Galatea Ltd., a wholly-owned subsidiary of Sarine Technologies Ltd, is taking legal action against a manufacturer in Surat, India, for their allegedly fraudulent use of Sarine's Galaxy® inclusion mapping technology and systems, the company said in a statement. Galatea claims the company has been practising deliberate under-reporting of rough stone weights and underpayment of amounts owed to Galatea for the scanning of the rough stones.
Bain & Company, together with the Antwerp World Diamond Centre (AWDC), has published their seventh annual report on the global diamond industry, "The enduring story in a changing world", covering industry developments in 2016 and the first half of 2017 as well as the challenges the industry faces and how it is turning them into opportunities. Their report looks at key issues along the value chain, from rough-diamond production and sales, to midstream performance and global diamond jewelry demand in major markets.
High jewelry houses are increasingly going straight to the source to acquire rough diamonds that they will turn into their beautiful creations, writes Ming Liu in a feature for CNN. Typically, the larger category of rough diamonds are obtained by specialist diamond cutters and polishers who analyze each stone to determine the ideal cut in which to shape them, and only after this process are the polished gems usually presented to high jewelry houses.
Jean-Arthur Régibeau, Ambassador Extraordinary and Plenipotentiary of the Kingdom of Belgium to the Russian Federation, visited the United Sales Organization (USO) ALROSA, and one of Russia's leading diamond cutting facilities - DIAMONDS ALROSA. He met with the heads of subdivisions and got acquainted with the process flow and work principles - and also was shown the amazing Dynasty Collection. “It was a familiarization visit.
The Times of India this past weekend was the bearer of somber news from the Surat diamond industry, writing that, "Most of the small and medium diamond manufacturers have literally stopped the manufacturing of diamonds ahead [of Diwali] and are waiting to down their factory shutters early." With Diwali coming on October 19 (compared to October 30 last year), De Beers CEO Bruce Cleaver was optimistic as rough diamond sales in Cycle 6 (ended 31 July) surged to $572 million.
The Russian government wants Alrosa to offer more favorable terms to local cutters so they are able to compete in a market that’s dominated by Indian manufacturers.
Alrosa has chosen to focus on mining, where it can get bigger margins, leaving Kristall Production Corp. and other cutters to buy stones at similar terms as overseas competitors. They are struggling to compete with centers like India, the largest polishing center, due to manufacturing being cheaper - it manufactures 90% of the world’s diamonds - and a workforce of 1 million.
According to an article in The Kommersant Daily, Russia's Ministry of Finance has prepared a 'roadmap' for the development of Russia’s diamond manufacturing industry, which could become one of the biggest reforms in its history. "In particular", the news agency writes, "it is said to be aimed at serious mitigation of state regulation and reducing the tax burden on Russian diamond manufacturers, as well as at expanding their access to raw materials. This threatens to revise the marketing and investment policy of ALROSA and add to its financial burden.
CEO of the Zimbabwe Consolidated Diamond Company (ZCDC), Dr. Moris Mpofu, last week described plans for reversing the resource curse in the country's tumultuous diamond industry with the creation of a multinational diamond park in Mutare - Zimbabwe's fourth-largest city situated on its eastern border.
India's recently-adopted goods & services tax (GST) of 3% on polished diamonds, 5% service tax and 0.25% on imported rough diamonds is making life challenging for the country's 50,000 small and medium diamond manufacturing units in Gujarat, employing up to 200,000 workers. The Economic Times, citing Praveen Shankar Pandya, chairman of the Gem & Jewellery Export Promotion Council (GJEPC), reports that due to increased compliance requirements and uncertainty over when they will get input credit refund, the viability of many of these small units is uncertain.
Russia's ALROSA has appointed Pavel Vinikhin as director of DIAMONDS ALROSA – ALROSA’s cutting and polishing division, one of the largest diamond manufacturers in Russia, the company announced in a press release. In April 2016, he was appointed as deputy director for marketing of DIAMONDS ALROSA, and headed ALROSA Diamonds Ltd, a cutting and polishing factory in Barnaul. He has been managing DIAMONDS ALROSA since October 2016, when he was serving as acting director.
Diamond trader and brick & mortar crusader Melvin Moss is back at his provocative best in his most recent diatribe, "The #Diamond Family is Dysfunctional". He argues that major diamond miners producing too much rough at prices unsustainable for the rest of the industry (which deals with underpriced polished) and are extending their reach across the pipeline at the expense of everyone else - particularly retailers. "The diamond pipeline is dysfunctional", he writes. "Miners have a primary obligation to their shareholders.
The market for recycled diamonds has grown substantially in the last decade following the financial crash of 2008, and though it is hard to guage the market as a whole due the less-than-transparent avenues through which they are bought and sold, estimates are that the trade in recycled diamonds is now worth between five and ten percent of the global market - or approximately $1 billion - and is expanding. Abraham Dayan, writing for Rough-Polished, looks at some of the players in this growing market, the advantages it provides for manufacturers in need of affordable supply and retai
Innovation is the key to sustained success, even for a traditional industry such as the diamond trade. Successful innovation, however, starts with questioning what we do and why we are doing it.
Sarine Technologies introduced the latest version of its rough planning software tool, AdvisorTM 7.0, which has the capability to fully atomize the rough planning process. This version includes several new and enhanced features designed to enable diamond manufacturers to, “further streamline the planning process and optimize the polished yield”.
The Indian government’s decision to impose a 0.25 per cent tax on rough diamond imports under the goods and services tax regime (GST) in order to ensure traceability of diamonds will hurt India’s competitiveness, according to diamond industry representatives. India’s Gem & Jewellery Export Promotion Council (GJEPC) criticized the government’s decision to tax rough diamond imports, claiming it will damage the nation’s manufacturing sector, and is urging the government to reconsider its decision.
The 36-year-old son of one of Russian President Vladimir Putin’s close allies, Sergey Ivanov, acknowledges that some people may be skeptical about how he landed his latest job as CEO of the world's largest diamond mining company, write Bloomberg reporters Yuliya Fedorinova and Irina Reznik, but he is learning the trade and, "plans to win over investors by focusing on reducing costs at the state-controlled diamond producer." And his cost-cutting starts at the top, as Ivanov says he, "reduced my salary and overall compensation by 20 percent" and apparently declined certain benefits t
Rapaport has issued a press release on the current rough and polished diamond markets, which boils down to the following: "Amid sluggish polished markets, rough trading remained strong." The second quarter of the year is typically a slow period for diamond trading, and April this year proved no different.
Prime Minister of India Narendra Modi on Monday was on hand at the ‘Hira Bourse SEZ’ in Surat for the inauguration of HK HUB, Hari Krishna Exports' new diamond manufacturing facility. HK Hub features three buildings that will focus on cutting larger diamonds,Addressing the inaugural function with an estimated at 20,000, Prime Minister Modi urged the diamond industry in Surat to take a lead in making the country as number one in the gems and jewelry sector, saying, “We have become number one in diamond cutting, but now is the time we should become number one
Kiran Gems, based in Surat, India, which is said to be the world's largest diamond manufacturing firm and among the top three jewelry suppliers to the U.S., is continuing its corporate restructuring by offloading several subsidiaries in the U.S. and Hong Kong. Kiran Jewels Inc., Unique Design, SDIL and Prestige, which are located in the United States, and Kiran Export Hong Kong will no longer belong to the Kiran Gems Private Limited group of companies. The company's announcement states that the restructuring will technically end all the relations between these companies and Kiran Gems Pvt.
Back in September 2016, ALROSA announced a partnership with Indian company KGK Diamonds Private Ltd, a global leader in diamond cutting, to develop cutting and polishing facilities in Eurasian Diamond Centre in Vladivostok.
"Just last week, Yury Trutnev [Deputy Prime Minister and Presidential Envoy to the Far Eastern Federal District] held a meeting to support the Russian diamond-cutting industry, and a number of decisions were made that will help the Russian diamond-cutting industry to overcome the crisis and compete with foreign companies. The issue of developing Vladivostok on the basis of a free port was discussed at the meeting, and Vladivostok will develop as a diamond center.
Bulgari, an LVMH-owned jeweler and watchmaker, announced the opening of its new jewelry manufacturing facility in Valenza, Italy, a mere 18 months since the foundation stone was laid. It is one of the largest expansions of Bulgari’s exclusive “made in Italy” manufacturing network. Bulgari strategically chose Valenza, famous for its goldsmith history and the Cascina dell’Orefice (est. 1817), as the location for the new site, which they expect to create an additional 300 jobs by 2020.
Diamond industry analyst and author of the Zimnisky Global Rough Diamond Price Index, Paul Zimnisky, takes us on, "A Trip Through the Diamond Industry in March 2017." If there is one trip you make this weekend, we recommend this one.
Polished diamond prices are still soft at the start of 2017, with Rapaport's RapNet Diamond Index showing prices for the benchmark 1-carat polished diamonds down 1.2%, a trend confirmed by PolishedPrices, while IDEX noted a slight rise in February despite, "the downward path seen from mid-2016." Rapaport writes, "Diamond trading this February was slower than in previous years, with buyers pushing for deeper discounts and suppliers expecting firmer pric
Russia’s largest cut diamonds producer Kristall was included into the 2017-2019 privatization plan, a source familiar with privatization plans told Russia's TASS News Agency on Thursday. Kristall is Russia’s largest producer of polished diamonds and one of the largest diamond cutting companies across the globe.
Citing data from its RapNet Diamond Index (RAPI), Rapaport News writes, "Diamond manufacturing profits were squeezed in January amid strong rough demand while polished prices softened." Despite a disappointing holiday season, demand of rough is strong as jewelers will need to restock after the holiday season. This is demonstrated by De Beers' First Cycle sales of $720 million, its largest sight since July 2014.
Jewelry manufacturer Samuel Aaron Inc. plans to shut down its operations in Mount Vernon, NY, with 42 jobs to be cut, reports Instoremag.com. Citing the Journal News, which in turn cites a filing with the state Department of Labor, the layoffs are slated to start April 12, with the closure of the plant set for later that month. Samuel Aaron produces DiamonLuxe simulated gemstone jewelry along with other products. Instoremag writes that Samuel Aaron, which has several hundred employees worldwide, is part of the Aaron Group.
Australia's Tychean Resources, a gold exploration and natural resource development company, has agreed to buy a 74 per cent stake in South African-based diamond company, Blom Diamonds, reports Australian Mining. The deal is reported to be worth up to $4.1 million (AUD 5.5 million).
Rio Tinto has appointed luxury Dubai-based jeweler Dhamani to become one of its Select Ateliers, an exclusive list of jewelers given direct access to Australia’s rare Argyle pink diamonds. The launch of this new appointment correlated with the brand’s new line of pink-diamond jewelry, the DPINK collection, showcasing more than US$25 million of Argyle pink diamond jewelry. “Dhamani are an exciting Middle East luxury jeweler with over four decades of heritage and superb craftsmanship,” said Josephine Johnson, manager of Argyle Pink Diamonds.
Sarine Technologies Ltd, a global leader in the development, manufacture and sale of precision technology products for planning, processing, evaluating and measuring diamonds and gems, reports that it has delivered a record 24 Galaxy-family inclusion mapping systems in Q4 2016, bringing the total number of 2016 deliveries to 84 systems (previous record year saw 48 deliveries). This figure also tops their former quarterly record of 22 systems sold in Q3 2016. The majority of machines sold were of the Meteor variety for small stones (0.25 to 0.89 carat).
Diamond industry analyst Avi Krawitz presents his thoughtful analysis of the year that was in the diamond industry 2016: "The Year Trust Returned to the Diamond Trade".
Rough diamond industry analyst Paul Zimnisky, whose Diamond Analytics website brings you the Rough Diamond Index, has assembled a Diamonds 2016 Year in Review quiz. Courtesy of Paul Zimnisky, we invite you, our dedicated readers, to test your knowledge of diamond industry developments in 2016 with this 20 question quiz.
Avi Krawitz of Rapaport News details a decision by the Israel Diamond Exchange (IDE) to enforce a new rule compelling a dealer to cancel the sale of a rough diamond after he failed to disclose that a stone underwent value analysis using a Sarine Galaxy machine. Krawitz has been informed it is the first ever enforcement of new guidelines the World Federation of Diamond Bourses (WFDB) adopted in May aiming to keep a level playing field between both parties trading rough diamonds.
After being shuttered for several years, New York-based company Almod Diamonds Limited says it plans on opening a diamond polishing and manufacturing factory in Yellowknife in as little as three months. The agreement was announced by Industry, Tourism and Investment Minister Wally Schumann Monday morning. “Diamond polishing and manufacturing is something that has created jobs and economic opportunity in diamond-producing jurisdictions all over the world,” said Schumann.
Botswana's diamond cutting industry faces another blow as more jobs are lost due to the fact India based Shrenuj, one of the largest diamond cutting and the single jewelry manufacturing facility in the country, is closing shop. Parent company Shrenuj & C° has been troubled by financial woes over the past months, with reports claiming some 20 Indian banks are said to have exposure to the groups entities amounting to US$450 million which Shrenuj is failing to pay back.
"Uncertainity looms large over the world's largest diamond cutting and polishing industry in Surat following the scrapping of the old Rs 500 and Rs 1,000 currency note by the government," writes the Times of India (TOI) on the sudden currency ban.
A diamond tycoon in India has again given away more than a thousand cars and hundreds of apartments to his staff as a bonus for meeting company targets. Savjibhai Dholakia, who runs Hare Krishna Exports, a diamond export firm in the city of Surat, announced his company would give 1,260 cars, 400 apartments and pieces of jewelry to his employees ahead of the Hindu festival of Diwali which falls on the weekend. “Our aim is that each employee must have his own home and car in the next five years.
The 20-day Diwali holiday vacation has already arrived for most of the small and medium diamond manufacturing units in in Katargam and Varachha, while units in Surat are just starting to shut down. According to The Times of India, "Industry sources said the polished diamond inventory is full and that most of the units had slashed the production by almost 30% in the last few months.
According to diamond pricing giant Rapaport, "Diamond markets were steady in September. The polished market was supported by relatively high rough prices as suppliers held polished prices firm, preferring to delay sales rather than suffer losses from expensive rough." The RapNet Diamond Index (RAPI™) for one-carat, GIA-graded polished diamonds declined 0.2% in September. The index dropped 2.7% in the third quarter and is down 2% since the beginning of the year. Prices for three-carat stones also remained flat at -0.2% after declining 1.5% in the third quarter and 9.8% for the year.
Opportunities for growth within our industry will not be possible if we, as industry players, do not work together through partnerships. If we do not engage as a region, we are at risk of a missed opportunity that might lead to regional competition, to the detriment of our industry. Whether we are regulators, producers, cutters and polishers or jewellery manufacturers, until we recognise and increase our interdependency as partners, we will never get our local diamond industry back on its feet.