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.
Hong Kong Jewellery Magazine takes an in-depth look at the adjustments the diamond industry is, or should be, implementing in order to accommodate the changing economy and consumption habits in an environment where the diamond industry "at large is under the gloom of the stagnant economy that impedes buying sentiments in end consumers." With the assistance of three industry insiders - Erik Jens, head of the diamond and jewelry division at ABN AMRO Bank, Nissan Perla, founder of Olympic Diamond and the Diamond Registry, and Lawrence Ma, chairman of the Diamond Federation of Hong Kon
In his latest installment, diamond industry analyst Ehud Arye Laniado looks for a plausible answer to the following question: if consumer demand for polished diamonds is not rising, and inventory of said stones is not decreasing, what explains the currently strong - even "hot" - demand for rough diamonds? To give an example: "During De Beers’ Sight last week, the company raised prices by 2-4% on average, according to traders. Sightholders that chose to sell rough diamonds from the Sight reportedly sold them for higher premiums.
In his monthly column, Polished Prices' Charles Wyndham compares the diamond industry's performance to that of the Dutch women's hockey team at the recently held Olympics which, despite being the better team, managed to lose in the final. "Our industry is performing a bit like Holland. It holds all the aces but only manages to lose," he writes. "I have written before about the abysmal comparative performance of diamonds compared to either any other comparative commodity and also to other luxury goods.
Excelsior Capital Ventures (ECV) LLC is to provide "substantial liquidity" to the mid-stream diamond and jewelry industry. The New York based firm, founded by Nehal Modi, said it expects to begin lending operations on October 3 and will provide loans secured by diamond and precious metal inventories, according to a statement. Modi said, "We are in an environment where the diamond and jewelry industry is experiencing a significant contraction in lending. There is a dire need for new capital and greater liquidity in order to expand the companies and industry at large."
Comparing the current mentality of the diamond industry - in particular the midstream manufacturers - to that of mass production in the textile industry, Ehud Arye Laniado argues that the way to restore dwindling profitability is by restoring the luxury aspect of diamonds, and not by slashing labor costs, seeking favorable tax regimes and free trade zones. "How is it possible that an industry that manufactures luxury products is operating as though it provides low cost, price-point driven items?
In a major, even historic development, the United States will be guaranteeing loans to diamond manufacturers in Botswana. Overseas Private Investment Corporation (OPIC), the U.S. Government's development finance institution that, "mobilizes private capital to help solve critical development challenges and in doing so, advances U.S. foreign policy", has today issued a press release announcing a financial partnership to provide access to credit for Botswana’s diamond cutting and polishing industry.
Botswana's Minerals, Energy and Water Resources Minister Kitso Mokaila told parliament that two of the country's cutting and polishing firms closed down at the end of last year leaving just 19 such operations. Local manufacturers have been hit by the value of rough diamonds supplied to them dropping by nearly half in 2015 due to Botswana's reduced output and soft global demand. Mokaila said the value of rough diamonds supplied to the local cutting and polishing industry dropped to $502 million in 2015 from $936 million the year before.
Russian diamond mining giant ALROSA has proposed measures to support the country's domestic diamond-cutting and polishing industry through cost-cutting and other steps, ALROSA vice-president Rinat Gizatulin told Interfax. "We considered the amount of additional revenue that ALROSA received as a result of the abolition of duty, which is about 10-11 billion rubles a year. We do not plan to reduce diamond prices after September 1 due to the abolition of duty, we will keep them at the same level. But we plan additional savings, which will be accounted for in the company's budget.
De Beers has selected five black-owned cutting and polishing companies for special attention towards meeting the South African government’s demands for beneficiation of the country’s mineral wealth, writes Business Day. Mpumi Zikalala, a director of De Beers Consolidated Mines – the South African division of De Beers – said the companies would receive assistance and "bespoke" rough diamond supplies to ensure they could compete locally and overseas.
For the past three days a delegation of leading jewelers and diamond traders from the United States have been getting acquainted with their counterparts in Antwerp, enjoying a behind-the-scenes look at the diamond capital and doing business at high-level networking events.
With the abolition of the 6.5% export duty on rough diamonds fast approaching on September 1, writes Kommersant Daily, the Russian diamond cutting industry is asking the government to provide large-scale support to withstand competition on international markets - in particular from Indian diamond manufacturers.
Citing a publication from The Associated Chambers of Commerce & Industry of India (ASSOCHAM India) - which together with the Thought Arbitrage Research Institute published a study titled "Gems & jewellery industry: Contributing to Make in India" - Rapaport News writes that, "Salaries in India’s gem and jewelry sector are half of those in other industries, according to a report that highlights a labor shortage driven by rock-bottom pay and dangerous working conditions. Workers in the industry earn an average of $3,
Rapaport News' Avi Krawitz interviewed recently appointed president of the Jewelers Board of Trade (JBT) Tony Capuano, who discussed the health of the U.S. jewelry market, bank lending, Millennials and the JBT itself. Capuano noted the continuing trend toward consolidation and declining numbers of retailers in the U.S. jewelry market. "The industry continues to contract and consolidate. There are still 29,000 jewelry companies across the U.S., of which about 21,000 are retailers. Our data shows 700 retailers left the industry in the 12 months to the end of the first quarter.
Drawing a worrying analogy between the film The Big Short (2015) - which depicts how everyone took part in the ultimately disastrous play on U.S. subprime mortgages even though the fundamental truth was, or should have been, known to those familiar with the mortgage market - and the current trend in the diamond market, Ehud Arye Laniado issues a warning about ignoring the lessons learned as a result of the diamond downturn of 2015.
Diamond industry veteran and chairman of one of - if not the - world's leading diamond companies for solitaires (single-stone rings), Venus Jewel, Sevanti bhai Shah paid a visit today to the Kring in Antwerp, the world's only dedicated rough diamond bourse, where he spoke to a crowd of nearly 200 diamantaires.