idex magazine, december 2012

23IDEX MAGAZINE | NO 272

Contents

90 A YeAr In revIew 2012: It’s A reAl PAge turnerIt’s hard to believe, but another 12-month cycle has nearly been completed. As we head in to 2013, it’s time to take a look back at the past year to remember the highs, and the lows, of 2012.

92 BrAve new worldChange is inevitable, but it’s not always easy. Here’s a roundup of some of the events that changed the face of the diamond and jewelry industries in 2012. What changes lie ahead in 2013? Only time will tell….

98 sCooPWhen it came to the biggest stories in the diamond industry in 2012, generic diamond promotion, synthetics and strikes

were among the issues grabbing the headlines. What will be making the news next year?

104 HIred, FIred, retIredIt’s true that time stands still for no man – or woman. In the past 12 months, there have certainly been a lot of changes. Read on to see who’s in, and who’s out.

110 rememBerIngAs we do every year, we had to say goodbye to some valued and well-loved members of the industry.

114 tHe dIAmond As BIg As tHe rItzBigger, brighter, better – from record-breaking auctions, to large diamond finds, 2012 was a year that saw some diamond items worth a whole book of their own.

F i l e O F T h e M O n T h :

A YeAr In revIew 2012: It’s A reAl PAge turner

29 EDITOR by Danielle Max

32 MARKET SNAPSHOT: A quick glance at the events of the past month

37 MEMO

41 RETAIL ET CETERA41 Product Layout: The latest watch trends

50 RETAIL BYTESNRF: 22.5% of shoppers plan to buy jewelry this holiday season - Ooh la la, Tiffany to open Paris flagship store - Inhorgenta to add lifestyle brands - Russian import barriers may linger - Gitanjali H1 sales +32% to $1.3 billion, profit +18% to $55 million - LVMH jewelry business revenue +7% in first nine months of 2012 - JCK Events holds inaugural Luxury Privé Panama show - Pandora’s net profit up 11.4% - UBM Asia launches Taiwan jewelry fair

58 IDEX ONLINE RESEARCH: Ken Gassman explains why surging metal prices are spawning inflationary jewelry prices

62 TREND REPORT: Jewelers of America identifies some splendid spring trends

64 FACETSAvi Paz awarded Belgian Order of the Crown - Shaq Attack! Zale and Shaquille O’Neal release men’s jewelry collection - RJC reaches 400 member mark - Victoria’s Secret 2012 Fantasy Bra valued at $2.25 million

69 POLISHED Dismissed: Controversial Antwerp diamond prosecutor Van Calster relived of duties - In his element: De Beers CEO is new Element Six Chairman - Chow Tai Fook and Alrosa sign long-term rough supply agreement - Shrenuj & Co. sales up 7.4% to $151 million - Botswana reports record September diamond exports - White 22+ carat diamond sold at Rio Tinto’s Specials Tender - Royal diamond achieves record-breaking $21.5 million

74 CAN WE DISCOUNT COLOR SATURATION AS A PRICE INDICATOR? By Guy Borenstein FGA EGG and Menahem Sevdermish FGA D.Litt

78 POLISHED DIAMOND PRICES

THE IDEX DIAMOND REPORT

85 IDEX ONLINE MONTHLY MARKET REPORT

121 MININGPetra Q1 2013 revenue +188% - Sold! Ekati mine bought by Harry Winston - Gem Diamonds reports Q3 double-digit price declines - Stornoway receives 20-year mining lease for Renard Project - Rio Tinto diamond production up, but gold down

128 PROFILEGary S. Gordon, CEO, Samuel Gordon Jewelers

130 ADVERTISERS’ LIST

24 IDEX MAGAZINE | NO 272

DECEMBERMONTHLY DEPARTMENTS

IDEX ONLINE THE ONLY GLOBAL, REAL-TIME, NEUTRAL DIAMOND MARKETPLACE. GO TO WWW.IDEXONLINE.COM FOR DIAMOND TRADING

AND PRICES, JEWELRY SHOWROOMS, UP-TO-DATE NEWS, ANALYSIS AND INDUSTRY DISCUSSIONS.

CONTENTS

w w w . i d e x o n l i n e . c o m

D E C E M B E R 2 0 1 2VOL. 27 No. 272

EDITORIAL DEPARTMENTEDITOR-IN-CHIEF Danielle Max

IDEX ONLINE RESEARCH Ken GassmanINDIA DESK EDITOR Vinod KuriyanINTERNATIONAL CORRESPONDENTS

Tamar Katzav, Edahn Golan COPY EDITOR Robin Miller

ART DEPARTMENTGRAPHIC DESIGNERS

Boris Mandelis (RD Media group) Tera Kaur (RD Media group)

PRINTING Meiri

MARKETING DEPARTMENTSALES ADVERTISING MANAGERS Anish Kuriakose, Avivit Morhaim,

Osnat Davidov, Yaron Barzilay PRODUCTION & CIRCULATION Helena Dorsht, Yulia Katsovich

ACCOUNT MANAGER Rinat Oz

Founding Editor and Publisher of Mazal U’Bracha: Chaim Even-Zohar

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IDEX Magazine is published in Israel by Idex Online S.A. and incorporates Mazal U’Bracha Diamonds Magazine. Reprints of individual articles are obtainable on application to the editor. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or

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[email protected] MAGAZINE | NO 272

magazineI N C O R P O R A T I N G M A Z A L U ' B R A C H A

BY DANIELLE MAX

EDITOR

29IDEX MAGAZINE | NO 272: EDITOR

’ve been all across the American prairies care of the Little House on the Prairie series; I’ve fallen in love many

times over with handsome Gilbert Blythe in the Anne of Green Gables set of books. I’ve been The Time Traveler’s Wife and I’ve even learned what it means to be a nun thanks to one of my favorite books – The Nun’s Story.

Pretty much any and every situation in life can be found in the pages of literary works, which is why our annual review of the year has a bookish theme to it. The authors of our great modern classics knew how to pack a powerful punch with their titles, which I’ve sort of borrowed...

I hope you like this playful look back on the 12 months that have just passed and that you enjoy remembering some of the biggest stories of the year.

For me, personally, it has been a wonderful year and one that I am not sure 2013 will be able to top. Regular readers

of this column know that I got married almost six months ago, ensuring that 2012 will always stick out in my mind as a very, very good year indeed.

I don’t know that I would recommend that everyone attend JCK the week before they get married, but for me, it worked out very well, and it was fun shocking people with the fact that I was getting hitched so soon after the show ended. I have to admit, though, I am already looking forward to attending 2013’s edition of the show with slightly less on my mind….

From an industry perspective, this has been a year with quite a number of changes – many of them will have repercussions that we have yet to fully understand. From the official departure of the Oppenheimers from the diamond business, the news that De Beers would be undergoing what could be radical restructuring, BHP Billiton’s sale of the Ekati diamond mine to Harry Winston Diamonds and

I’ve always been able to lose myself in a good book – and sometimes, even in a not so good book. I love the way that a book can whisk me away from my day-to-day life and take me off to faraway times and places.

A GOOD STORY

EDITOREDITOR

I

30 IDEX MAGAZINE | NO 272: EDITOR

EDITOR

its own exit from the diamond industry – 2012 has certainly had enough fodder to fill a number of volumes. No doubt there will be some very interesting sequels in 2013.

Sadly, the year has also had its ups and downs. There are still worries about the financial situation. Although people seem to be spending their money a little more freely, concerns remain that a double-dip recession could be in the offing.

There was also massive destruction on the East Coast

and other parts of the United States from the devastating power of Hurricane Sandy. Many businesses were affected by the storm, either through firsthand damage or through the effect of the loss of power and water that followed.

While it is impossible to see what the future will hold, we hope that 2013 is a year of peace and prosperity. May the stories written next year be happy and joyful.

Happy Holidays to you all from IDEX Online! IDEX

32 IDEX MAGAZINE | NO 272: MARKET SNAPSHOT

the month In reVIewWhile a tough economic situation that keeps dragging on is something consumers will eventually get used to, wary jewelry retailers have refrained from investing in an expensive inventory of gold and diamonds. Instead, they have been waiting to see how many customers enter the door and how much they will spend. The caution evident at the retail end of the chain has echoed up the diamond pipeline, where the prices of rough and polished remain subdued,

and where manufacturing is taking place at a measured pace.

MARKET SNAPSHOT

BY EDAHN GOLAN

JEWELRY INDEX

Diamonds Gold Platinum SilverIndex of dIamond & PrecIouS metalS PrIceSDecember 2009 - November 2012 by Month

350

300

250

200

150

100

50

2011 2012D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N

2010

Source: IDEX Online & KitcoJanuary 2007 = 100

JEWELRY After a few slow months, U.S. retail and supplier jewelry prices surged in September, primarily because of sharply higher commodity prices for precious metals, according to IDEX Online’s Ken Gassman.

During September, gold prices rose by more than 7 percent

compared to August, while silver and platinum posted double-digit increases during the month. Diamonds were about the only major jewelry commodity that did not see any prices increases during September. This trend continued into October.

The question that must be asked is will the surge in prices steer consumers away from jewelry, and if so, by how much?

IDEX MAGAZINE | NO 272: MARKET SNAPSHOT 33IDEX MAGAZINE | NO 272: MARKET SNAPSHOT

The uncertain economic sentiment is probably what will determine the answer to this question.

If the summer figures serve as an indicator, then the outlook is lukewarm at best. In August, the latest month for which numbers are currently available, total jewelry sales at all U.S. retail merchants rose by 3.8 percent; reflecting a slowdown in consumer demand.

Specialty jewelers’ sales have barely edged up from last year, rising 0.2 percent, based on U.S. Commerce Department data.

PerformanceRetail jewelry prices in the U.S. market increased 1.5 percent in September versus August. Year-over-year retail jewelry prices increased 2.8 percent

Wholesale jewelry prices increased 1.9 percent on a month-over-month comparison basis. Year-over-year, wholesale prices increased 3.3 percent.

outlookGassman’s outlook for jewelry price inflation remains unchanged: jewelry prices are expected to rise modestly at all levels of the distribution channel throughout 2012.

The Jewelry Share – U.S. Index tracks the following publicly traded jewelry companies: Blue Nile [NILE], Charles & Colvard [CTHR], Movado Group [MOV], Signet Jewelers Limited [SIG]Tiffany & Co. [TIF], Zale Corporation [ZLC]

14000130001200011000100009000

2 0 1 2

Nov 14, 2011 - Nov 11, 2012 +3715.09 (37.15%)u.S. Jewelry Share Index

The Jewelry Share – U.S. Index tracks the following publicly traded jewelry companies: Bulgari [BUL], Damiani [DMN], LVMH [LVMH], PPR [PP], Richemont SA [CFR], Theo Fennell [TFL]

10000

9500

9000

8500

2 0 1 2

Nov 14, 2011 - Nov 12, 2012 -451.93 (-4.52%)euroPe Jewelry Share Index

The Jewelry Share – U.S. Index tracks the following publicly traded jewelry companies: Classic Diamond [BOM:523200], Gitanjali Gems [BOM:532715], Goldiam International [BOM:526729], Rajesh Exports [BOM:531500], Su-Raj Diamonds [BOM:507892], Suashish Diamonds [BOM:526733]

10000

9000

8000

7000

2 0 1 2

Nov 14, 2011 - Nov 12, 2012 +123405 (14.81%)IndIa Jewelry Share

The Jewelry Share – U.S. Index tracks the following publicly traded jewelry companies: African Diamonds, Anglo American [LON:AAL], BHP Billiton [NYSE:BHP], Firestone Diamonds [LON:FDI], Gem Diamonds [LON:GEMD], Harry Winston [NYSE:HWD], Petra Diamonds [LON:PDL], Rio Tinto plc [NYSE:RIO], Rockwell Diamonds [TSE:RDI]

11000

10000

9000

8000

2 0 1 2

Nov 14, 2011 - Nov 12, 2012 -2176.69 (-21.77%)mInInG Jewelry Share

It goes without saying that consumers are increasingly going online via their mobile phones. These phones are sophisticated communication tools that allow knowledge gathering, price comparison and shopping. It is also clear that in most markets free shipping helps seal the deal, even if it is clear that in most markets free shipping helps seal the deal – even though it is clear that the cost of shipping is factored in the final price.

Trying to increase sales? Offer a way for customers to see your goods online, and add free shipping.

34 IDEX MAGAZINE | NO 272: MARKET SNAPSHOT

COLOR – when diamond wholesalers speak of “color diamonds,” they are not necessarily talking about fancy color diamonds. Usually they are referring to diamonds with a very faint tint of color –

typically brown or yellow. This has given birth to the terms TLB (Top Light Brown) and TLC (Top Light Cape – not to be confused with tender loving care).

Top Light (Brown or Cape) loosely corresponds to J or K color. TTLB and TTLC – Top Top Light Brown/Cape – are diamonds with an even fainter brown or yellow tint – I color or a better J color diamond.

Downtown Orange, California, December 1937 Photo Courtesy Orange County Archives

There is nothing like a large and well-lit tree to mark the upcoming Christmas holiday. Some cities celebrate turning on the lights of a tree to mark the start of the holiday season. IDEX Online wishes all our readers a successful and happy holiday season!

IDEX MAGAZINE | NO 272: MARKET SNAPSHOT 35

POLISHED PRICESPolished diamond prices softened in October, according to the IDEX Online Polished Price Index. Overall, average prices declined 0.8 percent during the month compared to September.

Year-over-year, prices in October declined 5.7 percent. Although this was a drop the rate at which diamond prices are falling continues to decelerate.

wInnerS and loSerSPrices of round cut diamonds declined in October. Round cut 1 carat diamonds lost 1.2 percent of their price compared to September, and 10.3 percent year-over-year.

The relatively volatile 5 carat rounds declined 5.3 percent in October compared to September. In comparison to October 2011, the decline was more moderate at 5.5 percent.

Fancy cut diamonds continue to fare better than rounds. Average prices of 1 carat Princess cut diamonds softened by 0.3 percent month-over-month, but soared 14.7 percent year-over-year.

our outlookThe diamond jewelry-buying season started slowly. At the time of writing, the IDEX Online price index was heading up, indicating overall growing demand and rising prices.

ROUGH DIAMONDSDemand for rough diamonds is steady and prices are largely stable, although market supply is relatively small for the time of year. Alrosa brought down prices of smaller color goods following a period during which the market refused to buy these goods due to the company’s high prices.

The product

is an expression of Mr. O’Neal’s

fun-loving personality and his

unique sense of style.

- Zale CEO Theo Killion on theintroduction of Shaquille O’Neal's jewelry line

After a time of stunted polishing activities, manufacturers are picking up the pace and increasing their rough diamond purchases. The combination of lower than usual polished diamond demand and the narrow margin between rough cost and polished prices is cutting out many rough diamond traders who cannot add a premium to the price of rough.

outlookThe stabilization of rough diamond prices at a lower price level has allowed manufacturers to start working. Polishing is expected to be in-line with demand from the main markets of the U.S., China and India. This demand will also determine, as it should, demand for rough. The uncertain global economy is expected to discourage manufacturers from building a large rough diamond inventory, which will curb price acceleration.

IDEX ONLINE POLISHED DIAMOND PRICE INDEX

2010 2011 2012

150

140

130

120

110

100

PEAK July 2011146.7

D J F M A M J J A S O N D J F M A M J J A S O N

Nov 2012132.3

2012 YTDAvg 137.1

2011 Avg 135.8

2010Avg 116.0

Here is a slogan for our campaign: “Spread the Love.” Spread the love because it helps others, and if you say "Spread the Love," consumers will get the message – diamonds are ethical and do good. And when you do good, you are good.

37IDEX MAGAZINE | NO 272: MEMO

wo diamond and jewelry industry initiatives made headlines recently. One was the introduction of the

Diamond Source Protocol; the other was a call for generic marketing; two issues that are in fact intertwined.

When the people involved in these efforts are asked if they believe that consumers really think diamonds are mined or processed unethically, the same answer is usually given: “This is not in response to demand from consumers. We want to act before there is an outcry.”

This is fair enough, but what are the issues that require new measures? We all know that the Kimberley Process is clunky and slow, but no one is saying that it is not living up to its remit of preventing the export of rough diamonds from rebel-held areas.

T

SPREAD THE LOVE

MEMO

So what are the ethical issues that need preventative medicine? What crimes need to be unearthed and expunged? Certainly none have actually been mentioned. The only concern cited is possible U.S. government action against the diamond industry.

I’m not steadfastly against the initiatives suggested by U.S. retail organizations, RJC or anyone else seeking to improve the ethical standing of polished diamonds, although some believe I am. Consumer-centric initiatives are important, as is the behavior of the diamond industry at large.

The calls for preventative measures angered attendees of the Mumbai World Diamond Conference because of what they imply – that members of the mid-section of the

BY EDAHN GOLAN

provide education, food and medical care in Sierra Leone, infrastructure and HIV programs in Botswana and work and training in Canada’s remote Yellowknife. They pay for water purification systems in Zimbabwe, and they do good in many ways and in many places.

When a consumer buys diamonds, that person is saying “love” to a close one, but they are also doing good far away.

Here is a slogan for our campaign: “Spread the Love.” Spread the love because it helps others, and if you say “Spread the Love,” consumers will get the message – diamonds are ethical and do good. And when you do good, you are good. In the words of John Lennon, “The love you get is equal to the love you give.”

Spread the Love! IDEX

38

MEMO

IDEX MAGAZINE | NO 272: MEMO

diamond pipeline – manufacturers and wholesalers – are unethical. This assertion is preposterous and is why they are upset.

In fact, the single issue at hand has to do with a single source: diamonds from Zimbabwe. Singling out Zimbabwe failed when review missions found that the way diamonds are now mined in the country meets the highest oversight standards around.

The initiators of the Protocol are concerned that unethical activities may hurt business. This is a valid point, and one that needs to be addressed, which is where the call for generic marketing comes in.

To t ake j u s t one example, after De Beers ended i ts diamond promotion campaign in Japan, diamond jewelry purchases started to decl ine. There has also been a slowdown in growth in the U.S. since the “A Diamond Is Forever”promotion was nixed.

Clearly something needs to be done, and the combination of the two problems – the perception of diamonds and their promotion – is called for. The industry needs a game plan, a blueprint for promoting diamonds, while showing the great benefits diamonds bring to some of the poorest regions in the world.

When buying diamond jewelry, consumers do much more than just celebrate love and life’s special occasions. They

IDEX MAGAZINE | NO 272: RETAIL ET CETERA 41

retail et cetera

Harry Winston has released two diamond-encrusted versions of its Premier Ladies range: the Premier Ladies Baguette-Cut Diamonds (left) and the Premier Ladies Brilliant-Cut Diamonds (right). The Premier Ladies Baguette-Cut Diamonds combines 156 diamonds in a unique sunray pattern dial with a total carat weight of 26.29 carats. The Premier Ladies Brilliant-Cut Diamonds boasts a snow-set dial embedded with 374 diamonds with a total carat weight of 9.95 carats. Both watches are set in an 18 karat white gold case encrusted with diamonds.

WATCHes BY HArrY WinsTon

tell me tHe time Harry winSton

The Uniformity collection by Blacksand has never been so resolutely feminine. The two overlapping lugs are adorned with 284 Wesselton diamonds, totaling 3.4 carats. The watch is water resistant to 100 meters and has an interchangeable strap of either black alligator or high-tech rubber for something a little different.

WATCH BY BlACksAnd

Uniformly BeaUtifUl

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The Historiador Retrogrado from Cuervo y Sobrinos may be Swiss-made but it’s Latin through and through. The pink gold-plated case houses an automatic movement while the traditional “Clous de Paris” decoration of the dial makes an elegant counterpoint to the blued “Breguet” style hands.

WATCH BY Cuervo Y soBrinos

SwiSS-latin fUSion

The Oculus V.01 Hypnosis from Valbray is made of titanium grade 5 with a black DLC coating, finely sanded and with polished chamfers. At twilight, the watch transforms itself: the hours and minutes hands as well as the hours’ index on the flange and the base of the dial, take on a hypnotic glow. This watch evokes the middle of the night and its unforgettable moments.

WATCH BY vAlBrAY

Hypnotic


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Speed devil

WATCH BY Armin sTrom

The Armin Racing Carbon from Armin Strom merges various identities through a blend of sophisticated mechanics, peerless precision and innovative design, with an emphasis on performance. The visible crown wheels and the hand-adjustment mechanism – the main features of the three-part dial – give it a resolutely sporty and virile style. The watch is limited to just 50 pieces for lovers of time and speed.

ace ventUra

WATCH BY venTurA

The multifunctional SPARC MGS from Ventura, contains two separate operating systems. While the mechanical Micro-Generator-Sytem (MGS®) transforms wrist-movements into electric energy to power the digital time-module, the ingenious EasySkroll® system governs the multiple functions, such as the 100-year perpetual calendar, the dual time zones, alarm, countdown or chronograph, in a most intuitive way by a single scroller.


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The Khaki Navy Pioneer Edition Limitée from Hamilton can be worn either as a watch or enjoyed as a desk clock when set in its hardwood presentation box. Celebrating 120 years of time measurement, nostalgia is evident in the watch’s design, from the blued hands, the velvety finish of the silver-colored dial, or the top-stitched brown leather strap. A timepiece whose dual function makes the transition from past to present with intelligence and ease, it is available in a limited edition run of 1,892 pieces in reference to Hamilton's founding year.

WATCH BY HAmilTon

dUal time

The Hercules collection embraces Swiss tradition and innovation to capture the essence of Reconvilier and its century-long existence. The case, dial, hourmarkers, hands and straps lend themselves to a multitude of colors, materials and, most importantly, taste, to create a made-to-measure watch. Unmistakably modern or vintage-style, time reinvents itself in steel, pink gold or white gold with accents in silver, gold or blue tones to faithfully reflect its wearer’s personality.

WATCHes BY reConvilier

made to meaSUre


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Ernest Borel expands its range with a new collection of chronographs. The twin tones of the generous 41 mm case and the 18 karat pink-gold plated bezel, set with diamonds, embody the Swiss firm’s signature style. Chrono Collection is a natural continuation of the company’s expertise.

WATCH BY ernesT Borel

SiGnatUre Style

flyinG HiGH

WATCH BY oris

From August 12-28, 1932, Berlin throbbed to the distinctive sounds of aircraft taking part in a daunting race, the International Tourist Plane Challenge. Oris pays tribute to this legendary event by offering the Oris Challenge International de Tourisme 1932. The run is limited to 1,923 pieces.

nrF: 22.5% of shoppers plan To BUy Jewelry This holiday season

he holidays may be almost upon us, but there’s still plenty of time for shoppers to get out their wallets.

With plans to spend slightly more on gifts this year than last, some 22.5 percent of shoppers intend to make jewelry purchases. This is the highest percentage since the pre-crisis 2007 holiday season, according to the National Retail Federation’s (NRF) holiday consumer spending survey conducted by BIGinsight. Jewelers take note, when it comes to making purchases this season; fewer people are opting to take the goods on credit. The survey found shoppers prefer to use money they already have or have saved up to purchase holiday gifts to building debt – a factor that may decrease the number of those who will buy jewelry. Forty-three percent said they would rely on debit cards as their primary form of payment. An additional 25.2 percent will use cash and 2.8 percent will pay by check. Only about three in 10 shoppers (28.7 percent) will charge their gifts. Once again, the Internet is playing an increasingly strong role in the consumer shopping process. According to the NRF survey, 47.3 percent of consumers said they would look for holiday gift ideas online, with 45.2 percent of

T respondents saying they would visit the stores for their gift inspiration. Other popular sources for gift ideas include advertising circulars (36.2 percent), television (35.4 percent) and friends and family (40.4 percent ). Proving they are still seen as a value to shoppers, more than one-third (34.1 percent) of consumers said they would seek ideas from catalogs. Additionally, 13.3 percent were heading to Facebook and 5.8 percent were planning on using Pinterest to gain gift inspiration. The most popular gift choice according to the survey, is clothing and clothing accessories, with nearly six in 10 (59.7 percent) saying they would splurge on fashion and apparel items and other accessories. About the same percentage of people (59.2 percent) said they would be buying gift cards, which happen to be the most requested gift item. Other popular items include toys (45.1 percent), CDs, DVDs, videos and video games (51.5 percent), electronics (31.7 percent), personal care or beauty items (24.4 percent) and food and candy (32.6 percent). IDEX


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OOh La La, Tiffany To open paris flagship sTore

iffany & Co. has announced plans to open a flagship store in

Paris. The approximately 976-square-meter (~10,000 square feet) multi-level store will be located on the prestigious Avenue des Champs Elysées and is expected to open in 2014. The luxury retailer already has three smaller stores in Paris but says that opening a Champs Elysées boutique is “the ultimate symbol of Tiffany as a truly global luxury brand.” Tiffany’s connection with Paris dates back to 1850 when it established its first store in the French capital. IDEX

T

InhOrgEnTa To add lifesTyle Brands

rade show Inhorgenta Munich is repositioning itself with the addition of “lifestyle” brands alongside its

jewelry and watch offerings. Organizers hope to enhance the show’s profile as an international marketplace for mid- to high-price luxury jewelry, timepiece and lifestyle brands. The new approach is being implemented with segmentation of the exhibition halls, something that was already initiated last year and that will include changes to Hall C2, Contemporary Design. The design changes will integrate the lifestyle and fashion-oriented jewelry and timepiece brands in a more pronounced manner. “We would like to position Inhorgenta Munich in the long

T term as a platform for trends in the mid- to high-price segment,” said Klaus Dittrich, chairman and CEO of Messe München. According to the show organizers, the trade show will be “emotionalized” through content, events and design measures, and the areas of lifestyle and trends will have a greater focus. The rich content events will include a number of presentations and workshops. On Saturday, February 23, IDEX Online’s Editor-in-Chief Edahn Golan will be giving a presentation. The jubilee edition of the show will be held February 22-25, 2013. IDEX

VisiT WWW.IDEXONLINE.COM

for liVe UpdaTes

A Rendering of the Proposed Paris Flagship Store

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russIa ImpOrT BarrIErs may LIngEr

ussia’s entry into the World Trade Organization does not automatically mean that the country’s high tariff

barriers for gems and jewelry imports will be reduced in the near future. Alex Popov, president of the Moscow Diamond Bourse, said that while the bourse had been strongly lobbying the government for either the abolition or at least a reduction in customs duty, the actual reduction could even take many years.

r Explaining that diamonds and jewelry are a low-priority subject with the Russian government, Popov said at the second Indo-Russian jewelry summit in Mumbai that the value of the country’s entire annual production of diamonds amounted to just 1 percent of its oil production or 10 days of natural gas production. Russia’s jewelry consumption is, however, steadily growing and some 20,000 jewelry retail outlets currently employ about 150,000 people and generate an estimated $16 billion in turnover. Jewelry retail is not, however, evenly distributed through Russia. Moscow accounts for some 30 percent of the country’s jewelry stores and St. Petersburg for 10 percent, while Russia’s remaining 82 regions – with a population of 130 million people – comprise the remaining 60 percent. Some 3,200 of Russia’s 4,500 jewelry manufacturers are individual workshops, according to Popov. All told, jewelry manufacturing currently employs some 25,000 people. Despite this, most of state-controlled miner Alrosa’s output is exported, with very little reaching the domestic market. What little diamond manufacturing there is tends to be in specific sizes, limited in scope and unsuitable for domestic jewelry manufacture, Popov claimed. IDEX

gITanjaLI h1 sales +32% To $1.3 Billion, profiT +18% To $55 Million

he Gitanjali Group announced sales of Rs.70.3 billion ($1.34 billion) for the six months ended September

30. This was a 32-percent increase over the corresponding period in 2011. Profit after tax for the period was up 18 percent to Rs.3 billion ($55 million). Jewelry sales for the six-month period were up 48 percent to Rs.42.8 billion ($781.1 million). The company said it had balanced its portfolios of diamond

T and gold jewelry as well as its domestic and international business. Commenting on the performance, Gitanjali chairman and managing director Mehul Choksi said, “Stable gold prices have driven volumes during the [third] quarter in India. With the upcoming Diwali and marriage seasons, we are expecting better sales. We have also been working on re‐aligning our business to unlock value for stakeholders.” IDEX

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LVmh Jewelry BUsiness reVenUe +7% in firsT nine MonThs of 2012

jCK EVEnTs holds inaUgUral lUXUry priVé panaMa show

eading luxury goods group LVMH recorded revenue growth of 7 percent in the first nine months of 2012

for its Watches & Jewelry group. After taking into account the consolidation of Bulgari, as of 30 June 2011, and a positive currency impact, the company’s organic revenue grew by 10 percent.

The group as a whole recorded revenue of €19.9 billion ($25.8 billion) for the first nine months of 2012, an increase of 22 percent over the comparable period in 2011. The company saw a 15-percent rise in revenue for the third quarter. Organic revenue growth of 6 percent in the quarter was “a solid result in the current economic environment, particularly when compared to the strong performance in the same period of 2011.” The U.S. market continued to demonstrate momentum. In spite of a challenging economic environment, Europe and Asia also contributed to the third quarter performance.

ore than 50 exhibitors took part in the inaugural LUXURY Privé Panama show in Panama City

recently. Retailers from 23 countries, representing 380 stores, attended the three-day event. “Our goal with Panama was to provide an atmosphere of business match-making and networking; an opportunity to bring the best manufacturers and the leading retailers from the Latin, South and Central American markets to establish solid relationships in which to do business in an area of the world that is just on the cusp of extreme growth,” said Yancy Weinrich from JCK Events. The show program included daily networking events

L

m

LVMH said the launches of TAG Heuer’s new Link Lady and Zenith’s Pilot range were among the highlights of the quarter. In jewelry, the success of Bulgari’s Serpenti and B.Zero1 collections was confirmed as the brand pursued a very selective distribution strategy. The company also said that Chaumet and Fred delivered good performances in their own boutiques. Looking ahead, LVMH said that despite the background of an economic slowdown in Europe, it remains confident in its outlook for 2012.

“The group will continue to pursue its proactive strategy centered on innovation and targeted geographic expansion in the most promising markets.”

The company added that it would rely on the power of its brands and the talent of its teams to further extend its global leadership position in luxury products. IDEX

designed to encourage new introductions. According to the show organizers, participants found the format especially conducive to making connections. “We didn’t come here to sell. We came here to make strong relationships from which sales will result,” said Fabrizio Cocchiano, of John Hardy. “We met a lot of new retailers, many of whom we know we will have a long-term relationship with. This show was a good stepping stone for future business, and we look forward to returning to next year’s show.” The next edition of LUXURY Privé Panama will take place from October 21-23, 2013. IDEX

WhAt IS gOINg FuLL SPEED AhEAD? Ken gassman answers this and many other riddles at: www.idexonline.com/portal_fullidexresearch.asp?id=37325

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panDOra’s Q3 nET prOFIT up 11.4%

he third quarter of the year saw better results for Pandora. The international jewelry company, which

specializes in glass beads, saw an overall group revenue of DKK 1.79 billion ($306 million), up 14.3 percent over Q3 2011. Net profit was also up, increasing 11.4 percent to DKK 380 million ($65.2 million) in Q3, compared to DKK 341 million ($58.5 million) in 2011. With revenue in the Americas increasing by 21.9 percent (9.5 percent in local currency) and European revenue rising by 13.1 percent (11 percent in local currency), the only dark spot on the return sheet was the Asia Pacific region, which saw revenues dropping 10.7 percent (17.3 percent in local currency).

T CEO Björn Gulden said the company was performing in-line with its “18 month turn-around plan” and that the third quarter had developed a little better than expected, which led to slightly upgraded revenue guidance. “The year is not yet finished. We have our most important quarter to come, but we feel confident that our improved product, our lower prices and our other operational improvements will put us in the position of achieving our updated financial goals for the full year,” he added. Looking ahead, the company is feeling more confident than in the past. It now expects revenue for 2012 to exceed DKK 6.3 billion ($1.08 billion), up from the above DKK 6 billion ($1.03 billion) previously predicted. IDEX

uBm asIa LaunChEs TaIWan jEWELry FaIr

s testament to the increasing importance of the Far East,

another show is joining the region’s already busy trade fair calendar with the launch of the UBM Asia Taiwan Jewellery & Gem Fair. The inaugural show will be held in Taipei on November 15-18, 2013, just ahead of the busy holiday jewelry-buying season.Show organizers say the aim of the fair is to provide an opportunity for international jewelry suppliers to meet with local buyers, as well as to

a serve as a platform for the domestic jewelry industry to do business. With the upsurge in tourism from Mainland China, Taiwan is increasingly seeing demand for its coral and jadeite jewelry, as well as rising demand for loose stones, mountings and materials. The show will be held at the Taipei World Trade Center. IDEX

Jewelry by Pandora


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Blush, pink and rosé are all words that describe the pink colors that are H-O-T in jewelry and fashion for spring. Rose gold and rose tone metals are romantic and flatter every skin tone. With new metals being marketed all the time, there is the perfect rose-tone metal for every style and every budget.

Pink will not just be for metals this spring. Pink gemstones – light pink gemstones in particular – are soft and romantic. Pink gemstones, both translucent or opaque, offer a wide range of choice. With stones such as rose quartz, pink diamonds, pink sapphires, pink mother of pearl, pink pearls and pink tourmaline, there is something for everyone.

pring, the season of renewal and beauty, should be the

jewelry industry’s time to focus on building new collections, promoting fresh designs and remerchandising stores and websites with jewelry that will make women run into stores to update their wardrobes. Thankfully, the hottest trends for the season are marketable, wearable and covetable. Here are a few of the breakout trends:

MAKE ME BLUSHFrom fashion to bridal, jewelry to watches, everything will be rosy this spring. Pardon the pun, but we are tickled pink by two of the hottest upcoming trends in jewelry – rose tone metals and pink gemstones.

SPLENDID SPRINGJEWELERS OF AMERICA IDENTIFIES THE HOTTEST JEWELRY TRENDS FOR SPRING

BY AMANDA GIZZI

SPLENDID SPRING

Trend Report

S

Pancis Gems Rose Silver Earrings

63IDEX MAGAZINE | NO 272: RETAIL ET CETERA

Jewelers of America (JA) is the national trade association for businesses serving the fine jewelry retail marketplace, with the primary purpose of improving consumer conf idence in the jewelry industry. JA’s consumer education arm, Jewelry Information Center (JIC), has provided public relations and marketing services on behalf of the fine jewelry and watch industry since 1946. JIC’s website, www.JIC.org, is the online source for fine jewelry and watch information, trends and shopping tips. Visit www.jewelers.org and www.JIC.org for more information.

PERFECT CONTRASTSometimes trends are as simple as black and white, which is one of the hottest trends for spring 2013. Like yin and yang, black and white’s perfect contrasts come together for a bold, striking look that is in perfect harmony for the season.

Black and white clothing was omnipresent at the spring 2013 fashion shows and with so much black and white being seen in clothing, footwear, accessories and jewelry, black and white is clearly a trend worth investing in.

For jewelry, black and white works with diamonds, gemstones or metals. Brides are also taking to the black trend, opting for black diamond engagement rings and black-accented gowns.

COLOR BLOCKINGColor blocking – graphic blocks of bold colors paired together – is a trend that will not die, and cannot be ignored! Flip through any magazine and models wearing color blocked clothing fills the pages. The look is not just for fashion as color blocked jewelry will be a hot jewelry trend in the seasons ahead.

This look can be achieved with one

piece of jewelry that has multiple blocks of color or by pairing multiple pieces that have bold color combinations. Color blocking also continues to evolve.

As we head into spring, the hard lines and blocks of color are softening and shapes are becoming more fluid. The evolution of color blocking makes the trend even more achievable for jewelry as the softer lines allow the jewelry to remain feminine.

Highlight the trend in showcases by pairing the following: complementary colors, colors directly across from each other on the color wheel; analogous colors, any three colors next to each other on the color wheel or colors that form 90 degree angles with each other. IDEX

Carelle Orange Leaf Pendant

Rotenier Sterling Silver Swirl Caps With Six Strands Of White Topaz And Black Rhodium

Jelwery by Vicente Agor


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Facets

aVI PaZawaRded BelGian ORdeR OF the CROwn

King Leopold II established the Order of the Crown in his capacity as ruler of the Congo Free State in 1897. In 1908, it was made a national decoration of Belgium and is awarded for services rendered to the Belgian state, especially for meritorious service in public employment. The Order of the Crown is also awarded for distinguished artistic, literary or scientific achievements, or for commercial or industrial services in Belgium or Africa. IDEX

vi Paz, the honorary president of the World Federation of Diamond Bourses and the Israel

Diamond Exchange, recently received the prestigious Belgian Order of the Crown, the “Ordre de la Couronne.”

Belgium’s Ambassador to Israel Bénédicte Frankinet bestowed the honor on Avi Paz on behalf of King Albert II at a ceremony held at the ambassador’s residence.

a

Shaq attackZale and Shaquille O’neal ReleaSe Men’S JewelRy COlleCtiOn

J

!

ewelry may be a long way from slam dunks, but that hasn’t

stopped legendary NBA player Shaquille O’Neal from pairing up with Zale Corporation to introduce a line of men’s jewelry. The branded accessories collection includes pendants, rings and bracelets and will be offered in select Zale stores throughout the U.S., Canada and Puerto Rico, as well as online. “We are delighted to partner with Shaquille on this exclusive men’s jewelry line,” said Zale CEO Theo Killion. “The product is an expression of Mr. O’Neal’s fun-loving personality and his unique sense of style.”IDEX


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RJc REachES 400 MEMbER MaRk

he Responsible Jewellery Council (RJC) has passed the 400 member mark. Of the more than 400

member companies and trade associations, more than 200 are certified according to RJC’s accreditation system.

All Commercial Members of the RJC have committed to be audited by accredited, third party auditors to verify their conformance with the RJC’s Code of Practices and to become certified within two years of joining the Council. “RJC’s healthy membership numbers in all parts of the supply chain reflect the growing awareness of the importance of ethical, human rights, social and environmental performance in the jewelry industry,” said CEO Michael Rae.

“RJC’s members have demonstrated they are willing

t to achieve RJC certification with great dispatch. This demonstrated commitment has helped support membership growth.” Rae announced that with membership spanning 30 countries, the organization is translating the RJC Code of Practices and supporting documents into a number of different languages. French, Italian, Spanish, Gujarati, Chinese (simplified) and Portuguese translations were recently released and are available on the RJC website. “We hope this will further support membership growth and uptake of the Code of Practices in important regions in Europe, India and China,” said Rae.IDEX

What does the oeCd say is Continuing to soften? Ken Gassman answers this and many other riddles at: www.idexonline.com/portal_FullidexResearch.asp?id=37358


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t was the time many had been waiting for as the 2012 Victoria’s Secret Christmas Dreams & Fantasies

catalog started dropping into mailboxes across the U.S. Top of the fantasies in this year’s catalog is the $2.5 million bra and belt set modeled by Victoria’s Secret Angel Alessandra Ambrosio. The “Floral Fantasy Bra Gift Set,” created by London Jewelers, is hand-set with more than 5,200 stones, including amethysts, sapphires, tsavorite, rubies and white, pink and yellow diamonds, all set in 18 karat rose and yellow gold. The bra has two removable diamond flower pins and the drop centerpiece features a 12.5 carat and a 20-carat white diamond.

I

VIctoRIa’S SEcREt2012 FantaSy BRa Valued at $2.25 MilliOn

For a buyer on a budget, Victoria’s Secret is also offering the $500,000 “Bombshell Fantasy Fragrance” this holiday season. This is the company’s Bombshell eau de parfum presented in a unique bottle, decorated with white, pink and yellow diamonds, sapphires, tsavorite, rubies plus a 10-carat white diamond and an exquisite one-of-a-kind, hand-carved tourmaline butterfly. Both the perfume bottle and the bra were inspired by the idea of a dreamy fantasy garden filled with vibrant colored flowers and heavenly angels. Fantasy aside, perhaps the real stunner is that, unlike previous creations, this year’s bra actually looks wearable! IDEX

69

P eter Van Calster, the controversial prosecutor who led a series of investigations against diamond companies

in Antwerp, has been “relieved of his responsibilities.” During the past year, Van Calster was under criminal investigation. Van Calster was criticized for his drawn-out investigations that rarely concluded and which crippled the local diamond industry. Attorney General Yves Liegeois fi led a number of complaints against Van Calster in the past year, alleging disciplinary infractions and crimes, according to the Gazet Van Antwerpen. Liegeois accused Van Calster of “mishandling” the

HSBC investigation and fi led complaints against him for falsifying documents and breach of professional confi dentiality. Subjects of his investigations accused Van Calster of hiding documents from them, a major infraction of local legal proceedings. While Van Calster’s fruitless yet disastrous investigations were aimed at achieving court convictions, Attorney General Liegeois is reportedly in favor of settlements in tax-related cases. “Peter Van Calster is indeed relieved of his responsibilities,” said spokesman Paul Van Tigchelt, adding that no disciplinary measures are being taken against him. IDEX

DIsmIssED:CONtrOVersial aNtwerp DiamOND prOseCutOr VaN Calster relieVeD OF Duties

IDEX MAGAZINE | NO 272: POLISHED

PolIsHED

70

e Beers Group CEO Philippe Mellier is the new chairman of Element Six, the group’s synthetic diamond

production subsidiary. He replaces Jonathan Oppenheimer. There have been concerns that the company, which supplies lab-made diamonds for industrial use, is using its expertise to supply the gem-quality sector, thereby competing with natural diamonds. Mellier has not cooled these concerns, saying simply that he looks forward to “open new markets and develop innovative uses for synthetic diamond supermaterials.” Cyrus Jilla, Element Six CEO, said, “We … believe his expertise will be invaluable to Element Six as we work to strengthen our operating performance and long-term growth strategy.” Mellier joined De Beers in July 2011 and has overseen a strategic review of the group’s business and its integration into Anglo American. IDEX

D

In HIs ElEmEnt:De Beers CeO is New elemeNt six ChairmaN


POLISHED CHow taI Fook anD alrosa

sigN lONg-term rOugh supply agreemeNt

ussian diamond miner Alrosa has signed a two-year agreement to supply rough diamonds to

Chinese jewelry manufacturer Chow Tai Fook Jewellery Group.

“The greatest challenge for all diamond industry players is the scarcity of authentic natural diamonds. The agreement with Alrosa enables us to secure more reliable supplies of rough diamonds, particularly those specifications that are in greatest demand from our customers,” said Chow Tai Fook executive director Conroy Cheng at the official signing in Moscow. According to Alrosa president Fyodor Andreev, the agreement is a step towards geographical diversification for the company, which it believes is imperative. “Alrosa’s priority is signing long-term agreements with large companies, since such agreements guarantee stable

r sales volume to us, as a producer, and guarantee stable rough diamond supply to the customer,” said Andreev.

Chow Tai Fook is a Spot Term customer of Alrosa. The agreement is Alrosa’s first long-term supply contract with a company from China. Chow Tai Fook Jewellery Group is a vertically integrated company comprising diamond-cutting factories and manufacturing of jewelry and watches, with more than 1,600 points of sale in China, Singapore and Malaysia. The company has been a DTC Sightholder since 1993 and a Rio Tinto Select Diamantaire since 2009. In its last fiscal year, the company reported a surge in revenue and profit. Revenues leaped 61.4 percent to HK$56.57 billion ($7.79 billion), while profit for the year ended March 31 grew 79.2 percent to HK$6.34 billion ($817.2 million). IDEX

Philippe Mellier

72

Botswana repOrts reCOrD septemBer DiamOND expOrts

otswana exported $304.9 million worth of rough and polished diamonds in September, returning

to its typical level of exports after the lull experienced in August.

September’s export levels were an 82.8-percent year-over-year increase and a 217.9-percent increase compared to August, based on figures published by the Bank of Botswana.

B This was the highest total value of diamond exports from Botswana in the month of September since 2007. The Bank of Botswana has revised the figures for July upwards, restating them at $316.9 million. This brings Botswana’s diamond exports to $2.44 billion in the first three quarters of 2012, a 34.1 percent decline at constant exchange rates. IDEX

Visit WWW.IDEXONLINE.COM

FOr liVe upDates


POLISHED

sHrEnuj & Co sales up 7.4% tO $151 milliON

umbai-based Shrenuj & Company reported net sales of Rs. 8.24 billion ($150.9 million) in the

quarter ended September 30. While this was a 7.4-percent year-over-year increase, the DTC Sightholder’s profits have eroded by 1.6 percent to Rs. 190 million ($3.5 million), the company reported.

“We have been experiencing economic uncertainty in most of our major markets,” said Shreyas Doshi, Shrenu chairman and managing director.

“The danger of yet another recession and the resulting changes in consumer sentiments led to slower inventory turns. The prices of the rough diamonds softened during the last quarter, providing a much needed relief to manufacturers.” Doshi added that while India and China would continue to serve as the company’s base for growth in revenue, this would be at “a lower level.” Shrenuj, a public company trading on the Bombay Stock Exchange, is an integrated gem and jewelry firm with activities ranging from diamond and jewelry manufacturing to retailing. Shrenuj’s diamond manufacturing facilities are located in India, Botswana and South Africa. IDEX

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wHItE 22+ Carat DIamonD sOlD at riO tiNtO’s speCial’s teNDer

fter its pink diamond auction, it was time for Rio Tinto’s large diamonds to take their turn on the

tender table. Ninety-four parcels were sold at the recent sale of goods larger than 10.8 carats, including 26 diamonds exceeding 20 carats in weight. The most expensive item, the “Diavik Selene,” a white diamond weighing more than 22 carats, was purchased by Israeli diamond company Eshed Diam. Other goods on offer at the invitation-only event comprised a number of large fancy colored diamonds, including

a yellow diamonds from all three Rio Tinto mines: Diavik in Canada, Argyle in Australia and Murowa in Zimbabwe. “The strong participation and results of this Specials Tender, as well as the recently concluded Argyle Pink Diamond Tender, demonstrates the consistent demand and competition for rare and valuable diamonds,” said Patrick Coppens, general manager of Sales for Rio Tinto Diamonds. Twenty-nine companies bought goods at the tender. IDEX

What DOEs thE OECD say Is CONtINuINg tO sOftEN? Ken gassman answers this and many other riddles at: www.idexonline.com/portal_Fullidexresearch.asp?id=37358

royal DIamonD aChieVes reCOrD-BreaKiNg $21.5 milliON

ith a final price tag of $282,545 per carat, the Archduke Joseph Diamond, which was sold at

Christie’s Geneva auction of Magnificent Jewels, broke all records for a colorless diamond.

An unidentified buyer paid a total of $21,474,525 for the historical 76.02 carat cushion-shaped stone.

“I am thrilled but not surprised that the Archduke Joseph Diamond should have fetched such a high price, said Alfredo J. Molina, the diamond’s former owner and CEO of America’s Black, Starr & Frost jewelers.

“It is considered the finest and largest perfect Golconda diamond ever to appear at auction, with a noble lineage and royal provenance which [are] literally ‘Fit for a Queen.’”

The overall amount realized at the sale, which sold 84 percent by lot and 86 percent by value, exceeded $85 million, and helped cap off the most successful year for Christie’s jewelry department in Switzerland. Annual sales at the auction house have topped $195.2 million.

During the course of the seven-hour sale, 19 lots sold above the $1 million mark. IDEX

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the archduke Joseph DiamondImage: Christie’s

74

Can We DisCount Color saturation

as a PriCe inDiCator? by Guy Borenstein FGA EGG, MenaheM sevderMish FGA D.Litt

DAtAbAsE MAnAGEMEnt by shMuel ChoCron

t he loose diamond market has a very specific way of stating prices during the course of a business

negotiation. Around the world, diamonds are offered for sale at discounts below the rate published by a mutually accepted pricelist. In some special cases, such as a 5 carat D Flawless diamond, a premium may be added to the price instead. Indeed, more often than not, the sellers do not even mention the price, but rather the percentage change.

However, with fancy colored diamonds, the situation is slightly different. Historically, because there is no widely accepted price for each color grade, the actual amounts paid for the same grade vary greatly in a rather wide range of goods.

While there are initial signs that prices are beginning to stabilize in the fancy colored diamond market, there is still insufficient data regarding the difference between the published asking price and the actual transaction price, which is the real amount paid by buyers. “Seven percent below” would have little meaning in this sector of the trade.

But is the situation changing? Is the colored diamond market beginning to resemble the colorless diamond market? To better understand what is happening, this month we decided to look at whether the market has adopted, unknowingly, specific price differences for different color grades.


To perform the task, we scanned our vast database, containing actual sales activity, to obtain average selling prices. Next, we compared the resultant numbers with the prices quoted by GemePrice™, which are calculated using as a reference the prices offered for thousands of diamonds for sale online. To make the comparison, we selected yellow colored diamonds, weighing 1 to 1.49 carats

As shown in the graph, Fancy Light, Fancy and Fancy Intense results showed very small discrepancies between the average purchase price and the pricelist, ranging from -3.3 to +3.9 percent. But when it came to Fancy Vivid stones, a premium of +27.8 percent was paid above the published price. In the darker tone grades, Fancy Deep and Fancy Dark, the displayed average discount from the published price was between 7.5 percent and 33.7 percent, respectively.

The insignificant changes in the Fancy Light, Fancy and Fancy Intense grades point to no discounts or premiums for these diamonds. The buyers accept the sellers’ asking prices and are willing to pay them. However, for Fancy Vivid diamonds, they are willing to pay much more.

This is not the first time that we have seen significant

-33.7%

Fancy light Fancy Fancy intense Fancy vivid Fancy deep Fancy dark

the distance Between asking Price and actual transaction Pricefor yellow Colored diamonds Weighing 1.00 to 1.49 Cts

40%

30%

20%

10%

0%

-10%

-20%

-30%

-40%

-3.9%-7.5%

+3.3%+3.9%

+27.8%

Why are 2012’s holiday sales likely to be just “ho hum hum?” Ken Gassman answers this and many other riddles at: www.idexonline.com/portal_FullidexResearch.asp?id=37397

76 IDEX MAGAZINE | NO 272: POLISHED

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differences in pricing behavior with Fancy Vivid grade. In May 2012, Fancy Vivid yellow prices dipped, while rises were reported for Fancy Light, Fancy and Fancy Intense grades.

Right now, the price reductions in Fancy Deep and Fancy Dark grades indicate that the sellers may be struggling to sell these darker colors, offering them at discounts. While the Fancy Deep grade has been offered at a relatively low discount, the Fancy Dark grade prices have been dramatically reduced, by one third, to allow transactions to occur. iDeX

aBout GeMeWizard®

Gemewizard® is a pioneer in the development of digital color- based systems, which provide solutions for professionals involved in the fancy color diamond, colored gemstone and jewelry industries, enabling the analysis, description, communication, pricing and trading of color in gems. The suite of products developed by Gemewizard® is based on the company’s groundbreaking color communication technology called GemeSquare™, which has been endorsed by GIA® Education, and since 2006 has been incorporated into the GIA® curriculum. http://www.gemewizard.com.

78 IDEX MAGAZINE | NO 272: POLISHED

Polished Diamond Prices

averaged 133 in October, compared to an average of 134 in September. Polished diamond prices have lost ground year-over-year; however, the rate of decline is moderating. Prices fell 5.7 percent in October, compared to October 2011 when the Index averaged 141.0.

PRICES DROP 0.8% IN OCTOBERBY EDAHN GOLAN

eak demand and slow-paced purchasing by jewelry makers caused an overall decline in polished

diamond prices in October. The IDEX Online Polished Diamond Price Index lost 0.8 percent, compared to September, with the all-important 1 carat rounds sinking 1.2 percent. The IDEX Online Polished Diamond Price Index

W

Graph 1 Source: IDEX Online

IDEX Online Polished Diamond Price Index

2010 2011 2012

150

140

130

120

110

10 0N D J F M A M J J A S O N D J F M A M J J A S O

2010 Avg 116.0

PEAK July 2011146.7

2012 Avg YTD137.5

October 2012133.02011 Avg

135.8

P O L I S H E D

Round, 1 carat diamonds lost 1.2 percent in October, and have dropped 10.3 percent since October 2011. The only round-cut key size displaying clear signs of vitality are 0.5 carat stones, which have gained 0.3 percent since September. Five carat rounds lost 5.3 percent and 2 carat diamonds softened by 1.5 percent.

OutlookAs the diamond jewelry buying season was slowly starting, wholesalers and retailers were looking forward to increased demand and are hoping to see a late, yet clear turnaround in consumer interest during the Holiday Season. IDEX

A full analysis of polished diamond prices is available to IDEX Online Research subscribers and IDEX Online members. For more information on how to subscribe or

to become a member, contact [email protected].

Graph 2 Source: IDEX Online

Polished Diamond PricesBy Size - October 2012 vs September 2012

0.5 Ct 1.0 Ct 1.5 Ct 2.0 Ct 3.0 CtWeighted Average 4.0 Ct 5.0 Ct

+1.0 %

+0.0 %

(1.0 %)

(2.0 %)

(3.0 %)

(4.0 %)

(5.0 %)

(6.0 %)

(1.2%) (1.1%) (1.5%)

(0.1%)

(5.3%)

(2.3%)

(0.8%)

0.3%

90 I A Year in Review 2012: It’s A Real Page Turner

A YeAr in review 2012: it’s A reAl PAge turner

It’s hard to believe, but another 12 month cycle has nearly been completed. As we head in to 2013, it’s time to take a look back at the past year to remember the highs and the lows of 2012.

It was a year that saw great change at De Beers, one of the bastions of the diamond industry. It was also the year that saw great debate – that still has yet to be fully resolved – over the new and extended definition of conflict diamonds. It was also time to – sadly – say goodbye to some stalwarts of the industry.

What were the highlights of your year? Read on to remember 2012, in all its glory.

A Year in Review 2012: It’s A Real Page Turner I 91


new

ChAnge Is InevItABle, But It’s not AlWAys

eAsy. heRe’s A RounDup of some of the

events thAt ChAngeD the fACe of the

DIAmonD AnD jeWelRy InDustRIes In 2012.

WhAt ChAnges lIe AheAD In 2013? only

tIme WIll tell.

WoRlDBRAve


One of the biggest changes this year was the news that De Beers was embarking on changes in its corporate structure. The company basically turned its entire model on its head by saying it needed to put the consumer at the beginning of the diamond pipeline. Through a series of yet to be fully disclosed changes, De Beers intends to “realign” itself. Early stages for this corporate realignment include a group renaming and the consolidation of the De Beers corporate identity. In a letter to Sightholders, DTC CEO Varda Shine wrote, “We have therefore begun a piece of work to start to realign our organization a little better to enable us to better translate your needs into a responsive production and sales strategy – so that together we can grow the value of diamonds for decades to come.”

This was also the end of an era for De Beers as the Oppenheimer family left the diamond industry after 80 years. The family’s 40-percent share in the company was officially acquired by Anglo American, which paid $5.2 billion in cash for the stake.

Another change took place with the migration of De Beers’ worldwide diamond aggregation to Gaborone, Botswana, two months ahead of schedule. For the past 80 years, aggregation has taken place in London. Aggregation activities will now take place in the new purpose-built De Beers facility housed within the DTC Botswana building. De Beers will be relocating its Sights and sales operations – including professionals, skills, equipment and technology – from London to Gaborone over the next year.

BRAve

This was also the end of an era for De Beers as the Oppenheimer family officially left the diamond industry after 80 years.

chapter 1


This year, Rio Tinto Diamonds announced it would be exiting the diamond industry. Speculation was rife about who would buy the multi-miner’s operations, but at the time of print, no announcement had been made about a possible purchaser. According to the company’s chief financial officer, the company’s plans to sell its diamond assets are “well advanced.” Harry Winston, which holds a 40-percent stake in the Diavik mine, has the first right of refusal to purchase Rio Tinto’s 60-percent share of the Canadian mine.

BHP Billiton did actually exit the diamond business. Towards the end of the year, it was announced that Harry Winston had bought the Ekati mine in Canada and the Diamonds Marketing business in Antwerp for a cool $500 million. It’s definitely the end of the era for BHP, but the start of a new chapter in Harry Winston’s diamond story.

This was the year that the GIA finally came to Israel. The diamond grading lab opened a facility that is estimated to save the local industry some $30-$50 million a year.


In an attempt to maintain its position as the leading rough diamond bourse, the Antwerp Diamond Tender Facility was opened on the first floor of the AWDC building in the heart of the Antwerp diamond district.

The company basically turned its entire model on its head by saying it needed to put the consumer at the start of the diamond pipeline.

This was the year that the GIA finally came to Israel. The diamond grading lab opened a facility that is estimated to save the local industry some $30-$50 million a year. As well as the financial savings, grading lag time is estimated to have been cut from six to eight weeks to as little as one week. Donna Baker, GIA president and CEO, said the capacity of the lab would be small to begin with and would grow according to local demand. In India, 2012 saw a large influx of companies moving away from the traditional South Mumbai Opera House diamond center and into the purpose-built Bharat Diamond Bourse (BDB). While the BDB is far from completely full, it has now been inhabited by some of the largest and most influential Indian firms, paving the way for others to follow.

In an attempt to maintain its position as the leading rough diamond bourse, the Antwerp Diamond Tender Facility was opened on the first f loor of the AWDC building in the heart of the Antwerp diamond district. The facility includes seven viewing rooms, access and video controls.


In a sign of the times, the headquarters of the International Colored Gemstone Association (ICA) moved from New York to Hong Kong. The organization said the move was aimed at bringing it into closer touch with the rapidly expanding Asian markets – and its increased membership in the region – and to actively participate in the further development of the colored gemstone and jewelry industry in that region. ICA will still maintain a presence in New York.

Lucara Diamond Corp. began producing diamonds from its Karowe mine in Botswana. Full production was reached at the end of the second quarter. Lucara is also the 75-percent owner of the Motha Project in Lesotho, which is in the trial mining stage.

The first diamonds from the Bunder Diamond Project in Madhya Pradesh, India were handed over to selected Indian diamantaires for cutting and polishing. The diamonds were set into jewelry created by Reena Ahluwalia, a Canadian-based designer who was born in Madhya Pradesh. This was the first time in a century that India has produced diamonds that have gone into indigenously fabricated jewelry.

This year, the Natural Color Diamond Association (NCDIA) announced its re-structuring and re-launch. According to the organization, its streamlined vision brings with it a revitalized energy and commitment to the promotion of natural color diamonds.

In a year when lab-created diamonds made the news for all the wrong reasons, Gemesis announced that it was now able to produce colorless diamonds. The IGI-certified colorless

This was also the year that saw the first woman appointed to serve as chair of the Kimberley Process.

Lucara Diamond Corp. began producing diamonds from its Karowe mine in Botswana.


diamonds are priced according to their overall quality and color in the same way as natural diamonds. After a spate of attempts to pass off lab-made diamonds as natural, grading labs are increasingly on the lookout for undisclosed synthetic diamonds. No doubt this is a topic that we will hear more about in 2013.

This was the year that diamonds from Zimbabwe were once again widely exported following approval from the Kimberley Process. The country seems to be back on the diamond production map as it hosted a two-day international diamond conference at Victoria Falls highlighting its accomplishments.

This was also the year that saw the first woman appointed to serve as chair of the Kimberley Process. Ambassador Gillian Milovanovic served as chair on behalf of the U.S.

the Karowe mineImage: lucara Diamond Corp.

Workers at the Karowe mineImage: lucara Diamond Corp.


sCoop


When It CAme to some of the BIggest Issues In the DIAmonD InDustRy In 2012, geneRIC DIAmonD pRomotIon, synthetICs AnD stRIKes WeRe Among the Issues gRABBIng the heADlInes. WhAt WIll mAKe the neWs In 2013?

chapter 2


When strikes hit the South African mining sector, it was not only jobs and production that were lost – lives were too. AngloGold Ashanti, the world’s third-largest gold producer, cut its dividends and warned of restructuring at its South African operations. Mining giant Anglo American was also reviewing the viability of shafts operated by its platinum operation in South Africa, Anglo American Platinum (Amplats), the world’s largest producer of the precious metal. Diamond mines were also affected, with Petra Diamonds being hit by a rash of (resolved) strikes at its South African mines, with workers downing tools at its Kimberley Underground, Koffiefontein and Finsch mines over pay and working conditions.

There were also countrywide strikes in India against the government’s proposed imposition of a 1-percent excise duty on unbranded jewelry, the doubling of the import duty on gold from 2 to 4 percent and the government ordering the collection of 1-percent income tax from retailers, on the sale of jewelry worth more than $3,917 (Rs.200,000). The strike hit the Opera House diamond district of Mumbai in March when some 80 percent of the diamond offices in the area – mainly small and medium operators – heeded the strike call by the Bombay Diamond Merchants Association (BDMA) and joined the protests.

When strikes hit the South African mining sector, it was not only jobs and production that were lost – lives were too.


There were also countrywide strikes in India against the government’s proposed imposition of a 1-percent excise duty on unbranded jewelry.

It was meant to be a move that bought the industry together, but the proposed Diamond Source Warranty Protocol, a chain of custody initiative announced by a group of American organizations, fell flat when it was introduced at the 35th World Diamond Congress. The initiative was announced by the Jewelers of America (JA), the Jewelers Vigilance Committee (JVC) and the Diamond Manufacturers and Importers Association (DMIA). Part of the issue is the “competing” World Diamond Mark initiative, which was rolled out at the conference and which is aimed at consumer assurance through an approval mark that guarantees best practices. Hopefully this issue will be resolved before too long.


Another issue that came up during the year was the subject of the generic promotion of diamonds. During the World Diamond Congress, a call was made for a levy on all rough diamond sales by miners to fund global generic diamond promotions. The idea was put forward by Sanjay Kothari, former chairman of the Gem & Jewellery Export Promotion Council (GJEPC), who said the key to such a campaign is ensuring a big enough financial war chest to carry out any promotion plans. The GJEPC has imposed a levy on all polished diamond exports from India to fund its domestic promotional campaign. A diamond may be forever, but sometimes the consuming public needs to be reminded of this important fact...

Recognizing that it needs to evolve to stay effective, the Kimberley Process (KP) is considering new definitions of just what “conflict” means. According to a KP statement, “An updated definition could apply to diamond-related conflicts that meet generally agreed-upon standards of armed conflicts, such as use of armed force between States or protracted armed violence between governmental authorities and organized armed groups or

between such groups within a State.” Contrary to some earlier fears, the new definition will not apply to violence that is unrelated to diamonds. This important clarification was made in response to concerns by countries such as China, Israel, Russia and some African states, that internal issues could be used as an excuse to exclude them from KP on political grounds. The KP is also expected to change the way it is run, with the formation of a permanent administrative body, which would make the annual transition between chairs much smoother.

This seemed to be the year that the idea of diamonds for investment really got off the ground – with companies such as Singapore Diamond Exchange (SDX), offering diamond portfolios starting at $250,000, going up to over $1 million. But one company, PureFunds took the concept even further with the proposal of an Exchange Traded Fund (ETF), Diamond/Gemstone ETF (NYSE ARCA Ticker Symbol: GEMS) that tracks an index of 26 publically traded diamond miners and retailers. The ETF will hold shares of the indexed companies, but not actual diamonds.

During the World Diamond Congress, a call was made for a levy on all rough diamond sales by miners to fund global generic diamond promotions.


One unwelcome word that kept coming up during the year was synthetic. There was a spate of synthetic diamonds being passed off as natural stones. Fortunately, the industry’s gem labs have the skills to sort out the synthetic from the natural, but the knowledge that people were trying to commit fraud of this sort had everyone on the lookout. Among the biggest

incidents was the parcel of hundreds of CVD synthetics submitted to IGI in Antwerp, while another, albeit much smaller, group of CVD synthetics surfaced at the Gemological Institute of America’s Hong Kong lab in June. There were also warnings about other gemstones undergoing undisclosed treatments, including irradiated emeralds from Colombia.

Fortunately, the industry’s gem labs have the skills to sort out the synthetic from the natural, but the knowledge that people were trying to commit fraud of this sort had everyone on the lookout.


RetIReDfIReD

hIReD It’s tRue thAt tIme stAnDs stIll foR no mAn – oR WomAn. At the enD of 12 months, theRe hAve Been A lot of ChAnges At the top. Who Is In AnD Who Is out?


Israel Diamond Institute Group of Companies (IDI) managing director Eli Avidar stepped down from his role to take up the post of CEO of Azura Consulting. The company, which is owned by Dan Gertler, provides consultancy services for the management of mining assets in Africa, including the Democratic Republic of Congo. Avidar was replaced at IDI by Udi Shiental.

The Jewelers Board of Trade (JBT) elected Phyllis Bergman, CEO of Mercury Ring, to chair its board of directors. Bergman is the first female to chair the board in JBT's 128-year history. This is not the first time that Bergman has broken through the “diamond” ceiling. She was also the first woman to serve as chairman and president of the 24 Karat Club of New York.

Ernest Blom, chair of the Diamond Dealers Club of South Africa and vice president of the World Federation of Diamond Bourses (WFDB), was elected president of the WFDB. Blom, a past-president of the federation is also an honorary life president of the organization. He replaced Avi Paz, former president of the Israel Diamond Exchange.

After rumblings and rumors that had been felt for a few months, Anglo American CEO Cynthia Carroll stepped down in October. Her resignation came amid reports that institutional shareholders were dissatisfied with her performance, in particular the cost overruns of the Minas Rio iron ore mine in Brazil. Earlier in the month, Carroll had been appointed chairman of the board of De Beers. Anglo American has an 85 percent share in De Beers. Her replacement at Anglo American and De Beers had yet to be announced at print time.

Israel Diamond Institute Group of Companies (IDI) managing director Eli Avidar stepped down from his role to take up the post of CEO of Azura Consulting.

chapter 3

Avidar was replaced at IDI by Udi Shiental.


A series of management changes took place at Rio Tinto. Among them was the appointment of Rio Tinto Iron Ore International Operations president Alan Davies as the new Diamonds & Minerals chief executive. He replaced Harry Kenyon-Slaney, who moved to Brisbane to take up the role of Energy chief executive

Stephane Fischler was elected president of the AWDC, succeeding Nishit “Bali” Parikh. The board of directors also appointed Kaushik Mehta as vice-president, representing the trade, and Philippe Barsamian as vice-president representing the Bourses.

Moti Ganz was unanimously re-elected as chairman of the Israel Diamond Institute Group of Companies (IDI). Ganz said his main task this term would be to create a comprehensive 10-year strategic plan for IDI, in order to position the Israeli diamond industry as a global leader in rough and polished diamonds.

Jeff High, the founder of Gemvision, joined the Lafayette-based DTC Sightholder Stuller as executive vice president of Gemvision and innovation solutions. The company said his hiring would allow it to provide the jewelry industry with a continuous f low of the latest technology and digital solutions. Stuller formed a strategic partnership with Gemvision in 2009 with the goal of enhancing customization tools for retail jewelers.

Ed Hrabak was tapped by Sterling Jewelers Inc. as its new VP and COO following the retirement of Bill Montalto, who left the company after 26 years of service. Other key changes include the promotion of Stuart Lee to senior vice president and Merchandising and General Merchandise manager, and Dawn McGuire, who was promoted to vice president of Merchandising.

De Beers CEO Philippe Mellier replaced Jonathan Oppenheimer as the chairman of Element Six, De Beer’s synthetic diamond production subsidiary.

Moti Ganz was unanimously re-elected as chairman of the Israel Diamond Institute Group of Companies (IDI).


ABN AMRO appointed Erik Jens as chief executive officer of its International Diamond & Jewelry Group (ID&JG), succeeding Victor van der Kwast. Jens has been with ABN AMRO for more than 20 years and has held various senior executive and leadership positions in a number of international roles.

Blue Nile appointed Harvey Kanter as its chief executive officer and president, replacing Diane Irvine who resigned in November 2011. Interim-CEO Vijay Talwar was appointed general manager and president of Blue Nile's international business.

At Rio Tinto Diamonds, Tarun Malkani was appointed to the post of chief operating officer, India. Malkani, an engineer by training, was director of Rio Tinto’s aluminum business in India.

De Beers CEO Philippe Mellier replaced Jonathan Oppenheimer as the chairman of Element Six, De Beer’s synthetic diamond production subsidiary. Oppenheimer left his role when his family’s share in De Beers was bought by Anglo American.


GIA (Gemological Institute of America) appointed Stephen B. Morisseau as its public relations director. Morisseau is responsible for implementing and driving communication strategies that further GIA objectives.

After 18 years with the De Beers Group, Louise Prior, head of Communications and Sightholder Services for the DTC, announced she was leaving the company at the year’s end. Prior, who began working for De Beers as an assistant sales manager in the company’s polished division before becoming a Key Account Manager (KAM) at the DTC, has decided not to move with De Beers to Botswana in 2013.

Matthew A. Runci, president and CEO of Jewelers of America (JA), will retire from his position on December 31. Runci joined JA as president and CEO in 1995. He had previously served as CEO of Manufacturing Jewelers & Suppliers of America, where he held several positions over a 16-year period. Prior to that, he taught international politics, law and foreign policy at the university level. He will be replaced by David Bonaparte, senior vice president of JCK Brands. Runci is being succeeded in his role as the chair of the Responsible Jewellery Council by James Courage, chief executive officer of Platinum Guild International.


Vipul Shah, CEO of Asian Star Co. was elected chairman of the Gem and Jewellery Export Promotion Council (GJEPC). Jewelry manufacturer and exporter Pankaj Parekh from Kolkata was elected vice chairman.

The International Diamond Manufacturers Association (IDMA) elected Maxim Shkadov chairman of the Russian Diamond Manufacturers Association as its new president.

Vipul Shah, CEO of Asian Star Co. was elected chairman of the Gem and Jewellery Export Promotion Council (GJEPC). Jewelry manufacturer and exporter Pankaj Parekh from Kolkata was elected vice chairman. The two took over responsibilities from the outgoing chairman Rajiv Jain and vice chairman Sanjay Kothari with immediate effect. They will hold office for the next two years.

The International Diamond Manufacturers Association (IDMA) elected Maxim Shkadov, chairman of the Russian Diamond Manufacturers Association, as its new president. He replaced Moti Ganz, who completed two terms in office. Shkadov currently serves as the president of the Smolensk Diamonds Association, which unites diamond processing companies in the Smolensk region. He was elected chairman of the Russian Diamond Manufacturers Association in 2005.

Kim Truter was appointed managing director of the Argyle Diamond Mine in Western Australia. Truter, an experienced mining executive, previously held a number of senior roles within Rio Tinto, most recently as president and COO of the Diavik Diamond Mine in Canada.


RememBeRIng…chapter 4



Vasantlal Mehta

On June 17, Vasantlal Laxmichand Mehta, founder of Blue Star Group and Arjav Diamonds, passed away in Mumbai, at age 82.

Mehta, who came from Palanpur, began his career as a diamond broker in Zaveri. He founded Blue Star in Mumbai in 1966, and over the next 10 years brought his three sons, Akshay, Anuj and Ashit, into the business. Today the third generation of the family is involved in the company.

In the latter part of his life, Mehta moved to Pondicherry in devotion of the Sri Aurobindo Ashram.

Jacques Roisen

Jacques Roisen, who passed away on May 26, was president of the Diamond Manufacturers & Importers Association of America (DMIA) and the International Diamond Manufacturers Association (IDMA), honorary life president of both organizations and former co-chair of the Diamond Industry Steering Committee (DISC). Calling him an icon and legend in the diamond industry, DMIA President Ronald J. Friedman said in a statement that Roisen “taught us about business, family and humanity. His legacy is evidenced by the strength and bond of his family, his record of charitable endeavors and his involvement in industry organizations for the betterment of us all.” “We are, in part, what we are today due to the examples that he set for us. His imprint on our industry and on all of us individually will last forever,” added Friedman.

IDMA Secretary General and DMIA vice president Ronnie vander Linden said everyone respected Roisen.

“His career has been amazing. Fleeing from the Nazi destruction in Europe, he arrived in New York from Antwerp and quickly re-built his life, soon to become one of the key representatives of New York’s diamond industry, dedicating himself to its growth and success, for the benefit of the entire diamond district.” Isi Beck

Isi Beck, an inf luential member of the Antwerp diamond industry, died in Antwerp on March 20, at age 89. Beck, who was born in Cologne, Germany in 1923, was a long-time diamond manufacturer. He started in the industry as a cleaver in 1938.

He was business manager of Belgian Diamond Suppliers and a member of various diamond organizations, serving as vice president and as a member of the executive committee of the World Federation of Diamond Bourses from 1993 to 1998. Beck joined the Antwerpsche Diamantkring in 1949 and served as its president from 1987 to 1999. Overlapping these positions, he held the post of president of the Federation of Belgian Diamond Bourses from 1990 to 1999. He also served as treasurer of the Diamond High Council (now Antwerp World Diamond Centre) in 1987 and as its vice president in 1993. In honor of his various achievements, he was made a knight in the Order of King Leopold and an officer in the Crown Order. “The Belgian diamond center loses a dedicated professional with great social responsibility. Isi Beck enriched Antwerp by his presence, foresight and intimate understanding of the business. It is fair to state that the Antwerp diamond industry will miss his dedication,” said the then-WFDB president, Avi Paz.


Howard Rubin

Howard Rubin, past president of AGS and inventor of GemDialogue, passed away on January 17 at the age of 86. According to the National Association of Jewelry Appraisers, “His 64 years of gem trade experience touched every facet of the jewelry industry.” After serving in World War II as an infantry soldier, Rubin took advantage of the G.I. Bill to became a diamond and colored stone setter. He studied gemology for the second time in 1982, enhancing his knowledge of the science of color, which led him to develop GemDialogue, a system for describing color of gemstones and fancy color diamonds. The system revolutionized the way traders describe the color of their stones and made a permanent impact on the jewelry industry. Rubin served as the president of the AGS New York Guild from 1976-1977. From 1979 to 1988 he was vice president of Leer Gem Ltd., the color stone division of M. Fabrikant & Sons. This was followed by a career as a consultant to companies like QVC, Wal-Mart, I.B. Goodman and Charles & Colvard. In 1990 and onward, Mr. Rubin acted as an independent consultant, appraiser and educator. In 1993, he joined his wife Gail Brett Levine’s appraisal practice company, Timeless, Inc., as senior evaluator and appraiser. He was a senior member and the national secretary of the National Association of Jewelry Appraisers (NAJA) and was NAJA’s representative at The Appraisal Foundation, serving on the Industry Advisory Council since 2004. Rubin received the 2011 Manhattan Chapter GIA Alumni Chapter Achievement Award.

Manoj Kumar Grandhi

Manoj Kumar Grandhi of Vaibhav Jewellers, a director of the All India Gems and Jewellery Trade Federation (GJF), was brutally murdered in Bangalore on February 7.

Grandhi was on a buying trip when the driver of his hired car overhead him enquiring about expensive diamond jewelry over the phone.

During Grandhi’s return car trip to the airport, the driver pretended there were problems with the car’s lights and gearbox. He pulled up next to a black car in which two accomplices were waiting. The two jumped into the car and the jeweler was driven to a secluded road where he was strangled with a wire and towel and his body thrown into a remote valley.

The driver tried then drove to the airport and after waiting at the check-in zone, called his office to say he had dropped Grandhi off. He then returned to the office and produced a normal trip sheet. Police were initially unable to make headway in the case as they worked on the assumption that Grandhi had safely reached the airport. Under sustained interrogation, however, the driver broke down, confessed to the crime and tuned in his two partners. The two accomplices were picked up, and, based on information they provided. Grandhi’s body was found hanging in a tree, 150 feet below the road in the valley.

RememBeRIng…


thIs yeAR sAW A spAte of tRAgIC WoRK-RelAteD ACCIDents. let’s hope thIs Is the lAst tIme We hAve to RepoRt suCh oCCuRRenCes.

Methane Blast at Alrosa Mine

Two workers were killed at an Alrosa mine in Yakuita in August. An investigation confirmed initial suspicions that methane was to blame for the accident, which took place 365 meters underground.

Slope Failure at Jwaneng Diamond Mine

Motshwari Raseiteo, a father of three, was buried under an avalanche of soil that collapsed while he was driving through the Jwaneng diamond mine in Botswana. The 34-year old was killed by what was described as a “slope failure.”

Tunnel Collapse at Ghaghoo Mine Project

Two workers were killed in June when ground at the face of a tunnel collapsed at the Gem Diamonds’ Ghaghoo mine project in Botswana. The company said after a full investigation that additional safety precautions had been put in place. “The company… commits itself to continuing to strive for the highest safety standards for its employees and contractors at all of its operations,” said CEO Clifford Elphick. Tunnel Collapse Kills 10 in South Africa

Ten illegal diamond miners were killed during illegal diamond mining activity near a De Beers diamond mine in South Africa. South Africa’s Minister of Mineral Resources Susan Shabangu said in reaction to the event that there were about 600 derelict and ownerless mines in the country.

RememBeRIng…


The

The RiTzas Big asDiamonD

Bigger, brighter, better – from record-breaking auctions, to large diamond finds, 2012 was a year that saw some diamond items worthy of a book of their own!

Image: Kristall


There’s been lots of good news coming out of the Karowe diamond mine in Botswana over the past year. Perhaps the best news was the discovery of a rare 9.46-carat rare Type II blue diamond. Where there’s one, more are sure to follow… Never one to reveal pricing information, Rio Tinto Diamonds said this year’s Argyle Pink Diamond Tender delivered “exceptional” results. The top item of this year's sale was a 1.32-carat radiant cut Fancy Vivid Purplish Pink VS2 diamond named Argyle Siren, which was bought by John Glajz.

A 131.5 carat white diamond was discovered at the Lonrho Mining Lulo Concession in north-eastern Angola. The diamond is the largest stone recovered by the Perth-based company since it began treating alluvial gravels at its Dense Media Separation plant at the Lulo project in 2010.

It was a good year for diamonds at auction. A cushion-cut fancy vivid purplish-pink diamond ring by Dreicer & Co. sold for a U.S. auction record of $15,762,500 or $1.75 million per carat (p/c).

Another pink making the news was a 12.04 carat fancy intense pink diamond sold for $17.5 million at Christie’s spring sale of Hong Kong Magnificent Jewels, giving it a price of $1,452,267 p/c. The Martian Pink was sold after a 10-minute bidding war. The diamond, which had last been sold by Harry Winston in 1976, had a pre-sale estimate of $8.4-$12 million. At the same sale, a record $551,000 per carat was paid for a 6.04 carat Burmese ruby, while a private Asian buyer bought a pair of brilliant-cut D / Flawless diamonds of 10.88 carats each for $ 4.9 million, or $223,000 p/c. D / Flawless diamonds weighing more than 10 carats are a hot purchase among investors in diamonds. A matching pair of such diamonds carries an extra premium.

It was a good year for diamonds at auction. A cushion-cut fancy vivid purplish-pink diamond ring by Dreicer & Co. sold for a U.S. auction record of $15,762,500 or $1.75 million per carat.

The Martian Pink was sold after a 10-minute bidding war. The diamond, which had last been sold by Harry Winston in 1976, had a pre-sale estimate of $8.4-$12 million.

chapter 5


The Jewels For Hope: The Collection of Mrs. Lily Safra sale, which took place at Christie's Geneva, could be said to be the auction of the year. The sale, which was 100 percent sold by lot and by value, almost doubled pre-sale expectations to realize a total of $37,924,551. But what made this result so outstanding is that The Lily Safra Foundation donated the full proceeds of the auction to charitable organizations. Prior to the event, the Foundation announced 20 charities

that would benefit from the sale. Given the outstanding result, the Foundation announced an additional 12 organizations that it would be able to support. The top lot of the night was a 32.08 carat cushion-shaped Burmese ruby and diamond ring, by Chaumet. The ring, which had an estimate of $3-$5 million, sold for $6.74 million, making it the most expensive ruby ever sold at auction. To reflect the sale, it was renamed “The Hope Ruby.”

Image: Rio tinto Diamonds


In April, a 3.54 carat fancy blue SI1 diamond set in a platinum ring by Tiffany was the leading item at Sotheby’s Magnificent Jewels sale, selling for $2,434,500. The result was nearly five times the $0.5 million top estimate the auction house estimated. According to Sotheby’s, the result was a record price for a fancy blue diamond.

Perhaps the biggest sale of the year was a diamond that was, if not as big as the Ritz, then pretty sizeable. The 76.02 carat, D / IF cushion cut Archduke Joseph Diamond sold for a whopping $21,474,525. The $282,545 per p/c price is a record for a colorless diamond sold at an auction. The diamond was previously auctioned at Christie’s Geneva in 1993 for $6.5 million, or $10.4 million at today’s value. This is a 106.2 percent appreciation in 19 years.

Just days later, it was the turn of rival auction house Sotheby’s to host its Magnificent Jewels sale. The star lot of the night was the sale of an exceptionally rare Fancy Deep blue, Flawless 10.48 carat diamond. The stunning item was bought by Laurence Graff for $10.86 million. At $1,036,273 p/c, this was not only a world record per carat price for a Flawless Fancy Deep blue diamond, but it was also a world record price for a Briolette cut diamond at auction.

In April, a 3.54 carat fancy blue S11 diamond set in a platinum ring by Tiffany was the leading item at Sotheby’s Magnificent Jewels sale, selling for $2,434,500.

Just days later, it was the turn of rival auction house Sotheby’s to host its Magnificent Jewels sale.

Image: sotheby's

Image: gem Diamonds

IDEX MAGAZINE | NO 272: MARKET REPORT 85

tHE MaRKEts In octoBER and noVEMBER There was a slow rise in demand for polished from buyers and retailers as the holiday season began. In the aftermath of Hurricane Sandy, many in New York were more focused on recovery, and less on shopping. In the trading centers, diamantaires were happy to see some increase in demand, although the expectations for the post-holiday season restocking were mixed.

For the latest on monthly polished diamond price analysis compiled by IDEX Online analyst Ken Gassman, visit www.idexonline.com/Research/PolishedDi45 Diamond pricing information is derived directly from the IDEX Online trading network of more than 6,000 active traders and an online polished diamond inventory of over 350,000 diamonds, with an estimated value of more than $4 billion. The pricing information is transparent and unbiased. Information is derived from actual asking prices of the global diamond industry and objectively reflects market trends.

iDeXMArKet report

u.S.Following the aftermath of Hurricane Sandy, most of New York City was in recovery mode. For this reason, the market, especially the retail end, was uncharacteristically quiet for the usually very busy winter holiday season.

Polished prices continued to be weak. SI quality goods in G-H colors were generally moving as prices remained firm, and buyers and traders were forced to sacrifice quality in order to stay within tight price parameters. Smaller goods saw modest improvement in demand.

The supply of goods in demand was scarce as retailers and wholesalers were hesitant about overstocking, and were replacing purchased goods only when the need arose. The below-average demands for round stones noted in October continued in November, which led to a focus on fancy cuts, which are seen as a viable option for value-conscious buyers.

R o u n d s

0.05-0.15 cts, d-J / I, slow 0.05-0.15 cts, d-J / sI+, slow 0.10-0.75 cts, G-H / sI, selling 1/5-3/4, d-J / pique, mediocre demand 1/5-3/4, d-J / Vs+, mediocre demand 0.30-0.70 cts, d-J / sI+, selling, shortages reported 0.90-1.50 cts, G-H / sI, mediocre demand 1.00-2.00 cts, d-M / pique, slow 1.00-2.00 cts, F-J / sI+, slow 1.50-3.00 cts, d-M / Vs-sI, mediocre demand 2.00-4.00 cts, d-K / sI+, slow 4.00+ cts, d-J/ pique, slow

F a n c y c u t s

all fancy cuts, 0.10-0.99 cts, d-K / sI+, selling cushions and Princesses, 0.10-0.40 cts, selling Pears and ovals, 0.20-1.00 cts, H+ / Vs+, mediocre demand

86 IDEX MAGAZINE | NO 272: MARKET REPORT

AntwerpThe first Christmas orders started to come in from retailers in mid-November. Although these purchases gave traders some confidence, they were limited due to the financial situation in Europe.

The Antwerp diamond market showed decent movement, although a few Indian offices closed to celebrate the New Year and Diwali holidays. There were many rough and polished buyers in the center, with traders reporting good demand. They did, however, note that the market was not as busy as expected, although the real test is what happens after the holidays, when retailers want to replenish their inventories.

Concerns that the post-holiday season will be weak were leading traders to be very cautious about buying for stock.

R o u n d s

0.005-0.15 cts, F-J / pique, slow 0.005-0.15 cts, F-J / sI+, selling 1/5, d-J / Vs+, mediocre demand 0.25-0.90 cts, white / pique, mediocre demand 0.25-0.90 cts, F-K / sI+, good makes, selling 1.00-3.00 cts, white / pique, including goods for treatment, mediocre demand 1.00-3.00 cts, F-J / sI1+, good makes, mediocre demand 1.00+ cts, Fancy colors, mediocre demand 1.00-5.00 cts, d/ IF, slow 4.00+ cts, G-J / Vs-sI, slow, demands limited to reasonably priced goods 4.00+ cts, G-J / VVs, slow

F a n c y c u t s

Princesses, cushions, Pears and Emeralds, 1.00-3.00 cts, G-K / sI+, selling Marquises, Radiants, ovals, and Hearts, 1.00-3.00 cts, G-K / sI+, mediocre demand tapers and Baguettes, 1/10-1/6, d-I / sI+, mediocre demand

MuMbAiThe Mumbai market was closed for the New Year and Diwali holidays.

87IDEX MAGAZINE | NO 272: MARKET REPORT

R orAMAt GAnNovember was a good month for the Israeli diamond industry. Companies that supply the U.S. market enjoyed a high level of business during the pre-holiday season. Israeli traders were hopeful that the decent trade in the Far East market would follow.

The good trading mood and the fair number of overseas buyers in the market led local traders to buy more to complete orders and also to hold onto goods for stock. There were, however, some very cautious buyers who wanted to first see post-holiday demand levels before deciding exactly how to plan their strategies.

R o u n d s

0.005-0.15 cts, d-J / pique, mediocre demand 0.005-0.15 cts, d-J / Vs+, slow 1/5, G-K / sI+, mediocre demand 0.25-0.90 cts, white / pique, selling 0.25-0.90 cts, d-K / sI+, good makes, mediocre demand 1.00-3.00 cts, white / pique, including goods for treatment, selling 1.00-3.00 cts, G-K / sI+, good makes, selling 1.00-5.00+ cts, d / IF, slow 4.00 cts, G-L / Vs-sI, slow 4.00 cts, G-L / VVs, slow

F a n c y c u t s Princesses, Pears and Emeralds, 1.00-3.00 cts, G-L / sI+, selling Princesses and cushions, 0.50-3.00 cts, F-K / sI, selling Marquises, asschers and Hearts, 1.00-10.00 cts, G-J / sI+, slow all fancy cuts, 1.00-5.00 cts, fancy colors, slow

HonG KonGThe Hong Kong diamond market showed a considerable rebound ahead of the holiday season. This gave traders an important opportunity to press ahead and to make the best of what was otherwise a slow market.

New demands were coming in from the neighboring countries. Sellers were not in the mood to insist on strong prices and were content to just have some marginal profits. Traders in Hong Kong were not expecting a strong post-holiday season. Very few articles were moving and demands from neighboring countries, including mainland China, were slow as well.

R o u n d s

0.005-0.15 cts, white / sI2 to pique, selling 0.005-0.15 cts, d-J / sI1+, good makes, mediocre demand 1/5 cts, G-J / Vs+, mediocre demand 0.25-0.90 cts, white / pique, selling 0.25-0.90 cts, H-J / sI+, selling 1.00-10.00 cts, d-J / pique, slow 1.00-5.00 cts, d / IF, slow 1.00-3.00 cts, H-M / VVs-sI, selling 4.00 cts, H-L / sI+, slow, unless the prices were attractive 5.00-10.00+ cts, H-L / Vs-sI, slow, unless the prices were very attractive 5.00-10.00+ cts, H-M / VVs, slow

F a n c y c u t s

Princesses and Emeralds, 1/10-1/3, H-K / sI+, mediocre demand Princesses, Pears and Emeralds, 1.00-4.00 cts, H-K / sI+, mediocre demand Marquises, ovals and Hearts, 1.00-5.00 cts, H-K / sI+, mediocre demand tapers and Baguettes, 1/10-1/2 cts, H-J / Vs+, mediocre demand

121IDEX MAGAZINE | NO 272: MINING

PPETRa Q1 2013 REVEnUE +188%

etra Diamonds’ revenue for the fi rst quarter of fi scal 2013 increased 188 percent over 2012 to

$51.1 million. During the quarter, the company produced 654,690 carats, up 70 percent over the fi rst quarter of 2012. The production increase was mainly due to the inclusion of the Finsch mine, which was acquired during the fi rst quarter of fi scal 2012. The second tender of fi scal 2013 closed in early October 2012, and achieved sales of $45.8 million (326,261 carats). The company said overall prices per carat year-to-date continue to be in line with its 2013 guidance. “This is a further solid set of results, demonstrating that the company continues to deliver on its growth ambitions,” said CEO John Dippenaar. “Following the announcement of our successful debt fi nancing...Petra is positioned to

maintain its successful track record and continue on its path to 5 million carats per annum by 2019.” Petra said the recent “challenging labor relations environment” in South Africa, as well as brief work stoppages at certain South African operations in October, had caused some negative effect on production, but it believes the shortfall will be made up to some extent during the coming months. At this stage, there is no change to Petra’s 2013 production guidance of 2.85 million carats. When it came to rough sales, Petra said the market was essentially fl at in the fi rst quarter, which was in line with its expectations. Overall, the volume of diamonds sold was signifi cantly lower than the volume produced due to the seasonal timing of the company’s tenders; only one tender was held in the quarter due to the timing of industry holidays. IdEX

the cullinan Mine image: Petra Diamonds

mInInG

utting an end to months of speculation, BHP Billiton announced the sale of its interests in the Ekati

diamond mine and Diamonds Marketing to Harry Winston Diamonds for $500 million. The purchase price for the acquisitions will be satisfied from cash resources on hand and from new debt financing arranged with The Royal Bank of Canada and Standard Chartered Bank. The financing will comprise a $400 million term loan, a $100 million revolving credit facility (of which $50 million will be available for purposes of funding the Ekati acquisition) and a $140 million letter of credit facility in support of the Core Zone environmental reclamation bond.

P

Sold! Ekati MinE Bought By harry Winston

As part of the transaction, all BHP Billiton employees working at Ekati in Yellowknife and in Diamonds Marketing in Antwerp will become employees of Harry Winston. “Completion of this acquisition will bring the opportunity to marry our Canadian diamond sorting and marketing skills with an experienced mine operating and development team, a world class operating asset, and future growth potential,” said Harry Winston chairman and CEO Robert A. Gannicott. “Together with our existing mining business, these assets will serve as our platform for sustained, disciplined growth in the upstream diamond sector.”

Completion is expected in the first quarter of calendar year 2013. “Harry Winston has long experience in the Canadian diamond industry and their commitment to study further development at Ekati could help extend the mine’s contribution to Northern Canada for many years to come,” said BHP Billiton Diamonds & Specialty Products president Tim Cutts. The current Ekati mine plan calls for a further seven years of production, but there are additional resources that could become economically viable with increased diamond prices. Explaining the decision to exit the diamond business, Andrew Mackenzie, BHP Billiton chief executive Non-Ferrous, remarked: “The divestment of Ekati is consistent with our focus on large, long-life, low-cost, expandable, upstream assets and, together with the recent sale of our interests in Richards Bay Minerals and Yeelirrie, reflects our ongoing pursuit of a simpler business.” The Ekati diamond mine, Canada’s first, is located 310 kilometers northeast of Yellowknife and 200 kilometers south of the Arctic Circle. It is situated near the Diavik diamond mine in which Harry Winston holds a 40 percent interest. IdEX

Visit WWW.IDEXONLINE.COM

For LiVE uPDatEs

122 IDEX MAGAZINE | NO 272: MINING

MINING

io Tinto produced 3.71 million carats of diamonds during its third quarter. The 5 percent year-over-year

increase is mainly credited to higher grades at Argyle. The company said that compared to the second quarter of the year, production increased 3 percent. In the first nine months of 2012, the company mined 9.9 million carats, up 13 percent year-over-year. At 2.45 million carats, production at Argyle was 7 percent higher than during the corresponding third quarter period of 2011. According to company sources, production was 46 percent higher than the second quarter of 2012 due to a combination of access to a high-grade region of the pit and increased plant reliability. The miner said construction of the Argyle underground mine is proceeding and production is scheduled to commence in

R

RIo TInTo:DiaMonD ProDuction uP, But goLD DoWn

the first half of 2013, with ramp-up to full operation to be completed by 2015. Rio Tinto’s 60-percent share of production from Diavik was 1.16 million carats, which was in line with the corresponding period of 2011. Production was 8 percent higher than the second quarter of 2012. Production at the Murowa mine in Zimbabwe totaled 92,000 carats, a 27.8 percent year-over-year increase. In 2012, Rio Tinto’s share of production is expected to be 12.6 million carats. While diamond production was improving, gold mining was shrinking. Rio Tinto mined 68,000 ounces of gold in the quarter, a 59.8 percent drop. Year-to-date production of 222,000 ounces of gold represents a 56.9 percent decline. IdEX

the Murowa Diamond Mineimage: rio tinto Diamonds

the cullinan Mine image: Petra Diamonds

123IDEX MAGAZINE | NO 272: MINING

MINING

GEm dIamondS rEPorts Q3 DouBLE-Digit PricE DEcLinEs

tornoway Diamonds has received a 20-year mining lease from the Quebec Ministry of Natural Resources

to operate its Renard project. While Stornoway still needs a certificate of authorization from Quebec’s environmental department before it can begin constructing the mine, CEO Matt Manson said he expected it to be issued by the end of the year. The mining lease has been issued despite analysts’ concerns that the recently-elected leftist Quebec separatist PQ party would block the project. Immediately after taking power in September, the new government announced a moratorium on hydraulic fracturing or “fracking” for natural gas, a technique that is believed to harm the environment.

S

SToRnoway rEcEiVEs 20-yEar Mining LEasE For rEnarD ProjEct

Environmental issues have brought about tough decisions on nuclear power and mining in particular and have resulted in an overall shift to the left in political outlook. Manson said, however, that for Stornoway, it was “business as usual” and that he did not foresee any fundamental change in overall mining policy. Although it is still waiting for final approval, Stornoway has already embarked on a study to optimize Renard operations and cut costs of the proposed combined open pit and underground mine. The miner recently brought on board a syndicate of banks as part of a $482 million debt mandate to fund Renard. IdEX

difficult global economy and industry market led to a decline in the price achieved for production from

the Letšeng mine in the third quarter, Gem Diamonds announced in an interim management report. The Lesotho mine’s production achieved an average value of $1,673 per carat (p/c) in the third quarter, a 31 percent year-over-year decline. Ten rough diamonds fetched more than $1 million each, compared to 15 during the third quarter of 2011. Only 34 diamonds sold for more than $20,000 p/c, compared to 50 a year ago.

a Diamonds selling for more than $20,000 contributed 58 percent of Letšeng’s production value in the first three quarters of 2012. The company has sold 116 such diamonds since the start of the year. Although prices have declined, the mine produced more “specials” - diamonds weighing more than 10.8 carats. Letšeng produced 180 of these diamonds in the third quarter, compared to 171 a year ago. At the Ellendale mine in Australia, production increased by 28 percent to 41,680 carats. The Ellendale goods sold at an average of $618 p/c, a decline of 39.1 percent. Under its Ellendale purchase agreement, Tiffany & Co. paid an average of $3,902 p/c for the fancy yellow diamonds, 24.3 percent below the average price paid in the third quarter of 2011. “The diamond mining industry continued to experience rough price headwinds during the period from the ongoing global financial turmoil and uncertainty. However, from October 2012, rough prices have begun to show a more positive trend,” said Gem Diamonds’ CEO Clifford Elphick. IdEX

124 IDEX MAGAZINE | NO 272: MINING

MINING

IDEX MAGAZINE | NO 272: PROFILE128

PROFILE

What are the company’s long-term goals? To continue to increase sales, provide superb customer service, provide great products and create an overall environment that is uniquely positive.

What are the greatest changes you have seen since you joined the industry? In 1969, when I started working in the business full time, diamonds were evaluated using an unwritten and somewhat “mysterious” formula that I was lucky enough to have explained to me by my father. When the Rap List was created, I discovered that there was a similarity between both pricing systems. I always found that intriguing and I considered it a form of improving the tradition. Another great change was the development of photospectronic technology to analyze “light performance” in diamonds.

What would improve your business in the future? The stronger the economic climate, the stronger our business. People in our market love jewelry.

What is the most difficult business decision you have ever had to make? In 1989, we decided to merge three locations into a brand new super-sized store. We took a chance that one store could be more successful than the previous three stores. We gambled, and we won!

How does the company give back to the community? We support many charitable and civic organizations by sponsorships and generous in-kind donations.

What is your greatest regret? Professionally, that my father didn’t live long enough to see how our firm has evolved. Personally, I wish that I would have met Kelly, the lady I married last year,

earlier in my life than I did. Oh well, better late, than never!

What is your greatest accomplishment? That I took the reins of our business founded by my grandfather and guided it to its 108th year anniversary. I’m also proud that I have lived my life and conducted myself in a way that, when I lay my head down at night, I truly have peace and contentment.

What word or phrase do you overuse? “I hope I didn’t keep you too long.” (I tend to be a little long-winded!)

Who do you most admire and why? My late grandfather, Samuel Gordon, because he came to the U.S. with nothing, went to work for a diamond cutter in New York, traveled to Oklahoma and started his business with a dream and a plan to work hard.

What would you take with you to a desert island? My wife Kelly, photos of my son Daniel and his family, a pair of drumsticks, and a copy of Lonnie Mack’s record called Chicken Pickin.

What is the best piece of advice you have ever received? “One can give in occasionally, one can give out occasionally, but one should NEVER give up!”

If you could do any job other than the one you do now, what would it be? I’d probably be on the business side of the entertainment industry, perhaps as an accountant for an artist management organization.

What is your idea of perfect happiness? Spending time with my wife Kelly and my three grandchildren, listening to great music and looking at diamonds of any shape, size or color.

NAME

POSITION

COMPANY NAME

TYPE OF BUSINESS

YEARS IN BUSINESS

COMPANY SIZE

BUSINESS PHILOSOPHY

Gary S. Gordon

CEO

Samuel Gordon Jewelers

Retail jewelry

108 years!

12,000 square feet, 26 employees

Always take care of our customers, our employees, our vendors, our reputation, ourselves, and everything should work out nicely!

A DV E RT I S E R S ’ L I S T

580 Building 126

5C-Group 4

Almor Designs 28

Aloni Diamonds 39

Anavi Diamonds 84

Ankit Gems 17

B.V.C. & Co. (India) Pvt. Ltd. 26

Bngkok Gems & Jewelery Fair 125

Bhavani Gems 47

Briza Diamonds Ltd. 122

D. Navinchandra 15

DDS - Direct Diamond Solutions 31

Dharmanandan Diamonds 43

Diamond India Limited 22

Dimexon Diamonds Limited 83

Elefant Diamonds LLC 25

Eurostar Diamond Traders N.V 82,132

G4S 80

GemeWizard 75

GIA - Gemological Institute of America 57

GSI International 40

Hari Krishna Exports 9

HRD Antwerp 71

Ideal Brilliant 19

IDEX Diamond Trading & Prices 65, 129

IDI - Israeli Diamond Institute 68

IGI - International Gemological Institute 79

Instore Magazine 118 -119

Interjewel Pvt. Ltd. 10

International Gem Tower 2

J. Pinchasi & sons 51, 53

Ketan Brothers 16

K. Girdharlal 45

Karp Group 8

Kiran Gems Pvt. Ltd 11

Komal Gems NV 21

Kristall Production Corp. 3

Leo Schachter 49

M. Suresh 120

Malca Amit 77

Manak 127

National Jeweler 81

Ovadia Diamonds 14

Palakiss 18

Priti Gems 89

Rosy Blue NV - Insert 82/83

Royal Gem 36

Rubel & Ménasché 131

Sahar Atid Diamonds 5

Sheetal Manufacturing 13

Shree Ramkrishna Export - Insert 50/51

Stuller 6

Taché 7

The Jeweller Magazine 20

World Wide Security 88

Y.L. Golan 12

YDI 61

ADVERTISER PAGE ADVERTISER PAGE

IDEX MAGAZINE | NO 272130

idex magazine, december 2012

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