Sygma Diamonds Newsletter

Exceptional Diamonds Keep Fetching High Prices at Auctions

2008-12-16T10:21:00.000+01:00

A pair of pear-shaped D Flawless diamonds of 17.01 and 17.79 carats was sold on Thursday for $3,554,500 to a private buyer in New York. The duo, inscribed by Forevermark, are two out of about 50 high end polished diamonds that were sold in the past few weeks for good prices, despite the economic down turn.

The initial shock reaction that seemed to stunt purchases of high-end products - paintings, antiques, jewelry and diamonds - has largely dissipated, with top-end diamonds fetching at times even record breaking prices.

Just one day before above sale, the 35.56 carat grayish blue VS2 Wittelsbach Diamond sold at a Christie’s auction for $24.26 million breaking the record for an auctioned diamond. A few days before that, Christie’s magnificent jewels auction in Hong Kong sold only 63 percent of the lots, but total sales were 79 percent of the auction house’s estimates.

According to Rahul Kadakia, Christie’s Head of Jewelry, private buyers dominated the Thursday sale, acquiring all of the top ten lots.

How can these items, and a large number of other such diamonds, find buyers willing to pay $100,000 per carat and more at such times. Clearly, buyers with cash are seizing the unique opportunity to buy goods at a time when fewer bidders are around to push up prices. Dealers of large stones say the pair of D Flawless diamonds sold last week could have been sold for much more, at better times. Possibly twice as much.

Such diamond dealers are hard pressed for cash, and are willing to offer the goods for the chance to recover their costs.
Eighteen jewels sold for over $1 million at Christie’s New York in 2008, according to Kadakia.

Dear Mr. Rapaport

2008-11-17T10:12:00.000+01:00

Mr Rapaport,

I am an Antwerp diamond trader and manufacturer since 1984.
I have witnessed your rise during these 24 years, becoming gradually the Oracle
of the diamond trade, the most powerful person, the reference for the whole
diamond world, and I can only admire that.
For many years, your Rapaport List, was supposed to be a reflection of the market,
never perfect, but nothing is perfect, an opinion, and that was ok.
Last June, you changed all that, by raising the list by 25%, saying : this is not a raise, the premiums have to go down, customers, please don’t pay more etc .. you tried to have an influence
on the market, stop the speculation.
While your intentions were good, the results were dramatic.
Since you changed from being an observer to being a manipulator of the market, since you decided that you
wanted to be ‘Alan Greenspan’, things went from bad to worse.
Your recent price decreases have succeeded to scare away the last few buyers that were intending
to purchase diamonds, postponing or even cancelling their purchases, thinking that the list going
down, tomorrow they’ll buy cheaper.
For this, I don’t thank you.
Mr. Rapaport, your every move has a tremendous influence for the industry, please, in the future act
with more responsibility.

Ziv Knoll
Sygma Diamonds

Random Acts of Management

2008-11-06T10:32:00.002+01:00

I keep reading stories of CEOs of large companies who make hundreds of millions of dollars in stock options. There is some debate as to whether this is appropriate. One argument is that these CEOs are visionares, uniquely qualified to create spectacular stockholder value. Another possibility is that CEOs are just showing up and shuffling things around until something lucky happens. I'm leaning toward the "showing up and shuffling" theory.

I'm not saying CEOs are dumb. Put yourself in their shoes. When you're a CEO, the only information you have is what your subordinates give you. And they're all unscrupulous sycophants. The last thing you'd ever hear is the truth. So there you are, a powerful CEO astride some mammoth enterprise, armed with no useful information whatsoever. You know you have to do something but there's no way to know what. Your only rational strategy is to do random things until something lucky happens, then take credit.

The alternative - acting nonrandomly - is a sure loser. Let's say, for example, you're a CEO and you fire everyone whose last name starts with the letter M. That's a clear pattern, and not a good one. Everyone would think you were a nut. You see, when you don't have a good strategy, any activity that looks like a pattern just makes you look bad.

Conversely, if you act randomly, reorganizing for no particular reason, promoting idiots, merging unrelated businesses, spinning off a few divisions - that looks like leadership. It's leadership for the simple reason that your employees never would have made those changes on their own. Later when something lucky happens, you can take credit. If nothing lucky happens, call it a transition period.

I wonder what CEOs say to their spouses in private. Do the CEOs begin to believe that their management decisions are connected to the results? I bet they do. It probably sounds like this:

CEO: "Honey, I fired my VP of marketing because I didn't like his shirt, and our stock went up a point!"

Spouse: "Didn't the Fed lower interest rates today?"

CEO: "Try to stay on the topic."

posted by Dilbert

DTC July Price Increase

2008-07-09T12:46:00.002+02:00

De Beers Trading Company (DTC) increased prices for rough goods by an average of a little more than 5 percent at its July 7-11 sight, the sixth of the year. Prices for better goods that produce polished weighing more than 1 carat went up as much as 15 percent.

HRD Antwerp Provides First Advanced Polished Diamond Grading Course in Surat

2008-07-09T08:56:00.002+02:00

HRD Antwerp organized a special workshop on Advanced Polished Diamond Grading for the executive staff of India's Blue Star Company from April 21 to 29 in Surat, India's major diamond processing centre. The aim of the training was to compare the HRD Antwerp grading system with Blue Star's working methods. In this way, employees are better able to understand the details of HRD Antwerp certificates.

The course handled the four C's: cut, clarity, carat, and colour in detail, and orientated to the practice of everyday work. The participants in this course were highly skilled employees with a high degree of professionalism and many years of experience. These included directors, managers, diamond planners, quality checkers, and graders from the different departments.
Altogether there were four groups of 18 employees. The course participants commented that the intensive training provided by the course had been of great practical use to them, and that they would be able to apply it to their work.

De Beers Announces Price Increases

2008-04-30T09:24:00.002+02:00

De Beers in a letter to clients last week said it had increased prices by an average 8.5% since the start of the year, including this week's Sight or sale.
"Overall, the cumulative effect of the Sight by Sight changes to our list prices over the first 4 Sights of 2008 (including the April/May Sight) will have been an average of +8.5%", the letter said.
Rio Tinto and BHP Billiton are also said to have raised price this month, highlighting the continued strength of the rough market.

March Diamond Prices Continue to Rice Sharply

2008-04-04T10:29:00.002+02:00

Global diamond prices continued to march upward at an increasing rate in March. On a year-over-year basis, polished diamond prices surged by 8.6 percent, according to IDEX. On a month-over-month basis; March 2008 vs. February 2008; polished diamond prices increased sharply by 2.0 percent. Both of these price increases are the largest since 2004, and they are greater than the record price gains last month.

The sharp price increases in polished diamonds were driven by three-carat diamonds and larger.
While prices for on-half to two-carat stones increased more modestly than the larger stones, it is important to note that all key diamond sizes posted a price increase, year-over-year, in March.

There appear to be five key factors that are driving diamond prices sharply higher:

solid demand from most markets, except the U.S. and Japan.
rising costs throughout the diamond pipeline.
a weakening U.S. dollar, the international currency for the diamond market.
a global rise in the price of virtually all commodities which has spilled over into the diamond market.
stock market volatility, the last of which has caused some traders to move their wealth into diamonds, precious metals, and other assets that may hold their value, until the financial markets recover.

The big question is this: will these diamond price increases hold at retail, or will merchants negotiate them down?

Even though the U.S. is in a recession, demand from other regions of the world is expected to push diamond prices higher during 2008. As long as the demand for diamonds and diamond jewelry remains strong, especially in emerging markets, prices are expected to rise. Further, since rough diamond prices have been rising faster than polished diamond prices, there is ongoing pressure to pass along those price increases.

De Beers Loses $521 Million!

2008-03-26T10:10:00.002+01:00

De Beers net earnings fell into the red from a profit of $730 million in 2006 to a LOSS of $521 million in 2007. Diamond sales fell 3 percent to $6.4 billion.
In the year 2007, where prices and sales of diamonds were very strong, for every well managed company in the world, we can ask ourselves, how come De Beers in its dominant position, is unable to generate profit? Accounting schwindle? Bad strategy or incompetent management?

Opportunities in The Diamond Industry

2008-03-25T11:33:00.002+01:00

The diamond industry is undergoing a period of great opportunity and challenge as a rapidly expanding global economy creates unprecedented wealth.
Demand for large, fine quality diamonds has increased significantly over the past few years, while supply has remained stable due to natural scarcity.
In some instances scarcity and the resultant higher prices, have increased demand for very expensive conspicuous consumption diamonds.

HRD doubles working space at lab.

2008-03-25T09:44:00.002+01:00

HRD Antwerp NV, the subsidiary of the Antwerp World Diamond Center (AWDC), experienced a double-digit increase in diamond certification submissions for 2007. As demand continues to grow for HRD's lab services, the group inaugurated a much larger working space today, and intends to add more space this year.

"With this investment, HRD Antwerp proves its faith in the future and in Antwerp's leading role in the field of diamond certification", said Georges Brys, general manager of HRD Antwerp. "The centralization of all grading activities worldwide in our central office in Antwerp, has led to a huge volume and taxed the grading capacity of the lab in 2007. By the end of 2008, the physical working space of the diamond lab should be doubled."

Guess who bought the 84 ct.

2007-11-19T14:59:00.000+01:00

The 84.37 ct. sold at Sotheby's auction to Guess clothing company founder Georges Marciano for just under $16.2 million.
Marciano's winning bid, made by telephone, came to $16,189,769 including the buyer's premium.
Just short of the all-time auction record for a stone or a piece of jewelery. This record is still held by the same Sotheby's branch in Geneva for a 100.1 ct. diamond that fetched $16.5 million in 1995.
Ron Cohen, the owner of the Los Angeles based Clean Diamonds and a Sygma Diamonds associate, was the seller of the gem. Cohen said he purchased it from Angola's National Diamond Company two years ago, and knew immediatly he had found something special.
"I only hope I will one day come across another stone like that one" he said.

Sotheby's to auction most impressive +84ct diamond

2007-10-19T10:24:00.000+02:00

Sotheby's Geneva will offer a magnificent84.37 carat, brilliant cut, D flawless, diamond for auction during its Magnificent Jewels in Geneva on November14.

The diamond is the largest brilliant cut diamond of top quality to appear at auction and is estimated at $12-16 million. The diamond has received the highest possible grading from the GIA with the report listing the stone D-color, Flawless Clarity, and Excellent Polish and Symmetry.

Sotheby's stated the impressive diamond doesn't have a name, but the future owner would hold the privilege. Sotheby's Geneva has in the past sold "named" diamonds, including the Star of the Season (100.10 ct.) which was sold for $16.5 million back in May 1995. It remains the most expensive jewel ever to have been sold at auction.

Together with other highlights from the Geneva sale of Magnificent Jewels, the 84.37 ct. diamond will be on view in Hong-Kong October 3-8; Paris October 11-12; New York October 14-17; Rome October 18-19; Los Angeles October 22; London October 24-26; Dubai October 29-30; Bahrain October 31 through November 1; and in Geneva November 10-13.

Diamond prices to touch record highs in coming months?

2007-10-17T10:21:00.000+02:00

According to Hochreiter Finance Group, diamond prices are expected to hit "new highs" over the next 12 months, as the divide between supply and demand widens.

"If you are actively involved in the production and sales of diamonds, the future looks extremely bright."
"Global diamond sales reached $72 billion in 2006-an increase of six percent."
"All this is being driven by the US, which account for about 43% of sales, but new trends are appearing."

"In China about 40% of the women are now getting married with diamond rings, and that trend is expected to increase significantly over the coming years."

"India is a rapidly strengthening sector with a growth rate of 26% last year, which will continue."

"Further, with the weakening US dollar, diamond demand tends to pick up in other countries."
"So as demand increases and supply decreases, the market will balance itself by sharp increases in the price of diamonds from the next year through to 2015."

All this according to HFG who also predicts the supply decline in many of the world's major diamond producing countries will continue, with Botswana production expected to lose about $460 million in production; Russia $ 260 million and South Africa $ 160 million between 2005 -2015.

Antwerp 2007 Diamond Conference

2007-10-17T09:37:00.000+02:00

The gala dinner, with Princess Mathilda in attendance, provided two interesting speeches.
Johnson Seirlieaf, the president of Liberia, stressed the tough situation of her country.
Only recently the international community allowed it to start export its rough diamonds after years of strife. Underlining the country's situation, she expressed appreciation for a quarter of million dollars contribution to help set up rough diamond facility, an amount most countries can afford to spend very easily.

No doubt the star of the evening was Sir Bob Geldof, who delivered a fiery speech.
"A cow in Europe, an unnecessary cow, some of them in your plates right now, gets a $2.50 subsidy in Europe, while a human in Africa gets $0.50, per annum!"Geldof said as he criticized the West's treatment of Africa, not providing it with necessary economic assistance.

"It's a pebble, a polished pebble", he said about diamonds, adding that peoples lives are dependent on what is decided by the crowd."He also criticized the weaknesses of the Kimberley Process. "Al it takes is a country that doesn't care(about KP) and some of their representatives are sitting in this room."

He called for a Marshall plan for Africa, which helped resurrect Europe and Japan after WW II.

Despite a feeling among attendants that Geldof rained on the industry's parade, he got a standing ovation from the crowd.

2007-06-01T10:53:00.000+02:00

vrijdag 1 juni 2007

Sygma's Market Comments 6/1/2007
At this moment all eyes are on Vegas as global industry gathers for important JCK Show. American demand remains relatively sluggish with consumer price resistance. Big stones booming with developing foreign markets increasing market share. De Beers DTC is expecting to increase overall rough prices by 4-9 % this week. Prices of large better quality stones are expected to increase significantly with lower prices for smaller, medium to low quality rough diamonds.Fancy shape market is mixed, with booming demand, severe shortages and surging prices for large, fine quality, well shaped fancies but very weak, overstocked and illiquid, markets for smaller commercial goods.Buyers are paying premium prices for their selectivity and should consider broadening the range of well made fancies they buy.Well made large Heart Shapes are very strong in Hong Kong markets. Commercial quality Princess Cuts not as hot as they used to be with improving market for Pears and Emerald Cuts taking their market share. Off shape and poorly cut fancies extremely difficult to sell.Large rounds, 3 cts. up in huge demand in all qualities

Sightholder taking DTC to court

2006-12-19T15:20:00.000+01:00

Jayam NV, an Antwerp diamond manufacturer and DTC sightholder is suing the DTC.
According to Mahendra (Madhu) Mehta, Jayam approached the DTC ombudsman twice and won in both cases. However, the DTC did not accept the ombudsman's rulings, and that has led to the lawsuit.
It is understood that Jayam's grievance is related to its dwindling rough diamond supply from the DTC.
According the DTC, they are rigorously defending the case and do not agree the case has any merit whatsoever.
Jayam was founded 100 years ago and has been sightholder since 1948.
The first hearing will take place at London's High Court on January 21, 2007

DTC leaves Thai market

2006-12-13T10:51:00.000+01:00

The decision of the Diamond Trading Company to withdraw marketing support from 2007 in Thailand, Spain, Germany, Canada and United Kingdom may have come as a shock to retailers in those markets, but to the DTC it was a calculated move that is entirely in line with the goals of their Supplier of Choice.
They are realigning their marketing focus to those markets which represent 80 percent of the world demand for diamond jewellery.
The remaining markets where DTC still provides marketing support are: China, France, Gulf region, Hong Kong, India, Italy, Japan, South Africa, Taiwan and the US.
It's very difficult to believe for the sightholders that the DTC will not be there anymore in the future. So they'll be forced to do their promotions whitout the DTC.

Contact Information

2006-07-19T15:53:00.000+02:00

Sygma Diamonds b.v.b.a.
Diamantbeurs, Office 268
Pelikaanstraat 78
2018 Antwerpen
Belgium

Tel: +32.3.231.66.43.
Fax: +32.3.231.02.54.
sygmadiamonds@sygmadiamonds.com
http://www.sygmadiamonds.com/

Two counterfeit GIA grading reports Surface in Antwerp (Idex, no.189)

2006-07-14T15:44:00.000+02:00

The GIA laboratory has recently discovered two fake GIA grading reports. According to this report, the two were “high quality diamonds”: 3 carats, D-color, Internally flawless. The buyer had doubts and had one of the diamonds tested. When the result came back, it showed the diamond was a high pressure/ high temperature (HPHT) annealed. GIA had already issued a report for this diamond earlier. The original report said that it was an E VVS1. The diamond left the laboratory with full disclosure and an inscription which said it was HPHT processed, but this was removed from the girdle.
Doubts and questions about the authenticity of a GIA Diamond Grading Report: contact the GIA Gem Trade Laboratory by telephone at 760-603-4500 or fax 760-603-1814. Report numbers can be verified through these contacts. If it does not match the “GIA file” the client will be informed immediately. Then the original grading report can be updated: the diamond is fully graded again, including all of the screening steps for treatments.

De Beers Settles U.S. class action suits for $250 million (Idex, no.189)

2006-07-14T15:39:00.000+02:00

Diamond miner De Beers has settled the majority of civil action suits filed against it in the United States. According to Gary Ralfe: “This settlement does not involve any admission of liability on the part of De Beers and will bring an end to a number of outstanding disputes.” …!!!

Things to do with a diamond…

2006-07-05T15:37:00.000+02:00

We already know that diamonds make the ladies happy and pretty, but in Hollywood, these magical stones also have a “healing” power. The lucky ones who have tried this extraordinary experience were the celebrities. They were invited by the Diamond Information Center during the week of Academy movie-awards. The movie-stars enjoyed the treatments using the natural healing properties of $70 million diamonds at the Diamond Aquifer: A Mystical Retreat. Celebrities such as Felicity Huffman (desperate housewives), Keira Knightley (the Pirates of the Caribbean), Paris Hilton (heir of the Hilton-chain) and Terrence Howard(Hustle and flow) received a diamond-based beauty and therapeutic treatments, including the Diamond Healing Massage by Carneros Inn (using $6 million of rare, loose diamonds). They also experienced the Diamond Experience Facial by Natura Biss, using $6 million of rare, loose diamonds to improve the intuitive readings given by Suzannah Galland and Astrology readings by Michele Karn.

Diamonds gossips: it’s raining jewels

2006-07-05T15:34:00.000+02:00

Spotlights, cameras and beautiful artists were once again present at the 78th Annual Academy Awards. The movie-stars wore the best haute-couture and off course, their jewelry. Here are some jewelry highlights from the evening.

Diamonds as heavy as herself
The 60-year-old Country singer, the slender Dolly Parton amazed the crowd with her Leighton jewelry worth $2 million. She wore diamond briolette pendant earrings with old European cut diamonds of approximately 16 carats, worth $1,215,000. Around her neck, she wore a diamond chain necklace with approximately 47.8 carats of round brilliant cut diamonds for $100,000. For her arms she chose the two vintage diamond bracelets worth $265,000. Miss Parton also wore an antique cushion-cut diamond ring, which were $75,000. The best was the assemble of her brooches; a pair of 1920s diamond flower clip brooches in platinum for $12,500, a $60,000 diamond bon-brooch, a pair of 1930s diamond “string bean” brooches, worth $60,000 and a pair of 1930s “string bean” brooches $40,000.

Larger market for retailers: diamonds are boy’s best friends
Bad boy Samuel L. Jackson chose his jewels out of the Chris Aire collection: $125,000 platinum and diamond Aire Traveler time piece and a personalized “SLJ” platinum tie pin, worth $15,000.
The nominee Terrence Howard made his royal presence on the red carpet with a 20 carat diamond ring, worth $1 million. He also wore a 30 carat platinum pear and marquis shape diamond brooch which were $500,000, both from Sol Raphael. Even though Howard was dressed like a star, he did not receive a trophy for his acting performance.

Hip-hop jeweler arrested for Money Laundering Charges (Rapaport 6/16/2006)

2006-07-05T15:32:00.000+02:00

Yakov Arabov, popular jeweler amongst the celebrities in the U.S., was arrested on money-laundering activities. The authorities have charged the Russian Arabov with distributing more than 476 kilograms of cocaine and with laundering money for $270 million. They have reasons to believe that Arabov is connected to a drug organization called the “Black Mafia Family”.
Arabov, known as “Jacob the Jeweler” to the music industry, has launched his career after the formal rapper Notorious B.I.G. introduced him to his showbiz-friends. Amongst his client-list, there are names such as Madonna, 50 cent, Jennifer Lopez and Sir Elton John. Paul Wilmot, a spokesman for Jacob & Co., said the arrest was “the result of an unfortunate misunderstanding.”

Sightholder Files DTC Complaint With EC (Rapaport 6/1/2006)

2006-07-05T12:23:00.000+02:00

A Diamond Trading Company (DTC) sightholder in Belgium has filed a complaint against De Beers value added service (VAS) with the European Commission (EC). Technically, sightholders can not take their complaints to the court. Instead, they have the possibility to find a solution and, if that does not work out, then they can take their case to the EC’s ombudsman. The content of the complaint concerns not only about VAS but also about DTC’s Supplier of Choice (SOC) program. There are two main issues. First, the promised goods were different from what was received. Secondly, the sightholder claims that an additional 1.5 percent cost was added to SOC services to cover VAS.

Alrosa and Ide Presidents

2006-07-04T17:36:00.000+02:00

The president of Alrosa (Alexander Nichiporuk) and the president of Israel Diamond Exchange (Avi Paz) had a meeting in Moscow concerning their cooperation between the Russian diamond miner and Israeli traders.
The two discussed mainly about rough diamond trading, Kimberly process, HPHT treatment and consumer confidence.
In the Russian diamond exchange, the Diamond Chamber of Russia, 37 percent of its clients are Israeli traders. Israel is interested to have a bigger share of Alrosa’s rough diamonds and sides are considering holding tenders in Israerl and Russia.