Archives: News

A reported a loss of RUB 10.3 billion for the third quarter ending September 30, is primarily  foreign exchange losses. ALROSA posted a profit of RUB 8.3 billion $180 million for 2013.

Western sanctions imposed in response to the Ukraine crisis have devalued the Ruble by 27 percent since January.

ALROSA reported operating profit fell only 2 percent year on year to $258 million. Revenue rose 8 percent to $909 million with the average price of its gem-quality diamonds down 9 percent from the previous quarter to $182 per carat.

The company noted that the average price fell mainly due to a change in its product mix, while market prices rose 3 percent. 

A blue diamond has set a new record price of $US32.6 million at Sotheby’s auction in New York.

The magnificent blue diamond broke the world record for any diamond of its colour, and set the new record for the price per carat for diamond of any colour.

A Hong Kong collector purchased the 9.75 carat pear shaped diamond after 20 minutes of bidding at the Thursday evening auction.

Colleagues and friends,

The diamond industry is facing a serious challenge to its integrity which could lead to major consumer confidence problems, if diamonds are sold with overstated certification. I want to stress that this is an industry problem that must be resolved by the industry in order to retain consumer confidence in our product and sustain and develop the international diamond trade.

Recently, awareness was raised regarding problems existing within a specific laboratory group and the overstating of grading from certain laboratories in this group, which has led to the exclusion of said laboratories certificates by the Rapaport Group.

Your attention is drawn to the following issues:

(a) Ethical grading and certification are the most basic principles of the industry and these cannot be compromised.

(b) As part of the sales transaction the seller of diamonds provides a guarantee to the buyer of what is being sold and this forms a binding contract between the two parties. The seller cannot later hide behind an overstated grading report claiming ignorance as he/she will be held responsible regardless of any grading report supplied with the diamond(s) being sold. Diamantaires cannot hide behind certificates with the excuse that these goods sell cheaper. There is a common standard of colours and purities, and it is not about price but quality.

(c) In blatant cases the misrepresentation can amount to fraud with criminal consequences, depending on a countries consumer laws.

(d) Member Bourses must implement action in countries experiencing this kind of practice:

(i) If the offending party is a member, then the bourse concerned should take action under its own rules.

(ii) If the offending party is not a member, then the bourse concerned should report it to that countries consumer rights regulator in order to protect consumers rights..

On behalf of the Board and with regard to this issue, I commit the WFDB to ensure that we resolve matters as quickly as possible. We cannot reserve our position whilst this kind of practice prevails from a few laboratories that are damaging the entire diamond industry. Decisive and immediate action is required to eliminate this practice and the WFDB is in terms of its mandate compelled to take the lead. To this end a meeting will shortly be called of all the major laboratories to find common ground on the way forward.

I call on all responsible stakeholders across the world to stand together to eliminate this practice as it will harm our industry in a way that could dwarf any previous problems faced by the diamond industry.

I look forward to your full and ongoing support in this matter.

Ernie Blom

Martin Rapaport has released a comprehensive editorial entitled “Honest Grading” that discloses the systematic over grading of over one hundred thousand diamonds, valued at more than a billion dollars.

Rapaport calls upon the legitimate jewellery trade to reject those selling over graded diamonds that fool consumers into believing they are getting better diamonds than they are receiving.

Video

Minister of Mines Walter Chidhakwa said that Zimbabwe is considering repealing 15 percent tax royalties on locally polished diamonds. This is likely be announced in the 2015 budget set for later this month.

The change is in order to attract investment in the diamond production sector.

Currently 90 percent of Zimbabwe’s diamonds are sold as rough in Belgium and Dubai.

Zimbabwe rough diamonds sales are estimated at 1.34 million carats during the first quarter of this year, according to ministry of mines figures.

The question is how many synthetic or Laboratory grown Diamonds are there in the market.

The Gem and Jewellery Export Promotion Council estimated current laboratory created or synthetic diamond production at 350,000 carats per year.

A report on laboratory grown diamonds by Frost and Sullivan, estimates that synthetics currently constitute up to 0.6 percent of the total value of the polished diamond market or up to $135 million by value. With a anticipated three percent growth in two years.

In 2013 there were numerous reports of undisclosed Synthetic stones discovered at laboratories with the technology to identify the Synthetic diamonds.

Since De Beers and the GIA introduced new testing machines and De Beers launched an Indian testing service, the trade is more protected.

In Australia DCLA has tested every diamond ever submitted to the DCLA laboratory.

The Gemmological Institute of America (GIA) has suspended duplicate reports diamond and diamond sealing services at all locations.

The action is being taking this action after receiving a sealed diamond for verification that did not match the data label in the sealing packet.

GIA, along with a corporate investigation firm, is investigating the circumstances surrounding the submission to determine the source of the sealing packet.

Lost, stolen or damaged GIA reports will not be replaced but the online Report Check service will show a data document.

GIA customers with concerns may submit the sealed diamonds to GIA for examination. GIA will verify that the diamond matches the report information and return it in a sealing packet at no charge.

Rio Tinto mine in Western Australia sold a 1.21 ct red diamond for a record price, the miner won’t disclose the price of the radiant cut rare red diamond, but said the total price for Argyle pink diamonds has tripled over the past decade.

Named the Argyle Cardinal, the diamond is one of 13 red diamonds larger than one carat, and one of 54 pink and red diamonds sold at the latest international tender.

U.S. online jeweller Blue Nile experiments with brick and mortar

With diamond rings on display for shoppers to inspect the gems quality up close. It is the first time Blue Nile has turned to brick and mortar, showcasing products in two Nordstrom stores.

Blue Nile, which reports results next week lets shoppers buy at prices are up to 40 percent below diamonds sold in stores, the company cut its prices in 2012 while increasing its marketing budget, reaching $450 million in sales last year.

We think that over time, the brand builds with incremental sales, incremental customers, all by referral, Binder said.

Blue Nile sold far more engagement rings than biggest online competitor Amazon.