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Industry News: Large Diamond Prices Fall But Smalls Up; GIA’s Bert Krashes Dies; More January 07, 2014 (0 comments)
Certified Polished Diamond Prices Decline 4.5% in 2013
New York, NY—Polished diamond prices remained relatively stable in December but fell overall, according to the latest figures from Rapaport.
In December 2013, the RapNet Diamond Index (RAPI) for certified one-carat polished diamonds rose 0.2%, while the RAPI for smaller certified goods increased at a faster pace, continuing the trend witnessed throughout the year.
But global diamond prices for one-carat stones declined 4.5% for 2013 as a whole, as economic growth slowed in China and India. Diamond trading was supported by stable U.S. demand and a shift toward lower price point, commercial-quality diamonds. Sentiment improved in December due to steady U.S. Christmas holiday sales and rising expectations for the Chinese New Year, but liquidity in the cutter and dealer markets remains tight. Profit margins are low and banks have reduced their credit for rough purchases in the manufacturing sector.
In addition to the decline in price for one-carat stones, the RAPI for three-carat stones also dropped 4% for 2013. Half-carat stones remained fairly stable—a decline of only 0.7%, but as stated earlier, prices for smalls are rising. The RAPI for 0.30-carat diamonds rose 10.1 percent for 2013.
There was good demand for smaller, commercial-quality diamonds as U.S. consumers focused on discount shopping during the holiday season. The trend is expected to continue as the diamond market shifts focus to the Far East for the Chinese New Year festival that begins on January 31. Far East jewelry retail sales are being driven by strong gold demand, but the major jewelers are expected to make a strong push to ramp up diamond sales in an effort to boost their margins. Buying is expected to remain cautious, as economic growth has slowed while China’s government implements its reform agenda.
Rough trading improved in December as manufacturers were left with depleted inventory after they refused high-priced supply from August to October.
Polished trading is expected to improve during the first quarter driven by Chinese New Year demand and as U.S retailers start to replenish sold inventory. But buyers are still conservative and retail jewelers are opting for leaner inventory. While sentiment has improved and prospects for 2014 are slightly more upbeat, challenges remain for the diamond industry.
In Memoriam: GIA Celebrates the Life of Bert Krashes
Carlsbad, CA—GIA (Gemological Institute of America) announces the passing last weekend of Bert Krashes, former vice president and member of the Board of Governors. Cause of death was natural.
Krashes joined GIA in 1949, becoming vice president and director of the Gem Trade Laboratory in New York in 1977. Recognized as one of the Institute’s pioneers, he helped establish its east coast school, laboratory, gem identification and grading services, and the “traveling classrooms” that took GIA education to jewelers across the United States.
“Bert will be missed for his significant contributions to GIA and to the gem and jewelry industry,” said Susan Jacques, GIA’s president and CEO. “His generosity and dedication helped countless students, staff and industry members, and for that we are exceptionally grateful.”
Krashes, a World War II Purple Heart veteran, became one of GIA’s first students in New York. GIA’s Richard T. Liddicoat was so impressed with his “excellent work and keen questions,” that he offered Krashes a full-time position as an instructor and gemologist. He went on to become one of GIA’s most popular instructors, and helped lead the New York laboratory to international prominence.
“Bert had an engaging style that raised his esteem with all of his co-workers and the many students he touched. His dedication and high standards were key for GIA diamond grading reports to gain international respect and growth.,” said Tom Moses, GIA’s executive vice president and chief laboratory and research officer.
Krashes retired in 1998, and was presented with a lapel pin featuring a diamond inscribed with the number 19491998, representing his 49 years of service to GIA.
MJSA Publishes 2014 Edition of Its Annual Buyer's Guide
Providence, RI—MJSA has published the 2014 edition of its popular MJSA Buyer's Guide, which lists resources and information for purchasing jewelry-making tools, equipment, supplies, and services.
The 314-page Buyer's Guide lists MJSA members by products and services they offer in the following categories: tools and equipment, metals, contract manufacturing, findings, chain, gemstones, beads, business equipment, business services, and packaging and displays. Contact information is supplied.
The 2014 Guide also features several useful articles, covering such topics as minimizing metal loss to get the best refining return; the top trends expected to shape 2014; when to ask subcontractors to sign non-disclosure agreements; security investments for a home-based business; jewelers' favorite bench tools; and how and when to invest in computer-aided manufacturing systems.
MJSA members receive a complimentary copy of the Guide; non-members can purchase it here or by calling (800) 444-MJSA (6572).
Impact of Conflict Mineral Legislation To Be Examined during VICENZAORO
Vicenza, Italy—2014 will see the start of legislation affecting the regulation of minerals—including gold—from areas of conflict in Africa. The legislation will influence the businesses of thousands of jewelers who directly or indirectly supply the U. S. market, while pending legislation may affect companies importing or supplying jewelry in the European Union. The impact of these laws will be the subject of a seminar on Monday, January 20, during the VICENZAORO Winter show.
The seminar, titled "Conflict Mineral Legislation in Europe and the United States: How it Impacts Both Domestic and Export Jewellery Business," is being organized by Fiera di Vicenza; the Responsible Jewellery Council; CIBJO, the World Jewellery Confederation; and Confindustria Federorafi. It will be held from 11:00 AM to 12:00 PM, in the Palladio Room at Fiera di Vicenza.
According to the conflict mineral rules contained in Section 1502 of the Dodd-Frank Act, publicly-traded companies in the United States, including major jewelry retailers, will for the first time, in 2014, have to file a report with the Security Exchange Commission, tracing their supply chain. Using a nationally or internationally recognized due diligence standard, companies will need to determine whether their supply chain includes gold sourced from the Democratic Republic of Congo and neighboring countries.
The discussion will be moderated by Corrado Facco, managing director of Fiera di Vicenza, and Gaetano Cavalieri, president of CIBJO. Panelists include Marieke van der Mijn, standards coordinator at the Responsible Jewellery Council; Michael Allchin, chief executive and assay master at the Birmingham Assay Office and the president of the CIBJO Precious Metals Commission; Philip Olden, who is responsible for managing the development and implementation of responsible sourcing protocols for gold at Signet, the world's largest specialty jewelry retailer; Maria Benedetta Francesconi of the Italian Ministry of Economic Development, and Rossella Ravagli, corporate social and environmental responsibility manager at Gucci in Italy, who also is a representative of Confindustria Federorafi.