Articles and News
INDUSTRY NEWS: DIAMOND PRICES STAY STABLE IN JULY, INTERNET TAX BILL IS BACK, MORE August 10, 2011 (0 comments)
New York, NY—According to RapNet’s Diamond Index, certified polished diamond prices were stable in July as the current seller’s market softened through the summer months. But prices still are high and buyers exhibited some price resistance, avoiding large inventory purchases. Rough prices rose an estimated average 10 percent in July, continuing the strong uptrend of the first half of the year. Mining companies, however, kept production even with 2010 levels (editor’s note: holding back production is not uncommon in a bull market.)
According to the just-released Rapaport Research Report “Quiet in Perspective,” the quieter diamond markets in July should not be seen as a general slowdown in the market. The July/August period traditionally is one of lower trading levels, but the outlook for the second half of 2011 remains strong. Growth will continue to be driven by retail expansion in China and India, and modest stability in the U.S. despite lingering economic concerns there. Additional information about the state of the global diamond market is available at http://www.diamonds.net/report or via email at specialreport@diamonds.net.
New York, NY—Following up on the recent survey of prestige-level jewelers by The Centurion Newsletter regarding Internet sales tax, a new bill requiring retailers to collect state sales tax for online purchases was introduced in Congress by senator Dick Durbin (D-IL), along with representatives John Conyers (D-MI), and Peter Welch (D-VT). According to this article in National Jeweler, the new bill bears the same “Main Street Fairness Act” name as last year’s failed bill. Co-sponsors are senators Tim Johnson (D-SD) and Jack Reed (D-RI) and House representative Heath Shuler (D-NC). Many retail organizations, including Jewelers of America, support the tax. Meanwhile, The Centurion's survey found that 87.3% of respondents lost some business as a result of competition from tax-free Internet sales, and almost 2/3 of respondents (65.5%) say those losses are well in excess of $10,000 per year. See the complete report here.
Stevens, PA—Pam Danziger, luxury market expert and president of Unity Marketing, will present a webinar September 15 reviewing the results of Unity Marketing’s latest luxury tracking study, and what it means for the fourth quarter luxury market. The webinar will be held Thursday, September 15, at noon EDT, and will last for approximately 45-60 minutes with opportunity for Q&A. Subscription is $249 and includes an unlimited number of attendees at viewer’s site. Subscribers also will receive a detailed copy of the slides used in the presentation, and the live presentation will be archived for 30 days to allow for subscribers who have schedule conflicts. Click here to register.
Neenah, WI—With gold recently surpassing $1,700 per ounce, Jewelers Mutual Insurance Company suggests jewelers check their inventory at least once per year—if not more—to ensure it’s properly valued. JMI policyholders are required to do so. JMI suggests jewelers re-check inventory values now to avoid becoming underinsured prior to a planned annual update, as gold inventory is likely worth significantly more today than even a few months ago. Policyholders can re-evaluate inventory and change limits at any time.
JMI also suggests that jewelers remind customers to bring in gold jewelry for an updated appraisal. JMI Personal Jewelry Insurance customers can update their limits at any time, but must provide an updated appraisal to do so. Encouraging customers to come for an updated appraisal can lead to additional purchases, referrals, and in the event of a loss, a lifelong loyal customer, suggests the company. For more information about business coverage or JMI’s Personal Jewelry Insurance program, call your agent or Jewelers Mutual, (800) 558-6411.
Attleboro Falls, MA—Congress on August 1 passed a bill altering some key provisions in the Consumer Product Safety Improvement Act (CPSIA), according to Manufacturing Jewelers and Suppliers of America (MJSA). The legislation, H.R. 2715, removes the requirement that existing inventories of base-metal children's jewelry meet the imminent 100 ppm lead content standard of the CPSIA, which sets federal lead limits on children's products, including jewelry. MJSA says precious metal children's jewelry, unless it's been treated or adulterated in some way that might introduce lead, is exempted from these requirements. For more information, contact Peggy Jo Donahue, MJSA director of public affairs, pj.donahue@mjsa.org, (856) 854-9357.