Buyers market for polished diamonds prevails following extreme price resistance at Hong Kong show. Price standoff continues as profit margins remain low. Sellers expected higher HK prices. Buyers disappointed by inability to buy cheap. Uncertainty creeps back into rough market as demand eases yet shortages prevail. De Beers cancels Snap Lake Dec. shutdown on improved outlook. Petra Diamonds FY09 revenues -10% to $69.3 mil., net loss of $88.9 mil. vs. net profit of $1.9 mil. a year earlier. Petra’s Cullinan mine yields 507.55 ct. white diamond said to be worth some $20 mil. Finlay Enterprises begins going-out-of-business sale. Japan’s Aug. polished imports -21% to $36.4 mil.

ANNOUNCEMENTS:

RAPAPORT ROUGH DIAMOND TENDER
October 18-22, 2009 -- Ramat Gan, Israel

Selections of fine-quality, one to ten carat rough diamonds

By Appointment Only

Contact: Joshua Kersh
Email: roughtenders@diamonds.net
Phone: 972-3-613-3330

RAPAPORT POLISHED DIAMOND TENDER
October 19–22, 2009 -- New York

Wide assortment of round and fancy shape polished diamonds
Fine to commercial qualities, -6.5 sieve plate to 1+ carat.

By Appointment Only

Contact: Myles Schakler
Email: Tenders@diamonds.net
Phone: 1-212-354-9800

QUOTE OF THE WEEK:

“Keeping Snap Lake open is a good news decision in response to some positive trends we are seeing in the marketplace. While we are optimistic about the improvements we are seeing in the global industry, we will continue to make decisions carefully, with a focus on the long-term success for our new Canadian mines.”

Jim Gowans
President of De Beers Canada

RETAIL & WHOLESALE

Weekly chain store sales in the U.S. rose almost 1 percent from one year ago for the week that ended September 26, 2009, according to the weekly measurement provided by the International Council of Shopping Centers (ICSC) and Goldman Sachs. Consumer foot traffic also increased, which helped to boost comparable store sales slightly for a third consecutive week. As a preliminary estimate of Christmas season spending, the research group expects chain store sales to rise 1 percent for November and December combined.

Finlay Enterprises is holding going-out-of-business sales at all locations and will be closing Bailey Banks & Biddle, Congress Jewelers, Carlyle & Co., J.E. Caldwell, Park Promenade and Zell Bros. Jewelers. Bon-Ton Stores, Finlays final jewelry-counter client, will take control of its own fine jewelry departments in 86 locations by Christmas.

Tiffany & Co. plans to open its second boutique at Londons Heathrow Airport just in time for the Christmas shopping season. The new boutique will be located in the airports Terminal 3 and marks the jeweler’s eighth location in greater London. Tiffany opened a boutique in Terminal 5 during 2008. In another development, Tiffany and Swatch will launch a range of watches in the price range of $3,200 to $8,000. Learn more about the Tiffany/Swatch partnership with this video presentation.

One of Japans largest department stores, Takashimaya Co., noted that consumers have grown cost-conscious and turned away from pricey goods, such as jewelry and high-end apparel. Takashimaya lowered its profit forecast to $55 million, a drop of 65 percent from 2008. The department store’s sales fell 10 percent to $4.8 billion.

GENERAL

Japan’s polished diamond imports fell 21 percent to $36.4 million in August 2009. For the first eight months of the year, Japan’s polished imports fell 25 percent to $400.7 million, reflecting very weak demand on the island nation.

The Gemological Institute of America (GIA) identified three counterfeit grading reports accompanying its diamonds in Johannesburg, South Africa, with the stones in question weighing 3.00 carats, 4.08 carats and 5.01 carats. GIA found that at least one of the three diamonds was high pressure-high temperature (HPHT) treated. Follow-up testing is currently being conducted on the other two diamonds. GIA concluded that the problem is not believed to be widespread, but limited to a small number of stones. One person has been arrested in the case following a GIA investigation that involved working with the client and industry leadership in South Africa. Authentic GIA reports include a number of important security features, with some being apparent and others more subtle.

Rapaport Weekly Broadcast
Did you see the 507.55-carat whopper of a rough diamond from Petras Cullinan mine? Petra recovered three additional large stones, as well.

MINING

Petra Diamonds posted a net loss of $88.9 million for the fiscal year that ended June 30, 2009, compared with a net profit of $1.9 million in 2008. The net loss was primarily due to $75.2 million in impairment charges — one with respect to withdrawing operations from Angola and another from the write-down of Petra’s 51 percent stake in the Kono project in Sierra Leone. Carat production rose five-fold to surpass the company’s annual goal of 1 million carats. Petra’s revenue fell 10 percent to $69.3 million due to weak diamond prices, which took effect at the beginning of its second fiscal quarter. Mining and processing costs rose 70 percent to $64 million as profits from its mining activity declined 80 percent to $7.8 million. Petra bought the Cullinan mine in July 2008 and the Williamson mine in February 2009. The company had $11.1 million in cash on hand at the close of the 2009 fiscal year, which was insufficient to finance its ongoing trade operations. Petra may undertake a fundraising effort, depending on the prices the company achieves for the sale of the four large diamonds it just recovered at Cullinan.

Pangea DiamondFields reported that revenues from its operations fell 60 percent to $895,661 for the six months that ended June 30, 2009 and cautioned that certain conditions must be met for it to continue operating. The company posted a net loss of $8.9 million for the half-year, which was down from a loss of $11.1 million one year ago. Cash reserves were $3.3 million and Pangea held 3,382 carats of rough diamond stock valued at $500,000.

De Beers Canada cancelled the four-week December hiatus that had been planned for its Snap Lake Mine due to an improved outlook for rough diamond demand from sightholders. The move followed a similar decision by Harry Winston and Rio Tinto to keep their joint-venture Diavik mine open in December, after having planned an operational closure due to market conditions. De Beers Group implemented a number of temporary mine cessations across its global operations this year in response to the economic downturn.

Econ Watch
Oct. 1 Sept. 24 Chng.
$1 = Euro 0.688 0.683 0.005
$1 = Rupee 47.77 48.30 -0.5
$1 = Israel Shekel 3.77 3.75 0.02
$1 = Rand 7.52 7.46 0.06
$1 = Canadian Dollar 1.07 1.08 -0.01

Precious Metals
Gold $999.40 $993.70 $5.70
Platinum $1,279.00 $1,297.00 -$18.00

Stock Indexes Chng.
BSE 17,134.55 16,781.43 353.12 2.10%
Dow Jones Avg. 9,508.83 9,706.46 -197.63 -2.04%
FTSE 5,047.82 5,079.27 -31.45 -0.62%
Hang Seng 20,955.25 21,050.73 -95.48 -0.45%
S & P 500 1,029.84 1,050.75 -20.91 -1.99%
Yahoo! Jewelry Index 1,040.72 1,015.80 24.92 2.45%

USA
Birks & Mayors $0.55 $0.58 -$0.03 -5.17%
Blue Nile $60.21 $60.01 $0.20 0.33%
Charles & Colvard $0.59 $0.63 -$0.04 -6.35%
DGSE Companies, Inc. $1.41 $1.42 -$0.01 -0.70%
Fuqi International $27.24 $29.32 -$2.08 -7.09%
JCPenney $32.81 $32.87 -$0.06 -0.18%
Kohls $55.49 $54.76 $0.73 1.33%
Lazare Kaplan $2.50 $2.50 $0.00 0.00%
LJ International $2.04 $2.18 -$0.14 -6.42%
Macys $17.49 $18.02 -$0.53 -2.94%
Man Sang $2.47 $2.55 -$0.08 -3.14%
Movado Group $13.05 $14.76 -$1.71 -11.59%
Nordstrom $29.51 $30.61 -$1.10 -3.59%
Saks $6.35 $6.94 -$0.59 -8.50%
Signet $26.75 $25.35 $1.40 5.52%
Sothebys $16.56 $16.03 $0.53 3.31%
Tiffany $38.00 $36.83 $1.17 3.18%
Wal-Mart $49.26 $50.69 -$1.43 -2.82%
Zale $6.56 $7.28 -$0.72 -9.89%

EUROPE
Bulgari €5.22 €5.21 €0.01 0.19%
Bijou Brigitte €119.49 €116.73 €2.76 2.36%
LVMH €68.01 €67.79 €0.22 0.32%
Pinault P-R SA €86.60 €84.31 €2.29 2.72%
Richemont SA CHF 28.60 CHF 29.18 -CHF 0.58 -1.99%
Swatch Group CHF 239.40 CHF 233.60 CHF 5.80 2.48%
Theo Fennell (pence) 37.00 34.00 3.00 8.82%

INDIA (rupee)
Classic Diamond 25.20 25.90 -0.70 -2.70%
Gitanjali Gems 122.05 117.50 4.55 3.87%
Goldiam Intl 28.75 30.90 -2.15 -6.96%
Rajesh Exports 71.30 74.95 -3.65 -4.87%
Ren. Jewellery 49.55 48.15 1.40 2.91%
Su-Raj Diamonds 51.60 52.25 -0.65 -1.24%
Titan 1,250.05 1,249.85 0.20 0.02%
Zodiac JRD 21.60 22.05 -0.45 -2.04%
Suashish Diamonds 210.10 214.65 -4.55 -2.12%

NEW ZEALAND
Michael Hill NZD 0.71 NZD 0.72 -NZD 0.01 -1.39%

MINING STOCKS
CANADA
Harry Winston CAD 8.61 CAD 9.14 -CAD 0.53 -5.80%
Mountain Province CAD 2.66 CAD 2.65 CAD 0.01 0.38%
Peregrine Diamonds CAD 2.60 CAD 1.80 CAD 0.80 44.44%
Rockwell Diamonds CAD 0.05 CAD 0.05 CAD 0.00 0.00%
Shore Gold CAD 1.08 CAD 1.07 CAD 0.01 0.93%
Stornoway Diamond CAD 0.18 CAD 0.15 CAD 0.03 20.00%
True North Gems CAD 0.13 CAD 0.12 CAD 0.01 8.33%
UK (pence)
African Diamonds 26.68 29.75 -3.1 -10.32%
Anglo American 1,926.00 2,062.08 -136.1 -6.60%
BHP Billiton 1,661.50 1,686.62 -25.1 -1.49%
Firestone Diamonds 36.75 37.25 -0.5 -1.34%
Gem Diamonds 230.00 243.60 -13.6 -5.58%
Gemfields 6.75 6.75 0.0 0.00%
Mano River 7.82 8.63 -0.8 -9.39%
Mwana Africa 12.05 12.25 -0.2 -1.63%
Namakwa Diamonds 35.05 33.05 2.0 6.05%
Petra Diamonds 57.75 53.00 4.8 8.96%
Rio Tinto plc 2,600.00 2,686.09 -86.1 -3.21%

India Market Report

Rapaport TradeWire®
Friday, October 23, 2009

News: Polished prices firming with improved trading conditions expected before holiday season. Oil hits one-year high ($81/barrel) as U.S. dollar continues to weaken (euro/$1.50). India’s Diwali jewelry sales meet expectations with manufacturers anticipating rise in domestic demand. Christies NY sells $46.5 mil. (85% by lot) including emerald-cut, 32.01 cts., D, flawless Annenberg Diamond for $7.7 mil. ($240,503/ct). Sothebys NY sells $13.8 mil. (84% by lot), with 29.53 ct., D, (type IIa) for $3.5 mil. ($118,000 p/ct.). ALROSA Oct. sales $355 mil. Gem Diamonds 3Q rough sales -9% to $51.5 mil. BHP Billiton 1Q diamond production +1% to 780,000 cts. LVMH 3Q sales -3% to $6.2 bil., jewelry sales -22% to $279 mil. India’s Sept. polished exports +11% to $1.8 bil., rough imports -25% to $689.6 mil. Industry mourns the passing of DDC president Jacob Banda and Indian industry pioneer Mahendra “Madhu” Mehta of Jayam Manufacturing.

ANNOUNCEMENTS:

Martin Rapaport Special Presentations in Dubai

State of the Diamond Industry
Wednesday, November 4, 2009 - 11am-1pm
Almas Tower Conference Center

New Realities: Challenges and Opportunities
Thursday, November 5, 2009 - 5:30-7:30pm
Dubai World Trade Center seminar room

RSVP: dubai@diamonds.net
Please state which seminar you will attend

Martin Rapaport will hold a series of personal appointments in Dubai.
To set up an appointment email Pooja@diamonds.net.

QUOTE OF THE WEEK:

"At the end of the day the diamonds are getting sold and jewelry sales are increasing. [There is some speculative buying] but its a at more secure level of speculation that what we experienced last year. Bearing in mind Christmas is coming and the market is going on the up, and we had a massive decrease, I would say its not at risk."

Jeffrey Brenner
Marketing and sales manager
Rockwell Diamonds

RETAIL & WHOLESALE:

Rapaport Weekly Broadcast

See the Annenberg Diamond up close and many of the other top diamond lots from auctions held at Christies and Sothebys in New York. Christies grand total for its fall sale was $46,513,050, with 85 percent sold by lot. The top lot was the Annenberg Diamond, a 32.01-carat, D, flawless emerald-cut diamond flanked by two pear-shaped diamonds weighing 1.61 carats and 1.51 carats, which sold for $7,698,500. Sotheby’s fall sale total was $13,843,100, with 83.5 percent sold by lot, including a pear-shaped, 29.53-carat D-color, potentially flawless, type IIa, diamond ring, which fetched $3,498,500.
Watch now:
http://www.diamonds.net/news/NewsItem.aspx?ArticleID=28363

U.S. Chain Store Sales +3%

Weekly chain store sales across the U.S. rose 2.8 percent from one year ago during the week that ended October 17, 2009, according to the International Council of Shopping Centers (ICSC) and Goldman Sachs. The positive reading can be attributed, in part, to this years comparatively more stable climate, given the sales drops that were registered during the fourth quarter of 2008.

Japans Sept. Department Store Sales -8%

Department store sales in Japan plunged 7.8 percent on a same-store basis this September, compared with 2008, the largest drop for the month since 1965. Sales for the month totaled $5.2 billion, with September 2009 marking the 19th consecutive month that they declined. Luxury art and jewelry sales plunged 16 percent for the month, while clothing sales decreased by 10.5 percent.

Bain & Co. Forecast Jewelry Sales Declines

Bain & Co.’s eighth “Luxury Goods Worldwide Market” study predicts that global luxury good sales will decline just 8 percent to $229 billion in 2009, as revenue generated from both China and online sales softens the blow from mature markets. The luxury category for jewelry, watches and other luxury items will be hit the hardest in 2009, with Bain & Co. forecasting an 18 percent decrease in the sale of these items.

However, Chinas luxury sales are projected to increase by 12 percent and Internet sales should jump 20 percent worldwide this year, the group concluded. Sales in the U.S. this year are expected to drop 16 percent from their 2008 level. Bain & Co. predicted declines of 10 percent in Japan and 8 percent in Europe. Emerging markets continue to prosper, with most of the luxury store openings occurring in China, the Middle East and Eastern Europe. Bain & Co. expects sales to increase by 1 percent in 2010. A full recovery is anticipated in 2011, when the industry is expected to grow by 4.2 percent.

LVMHs 3Q Sales Dip

Third-quarter revenue fell 3 percent at LVMH Moët Hennessy Louis Vuitton to $6.17 billion. Jewelry sales took the largest hit in third-quarter 2009, falling 22 percent year on year to $279 million.

Damiani Signs U.S. Deal with Birks & Mayors

Luxury jeweller Casa Damiani will distribute its products in the U.S. through an agreement with Birks & Mayors. The five-year deal is for all Damiani brands.

GENERAL:

AGL Highlights New Acquisitions, Growth

Christopher P. Smith, president of the American Gemological Laboratories (AGL), highlighted recent lab developments during a presentation at AGL’s offices on October 22. He emphasized that AGL is growing and has recently acquired the rights to the former American Gem Trade Associations (AGTA) laboratory report for premium colored stones, known as the “JewelFolio” (TM). AGL has purchased a Raman spectrometer to support its services and help develop additional services. Testing services are also being expanded internationally via on-site testing in Hong Kong, Bangkok and Sri Lanka, as well as in Tucson and Las Vegas for the trade shows based in those two cities. For more information, contact AGL at 212.704.0727.

STATS:

Indias Sept. Polished Diamond Exports +11%

The September Hong Kong show helped India’s polished exports grow for the first time this year, with exports rising 11 percent from their 2008 level to $1.76 billion. Polished imports fell 18 percent to $584.9 million and net polished exports, representing the excess of exports over imports, rose 35 percent to $1.2 billion. Rough imports declined 25 percent to $689.56 million, while rough exports grew 1 percent to $73.3 million and net rough imports, or imports less exports, decreased 27 percent to $616.3 million.

India’s September net diamond account, measuring total exports of polished and rough less total imports, grew to $560.4 million, compared with $23.7 million one year ago.

MINING:

ALROSA’s Oct. Sales Amount to $355M

ALROSA reported that it sold $355 million worth of diamonds in October, $255 million of which were sold to the market, with the remainder going to the state depository, Gokhran. The company noted that it has observed a recovery in the rough market.

De Beers 3Q Rough Production -40%

Anglo American reported interim third quarter rough diamond production for De Beers fell 40 percent to 7.9 million carats. Year-to-date production was 61 percent lower at 14.5 million carats, but De Beers remains on target to end the year with only a 50 percent reduction in rough compared with 2008.

Gem Diamonds 3Q Sales -9%

Gem Diamonds reported that sales of the rough diamonds recovered from its Letseng and Ellendale mines fell 9 percent to $51.5 million during the third quarter. The company noted that the trend for prices pointed higher during the quarter, “but remained substantially below pre-September 2008 levels.” Production at Letseng in Lesotho dropped 23.3 percent to 23,756 carats during the quarter. Ellendale’s production decreased 67.5 percent to 58,611 carats.

BHP’s 1Q Diamond Production +1%

BHP Billiton reported that diamond production rose 1 percent year on year to 780,000 carats during its first fiscal quarter. The company noted that there was increasingly positive economic news in most countries during the quarter, singling out China as a strong growth center. Unemployment in the U.S., Japan and Europe continues to lag and may trend higher in the near-term.

Econ Watch:
For the week ending October 22, 2009
Oct.22 Oct. 15 Chng.
$1 = Euro 0.666 0.670 -0.004
$1 = Rupee 46.56 46.10 0.5
$1 = Israel Shekel 3.69 3.71 -0.02
$1 = Rand 7.45 7.26 0.19
$1 = Canadian Dollar 1.05 1.03 0.02

Precious Metals
Gold $1,059.70 $1,048.80 $10.90
Platinum $1,366.00 $1,347.00 $19.00

Stock Indexes Chng.
BSE 16,789.74 17,195.20 -405.46 -2.36%
Dow Jones Avg. 10,079.12 10,061.28 17.84 0.18%
FTSE 5,207.36 5,222.95 -15.59 -0.30%
Hang Seng 22,210.52 21,999.08 211.44 0.96%
S & P 500 1,092.76 1,096.11 -3.35 -0.31%
Yahoo! Jewelry Index 1,131.37 1,144.32 -12.95 -1.13%

USA
Birks & Mayors $0.56 $0.58 -$0.02 -3.45%
Blue Nile $64.19 $61.03 $3.16 5.18%
Charles & Colvard $0.58 $0.50 $0.08 15.00%
DGSE Companies, Inc. $1.62 $1.54 $0.08 5.19%
Fuqi International $26.52 $25.78 $0.74 2.87%
JCPenney $36.80 $36.39 $0.41 1.13%
Kohls $59.93 $60.11 -$0.18 -0.30%
Lazare Kaplan $2.50 $2.50 $0.00 0.00%
LJ International $3.46 $3.40 $0.06 1.76%
Macys $19.43 $20.06 -$0.63 -3.14%
Man Sang $2.62 $2.65 -$0.03 -1.13%
Movado Group $13.70 $14.59 -$0.89 -6.10%
Nordstrom $34.36 $34.27 $0.09 0.26%
Saks $6.59 $6.49 $0.10 1.54%
Signet $28.20 $28.30 -$0.10 -0.35%
Sothebys $18.19 $18.85 -$0.66 -3.50%
Tiffany $41.72 $42.02 -$0.30 -0.71%
Wal-Mart $50.52 $50.94 -$0.42 -0.82%
Zale $7.38 $7.62 -$0.24 -3.15%

EUROPE
Bulgari €5.93 €5.95 -€0.02 -0.34%
Bijou Brigitte €115.89 €124.01 -€8.12 -6.55%
Damiani €1.13 €1.12 €0.01 0.89%
LVMH €72.75 €73.36 -€0.61 -0.83%
Pinault P-R SA €80.22 €85.95 -€5.73 -6.67%
Richemont SA CHF 30.38 CHF 30.86 -CHF 0.48 -1.56%
Swatch Group CHF 257.00 CHF 263.75 -CHF 6.75 -2.56%
Theo Fennell (pence) 36.53 33.00 3.53 10.70%

INDIA (rupee)
Classic Diamond 21.95 23.45 -1.50 -6.40%
Gitanjali Gems 124.50 134.30 -9.80 -7.30%
Goldiam Intl 39.35 34.35 5.00 14.56%
Rajesh Exports 74.05 81.70 -7.65 -9.36%
Ren. Jewellery 48.30 48.35 -0.05 -0.10%
Su-Raj Diamonds 51.05 51.55 -0.50 -0.97%
Titan 1,326.25 1,414.55 -88.30 -6.24%
Zodiac JRD 24.80 22.10 2.70 12.22%
Suashish Diamonds 349.65 351.60 -1.95 -0.55%

NEW ZEALAND
Michael Hill NZD 0.67 NZD 0.69 -NZD 0.02 -2.90%

MINING STOCKS
CANADA
Harry Winston CAD 10.68 CAD 9.60 CAD 1.08 11.25%
Mountain Province CAD 2.99 CAD 2.85 CAD 0.14 4.91%
Peregrine Diamonds CAD 2.79 CAD 2.80 -CAD 0.01 -0.36%
Rockwell Diamonds CAD 0.07 CAD 0.09 -CAD 0.03 -27.78%
Shore Gold CAD 1.01 CAD 1.02 -CAD 0.01 -0.98%
Stornoway Diamond CAD 0.33 CAD 0.25 CAD 0.08 32.00%
True North Gems CAD 0.11 CAD 0.12 -CAD 0.01 -8.33%
UK (pence)
African Diamonds 29.70 30.99 -1.3 -4.16%
Anglo American 2,285.00 2,216.00 69.0 3.11%
BHP Billiton 1,796.00 1,811.50 -15.5 -0.86%
Firestone Diamonds 36.88 35.40 1.5 4.18%
Gem Diamonds 249.80 258.80 -9.0 -3.48%
Gemfields 7.03 6.80 0.2 3.38%
Mwana Africa 14.58 15.25 -0.7 -4.39%
Namakwa Diamonds 39.75 35.50 4.3 11.97%
Petra Diamonds 82.00 69.50 12.5 17.99%
Rio Tinto plc 2,935.00 2,946.00 -11.0 -0.37%

India Market Report:
POLISHED: Much activity is quiet due to Diwali.
Round
-1 point: Good demand: +$100 whites.
Fair demand: $200-$300 OWTTLB/TTLC

Rapaport TradeWire®
Friday, October 30, 2009

News: Polished prices still stable but trading activity relatively weak as pre-season holiday demand fails to materialize. Small DTC Nov. sight expected ($300 mil.) with De Beers 3Q production -40% to 7.885 mil. cts. Mining companies hold back rough in attempt to maintain price levels. Manufacturers want to buy but can’t afford high rough prices as polished markets stagnate. Rough production expected to increase sharply next year. Zale FY09 sales -17% to $1.8 bil., reports loss of $190 mil. vs. profits of $631K. ALROSA sells gas company for $620 mil. as it aims to reduce bank debt by 23% in 2H to $3.86 bil. NRF survey shows fewer people want jewelry for Christmas gifts (20.8% this year vs. 24.5% in 2008) and average gift spending to be $508 (vs. $535). Chinas gold jewelry demand +21% in 08, gold investment +176%.

ANNOUNCEMENTS:

Martin Rapaport Special Presentations in Dubai

State of the Diamond Industry
Wednesday, November 4, 2009 - 11am-1pm
Almas Tower Conference Center

New Realities: Challenges and Opportunities
Thursday, November 5, 2009 - 5:30-7:30pm
Dubai World Trade Center seminar room

RSVP: dubai@diamonds.net
Please state which seminar you will attend

Martin Rapaport will hold a series of personal appointments in Dubai.
To set up an appointment email Pooja@diamonds.net.

QUOTE OF THE WEEK:

"With its unique ability to bring luxury to the region, Sparkle Roll Group is the ideal partner to help us develop and strengthen Boucheron’s presence in China. Our aim is to become the ultimate French jeweler in the region.”

Jean-Christophe Bédos
Boucherons chief executive

WORLD:

UN Extends Ban on Rough Diamonds from Cote dIvoire

The U.N. Security Council extended diamond sanctions another year on Côte d’Ivoire and warned that the divided nation continues to pose a threat to international peace and security for the region. The 15-member Council voted unanimously to ban exports of rough diamonds and to maintain an arms embargo. The Council pledged to review these measures again no later than three months after a free, fair and transparent presidential election is held. Earlier this week a U.N. group of experts found the no effective border controls that was enabling the rough diamond trade, almost seamlessly, into Burkina Faso and Mali. There was additional concern that rough diamonds were being illegally exported through Guinea and Liberia.

RETAIL:

Zale FY09 Revenue -17%, Reports Loss of $190M

Zale Corporations fiscal year 2009, which closed July 31, recorded a drop in revenue of 16.8 percent to $1.78 billion and a net loss of $189.5 million or $5.94 per share. For fiscal year 2008, Zales restated revenues were $2.14 billion and the jeweler restated profits at $631,000 or 1-cent per share, down from previously reported $10.8 million. Comparable stores sales for fiscal 2009 fell 17 percent. Zale recorded a 20.8 percent decrease in customer transactions in fine jewelry stores; however the average transaction price increased slightly. Zale had cash and cash equivalents of $25 million at the end of fiscal year 2009 and approximately $136.1 million available under its revolving credit facilities. "We believe that we have sufficient capacity under our revolving credit facilities to meet our financing needs during fiscal 2010," according to its 10-K filing.

U.S. Weekly Chain Store Sales +2%

U.S. weekly chain store sales rose 2.4 percent for the period that ended October 25. The International Council of Shopping Centers (ICSC) and Goldman Sachs, which tracks comparable data, reported that spending rose 0.1 percent from the prior week. ICSC predicts that sales in October will end flat, with a bias toward a very slight increase from one year ago.

Rapaport News Broadcast

U.S. retailers will have to adapt to the "serious bargain hunter" this Christmas sales season as 84 percent of shoppers plan to reduce their spending and cut back on gift-giving compared with 2008. Salary statistics also weigh heavily upon shopping lists, with broad-based income drops apparent from government data due to the recession and unemployment. WATCH

Poor Job Outlook Erodes Consumer Confidence

Consumers gave the U.S. economy a thumbs-down in October as the job market continued to prove unworthy of optimism. The Conference Boards monthly Consumer Confidence Index® improved to 47.7 points, up from a historic low, at the time, of 38.8 points in October 2008. However, this Octobers reading was lower than the index for the past two months. The record low for the index, which measures consumer sentiment as a barometer of people’s willingness to spend, was 25.3, set in February 2009, and it has been fluctuating between 47 and 55 points for the past seven months.

The very weak labor market played into the grim assessment from the Present Situation Index, which stood at 20.7 points in October, its lowest reading in 26 years, down from 23 points in September. The Expectations Index declined to 65.7 in October from 73.7 in September, according to The Conference Board. Consumers remain quite pessimistic about their future earnings, a sentiment that will likely constrain spending during the holidays.

Boucheron to Establish Network of Stores in China

Boucheron and luxury goods distributor Sparkle Roll Group Limited have partnered to promote the jeweler in China. The two plan to build a network of six to ten Boucheron stores during the next five years. Sparkle Roll Group will take over Boucherons Shanghai store as part of the expansion deal. The first Boucheron flagship store is planned to debut in Beijing early in 2010.

JA Special Delivery Show Beats Expectations

After a flurry of traffic on the first and second days, the JA NY Special Delivery show, which took place from October 25 to 27 at the Jacob Javits Convention Center, slowed down a bit on its last day as vendors reported better-than-expected traffic. Drew Lawsky, group show director, estimated that the event featured 500 booths and hosted 5,000 visitors over the course of three days. The show was the usual mix of high-end firms and Hong Kong manufacturers, with Italians reporting positive results in getting rid of extra inventory to raise cash for creating new designs. As is always the case at Special Delivery, there were closeout deals for jewelry. Keys remained a pivotal item. The best-selling items were those that would retail for $1,000 or under.

GENERAL:

FTCs Red Flags May Provide Exclusions

The U.S. House of Representatives passed a bill that allows some companies to apply for an exclusion from the Red Flags Rule, which is enforceable as of November 1, 2009. The Red Flags Rule requires businesses to enact an identity theft prevention program. The pending legislation would grant exclusions to the rule if a company knows all of its customers or clients individually or has not experienced incidents of identity theft and if identity theft is rare for businesses of its type. The House bill has now been referred to the Senate for consideration. If approved by the Senate and signed by President Obama, the exclusions will become official. The Jewelers Vigilance Committee (JVC) is monitoring these developments and will be available to assist qualifying companies in preparing their applications for the exclusion, if and when the exclusion provisions do pass. www.jvclegal.org

JVC Trains IRS on Industry Norms

Cecilia L. Gardner, president and chief executive officer (CEO) of the JVC, is training IRS examiners on the complexities of the jewelry industry as the government prepares to examine jewelers’ antimoney laundering (AML) programs. Gardner is educating IRS examiners in the nuances of the jewelry industry, which often involve multiple business models and complex methods of conducting business. Training includes commonly used, legally compliant methods of doing business. The goal is to help examiners understand how the industry thinks and what to expect — and what not to expect — prior to their review of jewelers’ AML programs. As always, JVC welcomes input from industry members on how to advance communication with the IRS.

Plumb Club Appoints Hess

The Plumb Club, an alliance of jewelry, watch and diamonds manufacturers, has appointed Lawrence Hess as its first executive director. In that role, he will be overseeing the construction of a new Plumb Club Pavilion that will debut at JCK Las Vegas in 2010. In the long term, Hess said he will be working to develop new and innovative ways to offer the clubs membership added value and that he looks forward to taking on the challenges and responsibilities the role entails. "I consider it an honor and a privilege to work with some of the most successful and influential firms in our industry,” he said.

IN MEMORIAM:

Jacob Banda 1947-2009
Jacob Banda was the incumbent president of the New York Diamond Dealers Club (DDC), having served in that post since 2000.

"Many of us knew Jacob well, having worked with him for many years, and appreciated his commitment. In IDMA, we all valued his work and dedication to the business. We convey our deepest condolences to his wife and family," said Ronnie VanderLinden, secretary-general of the International Diamond Manufacturers Association (IDMA).

"He was a highly professional and experienced member of the world diamond community, and always wanted to know what was happening in the jewelry pipeline and in CIBJO. Jacob was a dear friend, and I know he will be sorely missed by his many friends and colleagues in CIBJO," said CIBJO President Gaetano Cavalieri.

"With the passing of Jacob Banda, the Diamond Dealers Club in particular and the diamond community in general has lost one its most dedicated public servants. We are all poorer for it. Above all, Jacob was an advocate for the DDC membership, and a man who instinctively understood the point of view of the individual. Our hearts go out to his family at this difficult time," said Moshe Mosbacher, DDC acting president.

Mahendra “Madhu” Mehta 1941-2009
Madhu Mehta of Jayam Manufacturing died earlier in October.

“He was a pioneer as far as the Indian industry’s inroads into Antwerp. Apart from being an important trader, he helped many Indian businesses open offices in Antwerp. He was a good human being and wanted the Indian industry to flourish,” said Sanjay Kothari, managing director of the Gem & Jewellery Export Promotion Council (GJEPC).

"Mehta had been one of [the bank’ earliest clients. First and foremost, he was a gentleman and warm at heart. He was a pioneer of the diamond industry and largely responsible for the growth of the diamond trade between Belgium and India,” said P. N. Prasad, chief executive officer (CEO) of the State Bank of India in Belgium.

STATS:

Armenias Diamond Exports -67%

Armenias cut diamond exports fell 67 percent for the January through September period to 60,875 carats. Exports for the same period plummeted to $39.1 million from $109 million one year ago. The country’s 2008 cut diamond exports were down by 13.2 percent from the 2007 totals to 212,000 carats.

MINING:

ALROSA Could Earn $59M in 2009

Yakutia representatives think ALROSA is on target to produce profits of $58.6 million in 2009, given that Moscow has approved the republics proposals to support the diamond mining company. ALROSA closed 2008 with a net profit of $130 million, based on Russian Accounting Standards (RAS). The projection for 2009 is based upon diamond sales to Gokhran throughout the year and the recent resumption of sales to the market. Rough sales have totaled $1.73 billion so far in 2009.

Econ Watch:
For the week ending October 29, 2009
Oct. 29 Oct. 22 Chng.
$1 = Euro 0.673 0.666 0.007
$1 = Rupee 46.86 46.56 0.3
$1 = Israel Shekel 3.77 3.69 0.08
$1 = Rand 7.82 7.45 0.37
$1 = Canadian Dollar 1.07 1.05 0.02

Precious Metals
Gold $1,047.10 $1,059.70 -$12.60
Platinum $1,337.00 $1,366.00 -$29.00

Stock Indexes Chng.
BSE 16,052.72 16,789.74 -737.02 -4.39%
Dow Jones Avg. 9,962.58 10,079.12 -116.54 -1.16%
FTSE 5,137.72 5,207.36 -69.64 -1.34%
Hang Seng 21,264.99 22,210.52 -945.53 -4.26%
S & P 500 1,066.11 1,092.76 -26.65 -2.44%
Yahoo! Jewelry Index 1,120.68 1,131.37 -10.69 -0.94%

USA
Birks & Mayors $0.59 $0.56 $0.03 5.36%
Blue Nile $62.09 $64.19 -$2.10 -3.27%
Charles & Colvard $0.57 $0.58 -$0.01 -0.87%
DGSE Companies, Inc. $1.52 $1.62 -$0.10 -6.17%
Fuqi International $22.15 $26.52 -$4.37 -16.48%
JCPenney $34.31 $36.80 -$2.49 -6.77%
Kohls $58.23 $59.93 -$1.70 -2.84%
Lazare Kaplan $2.50 $2.50 $0.00 0.00%
LJ International $3.52 $3.46 $0.06 1.73%
Macys $18.37 $19.43 -$1.06 -5.46%
Man Sang $2.42 $2.62 -$0.20 -7.63%
Movado Group $10.98 $13.70 -$2.72 -19.85%
Nordstrom $32.17 $34.36 -$2.19 -6.37%
Saks $5.93 $6.59 -$0.66 -10.02%
Signet $25.71 $28.20 -$2.49 -8.83%
Sothebys $16.34 $18.19 -$1.85 -10.17%
Tiffany $40.80 $41.72 -$0.92 -2.21%
Wal-Mart $50.40 $50.52 -$0.12 -0.24%
Zale $6.39 $7.38 -$0.99 -13.41%

EUROPE
Bulgari €5.86 €5.93 -€0.07 -1.18%
Bijou Brigitte €114.90 €115.89 -€0.99 -0.85%
Damiani €1.09 €1.13 -€0.04 -3.54%
LVMH €71.00 €72.75 -€1.75 -2.41%
Pinault P-R SA €74.66 €80.22 -€5.56 -6.93%
Richemont SA CHF 29.56 CHF 30.38 -CHF 0.82 -2.70%
Swatch Group CHF 244.90 CHF 257.00 -CHF 12.10 -4.71%
Theo Fennell (pence) 49.00 36.53 12.47 34.14%

INDIA (rupee)
Classic Diamond 20.05

Rapaport TradeWire®
Friday, November 06, 2009

News: U.S. pre-holiday demand weak and problematic as Oct. retail sales come in flat for the majors. Jewelers keep inventories tight and promote competitive discounts to entice early shopping. Gold sets record ($1,099/oz) as dollar remains weak. Stable demand for caraters in Far East with shortages in G-I goods. Demand weakens for 2cts+. Strong domestic Indian demand for melee/stars with shortages in lower qualities. Signet 3Q sales -2.5% to $614 mil. same-store sales -1.9%. Blue Nile 3Q sales +2% to $67 mil. but U.S. sales flat, profits +10% to $2.6 mil. Belgium Oct. polished exports -13% to $786 mil., rough imports +11% to $747 mil. ALROSA narrows FY09 loss 40% to $303 mil. in 3Q. Kimberley Process keeps Zimbabwe and pledges to monitor Marange diamonds. Israel to hold KP chair with DRC as vice chair in 2010.

ANNOUNCEMENTS:

RAPAPORT POLISHED DIAMOND TENDER
November 16–19 -- New York

Large selection of melee, rounds and fancies, -6.5 to 1ct+,
from promotional to very fine qualities. Excellent opportunity
for diamond and jewelry manufacturers to purchase at cash market prices.

By Appointment Only

Contact: Myles Schakler
Email: Tenders@diamonds.net
Phone: 1-212-354-9800

Martin Rapaport Special Presentation in Antwerp

New Realities: Challenges and Opportunities
Wednesday, November 18 at 5:00 PM
The Oppenheimer Room
Antwerp World Diamond Center
Hoveniersstraat 22, Antwerp, Belgium

RSVP Required: Belgium@diamonds.net or +323-232-3300

QUOTE OF THE WEEK:

"We are dealing with some of our competitors in liquidation mode. In the short-term, we do feel [price] pressure but its just a short-term phenomena and we get through it ultimately. [A]t the midst and the tail-end of their liquidation sales, they have inventory thats not fresh, the consumers are not seeing exciting new styles. We believe that by differentiating ourselves...with unique programs like our Open Hearts by Jane Seymour and by our LeVian collections, that we have both clearance product plus these new programs."

Mark Light
U.S. division director, CEO
Signet Jewelers Limited

WORLD:

Zimbabwe is Spared

The Kimberley Process (KP) concluded its annual plenary in Namibia on Thursday with the decision to retain Zimbabwe as a member. The Kimberley Process Certification Scheme (KPCS) has adopted a working plan to monitor diamonds mined at the Marange fields in the Chiadzwa region as this area was out of compliance. Zimbabwes two other mines — River Ranch and Murowe — were found to be compliant. Israel will adopt the position of KP chairman beginning in January 2010, with the Democratic Republic of the Congo (DRC) serving as vice chair.

Gold Sets New Record

Gold set a new record Wednesday, hitting an intraday high of $1,099 an ounce in trading after surging past its previous record high of $1,081 an ounce, which was set Tuesday. Gold held at a level that was 7 percent higher than one month ago and 43 percent higher than one year ago. The jump was, in part, due to continued pressure on the greenback and the India Reserve Bank’s recent $6.9 billion gold purchase.

Belgium’s Oct. Polished Exports -13%

Belgiums polished exports in October fell 13.2 percent to $785.5 million from one year ago. Polished diamond imports fell 21 percent to $764 million, giving Belgium a net export total of $21.5 million, compared with an export deficit of $63 million in October 2008. The country’s rough imports increased 12 percent to $746.8 million, its rough exports increased 9.5 percent to $678.1 million and its net rough imports rose 37 percent to $68.7 million. Belgiums net diamond account —net polished exports less net rough imports — improved 58 percent from one year ago, but remained in a deficit of $47.2 million.

RETAIL:

U.S. Retail Offers Mixed Results

According to data compiled by the International Council of Shopping Centers (ICSC), U.S. comparable-chain-store sales in October fell 2 percent for apparel versus a drop of 11 percent one year ago. Luxury stores posted a gain of 6.3 percent compared with a drop of 19.2 percent in October of 2008. Department store chains were flat versus a drop of 10.9 percent in 2008. Total U.S. comparable-store sales rose 2.1 percent, following a 4.2 percent decline one year ago, while overall retail sales slipped 0.8 percent in October, compared with September.

Third quarter results for the majors came in as follows: Macys sales fell 4 percent to $5.5 billion, while its same-store sales fell 3.6 percent; J.C. Penney Company sales fell 3.2 percent to $4.2 billion, with comparable-store sales dropping 3.2 percent; Kohls sales rose 6.5 percent to $4.1 billion, same-store sales decreased 1.3 percent; Saks sales fell 8.9 percent to $622.7 million, with its comparable-store sales declining by 10.1 percent; Nordstrom revenue increased 3.5 percent to $1.87 billion, but its same-store sales decreased 1.2 percent; and Neiman Marcus revenues fell 12 percent to $869 million as its same-store sales declined 13.7 percent. Online retail sales fell 2 percent to $29.6 billion in third quarter.

Signet’s 3Q Sales -3%

Signet Group’s third-quarter sales fell 2.5 percent to $614 million and its same-store sales decreased by 1.9 percent. Sales in the U.S. marketplace, which represent 75 percent of group sales, totaled $459.3 million, with same-store sales down 2.4 percent. Signet’s U.K. sales rose 4.4 percent in local currency, but in dollars, sales fell 4.8 percent to $154.3 million. Same-store sales in the U.K. were flat. The Christmas season sales outlook remains "very uncertain" on both sides of the Atlantic, according to the company.

Blue Niles 3Q Sales +2%, Profits +10%

Blue Niles third quarter sales rose 2.4 percent to $66.9 million and profits rose 10.2 percent to $2.6 million. International sales grew 27.5 percent to $8.8 million. Sales for the U.S. operations fell 0.7 percent to $58.1 million. Gross profit improved 180 basis points to 22.1 percent. Blue Nile cited gross margin improvement due largely to better product sourcing in both diamonds and jewelry.

Black Friday 09 Projected to Draw More Shoppers

ICSC and Goldman Sachs expect U.S. consumers to spend an average of approximately $543 on gifts during this year’s Christmas season, as well as another $133 on gift cards. Consumers expect to spend more this year on gift purchases than they did in 2008, but less on gift cards. Black Friday, which falls on November 27, will be more important to shoppers than it was in 2008, with 16 percent of ICSC’s survey respondents expecting to begin their holiday gift shopping that day, compared with only 10 percent in 2008.

U.S. Online Christmas Sales to Reflect Healthy Bump

Online retail sales during the upcoming U.S. holiday season should reach $44.7 billion, which represents a healthy increase of 8 percent from 2008, according to the latest forecast from Forrester Research. Online sales in the U.S. grew only 5 percent in 2008 for the November and December period. This year, retailers will manage to the bottom line, which will change some of the tactics they have employed in the past, such as free, unfettered shipping and prolonged discounts. Consumers can also expect limited shipping options and limited-time sales online.

Rapaport Broadcast

The Everlon Diamond Knot commercial will launch in the U.S. on November 16, which you may view in this broadcast. See how the industrys biggest diamond campaign is already unfolding across the Internet at select online stores. WATCH NOW

Court Dismisses $60M Suit Against Yehuda

Jurors dismissed Blue Niles $60.1 million claim against The Yehuda Diamond Company, reaffirming Yehuda Diamonds right to compare the prices of its clarity-enhanced diamonds with those of the untreated diamonds sold at bluenile.com. Blue Nile filed the suit to prevent Yehuda Diamond from comparing these prices, but Yehuda Diamond argued that comparisons were in the best interest of consumers.

Gembrooke Opens for Business

Gembrooke opened as a new trading firm based out of Short Hills, New Jersey, and is offering a Solenza Diamond brand to select fine jewelry retailers in the U.S. and Canada. The Solenza brand offers a loose diamond program and a full collection of Solenza Jewelry. The company was founded by Joseph Srodawa, the former managing director for Overseas Diamonds and the isee2 brand in North America.

FTC Delays Red Flags Rule Enforcement

The Federal Trade Commission (FTC) delayed enforcement of the Red Flags Rule until June 1, 2010, which affords jewelers covered by the rule more time to develop their Identity Theft Prevention Programs. Any jeweler that is a “creditor” with “covered accounts,” as those terms are defined by the rule, must develop a program by the new June 1, 2010 deadline. The Jewelers Vigilance Committee (JVC) has created a Red Flags Rule Compliance Kit, which is sponsored by GE Money. For more information, visit www.jvclegal.org.

Zale Shares Slip

Shares in Zale slid by double digits following the release of its earnings report, which discussed its cooperation with a Securities and Exchange Commission (SEC) probe. Zale shares fell 25.98 percent on October 30 to close at $4.73 in New York. Though the jewelry chain’s shares have gained slightly this week, they have traded in a range of $4.84 and $5.27, a decline of 67 percent from one year ago.

MINING:

ALROSA Reduces Debt

ALROSA reduced its fiscal loss in the third quarter to $303 million from $505 million in the second quarter, based upon Russian Accounting Standards. ALROSA predicts that it will close its fiscal year 2009 with a net profit of $58.5 million, down from a net profit of $130.1 million in 2008. Meanwhile, the proceeds from ALROSAs recent $620 million sale of its gas assets were used to pay down debt, enabling the mining giant to reduce it by $1 billion so far in the current quarter.

ECON WATCH:
For the week ending November 5, 2009
Nov. 5 Oct. 29 Chng.
$1 = Euro 0.671 0.673 -0.002
$1 = Rupee 46.94 46.86 0.1
$1 = Israel Shekel 3.78 3.77 0.01
$1 = Rand 7.61 7.82 -0.21
$1 = Canadian Dollar 1.06 1.07 -0.01

Precious Metals
Gold $1,089.80 $1,047.10 $42.70
Platinum $1,355.00 $1,337.00 $18.00

Stock Indexes Chng.
BSE 16,063.90 16,052.72 11.18 0.07%
Dow Jones Avg. 10,006.34 9,962.58 43.76 0.44%
FTSE 5,125.64 5,137.72 -12.08 -0.24%
Hang Seng 21,479.98 21,264.99 214.99 1.01%
S & P 500 1,066.63 1,066.11 0.52 0.05%
Yahoo! Jewelry Index 1,124.83 1,120.68 4.15 0.37%

USA
Birks & Mayors $0.57 $0.59 -$0.02 -3.39%
Blue Nile $58.62 $62.09 -$3.47 -5.59%
Charles & Colvard $0.58 $0.57 $0.01 1.75%
DGSE Companies, Inc. $1.70 $1.52 $0.18 11.84%
Fuqi International $21.27 $22.15 -$0.88 -3.97%
JCPenney $30.28 $34.31 -$4.03 -11.75%
Kohls $55.91 $58.23 -$2.32 -3.98%
Lazare Kaplan $2.50 $2.50 $0.00 0.00%
LJ International $3.15 $3.52 -$0.37 -10.51%
Macys $18.03 $18.37 -$0.34 -1.85%
Man Sang $2.60 $2.42 $0.18 7.44%
Movado Group $11.28 $10.98 $0.30 2.73%
Nordstrom $33.91 $32.17 $1.74 5.41%
Saks $5.90 $5.93 -$0.03 -0.51%
Signet $26.69 $25.71 $0.98 3.81%
Sothebys $18.15 $16.34 $1.81 11.08%
Tiffany $41.27 $40.80 $0.47 1.15%
Wal-Mart $51.24 $50.40 $0.84 1.67%
Zale $4.88 $6.39 -$1.51 -23.63%

EUROPE
Bulgari €5.85 €5.86 -€0.01 -0.17%
Bijou Brigitte €117.00 €114.90 €2.10 1.83%
Damiani €1.09 €1.09 €0.00 0.00%
LVMH €71.32 €71.00 €0.32 0.45%
Pinault P-R SA €79.01 €74.66 €4.35 5.83%
Richemont SA CHF 29.34 CHF 29.56 -CHF 0.22 -0.74%
Swatch Group CHF 249.80 CHF 244.90 CHF 4.90 2.00%
Theo Fennell (pence) 49.50 49.00 0.50 1.02%

INDIA (rupee)
Classic Diamond 20.35 20.05 0.30 1.50%
Gitanjali Gems 112.05 113.80 -1.75 -1.54%
Goldiam Intl 34.35 36.15 -1.80 -4.98%
Rajesh Exports 77.05 75.65 1.40 1.85%
Ren. Jewellery 40.65 43.20 -2.55 -5.90%
Su-Raj Diamonds 45.70 44.20 1.50 3.39%
Titan 1,271.50 1,230.60 40.90 3.32%
Zodiac JRD 23.75 25.20 -1.45 -5.75%
Suashish Diamonds 306.45 327.70 -21.25 -6.48%

NEW ZEALAND
Michael Hill NZD 0.66 NZD 0.65 NZD 0.01 1.54%

MINING STOCKS
CANADA
Harry Winston CAD 9.65 CAD 9.59 CAD 0.06 0.63%
Mountain Province CAD 2.91 CAD 3.07 -CAD 0.16 -5.21%
Peregrine Diamonds CAD 2.25 CAD 2.37 -CAD 0.12 -5.06%
Rockwell Diamonds CAD 0.07 CAD 0.07 CAD 0.00 0.00%
Shore Gold CAD 0.83 CAD 0.88 -CAD 0.05 -5.68%
Stornoway Diamond CAD 0.33 CAD 0.31 CAD 0.02 6.45%
True North Gems CAD 0.09 CAD 0.10 -CAD 0.01 -10.00%
UK (pence)
African Diamonds 35.50 30.60 4.9 16.01%
Anglo American 2,344.00 2,300.00 44.0 1.91%
BHP Billiton 1,690.00 1,720.00 -30.0 -1.74%
Firestone Diamonds 32.35 31.30 1.1 3.35%
Gem Diamonds 245.00 241.20 3.8 1.58%
Gemfields 6.50 6.89 -0.4 -5.66%
Mwana Africa 13.38 12.50 0.9 7.04%
Namakwa Diamonds 34.01 35.50 -1.5 -4.20%
Petra Diamonds 70.50 73.75 -3.3 -4.41%
Rio Tinto plc 2,884.11 2,786.00 98.1 3.52%

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Rapaport TradeWire®
Friday, November 27, 2009

News: Heavy retail discounts expected as Christmas shopping begins. Weaker than expected 3Q consumer spending causes U.S. to revise GPD growth down to +2.8%. Improved trading for 1-3 ct. top quality certs. Consumer confidence remains weak but steady. Weakening dollar boosts gold to new record ($1,196/oz.) with 3Q demand for gold jewelry -30%. Debswana to invest $500m. to extend Jwaneng mine life. ALROSA Nov. sales $388m. Tiffany 3Q sales -3% to $598m., with U.S. sales -9%, Asia Pacific +10% and Europe +12%, net profit flat at $43m. Signet 3Q sales -3% to $614m., net loss of $7m. vs. net loss of $15m. a year earlier. Zale Corp. 1Q sales -10% to $329m., net loss of $58m., vs. net loss of $48m. a year earlier. Gitanjali Gems 2Q sales +36% to $378m., net profits +8% to $11m.

ANNOUNCEMENTS:

RAPAPORT NEW YORK POLISHED DIAMOND TENDER
December 7-10

Over 40,000 cts of melee, rounds and fancies, -2.5 sieve to 0.33 ct+,
from promotional to very fine qualities. Excellent opportunity
for diamond and jewelry manufacturers to purchase diamonds at cash market prices.

By Appointment Only
Contact: Kathryn Langner
Email: Tenders@diamonds.net
Phone: 1-212-354-9800

QUOTE OF THE WEEK:

"Jewelers are the first to get hurt and the last better. You cant eat [jewelry], you cant drive it and you cant put it in your gas tank. Weve seen about a 40 percent drop in business, then our super clients, as we call them — movie stars or wealthy business owners — and that has dropped by 85 or 90 percent. They just stopped buying big items, which can be anything from $20,000 to well over $100,000, and that business just disappeared, which has been a big deal for us. A lot of people had the attitude I dont want people to see me upgrading my jewelry when people are out of work and suffering, and I think that may be fading, though."

Tim Branscomb
Sierra~West Jewelers
Orem, Utah

RETAIL:

Tiffany 3Q Sales -3%, Profit Flat

Tiffany & Co. reported a 2.9 percent drop in worldwide sales for its third quarter at $598.2 million. Net earnings were flat at $43.3 million. U.S. sales fell 9 percent, while sales across Asia-Pacific rose 10 percent and Europe reported a 12 percent increase. Comparable store sales company-wide fell 3 percent, led by a 10 percent drop in the U.S. Same-store sales rose 5 percent in Asia-Pacific and 6 percent in Europe. Sales at Tiffanys New York flagship store declined 8 percent. Tiffany reduced purchases of rough diamonds in response to soft consumer demand for polished goods. The cost of sales rose 0.5 percent to $270.4 million.

Zale 1Q Sales -10%, Widens Losses

Zales revenues fell 9.6 percent to $329.2 million during the first quarter of fiscal 2010 and same-store sales dropped 6.8 percent, compared with a same-store sales decline of 3.7 percent one year ago. Zale reported a loss of $57.6 million, an increase from a loss of $48.4 million.

Zale closed 209 stores in the past 12 months. Inventory as of October 31 was $902 million, a decrease of approximately $100 million from October 2008. Zale had an outstanding debt of $466 million at the close of the quarter, compared with the $369 million debt recorded one year ago. Zale expects to continue reducing operating costs over the next 12 months, according to chief financial officer (CFO) Matt Appel.

Signet 3Q Sales -3%, Narrows Losses

Signet Groups sales fell 2.5 percent to $613.7 million during its third fiscal quarter, while its same-store sales declined 1.9 percent; led by a 2.4 percent drop in the U.S. Signet reported a loss of $7 million, an improvement from the $15.1 million loss one year ago. Signets U.S. sales fell 1.7 percent to $459.3 million, with its average selling price down 3.2 percent at its mall brand stores and 7.7 percent at its Jared stores. In the U.K., the retailers sales rose 4.5 percent based upon constant exchange rates, but in dollars, they dipped 4.7 percent to $154.4 million. Comparable-store sales in the U.K. were flat. Diamonds performed well at both Ernest Jones and H.Samuel, with the average selling prices rising 12 percent and 9.6 percent, respectively.

The retailer reduced its capital expenditure by half to approximately $55 million during the third quarter and revised its debt reduction plan to range between $300 million to $350 million, up from its original estimate of $175 million to $225 million. Signets net debt was $160.7 million, down from the $577.8 million net debt it posted one year ago.

ShopNBC Jewelry Sales Drop

Third-quarter sales at ShopNBC fell 4.3 percent to $119.4 million. Watches, coins and collectibles replaced jewelry as the top-selling category, representing 33 percent of the product mix. Jewelry sales represented 26 percent of the mix, down from 33 percent one year ago. The average price point for all products fell to $95 from $187 one year ago. ShopNBC narrowed its return rate to 21.9 percent from 29.2 percent one year earlier. The retailer also added 58 new show titles during the third quarter, including one featuring Suzanne Somers jewelry and another titled "Brilliante Purely Platinum."

U.S. Weekly Chain Store Sales +3%

U.S. weekly chain-store sales rose by 3.3 percent year on year for the week that ended November 21, 2009, according to the International Council of Shopping Centers (ICSC) and Goldman Sachs. The weeks comparable-store sales increase reflected an easy year-on-year comparison, given the 0.8 percent drop recorded one year ago. Sales were flat compared with the previous week.

Su-Raj 2Q Sales +35%

Su-Raj Diamonds sales rose 35 percent to $157 million in the second fiscal quarter with diamonds sales increasing 35 percent to $43.2 million and jewelry sales growing 36 percent to $113.9 million. Net profits increased 41 percent to $2.9 million.

Asian Star 2Q Sales -13%

Asian Stars sales fell 13 percent to $70.6 million in the second fiscal quarter as diamond sales decreased 14 percent to $69 million and jewelry sales rose 35 percent to $5.1 million. Intersegment sales amounted to $3.5 million. Net profits dropped 7 percent to $2.2 million.

Suashish 2Q Sales +23%

Suashish Diamonds sales rose 23 percent to $76.6 million in its second fiscal quarter and posted a net profit of $2.5 million, compared with a net loss of $6.3 million one year ago.

Titan 2Q Jewelry Sales +9%

Titan Industries’ jewelry sales rose 9 percent to $177.3 million in second fiscal quarter, while its watch sales fell 3 percent to $63.7 million. The groups net profits fell 12 percent to $16.7 million.

Gitanjali 2Q Sales +36%

Gitanjali Gems sales rose 36 percent to $377.5 million during its second fiscal quarter. The manufacturer and retailers diamond revenues increased 26 percent $195.6 million, while jewelry revenues grew 31 percent to $202.9 million. Its intersegment sales amounted to $21.1 million. Revenues at Gitanjali’s India operations grew 62 percent, while in the rest of the world sales rose 22 percent.

Rapaport Broadcast

Are you ready for the changing demographics in the United States? Industry consultant Hedda Schupak explains these changes and what steps manufacturers and retailers should be taking to grow the business. WATCH NOW.

ECONOMY:

Shopping Lists Have Less Jewelry

Fewer consumers — just 11 percent — plan to buy jewelry as a Christmas gift this year, according to a recent pre-holiday study conducted by the Jewelry Consumer Opinion Council (JCOC), compared with 14 percent of respondents from its 2008 study. Of those buying jewelry, 50 percent said they will spend about the same amount as they had in 2008, but the approximate average amount they will spend was lower than in 2008.

Another recent survey from the National Retail Federation (NRF) and BIGresearch found that 20.8 percent of shoppers wanted jewelry for Christmas, as opposed to approximately 24.5 percent in 2008.

Consumer Confidence Steadies

The Conference Board Consumer Confidence Index® for the U.S. improved slightly for the month of November at 49.5 points, up from 44.7 points one year ago. The Index stood at 48.7 points in October 2009. The Present Situation Index, however, plummeted to 21 points this November, compared with 42.3 points in November 2008. The Expectations Index registered a gain of 22.3 points from one year ago at 68.5 points. Slightly fewer consumers expected employment and business conditions to worsen. Income expectations however remained pessimistic and consumers are entering the holiday season in a very frugal mood.

Many Factors Weigh on Spending Predictions

Novembers overall sales performance relies heavily on the cash-register sales generated on November 27, which is Black Friday or "Bargain Friday," as it is being referred to this year by ICSC given the heavy discounts expected. ICSC Research expects that day and that subsequent Saturday to be very strong, which should boost November chain store sales up 4 percent to 6 percent as easy year-over-year comparisons will dominate results. Sales in November 2008 fell almost 8 percent.

ICSC predicts that 26 percent of U.S. households will shop on Black Friday. Retail bargains could attract 134 million shoppers to stores between November 27 and 29, according to BIGresearch for the National Retail Federation (NRF), a higher count than the 128 million people who planned to shop on Thanksgiving weekend 2008. Fifty-seven million people said that they will definitely hit the stores this weekend, while another 77 million are waiting to see what retailers are planning before heading out the door. Discount and department stores will be the biggest attractions for consumers this coming weekend, with 66.3 percent and 62.4 percent, respectively, planning on heading to their favorite big box store.

The Conference Board found that, on average, U.S. households will spend $390 on Christmas gifts this year, a 6.7 percent drop from 2008. The average projected spending per household was quite lower than an earlier survey taken by the NRF in which average spending on gifts was projected to be about $508.

Only 8 percent of shoppers expected to spend more than $1,000 on Christmas gifts, according to The Conference Boards findings. Approximately thirty percent of the respondents said they planned to spend between $400 and $999, while 42 percent planned to spend between $100 and $399. Twenty-two percent stated that they will spend less than $100. Households with income of more than $50,000 expected to spend, on average, $514 on Christmas gifts, while those with incomes ranging from $35,000 to $50,000 planned to spend an average of $343.

A lot more shoppers are feeling stressed by debt with 93 percent saying theyll spend less or about the same as 2008, according to an Associated Press-GfK poll. About 20 percent say they are suffering from debt-related stress, up from 15 percent in the spring. Most people — 80 percent — say theyll use mostly cash to pay for their holiday shopping and that generally means buying less.

"Cash serves as a very direct governing force upon spending," says Dr. Alan Hilfer, director of psychology at Maimonides Medical Center in Brooklyn, New York. "If you have $100 in your pocket and thats all you can spend, youll look around and make a decision based on the amount of money you have." Credit cards, on the other hand, allow people to make more impulse purchases.

Looking into next year, consumers wont be in much of a mood to go on a shopping spree because of high unemployment and hard-to-get credit, according to the National Association for Business Economics (NABE). Consumer spending will rise a lackluster 2 percent next year, one of the forces restraining the strength of the recovery, NABE forecasters said. Such spending fell 0.2 percent in 2008. Unemployment, now at 10.2 percent, will average 9.8 percent next year, they said.

MINING:

ALROSA Sales Net $388M

ALROSA sold $388 million worth of diamonds in November and noted a significant increase in the demand for rough. The upward trend was due to deficits in pipeline from first half production closures. ALROSA sold $327 million of rough to the market, with the remainder going to the state diamond depository, Gokhran. Companys sales for the year to date have amounted to approximately $2.42 billion.

ALROSA redeemed three tranches of euro commercial paper (ECP) totaling $232 million in November. ALROSA has been borrowing heavily to finance the construction of three deep mines at a cost of approximately $1 billion each. Its net debt was approximately $5 billion at the end of July, but plans to reduce its debt to $3.2 billion by the end of 2010, the companys president, Fyodor Andreyev, has said. The company could, depending upon market conditions, issue between $347.2 million and $1 billion in bonds in December or the start of 2010.

Debswana Approves Jwaneng Expansion

Debswana estimated that it would spend $3 billion during the next 15 years extending the life of its Jwaneng diamond mine. The expansion project, which De Beers and Botswana called Cut 8, would give Debswana access to 95 million carats of rough. Debswana will invest $500 million in capital expenditure and taking into account all project stages, including feasibility, design, implementation and mining operations, as well as the cost of the plant and equipment. Cut 8 will ensure profitable and continuous production at the mine until at least 2025. At present, Jwaneng contributes approximately 70 percent of Debswana’s total revenue.

ECON WATCH:
For the week ending November 26, 2009
Nov. 26 Nov. 19 Chng.
$1 = Euro 0.667 0.673 -0.006
$1 = Rupee 46.63 46.69 -0.1
$1 = Israel Shekel 3.75 3.80 -0.05
$1 = Rand 7.37 7.53 -0.16
$1 = Canadian Dollar 1.05 1.07 -0.02

Precious Metals
Gold $1,189.90 $1,144.30 $45.60
Platinum $1,452.00 $1,439.00 $13.00

Stock Indexes Chng.
BSE 16,854.93 16,785.65 69.28 0.41%
Dow Jones Avg. 10,464.40 10,332.44 131.96 1.28%
FTSE 5,194.13 5,267.70 -73.57 -1.40%
Hang Seng 22,210.41 22,643.16 -432.75 -1.91%
S & P 500 1,110.63 1,094.90 15.73 1.44%
Yahoo! Jewelry Index 1,191.77 1,120.52 71.25 6.36%

USA
Birks & Mayors $0.60 $0.61 -$0.01 -1.64%
Blue Nile $57.61 $57.28 $0.33 0.58%
Charles & Colvard $1.25 $1.08 $0.17 15.74%
DGSE Companies, Inc. $1.35 $1.25 $0.10 8.00%
Fuqi International $22.00 $20.18 $1.82 9.02%
JCPenney $30.64 $29.48 $1.16 3.93%
Kohls $55.54 $54.32 $1.22 2.25%
Lazare Kaplan $2.50 $2.50 $0.00 0.00%
LJ International $3.23 $3.26 -$0.03 -0.92%
Macys $17.56 $17.37 $0.19 1.09%
Man Sang $2.76 $2.73 $0.03 1.10%
Movado Group $10.54 $10.55 -$0.01 -0.09%
Nordstrom $34.83 $34.16 $0.67 1.96%
Saks $6.74 $6.67 $0.07 1.05%
Signet $26.37 $27.57 -$1.20 -4.35%
Sothebys $19.98 $19.67 $0.31 1.58%
Tiffany $43.89 $41.16 $2.73 6.63%
Walmart $54.96 $54.57 $0.39 0.71%
Zale $5.26 $4.60 $0.66 14.35%

EUROPE
Bulgari €6.03 €6.10 -€0.07 -1.15%
Bijou Brigitte €120.00 €121.10 -€1.10 -0.91%
Damiani €1.01 €1.04 -€0.03 -2.88%
LVMH €70.48 €75.90 -€5.42 -7.14%
Pinault P-R SA €80.72 €82.13 -€1.41 -1.72%
Richemont SA CHF 32.83 CHF 32.21 CHF 0.62 1.92%
Swatch Group CHF 252.50 CHF 255.90 -CHF 3.40 -1.33%
Theo Fennell (pence) 50.00 49.00 1.00 2.04%

INDIA (rupee)
Classic Diamond 21.80 22.30 -0.50 -2.24%
Gitanjali Gems 115.70 116.20 -0.50 -0.43%
Goldiam Intl 35.00 35.40 -0.40 -1.13%
Rajesh Exports 77.60 81.20 -3.60 -4.43%
Ren. Jewellery 49.20 45.65 3.55 7.78%
Su-Raj Diamonds 45.80 47.60 -1.80 -3.78%
Titan 1,280.70 1,402.95 -122.25 -8.71%
Zodiac JRD 23.05 24.50 -1.45 -5.92%
Suashish Diamonds 323.10 334.55 -11.45 -3.42%

NEW ZEALAND
Michael Hill NZD 0.62 NZD 0.62 NZD 0.00 0.00%

MINING STOCKS
CANADA
Harry Winston CAD 10.13 CAD 10.55 -CAD 0.42 -3.98%
Lucara Diamond CAD 1.11 CAD 1.13 -CAD 0.02 -1.77%
Mountain Province CAD 2.58 CAD 2.80 -CAD 0.22 -7.86%
Peregrine Diamonds CAD 1.55 CAD 1.71 -CAD 0.16 -9.36%
Rockwell Diamonds CAD 0.06 CAD 0.06 CAD 0.00 0.00%
Shore Gold CAD 0.91 CAD 0.76 CAD 0.15 19.74%
Stornoway Diamond CAD 0.25 CAD 0.28 -CAD 0.03 -10.71%
True North Gems CAD 0.10 CAD 0.09 CAD 0.01 11.11%
UK (pence)
African Diamonds 40.00 45.00 -5.0 -11.11%
Anglo American 2,563.00 2,527.00 36.0 1.42%
BHP Billiton 1,834.50 1,826.50 8.0 0.44%
Firestone Diamonds 30.25 31.50 -1.3 -3.97%
Gem Diamonds 207.10 231.50 -24.4 -10.54%
Gemfields 6.14 6.03 0.1 1.82%
Mwana Africa 14.34 15.50 -1.2 -7.48%
Namakwa Diamonds 30.89 33.47 -2.6 -7.71%
Petra Diamonds 59.28 70.25 -11.0 -15.62%
Rio Tinto plc 2,994.50 3,217.00 -222.5 -6.92%

Rapaport Trade.
Friday, December 04, 2009

News: Bargain hunting dominated Black Friday as retailers competed to attract spending-conscious shoppers. Traffic down slightly, price points down. Sales flat with strong online growth where average ticket for jewelry +25% on Friday and +14% on Cyber Monday. Gold hits record $1,226/oz. Cutting centers stable but below expectations for the season. De Beers shareholders agree to $1b. investment as the company seeks to lower debt. Christie’s Hong Kong sells $48m. (89% sold by lot) with cushion shape, 5 ct. vivid pink ring going for record $10.8m. ($2.2m/ct). Petra Diamonds sells 168 ct. white rough diamond for $6.28m. ($38k/ct). Japan’s Oct. diamond imports -11% to $66.4m.

ANNOUNCEMENTS:

RAPAPORT NEW YORK POLISHED DIAMOND TENDER
December 7-10

Over 40,000 carats of polished round and fancy diamonds
ranging in size from -2 sieve plate to 1ct +. Qualities
vary from promotional to very fine. Excellent buying
opportunity for diamond and jewelry manufacturers.

By Appointment Only
Contact: Kathryn Langner
Email: Tenders@diamonds.net
Phone: 1-212-354-9800

QUOTE OF THE WEEK:

"BJs is working on some new prototype fixturing and elements within the fixturing. There will be more attractive lighting. But we feel [that jewelry] is a signature business and when the economy rebounds, that will rebound as well. I think the club members find [jewelry] fun and exciting and it signals that were a quality house with 14-karat gold jewelry and diamonds and so on. The [counter] footprint will probably be smaller because some of the old octagons we have are pretty unproductive for us. Were not walking away from jewelry in any manner."

Laura Sen
President & CEO
BJs Wholesale Club

WORLD:

Rapaport Broadcast

See the 5-carat vivid pink diamond ring that sold for $10,776,660; a round, 16.99-carat, D, flawless diamond that sold for $2,916,567; and a 9.03-carat, fancy yellow diamond ring that sold for $1,537,355 during Christies Hong Kong jewels sale this week. The broadcast also wraps up retail and jewelry sales activity for the Thanksgiving weekend and Cyber Monday. Store traffic was mixed, depending upon which group tracked the numbers, but average individual spending rates remained under pressure. Internet jewelry sales performed better than most categories. WATCH NOW!

RETAIL:

U.S. Chain-Store Sales Drop in Nov.

Novembers comparable store sales at the nations retail chains fell 0.3 percent, which was considerably worse than expected. Earlier in November, the International Council of Shopping Centers (ICSC) and Goldman Sachs projected a 6 percent to 8 percent increase, which would have somewhat offset the 7.7 percent sales decline that occurred during November 2008. Fewer shoppers completed their Christmas gift buying during the Thanksgiving week and therefore, ICSC expects this factor to boost December sales.

Here are the numbers for November:

Macys same-store sales fell 6.1 percent and total sales fell 6.3 percent to $2.2 billion. Kohls same-store sales rose 3.3 percent and total sales rose 7.1 percent to $1.9 billion. JCPenney same-store sales fell 5.9 percent and total sales fell 5.2 percent to $1.7 billion. Nordstrom same-store sales rose 2.2 percent and total sales rose 5.9 percent to $749 million. Neiman Marcus same-store sales fell 7.5 percent and total sales fell 5.9 percent to $305 million. Saks same-store sales fell 26.1 percent, total sales fell 25 percent to $245.1 million.

Costco Wholesale same-store sales rose 6 percent and total sales rose 8.8 percent to $6 billion. BJs Wholesale same-store sales rose 1 percent and total sales rose 6.4 percent to $833.6 million

Retail Metrics called Novembers numbers “a giant miss” for the retail industry.

SpendingPulse Reports 5% Increase in Jewelry Sales

Jewelry sales posted a 4.6 increase in November compared with one year ago, which marked the third consecutive monthly increase for this category, according to SpendingPulse, a macroeconomic report from MasterCard Advisors that tracks national retail sales. The group concluded that overall spending results were mixed as the U.S. Christmas shopping season commenced. Black Friday doorbuster discounts were effective, but comparisons were difficult, given that there were also improved sales on Black Friday 2008. Online activity continued to show strong growth, with sales of all merchandise increasing 12.3 percent in November.

Finlay Sells $98M of Merchandise Since Aug.

Since filing Chapter 11 bankruptcy on August 5, 2009, Finlay Enterprises has sold $97.5 million in inventory, according to its latest monthly operating report, which was filed with the U.S. Bankruptcy Court in New York. Since filing for bankruptcy, Finlay has recorded a net loss of $109.4 million. The companys total assets and liabilities as of October 31, 2009 were $172.4 million, down from $287.3 million on August 5.

Invitation to Bid for Henry Dunay Designs Inventory

Those interested in bidding for inventory of Henry Dunay Designs Inc. have until December 15 to submit a final and best offer. A court-sanctioned auction will be held on the following day. Surya Capital had already proposed a bid of $3,405,000 in cash at closing. Interested parties should contact Henry Dunay Designs’ counsel, Jay L. Silverberg, Esq. of Sills Cummis & Gross P.C. at 212.643.7000.

DIAMOND STATS:

Japans Oct. Diamond Imports -11%

Japan’s polished diamond imports fell 11.4 percent to $66.4 million in October. Polished imports from Belgium dropped 47.9 percent to $11.1 million, while those from India fell 28.4 percent to $27.1 million. Polished imports from Israel declined 32 percent to $4.6 million. Japan increased its polished imports from Hong Kong by 49 percent to $6.8 million and from Thailand by 11 percent to $3.7 million.

INDUSTRY:

Botswana Pushes Creation of Diamond-Trading Market

Akolang Tombale, whose official title is coordinator of Botswana’s Diamond Hub project, stressed the need for Botswana to ensure that its diamond legacy stretches beyond the realm of mining. He said that Botswana’s current need is to venture into the downstream diamond industry without presenting Gaborone as a threat to any of the established trading centers.

Despite the economic downturn, Botswana has already seen significant progress and investment in developing the downstream diamond industry. De Beers, which celebrated 40 years of partnership with the country this year, set up its main sorting facility in Gaborone in March 2008 and established the Diamond Trading Company Botswana (DTCB) to supply diamonds to 16 manufacturers there. To date, 15 factories are up and running, with the most recent to launch soon. In addition, under the guidance of DTCB sightholder Safdico, the Diamond Technology Park was launched in January 2009 and is being billed as the central hub of Botswana’s diamond-cutting industry.

The time is right to take the next step in building this hub by encouraging third-party trading within the country. “The idea is to have a window that we can take some part of our production and market it through the platform,” Tombale said. “Secondly, we need to encourage people who are marketing and trading secondary diamonds to set up some of their operations in Botswana.”

Botswana is planning to host rough diamond tenders of stones from Debswana and other new mines and to create a facility for third parties to host tenders. Tombale said he hopes the new diamond-trading platform will be in place by the end of 2010, allowing others to trade in the country, while the independent marketing of Botswana diamonds will probably come in 2011.

Botswana tenders should not work against the De Beers format, but rather complement it, though Tombale added that he believes the market will continue to move further away from the “cartel mentality,” whereby “we all need to learn that there is no longer one individual that sets the price benchmark.”

MINING:

Shareholders Agree to Invest $1B in De Beers

De Beers shareholders agreed in principle to invest up to $1 billion in the firm in order to reduce the level of debt it will need to undertake for refinancing. The investment would be made through a rights issue and if it is executed, it will be split proportionally between the three shareholders: Anglo American, which holds a 45 percent stake in De Beers, the Oppenheimer family, which has a 40 percent share, and the government of Botswana, with 15 percent. De Beers is negotiating with banks to renew a $1.5 billion loan facility that is due in March. De Beers reported a debt of $4.06 billion in the interim financial report it issued in June.

Petra Raises $120M and Sells 168-Ct. Stone

Petra Diamonds raised $120 million through a share placement. The funds will be used to repay $24.6 million of an $80 million loan from Al Rajhi Holding as part of the option to increase Petra’s holding in the Cullinan mine to 74 percent. The rest of the proceeds will be used for working capital.

This past week, Petra sold a 168-carat special white diamond for $6.28 million or approximately $37,380 per carat. This rough diamond was of exceptional color and quality and was recovered along with three other special stones: a 507.55-carat, a 58.50-carat and a 53.30-carat stone. The two smaller diamonds were sold for $2.8 million, but the 507.55-carat diamond has not yet been offered for sale.

Rockwell Diamonds to Raise $12M

Rockwell Diamonds plans to raise $12 million through a fair rights offering and private placement. Of 67 million shares in the fair rights offering, 47.5 million have already been guaranteed by Daboll Consultants Limited, which is associated with the Steinmetz Diamond Group. Rockwell also plans a private placement of an additional 140 million shares and Godia Capital Partners GP Limited of China has already subscribed for a minimum of 47.5 million shares. Both Godia and Daboll have placed their subscription funds into escrow.

In a separate development, Rockwell reported that the average sales price achieved for rough in November had risen 20 percent since dropping to a low point in July. The average price per carat at tender in November was $1,434. Rockwell did not provide the total value of the sale. The company reported that demand for rough in the 1-carat to 10-carat range remained strong.

Lucara to Raise $96M

Lucara plans to raise $95.1 million through a private placement of shares and use these funds to realize commitments related to the AK6 diamond project, which it recently acquired from De Beers. The placement is expected to close by December 16, 2009.

Zimbabwe’s Military Elite Maintains Control of Marange Fields

Key investors in Canadile and New Reclamation Group, the two firms selected to work Zimbabwes Marange fields, are part of the nations elite military class and have positioned themselves to profit from the mine and to increase their political power. The Sunday Times of London reported that mines minister Obert Mpofu, who allegedly awarded the contracts without the knowledge or approval of Prime Minister Morgan Tsvangarai, acted in direct contravention of a High Court order that awarded the Marange claims to African Consolidated Resources (ACR).

One director listed with Canadile is Lovemore Kurotwe, who commanded a battalion that massacred civilians at Entumbane near Bulawayo, shortly after President Robert Mugabe came into power in the wake of Zimbabwe obtaining independence. Kurotwe reportedly has an Israeli partner who has been in jail in Angola for smuggling.

Robert Mhlanga is allegedly involved with New Reclamation. Mhlanga is said to have reaped a fortune through various projects in Africa and was active in the Democratic Republic of the Congos diamond trade. He was also a key witness in an attempt to frame then-opposition leader Tsvangirai for treason in 2003, testifying that he had contact with an Israeli spy who claimed he was hired by Tsvangarai to kill Mugabe.

Another issue covered by the Sunday Times was that Zimbabwe plans to convert the Harare domestic air terminal into a diamond-cutting center, which would enable the country to cut and polish rough and then ship these goods out in order to avoid Kimberley Process (KP) checks.

Zimbabwe is willing to engage ACR in order to resolve the Marange ownership dispute, according to deputy mines minister Murisi Zwizwai. He said the issue must be solved to benefit everyone. Meanwhile, the Center for Research and Development in Mutare stated that despite the governments agreement to pull the military out of the Marange, based upon a work plan agreement with the KP, this action has been ignored. Center director Farai Maguwu told VOA Studio 7 that soldiers had only vacated the claims being worked by New Reclamation partner Mbada Diamonds and Canadile.

ECON WATCH:
For the week ending December 3, 2009
Dec. 3 Nov. 26 Chng.
$1 = Euro 0.662 0.667 -0.005
$1 = Rupee 46.10 46.63 -0.5
$1 = Israel Shekel 3.77 3.75 0.02
$1 = Rand 7.34 7.37 -0.03
$1 = Canadian Dollar 1.05 1.05 0.00

Precious Metals
Gold $1,210.05 $1,189.90 $20.15
Platinum $1,487.00 $1,452.00 $35.00

Stock Indexes Chng.
BSE 17,185.68 16,854.93 330.75 1.96%
Dow Jones Avg. 10,352.17 10,464.40 -112.23 -1.07%
FTSE 5,313.00 5,194.13 118.87 2.29%
Hang Seng 22,553.87 22,210.41 343.46 1.55%
S & P 500 1,098.74 1,110.63 -11.89 -1.07%
Yahoo! Jewelry Index 1,155.07 1,191.77 -36.70 -3.08%

USA
Birks & Mayors $0.70 $0.60 $0.10 16.67%
Blue Nile $58.70 $57.61 $1.09 1.89%
Charles & Colvard $1.31 $1.25 $0.06 4.80%
DGSE Companies, Inc. $1.31 $1.35 -$0.04 -2.96%
Fuqi International $20.47 $22.00 -$1.53 -6.95%
JCPenney $28.44 $30.64 -$2.20 -7.18%
Kohls $54.17 $55.54 -$1.37 -2.47%
Lazare Kaplan $2.50 $2.50 $0.00 0.00%
LJ International $3.30 $3.23 $0.07 2.17%
Macys $15.86 $17.56 -$1.70 -9.68%
Man Sang $2.68 $2.76 -$0.08 -2.90%
Movado Group $10.40 $10.54 -$0.14 -1.33%
Nordstrom $35.15 $34.83 $0.32 0.92%
Saks $5.96 $6.74 -$0.78 -11.57%
Signet $26.28 $26.37 -$0.09 -0.34%
Sothebys $19.92 $19.98 -$0.06 -0.30%
Tiffany $42.60 $43.89 -$1.29 -2.94%
Walmart $54.54 $54.96 -$0.42 -0.76%
Zale $4.74 $5.26 -$0.52 -9.89%

EUROPE
Bulgari €5.94 €6.03 -€0.09 -1.49%
Bijou Brigitte €121.90 €120.00 €1.90 1.58%
Damiani €1.05 €1.01 €0.04 3.96%
LVMH €72.47 €70.48 €1.99 2.82%
Pinault P-R SA €82.53 €80.72 €1.81 2.24%
Richemont SA CHF 32.76 CHF 32.83 -CHF 0.07 -0.21%
Swatch Group CHF 258.70 CHF 252.50 CHF 6.20 2.46%
Theo Fennell (pence) 50.00 50.00 0.00 0.00%

INDIA (rupee)
Classic Diamond 21.90 21.80 0.10 0.46%
Gitanjali Gems 115.95 115.70 0.25 0.22%
Goldiam Intl 34.00 35.00 -1.00 -2.86%
Rajesh Exports 75.60 77.60 -2.00 -2.58%
Ren. Jewellery 47.80 49.20 -1.40 -2.85%
Su-Raj Diamonds 46.75 45.80 0.95 2.07%
Titan 1,349.10 1,280.70 68.40 5.34%
Zodiac JRD 22.80 23.05 -0.25 -1.08%
Suashish Diamonds 328.00 323.10 4.90 1.52%

NEW ZEALAND
Michael Hill NZD 0.65 NZD 0.62 NZD 0.03 4.84%

MINING STOCKS
CANADA
Harry Winston CAD 10.58 CAD 10.13 CAD 0.45 4.44%
Lucara Diamond CAD 1.05 CAD 1.11 -CAD 0.06 -5.41%
Mountain Province CAD 2.45 CAD 2.58 -CAD 0.13 -5.04%
Peregrine Diamonds CAD 2.00 CAD 1.55 CAD 0.45 29.03%
Rockwell Diamonds CAD 0.06 CAD 0.06 CAD 0.00 0.00%
Shore Gold CAD 0.88 CAD 0.91 -CAD 0.03 -3.30%
Stornoway Diamond CAD 0.29 CAD 0.25 CAD 0.04 16.00%
True North Gems CAD 0.09 CAD 0.10 -CAD 0.01 -10.00%
UK (pence)
African Diamonds 35.80 40.00 -4.2 -10.50%
Anglo American 2,650.00 2,563.00 87.0 3.39%
BHP Billiton 1,931.50 1,834.50 97.0 5.29%
Firestone Diamonds 32.50 30.25 2.3 7.44%
Gem Diamonds 229.60 207.10 22.5 10.86%
Gemfields 6.25 6.14 0.1 1.79%
Mwana Africa 14.12 14.34 -0.2 -1.53%
Namakwa Diamonds 35.00 30.89 4.1 13.31%
Petra Diamonds 63.50 59.28 4.2 7.12%
Rio Tinto plc 3,287.78 2,994.50 293.3 9.79%

INDIA MARKET REPORT:

Rapaport TradeWire®
Friday, December 18, 2009

News: Markets quiet with retailers hoping that last minute Christmas sales will boost uneventful U.S. holiday season. Online selling still a hot trend with overall sales +4% over 2008, while in-store sales projected at +1%. DTC Dec. sight est. $280m with sightholders expecting increased 1Q 2010 supply from De Beers and ALROSA to ease pressure on rough prices. Christies NY sells $25m (85% by lot) with 7.02 ct., fancy intense blue, VS1 diamond going for $3.9m ($554k/ct.). Belgium Nov. polished exports -22% to $739m, rough imports +43% to $732m. India Nov. polished exports +123% to $1.3b, rough imports +43% to $897m. Israel Nov. polished exports +49% to $524m, total rough and polished imports +75% to $696m. Australia 3Q diamond production -49% to 2.5 million ct., rough exports -65% to $59m ($24/ct.).

ANNOUNCEMENTS:

Rapaport at Jaipur Jewellery Show
December 19-22, 2009

Rajmahal Palace, Booth 107 - open Dec. 20-22
Contact: Nilan Singh, +91-22-6628-2700, nilan.singh@diamonds.net

RAPAPORT NEW YORK POLISHED TENDER

By Appointment Only
January 18-21, 2010

Large assortment of polished round and fancy
diamonds ranging in size from -2 sieve plate
to 1ct+. Qualities vary from promotional to
very fine. Excellent buying opportunity for
diamond and jewelry wholesalers and manufacturers.

Contact Kathryn Langner at NYTender@diamonds.net
or +1-212-354-9800

QUOTE OF THE WEEK:

"While De Beers would have preferred more decisive action including [Zimbabwe temporary suspension from the Kimberley Process, which would have effectively halted the countrys export of diamonds until the issues in question were fully addressed.... we also recognise the unique framework of governments, civil society and industry that the Kimberley Process represents, and the commitment by Zimbabwe not to export any diamonds from Marange until the monitoring program is in place.

“We fully expect the Kimberley Process to take the further action it stipulated should no change in the situation on the ground be forthcoming by the end of the 12-month program.”

Nicky Oppenheimer
Chairman of De Beers

WORLD:

Gokhran to Sell Gold to Central Bank

Russias deputy prime minister, Alexei Kudrin, who is also the countrys finance minister, authorized the sale of gold from state repository Gokhran to the country’s Central Bank (CB). Gold would be priced at the London fixing on the eve of the sale. That would have been $1,124 an ounce or $36,137 per kilogram on December 16, for example. Gokhran plans to sell 30 tons of gold to the CB this year.

Kudrin said the gold sale was an anti-crisis measure and that the Finance Ministry did not plan to sell any more gold in the near future. He noted that the Finance Ministry regards the move as a good deal because gold prices are currently high, while diamond prices are low. The gold sale will also support miners and the regional budgets, Kudrin said.

Mozambique Observes Illegal Diamond Activity

Diamonds smuggled out of Zimbabwe are being illegally sold on the Mozambican side of the border in Manica town, according to the administrator of Manica District, Jose Tefula. Zimbabwes diamond deposits are located nearby in the province of Manicaland. These deposits have attracted a high number of foreigners, notably from Nigeria, Somalia and the Great Lakes region, some of whom are renting rooms in Manica.

Manica district has an overwhelmingly peasant population, but in recent months, some people here have acquired substantial wealth, judging by the number of luxury four-wheel-drive vehicles now on the roads. This is attributed to the illicit trade in diamonds, which are believed to come from the Marange region in Manicaland. The diamonds are sold in Manica at night and the going price mentioned by the radio report was about $50 (1,350 meticais) per gram. Immigration authorities in Machipanda, the main border post of Zimbabwe, have announced the seizure of more than half a kilo of Zimbabwe diamonds.

Rapaport Broadcast News

In this weeks broadcast: The Diamond Trading Companys (DTC) December sight reported an estimated value of $280 million. Online retail sales from November 1 through December 13 have increased 4 percent to $21 billion and Christmas season spending during this past week hit a record at $4.74 billion. Christies reported that the combined total for the sale of its New York Jewels and Magnificent Jewels from a distinguished private collector was $25,178,025, with 85 percent sold by lot. Take a look at some of the jewelry that sold, including the Evening Star Diamond, a 39-ct., D, pear-shaped diamond and a modified rectangular-cut, fancy intense blue diamond of 7.02 cts., VS1, and much more. WATCH NOW.

RETAIL:

Weekly Retail Sales +2%

U.S. weekly chain-store sales rose 2.4 percent year on year this past week, according to the International Council of Shopping Centers (ICSC) and Goldman Sachs. ICSC noted that last-minute Christmas gift buying had begun and as a result, retailers also experienced a 0.4 percent increase in sales for the seven days extending through December 12, compared with the previous week.

Department Store Sales Drop 5%

Department store sales in the U.S. fell 4.7 percent to $15.7 billion during November, according to data released today by the U.S. Department of Commerce. Retail trade sales rose 2.2 percent from November 2008, while retail sales for all categories combined increased by 1.9 percent year over year to $352.1 billion for the month.

The National Retail Federation (NRF), meanwhile, found that sales for its membership — excluding automobile, gasoline and restaurant sales —dropped 0.8 percent for the month. NRF predicted that overall Christmas season sales would fall by 1 percent and Novembers numbers were in line with that forecast.

Damas 1H Sales -35%, Reports a Loss

Damas International reported a loss of $195 million during the first fiscal half, which was down from profits of $25 million one year ago. First-half revenue plunged 35 percent to $465 million.

Jewelry Prices Increase in Nov.

The consumer price index (CPI) for jewelry in the U.S. rose to its highest level since June 1995 during the month of November 2009, according to statistics provided by the Bureau of Labor Statistics (BLS). The November reading of 161.1 points was 3.3 percent higher than the level achieved in November 2008. This past months reading also marked the 22nd consecutive cycle for which the jewelry CPI registered more than 150 points. The index is based upon the reference point of average prices in 1986, which is set at 100 points.

Gitanjali Buys Stake in Salasar

Gitanjali Group acquired a 76 percent stake in Salasar Retail as part of its retail expansion strategy in India. The Salasar chain will be re-launched as "Maya by Gitanjali Lifestyle" and offer jewelry and different lifestyle products. Salasar opened its first outlet in Raipur in 2002 and now has ten multi-story department stores in northern India.

In addition, Gitanjali announced that it will open Maya stores in other parts of India and that it expects these stores to generate an additional turnover of about $214.4 million during the next three years, with about two-thirds of this amount to be derived from jewelry sales.

Gitanjali also reported plans to add up to 1.5 million square feet of retail space to its portfolio of stores in the next year and a half through a revenue sharing model.

Video Presentation: Build the Brand, Sell Fantasy

How is your brand and product set different from the competition? Industry analysts and jewelry marketing expert Hedda Schupak discusses the importance of being different while staying true to the company mission in this second installment.

GENERAL:

Wittelsbach-Graff Diamond Goes on Display

The Smithsonian Institution will display the Wittelsbach-Graff Diamond at its National Museum of Natural History from January 28, 2010 through August 1, 2010. This will be the first time it has been available to the public in more than 50 years. A 31.06-carat diamond of rare deep-blue color, the Wittelsbach-Graff Diamond will be exhibited in the National Gem Collection in the Hall of Geology, Gems and Minerals, where the renowned Hope Diamond is on permanent display.

"To have two of the worlds most historical stones — the Wittelsbach-Graff and the Hope Diamond — displayed together, is a testament to the stones history and importance," said Laurence Graff, the chairman of Graff Diamonds. "I believe the diamonds appearance at the Smithsonian will represent another significant chapter in its remarkable history."

DIAMOND MINING:

African Diamonds Loss +30% to $1M

African Diamonds is planning to build the AK6 mine in Botswana at one-third of the cost budgeted by former partner De Beers. The company, which owns 30 percent of the mine, with new partner Lucara Diamond Corporation holding the remainder, said it can build the mine for $88 million, compared with the De Beers budget of $300 million. Having generated no sale revenues from the mine for the fiscal year, African Diamonds reported that its net loss for the year had expanded 30 percent to $1.1 million. African Diamonds plans to develop AK6 in 2010, so that the mine can come on line the following year, with production estimated at 400,000 carats for that year. At full capacity, the mine’s production will rise to 1 million carats a year. African Diamonds also has the option of raising its stake in AK6 to 40 percent.

Angola Seeks to Produce More Rough Alone

ENDIAMA is hoping to move forward with Angola production without the involvement of foreign companies, its chairman, Antonio Carlos Sumbula, announced. "We need to produce our own diamonds," Sumbula said in a note on ENDIAMA’s website that outlined the companys goal to "provide profits for the state." Among the foreign companies invested in Angola are De Beers and Trans Hex. Sumbula was reporting from his first meeting as chairman of the company, having been appointed in November.

DIAMOND STATS:

Russias Rough Exports -64%

Russias rough diamond exports for the January through September period were 64 percent lower than 2008 at 8.183 million carats, according to the Finance Ministrys records of Kimberley Process (KP) certificates. The value was placed at $571.5 million, whereas the value assigned to exports for the same timeframe in 2008 came to $1.53 billion.

Australias 1Q Production -49%

Australia’s diamond production fell 49 percent to 2.449 million carats during its first fiscal quarter that ended on September 30, 2009. Australia exported all of its production from the quarter, which was down 65 percent from one year ago at $54.1 million. The country’s rough diamond imports fell 4 percent to $100.9 million.

Indias Nov. Polished Exports Double

India’s polished diamond exports in November more than doubled, compared with one year ago, closing the month valued at $1.34 billion. Polished imports grew 67 percent to $901.37 million and net polished exports, reflecting the excess of exports over imports, rose seven-fold to $441.2 million. Rough imports increased 43 percent to $897 million while rough exports grew 48 percent to $65 million. Net rough imports rose 43 percent to $832 million. India’s November net diamond account improved by 25 percent from November 2008 to a deficit of $390.8 million.

Israels Nov. Polished Exports +49%

Israel’s polished diamond exports rose 49 percent to $524.1 million in November and rough exports increased 144 percent to $256.8 million. Total exports of polished and rough combined grew 71 percent to $780.9 million. Total imports of rough and polished combined rose 75 percent to $695.6 million in November. Import data for rough and polished diamonds was not provided for the month.

Belgium’s Nov. Polished Exports -22%

Belgium’s polished diamond exports fell 22 percent to $739.4 million in November and polished imports decreased 20 percent to $701.7 million as the country’s net polished exports, representing the amount by which exports exceeded imports, fell 45 percent to $37.7 million. Rough imports grew 43 percent to $731.7 million and rough exports rose 64 percent to $838.6 million. Net rough imports, the extent to which rough imports exceeded exports, fell to a deficit of $107 million, compared with net imports of $72,000 a year ago. Belgium’s net diamond account, representing total exports less total imports, more than doubled to $144.7 million from $67.6 million in November 2008.

ECON WATCH:

For the week ending December 17, 2009
Dec. 17 Dec. 10 Chng.
$1 = Euro 0.697 0.678 0.019
$1 = Rupee 46.94 46.65 0.3
$1 = Israel Shekel 3.81 3.78 0.03
$1 = Rand 7.55 7.55 0.00
$1 = Canadian Dollar 1.07 1.05 0.02

Precious Metals
Gold $1,092.10 $1,130.80 -$38.70
Platinum $1,421.00 $1,423.00 -$2.00

Stock Indexes Chng.
BSE 16,894.25 17,189.31 -295.06 -1.72%
Dow Jones Avg. 10,308.26 10,405.83 -97.57 -0.94%
FTSE 5,217.61 5,244.37 -26.76 -0.51%
Hang Seng 21,347.63 21,700.04 -352.41 -1.62%
S & P 500 1,096.07 1,102.35 -6.28 -0.57%
Yahoo! Jewelry Index 1,138.34 1,104.08 34.26 3.10%

USA
Birks & Mayors $0.90 $1.08 -$0.18 -16.67%
Blue Nile $59.01 $57.17 $1.84 3.22%
Charles & Colvard $1.20 $1.24 -$0.04 -3.23%
DGSE Companies, Inc. $1.35 $1.24 $0.11 8.87%
Fuqi International $18.53 $18.83 -$0.30 -1.59%
JCPenney $27.06 $28.12 -$1.06 -3.77%
Kohls $53.27 $54.85 -$1.58 -2.88%
Lazare Kaplan $2.50 $2.50 $0.00 0.00%
LJ International $2.40 $2.60 -$0.20 -7.69%
Macys $17.03 $16.07 $0.96 5.97%
Man Sang $2.36 $2.39 -$0.03 -1.26%
Movado Group $9.55 $9.35 $0.20 2.14%
Nordstrom $35.18 $35.51 -$0.33 -0.93%
Saks $6.59 $6.03 $0.56 9.29%
Signet $25.25 $24.78 $0.47 1.90%
Sothebys $22.53 $20.03 $2.50 12.48%
Tiffany $42.40 $40.91 $1.49 3.64%
Walmart $52.83 $54.69 -$1.86 -3.40%
Zale $2.53 $3.17 -$0.64 -20.19%

EUROPE
Bulgari €5.68 €5.49 €0.19 3.46%
Bijou Brigitte €116.40 €120.00 -€3.60 -3.00%
Damiani €1.05 €1.04 €0.01 0.96%
LVMH €75.73 €72.27 €3.46 4.79%
Pinault P-R SA €82.41 €80.43 €1.98 2.46%
Richemont SA CHF 34.20 CHF 32.35 CHF 1.85 5.72%
Swatch Group CHF 256.60 CHF 256.60 CHF 0.00 0.00%
Theo Fennell (pence) 47.00 48.50 -1.50 -3.09%

INDIA (rupee)
Classic Diamond 22.40 22.85 -0.45 -1.97%
Gitanjali Gems 120.00 124.10 -4.10 -3.30%
Goldiam Intl 37.60 35.10 2.50 7.12%
Rajesh Exports 82.95 80.65 2.30 2.85%
Ren. Jewellery 51.05 50.45 0.60 1.19%
Su-Raj Diamonds 45.95 48.15 -2.20 -4.57%
Titan 1,323.75 1,337.30 -13.55 -1.01%
Zodiac JRD 24.15 24.00 0.15 0.62%
Suashish Diamonds 303.80 304.00 -0.20 -0.07%

NEW ZEALAND
Michael Hill NZD 0.64 NZD 0.63 NZD 0.01 1.59%

MINING STOCKS
CANADA
Harry Winston CAD 10.33 CAD 10.39 -CAD 0.06 -0.58%
Lucara Diamond CAD 1.00 CAD 1.02 -CAD 0.02 -1.96%
Mountain Province CAD 2.29 CAD 2.30 -CAD 0.01 -0.43%
Peregrine Diamonds CAD 1.85 CAD 1.90 -CAD 0.05 -2.63%
Rockwell Diamonds CAD 0.06 CAD 0.06 CAD 0.00 0.00%
Shore Gold CAD 0.79 CAD 0.86 -CAD 0.07 -8.14%
Stornoway Diamond CAD 0.39 CAD 0.34 CAD 0.05 14.71%
True North Gems CAD 0.09 CAD 0.09 CAD 0.00 0.00%
UK (pence)
African Diamonds 37.00 33.50 3.5 10.45%
Anglo American 2,594.00 2,523.00 71.0 2.81%
BHP Billiton 1,863.00 1,850.00 13.0 0.70%
Firestone Diamonds 34.50 35.00 -0.5 -1.43%
Gem Diamonds 197.00 183.00 14.0 7.65%
Gemfields 5.10 5.13 0.0 -0.58%
Mwana Africa 13.06 14.00 -0.9 -6.71%
Namakwa Diamonds 30.00 31.00 -1.0 -3.23%
Petra Diamonds 57.00 56.25 0.8 1.33%
Rio Tinto plc 3,134.00 3,095.00 39.0 1.26%

INDIA MARKET REPORT:

POLISHED: Trading activity is slowing due in part to price differences and shortages of goods that are in strongest demand.