The Natural Sapphire Company Discusses Mark Zuckerberg and the Ruby Embargo

Ruby engagement rings are unusual in the United States, but in Asia, rubies are one of the most popular non diamond engagement rings. “Priscilla Chan’s choice of a ruby engagement ring isn’t so uncommon by traditional standards in Asia. It’s a conservative choice.” Says Michael Arnstein, a specialty ruby dealer in New York.
New York, NY (PRWEB) May 25, 2012
“What’s important to know is whether the ruby was imported legally into the United States. We’ve had a hell of a time legally importing rubies for the last 5 years.”

In the United States, Burmese rubies have been banned from import since September 2008. (ref JCK) Congress passed the Tom Lantos Block Burmese JADE Act in 2008 prohibiting the import of Burmese-origin rubies. The act also bans gems that originate in Myanmar but are processed, treated or manufactured into jewelry in third-party countries such as Thailand. This restriction closes a U.S. Customs loophole that allowed Myanmar-originating stones into this country, despite a federal ban that dated back to 2003.
Importer Obligations - Under the new regulations, importers continue to be required to certify that their rubies were not mined or extracted from Burma. Yet this is not strictly enforced. The exporter must provide “verifiable evidence” that tracks the ruby from mine to place of first export. Arnstein claims, “The ruby engagement ring purchased by Mark Zuckerberg can possibly be an illegal import.” Mr. Arnstein discusses this further in his recent Yahoo News interview.

Companies such as Tiffany and Co. and Cartier stopped selling Burmese rubies years ago because of Myanmar's human rights violations, and Jewelers of America has applauded the act's passage, encouraging member retailers to support international human rights by steering clear of the stones.

Evan Guttman, CIO of The Natural Sapphire Company in New York, “Ruby engagement rings have been a staple of our business for a long long time. We’ve had a number of recent calls from people looking for similar ring designs based on Priscilla’s ring. We’re not surprised, it’s something that many of our clients choose for in an engagement ring. Mark’s ring is estimated to hold a 3ct ruby with about 1ct of diamond side stones, set in 18k yellow gold, estimated to cost about $50,000.-65,000. if the ruby is of fine quality.”

China’s love for the red sun has kept the ruby industry thriving in Asia. Prices for fine quality rubies have skyrocketed in the last ten years as emerging economies in Asia demand more of the rare red gemstone.

Some recent auction results for fine quality rubies:
April 2005 - On April 12th at Christie’s New York sale a 8.01 carat oval-cut Burmese ruby sold for $2,200,000 to an Asian private after heated bidding on the phones, setting a world auction record price for a ruby at $274,656 per carat.

Feb 2006 - On February 17, 2006 in St. Moritz, Switzerland, a 8.62 carat Burma ruby sold for $3.64 million at Christie's "Important Jewels". This set a new world record price for an unheated Burma ruby at $425,000 per carat.

April 2011 - An important 6.29 carat Burma ruby sold for $1.32 million at Doyle New York's Important Estate Jewelry auction on Wednesday, April 13. International competition drove bidding on the ruby ring past the pre-sale estimate of $60,000-80,000 to reach a staggering $1,322,500. At over $200,000 per carat, this is one of the highest prices per carat ever achieved for a ruby at auction.

May 2012 – Christie’s Geneva Auction - The top lot of the sale was a 32.08 carats cushion-shaped Burmese ruby and diamond ring, known as “The Hope Ruby”by Chaumet, which sold for more than $6.7 million, well above its $5 million high estimate. It is a world record price for any ruby sold at auction.


-www.timesunion.com

Luxury Spending Report: Lower-Income Affluents Return

U.S. consumers who are defined by Unity Marketing as ''high earners not rich yet,'' or HENRYs, have returned to the luxury goods marketplace, according to the retail consultancy. Unity Marketing considers HENRYs to have annual incomes of $100,000 to $249,999 and found their spending on luxury goods rose 11 percent in 2011 compared with 2009. It is important to note that up until that point, HENRYs had largely been ''missing in action'' since the great recession, according to Unity Marketing.

Additionally, since the ultra-affluent set, or those with incomes of $250,000 or more, reduced luxury spending by 30 percent year on year in 2011, HENRYs appeared on the scene to pick up some of that slack.

While HENRYs individually have a far lower spending threshold than ultra-affluents, they do account for 21.3 million U.S. households, or 10 for every ultra-affluent, making them a critically important part of the consumer market.

Unity Marketing found that in total, luxury goods and services spending grew only 1.3 percent between 2009 and 2011, with the best performing categories as measured by change in spending being travel (up 40.8 percent); kitchenware and cooks' tools (up 37.5 percent); entertainment (up 33.6 percent); dining (up 26.5 percent) and fashion accessories (up 23.4 percent).

Categories with the greatest contraction in spending by wealthy consumers during that three year period were kitchen appliances (down 23.9 percent); watches (down 20.1 percent); jewelry (down 10.2 percent), and furniture, lamps and floor coverings (down 7.3 percent), according to Unity Marketing.

While the typical HENRY can only, rarely if ever, indulge in core product ranges from ultra high-end luxury brands such as Chanel, Louis Vuitton, Hermes, or Gucci, they do support these brands with less costly purchases, such as lipstick from Chanel, small leather goods from Louis Vuitton, etc., noted Unity Marketing. However, HENRYs are key to brands with accessible luxury products such as Coach, Ralph Lauren, Tiffany, Kate Spade, Vera Wang, Michael Kors, Restoration Hardware and premium mass brands -- Ann Taylor, Banana Republic, Williams Sonoma, among others.

"After an extraordinary year in 2010, things are returning to a more normal state in the luxury market in 2011," said Pam Danziger, the president of Unity Marketing.

Based upon Unity Marketing's annual report that was release today, The Luxury Report 2012: the Ultimate Guide to the Luxury Consumer Market, luxury consumer spending peaked in 2010, but then fell back to recession-level spending in 2011.

Danziger added, "Last year we were looking for the return of the HENRYs back into the luxury market and this year we can say they have returned and are more positive about spending in the future. For example, in 2009 only 18 percent of the luxury consumers surveyed expected to spend more on luxury in the next 12 months; by comparison 26 percent in 2011 predict greater spending on luxury throughout 2012."

As another positive indicator, Danziger noted that fewer affluent consumers were altering their spending patterns due to economic concerns. Among the most notable positive changes in their lifestyle is that affluent consumers are dining out more often and shopping more frequently. They are less likely to delay purchases and in another indicator of a positive shift in sentiment, fewer affluents are resorting to using coupons to save money.

-Diamonds.net

Christie's Geneva Auctions Net $110M

Christie's achieved a combined total of $110,189,044 at its three Geneva auctions held this week. This is the highest sales total for a series of jewelry auctions at Christie's Geneva, the auction house said.

Christie's Magnificent Jewels sale realized $72,264,493 and was 84 percent sold by lot and 86 percent sold by value. The top lot was an antique Indian emerald, diamond and enamel sarpech, which sold for $4,718,060 setting a world record price for an Indian sarpech at auction. A pair of 16.21-carat and 15.67-carat, pear-shaped, D, VVS2, potentially IF diamond ear pendants by Harry Winston sold for $4,065,100 million or $127,500 per carat.

Another record price per carat was set when Laurence Graff purchased a 47.15-carat octagonal-cut Burmese sapphire brooch by Mellerio for $77,500 per carat or a total of $3,649,580. Additionally, a cushion-shaped fancy yellow, 14.66-carat, VS1 diamond and a 52.28-carat, VS1 square-cut fancy intense yellow diamond brooch achieved $2,996,620.

“World record prices were achieved all through the week as we completed the most valuable series of auctions at Christie’s Geneva," said Rahul Kadakia, the head of Christie's Geneva and New York jewelery departments. "From the ‘Hope Ruby’ sold for a record $6.5million from the collection of Mrs. Lily Safra to an Indian emerald sarpech, which achieved a sensational price after a 10 minute bidding-war in the saleroom between two determined bidders, jewelry buyers from all over the world showed great depth as they bid at the highest levels for every rare jewel and gem offered."

Earlier in the week, renowned jewelers who won top lots during the Lily Safra ''Jewels for Hope'' charity auction included Leviev, who bought a pair (19.43-carat and 19.16-carat) of pear-shaped, D, potentially IF, type IIa diamonds for $138,000 per carat or $5.3 million, and Chatila, who bought a 34.05-carat rectangular-cut, D, potentially IF diamond for $5.1 million or $150,000 per carat.

-diamonds.net

Diamond Market Liquidity is impacted by recent actions and decisions of Indian Government.

Indian Reserve Bank orders all foreign currency holders to ‎convert 50% of their balances to rupee in reckless attempt to control plunging rupee. ‎Recent irresponsible government actions include retroactive taxation and penalties, ‎import taxes on gold and diamonds and on/off excise taxes. Out of control Indian ‎government now posing serious threat to diamond market liquidity. Petra Diamonds 3Q ‎revenue +87% to $98M, production +126% to 622,509 cts. Blue Nile 1Q revenue +4% to ‎‎$83M, net income -94% to $154K. U.S. 1Q polished imports -7% to $4.8B. Hong Kong’s ‎‎1Q polished imports +9% to $4.3B. Belgium’s April polished exports -7% to $943M, rough ‎imports +20% to $1B.‎


Global Markets

United States: There is mixed sentiment in the wholesale market as trading has slowed ‎slightly in the past few weeks. Still, trading is taking place with many overseas buyers ‎looking for goods. Wholesalers who stocked up on inventory during the past few months ‎are in better shape than companies who need to source goods currently as scarcities are ‎prevalent. While retailers are engaged in Mother’s Day promotions, bridal continues to ‎dominate sales. ‎

Belgium: Trading has been relatively quiet with political and economic uncertainty in ‎Europe influencing the mood among buyers. There is demand for goods, particularly for ‎‎1.00-carat and 1.50-carat, commercial quality diamonds. Suppliers have noted a ‎shortage of SI clarity stones. Rough trading is cautious following last week’s Diamond ‎Trading Company (DTC) sight as manufacturing profit margins remain tight. ‎

India: Polished trading is restrained due to the ongoing summer vacation and continued ‎volatility in the rupee-dollar exchange rate. Domestic buyers continue to experience tight ‎liquidity, while very few overseas buyers are seen in the market. Overall demand is ‎weak, particularly for lower piqué goods. The local gems and jewelry industry is relieved ‎with the government’s cancellation of the excise duty on jewelry, but consumer demand ‎is not expected to pick up significantly in May since it is generally not a busy month for ‎weddings. Local rough trading continues to be weak. There is sufficient rough supply but ‎manufacturing levels continue at levels below capacity. Select trading is observed in ‎rough goods which yields polished of I color and lower.‎

Israel: Polished trading continues to be affected by the money laundering investigations ‎that allegedly took place in the bourse during the past three months. Dealers are cautious ‎about who they do business with. Still, there is activity and good demand for 1.00-carat, ‎‎1.50-carat and 2.00-carat stones with G-H color and VS-SI clarity. Some have noted that ‎it is not easy to fill requests due to shortages in the market. Dealers are focused on ‎preparing for the JCK Las Vegas show hoping that steady U.S. demand will boost trading ‎in the second half of the year. ‎

China: The wholesale market is stable but dealers remain cautious mainly due to the ‎weakened economic outlook. There has been some slowdown in activity since the May ‎Day weekend as many trading partners in India are on vacation and many retail buyers ‎still have inventory remaining from the holiday. Buyers are increasingly price sensitive. ‎There is steady demand for 1.00-carat, G-H, SI1 certified polished diamonds. ‎

Hong Kong: Wholesale trading has slowed in the past month due to a weaker outlook for ‎the Chinese economy. Suppliers are trying to push prices higher but they are meeting ‎resistance from buyers, particularly on round diamonds. There is continued strong ‎demand for fancy shape stones and well cut fancy shapes sell relatively easily. Local ‎retail sales are also relatively slow. ‎

-Diamonds.net

Element Six to Build Synthetic Diamond Innovation Center

Element Six will begin construction of the world’s largest synthetic diamond supermaterials research and development facility in Harwell Oxford, just 20 minutes from Oxford, England. This new $32 million (GBP 20 million) facility will consolidate Element Six’s global innovation team into one integrated space, where it will develop a pipeline of products for customers in industries from oil and gas drilling to machining and electronics.

Once complete in spring 2013, this new innovation center will reinforce Element Six’s position as a world-leader in synthetic diamond research and employ more than 100 engineers, scientists and technicians, according to the firm. In addition, 50 new material science jobs will be created, with the vast majority of those positions made available for highly-qualified graduate scientists, engineers and physicists.

Element Six, which is co-owned by the De Beers Group and Umicore, applies the extreme properties of synthetic diamond supermaterials within abrasive applications and for a diverse range of advanced technologies. One such example includes the speaker dome that is used in the Bowers & Wilkins 800 Diamond Series loudspeakers for which Element Six has just been awarded the prestigious Queen’s Award for Enterprise in Innovation in the U.K.

The Harwell Oxford location was chosen by Element Six, through support from U.K. Trade & Investment, due to its proximity of emerging technological talent and excellent global connectivity. Harwell Oxford is owned and managed by a public-private sector joint-venture to foster innovation and business in science and technology. There are more than 4,500 people involved in this community, working in some 150 organizations including key U.K. Research Councils, start-ups and multi-national organizations.

Through an “open innovation” campus structure, organizations based in Harwell Oxford are brought together at each stage of the development process. Harwell Oxford provides a supportive environment where networking and collaboration facilitate access to technology, support services and potential customers. There is also extensive development potential for new or growing organizations and investors looking to become part of this community.

Element Six's chief executive, Cyrus Jilla, said, ''I am positive [the center] will deliver higher performance products for our customers, disruptive technologies for new applications and markets, inspire and spur new related businesses in the U.K., and provide an extremely rewarding environment for our scientists who are at the forefront of their field.''

Vince Cable, a member of Parliament and Secretary of State for Business, Innovation and Skills, said, ''The investment by Element Six, that will bring a world-class research and development facility to Harwell, shows that the U.K. is a great place for innovative and cutting edge industries to invest. Along with a real boost to the local economy, providing around 50 new highly-skilled engineering jobs, the investment shows that the Oxford region is a world leading location for hi-tech research, and that the U.K. is open for business.''

-diamonds.net