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Industry News: Diamond Prices Struggle; Sotheby’s To Auction 100-ct. D Flawless; AGS Survey Results; March 04, 2015 (0 comments)
Sotheby’s To Auction 100-ct, D Flawless Diamond
New York, NY—Sotheby’s will auction off a 100.2 ct. emerald cut diamond (left) that’s been described as “perfect” in its April 21 Magnificent Jewels auction. The estimated value of the stone is between $19 million and $25 million.
The stone, described as “transparent with no flaws” by Frank Everett, Sotheby’s vice president of sales for jewelry, was mined by De Beers some time in the last decade. It weighed 200 carats before cutting. Its owner wishes to remain anonymous. Following a global tour it will be on display at Sotheby’s in New York starting April 17.
AGS Consumer Survey Reinforces Trends
Las Vegas, NV—An ongoing survey of jewelry-buying consumers on the American Gem Society website underscores recent findings of how Americans shop for an engagement ring. According to the latest updates from AGS’s survey:
Diamonds are still the number-one choice for engagement rings but other gems are gaining ground. Almost one-third of respondents said an engagement ring with gems other than diamonds in it was ok with them.
Couples like to shop together for the ring. For several decades now, women have been more and more involved in the selection of the engagement ring. The traditional idea of the man choosing the ring without any input from the woman is far less in favor.
Paper is here to say. More half of couples responding to the AGS survey want a grading report with their diamond.
Jewelers with credentials are preferred. Not surprisingly, couples feel more comfortable shopping with a jeweler who has earned credentials in the industry.
Polished Diamond Prices Remain Under Pressure
New York, NY—Polished diamond prices struggled again in February, according to the latest figures from Rapaport. Sentiment improved ahead of the Hong Kong International Diamond, Gem and Pearl Show this week but trading volume was low and liquidity tight in the manufacturing centers. Buyers lacked confidence to make large inventory purchases and limited their buying to fill existing orders.
The RapNet Diamond Index (RAPI) for one-carat laboratory-graded diamonds rose 1% in February. RAPI for 0.30-carat diamonds declined 1.3%, RAPI for 0.50-carat diamonds fell 1.4%, and RAPI for 3-carat diamonds dropped by 0.5%.
According to the Rapaport Monthly Report “Struggling to Profit,” concern remains that the market has not yet bottomed out.
Geopolitical developments only add to the uncertainty. Russian and Middle East demand slumped along with the ruble and oil prices. Chinese demand for large diamonds also weakened due to the government’s campaign against corruption and conspicuous consumption, so diamantaires looked to the U.S. for support where there was good demand for SI-I2 clarity diamonds.
Jewelry sales during the Chinese New Year Spring Festival were mixed with soft demand for high-end products and steady sales of commercial-quality diamond jewelry. Behemoth retailer Chow Tai Fook reported same-store sales of gem-set jewelry in Mainland China rose 62% during the season but Hong Kong and Macau sales were very weak with same-store gem-set jewelry sales declining 17%.
The continued growth of China’s middle income population is supporting demand for under the carat, G-J, SI diamonds at the Hong Kong show, while large diamonds above 3 carats are not liquid at current price levels.
Rough trading improved slightly but overall rough demand is cautious as manufacturers struggle to profit. De Beers dropped rough prices by about 2%, not enough to restore reasonable profitability. Manufacturers have reduced polished production by approximately 30% by volume and 50% by value, tightening the supply of laboratory-graded diamonds. Traders hope that shortages will stabilize the market.
“Indian diamond manufacturers are under unacceptable stress as high rough prices and weak polished demand have destroyed their liquidity and profitability. Cutters are running out of money. Dealer trading volume is plummeting. If traders can’t sell, they can’t buy,” said Martin Rapaport, chairman of the Rapaport Group.
New Mediterranean Gem and Jewelry Conference Set For June In Greece
Athens, Greece—The first of a series of annual Mediterranean gem and jewelry conferences is set for June 27-28 at the Divani Palace & Thalasso Hotel, Athens, Greece. Lectures will be offered by leading independent laboratory gemologists, appraisers and synthesis experts, on a broad range of subjects but especially topics that are most worrisome and challenging to the industry. Some topics include:
- Production, gemological characteristics and value of Argyle colored diamonds
- Testing and identification of melee synthetic diamonds (loose and set) and pearls
- Update on production of synthetic HPHT and CVD diamonds and how to identify and value them
- Characteristics of Mozambique vs. Burma rubies
- A practical workshop organized by CGL GRS Canada on the use of standard and advanced instruments to in detect over 50 synthetic HPHT-grown and CVD-grown and treated diamonds.
Speakers include: Dr. Thomas Hainschwang (Lichtenstein), Francesca Peretti (Switzerland), Branko Deljanin (Canada), Wolf Kuehn (Canada), Gail Brett Levine (USA), Fazil Ozen (Turkey), Kym Hughes (Australia) and Dr. Joe C.C. Yuan (Taiwan)
Independent Gemological Laboratory Greece, CGL and Swiss Canadian Gem Lab Inc., Canada, in cooperation with the Association of Independent Jewellery Valuers (UK) and National Association of Jewelry Appraisers (USA) are event organizers.
All participants are welcome to submit digital papers on gemology, jewelry, education, or retail for the "Poster Competition." The three best posters will be chosen by the organizers by June 5 and will not be charged for displaying a poster during the Conference. The best poster presenter will be chosen by conference participants and awarded free attendance to the 2016 Mediterranean and Jewellery Conference in Spain. For further information and registration, contact George Spyromilios, IGL Hellas, info@iglcert.gr, or Branko Deljanin, CGL–GRS Canada, info@cglworld.ca.