UAE authorities have arrested a man coming from Africa attempting to smuggle 297 grams of raw diamonds estimated at around $90,000 in his gut.
On Thursday, the Federal Customs Authority (FCA) said it received a tip-off about an African man who intends to bring the raw diamonds into the country by smuggling them through Sharjah International Airport.
The FCA, with the coordination of Sharjah’s Department of Sea Ports and Customs, took the necessary measures, and arrested the suspect as soon as he landed at Sharjah Airport. When he reached Sharjah Customs, his passport was confiscated and his bags were checked.
After carrying out an X-ray, officials discovered that the passenger had swallowed 297g of raw diamonds, which were worth around $90,000, the German News Agency reported. The diamonds were seized and the suspect was referred to the concerned authorities.
According to FCA, the suspect said he had visited the UAE on previous occasions but had never committed such a crime. But on this trip, he brought the illegal diamonds, which he purchased from the black market of an African country with the help of two other partners.
He also admitted that he intended to seek potential buyers in the UAE to purchase the diamonds without disclosing names.
Lucapa Diamond Company has recovered a 117-carat, gem-quality diamond from its Lulo alluvial mine in Angola.
The stone is the miner’s 14th over 100 carats from Lulo to date, and its first in that size category this year, it said Thursday. Lucapa found the stone in mining block 19, located between its high-value mining block 6 and mining block 8 portions of the deposit. That area was where the company recovered the 404-carat 4th February Stone, Angola’s largest diamond, which sold for $16 million in 2016.
“The recovery of this gem-quality, 117-carat diamond represents a positive start for Lulo in 2020 as we continue rolling out our plans to increase production and revenues this year,” said Lucapa CEO Stephen Wetherall.
Las Vegas… Diamond market conditions improved in December as US and Chinese holiday demand helped raise sentiment. Polished prices stabilized and improved for sizes under 1 carat, supported by shortages of G+, VS2+ goods. High-end qualities (F+, VVS+) of 3 carats and larger diamonds remain weak.
The RapNet Diamond Index (RAPI™) for 1-carat diamonds slid 0.2% in December and 5.3% for the full year. The index for 0.30- and 0.50-carat stones firmed in the fourth quarter following steep declines earlier in the year.
RapNet Diamond Index (RAPI™)
December
4Q 2019
FY 2019
RAPI 0.30 ct.
1.7%
8.7%
-7.5%
RAPI 0.50 ct.
1.2%
3.4%
-4.9%
RAPI 1 ct.
-0.2%
-0.7%
-5.3%
RAPI 3 ct.
-0.5%
-0.7%
-16.5%
The market in 2019 was supply-driven, as noted in the Diamond Price Statistics Annual Report that appears in this month’s issue of Rapaport Magazine.
An oversupply of diamonds set a negative tone, leaving the trade with numerous diamonds that were difficult to sell. Inventory levels declined in the fourth quarter, but there were a lot of lower-quality goods still available at the end of December.
The year also saw a change in consumer patterns. Multi-channel jewelry shopping and online diamond trading gained momentum. That gave buyers access to larger inventories and more information about the goods, enabling them to cherry-pick the best-quality stones and leaving the trade with large quantities of less desirable merchandise.
The industry in 2019 also endured tight manufacturing profits, a reduction in bank credit, and cautious Far East demand resulting from uncertainty about the US-China trade war and Hong Kong protests.
There is some optimism for the new decade. The industry can expect lower rough supply, market consolidation, further changes to the way diamonds are bought and financed, greater use of technology, an emphasis on ethical sourcing, and segmentation of lab-grown and natural diamonds into distinct markets, as the December 2019 Rapaport Research Report predicts.
To navigate these trends and bring about an upswing in diamond prices, the industry must invest in marketing and develop more efficient processes and inventory management. Diamond jewelry sales must outperform the last decade’s and should exceed $100 billion by 2030.
Beyonce Knowles Carter was dripping diamonds when she arrived at the 2020 Golden Globes with her husband Jay-Z Carter. Beyonce wore over 300 carats of diamonds from Lorraine Schwartz and a beautiful gold and black Schiaparelli dress. The mother of three 38-year-old children was nominated for her fourth Golden Globe.
She was nominated for her song “Spirit,quot; from The Lion King in the original song category. She didn’t win the prize, since it went to Elton John and Bernie Taupin for (I’m going to) love me again since Rocketman.
Although Beyonce did not win a Golden Globe, she certainly won high praise for her sense of fashion and style, and people can’t stop talking about her beautiful appearance.
Before the 2010s decade came to an end, Laurence Graff, the founder of the luxury jewelry and gem brand that bears his name, had one more deal to make with the acquisition of a 20.69-carat fancy yellow diamond named the “Firebird.”
The Asscher-cut diamond with VS1 clarity and “excellent polish and symmetry,” according to the report from the Gemological Institute of America, was purchased from Russian mining giant, Alrosa, the world’s largest diamond miner by volume.
“We are delighted to see that such a beautiful exceptional diamond has found an equally exceptional owner,” Sergey Ivanov, Alrosa CEO, said in a statement making the announcement December 24. “It is more than just a regular deal for Alrosa. This is the first direct purchase of Graff made without intermediaries, and we hope that it will be the beginning of a new phase of our work.”
The diamond was cut and polished at Alrosa’s recently opened manufacturing facility. The company says the yellow gem resembles “a simultaneous ensemble of flame, reflections of sunlight on crystal water and a trail of sparkles coming from the tail of a Firebird.”
Alrosa says the diamond is a part of “The Spectacle,” a diamond collection dedicated to the Russian ballet. There are two more diamonds in the collection, one of them is “Spirit of the Rose,” a 14.8 ct fancy vivid purple-pink stone unveiled in August. Another diamond will be announced later this year when cutting and polishing is finished.
The diamond is named after the legendary ballet “Firebird,” which premiered in 1910 at the Grand Opera in Paris. The ballet was the first of Sergei Diaghilev’s Ballets Russes productions to have an all-original score. It had the idea of creating a “national ballet” driven by the popularity of Russian folk songs and dances among the French public. The plot is based on the Russian fairytale of the Firebird and the blessing and curse it possesses for its owner. The music was composed by the Igor Stravinsky, the famed Russian composer.
The Firebird diamond was created from a 34.17 ct rough diamond named “Stravinsky,” that bears both rare honey-yellow overtones and exceptional clarity, according to Alrosa. Discovered at the “Ebelyah” mine in Yakutia, the gem became the largest yellow rough diamond extracted in Russia in 2017. It was defined by its naturally-occurring shape, smooth structure and, most certainly, by its incredible intensity and homogeneity of color.
For Graff, based in London, the purchase caps another year of notable acquisitions and unveilings, led by the April reveal of the “Graff Lesedi La Rona,” a 302.37-carat D-color, high-clarity stone that the brand says is the “world’s largest square emerald cut diamond” and the “largest highest clarity, highest color diamond ever graded by the Gemological Institute of America (GIA).” It is the main diamond cut and polished from the 1,109-carat Lesedi La Rona rough, which was purchased in 2017 by Laurence Graff. In addition to the main diamond, 66 “satellite” diamonds have been polished from the rough, ranging in size from under a carat to more than 26 carats.
The Western Australian government has invited Gibb River Diamonds and India Bore Diamond Holdings to mine at the Ellendale deposit.
The companies will pay rental fees on the areas in which they set up operations, rather than owning that portion of the site outright, the Department of Mines, Industry Regulation and Safety (DMIRS), told Rapaport News last week.
Although DMIRS has already conducted a recent geological exploration of the area to confirm there are still diamond prospects, both companies will need to explore the area further, speak with key stakeholders in the region, and develop mining plans for approval by the state government.
“It’s not going to happen overnight, but restarting mining operations at the former Ellendale mine will be a high point in the rejuvenation of diamond exploration and mining in the Kimberley [region of Western Australia],” Mines and Petroleum Minister Bill Johnston noted.
Gibb and Indian Bore will take on Ellendale’s E4 and E9 pits, and will also have access to storage facilities and infrastructure that belonged to previous Ellendale owner Kimberley Diamond Company before it went into administration in 2015. Since then, the government has been managing the property through its abandoned-mines program. Last year, it announced it was seeking expressions of interest in the site.
Ellendale produced around half of the world’s supply of rare yellow diamonds during peak production, and was also the main supplier of fancy-yellow diamonds for luxury-jewelry retailer Tiffany & Co.
Gibb recently purchased the Blina diamond project, which is adjacent to Ellendale. It is waiting on a final investment of AUD 2.5 million ($1.7 million) to begin mining the area. India Bore is a private company, established in 2015 by CEO Peter McNally, a mining executive with over 35 years of experience.
De Beers has provided its rough-diamond clients and Forevermark partners with guidelines on how to operate in the lab-grown market if they wish to continue tapping into its branding.
The mining company, which in 2018 forayed into gem-quality synthetics with the launch of its Lightbox brand, is demanding businesses make full disclosure about their product, segregate synthetics from their natural supply, and do not make unproven claims about either category. The “Statement of Principles” outlines the legal structures companies with lab-grown diamond units must have if they wish to use the sightholder logo, as well as the procedures and training they are required to implement to avoid contamination or misleading marketing.
While De Beers already had rules mandating disclosure and other best practices, the new principles “ensure there is no room for doubt” about how clients may use the sightholder logo, explained David Johnson, head of strategic communications for De Beers. Some of the rules form part of De Beers’ contract with clients, allowing the miner to penalize those who flout them, while others are only recommendations.
“We believe the principles within the document set out a responsible approach, and that they are important for ensuring people can make clear and informed choices about what they are buying,” Johnson added.
The document refers to lab-grown diamonds as “artificial” products that “do not have the same inherent, naturally occurring characteristics or enduring value” as natural diamonds. The miner continues to define diamonds as a natural mineral in line with the International Organization for Standardization (ISO).
De Beers sent the guidelines to clients earlier this month, as numerous sightholders have launched lab-grown businesses under separate entities and trading names. The following is a summary of the guidelines:
De Beers customers may only use the sightholder license — including displaying the sightholder logo — for business entities that are exclusively natural-diamond businesses. Entities with both natural and lab-grown activities may not use the logo.
The miner recommends setting up distinct and independent businesses for any lab-grown diamond activities, with separate systems, processes and workforces.
The rules prohibit “false, misleading or unsubstantiated” claims about the enduring value of lab-grown diamonds, whether directed at other businesses or at consumers. They cannot state or imply that lab-grown diamonds have the “identical inherent value characteristics” as natural diamonds.
Similarly, unproven claims about the environmental benefits or ethical advantage of lab-grown diamonds over natural ones are forbidden.
Sellers must provide the buyer with full and unambiguous disclosure before the transaction is complete.
They’re also required to ensure segregation at all stages of the supply process, such as storage, cutting and polishing, packaging, and transportation. Ideally, suppliers should handle natural and lab-grown stones in separate sites.
De Beers customers must “take steps” to ensure full disclosure and segregation further along the supply chain, down to the consumer.
Clients must have protocols to identify and mitigate contamination risks, and train staff members on the “operational, commercial and reputational impacts” of lab-grown diamonds.
Preferably, companies should disclose the countries in which the synthetic diamond was grown, polished and made into jewelry, as well as the identity of the grower. De Beers says businesses should “strive” to declare this, though it’s not an absolute requirement.
Grading language must contain words that make it clear a stone is lab-grown.
Customers must follow relevant laws, regulations and best practices, such as the standards that the US Federal Trade Commission (FTC) and the ISO have published.
Anglo American’s De Beers, the world’s No.1 diamond miner by value, said on Wednesday that its last roughs sale of the year fetched $425 million, a slight improvement from the $400 million it obtained in the previous tender, but still over the year a whopping $1.4 billion less than in 2018.
The figure is also 20% lower than the $544 million worth of diamonds the miner sold in December last year, and it has brought the company’s total sales for 2019 to only $4 billion.
DIAMOND GIANT SALES TOTALLED $4 BILLION THIS YEAR, A WHOPPING $1.4 BILLION LESS THAN IN 2018
The diamond giant sells its stones ten times a year in Botswana’s capital, Gaborone. The buyers, or “sightholders,” usually accept the price and the quantities offered, but in the past months they’ve been given more decision making power, with De Beers allowing them to refuse about 50% of the stones contained in the parcels.
The company has also curbed plans to expand diamond production over the next two years and reduced prices for low-quality stones as much as 10%, in yet another sign of increasing volatility at the bottom end of the market.
Cheaper diamonds, which are often small and low quality, have been selling for significantly less now than six years ago due to an unforeseen oversupply that has weighed on prices and producers’ bottom lines.
The situation, some key actors say, is about to change, as the first signs of stabilization in the sector are starting to appear.
Source Bain & Company.
“Following continued polished diamond price stability in the lead up to the final sales cycle of the year, we saw further signs of steady demand for rough diamonds during Sight 10,” De Beers chief executive officer, Bruce Cleaver, said in the statement.
His perception is shared by Russian competitor Alrosa (MCX:ALRS), which last week said it had “evidence” that prices for a variety of diamond products edged higher in October and November. The world’s top diamond producer by output also noted that prospects for de-stocking were “more visible.”
Source Bain & Company.
Industry consultant Bain & Co., however, believes that while the glut that’s depressing the diamond market will probably be cleared early next year, it will take at least another 12 months for the market to fully recover.
“The industry’s first and strongest opportunity to rebalance and regain growth will be 2021,” said Bain in a report, adding that supply could fall 8% that year.
Alrosa will help launch a blockchain-based provenance program offering Chinese consumers greater transparency when buying jewelry via WeChat.
The e-commerce program, a partnership with blockchain platform Everledger and Chinese Internet giant Tencent Holdings, will be available to nearly a billion WeChat users, the companies said Monday.
WeChat, which is owned by Tencent, is a multipurpose messaging, social-media and mobile-payment app. The traceability platform will be applied to a “mini program,” a sub-application within the WeChat system that enables advanced features such as e-commerce and task management.
During the pilot phase, the product will feature diamonds mined in Russia by Alrosa, and will contain information on the stone’s provenance and full certificate details. The groups will offer the program to jewelry manufacturers and retailers in China as a white-label API, which enables them to create their own platform and offer it under their own name.
“This exciting development…brings provenance and authenticity of diamonds to a new level of transparency in China,” said Everledger chief operating officer Chris Taylor. “Making this information available to consumers’ fingertips via WeChat enables them to be sure about the source and the credentials of each item being purchased.”
The program will also help Alrosa expand its client base in the Chinese market, the miner explained.
“[The venture] reinforces our pursuit for guaranteeing the origin of our products,” explained Pavel Vinikhin, head of diamonds for Alrosa’s polishing division. “We believe that this collaboration with the most popular social-media platform in China will help us to further strengthen our sales there.”
