Wednesday, December 28, 2011

India Pays Higher Prices for Same Rough Diamonds


The value of India's rough diamond imports and exports increased sharply in November, however the volume was largely unchanged from last year, based on provisional figures published by the GJEPC.

India's net rough diamond imports in November totaled 8.8 million carats worth $1.02 billion. This is a 6% decline in volume yet 42.1% rise in value compared to November 2010.
The value of India's gross rough diamond exports leaped 48.7% to $1.17 billion in November. The volume of exports made a less dramatic increase, up 2.4% to 11.2 million carats.

The disparity between the increased value and volume of exports is a result of a large overall increase in rough diamond prices over the past year. This is also reflected in the difference in the average value of imports. The average value of gross imports in November was $104.09 per carat, compared with $69.90 p/c in November 2010.
Rough diamond exports have leaped in November. India exported $146.3 million worth of rough, up 166.5% year-over-year. The volume of exports increased 50.1% to 2.38 million carats.

-Israeli Diamond Industry

Jeweler donates 20% of line's sales to fight autism

Bartow’s Jewelers here has announced that it will donate 20 percent of every purchase of select Sarah’s Hope Jewelry designs from the store this holiday season to Families Advocating Autism Now (FAAN), a local group dedicated to helping the families of children diagnosed with autism.

Sarah’s Hope Jewelry is a socially responsible jewelry line that helps provide microloans and small businesses training women in impoverished situations throughout the country and world.

“Through their purchases of Sarah’s Hope Jewelry, our customers have participated in the efforts to help life hundreds of women through small business ownership,” Lisa Barrote, owner of Bartow’s Jewelers, told northern California’s Times-Standard. “Now we’re thrilled to also help locally by giving back to the FAAN club of Humboldt.”

The promotion at Bartow’s Jewelers will run through Dec. 24. Customers can choose from a selection of Sarah’s Hope earrings, bracelets and pendants in sterling silver and colorful “E’Sperene” stones, the proceeds of which will benefit FAAN.

“We know there are many needs in our country, and we are excited that our customers will help by purchasing gifts that not only look good, but help do good for the families of children who have been diagnosed with autism,” Barrote said.

Sarah’s Hope Jewelry sales will also be helping another charity this holiday through the help of Jewelers Mutual Insurance Company. Jewelers Mutual is participating in a “Giving Back Locally” program by contributing $1,000 to charity in honor of the jeweler who raises the most money through sales of Sarah’s Hope line during the holiday season.

-National Jeweler

NASDAQ Reprimands Pandora Over Sales Forecasts

The NASDAQ OMX Copenhagen reprimanded Pandora on Dec. 22 for not informing the market that it would miss its annual revenue forecasts.

On Aug. 2, the Danish charm manufacturer announced it was dramatically scaling back its yearly projections—which originally foresaw a 30 percent jump in sales. But NASDAQ ruled that “it must have been clear to the company at an earlier stage” that its previous projections could not be reached.

The exchange noted the resetting of expectations led to a 70 percent drop in the company’s share price, and occurred only three and a half months after the positive guidance was issued.

In a statement, Pandora said it “acted properly” in response to “a swift and unexpected downturn in sales.”

“At the beginning of July 2011, year-to-date revenue was up 22 percent against the same period in 2010,” the company noted, adding that at the time it believed its prior forecast of 30 percent revenue growth would still hold.

However, “trading conditions significantly worsened in July 2011, with revenues in July 2011 being down by more than 30 percent against July 2010,” the company added.

At this time, executives “acted decisively and in a timely manner” by broadcasting the new projections, said the statement.

The company said it is in dialogue with the Danish Financial Supervisory Authority.

On Dec. 19, Pandora announced it had hired a new CEO.

-JCK Online

Friday, December 23, 2011

Crossworks to Cut De Beers Diamonds Worth C$35M Over 3 Years

Canada’s Sudbury-based Crossworks diamond manufacturer is expected to nearly double its workforce now that the company has won a three-year contract to cut some C$35 million from De Beers’ Victor Mine, the CBC reports.

According to the Ministry of Northern Development and Mines, De Beers Canada has an agreement to offer 10% of the rough diamonds produced at the Victor Mine for sale to be manufactured in Ontario.

Currently, Crossworks’ Sudbury plant employs a workforce of 29, a number that is expected to increase to 50. Due to a lack of qualified diamond cutters and polishers in Ontairo, the company will invest in training the new workers.

-Israeli Diamond Industry

Jaipur Jewellery Show Begins in India

The ninth edition of Jaipur Jewellery Show (JJS) kicked-off on Friday with only average visitor traffic, but exhibitors are expecting activity to pick up over the weekend. About 450 exhibitors are participating in the event, which runs until December 26.

"Our aim is to promote the domestic industry. This is also a consumer show and so we want to promote more of our Jaipur jewelry, Rajasthani jewelry and then Indian jewelry," said Rajiv Jain, the secretary of the JJS organizing committee and chairman of the Gem & Jewellery Export Promotion Council (GJEPC).

Navin Dangi of ND Creation stated that visitor traffic is average since it’s the first day of the show. “We are getting mostly inquiries from retail consumers. Hopefully it will be better in the next two days as we expect visitor traffic to increase in the weekend,” he added.

Sitesh Hirawat, a director at DP Designs, said that visitor traffic is better than last year, but since it is the first day of the show it was unclear how inquiries would convert into actual business. An executive with exhibitor M.B. Sons (I) said, “The response is good from consumers for our jewelry. They have specific needs and it gets easily fulfilled during this kind of show.”

Aditya Kothari of Jaipur-based Daksh Jewellery said that traffic is light today, but that was okay as inquiries are being made and a few sales were also taking place.

JJS, also known as the December show, is considered as the second largest jewelry show in India, according to the organizers, who said 85 percent of the exhibitors are repeat exhibitors. Organizers expect around 25,000 to 30,000 visitors to participate in the show, mostly from various parts of the country. Some visitors are also coming from Thailand and Hong Kong.

The organizers, which promote one gemstone every year in the show, are promoting "Kundan-Meena" this year. Vimal Surana, convener of the organizing committee said that JJS will have “diamond jewelry-Jaipur adds color to it” as the theme for the next two years.

Vikram Merchant, the manager of Rio Tinto Diamonds’ Indian representative office in Mumbai and who inaugurated the show, said that the years ahead will see the emergence of India as a major diamond jewelry consumer and also as a major diamond producing country. He added that no other country in the world has the same potential as India to be a major producer, manufacturer and consumer of diamonds.

''The gifting market offers significant potential for diamond jewelry consumption growth,'' Merchant said.

-Rapaport

RapNet Suspends Member for Listing Marange Diamonds

Martin Rapaport reiterated RapNet’s policy against listing diamonds from the Marange region of Zimbabwe—and announced that the computer-trading network last week suspended a member believed to have listed those stones on the service.

“We are going to take extreme efforts to make sure that the diamonds we offer are not from Marange,” the chairman of Rapaport Corporation said on a Dec. 22 conference call. “We are committed, really committed [to not listing Marange diamonds]. I don’t believe we are going to be perfect right away. But we want to move in that direction rapidly.”

Rapaport said his network is thinking about banning green-tinted stones, since many Marange diamonds are known to be of that hue, and may also “offer rewards” to anyone who reports a member who violates the rules.

He urged RapNet members to ask their suppliers about the origin of their diamonds.

“You have to start digging deeper as to where the supply chain is,” he said. “We want members to honestly and responsibly and reasonably investigate where their diamonds are coming from.”

“Talk to your suppliers,” he added. “Get to know your customer really well, and make sure they are legitimate.”

He also wants members to “affirmatively state” that their diamonds are not from Marange.

“You can’t just say everything’s fine,” he said. “You really have to understand what is happening in your supply chain.”

“Some people are saying, ‘Rapaport, you are crazy. People don’t go and investigate.’ I have this strange idea that there are a lot of good diamond people out there. We want a good, safe, honest, legitimate, trading network. And if we lose members, I really don’t care.”

When one questioner noted that many suppliers say they have no idea where their diamonds are from, Rapaport responded, “I don’t know if diamonds go through that many hands. If you list on RapNet, I don’t know if you are one or two steps away from the mine.”

Rapaport argued that Maragne diamonds pose three problems for the industry. First, they are illegal in some countries due to OFAC and European Union sanctions against the Mugabe-linked entities involved in their production. Second, they raise “moral and ethical” quandaries because they are linked to reports of past human rights abuses. Third, they represent “reputational risk” for the industry, given greater social awareness among consumers.

In addition, Rapaport announced plans for a broad-based campaign that will ask jewelers to pledge that they are not buying diamonds from the region.

“This campaign will ask people to take a pledge that they will investigate their sources,” he said. “It’s for everyone who believes in this ethical idea."

And finally, Rapaport said he will move ahead with his plan to offer “ethical certification,” which will track where a diamond comes from, and then grade its provenance.

-JCK Online

Thursday, December 22, 2011

Online Buyers of Jewelry, Luxury Goods Rise in India

The number of online shoppers in India searching for jewelry, luxury goods and accessories rose 36 percent year on year to 2.1 million in November 2011, comScore reported.

“The online channel is playing an increasingly important role in connecting retailers with potential customers in India,” said Kedar Gavane, comScore director for India. “To take advantage of this growing opportunity, retailers must ensure they are addressing the needs of potential customers, which include attractive pricing and the convenience of ordering online.”

A total of 27.2 million online users in India aged 15 and older accessed the retail category from a home or work computer, representing an 18 percent increase from the previous year. Consumers continue to turn to the web to shop for and purchase items and retailers continue to increase their online visibility through active marketing campaigns, comScore noted.

The company added that among the retail subcategories, coupons were the largest with 7.6 million visitors, a six-fold increase from the previous year. Consumer electronics ranked next with 7.1 million visitors growing 12 percent from November 2010, while 5.8 million online users visited comparison shopping sites, up 25 percent from last year.

“The rapid growth of online coupon sites suggests that consumers in India are looking for deals, highlighting the need for online retailers to adopt effective marketing and pricing strategies for their goods,” Gavane said.

The report noted that Amazon sites led as the top retail destination in India reaching 6.8 million visitors, representing 14.7 percent of the online population. Apple.com worldwide sites saw its audience reach 3.4 million visitors, followed by Samsung Group with nearly 2.8 million visitors. Other top retail destinations included Flipkart.com, HomeShop18.com and Naaptol.com.

-Rapaport

U.N.: Kimberley Process “Too Important to Fail”


Delegates to the United Nations General Assembly called the Kimberley Process Certification Scheme “too important to fail," and credited it with significantly reducing the trade in conflict diamonds, according to a Dec. 20 United Nations press release.

However, many also expressed concern that NGO Global Witness, a founding member of the KP, had left the organization, in part over the scheme's recent approval of exports from the Marange region of Zimbabwe.

A representative of the Delegation of the European Union welcomed the enhanced cooperation regarding implementation of the Process, particularly with the World Customs Organization.

But he stressed that civil society participation was a key element to the group's effectiveness and said participants needed to boost the system’s credibility. He also said he was encouraged that many civil society groups continue to remain engaged in the KP.

Canada’s representative said the process was at a “critical juncture” and needed to adapt to “new realities.”

The representative of the Russian Federation supported the KP’s November decision to allow exports of Marange diamonds, and urged the establishment of strengthened internal controls in producer countries and improved transparency of statistics.

Israel’s delegate noted that the Kimberley Process’ success is demonstrated by the fact that conflict diamonds now number 1 percent of the global market, down from 15 percent in the 1990s. He also expressed support for reforms, particularly the formation of a secretariat.

Also speaking was KP chairman Matthieu Yamba, who noted that Swaziland had joined the certification scheme, while Mali, Mozambique, Cameroon, Panama, Burkina Faso, and Kazakhstan had expressed interest in joining.

He also announced that Venezuela, which left the Kimberley Process two years ago, had also complied with the recommendations issued to it at the recent Plenary, and was now entitled to rejoin the scheme.

-JCK Online

Beware Glass-Filled Ruby, Trade Warns

On Dec. 20, a coalition of six industry associations published a consumer advisory noting the increased amount of lead-glass-filled rubies in the marketplace, warning they are often sold without disclosure, “with no information on the required special care to maintain the appearance of the product.” The release notes that certain actions, including common exposure to heats, acids, and polishing, can drastically alter and even ruin the appearance of these products.

The six groups behind the statement are the American Gemological Laboratories, American Gem Trade Association, Gem Research Swisslab, Jewelers Vigilance Committee, Manufacturing Jewelers and Suppliers of America, and the New York Gemstone Association.

The statement called on ruby sellers to disclose any and all treatments, noting that nondisclosure is a violation of Federal Trade Commission guidelines. “There is, and always has been, a legal responsibility to disclose not only the treatment but also the special care required with this product,” Douglas K. Hucker, CEO of the AGTA, tells JCK.

In fact, depending on the level of treatment and lead glass filling to which this material has been subject, it may be improper to use the name ruby alone to describe these products, the statement notes.

Nondisclosure can also cause financial loss to retailers and consumers who think they are buying rubies at bargain prices, and damage overall consumer confidence in the industry, according to the statement.

Undisclosed treated ruby has been a problem for a long time, according to Bear Williams, director of Stone Group Lab in Jefferson City, Mo. Williams says the material started showing up in the trade seven years ago. He worked with industry leaders to help strengthen disclosure language when he saw that much of it was not being revealed for what it was.

“If you know what you’re buying, it’s okay and the product should not be demonized,” he explains. “But if people are buying what they think are natural rubies, then we’ve got some serious issues.”

Gemologist and author Antoinette Matlins, who aided Good Morning America in a nationwide investigation of undisclosed ruby composite products in 2009, notes that even lemon juice can damage a lead-glass-treated ruby.

“Clearly in the gemological community, there is growing concern about communicating that these are not like any other ruby,” she tells JCK. “If a product no longer behaves like a ruby, then it can’t be called a ruby. Ask any bench jeweler about how lead-glass-treated rubies behave. Their chemical composition is no longer essentially that of a corundum.”

The groups behind the statement noted that while FTC regulations do not mandate exact wording to identify the products or disclose treatments, a compilation of descriptions and classifications used by some gemological laboratories and trade associations are outlined here:

American Gem Trade Association: "Glass filled composite ruby, special care required." See Gemstone Information Manual.

American Gemological Laboratories: Composite ruby represents a composite of natural corundum and glass, also known as hybrid ruby, and is heavily treated … vastly improving the apparent clarity and adding weight.

Gemological Institute of America: For a vast majority of this material (LMHC Info Sheet 3 Levels 2 & 3), GIA will not issue ruby reports but will issue identification reports and the description “a manufactured product consisting of glass and ruby” and that “this product is known to be unstable” and requires special care.

Gemological Research Swisslab: “Synthetic Glass/Treated Ruby” (GRS–type “Hybrid Ruby”) with comments heat-treated and filled with a colored foreign solid substance (including lead). Special care required when handling, also known as composite ruby.

-JCK Online

Wednesday, December 21, 2011

Blue Diamond Sold at Petra’s Tender Realizes Per-Carat Price of $300K


A 4.8-carat blue diamond from Petra Diamonds’ Cullinan mine sold for $1.45 million at a tender earlier this month, a per-carat price of over $300,000, the company announced Wednesday.

(photo not of actual diamond)

The sale of the blue diamond marks the highest per-carat price for any rough diamond sold by Petra thus far.

In other news from Petra Diamonds, the company’s shares begin trading today on the London Stock Exchange’s Main Market.

-The Israeli Diamond Industry

Swatch can reduce component supplies in 2012

A Swiss court has rejected the appeal of watchmakers seeking to put a stop to Swatch’s reduction of mechanical watch movements and movement parts slated to begin next year.

Federal Administrative Court spokeswoman Joanne Siegenthaler said on Monday that the nine companies that filed the appeal were informed on Dec. 15 that a panel of three judges denied their appeal. The court did not give the companies any information about why the appeal was denied.

The judgment will be published in it entirety in early 2012 and, after that, the companies will have a limited time to appeal the ruling to the Federal Supreme Court, she said.

Swatch Group declined to comment on the decision, which many in the industry fear will cause supply problems and drive up prices.

Watchmaker Frederique Constant, one of the nine companies involved in the appeal that has been very outspoken about the movements issue--an issue about which many of the industry’s largest companies have declined to speak publicly--supplied a statement indicating that the decision could spell the end for smaller, independent watchmakers.

“Certainly, a number of smaller manufacturers will be forced out of business,” company co-founder Peter Stas said.

He said Frederique Constant is fortunate in that it started developing in-house movement in 2001. Still, “despite this early start” the company said it needs another five years before it can produce the critical assortment, the watch oscillating system.

The company said it aims to have two suppliers for all its components but that won’t happen until 2015.

Post-ruling, Stas told Reuters that the company “will be under pressure from January because of the income cut as we will receive fewer components and, at the same time, will have to invest in our production.”

Miguel Gracia, president and CEO of movement manufacturer Sellita Watch Co. SA, who also has been outspoken on the Swatch issue, did not respond to request for comment on the ruling on Tuesday.

Though rumors have abounded for years that Swatch Group was looking to reduce its role as the watch industry’s movements supplier, the company made it official in June, when it said that it had asked the Swiss Competition Commission (Comco/Weko) to begin an investigation into allowing Swatch to reduce compulsory supplies of movements and movement components to third-party companies.

The commission, which still has yet to make a final decision on the future of watch supply from the Swatch Group, put interim rules into effect that allow Swatch Group to begin reducing supplies of mechanical ETA movements to 85 percent of 2010 levels and of Nivarox assortments to 95 percent in 2012.

The nine companies then appealed these interim measures to the Federal Administrative Court.

-National Jeweler

Gemvision releases Matrix 7 design software version

Gemvision LLC has announced the release of Matrix 7, the latest version of 3D jewelry design software that includes radical new features.

Matrix 7 now offers the integration of T-Splines modeling functionality, enhanced Gem Tools and expanded V-Ray rendering capabilities.

The new range of surface modeling tools powered by T-Splines offer the user a new way to design organic and flowing jewelry elements. This approach to CAD elicits the look of fluid jewelry without the labor of building the model curve by curve. Built into Matrix 7, a vast library of starting point T-Splines help to jump start the user’s creations.

New Gem Tools offer more control over the layout of gems. Whether remounting customer gems or creating a stock design from scratch, there is a Gem Tool designed to make the job faster and easier. Matrix 7’s new V-Ray rendering engine allows users at any skill level to create photorealistic images of their jewelry designs and incorporate effects.

Other upgrades and enhancements found in Matrix 7 include a new F6 mode, which strategically places favorite tools in one customizable menu; expanded share modes, which provide an at-a-glance functionality with designing; and a new “smart flow” functionality that allows users to easily design in 2D and have a corresponding 3D model automatically created.

“Matrix 7 gives you more options than ever before,” Jeff High, Gemvision founder and president, said.

The first version of Matrix was launched in 2000. Currently taught at 55 schools and universities, Matrix is also supported by comprehensive Gemvision-sponsored training and user events worldwide.

Headquartered in Davenport, Iowa, Gemvision was founded in 1990 and now has facilities in Illinois, North Carolina and the United Kingdom.

-National Jeweler

Tuesday, December 20, 2011

Gold Prices Hold Below $1,600 per Ounce


Gold prices have not closed at over $1,600 per ounce since December 13.

MarketWatch reports that gold for February delivery dropped $1.20 on the Comex to close at $1,596.70/ounce.

However, following news of North Korean leader Kim Jong-Il’s death, gold appeared to be rebounded. The precious metal was trading at $1,599.30 per ounce in Singapore.
Bloomberg notes that sport gold hit a two-month low of $1,590.97 on December 15. Gold has dropped 1.5% this quarter, although prices are still 13% higher than last year.

Platinum was up, gaining nearly half a percent to trade at $1,417.25 per ounce.

-Israeli Diamond Industry

Ivanka Trump Fine Jewelry Opens in SoHo

Celebrity guests like Hugh Jackman, Robert Verdi, rocker Dee Snider, and more, helped celebrate the recent opening of the newly relocated Ivanka Trump Fine Jewelry Store at 109 Mercer Street.

Formerly stationed on Madison Avenue at 61st Street, the new boutique occupies nearly triple the amount of space than initial digs, and the new neighborhood is “more simpatico with the energy of the brand,” Trump told the New York Post this fall.

The new flagship features 10 different jewelry collections (including the Tassel Collection), an environmentally conscious and glamorous bridal salon, a VIP room, and an elegant gallery of showcases in a light, airy, and ĂĽber glamorous space complete with a black, white, and coral interior designed by NY3 Design Group, which includes mirrored walls, a signature carpet design from ABC Carpet & Home, and a massive Schonbek chandelier.

Guests sipped champagne from Nicolas Feuillate and signature cocktails featuring Pisco PortĂłn, and munched on miniature stuffed cupcakes from fellow SoHo-based firm Baked by Melissa. The youthful culture of SoHo is the inspiration behind Trump’s motto, Rock Tradition.

“My collection pays homage to the past while embracing the future, which is exactly how SoHo has reinvented itself,” Trump said. “I find SoHo’s trademark cast iron architecture and buildings to be remarkably inspiring and look forward to being in a neighborhood with such invigorating energy."

Ivanka Trump Fine Jewelry CEO Andrea Hansen tells JCK that the space is, indeed, a “much better representation of the energy of our brand.” In addition to greatly increased traffic, the location is ideal for appealing to the brand’s growing global clientele, and, for cultivating a stronger bridal business with its dedicated salon.

“Our friends at Waldman Diamonds have done a fantastic job with our sales team improving their diamond expertise both in product knowledge and sales techniques,” Hansen explains. “The collection is solid and growing. The energy of SoHo is contagious, and the feedback of our visitors and clients is extremely positive. We're now putting together a biweekly schedule of events as one of our goals in this new spot is to use the space to partner with other brands, groups, and organizations to support women's initiatives and start-ups.”

In other news from the brand, Ivanka Trump Fine Jewelry is among the newest exhibitors slated to appear at Elite Enclave, an intimate event held in conjunction with the LUXURY show at JCK Las Vegas. Scheduled to run from Tuesday, May 29 to Thursday, May 31, Elite Enclave allows its brands and designers to showcase their work in a boutique setting "infused with a carefully curated selection of art, music, and design," according to the organizers.

-JCK Online

De Beers Antitrust Claims May Finally Be Paid

If you filed a claim in the De Beers class action antitrust settlement, you may finally be getting your money in the near future, thanks to a new court decision.

On Dec. 20, the En Banc Panel of the Court of Appeals of the Third Circuit affirmed the $300 million De Beers settlement reached in 2006. The panel's decision overturns an earlier court ruling that put the settlement in limbo.

The only remaining option for the objectors, Jewelers Vigilance Committee president and CEO Cecilia Gardner tells JCK, is to ask for a rehearing, or appeal to the Supreme Court. But one objecting lawyer says that isn't likely.

“As the court recognized, this was a tremendous victory for all purchasers of diamonds,” says New York University professor Samuel Issacharoff, one of the appellant attorneys. “I think this litigation is finally behind us all.”

Class action attorney Jared Stamell agrees that “based on this decision, we expect no further litigation.”

“I’m glad this is finally affirmed,” he says. “We can begin now to put the machinery of distributing money into place. We hope to complete this in a manner of months.”

He noted that the original $300 million has been sitting in escrow for six years and has gained interest.

“[Class members] will get a little more money with the interest,” he says. “But with interest rates so low, I don’t know.”

Gardner cautions that any payouts likely won’t be a big sum for most class members in the jewelry business—“enough to take your staff out to lunch,” she says.

She adds that the period of time to file claims has expired.

-JCK Online

Leibish & Co. Unveils The ‘Prosperity Pink Diamond'

Leibish & Co. unveiled a 1.68-carat special vivid purplish-pink, I1 clarity, radiant-shaped polished diamond cut from rough the company won at this year’s Argyle pink diamond tender. Leibish, a Ramat Gan-based specialist in fancy color diamonds, reported that it won six of the 55 stones tendered by Argyle this year.

Shmulik Polnauer, chief buyer at Leibish & Co., explained that the company lost just three points from the original 1.71-carat rough stone, while significantly upgrading the diamond’s color intensity. Leibish noted that the stone is one of the largest Argyle vivid pinks currently available on the market.

The company noted that the number 168 has special significance in both Chinese and Hebrew, implying prosperity.

''Aside from its obviously extreme rarity and exquisite beauty, this 1.68-carat, fancy vivid purplish pink, radiant-shaped diamond is now considered by many to be a true sign of a path to prosperity,'' Leibish said. The company named the stone, ''The Leibish Prosperity Pink Diamond.''

-Rapaport

Monday, December 19, 2011

The Diamond Trading Company Announces Provisional Sightholder List


The Diamond Trading Company (DTC) has announced the provisional qualification of 72 Sightholders for the upcoming Supplier of Choice (SoC) contract period, which begins on 31 March 2012 and runs to 30 March 2015. As part of the provisional list, 66 applicants have qualified for supply in London, 10 in South Africa, 21 in Botswana, 13 in Namibia and 2 in respect of Canadian goods.

Every applicant for a Supplier of Choice Sightholder contract has been through a rigorous and objective selection process, based upon the information they provided in their Contract Proposal Questionnaire (CPQ). The relative score for each CPQ, combined with the DTC?s forecast availability in each category of rough diamonds, is used to determine the level of supply offered.

Additionally, all applicants are required to confirm their adherence to the De Beers Best Practice Principles, ensuring that, like all companies within the De Beers Group, Sightholders are 'living up to diamonds' by adopting the highest ethical standards in their business practices.

In applying the Sightholder criteria, against which all applicants have been assessed, the DTC is seeking diamantaires that are the very best in their field, committed to investment and innovation, passionate about diamonds and best placed to add value to the diamonds we sell.

For unsuccessful applicants, the potential remains for them to qualify for a SoC contract during the course of the 2012-2015 contract period. Any company purchasing goods through the Diamdel auctions may, based upon demonstrating strong demand for a particular category of goods, be invited to apply for a Sightholder supply contract, subject to the DTC's forecast availability.

Varda Shine, DTC CEO, commented on the announcement: “With a growing gap between rough diamond demand and supply globally, the key to growth during this 'Diamond Decade' is adding value, which is at the core of the Supplier of Choice strategy. The Sightholders who have qualified for the 2012-2015 contract period have demonstrated their strong capabilities in this area.”Philippe Mellier, CEO of De Beers Group, said: “The success of the DTC is measured by its partnerships with producer countries and with its Sightholders. Competition for supply has been very intense, and the qualifying applicants represent a world-class set of diamantaires who are well placed to add value to the diamonds we sell.”

Prior to confirming the offer of a DTC supply contract, all newly qualified applicants will have their CPQ's verified by a third party and, at the DTC's discretion, returning Sightholders' CPQs may also be verified.

The DTC is committed to beneficiation and, as part of the new contract period, more De Beers diamonds than ever before will be made available to a larger pool of Sightholders in Botswana and Namibia. Adding further value to diamonds in-country has proven to drive job creation, skills evelopment and economic diversification.

-The Israeli Diamond Industry

AGS Appoints Alethea Inns Director of Diamond Grading

The American Gem Society (AGS) Laboratories has appointed Alethea Inns as its director of diamond grading. The new position is part of AGS Lab’s program to generate growth and expansion, maintain its level of service, and strengthen its commitment to a one-week turnaround time of grading results, AGS said.

''We’re very excited to have Alethea join the AGS Laboratories’ management team,'' said, executive director of the AGS Labs, Peter Yantzer. ''Alethea brings a broad range of technical knowledge and practical experience that is perfectly suited to the laboratory and our future plans.''

Inns holds an honors B.Sc. in geology from McMaster University in Canada and her graduate gemologist (in residence), accredited jewelry professional, graduate pearls, and jewelry business management credentials from the Gemological Institute of America (GIA).

-Rapaport

NRF Significantly Upgrades Holiday Forecast


Citing “better than expected holiday sales,” the National Retail Federation has significantly upgraded its holiday sales forecast.

It now expects overall holiday sales to rise 3.8 percent his year to a record $469.1 billion. It had originally predicted a 2.8 percent increase.

The group notes that both numbers fall below 2010’s final tally, which saw a 5.2 percent gain.

“After strong sales reports in October and November, along with a successful Black Friday weekend, retailers are cautiously optimistic that this season will turn out better than initially expected, bringing added stability to our recovering economy at a time when America needs it most,” NRF president and CEO Matthew Shay said in a statement.

Among the causes for optimism: a rise in November sales over last year. The group also said its recent survey showed that consumers have less than half of their holiday shopping complete.

-JCK Online

Thursday, December 15, 2011

Strong demand for signed jewels at Sotheby’s

Two jewelry auctions held at Sotheby’s here on Dec. 7 achieved a combined total of $30.4 million.

“As has been the case throughout our recent auctions, sales saw persistent demand and strong results for unique and signed jewels,” Lisa Hubbard, co-chairman of Sotheby’s international jewelry department, said.

The auction of “Magnificent Jewels” realized a total of $28.5 million, with 67 percent of the sale sold by lot and 46 percent sold by value. The auction was led by top prices for white diamonds, natural pearls, sapphires and emeralds.

The top lot of the auction was a 23.62-carat oval diamond ring (below) of VS1 clarity, which sold for $1.9 million, or $79,361 per carat, to an Asian private collector.

A 1924 Cartier platinum and diamond sautoir necklace (below) with a lavaliere pendant sold for $1.7 million to an Asian private collector.

A Kashmir sapphire and 16.40-carat diamond ring sold for $1.6 million, or $97,226 per carat.

“Though we are disappointed to have not found buyers for our top two stones amongst the rarified group of collectors at the highest end of our market, the results for the remainder of the sale demonstrate a continued demand for pieces of quality and unique character,” Hubbard said.

Auction “The Elegant John Traina-A Portrait in Style” realized a total of $1.9 million, more than triple its pre-sale high estimate of $570,000, with 100 percent of the sale sold by lot and value. A collection of the late author’s accessories and watches were offered at the auction, including pieces by Cartier, Van Cleef & Arpels and Harry Winston.

The top lot of this sale was a circa 1920 Cartier platinum, cabochon sapphire and diamond dress set, which sold for $182,500 after a pre-sale high estimate of $15,000.

A Harry Winston platinum, 18-karat white gold, sapphire and diamond dress set sold for $164,500 after a pre-sale high estimate of $20,000.

A Harry Winston 18-karat gold, sapphire and emerald dress set realized $134,500 after a pre-sale high estimate of $30,000.

-National Jeweler

De Beers Diamond Jewellers Opens in Kowloon

Today De Beers Diamond Jewellers opened at ELEMENTS in Kowloon, an urban area of Hong Kong. The luxury group defined ELEMENTS as being at the epicenter of luxury shopping and it marks the company's second store in Hong Kong after The Landmark in Central.

The highlight of this opening was the world debut of the Swan Lake Collection by De Beers. Inspired by the fluidity, beauty and elegance of ballet, intertwining lines of specially selected fancy-cut diamonds (pear, oval and marquise cuts) are reminiscent of the complexity and sophistication of a dancer’s choreography and performance. The special “Red Carpet” Swan Lake necklace features 258 white, fancy cut diamonds for a total of almost 123 carats.

The new 850-square-foot ELEMENTS store features a completely new design concept of glass, light and openness. At the opening ceremony, François Delage, the chief executive of De Beers Diamonds Jewellers, said, ''We are thrilled to open our first store in Kowloon, and further more our second location in Hong Kong. The magnetic energy at ELEMENTS has the ability to draw the most sophisticated shoppers in Hong Kong to the mall.''

Also presiding over the grand opening ceremony was Andrew Coxon, the president of De Beers Institute of Diamonds, who said, ''Fire is the scintillation or spread of color that we see, Life is the sparkle and, brilliance is the natural transparency of the diamond. We know that the highly discerning clients in Hong Kong will no doubt appreciate the superior fire, life and brilliance that our specially selected diamonds exhibit.''

-Rapaport

Tiffany Appoints New VP of Asia-Pacific Region


Tiffany & Co. appointed Stephane Lafay to the newly created position of group vice president of the Asia-Pacific region and president of Tiffany Japan.

Lafay joined Tiffany in 2009 as president of Tiffany’s Japan organization. The company is searching for a candidate for the managing director of Japan position who will report to Lafay.

The company will continue to report its results separately for those two regions.

-JCK Online

Wednesday, December 14, 2011

Price points, enhanced design drive silver sales

The price of silver has fluctuated since the summer, rising again in October and reaching an approximate $31 an ounce as of Dec. 13. With the price of gold still high ($1,630 an ounce as of Dec. 13) and more designers taking silver styles in new directions, many independent jewelers are noticing an increased interest in silver from their customers.

Here, jewelers share how silver sales are faring at their stores, what they’re carrying for inventory and how they’re advertising the metal to consumers.

Silver sales are going well for Aaron Penaloza, who co-owns C. Aaron Penaloza Jeweler in San Antonio, Texas, with his wife Mary.

“We’ve always done fairly well with silver, but we’re carrying more of it now, because it’s filling better than it was two years ago,” he said. “You can get a bolder look in silver that is just not affordable in gold anymore.”

Penaloza carries silver jewelry from brands such as Thistle & Bee, Alwand Vahan, Lorenzo, and Angelique de Paris, as well as silver estate jewelry, which the jeweler said is selling well. Most silver buyers have been self-purchasers, Penaloza said, but he has seen customers shopping the metal for Christmas.

“The price points are not as high as diamonds or gold, so silver has always been a good alternative to them,” Penaloza said. “Now with silver and gold combinations, the price points are getting up there, and people are interested.”

Silver’s price point is driving customer interest at Sarah Leonard Fine Jewelers in Los Angeles, according to Gail Friedman, graduate gemologist and co-owner of the store, said.

“Silver is very fashion-forward and it’s a great price point, and people notice that,” Friedman said. “As much as yellow gold is selling, [customers] are still into white metals. It’s attractive to them.”

The store carries a variety of different lines in silver, and “they’re moving,” Friedman said. Sterling silver jewelry with colored gemstones has been particularly successful for the jeweler, especially Tacori’s 18K925 line.

“That’s a big part in our store, we sell quite a bit of that,” Friedman said of the brand’s line. “The plain silver doesn’t sell as fast as the silver with stones--most people want some stones in it.”

Highlighting silver’s relatively lower cost to customers has been a successful marketing tool for one jeweler.

“Our silver sales are up dramatically,” J. Dennis Petimezas, president of Watchmaker’s Diamonds & Jewelry in Johnstown, Pa., said, “and I’m promoting silver dramatically.”

Petimezas’ promotion highlights price points, not discounts, which he said is easy to do because of the relative cost of silver as opposed to gold.

“We’re a destination store, so one someone arrives here, they do other shopping as well,” the jeweler said, “they come in because of the perception of value, and it leads to other sales.”

Petimezas has also incorporated “value added” promotions into his business, offering premiums for purchases at certain dollar points. For example, if a customer came in and spent $100 on jewelry, they would receive a $10 iTunes card. The gifts got as luxurious as an iPad2.

“It worked out great,” Petimezas said. “Discounting is out. Value adding is in.”

When it comes to stocking silver inventory, Petimezas doesn’t stick to specific brands but rather looks to see whose manufacturing style he thinks is important.

“The days of buying from salesmen who stop by, those days are gone,” he said, “we look to see who has a large supply of many styles of silver, and now we’re selling pearls and silver, and colored stones and silver, and it’s making an impact.”

Petimezas said that virtually anything he has in gold, he can offer in sterling silver.

“We’ve doing silver hoops with black diamonds and champagne diamonds, and it hits those very important price points,” he said.

Petimezas said that successful jewelers must remain at the forefront of marketing and advertising to stay on top.

“It’s possible the jewelry pie will get smaller before it gets bigger, and if it gets smaller, you have to be sure your slice gets bigger,” he said.

-National Jeweler

OGI Launches SymCut for Round Brilliants

OGI Systems Ltd., the leading global company for technological solutions for the diamonds industry, launched SymCut – a new Round Brilliants Symmetry and Recut software. This is an innovative solution for the measurement and repairment of Round Brilliant diamonds in a friendly and simple way like only OGI Systems can develop.

The SymCut software automatically identifies the asymmetrical features in a diamond and recommends possible changes to the polishing plan in minimum weight loss. This constitutes a breakthrough in the technology of analyzing and grading Round Brilliant diamonds.

The SymCut software operates on compatible equipment of OGI Scanox HD Series, which was launched in 2010 and is since being used in several labs around the world. This combination allows the capability of measurement and estimation of diamonds in high resolution. It also enables performing symmetry grading of Round Brilliant diamonds in a level which was never seen before in the global diamonds' market.

The SymCut software was designed in a way that enables quick and easy adjustment to the requirements of different labs around the world. The software can examine symmetry based on instructions as set by the different labs by simple data entry.

The SymCut software can identify asymmetry spots in all stages of diamond polishing. This enables the polisher to perform a precise repairment of the gem, so as to achieve the best possible symmetry and proportion grades along with the highest yield. By improving the symmetry one can achieve better FireTrace light trace performance.

For example, two parallel edges – one tilted with angle of 35 and the other 36 – would be identified by the system, which would then present a 3D simulation to the polisher showing which facet should be repaired. It can also demonstrate to the polisher how the stone would be finished if he repairs this asymmetry in the diamond.

According to Daniel Banjeno, the chief executive of OGI Systems, this innovative software constitutes the first stage in a global breakthrough for the testing of symmetry in Round Brilliant gems. In addition, OGI Systems is currently developing a tool for symmetry testing of popular fancy gems.

-Rapaport

Liz Taylor’s Jewelry Breaks Records at Christie’s

The Elizabeth Taylor collection of jewels surpassed expectations fetching record prices at Christie’s New York. The auction house reported that the first of the four day sale garnered $115.9 million, making it the most valuable jewelry auction in history. All of the 80 lots placed on offer were sold.

''For many, there was both the desire to share in the stories behind Elizabeth Taylor’s iconic jewels and to dream of perhaps acquiring one. For others, the sale provided the opportunity to purchase unique jewels, which brought Elizabeth Taylor such joy and reflect her remarkable taste and connoisseurship,'' said François Curiel, the international jewelry director and president of Christie’s Asia.

The top lot sold yesterday was ''La Peregrina'' (pictured), a natural pearl, diamond, ruby and cultured pearl necklace by Cartier which fetched $11.8 million, well above the high presale estimate of $3 million, and setting a record for a pearl jewel sold at auction.

The famous ''Elizabeth Taylor Diamond,'' a rectangular-shaped, 33.19-carat, D, and potentially flawless diamond sold for $8.8 million, or $265,697 per carat, to a private Asian buyer. The diamond was given to Taylor in 1968 by her husband at that time, Richard Burton, and had a presale estimate of $2.5 million to $3.5 million, and set a new auction record for a colorless diamond per carat.

The third top lot was ''The Taj Mahal Diamond,'' which was a gift from Burton on Taylor's 40th birthday. The piece is an imperial Mughal Spinal necklace weighing 1,131.59 carats set with an inscribed heart-shaped table-cut diamond sold for $8.8 million, against a presale estimate of $500,000.

Other big sellers included an 18.26-carat, emerald and diamond pendant brooch by Bulgari, which sold for $6.6 million, or $360,268 per carat, while an emerald and diamond necklace by Bulgari fetched $6.1 million.

In total, seven new auction records were set, including the price per carat for a colorless diamond and for a ruby; a pair of natural pearl ear pendants; a pearl jewel; an Indian jewel and an emerald jewel, Christie’s reported.

Marc Porter, the chairman of Christie’s America’s, noted that the auction drew in bids from all over the world. In the run up to the event, Christie’s took the collection to Hong Kong, Moscow, London, Tokyo, Los Angeles, Dubai, Geneva and Paris. ''Thousands of collectors and admirers braved long lines to get a glimpse of one of the greatest collections of all time,'' he said.

The second and third sessions of the jewelry collection will take place December 14, along with Taylor’s iconic haute couture collection. Her fashion and accessories collection is scheduled to go under the hammer on Thursday while her fine and decorative art and film memorabilia is scheduled to be auctioned on Friday. Taylor’s impressionist and modern art collection is scheduled to be auctioned in February by Christie’s London.

Taylor was 79 when she died on March 23, 2011.

-Rapaport

Tuesday, December 13, 2011

What types of settings exist in the jewelry world?



There are seven basic types of settings: bead setting; pronged setting; cup setting; bezel setting; channel setting; tension setting; and invisible setting. There are also many settings that are a combination of at least two basic settings. They're called "combination settings."

Why is it so important to select diamonds with an optimal girdle for the bezel setting?

Bezel setting demands extreme precision when the diamond's setting is dug. Therefore this step shouldn't be impeded by diamond girdles that are less than optimal.

What is the safest setting for a diamond?

Traditionally the bezel setting is considered the most secure setting for a diamond over the years. Its surrounding sides and the strength needed to bend them around the edges of the diamond guarantee that the diamond will be anchored in the jewelry in a way that no other setting can. However, it should be stressed that any setting is secure as long as it is done correctly:

1) The base fits the stone

2) The stone's base is made of a gold alloy that matches the stone's level of brittleness

3) The setting was done by someone experienced

What are the signs of a high-quality pave setting?

Princess diamonds Pave setting is usually done with small diamonds. The diamonds are closely set into gold and create a uniform surface. The signs of high-quality pave setting are:

1) Uniform diamond color

2) Maximum density of the diamonds with minimum visibility of the gold

3) Uniform height of the diamonds

4) Uniform size of the projections that hold the diamonds

How much does it cost to set a diamond?

The cost of setting diamonds includes many factors and therefore varies between pieces of jewelry. In principle, sample prices for settings involve a number of factors:

1) The number of diamonds to be set

2) The complexity of the setting

3) The level of fit between the base and the diamond

4) The seniority and expertise of the setter

Note: Because gemstones are usually more fragile than diamonds, they require slower and more delicate work and so most setters demand higher pay for setting them.

What is the optimal setting for fancy cut diamonds that do not have a standard polish because of the rough constrictions?

The best setting for these diamonds is the bezel, which creates an optical illusion around the diamond that disguises the lack of harmony of the diamond's polish.

Very nice results are gotten by using material thicker than 1.0 millimeter for the sides. The thick sides, the shiny engraving and the skill of the setter give an inner and outer polish that together create an appearance that draws the eyes away from mistakes and focuses them on the polish.

What is pave setting?

Pave setting uses at least seven stones set flush in a beehive shape (not a row.) This type of setting usually gives small or very small diamonds the most impressive effect. Its undeniable success in expensive or relatively inexpensive jewelry comes from the effect it creates in the eyes of the viewer. Pave setting allows the setter to "squish" together a not very large number of diamonds and fill a space that in any other case would require a single diamond to fill it. Another reason for the popularity of pave settings is that they can fill spaces that are not geometric.

What is invisible setting?

Invisible setting was first created in Paris in the 1930s. In this brilliant method, the polishers make parallel cuts in the stones while the jeweler makes tracks of gold wire in the jewelry itself. During setting, the aforementioned cuts are caught by the tracks, creating the effect of stones “standing alone” without any separation. This is considered highly regarded specialty among jewelers.

What kinds of diamonds are appropriate for the bead setting?

Anbinder Enlarge Diamond jewelry store The best diamonds for bead setting are round cut diamonds with a diameter of 2.5 millimeters or less. This is actually the only kind of setting that can take diamonds of 0.25 carats without burying them entirely.

What is a chaton?

A chaton is the physical base for holding stones in a prong setting. Its appearance, which is like a royal crown built from “arms,” gave it its name. Because of the range of methods for making them, and because of the chaton’s ability to hold any stone in any cut there is a wide variety of styles. The chaton is the best solution for fragile stones and stones with fractures.

Why are many chatons made in a conical shape?

Because this allows the owner, and the jeweler, to set a variety of diamond sizes in the chaton by moving the prongs inward or outward. It’s also possible to shorten the length of the arms as needed.

What details are important when choosing diamonds in a channel setting?

Channel setting is a setting in which a row of diamonds are held between two strips of gold. The inner part of the ring, which is not seen, contains holes for the culets. The things that should be noted when choosing a diamond in a channel setting are:

1) Uniform diamond size

2) Uniform color of the chosen diamonds

3) Uniform girdle size of the diamonds

4) Uniform crown height of the diamonds

-Maziar Yeshurun

Lucara's Rough Tender Sells $6M


Lucara Diamond sold $6.4 million worth of rough diamonds at its second tender of goods from the Mothae mine in Lesotho. The company reported that all 28 lots offered received multiple bids with 7,190 carats garnering an average price of $893 per carat.

''The results of this sale re-confirm the presence of a population of large, top quality diamonds within the Mothae kimberlite and demonstrate that these stones can be recovered with a regularity which greatly enhances the economic potential of the project,'' said William Lamb, Lucara’s chief executive. ''We are particularly pleased with the enthusiastic market response to Mothae production, suggesting that we can always expect strong demand for our type of diamonds regardless of market conditions.''

The top lot was a 28.89-carat, type IIa diamond, which sold for $1.6 million, or $57,113 per carat. A 56.51-carat type IIa diamond sold for $2.1 million, or $37,019 per carat, and a 19.20-carat type IIa stone fetched $490,000, or $25,520 per carat.

-Rapaport

GIA Plans to Open a Lab in Japan

The Gemological Institute of America (GIA) plans to establish a laboratory in Japan in 2012, a decision that was reached following lengthy consultations with various Japanese stakeholders. In addition, a GIA facility in Israel is scheduled to open in 2012. Both initiatives will benefit the Institute’s ongoing efforts to expand lab capacity.

''We are excited to develop a presence in Japan,'' said Donna Baker, the president of GIA. ''Japan, along with India and China, are the world’s leading diamond markets, behind the U.S.

''GIA’s mission is to promote the public trust in gems and jewelry and, as such, we will do everything within our means to carry forth this mission in Japan and to assist the Japanese diamond community in furthering these goals,'' Baker said.

-Rapaport

Monday, December 12, 2011

New Kate Moss Collection for Fred Jewelry Includes Diamonds


Model Kate Moss has collaborated with Fred Jewelry on a new collection inspired by her own tattoos.

The pieces are crafted from white or rose gold and feature pave-set diamonds, and include earrings, rings, long necklaces, and short pendants. Diamonds aren’t the only stone used in the collection, which also features rubies and quartz.
Prices for the jewelry line range from $473 to $47,300.
Moss is also serving as the face of Fred Jewelry’s Fall-Winter ad campaign.

-Israeli Diamond Industry

U.S. sales up, profits shrink for Harry Winston

Third-quarter sales in the United States increased 44 percent for Harry Winston Diamond Corp., though fourth-quarter marketing costs and expenses involved in expanding in emerging markets put downward pressure on profits.

Total worldwide sales for the third quarter ended Oct. 31 were $119.7 million, down 15 percent from $140.9 million in the third quarter of last year.

Sales in the company’s watch and jewelry retail segment were up 4 percent year-over-year, from $80.2 million to $83.5 million. This included the 44 percent jump in the U.S. market to $32.5 million, a 14 percent increase in Asia and a 31 percent slide in sales in Europe, where several significant sales in the third quarter of last year were not repeated this year.

“The luxury jewelry and timepiece market experienced moderate growth during the third quarter as demand from emerging markets remained strong, offsetting the effects of economic uncertainty in Europe and the U.S.,” the company said. “With the trend of rapidly rising wealth and increased mobility of Asian clients, these customers represent a growing share of clientele in all sales regions.”

Mining segment sales fell 40 percent, from $60.7 million to $36.2 million. The achieved per-carat price for rough diamonds increased from $95 to $159, primarily the result the company holding back lower-quality goods because of competition from recently released stocks of similar-quality goods in Zimbabwe.

The company reported an operating loss of $2.0 million, as compared to an operating profit of $14.8 million in the third quarter of last year. Losses were heavier on the luxury brand segment side of the business, with Harry Winston noting that it was the result of “seasonal increased marketing expenditure leading into the holiday season and expenses related to the anticipated opening of new salons in China in early 2012.”

Based in Toronto, Harry Winston has stores worldwide, including in New York, Paris, London, Beijing, China, Tokyo, Hong Kong and Beverly Hills, Calif., and supplies rough diamonds to the global market via its 40 percent ownership in Canada’s Diavik Diamond Mine.

-National Jeweler

U.S. Adds Mbada Diamonds, Marange Resources to Sanctions List

The United States has added Mbada Diamonds and Marange Resources to its list of sanctioned entities, the Department of the Treasury stated.

The Treasury’s Office of Foreign Assets Control (OFAC) updated its ‘specially designated nationals list to include the two companies, which operate diamond mines in Zimbabwe’s Marange fields. The listing extends to any aliases they might operate under, including Block Wood Mining and Condurango Investments.

Sanctioning these companies follows the recent decision by the Kimberley Process to allow diamond exports from the Marange Resources and Mbada Diamonds respective mines despite reports of human rights abuses associated with the operations.

Marange Resources and Mbada Diamonds both operate their Marange mines in a joint venture with the Zimbabwe Mining Development Corporation (ZMDC), a state owned company which was already on the OFAC list.

U.S. citizens are prohibited from dealing with individuals or companies on the expansive list. As part of its enforcement efforts, OFAC publishes a list of individuals and companies owned or controlled by, or acting for or on behalf of, targeted countries and lists individuals, groups, and entities, such as terrorists and narcotics traffickers designated under programs that are not country-specific.

Following the Kimberley Process decision on Marange in November, Rapaport Group warned members of its RapNet trading network not to deal in these Marange diamonds.

-Rapaport

Friday, December 9, 2011

Gold as a strategic asset for European investors

During a period of extraordinarily serious economic uncertainty in the eurozone, continued concerns about economic growth in the US heading into an election year, and the possibility of an economic slowdown in China, we wanted to examine the relevance of gold as a strategic asset for euro-based investors to protect their portfolios and to mitigate the systemic risks being faced.

A new study from New Frontier Advisors (NFA) entitled, ‘Gold as a strategic asset for European investors’, was commissioned by the World Gold Council to address these concerns. The NFA’s respected optimiser is used to analyse the statistical significance of gold for adding diversification value to an investment portfolio from the currency base and perspective of a € based investor. It takes a conservative strategic return expectation that the long-term real return of gold is equal to zero.The findings suggests that an optimal strategic allocation to gold for euro-based investors ranges from 2-3% for the most diversified and lowest risk portfolios, to between 4-9% for portfolios split 50/50 between equities and bonds and as high as 10%, for portfolios with the majority of assets in equities.

The NFA study makes a valuable contribution towards the World Gold Council’s own body of investment research, adding further third-party evidence to the case for gold as a foundation asset which provides insurance against extreme events. We believe that the relevance of gold as a strategic asset is likely to continue to grow in a world characterised by sluggish economic performance, poor investment returns, currency wars and high individual and systemic risk. Gold has unique properties which can protect European investor’s portfolios against the systemic risks being faced.

-Diamondne.ws

World's first synthetic diamond store

A shop that bills itself as the “world’s first synthetic diamond jewelry store” has opened its doors here. Retailer D.NEA, which conducts most of its business online, said it opened the boutique to allow customers to learn about and view synthetic diamonds in person.

"Customers can now see the full variety and availability of lab-created diamonds with their own eyes. Plus, it is a great place to learn about lab-grown diamonds if you are not familiar with them," said D.NEA's CEO, Eric Franklin.

D.NEA is the retail brand of AOTC, which says it is the largest producer of jewelry-quality lab-created diamonds by carat weight, quantity, and color availability.

AOTC grows white diamonds up to 1 carat, fancy blue diamonds up to 1.5 carats and fancy yellow diamonds up to 2 carats in size.

-INDEX Online