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INDUSTRY NEWS: GOLD DIPS AGAIN, DE BEERS SIGHTHOLDER LIST RELEASED, MORE April 04, 2012 (0 comments)
Gold Dips on Fed’s Holdback
New York—Gold fell to $1,620/ounce Tuesday on the news that the Federal Reserve is not currently planning any more stimulus measures. Minutes from a March 13 policy meeting, released April 3, says the Fed will hold off on increasing money supply unless the economic expansion falters or prices rise slower than its 2% target, says this report on Bloomberg.com. The news drove the U.S. dollar higher—traditionally an inversely proportional relationship to gold—but drove silver down. But by Thursday morning, gold had already showed moderate gains, approximately $6.00 the ounce at press time, adjusted for the dollar's increase. Not adjusting for the dollar's increase, the gain would have been more than $13.00 the ounce, says metals website Kitco.com.
But commodities and derivatives analyst Andy Waldock says gold demand will return. In a blog post on his firm’s website, he points to ongoing strikes by jewelers and public uproar in India over a new tax being implemented on non-branded gold jewelry. Given India’s cultural affinity for gold, the situation has driven global gold demand down significantly, albeit temporarily. Demand will return once the situation is resolved, believes Waldock.
Demand may return if the tax is repealed, but Vinod Kuriyan, India retail editor-in-chief for IDEX, isn’t optimistic that it will be repealed. He agrees with Waldock’s point that the tax was brought in to try and reduce the huge gold imports seen as one of the major causes of India’s foreign trade deficit, but adds that it’s also a preliminary step toward implementing a nationwide general services tax that is intended to replace the varying sales taxes and VATs (value-added tax) of the individual states.
Separately, the World Gold Council has released a revised draft of its conflict-free gold standard, which aims to ensure that gold mined under its standards does not in any way contribute to armed conflict or human rights abuses. The first draft was released last June; following input from various stakeholders the revised draft can be seen here. Further updates will be posted to the site.
De Beers Releases New Sightholder List
London, United Kingdom—De Beers’ Diamond Trading Company announces the start of the 2012-2015 Supplier of Choice contract, effective March 31, and has published a semi-final list of its 75 sightholders—a gain of three from the 72 who were announced as provisional in December. Read the full list here.
Separately, the U.S. Supreme Court again denied a petition for certiorari filed by the indirect purchaser class in the De Beers class action lawsuits, National Jeweler reported Wednesday. The nearly $300 million lawsuit has been dragged through multiple courts with no end in sight. Read the full article here.
JBT Elects First Female Board Chair
Warwick, RI—The Jewelers Board of Trade has elected Phyllis Bergman, CEO of Mercury Ring, (a Division of Interjewel USA Inc.), to chair the board of directors. She is the first woman board chair in JBT's 128-year history.
JBT president Dione Kenyon said, "This is truly a milestone for our organization and for the jewelry industry. JBT will gain immensely from Phyllis's experience, leadership skills, and perspective."
The JBT board also elected the following officers and directors to serve a one-year term: In addition to Bergman, first vice-chairman, Richard Weisenfeld; second vice-chairman, Todd Wolleman; president, Dione D. Kenyon; secretary, Brenda M. Pimentel; and treasurer, Alisa D. Dumond.
Newly elected to the board for a two-year term is Basant Johari of Kuber Mfg. in New York, and elected to the advisory board for a period of two years is F. Daniel Pharr of Pharr Valuation & Business Services, Richmond, VA. Re-elected to the board for a period of two years are:
- Ann S. Arnold, Lieberfarb, Inc., Rahway, NJ
- Anthony J. Capuano, HSBC Bank USA, N.A., Rehoboth, MA
- Edward N. DeCristofaro, LDC, Inc., Providence, RI
- Richard Greenwood, A. F. Greenwood Co., Inc., New York, NY
- Philip Holden, The Gordon Company, Inc., Ft. Lauderdale, FL
- Roderick H. Lichtenfels, W. R. Cobb Company, E. Providence, RI
- F. Paul Mooney, Jr., George H. Fuller & Son Co., Pawtucket, RI
- Richard Weisenfeld, Pranda North America, Inc., Cranston, RI
- Todd Wolleman, Leo Wolleman, Inc., New York, NY
The following Board members continue to serve their existing terms:
- Phyllis Bergman, Mercury Ring (Div. of Interjewel U.S.A., Inc.), New York, NY
- Brian D. Fleming, Carla Corporation, E. Providence, RI
- Kevin Green, Seiko Corporation of America, Mahwah, NJ
- Michael L. Kaplan, Rocket Jewelry Box, Inc., Bronx, NY
- Richard Katz, Samuel Aaron, Inc., Long Island City, NY
- Anna Martin, Standard Chartered Bank, London, ENGLAND
- Joel R. Matthies, Jewelers Mutual Insurance Co., (Inc.), Neenah, WI
- Richard V. Powers, Stern-Leach Co. (Inc.), Attleboro, MA
- Avi Raz, A & Z Pearls, Inc., Los Angeles, CA
- Pinny Rubin, Leslie's Jewelry Mfg. Corp., Greenwich, CT