The IDEX Online Newsletter, July 10, 2008‏

< JULY 10TH, 2008 >

Announcing IIJS 2008, August 7 - 11

IDEX Online Memo
Chaim Even-Zohar
Temporary South African Pain Relief
When government regulators mess up – and especially when they know it – they may quietly welcome court intervention to assure that things will remain workable.

Go to full memo

IDEX Market Report

Tamar Katzav, Natalie J Raps, Ronit Scheyer
The U.S. market is for the most part closed for its annual two-week summer vacation. In Antwerp, trade is mediocre, with a low number of both demands and overseas buyers in the market...

Go to full report

IDEX Online Research: Sterling Jewelers’ Q1 Results Under Stress Like most jewelers, Sterling Jewelers’ financial results are under stress in the current weak environment. Profits were down in the first quarter ended April 2008, while total sales were flat in the U.S., while same-store sales slipped by 4.7 percent.

(July 7, '08, KEN GASSMAN) Go to Full Article

DTC Price Hikes Wipe Out Premiums Rough diamond price hikes this week at the Diamond Trading Company (DTC) Sight resulted in very slim premiums in the secondary market. Traders are reporting a decreased level of trading and reduced premiums on DTC boxes.

(July 9, '08, EDAHN GOLAN) Go to Full Article

IDEX Online Research: Birks & Mayors’ High-End Position Helps Financial Results Despite price reductions in its Canadian jewelry stores, Birks & Mayors reported that total revenues for the quarter ended March 2008 were up 16 percent. More importantly, same-store sales rose by 2 percent. Because this luxury jeweler targets the high end consumer, it has felt less impact from a weakening economy, volatile financial markets and the consumer credit crunch than many other chain jewelers.

(July 10, '08, KEN GASSMAN) Go to Full Article

Shrenuj Posts 25% Growth in Annual Sales Diamond and jewelry manufacturer Shrenuj and Company Ltd. reported a 25 percent growth in its net sales for the fiscal year, with sales rising to Rs. 12.25 billion from Rs. 9.8 billion ($284 million from $227 million).

(July 10, '08, A JEWELBIZ INDIA REPORT) Go to Full Article

Gitanjali Annual Net Profit Up 69% Gitanjali Gems Ltd reported a 68.6 percent rise in net profits on a 19 percent rise in net sales during the 2008 fiscal year, the diamond and jewelry manufacturer reported in a statement to the Bombay Stock Exchange.

(July 10, '08, A JEWELBIZ INDIA REPORT) Go to Full Article

Signet to Transfer Shares to NYSE, HQ to Bermuda Signet Group plc is recommending the transfer of the entirety of its shares from the London Stock Exchange (LSE) to the New York Stock Exchange (NYSE), and, in parallel, the transfer of the company’s headquarters to Bermuda.

(July 10, '08, IDEX ONLINE STAFF REPORTER) Go to Full Article

Finlay to List Shares on OTC Bulletin Board Following NASDAQ Delisting Fine jeweler Finlay Enterprises announced Wednesday that it is in the process of transferring the quotation of its common stock to the OTC Bulletin Board (OTCBB), a regulated quotation service maintained by the Financial Industry Regulatory Authority.

(July 10, '08, IDEX ONLINE STAFF REPORTER) Go to Full Article

HRD Antwerp to Add ‘Excellent’ Cut Grade HRD Antwerp’s diamond lab is expanding its grading reports. Instead of reporting proportions and finish, starting January 1, the lab will assess the diamond cut according to three criteria, proportions, symmetry and polish. In addition, HRD Antwerp will add an ‘excellent’ cut grade on top of its ‘very good’ grade.

(July 9, '08, IDEX ONLINE STAFF REPORTER) Go to Full Article

New Grading Rules Released by IDC The International Diamond Council (IDC) has released a new version of the “IDC Rules for Grading Diamonds.” The organization said it is releasing it with the “explicit” purpose of providing updated nomenclature for polished diamonds.

(July 10, '08, IDEX ONLINE STAFF REPORTER) Go to Full Article

JCK New Delhi Takes Place as Market Experiences Slowdown JCK New Delhi opened against the backdrop of an industry slowdown both domestically and in exports. The response for the first three days reflected this, with fairly thin visitor traffic in the mornings, which picked up to some extent in the afternoons. “We have had some visitors,” said one exhibitor, “But the response is nowhere near what is expected.”

(July 7, '08, A JEWELBIZ INDIA REPORT) Go to Full Article

Abazias on Internet Retailer’s Top 500 List Online diamond and jewelry retailer Abazias has secured a spot on Internet Retailer’s Top 500 Guide for 2008, a ranking of the 500 largest e-retailers in the U.S., based on annual web sales. Abazias joins other jewelry retailers, such as Blue Nile, Bidz.com and Ice.com.

(July 10, '08, IDEX ONLINE STAFF REPORTER) Go to Full Article

Panama Diamond Exchange Aims for 200+ Members in Coming Year The Panama Diamond Exchange, formed in 2006 by a group of diamond dealers based in what has been called ‘the Switzerland of South America,’ has set a goal of signing over 150 new members in the next year. The exchange currently has 37 member firms and is processing 50 more.

(July 9, '08, RONIT SCHEYER) Go to Full Article

Gujarat: 15-30% Wage Hikes for Diamond Workers High tensions in the diamond manufacturing centers of Gujarat, which had been hit by labor disputes last week, have largely subsided as the sides have agreed to pay raises.

(July 9, '08, A JEWELBIZ INDIA REPORT) Go to Full Article

One Killed, Others Injured As Guards Open Fire on Protesting Diamond Workers An Indian diamond worker was killed during a demonstration outside a diamond factory in Bhavnagar, Gujarat, according to reports. The shooter, a private security guard, was taken into police custody.

(July 6, '08, IDEX ONLINE STAFF REPORTER) Go to Full Article

148 Striking Diamond Workers Dismissed According to reports in the Namibian press, 148 workers at Lev Leviev Diamonds’ polishing plant have been dismissed after three weeks of striking, and another 100 are expected to be served with termination notices in the coming days.

(July 9, '08, IDEX ONLINE STAFF REPORTER) Go to Full Article

DMCC, Thai Gem and Jewelry Association Cooperate to Boost Gem Trade The Dubai Multi Commodities Centre (DMCC) announced Wednesday an agreement signed with the Thai Gem and Jewellery Traders Association (TGJTA), making the Thai organization the first affiliate member of the Dubai Gems Club (DGC), a strategic initiative of DMCC’s Coloured Stones and Pearls Division.

(July 10, '08, IDEX ONLINE STAFF REPORTER) Go to Full Article

Jewellery Trade Dubai to Highlight Diamonds Jewellery Trade Dubai will highlight diamonds this year, as the country’s international and local diamond trade keeps growing, featuring a workshop program with presentations on diamonds, gold, pearls and gemstones.

(July 8, '08, IDEX ONLINE STAFF REPORTER) Go to Full Article

ICA to Hold International Gem Show in Dubai The International Colored Gemstone Association (ICA) will hold its first ever international gem show focused on the loose colored gemstone industry. The ICA International Gem Show Dubai 2008 will be held October 13-15.

(July 8, '08, IDEX ONLINE STAFF REPORTER) Go to Full Article

Colored Gemstone Sales Compliance Seminar by JVC The Jewelers Vigilance Committee (JVC) will present a seminar at the JA/NY Summer Show about disclosure and legislative issues with selling gemstones. “Color Gemstone Sales: Are You Compliant or at Risk?” will feature a panel including Christopher Smith, vice president and chief gemologist, American Gemological Laboratories, and JVC’s president, CEO and general counsel, Cecilia Gardner.

(July 9, '08, IDEX ONLINE STAFF REPORTER) Go to Full Article

The Instore Show Forms Advisory Panel The Instore Show has formed a show advisory board, composed of vendors and retailers, to help guide the event’s development. The group will meet for the first time in Chicago this month, while the show is scheduled from April 19 to 21, 2009 at Chicago’s Navy Pier.

(July 10, '08, IDEX ONLINE STAFF REPORTER) Go to Full Article

5% Average Price Hike Expected at July Sight Sightholders attending this week’s Sight in London will see prices raised by as much as 15 percent on certain boxes, most notably +1 carat goods. Overall, the price increase is about 5 percent.

(July 7, '08, EDAHN GOLAN) Go to Full Article

Auction of +10.8 ct Rough Diamonds Underway The Russian state repository (Gokhran) is holding its periodical open auction of special rough, of diamonds 10.8 carats and up, in Moscow this week. On offer are 187 lots, each with 1-3 rough diamonds.

(July 8, '08, EDAHN GOLAN) Go to Full Article

Rockwell Tender Fetches Average of $2,607 Per Carat Rockwell Diamonds’ fifth diamond sale for 2008, concluded June 30, realized a total of $6,967,850, on 2,672.92 carats, for an average price of $2,607 per carat. The production, which represented diamond production for most of May and the first week of June, was taken from the firm’s Wouterspan, Holpan, Klipdam and Saxendrift mining operations in South Africa.

(July 8, '08, IDEX ONLINE STAFF REPORTER) Go to Full Article

DDE Announces July Rough Diamond Tender The Dubai Diamond Exchange and Global Diamond Tenders DMCC will hold a tender of South African and Lesotho rough diamonds July 13-15.

(July 7, '08, EDAHN GOLAN) Go to Full Article

MIBA to Hold 2nd Rough Diamond Tender Société Minière de Bakwanga, MIBA sarl is organizing a tender sale of its production from the Mbujimayi diamond mine in Kinshasa, Democratic Republic of Congo. This is MIBA’s second tender; the first took place in April and reportedly went well.

(July 6, '08, EDAHN GOLAN) Go to Full Article

10% of Victor’s Production to be Manufactured in Ontario (Updated) Ontario’s Ministry of Northern Development and Mines announced Friday an agreement with De Beers Canada to expand the province’s diamond industry. The agreement stipulates that 10 percent the production at De Beers’ Victor Mine will be “made available for activities such as cutting and polishing in Ontario.”

(July 6, '08, IDEX ONLINE STAFF REPORTER) Go to Full Article

EC Opens Investigation into BHP’s Proposed Acquisition of Rival Rio Tinto The European Commission (EC) has opened an in-depth investigation into BHP Billiton’s proposed acquisition of Rio Tinto, it announced Friday. The move follows an initial investigation, which indicated that the proposed takeover “raises serious doubts as to its compatibility with the Single Market,” the EC said in a release.

(July 6, '08, RONIT SCHEYER) Go to Full Article

Element Six Fund to Support Alternative Uses for Synthetic Diamonds Element Six, part of the De Beers Group, has formed a $100 million joint venture fund to promote using synthetic diamonds in industrial applications such as artificial joints, microwave generation and electronics and water purification, it has revealed.

(July 8, '08, IDEX ONLINE STAFF REPORTER) Go to Full Article

Ice Age Diamonds May have been Transported South by Comet A recently conducted study on diamonds and precious metals found in the eastern U.S. proposes that the minerals might have been transported through the air by a 3-mile wide comet that hit Canada during the last Ice Age.

(July 8, '08, IDEX ONLINE STAFF REPORTER) Go to Full Article

Calendar
July 7 - 11, DTC Sight
July 7 - 11, Rio Tinto Rough Diamond Sales
July 21, Independence Day, Belgium
July 28 - 31, NDTC Sight

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