U.S. Lowers Growth Rate for 1Q10

.S. consumers spent less than previous thought during the first quarter of 2010, according to new figures released by the government, which forced the nation's first quarter gross domestic product (GDP) growth rate lower. The government revised GDP growth to only 2.7 percent for the January through March quarter, down from an advanced estimate of 3.2 percent in April, and the final reading was much slower than a 5.6 percent growth rate for fourth quarter of 2009. Consumer spending is often cited as accounting for 60 percent to 70 percent of the GDP.

Stuart Hoffman, chief economist at PNC Financial Services, wrote that the revision reflects a "halfhearted economic advance" and he predicted similar growth rates for all of 2010.

Paul Dales, U.S. economist with Capital Economics, told the Associated Press that the U.S. is experiencing "the weakest and longest economic recovery" process post-WWII. Without stronger, long-term growth the job sector will experience little if any change, which is a leading concern for U.S. consumers.

Seiko Watch Range Soon to be Unveiled - Keep up to Date and be the First to See New Range

Express Watches continues to keep an eye of the radar for all new Seiko watches soon to be released. The watch industry as a whole are waiting on the anticipated range that will be released in coming weeks.

Christopher Andrews, Managing Director of Express Watches is one of those staying ahead of the pack. As an authorised Seiko Dealer, Express Watches makes the whole Seiko range available at discounted prices. Through an established ecommerce site, Andrews brings Seiko watches within the reach of budgets sharing "bricks and mortar" cost savings with clients allowing him to offer Seiko watches at affordable prices through http://www.expresswatches.co.uk

"This time of year is not only busy in terms of sales but also a highly competitive period when authorised Seiko dealers want to the first to bring out the latest ranges" commented Andrews.

Not only do Seiko dealers want to be the first to reveal the new range but Seiko watch owners also want lead the pack with the latest Seiko watches. "The majority of our customers don't just see a watch as a timepiece and are repeat customers who come back for the latest Seiko watch designs". Andrews believes that many can afford repeat orders as Express Watches discounts Seiko Watches by up to 50%.

Recognised as an authorised Seiko dealer, customers also have faith in Express Watches who have solid customer relations services, reassuring guarantees and tight delivery procedures. This is an area Andrews has been keen to develop "our customers want to browse and purchase the latest Seiko watches safe in the knowledge that their transactions run smoothly, deliveries are on time and that there is complete transparency on all issues".

Express Watches will be revealing the latest ranges very shortly. Andrews anticipates that there will be over 40 new Seiko watches coming shortly, all driven by the Seiko attention to detail and style. To keep up to date on the latest Seiko watches visit http://www.expresswatches.co.uk where new watch designs will be showcased as they are released.

Luxury Watch Sales Boosted by China, Latin America

While limited-edition and diamond-encrusted watch sales remained steady—even increasing in some places—sales of “fashion”, more common brands suffered. As with loose diamonds, it seems that bigger is better when it comes to selling in a tough economy. It may seem counter-intuitive, but the more over-the-top a piece is, the more likely it is to sell, and quickly. “The decline of bonus culture had a big effect on the watch market,” says Catherine MacDonald-Home, editor of Luxury Briefing. “A lot of guys would buy a watch with their first bonus.” So while watches in the $10,000 to $25,000 range dropped, those over $25,000 have actually seen an increase in sales.


Last year, a Middle-Eastern watch collector paid $3.3 million on Piaget’s Tourbillion watch, studded with 1,200 diamonds and shaped like a Mayan temple. Only one was made. The ultra-luxe brands like Cartier, Piaget, Rolex, and Patek Philippe continued to do well even in the darkest depths of the recession. “Anything over $60,000 is holding up,” MacDonald-Home continued. “It has to be something that’s a limited edition or of a very high quality.”

Piaget, with an average watch price of $25,000, saw expanding markets as their lifeline. To encourage this growth, they have placed 9 new stores in China and plan to build 5 more there. They are also placing 3 new stores throughout the Middle East. Audemars Piguet, with an average watch price of $35,000, saw growth only in one area during the last fiscal year: Latin America. In honor of this, they created 2 new models for 2010, called “Pride of Mexico” and “Pride of Argentina”. North American President and CEO of Audemars Piguet noted that, “The Latin American market is booming. I showed up at a dinner in Caracas for 30 people. Each had more than $150,000 on his wrist.”

The way to sell timepieces in this economy is to create unusual pieces with either a new design or new technology. While watch sales between $100 and $25,000 falter, it is the extremely decorative or unusual pieces with huge price tags that are moving. Collectors are still collecting. And with markets growing throughout Asia, the Middle East, and Latin America, the diamond jewelry industry as a whole can look forward to an all-around increase in sales over the next few years.

JCK Show Points to Recovery

Trading centers cautiously optimistic about demand after Vegas show but concerned about profitability following June rough price increases. Strong demand and lower discounts for small goods under the carat and 1-ct. pique stones. Christie’s New York jewels sale brings $15m (84% by lot) with 27.03-ct, D, VVS1, type IIa selling for $3.6m ($131,500/ct.). Lucara Diamond begins production at Lesotho’s Mothae mine. U.S. April polished imports +71% to $1.4b, polished exports +65% to $973m. India’s May polished exports +73% to $1.8b, rough imports +55% to $978m. Israel’s polished exports +64% to $601m. NGOs pressure Kimberley Process to suspend Zimbabwe and include human rights in mandate ahead of meetings.

RapNet Data: June 18, 2010

Diamonds 697,799
Value $4,440,711,934
Carats 777,124
Average Discount -30.22%

- Rapaport News

Market Comments 6/17/2010

Trading centers cautiously optimistic about demand after Vegas show but concerned about profitability following June rough price increases. Strong demand and lower discounts for small goods under the carat and 1-ct. pique stones. Christie’s New York jewels sale brings $15m (84% by lot) with 27.03-ct, D, VVS1, type IIa selling for $3.6m ($131,500/ct.). Lucara Diamond begins production at Lesotho’s Mothae mine. U.S. April polished imports +71% to $1.4b, polished exports +65% to $973m. India’s May polished exports +73% to $1.8b, rough imports +55% to $978m. Israel’s polished exports +64% to $601m. NGOs pressure Kimberley Process to suspend Zimbabwe and include human rights in mandate ahead of meetings.

US IMPORTS $15M IN ROUGH DIAMOND IN APRIL

The United States imported $40.5 million worth of rough diamonds in April, at an average value of $3,434.11 per carat - a 96.7% and 112.7% respective increase compared to April 2009.

According to IDEX Online, net diamond imports of $15 million are a 73.9% addition compared to 2009, based on figures released by the US Commerce Department.
The volume of US gross diamond imports in April dropped by 7.5% to 11,788 carats.
The United States exported 81,104 carats of rough diamonds in April, worth $25.5 million. The average value per carat was set at $314.50.

South Africa supplied the US with $16.3 million worth of rough diamonds, weighing 1,134 carats. Angola, the second leading supplier of rough diamonds to the US, shipped $13.1 million worth of rough, and the diamond export destinations for the US were Belgium ($11.3 million) and Israel ($6.4 million).

Ron Paul Perspective

U.S. Chain-Store Sales +3%

RAPAPORT... Weekly U.S. chain-store sales rose 2.9 percent year to year this past week, based on data collected by the International Council of Shopping Centers (ICSC) and Goldman Sachs. The week-to-week change was a sales decline of 0.7 percent.

"Sales dipped in the latest week from the prior week, though the year-over-year momentum continued only slightly under the prior week's pace," said Michael Niemira, ICSC's director of research and chief economist. "The weekly pace appears to be a bit more volatile than in recent weeks, but the month's easy comparisons will lift the year-over-year pace throughout the month. Overall for the month, ICSC Research expects sales will increase by 3 to 4 percent."

TIFFANY LAUNCHES ENGAGEMENT RINGS' IPHONE APP

Jewelry giant Tiffany & Co. announced it was "going mobile" and launching an iPhone application that features new ways to explore the world’s most exquisite diamond engagement rings.

According to the jeweler's press release, "Tiffany takes its celebrated diamonds directly to the customer with the Tiffany & Co. Engagement Ring Finder, the jeweler’s first iPhone application."The move was explained by "growing customer desire for mobile and interactive shopping."

Tiffany's application offers users the tools for selecting the perfect Tiffany diamond engagement ring, from viewing the range of styles to learning about the superior qualities of Tiffany diamonds.

The app, said the jeweler, includes an accurate ring sizer, which lets users determine their size by placing an actual ring directly on the screen, and aligning it with the correct circle in the guide.

Is also allows users to browse the collection according to shape, setting, metal or design is equally simple. The rings are shown true-to-size and each style may be viewed with diamonds of six different carat sizes.
Tiffany's engagement rings' iPhone app will be available in English and Japanese.

Foreign Trade Zone Approved for IGT

The Foreign-Trade Zones Board of the U.S. Department of Commerce announced today that The International Gem Tower, located in the heart of New York's Diamond District, has been approved as a Foreign Trade Zone (FTZ). As a result, businesses in the tower will be permitted to import foreign merchandise without Customs entry or the payment of U.S. duties until the goods are sold. No duty will be payable on re-exported goods.

"We are developing a world class industry center for the diamond, gem and jewelry trade and approval of the FTZ status is another key milestone in our development schedule," noted Extell's Senior Vice President Raizy Haas. "In 2012, New York will finally have a modern industry building to house the trade. And in addition to the beautiful design and technical innovation, we are focused on providing the services and amenities that drive value for our buyers."

Meanwhile, on site, the below grade concrete and metal deck work is nearing completion. To date more than 3,500 cubic yards of concrete have been poured in the foundation walls and footings and approximately 20% of the total steelwork in the building has been fabricated and installed. Work will begin shortly on the utilities and slab on grade work and will run for a period of approximately 3 months. While this work is ongoing, final bids on the major trades will be awarded with fabrication of to commence shortly thereafter.

Please visit the IGT development and sales teams at JCK Las Vegas (Booth L61) and/or Couture 2010 (Suite TS3 in the Diamond Pavilion) for the latest development plans, sales updates and news on our Foreign Trade Zone designation.