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Industry News: Biggest Gold Bear Market Since 1981; Tiffany Exec Goes To Prison; More January 01, 2014 (0 comments)
Gold Slides Again; 2013 To Be Its Worst Year Since 1981
New York, NY—Gold rounded out 2013 by tumbling down in its biggest annual loss since 1981. According to this report on Bloomberg.com, an improving economy with little or no inflation has removed the fear that drives the gold market up. Gold bullion slid to $1,186 the ounce on December 19, and at press time, Kitco.com reported the metal will end 2013 with almost a 30% loss. Likewise, silver is set to close out the year with a 36% loss.
The 13-year bull market for gold may be over but don’t look for a return of $800 gold anytime soon. At current prices, the metal is approaching its marginal cost of production and mining companies are being squeezed, especially after making significant investments in infrastructure and equipment, says Peter Esho, chief market analyst at Invast Securities in Sydney, Australia. Gold is becoming harder more expensive to mine, he says, and predicts this will establish a gold floor between $1,000 and $1,100 the ounce—concurring with what other analysts have said—and any movement below that level will result in a sharp drop in production. Apart from the drop in investment demand, other underlying factors driving demand haven’t changed, he says, so a drop in production will drive prices back up.
GIA’s New Report Formats Launched This Week
Carlsbad, CA—GIA (Gemological Institute of America) introduced a revised format for its diamond grading and gem identification reports yesterday, January 1, 2014. While the reports’ format will change, the information contained in the reports will not.
The new reports have dimensions similar to the prior versions but will consume less paper and other materials and they have enhanced security features, including a unique and durable proprietary paper. QR codes printed on each report will provide direct access to GIA’s online Report Check service, which allows clients and consumers to confirm the authenticity of GIA grading and identification reports with their smartphones.
Upon request, GIA will offer no-cost replacements in the new format for reports issued from July 1 through December 31, 2013. Reissues of reports dated January 1 through June 30, 2013 will be available for a nominal fee. The previous reports must be returned to GIA before the reissues can be processed. Laboratory clients may check GIA.edu or contact their GIA client service representatives for further information.
Click here for more information.
Swatch Fire Likely To Impact Other Watch Brands
Grenchen, Switzerland—A December 29 fire that gutted the ETA Manufacture Horologère workshop here is more likely to impact other watch companies that rely on Swatch-made component parts than it is to affect the brand’s own output. A press release from the company confirmed the damage was extensive but said nobody was hurt. The fire was brought under control within 45 minutes, but at press time the company had not put a value on the damages.
Swatch supplies component parts to many major watch brands, including its competitors.
Former Tiffany Executive To Serve Prison Time
New York, NY—Ingrid Lederhaas-Okun, the former vice president of Tiffany & Co. who stole and re-sold more than 165 pieces of the retailer’s jewelry, has been sentenced to one year and one day in prison. She was fired from Tiffany last February and arrested in July, charged with checking the jewelry out for business purposes and never returning it. Checks totaling approximately $1.3 million were issued to her from a Manhattan-based jewelry reseller. She also must forfeit and restore a total of $4.3 million.
Matteo Marzotto Names President of Fiera di Vicenza
Vicenza, Italy—The new board of directors of Fiera di Vicenza has officially named Matteo Marzotto as president. The announcement was made December 23, 2013, during the board's first meeting, which had been called the previous Friday at a gathering of the organization's shareholders. Marzotto, a prominent international entrepreneur, was put forward for election by the public shareholders.
Members of the fair’s new board of directors include Michele Amenduni, vice president and managing director of Acciaierie Valbruna Spa; Renato Corrà, managing partner of Corrà 1789 Srl, a clothing company; Romano Capellari, marketing professor at the University of Padua; Ester Furlan, manager of the multinational company The Boston Consulting Group; Angela Peretto, accountant; and Stefano Stenta, president of the haute couture fashion company Atelier Stimamiglio Srl.
Marzotto, 47, is currently president of Fondazione CUOA, one of Italy's most important business schools, having been appointed June 2013. He has served as president of the non-profit organization Associazione Progetto Marzotto since October 2012, and as president of the Mittelmoda Fashion Awards since September 2008.
As an entrepreneur, in January 2009 he acquired and subsequently re-launched the haute couture Vionnet fashion house, serving as president of Vionnet S.p.A until January 2013. Prior to that he worked for 15 years in his family's group of companies, gaining extensive experience along the entire textile and clothing distribution chain, and from 2003 to 2008 served as Chief Operations Officer and then president of Valentino S.p.A. He is a member of numerous corporate boards, among them Morellato & Sector S.p.A and Brunello Cucinelli S.p.A.
VICENZAORO’s winter jewelry show will be held January 18-23, 2014.
Top image: Harlemedge.com