With the intention to showcase Indian companies diamond and colored gemstone manufacturing skills, the GJEPC has announced the first “Indian Diamond & Color Stone Show (IDCS) 2009” – an exclusive buyer / seller meet for overseas buyers planning to attend IIJS.

The show will be held on 4-5 August 2009 at Hotel Renaissance, Powai, Mumbai, two before IIJS 2009.

Despite the recent economic woes, IIJS 2009 will have more than 1,550 booths and approximately 650 exhibitors from India and overseas.

To further encourage business, GJEPC said that buyers planning to attend the two Mumbai shows can enjoy a host of complimentary hospitality services, including airport pick-up, complimentary entry and shuttle service from the hotel to the exhibition venue as well as factory visits on request.

Source: http://www.idexonline.com/portal_FullNews.asp?id=32521

The highlights of the auction are more than 50 lots of tourmaline in various shades, featured as polished and unpolished minerals, unmounted stones and jewelry.

Of particular interest is a multi-color suite of jewelry composed of 59 tiny, intricately hand-carved flowers by German lapidary master Manfred Wild, estimated between $28,000-$35,000. Consisting of a necklace and pair of earrings, the ensemble is composed of a variety of tourmalines from several world localities. Done in hues of hot pink, red, yellow-orange, bi-color, green and the highly sought after blue, each individual flower centers on a small white pearl to provide a natural look and elegant feel.

According to Claudia Florian, G.J.G. and co-consulting director of the Natural History sale, collector interest in tourmaline has grown exponentially in the past several years.

“Made popular by its hardness level, tourmaline is the perfect stone for daily wear in the form of jewelry,” Florian said in a media release. “Blue tourmalines, such as those examples featured in the June auction, are extremely rare and highly sought after by the public. Tourmaline is also the national gemstone of the United States, due to the once abundant deposits of pink stone in San Diego County, California.”

Additional hand-carved tourmaline pieces created by Wild to be offered at the auction include a transparent, green Brazilian box trimmed in 18-karat gold, estimated between $15,000-$18,000; a multi-color and sterling silver presentation box fitted with a rare Liddicoatite slice from Madagascar displaying brilliant concentric banding in red, candy pink, green and black, estimated between $12,000-$15,000; a finely detailed, intensely pink Madagascar tourmaline carving of a mouse, estimated between $4,500-$5,500; and an unusual bi-color pink and green tourmaline and 18-karat gold miniature sculpture of a grasshopper, estimated between $3,500-$4,500.

The auction will also feature a group of carvings by renowned artist Gerd Dreher. Notable highlights include a fish created from a massive slab of Madagascar tourmaline, estimated between $9,000-$12,000, and a pair of dolphins made from nearly 6,000 carats of aquamarine, estimated between $25,000-$35,000.

A hand-carved marine-life chess set made of ruby and lapis lazuli will also be up for sale. Created by Syliva and Luis Quispe, the set is trimmed with 18-karat gold and accompanied by an illuminated rock crystal and obsidian chess board, estimated between $90,000-$110,000.

The jewelry section of the auction will include a 99-carat carved black opal and diamond pendant from the world-renowned locality of Lightning Ridge, Australia, estimated between $50,000-$60,000. Dubbed “Aqua Profonda” by designer Jenni Brammall, the piece was created specifically for use during the Australian Masters of Fashion Awards 2008 in Melbourne, Australia.

Items for women by well-known jeweler Robert Wander will also be included.  Wander is the originator of the term “Crystal Candy” and his line consists of brilliantly colored gems, which are often left unpolished to showcase the natural beauty of the stone. Found at upscale department stores throughout the United States, several of Wander’s pieces have been selected for this auction to illustrate the tourmaline theme (estimates upon request).

Several pieces of signed jewelry for men including an array of cuff links will also be featured.

For more information about the Natural History auction, contact Bonhams at (212) 644-9001.

http://www.nationaljewelernetwork.com/njn/content_display/colored-stones/color-market-reports/e3i79bb0667857397db7e33c2a71fa64497

The Council is all set to explore the Middle East market with its ‘Brand India’ campaign. Besides the Middle East, which are the other countries that the Council is thinking of exploring? Can you please name some newer untapped markets around the globe?

We are also exploring CIS, China and Vietnam and have already begun our promotional efforts. There are many other markets like the New Zealand, Brunei, North and South Korea and Ireland which are still untapped.

GJEPC had also urged the Government to increase the measure of rupee interest subvention from two percent to four percent and extend the same to dollar credit. How well was this taken and how helpful has this been for the industry?

Unfortunately, the government has not increased the subvention to four percent and also to the dollar credit. If it would have been approved, our cost of production would have come down and our product would have been competitive in the international market.

What are the other initiatives taken up by the Council to uplift the sagging industry?

In the initial period, our first step was to request our members to reduce the import of rough diamonds so that there was no pressure on the inventory. This reduced production has helped the industry to pause and examine the effect of the recessionary period.

Our next effort was to reduce our cost of finance and for that we approached the government and the banks to reduce the interest rates.

We held regular meetings with international advisors/analysts and offered their viewpoints to our members.

We also appealed to the producers/miners to curtail their productions and not to force raw material to an already jammed pipeline. Regular meetings were held with the financing banks to apprise them of the market conditions and requesting them to take suitable steps. On the marketing scenario, we stepped up our promotional activities and appealed to the world organizations to do the same on a global level.

For our workforce (artisans), we ensured that the unemployed and/or laid off workers get financial help for the education of their children. A sum of Rs 1.75 crores is being distributed for this purpose.

Not only the diamond exports, but the coloured gemstones, pearls, non-gold jewellery and synthetic stones have also have fallen substantially. For this matter, some jewelers in Gujarat have temporarily turned to imitation jewelry manufacturing. What is your opinion about it?

We have no information of anyone turning to imitation jewellery. Since the world markets are going through a lean period due to the recession,we do not expect any growth in the gem & jewellery industry exports (which includes colour gemstones, pearls and synthetic stones) for the next few months.

What do you have to say on the Task Force set by the Reserve Bank of India to look into the problems faced by the diamond industry in Gujarat? Do you think more such forces should be set up to help the industry?

Basically, the export industry is mainly located in Mumbai and as such a Task Force should have been set up to look at the problems of the exporters in Mumbai and also all over India. The Diamond Industry in Gujarat is more on the manufacturing (cutting and polishing) of diamonds and as such, the major problems of that region are connected to employment and lay offs.

Can you please provide some details on the MoU signed between the Council and Shanghai Diamond Exchange for Indo–China co-operation in promoting the jewellery sector during IIJS Signature in Goa? When is this likely to be implemented?

We have been aggressively increasing our promotional activities in China as this market is growing at a good rate. In the last two years We have taken our members twice to Shanghai and Shenzhen and held buyer-seller meets in addition to a delegation which interacted with the Chinese industry.

Shanghai Diamond Exchange has offered us good help in these activities and as such we have now signed an MOU for further cooperation in promoting gems and jewellery sector in the mutual interest of both industries.

IIJS in Mumbai will be visited by a high power delegation led by SDE. The Indian industry will organize more buyer-seller meets in Beijing and in Panyu later this year. We acknowledge help of the Chinese government in all these efforts.

There are plans of launching a nation-wide three-year programme for domestic generic promotion of polished diamonds covering the metros as well as tier-II and tier-III cities. Can you please throw some light into this development?

Our domestic market is also growing with new demands and this has helped the manufacturers sell their goods locally. As such we have now embarked upon a project whereby we will offer a platform to the manufacturers and the domestic retailers to contribute to a programme of promoting diamonds and diamond jewellery in India. This will be a long term programme and would help excite demands in the local markets.

The Council had appealed to all the rough producers to curtail the supply of rough diamonds to maintain stability and confidence in the diamond market. How helpful and successful was this appeal and are you going to implement similar appeals in the future also?

The producers have been very helpful in this. De Beers and other producers have curtailed their productions and Russia has also reduced their sales of rough diamonds. I cannot say if they did it in response to our appeal but they realized that due to reduced demands from the manufacturers excessive production and supply would hurt all the stakeholders in the pipeline.

What is the way ahead for the GJ industry now?

Well, we are all waiting for the turnaround in the pattern of consumer buying of this luxury item. Luckily for us, in the Indian industry there has been good support from the domestic market. In the international markets also we see some movement especilly in the medium-priced small and large goods and this could well be the end of recession for the Indian industry.

Courtesy: www.gjepc.org

http://www.commodityonline.com/news/Indias-gold–diamond-sector-gets-Chinese-boost-16678-3-1.html

The Financial support to the industry, particularly for small and medium enterprises (SMEs), was made possible with cooperation from the government, private and financial sectors. The EXIM Bank, SME Bank, and the Small Business Credit Guarantee Corporation have singed a memorandum of understanding to extend lendings to Thai and foreign operators starting in March, 2009.

The scopes of cooperation embrace, One is money support for the domestic credit and related services for exporters, and another one is credit guarantee for unqualified exporters who are not eligible to get credit permissions from any financial institutes, and lastly is risk guarantee for exporters in jewel industry who are effected from nonpayment of debts from foreign buyers, plus risk evaluation for banks or buyers, including credit services for export and import – export related industries.

Providing financial assistance is one of the ways to help the jewel industry to overcome impediments and enabling it to have good revenue, growth and remarkable itself to the market. Other crucial elements are that entrepreneurs conduct their businesses in accordance with procedures highlighted under the Ministry’s “Thai Gems and Jewelry Trading Route” campaign.

Source: http://diamondworld.net/contentview.aspx?item=3687

In a recent survey, according to AVERT, an international AIDS charity, South Africans said they spent more time at funerals than getting their hair cut, shopping or attending barbecues.

The survey also reported that the probability of South Africans attending a funeral was two times greater than their going to a wedding.

HIV/AIDS is an epidemic in South Africa, particularly in the Valley of 1,000 Hills near Durban in the province of KwaZulu-Natal, the hardest-hit region of the hardest-hit nation. Nearly one in three adults is HIV positive.

According to a company statement released Wednesday, the decline was particularly pronounced in the fourth quarter, when same-store sales dropped 16.1 percent after falling only 6.0 percent in the first three quarters of the
year.

Total sales for Sterling reached $2.5 billion in fiscal year 2009, down from $2.7 billion in fiscal 2008.

On a positive note, the company also reported that U.S. same-store sales for the first seven weeks of the current quarter were down by just 2.7 percent compared to the same period a year ago, with strong Valentine’s Day results. Sterling also said that gross margins for the period were “meaningfully” up.

Commenting on the overall performance of Bermuda-based Signet Group Ltd., Sterling’s parent company, Terry Burman, group chief executive, said while the numbers are not outstanding, Signet stores outperformed many of their competitors.

“Against a very challenging retail environment, we capitalized on the group’s competitive strengths to outperform our middle-market competitors and to successfully execute our strategy of maximizing gross merchandise dollars,” he said.

In the United States specifically, the company stated it is poised to gain market share due to the failure of competitors including Robbins Bros, Whitehall Jewelers, Freidman’s and Christian Bernard Stores Corp.

Due to the challenging retail environment, Sterling has reduced staff at its Akron, Ohio, headquarters by 15 percent over the last 15 months, cutting headcount by about 350 through a mix of attrition and layoffs.

Heading into calendar year 2009, Sterling is embarking on a $100 million savings plan that calls for, among other things, the closure of approximately 75 stores nationwide, with only 15 new locations opening.

As a whole, Signet, which also operates stores in the United Kingdom, reported an 8.2 percent decline in same-store sales in fiscal 2009.

Total sales for the group were $3.3 billion, down 5.7 percent on a constant-exchange rate basis.

http://www.nationaljewelernetwork.com/njn/content_display/majors/financial-reporting/e3i52a5818a20ffa024ee3903e0b24faf48

The move by the Illinois state legislature’s Revenue and Finance Committee to drop H.B. 451 drew applause from JA, which has been campaigning in conjunction with jewelers to stop the bill.

“This is an important victory for jewelers in the State of Illinois,” JA President and Chief Executive Officer Matthew A. Runci said in a press release. “It sends a powerful message that the jewelry industry will not tolerate unfair tax legislation.”

JA campaigned aggressively against the bill, working through both its state affiliate, the Illinois Jewelers Association, and the non-affiliated Chicago Jewelers Association.

According to the release, JA provided jewelers with sample letter petitions and contact information for state legislators.

In addition, jewelers were urged to collect employee signatures to add to the letter petitions to underline the effect a luxury tax could have on workers in the jewelry and watch industry.

JA is mounting a similar campaign in New York, where the state legislature also is considering a luxury tax of 5 percent on purchases of more than $20,000.

New York jewelers and other interested parties can request background information and letter petitions opposing the luxury tax by contacting Peggy Jo Donahue, pjdonahue@jewelers.org or (646) 658-5802, or Susan Thea Posnock, sposnock@jewelers.org or (646) 658-5806, in JA’s public affairs department.

For more information about JA, visit Jewelers.org.

Source: http://www.nationaljewelernetwork.com/njn/content_display/independents/market-developments/e3i52a5818a20ffa024dcc86c68ae3b1276

According to the Gold Yearbook 2009, an annual report released by CPM Group, fabrication demand for gold – which consists mostly of jewelry but also includes electronics, dental, medical and other uses – declined 6.6 percent in 2008, from 82.9 million ounces to 77.4 million ounces.

This year, total demand is forecasted to slip another 7.9 percent, to 71.3 million ounces.

According to the report, consumer spending on discretionary items, such as gold jewelry, will remain weak in 2009, with jewelry demand falling 7.1 percent, from 60.8 million ounces in 2008 to 56.5 million ounces in 2009.

While the metal might not be attracting jewelry store shoppers, investment interest is expected to remain high, the report states.

Due to the inclination to acquire safe haven assets worldwide, investor buying is projected to reach a record 52.3 million ounces this year, up from the 43.3 million ounces purchased in 2008.

The continued volatile and weak financial conditions also are expected to be supportive of strong investment demand this year.

Combined with short term and speculative activity, gold prices are expected to surpass last year’s record intraday high of $1,033.90 reached on March 17, 2008,
the report states.

CPM Group, a precious metals and commodities research, consulting, asset management and investment banking firm, produces annual yearbooks on gold, silver and platinum group metals.

The Silver Yearbook is slated for release on April 28, while the Platinum Group Metals Yearbook is slated to come out on June 30.
For more information, visit CPMGroup.com.

Source: http://www.nationaljewelernetwork.com/njn/content_display/independents/market-developments/e3i52a5818a20ffa024344a8879d5349845