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INDUSTRY NEWS: DIAMOND PRICE UPDATE, AJDC DESIGN WINNER, TRAFFIC STOP FOILS DIAMOND THIEVES, MORE April 10, 2013 (0 comments)

Rapaport Melee Diamond Index (RMI) Up 7% in Q1; Certified Polished Prices Stable in March

New York, NY—The Rapaport Melee Index (RMI) for small diamonds increased 7% to 135.00 in the first quarter of 2013. While there has been a noticeable recovery since Q3-Q4 2012, prices remain below last year’s figures, when the RMI for the quarter was 141.00. Q1 2013 showed consistent improvement in market confidence, but there is concern that polished prices are being fueled by rough speculation rather than actual demand.

Certified polished diamond prices held steady in March with 0.30-ct. stones outpacing other sizes, according to the RapNet Diamond Index (RAPI). Market sentiment improved throughout Q1 2013, driven by seasonal Far East demand during the Chinese New Year and steady U.S. bridal demand.

The RapNet Diamond Index for 1ct. certified polished diamonds increased by 0.1 ‎percent in March. RAPI for 0.3ct. diamonds rose 1.9 percent while ‎‎0.5 ct. stones declined by 0.1 percent. RAPI for 3ct. diamonds increased 0.2 percent. During the first quarter, RAPI for 1ct. diamonds rose 0.4 percent but remains 11.1 percent below levels reached one year ago on April 1. 

The March Hong Kong show exceeded expectations with both Chinese and Indian buyers active in the market, but demand is limited to a specific range of commercial-quality diamonds. There also is strong demand for excellent cut triple EX goods, which are in short supply and garnering premiums of up to 8% over VG-graded goods.

Rapaport’s own first quarter diamond auctions sold more than 130,000 carats for a total of $25.1 million. While the company reported an increase in business, it included a significant decline in second-hand recycled diamonds and a 35% decline in gold sales due to lower gold prices.

“While market demand has been relatively stable, the primary forces driving prices up are shortages in supply combined with higher rough prices demanded by mining companies. Polished dealers are cautiously optimistic as prices increase, but are concerned that demand may not support higher price levels in the long run,” says Ezi Rapaport, director of global trading for the firm.

 

Traffic Stop Foils Diamond Thieves

Kansas City, MO—Rule number one of being a criminal: when you leave the scene of a crime, obey the speed limit. Rule number one of selling a diamond: don’t do it in a Wal-Mart parking lot.

According to an article in the Kansas City Star, two men stopped for speeding were accused by another motorist who pulled up behind them and told the police officer they’d just stolen a 2.73-ct. diamond ring from him.

Apparently, the diamond had been offered for sale on Craigslist. The seller was supposed to deliver it to the buyers in a Wal-Mart parking lot and receive $3,500 for it. Instead, the buyers reportedly pulled a gun on him and fled with the diamond and his mobile phone.

He pursued, catching up with them when a police officer pulled them over for driving 72 mph in a 35 mph zone. According to the paper, a canine unit found a gun along the route, but neither the ring nor the phone.

 

AJDC Announces Annual Design Contest Winner 

Hermitage, PA—The American Jewelry Design Council announces Maressa Tosto Merwarth of Mari Tome Custom Jewelry Design in Dundee, NY, was selected as the First Place winner of its 2013 New Talent Contest.

The winner of the annual competition receives a free a booth in the New Designer Gallery at the summer Jewelers of America Show, July 28-30 at the Jacob Javits Convention Center in New York. The AJDC New Talent winner also receives both media attention and buyer recognition, and is presented with a one-of-a-kind trophy created by AJDC member Michael Good.

The three runners up for 2013 are David Alvarado of IRTHLY Jewelled Adornments in Los Angeles, CA; Bruce J. Hartman of Creek Reflections Jewelry in Carlisle, PA; and Todd Pownell of TAP Studios Inc. in Cleveland, OH. 

Designer Alan Revere, chair of the New Talent Contest, noted, "This year's winner has a very appealing architectural approach to making jewelry. The work follows the adage, "Form follows function'" in a refreshing contemporary manner."

All four designers will be recognized at the AJDC awards ceremony during the summer JA Show.

 

CIBJO To Address Synthetic Gem Nomenclature

Milan, Italy—Prior to the 2013 CIBJO Congress in Tel Aviv on May 7, the third of the CIBJO commissions' Special Reports has been released.

Prepared by the CIBJO Coloured Stone Commission, the report reviews updates to the Coloured Gemstone Blue Book and some being considered, particularly the nomenclature used to describe gemstone treatments.

The report notes the addition of "laboratory-grown" and "laboratory-created" as alternatives to the term "synthetic," but in the event a national jewelry association CIBJO member in a non-English speaking country deems that there is no acceptable local translation of the two terms, then only the translation of the term "synthetic" should be used.

The Coloured Stone Commission also will tackle the inadequacy of current nomenclature in describing lead-glass filled rubies. To download a full copy of the report, please click here.