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Industry News: Diamond Prices Finally Edge Up; De Beers Shutters Mine, Lays Off 434 Workers; More December 09, 2015 (0 comments)
Diamond Prices Rise Slightly: Is This The End Of The Free-Fall?
New York, NY—For the first time in six months, prices for one-carat GIA-graded diamonds rose slightly instead of dropping. According to the RapNet Diamond Index (RAPI), polished diamond prices firmed in November supported by shortages of select categories and seasonal holiday demand. While trading improved with dealers focused on filling U.S. holiday orders, manufacturing still is unprofitable at current rough price levels and the diamond distribution chain overall is overstocked.
The RAPI for 1-carat, GIA-graded diamonds rose 0.7% in November; RAPI for 0.30-carat diamonds advanced 3.3%, and RAPI for 0.50-carat diamonds grew 1.1%.
The only monthly decline was the RAPI for three-carat diamonds, which dropped 0.6%, but the index for one-carat stones remains down 7.1% since the beginning of 2015.
“The worst may be over for declining polished prices; however, polished shortages are reducing sales volume and trade profitability,” said Martin Rapaport, chairman of the Rapaport Group.
The report notes that U.S. buyers became more aggressive during November as there were fewer goods available to fill orders for the holiday season. Retailers offered heavy discounts for the Thanksgiving weekend, particularly online as consumers change their buying habits. Rapaport called on De Beers to lower rough prices by 30%-50% in order to inject liquidity and restore profitability to the diamond trade and he also called for De Beers CEO Philippe Mellier to resign in light of market conditions.
The full report is available for purchase here.
De Beers Halts Production At Snap Lake Mine
Northwest Territories, Canada—De Beers has placed its Snap Lake Mine (top of page) on care and maintenance, following a review of the mine’s operation in light of the current diamond market. De Beers will re-evaluate the mine’s future viability over the next year or so, according to a company statement.
The mine’s closure puts 434 employees out of work. Approximately 120 workers are needed to suspend operations; the care and maintenance phase requires approximately 70 workers. 41 employees have been transferred to De Beers’ Gahcho Kué project.
Snap Lake opened in 2008; it is Canada’s only fully underground diamond mine.
After Holidays, It’s Diamond Buyback Season
New York, NY— Following a multi-year statistical review of consumer buy-back transactions, White Pine Trading has found that activity spikes during the months of January and February. Over the last two years, activity increased an average of 44.5% from pre- to post-holiday: it jumped 33% from November/December 2013 to January/February 2014, and leapt 56% during the same period of 2014-2015. That’s an average annual increase of 44.5%.
The data was derived from White Pine's Retail Partnerships division, providing programs to facilitate in-store consumer buy-back of diamonds, jewelry, and watches in exchange for store credit or instant payment.
"Buy-back transactions are strongest immediately after the holidays, which makes including a buy-back program as a part of one's post-holiday sales strategy incredibly effective," said Sam Ziefer, director of White Pine's Retail Partnerships division.
"This surge in transactions can be partially attributed to gifting, with many luxury items being sold back to exchange or upgrade following the holiday season. In addition, studies have found an increase in divorce rates during the month of January; as a result, many people also look to sell back their items during this time."
White Pine offers a no-cost, turnkey partnership program that enables retailers to buy back diamonds, jewelry, and watches from customers year-round via a mail-in service and select in-store buying events. For 2016, White Pine is re-launching the program with a staff incentive, where sales associates are given a bonus for all items sold. Read more here or call Sam Ziefer at (954) 817-0321. Email: orsziefer@whitepinediamonds.com.
WJA DIVA Design Competition Names 2016 Award Winners
New York, NY—The Women’s Jewelry Association (WJA) announces the winners of its 2016 WJA Diva Design Competition. The competition is open to all women; formal training or presence in the jewelry industry is not required.
The first place winners of the Gem DIVA awards, a WJA-sponsored category of the well-known AGTA Spectrum Awards, will be honored at the AGTA Spectrum Awards Gala in Tucson on Feb. 6.
Gem Diva winners, along with the winners of the Dazzle Diva awards, will be honored on March 10, 2016, at WJA In The Spotlight, an evening event following WJA's In The Know conference. WJA awards each DIVA winner a prize package valued at $1,000.
Dazzle DIVA showcases jewelry design in drawing, rendering, or photography, with the 2016 theme of “Empowerment." This portion of the contest allows designers to enter the contest, whether or not they can afford to manufacture the jewelry.
“WJA congratulates all of our 2016 WJA Gem Diva and Dazzle Diva award winners,” says Brandee Dallow, incoming WJA president. "These awards celebrate the best in design by women, and we look forward to congratulating you at WJA In The Spotlight.”
First place winners in the Gem Diva awards were: Bridal Wear, Erica Courtney, Erica Courtney Jewelry; Classic Wear, Naomi Sarna, Naomi Sarna Designs; Evening Wear, Lisa Linhardt, Linhardt Design; and Business/Day Wear, Gurmit Kaur Campbell, Gurmit. Honorable mentions went to Hisano Shepherd, little h; Caroline Chartouni, Caroline C; Heena Chheda-Shah, Valani; Pamela Huizenga, Pamela Huizenga Jewelry; Erica Courtney; Claudia Kretchmer, Steven Kretchmer Design, Inc.; Elizabeth Garvin, Elizabeth Garvin Fine; and Jennifer Morin, Gregore Joailliers.
Claudia Kretchmer of Steven Kretchmer Design received an honorable mention for her platinum and 24k crystallized gold "RockStar2" pendant, featuring a 37.31-ct. color-shift blue zircon accented with diamonds.
First place Dazzle Diva winners were: Bridal Wear and Evening Wear, Laurence Bruyninckx, LX Collection; Business/Day Wear, Malak Atut, Zaiken Jewelry. Honorable Mentions went to Lisa Linhardt, Linhart Design; Halle (Richardson) Millien, Halle Richardson; Alison Nagasue, AKN Designs Ltd.; Jessica Neiwert, Jessica Neiwert; and Jocelyn Prestia, Un Hada Jewels.