RapNet


Rapaport News

 

Mining

 

Advanced search
Latest Articles
Videos
Features
News
Mining
Rough Markets
Polished Markets
Manufacturing
Retail

Rapaport TradeWire July 9, 2010

Trading activity slows, demand for rough eases and polished prices soften slightly as U.S. summer vacations begin.
Jul 8, 2010 6:00 PM   By Rapaport
Print Print Facebook Facebook Twitter Twitter Share Share
  Rapaport TradeWire  
Rapaport TradeWire
RAPAPORT NEWS SERVICE | JULY 9, 2010   www.rapaport.com | news@rapaport.com
 
 
Retail & Wholesale General Stats EconWatch India Jobs

 
RapUp July 9, 2010

Trading activity slows, demand for rough eases and polished prices soften slightly as U.S. summer vacations begin. De Beers Diamdel unit sells 95% of 157 lots auctioned online in 2Q and says competition through 1H remained most intense for rough in 2 ct-plus sizes. SpendingPulse reports 10% rise in June jewelry spending despite 3% decline in luxury sales. Gitanjali plans 500 new stores in Asia Pacific and remains cautious about U.S. Safdico to open distribution office in Israel. Israel’s June polished exports +149% to $458m, rough imports +42% to $389m. Diamond Council of S. Africa CEO Braen Migogo resigns.

RapNet Data: July 9, 2010
 
Diamonds 711,955
Value $4,519,743,249
Carats 795,017
Average Discount -31.21%
RapNet Asking Price

Get Current Price List | Subscribe to Rapaport | Join RapNet

 
ANNOUNCEMENTS
July
25-28
Sun-Wed
Rapaport at JA New York Summer Show

Javits Convention Center
Booth 2300
New York, NY USA

Rapaport Contact: Sherri Hendricks
+1-702-893-9400 or email sherri.hendricks@diamonds.net.

  QUOTE OF THE WEEK:
  As the past year has demonstrated, we will not be assembling in St. Petersburg simply to pay lip service to the values upon which the [World Diamond Council] was founded. The ongoing situation in countries like Zimbabwe and the dedication of our industry to operate in a transparent and principled manner means that there are burning issues on the table, which we will discuss and for which we will formulate strategies.

Eli Izhakoff | World Diamond Council president

Careers@Rapaport  
 
The Rapaport Group is growing rapidly. If you want to work with the best and brightest, join us. We have great opportunities for trading managers, gemologists, sales assistants, and entry level positions for our offices in New York, Antwerp, Mumbai, Dubai, and Shanghai. To get on the fast track, email your resume to careers@rapaport.com.


INDUSTRY  
 
Zimbabwe Update

The president of Zimbabwe, Robert Mugabe, urged businesses from China to invest in developing infrastructure in his country's various product sectors to help them develop more rapidly and turn Zimbabwe's fortunes around. Targeted sectors included diamonds, chrome, iron and copper, gold and emeralds. China's deputy minister of commerce, Jiang Zengwei, said that his country would continue to support Zimbabwe in developing its economy.

But the International Monetary Fund concluded that Zimbabwe's mining wealth would not save the country from its debt. Instead of throwing more investment into a black hole, Zimbabwe must instead focus on sound policies and debt relief if it ever wants to achieve growth sustainability, the report noted. The country has stockpiled nearly $2 billion in rough diamonds, while its national external debt is $4.6 billion or 104 percent of its gross domestic product (GDP). Debt relief would immediately boost Zimbabwe's net wealth by reducing its obligations and increasing the value of its mining wealth through a reduction in the country's risk.

At the present time, the Kimberley Process' (KP) ban on rough exports is in place for Zimbabwe, but its finance minister, Tendai Biti, said that such a ban punishes ordinary citizens. He added that Marange diamonds were not blood diamonds because Zimbabwe is not engaged in a conflict. Biti did concede that the country must address allegations of forced diamond-mining labor, human rights abuses and a Marange ownership claim leveled by African Consolidated Resources and clear up inconsistencies in its rough export records.

The country's Cabinet, meanwhile, clarified its stand on Marange exports following claims made to the press by mines minister Obert Mpofu, who signaled that rough diamond exports had been approved. But the Cabinet, in fact, had not approved Chiadzwa diamond sales or exports and referred the issued to a Cabinet committee on Chiadzwa.

A Harare judge denied Centre for Research and Development (CRD) director Farai Maguwu bail once again. Maguwu, who was jailed more than one month ago,  is charged with allegedly giving what the state determined to be falsified documents to KP monitor Abbey Chikane. Police investigator Henry Dowa claimed that Chikane was a key witness in the case, but remains "very mobile" and is difficult to reach for comment. Dowa also claimed they needed time to access a laptop found at Maguwu's house.

Maguwu's attorney, Beatrice Mtetwa, told the court that Chikane's whereabouts have been well known and that Dowa had not, in fact, been investigating the case as he claimed. Mtetwa said that all relevant documents in question remained with the court, that no further evidence was required and therefore, her client must be released on bail.

Amnesty International joined a chorus of nongovernmental organizations (NGOs) and diamond industry groups calling for Maguwu's immediate and unconditional release.



 
Diamdel Observes Strong Demand

Diamdel's online auction channel activity was strong during the second quarter, according to De Beers. The company offered 157 lots spanning goods in the -3 grainer, 3 to 8 grainer and 2- to 15-carat size ranges, with 95 percent of these lots being sold. Broad-based participation was evident across all customer groups and more than two-thirds of the lots went to small- to medium-sized specialist manufacturers.


 
Rapaport Weekly Broadcast

WATCH NOW: Is your brand ready for mobile e-commerce? The National Retail Federation and Forrester Research say that should be your next strategy. Jewelry designer Ivanka Trump heavily promoted her line at London Jewelers in East Hampton, New York, using social media. The Birmingham Assay Office in the U.K. introduced The Eternal Borgezie Diamond Stiletto shoes that were handcrafted from solid gold, then lavishly encrusted with 2,200 brilliant-cut diamonds, totaling 30 carats.


 
U.S. Recession Lingers

Economic signs are pointing to a double-dip recession in the U.S. as indicators slip further. The country continues to reflect a high unemployment rate and chronic underemployment, which is negatively impacting spending and an already depressed housing market. The National Bureau of Economic Research (NBER), which officially declares the beginnings and ends of recessions, has not yet identified the end of what is being labeled the "Great Recession" that started in December 2007. Some economists have said the recession ended one year ago based only upon gross domestic product (GDP) figures. But NBER reviews the data that comprise the nation's GDP, plus personal incomes, employment and industrial activity.


RETAIL & WHOLESALE  
 
June Retail Sales Improve

The July 4th holiday weekend in the U.S. helped boost retail sales at the chain stores this past week, according to comparable store data released by the International Council of Shopping Centers (ICSC) and Goldman Sachs.  Chain-store sales rose 3.9 percent compared with one year ago, while they were up by 1 percent against the previous week. For the month of June, ICSC determined that chain-store sales rose 3 percent, with luxury stores gaining by 8.8 percent and department store sales improving by 5.9 percent.

MasterCard Advisors’ SpendingPulse report determined that during June, consumer spending continued a trend of slow to modest overall growth. But jewelry spending data suggested a 10.1 percent increase, even though luxury sales as a whole fell 3.9 percent. Both categories experienced strong declines one year ago.



 
Gitanjali Expands in India

Gitanjali Gems expects to grow its retail footprint across India, China and the Middle East by opening 500 new stores by March 2011. The retailer is keeping an eye on the struggling U.S. economy, but for now, its expansion plans remain closer to home in the robust Asia-Pacific region. Middle- and upper-class consumers in India continue to experience income gains and the demand for diamonds and gold continues to improve.


 
Safdico to Open Office in Israel

Safdico will open an office in the Israel Diamond Exchange (IDE) that will be used as a sales and distribution location for the purchase and sale of rough and polished diamonds. Safdico has offices and cutting facilities in Geneva, Johannesburg, Gaborone, Antwerp and New York.


 
Rio Tinto Reaches Out to Gem Investors

Rio Tinto published Rare and Collectable to coincide with the 26th Argyle pink diamonds tender. The publication provides insight for affluent investors as to the rarity of Argyle pink diamonds, which results in strong price appreciation. Poor economic fundamentals are currently providing a catalyst for investment demand, specifically for rare gems.


 
U.K. Warns of Glass-Filled Rubies

AnchorCert gemologists at the Birmingham Assay Office in the U.K. have observed a large number of glass-filled rubies being submitted in recent weeks. Many of the rubies in question were bought in the good faith that they were both natural and untreated.
 
Senior gemologist Anu Manchanda said, "This type of treatment has been around for a few years now, but we seem to have suddenly seen an unusually high number." A trained jeweler can easily detect these treatments using tenfold magnification that will reveal bubbles, blue flashes of light and evident fractures running up to the surface under the reflected light.


GENERAL  
 
Passion, Confidence, Values Land Today's Jobs

WATCH NOW: Gemological Institute of America (GIA) president Donna Baker describes the key issues potential job seekers should consider in building their career. GIA's career fair founder, Kathryn Kimmel (pictured), provides insight for job seekers using GIA's resources. Attendees Daniel Canivet and Elizabeth Nomberg shared how the event and speakers impressed them during the early stage of their own careers.


 
Sesay Backs Taylor at The Hague

Issa Sesay served as a surprise witness for the defense in the war crimes case being conducted against Charles Taylor at The Hague. Sesay is already serving 52 years in prison for involvement in the blood diamond war, but said that he had no knowledge of other rebel leaders from Sierra Leone giving Taylor diamonds in exchange for arms. Taylor has consistently denied possessing any diamonds and has pled not guilty to the 11 counts of war crimes leveled against him. Prosecutors have summoned model Naomi Campbell to the stand to testify on whether Taylor gave her a rough diamond in 1997.


 
Migogo to Leave Diamond Council

Braen Migogo will be leaving as head of the Diamond Council of South Africa (DCSA). Migogo served for more than two years and helped further the industry’s global competitiveness, sustainability and transformation. The council was re-established through the amalgamation of the Master Diamond Cutters Association and the Rough Diamond Dealers Association. A replacement for Migogo has not yet been announced.


STATS  
 
Israel June Exports

  June $Mil. Chng. YTD $Mil. Chng.
Polished Exports $458 149% $3,008 88%
Polished Imports $389 56%  $1,880 104%
Net Exports $69   $1,128 118%
         
Rough Imports $356 42%  $1,820 113%
Rough Exports $315 48% $1,620 98%
Net Imports $41   $200 223%
         
Net Diam Acct. $27 $1,328 130%


ECONWATCH  
 
For the week ending July 8, 2010:

  July 8 July 1 Chng.  
$1 = Euro 0.789 0.811 -0.022  
$1 = Rupee 46.88 46.63 0.3  
$1 = Israel Shekel 3.87 3.89 -0.02  
$1 = Rand 7.58 7.75 -0.17  
$1 = Canadian Dollar 1.04 1.06 -0.02  
         
Precious Metals        
Gold $1,198.80 $1,197.30 $1.50  
Platinum $1,519.00 $1,502.00 $17.00  
         
Stock Indexes       Chng.
BSE 17,651.73 17,509.33 142.40 0.8%
Dow Jones 10,138.92 9,732.53 406.39 4.2%
FTSE 5,105.45 4,805.75 299.70 6.2%
Hang Seng 20,050.56 20,128.99 -78.43 -0.4%
S&P 500 1,070.25 1,027.37 42.88 4.2%
Yahoo! Jewelry 784.72 766.69 18.03 2.4%
         
USA        
Birks & Mayors $1.40 $1.10 $0.30 27.3%
Blue Nile $48.67 $46.27 $2.40 5.2%
Charles & Colvard $2.64 $2.64 $0.00 0.0%
DGSE Companies $3.20 $3.20 $0.00 0.0%
Fuqi Intl. $6.52 $6.20 $0.32 5.2%
JCPenney $23.23 $21.43 $1.80 8.4%
Kohl's $47.89 $48.72 -$0.83 -1.7%
LJ Intl. $2.62 $2.57 $0.05 1.9%
Macy's $18.40 $18.30 $0.10 0.5%
Man Sang $1.90 $1.85 $0.05 2.7%
Movado Group $10.32 $10.81 -$0.49 -4.5%
Nordstrom $33.63 $32.78 $0.85 2.6%
Saks $7.74 $7.53 $0.21 2.8%
Signet $28.45 $27.59 $0.86 3.1%
Sotheby's $24.25 $22.75 $1.50 6.6%
Tiffany $38.88 $38.12 $0.76 2.0%
Walmart $49.13 $48.35 $0.78 1.6%
Zale $1.50 $1.55 -$0.05 -3.2%
         
EUROPE        
Bulgari €6.12 €5.82 €0.30 5.2%
Bijou Brigitte €120.10 €119.55 €0.55 0.5%
Damiani €0.83 €0.86 -€0.03 -3.5%
LVMH €89.07 €85.20 €3.87 4.5%
PPR €100.80 €98.10 €2.70 2.8%
Richemont CHF 38.58 CHF 35.65 CHF 2.93 8.2%
Swatch Group CHF 304.10 CHF 294.20 CHF 9.90 3.4%
Theo Fennell (pence) 41.73 38.22 3.51 9.2%
         
INDIA (rupee)        
Classic Diamond 20.95 20.80 0.15 0.7%
Gitanjali Gems 139.55 125.30 14.25 11.4%
Goldiam Intl. 46.65 44.50 2.15 4.8%
Rajesh Exports 82.85 82.15 0.70 0.9%
Ren. Jewellery 77.65 74.75 2.90 3.9%
Su-Raj Diamonds 54.25 50.95 3.30 6.5%
Titan 2,481.60 2,348.90 132.70 5.6%
Zodiac JRD 28.00 26.70 1.30 4.9%
Suashish Diamonds 171.75 175.00 -3.25 -1.9%
         
NEW ZEALAND        
Michael Hill NZD 0.68 NZD 0.68 NZD 0.00 0.0%
         
MINING STOCKS        
CANADA        
Harry Winston CAD 14.39 CAD 13.09 CAD 1.30 9.9%
Lucara Diamond CAD 0.67 CAD 0.82 -CAD 0.15 -18.3%
Mountain Province CAD 2.73 CAD 2.73 CAD 0.00 0.0%
Peregrine Diamonds CAD 1.70 CAD 1.92 -CAD 0.22 -11.5%
Rockwell Diamonds CAD 0.07 CAD 0.07 CAD 0.00 0.0%
Shore Gold CAD 0.68 CAD 0.68 CAD 0.00 0.0%
Stornoway Diamond CAD 0.60 CAD 0.58 CAD 0.02 3.4%
True North Gems CAD 0.09 CAD 0.09 CAD 0.00 0.0%
UK (pence)        
African Diamonds 28.50 29.05 -0.6 -1.9%
Anglo American 2,412.00 2,271.50 140.5 6.2%
BHP Billiton 1,819.00 1,694.00 125.0 7.4%
Firestone Diamonds 33.00 32.50 0.5 1.5%
Gem Diamonds 220.00 197.80 22.2 11.2%
Gemfields 4.75 4.75 0.0 0.0%
Mwana Africa 7.99 7.28 0.7 9.8%
Namakwa Diamonds 41.00 41.00 0.0 0.0%
Petra Diamonds 64.00 67.50 -3.5 -5.2%
Rio Tinto plc 3,073.50 2,904.50 169.0 5.8%
Stellar Diamonds 11.50 11.50 0.0 0.0%


INDIA MARKET REPORT  
 
Polished and rough trading activity

POLISHED: Local markets are slow with activity reported for lower quality goods. Signs point to sellers softening on prices.
Round
-1 point: Very good demand: -$300 whites.
Good demand: $300 - $500 whites.
-2 point: Good demand: -$300 whites.
Fair demand: +$350 whites.
2-7 point: Very good demand: -$350 whites.
Good demand: +$350 whites.
8-18 point: Good demand: -$400 whites.
Fair demand: +$500 whites
20 points: Good demand: -$350 whites.
Fair demand: +$600 whites.
25 points: Good demand: -$350 whites.
Fair demand: +$700 whites.
33 points: Good demand: $300 - $500 whites.
Fair demand: +850 whites.
50 points: Good demand: $500-$700 & +$1000 whites.
75 points: Good demand: $700-$900 & +$2000whites.
1 carat+: Very good demand: -$2000 whites.
Good demand: +$2000 whites.
Princess
-3 point: Good demand: $200-$250 whites.
+3 point: Good demand: $250-$300 whites.
+9-18 point: Good demand: $250-$350 whites.
20 point: Fair demand: $700-$750 whites.
25 point: Fair demand: $800-$850 whites.
50 point: Fair demand: $400-$700 & $1600-$1,800 whites.
75 point: Fair demand: $800-$1,200 whites.
1 carat+: Good demand: $1000-$2000 whites.
Fair demand: +$2,500 whites
Marquise
-6 point: Fair demand: $250-$350 whites.
+7-18 point: Good demand: $250-$400 whites.
20 point: Fair demand: $250-$400 & $900-$1,000 whites.
25 point: Fair demand: $250-$400 & $1,100-$1,200 whites.
33 point: Fair demand: $250-$400 & $1,300-$1,500 whites.
50 point: Fair demand: $1,600-$1,800 whites.
75 point: Fair demand: $2,600-$2,800 whites.
1 carat+: Good demand: $300-$600 & +$1,000 whites.
Tapers & Baguettes
Fair demand: $600-$800 +5mm whites. $250-$325
2mm-2.5mm whites; $350-$400, 2.5mm-3mm whites;
             $400-$450 3mm-4mm, $500-$600 4mm –
             5mm & $175-$250 +2mm-3mm whites.
ROUGH: Activity is slow, but there is some demand for mixed lots. The fluctuation of greenback against the rupee is adding to weaker trading.
1-5 point: Good demand: $90-$130 makeables; $100-$200 crystals.
$50-$80 makeables.
Fair demand: $10-$25 & $50-$100 OW TTLB & TTLC.
6-20 point: Very good demand: $155-225 crystals; $110-$185 makeables.
Good demand: $65-$115 fancy shapes; $45-$75clivage.
Fair demand: $50-$90 OW TTLC & TTLB rounds.
21-50 point: Very good demand: $200-275 makeables;
$120-$200 & $225-$300 crystals.
Good demand: $90-$200 fancy shapes;
$95-$200 rounds; $50- $90 clivage.
Fair demand $20-$40 OW TTLC & TTLB.
0.51-1.00 carat: Very good demand: $180-$340 makeables;
$125-$260 & $290-$470 crystals.
Good demand: $90-$125 makeables;
$100-$210 fancy shapes; $55-$110 clivage.
Fair demand $60-$100 OW TTLC & TTLB.
1.01-2.00 carat: Very good demand: $240-$590 rounds; $290-$750 crystals.
Good demand: $100-$130 clivage; $200-$380 all fancy shapes.
Fair demand: $140-$180 OW TTLC & TTLB.
2.01-3.00 carat: Good demand: $270-$1,050 makeables; $350-$1,300 crystals;
$400-$825 fancy shapes; $210-$300 clivage.
Fair demand: $100-$325 flats & TTLC & TTLB
$350-$800 OW.
5.00 carat+:  Good demand: $1,000+ makeables, crystals & all fancy shapes till L color.
Mixed Lot: Good demand: $2-$40.





Advertisements





MGeller Diamonds


Advertisements




















Art of Jewellery

Advertisements
 
Print Print Facebook Facebook Twitter Twitter Share Share
Tags: Abbey Chikane, African Diamonds, Anglo American, Argyle, BHP Billiton, Blood Diamonds, Bulgari, Charles Taylor, China, Consumers, De Beers, Diamdel, Dubai, Economy, Firestone, Gem Diamonds, GIA, Harry Winston, ICSC, India, International Monetary Fund, Israel, Israel Diamond Exchange, Jewelry, Kimberley Process, Lucara Diamond, LVMH, Michael Hill, Movado, Petra Diamonds, Richemont, Rio Tinto, Rockwell, Safdico, Signet, Sotheby's, South Africa, Stellar Diamonds, Theo Fennell, Tiffany, Titan, World Diamond Council, Zale, Zimbabwe
Similar Articles
Comments: (0)  Add comment Add Comment
Arrange Comments Last to First



Call Us: 1-702-893-9400
Member License Agreement   RapNet Trading Rules & Code of Conduct    Privacy Policy  
  
twitter twitter
About Rapaport
Advertise with us