JCK Show Points to Recovery

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

RapNet Data: June 18, 2010

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

- Rapaport News

Market Comments 6/17/2010

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

US IMPORTS $15M IN ROUGH DIAMOND IN APRIL

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

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

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

Ron Paul Perspective

U.S. Chain-Store Sales +3%

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

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

TIFFANY LAUNCHES ENGAGEMENT RINGS' IPHONE APP

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

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

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

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

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

Foreign Trade Zone Approved for IGT

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

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

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

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