Diamond News

Natural-color diamonds hold margins, value

May 29, 2009

Las Vegas–Jewelers looking for a product that sets their store apart and holds its own when it comes to margins might want to try natural-color diamonds, retailers told an audience of hundreds at a breakfast event held on Friday morning during the JCK Las Vegas show. For the event, titled “The Language of Color,” Natural Color Diamond Association (NCDIA) Executive Director Robert May and consultant Diane Warga Arias, of DWA Communications, introduced four retail jeweler panelists, who then spent about an hour sharing stories of selling natural-color diamonds in their stores. At Wick and Greene Jewelers in Ashville, N.C., owner Michael Greene told the story of a professional athlete who entered his store looking for an anniversary gift for his wife when a display of natural-color diamonds caught his eye. He gave his a wife a piece showcasing the stones and it was a success, so much so that the wife is now requesting additional natural-color diamond jewelry as a gift to mark the upcoming birth of their first child.

“Natural-color diamonds–they are the ultimate colored gemstones,” Greene said. In addition to being a favorite among customers, natural-color diamonds–unlike colorless diamonds–cannot be shopped on price, Greene said, which allows jewelers to obtain greater margins with these stones. “There are no Rap lists or other comparative lists for our fancy natural-color diamonds,” he said. Michael Pollack, co-founder and chief executive officer of Hyde Park Jewelers, with stores in Denver, Phoenix and Las Vegas, agrees. “If you sell something that can be compared, the consumer is going to see if there is a better value out there for them,” he said. Pollack said he sold a customer a five-carat natural fancy yellow diamond ring simply because she fell in the love with the piece and, though she tried, couldn’t find anything exactly like it anywhere else. Pollack also noted that natural-color diamonds hold their value–they have doubled in value every 10 years since the 1970s–and have their place in history.

Recently, a 7.03-carat blue diamond sold at Sotheby’s set the per-carat record price for a gemstone sold at auction, and some of the world’s best-known diamonds are natural-color stones, including the Hope Diamond, the Tiffany Diamond and celebrity-gifted stones, such as singer Jennifer Lopez’s pink engagement ring from ex-fiance Ben Affleck. The stones also are rare–only one in 10,000 stones that come out of the ground are considered natural-color diamonds. When asked about how to market natural-color diamonds, retailer Alfredo Molina, of the Phoenix-based Molina Group, said that to sell natural-color diamonds, retailers have to advertise that they carry them. He said he recently had success advertising a yellow diamond on The Robb Report. George Walton, of Golden Diamond Co. in Anchorage, Alaska, said that traditional ways of marketing, such as advertising in the newspapers, don’t work for natural-color diamonds, just as they don’t work for general advertising anymore. He recommends that retailers “step out of the box” and embrace new forms of advertising when marketing natural-color diamonds.

Huge Blue Diamond Sells for Record Price

Posted by Michelle Orman on December 11, 2008

For all of you bling lovers out there (and I know you’re out there), how’s this for some super-sized glam?  The Wittelsbach Diamond, a 35.56 carat cushion-shaped blue diamond sold at Christie’s for a record $24.3 million.  The piece marks the highest bid ever placed on a gemstone at auction.  The piece, a 35.56 carat cushion-shaped blue diamond, was purchased by Laurence Graff of Graff Diamonds in London. 

The diamond was originally purchased by King Philip IV of Spain in 1664 for his daughter’s dowry and passed down through the family.  It acquired the Wittelsbach name when the great grand daughter of King Philip married into Bavarian royalty, including the first king who incorporated the gem into his crown. 

The diamond sold double what it was originally appraised (an encouraging sign about the public’s continuing interest in the jewelry industry!).

View Original Article: http://njn.typepad.com/couture_blog/natural_color_diamonds/

Aurora Collection Dawns in London

By Gary Roskin, G.G, FGA

JCK – Jewelers Circular Keystone

3/1/08

The London Museum of Natural History’s new permanent gallery, The Vault, which opened in late November, brings together crystals, gems, rare metals, and meteorites. Alongside the museum’s permanent collection are loans from private collectors, including the Aurora Collection of fancy colored diamonds, on loan from diamond collectors Alan Bronstein and Harry Rodman.

The Aurora Collection is a world-class assortment of 296 naturally colored diamonds, weighing a total of 267.45 cts. For many years, it was on display at New York’s American Museum of Natural History.

“Gems like these were not meant to be imprisoned in a dark underground safe for the momentary pleasure of a few eyes,” says Bronstein. “The true value of a collection is sharing it with as many people who are interested, to experience nature’s diversity of expression. It’s thrilling to think that the collection will be seen by the 3.6 million visitors that come to the C each year.”“Each colored diamond tells its own story, giving us insight not only into its formation, but also to the deep earth processes that took place when the gem was formed,” writes Alan Hart, curator of minerals at the Natural History Museum. “For example, yellow diamonds are due to the presence of nitrogen in the structure, and green diamonds owe their color to natural radiation damage. It’s an amazing opportunity to be able to display this unique collection of exceptionally rare gems at the museum.”   Read Full Article >>

Product I.D.’s Likely Color Diamond Buyers

JCK-Jewelers Circular Keystone

2/13/2008

The Natural Color Diamond Association has launched a new program that it says will provide its members with qualified customers for natural color diamonds.

Called MarketScope, it is a partnership with The Nielsen Company, which provides marker research and demographic data. The program was unveiled during the recently concluded Centurion Show in Ticson, Ariz.

NCDIA says that being able to target most likely buyers of natural color diamonds and jewelry will allow retail members to boost their effectiveness of marketing and increase sales results. NCDIA supplier/manufacturers should benefit by being able to identify retailers that will most likely be successful selling natural color diamonds.

View Full Article: http://www.jckonline.com/article/CA6532124.html?q=ncdia

Argyle Pink Prices Skyrocket

By Gary Roskin, G.G., FGA

JCK-Jewelers Circular Keystone,

1/1/2008The 23rd annual Rio Tinto Diamonds Argyle Pink Diamond Tender held last September in Hong Kong, New York, and Perth, Australia, was, as usual, exciting and unpredictable. Sixty-five diamonds—64 saturated pinks and reds and one violet—were sold to 17 successful bidders at record-breaking prices.Making up the 65 special selections were 28 straight pinks, 28 purplish pinks, four purple pinks, four Fancy Purplish-Reds, and a 0.77 ct. shield-cut Fancy Dark Gray-Violet. Not many exceeded 1.50 cts., and clarities this year were notably lower, with three I₂s, and 19 I₁s.

Colored-diamond suppliers generally were overbid by retailers and collectors for the Fancy Intense, Vivid, and Deep pinks. The collectors, unconcerned with resale value at this point, were able to place bids high enough to guarantee a win.

View Full Article: http://www.jckonline.com/article/CA6516131.html

May to Head NCDIA

By Rob Bates — JCK-Jewelers Circular Keystone, 2/1/2008

Robert May has become the new executive director of the Natural Color Diamond Association, the industry group that promotes colored diamonds. He replaces Sam Merksamer, who resigned to pursue opportunities in the for-profit sector.May was previously the brand manager for Pluczenik Diamond Co. Prior to that, he spent 20 years with the Diamond Promotion Service at JWT.

“Robert May is uniquely positioned within the market to build our association, and the NCDIA board is looking forward to the leadership platform and programs that Robert is developing,” said Jordan Fine, NCDIA president.

View Full Article: http://www.jckonline.com/article/CA6528063.html

Pink Fantasy: Sophistication and Piece de Resistance for Gem Connoisseurs.

Solitaire Magazine

Story Joshua Lamothe

Regarded as the ultimate incarnation of youthfulness, femininity and love, pink is the most cherished colour of women across the globe and is often the staple blush in the wardrobes of many well-heeled socialites. It stands to reason therefore that natural fancy pink diamonds are among the most widely desired of all natural colour diamonds.

Encompassing a variety of hues, ranging from subtle shades of faint ‘baby’ pink, to more vivacious flavours of ‘bubblegum’ and ‘raspberry’ observed in intense and vivid pinks, pink diamonds embody an air of sophistication and beauty unmatched by any other gemstone. As an understated accent in a cocktail ring or diamond drop earrings, or as the opulent centrepiece of a statement-making ensemble such as a large pendant, natural colour pink diamonds can be the pièce de resistance for any woman wishing to define her personal style. Like the diamonds themselves, the existence of pink colouration within a diamond is unique. Distinct from their colourful counterparts, such as yellow and blue diamonds, which generally contain trace elements in addition to their primary carbon make-up, a pink diamond’s colour is caused by microscopic imperfections known as graining. This effect of pressure exerted on the diamond rough while deep within the earth.Pink diamonds, like all other natural colour diamonds, often contain additional hues known as secondary colour modifiers. These colours, such as purple, orange or brown, can alter the appearance of the diamond, widening the spectrum of available pink hues, and creating the warm shades of brownish and orangy pinks or the vibrant purplish pinks.Historically, pink diamonds have been unearthed in areas of Asia, Africa and South America and until recently were reserved for the elite. Today, the premier source of natural colour pink diamonds is the Argyle mine in northwestern Australia, which produces 90-95% of world supply. The Argyle mine is famous for generating the deep and vivid pinks that have recently become popular among collectors.

Each year Argyle holds an invitationonly auction known as the ‘Annual Pink Diamond Tender.’ Here, select diamond dealers are given the opportunity to view and place bids on the year’s top production, generating instant buzz and increased accessibility for the sophisticated consumer. For private investors discerning enough to obtain one of these gems, pricing can be gauged on a yearly basis, offering a rare opportunity to track their value over time.

Once selected only for the privileged few and always coveted for their extreme beauty and charm, the natural colour pink diamond has captivated hearts for centuries. While the fashion-savvy will enjoy the attention that comes with donning a miraculous gift of nature, the fiscally savvy will be delighted knowing that their investment in a natural pink diamond will flourish over time. Among those in the know, the lure is undeniable: natural pink diamonds are creating a true passion for pink. S

To read more about gems under this series, click here.

View Original Article: http://www.solitaire.com.sg/magazine/story5.html

IDI expands activities in Africa

National Jeweler

November 08, 2007

Tel Aviv, Israel—At a recent conference in Tel Aviv marking 50 years of economic cooperation between Israel and Africa, Israel Diamond Institute (IDI) Chairman and Israel Diamond Manufacturers Association (IDMA) President Moti Ganz said Africa holds the greatest economic opportunities today.

Ganz added that due to an increase of stable democratic regimes in Africa, there is now a greater call for beneficiation on the part of African countries, with a portion of the diamond-manufacturing process locating there. Israeli diamond manufacturers, recognizing the economic opportunity, are leading the creation of a local manufacturing industry, alongside the mining activities in producing countries, according to Ganz. He said that Israeli companies are establishing diamond-polishing plants in Africa, training workers and giving back to the community by supporting medical and educational programs.

Ganz also said that De Beers has brought a number of its sightholders, including Israeli companies, to Botswana, and has committed to manufacturing $500 million worth of polished diamonds there. The rest of Botswana’s $3.5 billion worth of rough production will be distributed throughout the global industry, with a portion being sold directly to Israel. This, Ganz said, will help to ensure a continuous supply of rough diamonds to the Israeli industry.

The Israeli diamond industry will hold the third International Rough Diamond Conference—aimed at strengthening the Israeli diamond industry’s ties with both producing countries and mining companies—from Feb. 11-12 in Tel Aviv. The conference is expected to bring a large number of leaders of African countries, as well as heads of international mining companies.

View Original Source: http://www.nationaljewelernetwork.com/njn/content_display/diamonds/e3i8e3ff55d4b8bbf24aec66a640da696d4

Report: Angola’s diamond resources do little to develop country

National Jeweler

October 31, 2007

Angola—In the last five years since Angola has been at peace from civil war, the country’s diamond production and gross revenue from diamond sales have nearly doubled, and the annual diamond contribution to government has more than tripled, according to the 2007 edition of Partnership Africa Canada’s (PAC) Angolan Diamond Industry Annual Review.

Specifically, diamond production has increased from five million carats in 2002 to close to 9.5 million carats in 2006, gross revenue from diamond sales has increased from $638 million in 2002 to $1.2 billion in 2006, and the annual diamond contribution to government has increased from $45 million in 2002 to $165 million in 2006.

This does not mean, however, that the Angolans are reaping the benefits, according to PAC’s report.

PAC’s annual review researchers traveled widely in the Angolan provinces of Lunda Norte and Lunda Sul discovering few schools, little treated drinking water, roads unrepaired since colonial days and little public investment geared to solving these problems.

“Nearly one million residents of Lunda Norte and Lunda Sul suffer disproportionately from the exploitation of Angola’s diamond resources,” the report reveals. “After all, the projects restrict their access from cropland, prohibit use of local rivers and, ultimately, can damage the local soil and water systems. In addition, their homes and fields can be moved because of a diamond-mining project.”

PAC’s report blames this, in part, on the Kimberley Process Certification Scheme (KPSC). The non-governmental organization says the KPSC—designed to prevent rough diamonds from being traded in diamond-fueled war areas such as Sierra Leone and Angola unless accompanied by a Kimberly Process Certificate stating that the diamonds are “clean”—is misguided and fails to criminalize garimpeiros (unlicensed diggers working with unsophisticated equipment in areas unsanctioned by the government). PAC states that this is due to a conflict of interest between the Endiama subsidiary Sodiam and the KPSC: Sodiam is a KPSC authority responsible for ensuring Angola’s diamonds are conflict-free, but since they are also the owner and exporter of these same diamonds, Sodiam’s interest is exporting as much as possible.

The report also says the Angolan government and Endiama in the Angolan diamond sector have chosen to give away large percentages of various joint-venture projects to political friends and insiders. The money they receive essentially robs Angola of funds that could be used for its development.

This is the third annual review of the Angolan diamond industry that PAC has produced with its partners. This study was researched and written by a team of PAC researchers, with the assistance of CEJPM, the Episcopal Commission for Justice, Peace and Migration, as well as Gremio ABC.

To view the report, visit PAC’s Web site, Pacweb.org.

View Original Source: http://www.nationaljewelernetwork.com/njn/content_display/diamonds/e3ib3de07b4b336a21b3b126948d902cfbb

Video Podcasts on Selling Color Diamonds

JCK-Jewelers Circular Keystone

11/05/2007

2:16:00 PM

The Natural Color Diamond Association has launched a new training program, “How to Sell Natural Color Diamonds.” Highlights of the program will be presented on www.ncdia.com through three video podcasts featuring Diane Warga-Arias of DWA Communications.

The three separate video podcast programs are:
• Podcast 1 “Introduction to Natural Color Diamonds.”
• Podcast 2 “Grading Considerations and Origin of Color.”
• Podcast 3 “Presenting Natural Color Diamonds to your Customer”

It is the first and only training program that deals exclusively with Natural Color Diamonds and is available in both print and CD format to NCDIA Members. The podcasts are the first in a series of events and programs the NCDIA has planned in 2008 to educate retailers and consumers on the benefits and beauty of natural color diamonds.

“We are so excited by the positive response and tremendous interest in natural color diamonds from all participants during this years seminars and presentations at trade shows,” Warga-Arias said.

The Natural Color Diamond Association is the leading authority on natural color diamonds. The organization is dedicated to growing the Natural Color Diamond market by educating and informing both business and consumers alike. The NCDIA has over 75 members and represents mining companies, diamond manufacturers, designers and retailers from around the world who are dedicated to expanding the market for the broad spectrum of natural color diamonds.

For more information about the NCDIA or about joining the NCDIA, go to www.ncdia.com or contact the NCDIA office in New York: info@ncdia.com 212-644-9747.

View Original Source: http://www.jckonline.com/article/CA6497623.html?industryid=668