Tiffany's 3Q Sales +21%, Earnings +63% to $90M

Tiffany & Co. reported third quarter sales rose 20.5 percent year on year to $821.8 million for the three months that ended on October 31. Same-store sales rose 16 percent globally on a constant exchange rate basis. Cost of sales rose by 22 percent to $345.9 million, allowing gross profit to increase 19 percent. Gross margin fell to 57.9 percent from 58.5 percent one year ago. Net earnings, though, jumped 62.8 percent to $89.7 million or 70-cents per diluted share.

Tiffany lowered its long-term debt by 9 percent to $539.7 million and increased net inventory to $2.1 billion from nearly $1.7 billion one year ago. Cash and equivalents, however, fell 44 percent to $297.4 million.

Net sales in the Americas rose 17 percent year on year while comparable store sales rose 15 percent. On a constant exchange rate basis, sales rose 40 percent in the Asia Pacific region with same-store sales increasing by 36 percent, while Japan had an overall sales increase of 3 percent and same-store sales increase of 4 percent. Tiffany's European division recorded a sales increase of 15 percent in local currency and a same-store sales improvement of 6 percent year on year.

Michael J. Kowalski, the chairman of Tiffany & Co., said, ''Increased sales in all regions contributed to the continuation of strong worldwide sales growth in the third quarter. We were also pleased to achieve an improved operating margin by leveraging the sales growth against fixed costs. Tiffany is extremely well-positioned to serve growing numbers of discerning customers around the world with extraordinary product offerings and superior shopping experiences.

''We are, of course, mindful of continued short-term economic challenges and uncertainties in some markets. Worldwide sales-to-date at this relatively early stage of our November-December holiday season are tracking in-line with our current expectations despite recent sales weaknesses in Europe and in the eastern part of the U.S.,'' he said.

Looking ahead to Tiffany's fourth quarter, the company expects a low-teens percentage increase for worldwide sales and an operating margin increasing more than one point. Tiffany anticipates net earnings to jump almost 30 percent or within a range of $1.48 to $1.58 per diluted share, up from $1.44 per diluted share in 2010.

In a client note yesterday, Margaret Whitfield of Sterne Agee estimated Tiffany's comparable-store sales would increase nearly 15 percent and a 20 basis point improvement in gross margin to 58.7 percent. ''Tiffany has met little resistance raising prices to offset higher raw material costs so far, which we expect to continue,'' Whitfield wrote. ''We maintain our 'Buy' rating with a target price of $90, based on 19.1x our fiscal year 2013 EPS estimate. We expect Tiffany will benefit from healthy global demand from high-end consumers.''

-Rapaport

GIA 2012 Education Catalog Now Available

The 2012 education catalog for the Gemological Institute of America (GIA) is now available online and in print. The catalog, entitled “Reach Across the World,” features in-depth descriptions of the GIA's online gemology curriculum, lab classes and on-campus programs throughout the world.

The catalog emphasizes the global scope of the industry with a variety of domestic and international schedules for gemology, design and jewelry manufacturing. It also includes specifics on how to enroll, updated 2012 tuition and fees, and information about scholarships and financial assistance.

Additional catalog features include:

· Details about the GIA Graduate Gemologist, Graduate Diamonds, Graduate Colored Stones, Graduate Pearls and Accredited Jewelry Professional Diploma programs

· Insights on the Graduate Jeweler and Applied Jewelry Arts Diploma programs, and the CAD/CAM for Jewelry and Jewelry Design Certificates

· A guide to GIA eLearning, a media-rich learning experience delivered completely online via integrated text, videos, slide shows, animation and audio

· Descriptions of lab classes held at worldwide GIA campuses that provide training in grading, gem identification and jewelry manufacturing

GIA’s 2012 education catalog reflects the Institute’s mission to serve a wide range of students, including newcomers to the gem and jewelry industry and seasoned professionals who want to expand and fine-tune their skills.

-Rapaport

Cyber Monday sales hit $1.25b, up 22%

Cyber Monday reached $1.25 billion in online spending, up 22 percent versus 2010 and representing the heaviest online spending day in history, according to comScore.

“Cyber Monday … was just the second billion-dollar spending day on record, following on the heels of Cyber Monday 2010,” Gian Fulgoni, comScore chairman, said. “It will be interesting to watch the next couple of weeks to see if any future individual days in 2011 manage to leapfrog this year’s highest day to date.”

The 22 percent growth in sales this year was driven by an increase in both the number of buyers (up 11 percent) and the average spending per buyer (up 9 percent), comScore reported. Overall, 10 million people shopped online on Monday, with the average buyer conducting almost 2 online transactions.

IBM Coremetrics Benchmark reported slightly different data, stating that online sales on Cyber Monday were up 33 percent as compared to 2010, and up 29 percent over Black Friday.

“The U.S. online retail sector delivered strong growth on Cyber Monday 2011 compared to the same period last year,” Coremetrics reported. “These findings expand on the earlier report that Thanksgiving Day 2011 saw a record number of online retail sales that set the stage for a strong Black Friday.”

Coremetrics reported that the average online order value on Cyber Monday rose from $193 in 2010 to $198 this year, an increase of 3 percent, and shopping momentum hit its highest peak at 2 p.m. EST. Consumer shopping also maintained strength after commuting hours on both the east and west coasts.

Coremetrics also found that 11 percent of shoppers used a mobile device to visit a retailer’s site on Monday, up from 4 percent in 2010. Mobile sales also increased dramatically this year, reaching 7 percent on Cyber Monday versus 2 percent in 2010.

Matt Shay, CEO of the National Retail Federation (NRF), told USA Today that Cyber Monday is “providing a needed shot in the arm to our nascent recovery.”

-National Jeweler

INDIAN INSTITUTE OF GEMS & JEWELLERY SIGNS MOU WITH GIA

The Indian Institute of Gems & Jewellery(IIGJ) has signed a Memorandum of Understanding with the Gemological Institute of America (GIA) allowing the GIA to hold courses at IIGJ’s Indian campuses.

Currently, the IIGJ has campuses in Mumbai, Delhi, and Jaipur, and plans to open additional ones in Kolkata and Chennai.

Nirupa Bhatt, Managing Director of the GIA India & Middle East said that the GIA was proud of the collaboration. “This agreement will help us reach small and large manufacturers and jewelers across India by bringing GIA education right to their doorsteps.”

The IIGJ is a project of India’s Gems and Jewellery Export Promotion Council.

Christie's Hong Kong Jewels Sale Nets Almost $83M

Christie's Hong Kong sale of Magnificent Jewels achieved $82,705,484, and was 78 percent sold by lot. The top two lots were unmounted diamonds, the first of which was a 35.77-carat, D, type IIa brilliant-cut diamond and it sold to a private for almost $8.3 million or $231,000 per carat, while the second brilliant-cut stone was a 35.61-carat, D, type IIa diamond and it sold for $8.1 million or $228,000 per carat.

Christie's observed a world record price for a pair of emerald ear pendants, which included a 25.38-carat and 23.12-carat, cushioned-shaped pair of Colombian emeralds that sold for more than $4 million.

Other highlights included a 26.41-carat sapphire and diamond Kashmir brooch (pictured) for $3.8 million, a Burmese ruby and diamond cluster necklace by J.W. Currens for $3.8 million and a natural colored pearl and diamond bead necklace that sold for $3.1 million.

Vickie Sek, the director of the jewelry department for Christie's Asia, said, ''A fabulous pair of perfect round diamonds of 71.38 carats achieved $16.4 million, the highest ever price for colorless diamonds in Asia.'' Sek also observed strong prices for colored stones and natural pearls.

-Rapaport

DE BEERS OPENS NEW DIAMOND JEWELRY BOUTIQUE IN TIANJIN, CHINA

De Beers Diamond Jewellers has opened its Tianjin store at The Friendship Mall. Following the opening of its first store in Beijing in May, the Tianjin store is De Beers' second store in mainland China and represents De Beers' expansion into the fast growing Chinese market.

The 75 square meter store features some of De Beers' solitaire diamonds, classic jewelry styles, and one-of-a-kind luxury jewelry creations.

The opening was hosted by Francois Delage, CEO of De Beers Diamond Jewellers; Andrew Coxon, President of De Beers Institute of Diamondsand special guest, actress Karen Mok, who wore the De Beers Wildflowers Collection large statement necklace, bracelet and statement ring.

"We are now able to fully share our exceptional passion and expertise in diamond selection, craftsmanship and design to one of the largest and most discerning markets in the world," explained Delage.

-The Israeli Diamond Industry

Black Friday sales set record

Concerns that the 2011 holiday season would be a weak one were dispelled this weekend as American consumers rushed to stores and purchased more goods than ever before. Black Friday sales increased 6.6 percent, according to initial figures.

Black Friday sales totaled $11.40 billion in retail purchases, the biggest dollar amount ever spent during the day, according to ShopperTrak, a provider of retail and mall foot-traffic counting services.

Retail foot traffic rose accordingly, increasing by 5.1 percent over Black Friday 2010.

“Despite our sluggish economy, shoppers proved they are looking for value and ready to buy if given a good customer experience,” said ShopperTrak founder Bill Martin.

This is also the largest year-over-year gain in since the 8.3 percent increase witnessed between 2007 and 2006.

Some 52 million U.S. shoppers are expected to visit stores and websites during Black Friday weekend, according to a National Retail Federation survey. The survey found that the number of people that said they would “definitely” go shopping jumped to 33 percent, compared to 27 percent in 2010.

Black Friday’s strong showing came on the heels of a very good November for retailers. Sales were up 3.6 percent during the week of Nov. 12 and up 3.8 percent during the week of Nov. 19, the week before Black Friday.

Heavy promotions, deep discounts, free shipping and midnight sales--when retailers open stores for late-night shopping--all helped encourage consumers to make holiday purchases.

Holiday shoppers look for sales and research purchases online before heading to a store. Given a strong Black Friday, however, and the possibility of a dropoff in the coming weeks, retailers will need to work extra hard to convert knowledgeable browsers into buyers, ShopperTrak's Martin said.

U.S. holiday jewelry sales are expected to rise 7 percent to 10 percent, based year-over-year, according to the latest IDEX Online Research forecast.

-IDEX Online

WikiDiamond – Cullinan Heritage

The 507-carat Cullinan Heritage diamond was discovered at Petra Diamonds’ Cullinan Mine in South Africa (formerly De Beers’ Premier Mine, the source of more than one-fourth of all diamonds weighing over 400 carats) comparatively recently, in 2009.

At the time the stone was mined, the Cullinan Heritage was the 19th-largest rough diamond ever recovered, although recent diamond discoveries have moved it a few places down on the list.

In February 2010, the white diamond – whose clarity grade is rated Flawless – set a record price for a rough diamond when it was sold at auction for $35.3 million. The purchaser was Hong Kong jeweler Chow Tai Fook, and the sale was generally heralded as indicating China’s growing importance as a consumer market for diamonds, as well as a coup for the jewelry group itself.

Chow Tai Fook Group Chairman Dr. Cheng Yu-Tung expressed his delight at the group’s acquisition of the diamond.

“This spectacular and high-quality diamond is very rare and exceptional. Chow Tai Fook Jewellery’s repeated success in acquiring world-renowned diamonds is backed by Chow Tai Fook Group’s strength and endless pursuit of perfection in providing our customers with unique diamond pieces,” the chairman said.

-The Israeli Diamond Industry

Hong Kong's Polished Diamond Imports +29% in 3Q

Hong Kong’s diamond imports rose 29 percent year on year to $4.84 billion in the third quarter of 2011, according to data published by the Diamond Federation of Hong Kong, China. By volume, the polished imports fell 17 percent to 6.464 million carats as their average price grew 56 percent to $746.88 per carat.

Polished exports rose 18 percent to $3.34 billion and net polished imports, representing polished imports less exports, increased 62 percent to $1.49 billion.

Hong Kong’s rough imports more than doubled to $598.7 million, while rough exports increased 53 percent to $468.4 million. Net rough imports, representing imports less exports, rose to $130.3 million compared to a deficit of $41.6 million a year earlier.

Hong Kong’s net diamond account, representing total imports of polished and rough less total exports, grew 41 percent to $1.36 billion.

During the first nine months of the year, Hong Kong’s polished imports rose 33 percent to $13.32 billion driven by strong growth in imports from all its main trading partners. Imports from India rose 25 percent to $6.4 billion, while from Israel they increased by 69 percent to $1.86 billion and from Belgium by 35 percent to $1.46 billion. Imports from the U.S. grew 14 percent to $1.47 billion and from the United Arab Emirates (UAE) they rose 53 percent to $675.4 million.

Polished exports grew 35 percent to $9.87 billion in the nine months as net polished imports rose 27 percent to $3.45 billion.

Rough imports jumped 89 percent to $1.57 billion and rough exports rose 51 percent to $1.26 billion. Net rough imports rose to $312 million compared to negative $1.4 million in the same period a year earlier. Hong Kong’s net diamond account for January to September increased 16 percent to $3.14 billion.

-Rapaport

GIA offers 4C’s iPad app for consumers, retailers

The Gemological Institute of America (GIA) has created a free iPad application to help educate and engage consumers on the 4C’s of diamond quality.

“Our goal is to provide the public with the knowledge they need to make informed buying decisions,” Kathryn Kimmel, GIA vice president and chief marketing officer, said. “iPad and tablet technologies allow GIA to be the on-the-go resource for any diamond shopper, delivering accurate, unbiased diamond information in a way that is both engaging and fun.”

The new GIA 4C’s iPad app for consumers is available on iTunes, and a retailer version of the app, designed to be used at point of sale, is also downloadable for free from GIA’s retailer support site.

Both versions of the app feature video and interactive tools that teach consumers how the GIA grades diamonds using the 4C’s. The app explains the GIA’s grading scales for color, clarity and cut, and how diamond grades can affect value. The app also explains the origins of the carat system, and provides information about fluorescence, diamond treatments and synthetics.

The app allows consumers to explore:
- How diamond color changes across the GIA D-to-Z color scale
- Typical inclusions and blemishes at various points in the GIA clarity scale
- A diamond’s anatomy and how various parameters influence a diamond’s cut grade
- How a diamond’s size changes by carat weight and compare the sizes of different diamonds
- A GIA grading report anatomy to understand the different elements of a GIA report

A special feature of the app’s consumer version, “My Diamond Wish List,” enables a consumer to keep a record of the diamonds they’ve seen and considered. Consumers can enter and store a diamond’s relevant information, including its report number, 4C’s information, price, image and the retailer’s address and contact information. If the diamond comes with a GIA report, the grading information will populate automatically from the GIA report check.

The app also features direct access to GIA report check, a secure online database of GIA grading reports. Consumers can verify the contents of a report and view a PDF version of it directly from their iPads, simply by entering a report number and carat weight. This feature also provides retailers the benefit of using reports as selling tools in a quick and convenient method.

The iPhone format and a simplified Chinese version of this app will be coming soon to iTunes

-National Jeweler

DUBAI TO BECOME 2ND LARGEST DIAMOND TRADING HUB WITHIN A YEAR, DMCC CHIEF SAYS

Dubai – currently the fourth largestdiamond trading center in the world – is on its way to becoming the second-largest diamond trading hub within a year, the executive chairman of the Dubai Multi Commodities Centre said Monday.

Ahmed Bin Sulayem, attending the 5th Arabian Business Forum, spoke to the Arabian Business news website, saying he believed he would see diamond trade through Dubai continue to grow.

Bin Sulayem noted that the growth of Dubai’s industry depended on bank’s willingness to extend credit to its diamantaires.

The DMCC chief said that while Israel was a “very strong competitor,” it was not “as relevant as it used to be,” observing that Israel was a center of trade rather than of diamond production.

-The Israeli Diamond Industry

Rapaport Group Calls on Diamond Trade to Avoid Marange Diamonds

The Rapaport Group strongly opposes the recent decision of the Kimberley Process (KP) to allow for the immediate exports from the mining operations Mbada Diamonds and Marange Resources in the Marange region of Zimbabwe.

We hereby publicly warn members of the diamond trade that the KP does not certify against human rights abuses and KP certification does not ensure that diamonds are not involved in human rights abuses. Furthermore:

1. There are persistent reports of human rights violations related to Marange diamonds.

2. In spite of KP certification these diamonds are under U.S., EU and U.K. government sanctions and are illegal for trade by U.S., EU and U.K. citizens and entities owned by them.

3. The funds generated from the sale of these diamonds are not properly accounted for. It is likely that they will be used to fund human rights violations in Zimbabwe.

The Rapaport Group calls on all ethical members of the diamond trade to cease and desist from the trading of Marange diamonds. In the event that firms insist on buying and producing them we demand that these Marange diamonds be separated from non-Marange diamonds so that they are not sold to U.S., EU or U.K. entities. We firmly believe that the mixing of Marange diamonds with non-Marange diamonds and their subsequent sale to U.S., EU or U.K. entities without disclosure is unethical and illegal. We demand that firms selling Marange diamonds do so with full disclosure, similar to the disclosure requirements for treated diamonds.

RapNet - Rapaport Diamond Trading Network continues to ban the trading of any diamonds sourced from Marange, Zimbabwe even if such diamonds have KP certification. Members found to have knowingly offered Marange diamonds for sale on RapNet will be expelled and their names will be publicly communicated. RapNet will be publishing new trading rules and ethical guidelines in the near future.

The Rapaport Group warns the diamond trade that continued sourcing and legitimization of diamonds involved in human rights abuses threatens the integrity and reputation of all diamonds. Diamond trade organizations particularly those promoting responsible trade and those serving in the U.S., EU and U.K. trade should immediately issue clear guidelines banning all their members from trading Marange diamonds. We believe it is unethical for trade organizations to refrain from clearly banning the trade in illegal Marange diamonds under the guise of supporting the KP.

-Rapaport

Silver Prices to Rise

Silver prices could rise to $50 an ounce or higher by the end of 2012 as investment demand surges, according to the Thomson Reuters GFMS.

Fabrication and industrial demand for silver are forecast to increase by about 4 percent in 2011 to a new record high, with further, modest growth predicted for 2012, Philip Klapwijk, global head of metal analytics at Thomson Reuters GFMS, said in its “Interim Silver Market Review” at an annual meeting of The Silver Institute.

The report stated that industrial off-take is set to rise despite the Japanese earthquake, weak economic growth in western economies and the end of stock replenishment. It noted that jewelry demand is likely to edge higher despite stronger silver prices, while silverware and photography will weaken further. However, demand for coins and medals are set to establish a new record high, achieving the largest gain, in volume terms, of any category of fabrication demand in 2011.

Thomson Reuters GFMS stated that further noteworthy gains are forecast for mine production and scrap in 2011, although these will be countered by a heavy fall in government sales and, to a lesser extent, producer hedging.

The London-based precious metals consultancy said that the value of world investment is projected to reach a new high of $10 billion in 2011 on a net basis and conditions are likely to remain highly supportive of further growth in investment demand in 2012, underpinning additional price gains.

“However, downside risks remain, including the potential for the sovereign debt crisis to precipitate a liquidity crunch, impacting the 'real economy,'" it warned.

Investor activity underpinned silver’s moves this year, which saw it rally near $50 per ounce in April before correcting sharply in both May and again in late September. The main factors driving these price moves were those impacting gold, namely the Eurozone sovereign debt crisis, inflationary fears, loose monetary policies and a weak U.S. dollar.

The report said that world investment in silver, including coins and medals, will reach a projected 278 million ounces in 2011, a slight drop from 2010. The investment, however, will set a new record high in value terms and further gains are projected for 2012, it noted.

Thomson Reuters GFMS forecast the annual average price of silver at $35.66 an ounce in 2011, up by 77 percent year-on-year. It expects prices to reach an annual average of over $45 per ounce in 2012.

-Rapaport

The Meaning of Jewelry...

What does jewelry mean? We look at magazine spreads of celebrities wear glamorous specimens rich with gold and gemstones, the diamond rings given for betrothal and yarn friendship bracelets tied sweetly onto wrists and there is jewelry’s meaning covers a vast spectrum.

Is it because metals and gemstones were born in the earth and we feel a connection? There is so much folklore regarding gemstones and their mystical powers, it can’t be said for certain what if any is true.

A fact that provokes thought is that humans have been making jewelry for roughly 100,000 – 135,000 years, that is approximately 70,000 years prior to the earliest cave drawings. A collection of 41 shell beads, found in the Skhul cave in Israel between 1931-1932 is a fascinating discovery. Scientists recognize these as beads because they are all of equal proportions and the drilled hole of each was of equal proportions. Another factor of these being intention was that this location was situated at least a days walk from the ocean at that time, this collection was purposeful and definitely the beginnings of Jewelry.

Pictured here the first (Paleolithic) beads; dirt from the sediment was chemically tested against the bones found alongside, between 100,000 – 135,000 years old.

Realizing that jewelry, adornment, was a thought toearly humans previous to written language is awe-ing. It denotes evidence of a possible spiritual life, vanity, and love. Jewelry being first is also evidence of our ancestor’s high creative ability and their predilection to symbolic thought.

Jewelry became more intricate throughout the Neolithic period, beginning 8000/7000 BC. The beads became regular and made from material such as stone, clay, bone, and shell even metal. Very rare find but there were even dangling gold earrings of cut leaves. The Minoan goldsmiths began filigree and granulated jewelry of naturalistic representations of insects, animals and birds.

Late Minoan Bee Pendant, Gold.

As a side note on the role of jewelry in mans history and development is dentistry. The tools and metals of jewelry fabrication lent the way to dentistry. Research suggests that in 3000 BC the Egyptians used gold wire to bind replacement teeth together. Files and picks used for carving wax molds for jewelry began to be used to clean teeth, wax molds themselves to make replacement teeth.

Pictured here, the earliest dental bridges with gold wire. Gold wire was used for it's antibacterial quality as of today still.

As religions began to form important sociological bonds, jewelry became important to conform and strengthen beliefs. Gold and jewels were used as gifts for the maintenance of worship, decorating temples and churches throughout the world.

Breast ornaments worn about the neck by ribbon chain, were thought of as portable shrines for gods in most cultures throughout Egypt, Greece, Europe and the middle east.

The importance of jewelry has been prevalent in since the beginnings of human culture. It is easy to shirk the value when the intention seems only to assert wealth and status, but that has simply been a side effect of the impact.

Closing off this article with images of Jewelry that is not well known, historical and breathtaking.

Mucha Jewels, Art Nevaou. Known as “The Spanish Inquisition Necklace”

Italian Carvel Pendant, Museum de Heritage

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Phenomenal Gems...

You may think these are just gems that are cool, and they are! This also refers to actual gemstones that a unique optical effects-phenomena. Some gemstones only exhibit phenomena in rare cases, where as others such as Alexandrite is almost always in this state and the gemstone itself is rare.

There are several types of Phenomena as it is called chatoyancy, color change, asterism and adularescence.

Chrsysoberyl from the Greek word “chrysos” meaning “a gold white spar” is the variety containing both of the most sought after of the phenomenal gemstones Cat’s Eye and Alexandrite.

Cat’s Eye Chrysoberyl displays chatoyancy, the word is coined from the French “œil de chat” and refers to the opening and closing effect of the “eye” of this stone.

A beautiful specimen of Cat’s Eye Chrysoberyl.

Color change is a unique phenomena occurring in only a small handful of stones one of them being Alexandrite, another member of the chrysoberyl family. This stones unique chemical properties make the color change depending on the nature of the lighting. “Emerald by day, Ruby by night” is sometimes said of this stone. Alexandrite’s color change is the result of small scale replacement of aluminum by chromium ions in the crystal structure.

Alexandrite “Emerald by day, Ruby by night”

Asterism is a beautiful effect in the stone that appears to the eye as a luminous star when the stone is polished into a cabochon. The most common gemstone to do this is the Star Sapphire, usually a grayish blue color and milky to translucent; this effect in Sapphire is caused by titanium dioxide impurities (rutile) present in them.

Star Sapphire ring with two tapered baguette diamond shoulder stones.

An exquisite Star Ruby, this occurrence is far more rare in Ruby from some reason so they are often given Ruby status even if they are more purple in color than a traditional Ruby, this on though is exceptional.

Adularescence is another beautiful optical phenomenon; and it appears only in the prescience of light. Like Asterism, adularescence is the product of the interaction between the light and the internal microstructures of the mineral and it not a chemical property of the mineral itself. The most common gemstone to see this with is the Moonstone, a bluish milky luster appearing just beneath the surface of the stone. It also appears in Rose Quartz, Opal and Agate.

Late 19^th Century Victorian Cabachon Moonstone ring and rose cut Diamonds.

A very similar phenomena to adularescence is labradorescence, it also is the result of light refracting within the intergrowths of the material not of chemistry. This is the effect seen in the grayish-blue stone Labradorite.

A beautiful Labradorite speciman.

Of course there are many more stones that display phenomenal characteristics, check back in from time to time as these listings are updated.

Written by staff Gemologists at http://zeexchange.com/ if you are interested in any of these items in the article for purchase, please contact us at info@zeexchange.com.

$2.3M paid for Patek Philippe pocket watch

A recently discovered, rare Patek Philippe full 24-hour repeating pocket watch sold for an “astounding” $2.3 million at Antiquorum’s November auction, held over the weekend in Geneva.

The previously unknown, highly complicated 18-karat gold pocket watch has, in addition to the 24-hour repeater, an unusual type of five-minute repeating. It originally was estimated to sell for a maximum of about $334,000.

The “Important Modern & Vintage Timepieces” auction realized a total of $12.7 million, bringing the total for Antiquorum auctions held in Geneva this year to $28.1 million, a 28 percent year-over-year increase. It was 76 percent sold by lot and 148 percent sold by value.

In addition the Patek Philippe pocket watch, a collection of exclusive Patek Philippe watches, 10 lots in total, sold for a total of $990,909. That was more than double the price the watches were expected to fetch.

The collection includes a Ref. 855/7 champlevé enamel hunting cased pendant watch that was appearing for the first time at auction and fetched $54,600. A Ref. 866/8 dress watch with an enamel miniature portrait of Wolfgang Amadeus Mozart by Suzanne Rohr (above) sold for $257,174.

Other notable lots of the sale included a Rolex Ref. 6284 with a cloisonné enamel dial featuring a map of the two Americas (below), one of only six of its kind made in 1950 and still the property of the family of its original owner.

The Rolex sold for $263,634, well above its pre-sale estimate of about $154,000.

Antiquorum’s Geneva auction had a total of 355 registered bidders, in addition the many telephone bidders and a strong in-room presence. International participation came from the United States, Taiwan, China, Hong Kong, the Russian Federation, Germany and Japan.

-National Jeweler

Graff pays $4 million for white diamond...by Graff

London-based jeweler Laurence Graff paid nearly $4 million to buy back a white diamond ring of his own creation at a sale where wealthy investors seeking alternative assets snapped up top-quality gems, Christie's said on Thursday. Graff, whom close associates said was in China this week, made the winning bid by telephone to the semi-annual jewelry sales in Geneva on Wednesday night, the auction house said.

"He bought it back and he will sell it a second time," Jean-Marc Lunel, head of Christie's jewelry department in Geneva who conducted the sale, told Reuters.

"He is the King of Diamonds and recognizes his babies. The stone is fabulous and in great shape in terms of cut, color and clarity," he added.

The oval-shaped diamond, weighing 24.30 carats, is graded 'D' color and potentially internally flawless if repolished slightly on the surface, according to Lunel.

It was put on the block by an unidentified woman and had a pre-sale estimate of $2.9 million-$3.5 million, according to the catalog.

Christie's, owned by French billionaire Francois Pinault, netted 56.26 million Swiss francs ($61.37 million) from the event, with 77 percent of the 361 lots on offer sold, it said in a statement.

A gray diamond weighing 10.67 carats, which had been estimated at $120,000-200,000, soared to $1.19 million, a world record price for a gray diamond, according to Lunel. Earrings made of pear-shaped Colombian emeralds and diamonds fetched $3.078 million, also a record price at auction, he said.

"What is in the mid-range or not so attractive doesn't sell well. But what is exceptional sells at astronomical prices -- colorless diamonds, colored diamonds and colored gems including rubies from Burma (Myanmar)," Lunel said.

"There are more and more private collectors, clients looking for new investments. They are looking for top, top quality gem stones, to put their money into something that will not melt," he said.

Graff, who often attends auctions, is a self-made diamond merchant who became one of Britain's richest men with an estimated worth of around 2 billion pounds ($3.2 billion).

Graff Diamonds plans to raise about $1 billion in a Hong Kong listing next year, a move to fund further expansion in Asia and capitalize on booming demand for high-end gems in China and India.

"I think it is a clever move because he is number one today. He still has room to expand everywhere," Eric Valdieu, a jewelry expert formerly with Christie's who has launched an investment fund "Divine Jewels", told Reuters.

"It is a very expensive business. Therefore, if he wants to go faster he needs large financial support," he said.

Graff's glittering stores sit on the world's most exclusive shopping streets, including the posh rue du Rhone in Geneva.

"When I see his inventory, the quality of his merchandise, the beauty of his shops, how cleverly everything is run, I can only suggest to people to go for it -- if people want to invest with a retailer," Valdieu said.

"They are investing with someone who knows what he's doing," the Frenchman added.

Rival Sotheby's sold the "Sun-Drop Diamond", a huge yellow diamond weighing 110.03 carats for $12.36 million, a world record for a yellow diamond, in Geneva on Tuesday night.

-Reuters

DIAMOND INDUSTRY LEADERS DISCUSS FAMOUS DIAMONDS

Diamonds were the talk of the Tower of London at a private dinner held last week to mark the start of a three-day summit where, for the very first time, global diamond authorities including Rio Tinto's Tom Albanese, Cartier's Arnaud Bamberger, Christies' Jewellery specialists David Warren and Raymond Sancroft-Baker and senior figures from the Gemological Institute of America, De Beers, and the major auction houses came together as a specialist council to spearhead the search to discover as-yet undocumented rare diamonds and ensure they are showcased to an international audience.

The talks were hosted by Robert Procop, a former Crown Jeweller and leading international authority on diamonds and gemstones, to mark his recent succession from Lord Balfour as Editor-in-Chief of Famous Diamonds.

Procop commented: "For the first time, we have a team of the world's leading diamond experts - people who have mined, cut, classified, bought and sold these gemstones - joining me to embark on a quest to identify Famous Diamonds. I am delighted to say that we already have several exciting new additions which will be published in the next edition in 2012."

With over 100 diamonds in the world at 100 carats or more, the criteria for Famous Diamonds must necessarily extend beyond size to focus on the rare qualities and historical provenance of these extraordinary gemstones.

-The Israeli Diamond Industry

Gold Jewelry Demand +24% to $26B in 3Q11

Global demand for gold during the third quarter of 2011 surged 59 percent year on year by value to a record $57.7 billion, according to the World Gold Council. Gold demand by volume rose 6 percent from one year ago. Demand from the jewelry sector fell 10 percent in terms of volume to 465.6 tonnes, nonetheless, due to much higher prices for the precious metal, the value of gold demand rose 24 percent to a record $25.5 billion.

According to the World Gold Council’s ''Gold Demand Trends report for Q3 2011,'' jewelry demand from China increased 13 percent year on year to 131.0 tonnes, equivalent to $7.3 billion (RMB 46 billion). The bulk of the increase came from smaller cities as retail chains expanded their networks to meet increasing demand fuelled by rising income levels, the World Gold Council explained. However, gold jewelry demand from India was sluggish, compounded by high inflation rates and greater volatility in the local gold price. Overall, India's gold jewelry demand in the third quarter fell 26 percent by volume to 125.3 tonnes. In value terms, however, India’s gold jewelry demand rose 2 percent to $6.20 billion (INR 314.50 billion).

Investment demand comprising of bars and coins as well as exchange traded funds (ETFs) declined 18 percent to 78 tonnes by volume, but trade value gained 12 percent to $3.86 billion (INR 195.78 billion) during the quarter. Combined gold demand in India fell 23 percent to 203.3 tonnes, which, despite the decline, ranked India as the the largest market for the yellow metal. Ajay Mitra, managing director for Middle East and India for the World Gold Council, said, ''One of the largest reasons for the decline in volumes is that the trade destocked tremendously in the third quarter because of the volatility. They are not sure at what price they are going to stock up themselves.''

He added that the middle class in India’s urban cities have been readjusting their budgets and therefore their priorities in the third quarter. Mitra said that World Gold Council is optimistic that the fourth quarter will post positive growth because of Christmas and India’s wedding season. “While there is a bit of uncertainty in Europe it is not as critical as it was a couple of weeks back. So there should be good demand globally,” he added.

He stated that during Diwali there was robust demand for gold and gold jewelry from semi-urban and rural Indian markets, but demand in the larger cities was on par or slightly down compared with 2010. ''The upcoming festive season, however, is expected to usher an increase in the demand for gold as we look forward to periods of increased price stability resulting in Indian consumers being able to build gold purchases into their household budgets,'' Mitra said.

The World Gold Council concldued that India’s successful monsoon season this year should yield good crops, which in turn should help ease food inflation, while also bolstering rural incomes, thereby boosting the demand in first quarter of 2012.

Marcus Grubb, the managing director of investment at the World Gold Council, said, ''Unsurprisingly investment demand for gold was a key driver during the third quarter. Increasing levels of inflation, the U.S. credit rating downgrade, a worsening euro-zone sovereign debt crisis and the lackluster performance of many assets drove investors to increase holdings in gold in order to protect their wealth.

Given gold’s proven risk mitigation properties, it is likely that investors will continue to seek protection from economic uncertainty, which shows no signs of abating.

''The long-term fundamentals for gold remain strong with a diverse and growing demand base coupled with constrained supply-side activity,'' he said.

The quarterly average price for gold rose 39 percent year on year to $1,702.12 per ounce, while the gold price closed at a new record of $1,895 an ounce in London (PM Fix) on September 5 and 6. Global gold investment demand reached a record $25.6 billion. Demand for gold bars and coins increased 78 percent to $21.4 billion. Gold ETFs and similar products witnessed inflows of 58 percent higher than one year ago.

Central bank net purchases amounted to 148.4 tonnes, as they continued to increase their allocation to gold as a percentage of total reserves, during the third quarter. Gold supply rose 2 percent year on year to 1,034.4 tonnes and mine production increased by 5 percent to 746.2 tonnes.

-Rapaport

Christie's Geneva Auction Nets $61M

The largest exhibition of diamonds in the history of the Czech Republic is now open in Prague’s historical center and will run through November 22, the Ceske Noviny news site reports.

The exhibit, organized by the Diamonds International Corporation, includes over 300 diamonds ranging in size from onecarat to 22 carats with a combined value of over $26 million. Some of the stones on display were lent by the Antwerp Diamond Bourse.

Lubos Riha, a representative of Diamonds International, called diamonds “not only the most beautiful product of nature, but also an alternative investment tool.” Riha said that the purpose of the exhibit was to acquaint people with diamonds’ potential as an investment commodity.

After closing in Prague, the exhibit will move on to Karlovy Vary and then to Warsaw.

U.S. Marshals Prep for National Jewelry Auction

The U.S. Marshals Service is preparing for its national jewelry auction, featuring nearly 700 lots of jewelry, diamonds, watches, collectible coins as well as a saxophone signed by former President Bill Clinton. The auction will take place live in Houston and online at www.txauction.com on November 18 and 19 starting at 10 a.m. CST each day. An onsite preview of the lots will be held at the Reliant Center in Houston November 17 from noon to 5 p.m.

One of the lots up for auction, lot 224, includes an emerald-cut diamond ring. According to the Gemological Institute of America (GIA) report, the center stone is a 4.99-carat, F, VS1 diamond flanked by a 1.14-carat, E, VS1 and a 1.10-carat, D, VS1 stone.

Eben Morales, the assistant director for the asset forfeiture division of the U.S. Marshals Service, said, ''As the primary custodian of the Department of Justice's asset forfeiture program, the U.S. Marshals Service manages and disposes of assets seized and forfeited from cases nationwide.

''The assets being sold at auction exhibit the power of forfeiture to remove the proceeds of crime and disrupt and dismantle criminal organizations. Proceeds from this auction will be reinvested into the law enforcement community and applied as reparations to the victims of crime,'' Morales said.

-Rapaport

U.S. Jewelry Store Sales Rise in September

U.S. jewelry store sales for the month of September rose 22 percent year on year to $2.12 billion, according to government figures released today. The consumer price index (CPI) for jewelry, meanwhile, rose 8 percent in September. In its advanced retail summary report for the month of October, which was also released today, the government concluded that U.S. department store sales fell 0.7 percent to $14.4 billion. Retail trade sales rose 7.3 percent year on year in October.

Retail and food sales, excluding automotive related revenue, rose 6.8 percent to $344 billion during the month of October. MasterCard Advisors’ SpendingPulse, a macroeconomic report tracking national retail and service sales, concluded that retail sales, excluding automotive revenue, grew by 7.1 percent year on year. The group estimated that department stores sales were flat. Sectors driving retail growth in October included e-commerce, electronics, the luxury goods category, groceries and travel. Furniture and furnishings, which tend to be tied to a strong housing market, posted a ninth consecutive year-over-year loss in October.

Kamalesh Rao, the director of economic research for MasterCard Advisors SpendingPulse, noted that, ''Last year saw a sales slump that began in May and went through September of 2010, which made for very easy comparisons during the summer months. Retail sales began to recover in October of 2010, and that has certainly had an effect on the year-to-year numbers this month. In addition, the unseasonable snow storm on the last Saturday of the month may well have impacted sales in the Northeast.''

-Rapaport

New Venture from Ethos Water Founder Peter Thum Transforms AK47s into High-End Jewelry

To combat the devastation caused by illegal assault rifles in Africa’s war zones, founder of Ethos water, Peter Thum, announced today the launch of Fonderie 47. Based in New York City, Fonderie 47 removes AK47s from war zones and transforms them into rare jewelry, watches and accessories. In partnership with NGOs working in Africa, Fonderie 47 already has destroyed more than 6,000 assault rifles. The sale of each piece of Fonderie 47 jewelry funds the destruction of more assault rifles.

Fonderie 47 sprung from the experiences that founders Peter Thum and John Zapolski had in Africa, where each has traveled extensively. They have seen assault rifles in the hands of children and witnessed firsthand the problem of assault rifles and how it hinders many aspects of development across Africa. “A transformation is needed to break this cycle of violence in Africa. To this end, we are turning the power of the AK47 against itself,” said Peter Thum, cofounder of Fonderie 47. “Not only do we destroy these weapons, but we invert what they stand for by remaking them into wearable art.” In collaboration with leading designers, including New York City based jeweler Philip Crangi and Swiss designer Roland Iten, the world’s premiere designer of mechanical luxury for men, Fonderie 47 is creating exceptional handcrafted and limited edition jewelry and accessories. Fonderie 47′s initial pieces include a limited series of men’s cufflinks, custom-made men’s rings, and hand-made earrings for women. The items currently are sold at private events around the world. Sales of each item, along with donations from individuals and foundations, fund programs to destroy more assault rifles in Africa.

“While we create rare objects, their true value emanates from the principles, purpose, ideas, and skill that go into them. The pieces are not merely beautiful – they have real impact on the world. To us, that is the measure of an object’s – and a person’s – character,” said Peter Thum.
For more information on purchasing products please contact Fonderie 47 online at www.fonderie47.com; login serial number 87538336.

-Diamond News

Tiffany Publishes Corporate Responsibility Report

Tiffany & Co. published its corporate responsibility report, online, www.tiffany.com/sustainability, detailing its accomplishments as well as continuing challenges this past year and its agenda for social change moving forward. The report provides insight into Tiffany’s corporate standards and operations regarding the sourcing of precious materials.

Website visitors learn that gold, silver and platinum used in Tiffany’s workshops are sourced from responsibly mined metal deposits and recycled sources in the U.S. to minimize environmental and social risks. In addition, Tiffany works with non-governmental organizations as well as the mining and jewelry industries to improve mining standards, and is working to protect areas such as Bristol Bay, Alaska.

''Our position as a leader in the luxury jewelry market gives us the opportunity and the responsibility to set an example for the industry and to conduct our business in a manner that is consistent with our core beliefs—protection of the environment, respect for human rights and support for the communities in which we do business,'' said Tiffany & Co.'s chairman, Michael J. Kowalski.

Tiffany lays-out the specifics of its diamond supply chain in the report and describes how the company works to purchase diamonds -- either directly from a mine or a supplier that only sources from known mines. ''Believing that diamonds should benefit the economies and societies of diamond-producing countries, Tiffany has invested in manufacturing operations, as well as employee development and training programs at Tiffany & Co. cutting and polishing facilities in Belgium, Botswana, Mauritius, Namibia, South Africa and Vietnam,'' the company explained.

Tiffany supports the communities where it operates through The Tiffany & Co. Foundation and corporate giving programs. In 2010, Tiffany donated close to 2 percent of pre-tax earnings to charitable purposes. Tiffany’s conservation efforts extend to its packaging as well. The online report states that Tiffany's blue bags and boxes are manufactured with materials certified by the Forest Stewardship Council (FSC), an independent, non-governmental organization established to promote the responsible management of the world’s forests. Catalogues are also produced using 99 percent FSC-certified materials.

In addition, this past year Tiffany & Co. joined the United Nations Global Compact, a strategic policy initiative for businesses that are committed to aligning their operations and strategies in the areas of human rights, labor, environment and anti-corruption and uses the report to communicate on its progress. Future reports will show progress and year over year performance comparisons.

-Rapaport

US NET POLISHED DIAMOND IMPORTS FOR SEPTEMBER DOWN 50.7%

American diamond traders were after pricier items in September, but purchased less of them, according to the latest government figures.

Net polished diamond imports by the US in September totaled $116 million, a sharp drop of 50.7% when compared to August 2011 and 55.1% compared to September 2010.

Gross polished diamond imports of $1.8 billion in September are a 22.3% year-over-year increase and a 9.6% growth from August 2011.

The volume of gross imports declined however by 6.3% to 1.1 million carats. Compared to August, imports increased by 2.3%.

Year-over-year, the average value of gross imports shot upwards by 30.5% to $1,645.29 p/c. Compared to August, the average value increased by 7.2%.

Gross exports of 1.5 million carats worth $1.68 billion are a one percent decline in volume but a 36.2% jump in the value, compared to September 2010. Month-over-month, exports decline 10.1% by volume and increased 21.7% in value.

The average value of gross exports leaped 174.1% year-over-year and a surprising 35.3% compared to August.

-Rapaport