Zimbabwe’s state owned Minerals Marketing Corporation opened a 316,000 carat diamond auction, which will close at the end of the week an official said.
“This is the third auction we have conducted this year as there were some administrative issues which were taking place within the organization,” MMCZ’s General Manager Tongai Muzenda said by phone on Wednesday. The last auction was held in July.
The auction, which began on Sept. 9 and will close on Sept. 13, has attracted buying interest from Belgium, Dubai, India, Israel and South Africa, but Muzenda declined to name the companies bidding, citing confidentiality.
Zimbabwe expects to produce 4.1 million carats of diamonds this year, up from 2.8 carats in 2018. At the peak of production in 2012, the southern African country’s output was 12 million carats.
Rio Tinto has launched a new collection of rare pink diamonds from its Argyle diamond mine in the east Kimberley region of Western Australia. Rio Tinto Argyle Pink Everlasting
Known as the “Argyle Pink Everlastings™ Collection”, this beautiful offering has been curated to showcase the full colour palette of Argyle pink diamonds, weighing 0.14 carats and below.
The Argyle Pink Everlastings™ Collection comprises 64 lots and weighing a total of 211.21carats it represents justtwo per cent of the Argyle pink diamond annual production. It is expected that less than 100 carats of the equivalent profile will be produced by the mine prior to closure in 2020. Argyle Pink Everlasting Collection
Jewellery historian Vivienne Becker said “ The Everlastings Collection™, representing one of the last offerings of its kind from the Argyle mine, will feed the unstoppable demand from designers and jewellers who appreciate the finite raity of these beautiful gems”.
Encapsulating a rich history and an extraordinary provenance, every lot in the Argyle Pink Everlastings™ Collection is accompanied by a Certificate of Authenticity.
Rio Tinto Copper & Diamonds vice president of sales and marketing Mr Alan Chirgwin said “ We are delighted to offer for the first time ever this unique collection of rare Argyle pink diamonds, destined to be in strong demand by the world’s finest jewellers.
“The accumulation of these diamonds from a certifiable source in various shapes, sizes and colours is the result of a painstaking endeavour, unlikely to be ever repeated.”
The Argyle Pink Everlastings™ Collection will be tendered alongside the annual Argyle Pink Diamonds Tender in Perth, Singapore, London and New York with bids closing on 9 October 2019.
Stornoway Diamond Corp. of Montreal has been granted protection under the Companies’ Creditors Arrangement Act from the Superior Court of Quebec while the company restructures its business and financial affairs.
Protection is extended to subsidiaries Stornoway Diamonds Canada, Ashton Mining of Canada, and FCDC Sales and Marketing.
Stornoway has signed a letter of intent with creditors Osisko Gold Royalties and Diaquem, a wholly owned subsidiary of Ressources Quebec, concerning a bridge financing agreement entered into in June this year. The LOI confirms that the creditors intend to acquire all of the assets and properties of Stornoway and assume the debts and liabilities owed them as creditors. Stornoway will continue to be the operator of the mine 320 km north of Chibougamau in the James Bay region.
Osisko says that under the terms of the bridge loan, It will retain its 9.6% diamond stream on the Renard mine and continue to receive diamond deliveries. The proceeds of any diamond sales will be reinvested in the mine for a period of one year.
Osisko and certain of the secured creditors have also agreed to supply an initial C$20 million of working capital to Stornoway. The working capital is intended to keep the mine operating without interruption.
A flawless white diamond with a high estimate of $19 million will feature in Sotheby’s Magnificent Jewels and Jadeite auction in Hong Kong next months.
The emerald cut, 80.88 carat, D color, type IIa stone is valued at $12.8 million to $19.1 million USD, and is one of only five emerald cut diamonds over 80 carats offered in auction history, Sotheby’s said Monday.
A 10.64 carat, fancy vivid purplish pink, internally flawless diamond, polished as a radiant cut, with the outline of an emerald cut, is set to go under the hammer at the October 7 sale for $19.1 million to $25.5 million. The auction house will also feature a necklace by designer Anna Hu, containing a 100.02-carat, fancy intense yellow diamond, estimated at $5.1 million to $6.4 million.
“It is thrilling to be able to bring together three top class diamonds this autumn, all of which are exceptional in quality and rarely seen on the market, let alone presented in a single sale,” said Yvonne Chu, acting head of Sotheby’s Hong Kong jewelry division. “We are set for a bright season ahead.”
Also up for auction are an 11.88 carat, pigeon’s blood Burmese ruby and diamond ring, mounted by designer Raymond Yard and valued at $5.6 million to $8.2 million, and a jadeite bead necklace with a diamond clasp, estimated at $3.2 million to $4.1 million.
Other notable items include a 19th century 37.29 carat sapphire and diamond brooch. The piece, which Richard Burton gave to Elizabeth Taylor during their marriage, has a presale estimate of $1.7 million to $2.3 million.
Sotheby’s will showcase the pieces throughout Asia before the auction.
Russia’s Alrosa is talking to several global jewelery retailers about jointly marketing the miner’s jewelery brand that uses fluorescent diamonds, as it strives to create a new niche for the natural stones.
Diamond miners, which have long excelled at marketing, are seeking new approaches to battle falling demand and competition from diamonds manufactured in laboratories.
“We are completing talks with several major companies in different regions,” Alrosa Chief Executive Sergei Ivanov told Reuters.
Alrosa, which now sells these diamonds mixed with others in “lots”, expects the retailers to start offering its fluorescent stones in a year under the brand “Luminous Diamonds”, which it has recently created, in separate corners of their stores.
The aim is to create a new market for stones with fluorescence, often a blueish glow visible under light, that are still considered by many traders as being of lower quality.
Global demand for all types of diamonds has been hit by a trade war between the United States and China, the world’s two biggest diamond markets. Prices for smaller stones have fallen as deliberate output reductions have yet to remove oversupply. Alrosa and its competitors, chiefly Anglo American’s (AAL.L) De Beers, are betting on a “value over volume” strategy. Alrosa expects to produce 38.5 million carats in 2019 but will sell only 32 million to 33 million carats, stockpiling the rest until better days.
Alrosa does not disclose the names of the retailers it is talking to but says it has no plans to start its own retail business. Product sales will be organized by retailers via their own distribution chains.
“Our aim is to supply fluorescent polished diamonds – cut by Alrosa or its clients – to retailers and provide marketing support, including jewelery design if needed,” Ivanov said.
FLUORESCENT ADOLESCENT
Fluorescence, a bluish glow produced by ultraviolet rays from a lamp or the sun, is a characteristic of 25% to 35% of diamonds, according to the Gemological Institute of America (GIA). It is not bad for the precious stone, according to GIA, and it is not a grading factor like the traditional 4Cs — color, clarity, cut and carat weight — used to determine quality.
About half of all diamonds produced globally have some fluorescence, while 3% to 10% have strong fluorescence, Ivanov said.
But such diamonds are more difficult to sell as many traders now consider stones with more fluorescence as lower quality, so they often trade at a 25% to 45% discount, even though they could demand a premium several decades ago, he said.
With global annual rough diamond sales of $15 billion and diamond jewelery demand at $85 billion, any new marketing niche is attractive for the entire supply chain.
Diamond industry players have long been betting on “millennial”, born between the early 1980s and early 2000s, and “generation Z”, born from the mid-1990s to early 2000s, as drivers of growth in jewelery demand as their spending power rises.
Alrosa aims to woo this generation with florescent stones.
Recent research conducted by a consulting company for Alrosa in the United States and China showed millennial liked the stones for their unusual quality in jewelery, Ivanov said.
Alrosa fluorescence diamond daylight and black-light
“We saw that it can become a fashionable product and interesting for these young people,” he said.
The same research also showed positive results among women, so the “Luminous Diamonds” brand sought to appeal to women’s independence and purchasing power, which was rising in the United States, China and India, the CEO added.
“It will be a special line. A diamond which glows in a night club, in a theater or even in the rays of sun,” Ivanov said. “We see this demand in opinion polls and are sure that we will convert it into sales.”
Bonhams will spotlight a 2.17 carat Van Cleef & Arpels blue diamond ring at its upcoming sale, estimating it will fetch $800,000 to $1.2 million USD.
The emerald cut, fancy intense blue, VVS2 clarity diamond is accented by round brilliant cut diamonds. The piece, from a private collection, will lead the September 26 New York Jewels auction.
Other pieces from the Van Cleef collection include an oval shaped, 21.56 carat Burmese sapphire ring flanked by diamonds, valued at $250,000 to $350,000. An emerald cut, 6.09 carat, fancy vivid yellow diamond ring, surrounded by white diamonds, is estimated at $140,000 to $180,000.
The sale will also feature a round brilliant cut, 11.11 carat, E color, VS2 clarity diamond, which is expected to go under the hammer for $250,000 to $450,000. A 24.64 carat, fancy yellow diamond ring, centered between two white diamonds, is valued at $270,000 to $370,000, while a cushion shaped, modified brilliant cut, fancy deep pink diamond ring weighing 2.42 carats carries an estimate of $200,000 to $300,000.
Several Art Deco pieces, including two items from the estate of German silent-film actor Joseph Schildkraut, will also be up for auction.
Bonhams will hold an exhibition tour of the pieces in Los Angeles, Hong Kong and New York prior to the sale.
A labourer in Bundelkhand region turned second time lucky when he got another diamond within a week in a piece of land he took on lease from the district administration in Panna district. The value of the diamond is estimated at about Rs 20 lakh, a mineral resources department official said.
The lessee, Kishor Kushwaha, a resident of Sarkoha village got the diamond of 5.69 carat in a field in the area in Panna district. He deposited it with the mineral resources department office on Saturday, said Panna diamond office authority Anupam Singh.
Panna district, 413 km north east of Bhopal in Bundelkhand region, has the only diamond producing mine in the country, which is under operation, as per the department officials.
Panna diamond office authority Anupam Singh said, “The diamond that the lessee has found may get him about Rs 20 lakh on its auction. Earlier, the same person got a diamond of 4.4 carat about a week back, which was, however, of better quality and was valued about at Rs 20 to Rs 25 lakh. The lessee was assisted by three others in his work.”
The labourer got the piece of land on lease on March 1, 2019 and the lease period will expire on December 31, 2019. “It rarely happens when a person gets another diamond twice within a week or so,” he said.
Talking to the media Kishor said, “I am extremely happy that Mother Earth blessed me with this gift of diamonds. I make both ends meet by doing labour work. I will share whatever money I get with my partners Ajay Singh, Mahadev Kushwaha, Purshotam Lal and Vimal who also put in hard labour.”
He said he wanted to spend the money on education of his children.
Almost a year after the successful launch of its first fine jewelry bracelets for the Apple Watch, the Lagos jewelry brand introduced the second generation of its Smart Caviar collection, designed specifically for the smart watch.
Known for its signature Caviar beaded designs, Lagos offers a set of luxury bracelets that transitions the sporty look of the Apple Watch to a piece of fine jewelry, the company said in a statement. The newest models are available in stainless steel, a two-tone version in stainless steel and 18K yellow gold, and stainless steel with jewelry-grade, scratch-resistant black ceramic.
The Lagos Smart Caviar fine jewelry bracelets are not approved, endorsed or affiliated with Apple, Inc. They are created as a design solution to craft a more elegant and stylish fine jewelry alternative for the popular Apple Watch.
According to Lagos, these bracelets are versatile enough for daily wear and for any occasion. They are designed to slip easily in and out of the Apple Watch face. They come with a sizing tool and extra links for a proper fit.
“I love exploring different materials to bring beautiful and functional solutions to our customers,” said Steven Lagos, founder and creative director of the Philadelphia-based fine jewelry brand. “With Smart Caviar, women can benefit from the functionality of the Apple Watch without sacrificing their personal style.”
Steven Lagos adds that Smart Caviar is designed to be layered with other Lagos jewels.
The new collection of Smart Caviar watch bracelets can be purchased at Lagos.com, the Lagos flagship boutique in Philadelphia, Neiman Marcus, Bloomingdale’s, Nordstrom and independent jewelers throughout the country. Bloomingdale’s for now has exclusive access to the black ceramic model. Nordstrom and Lagos.com are selling the stainless steel and two-tone versions. All of the stainless steel styles will be available November 1.
These new styles join the sterling silver designs, including models that combine sterling silver with yellow gold and diamonds, introduced September, 2018, in an exclusive promotion with Bloomingdale’s. They sold much faster than expected during the two-month run. The company has since made them widely available.
Gem Diamonds published its results for the first half of 2019, reporting a revenue of $91.3 million, compared to $167.7 million during the first half of 2018.
The miner’s earnings before interest, taxes, depreciation and amortization (EBITDA) stood at 25.3 million, compared to 70.7 million in 2018. Its attributable profit, from continuing operations was $6.6 million against $26.8 million in 2018.
The considerable fall in income and profits also had its impact on the basic earnings per share: 4.8 US cents from continuing operations , opposite 19.4 US cents in 2018.
Commenting on the company’s results, Clifford Elphick, Chief Executive of Gem Diamonds, said:
“Letseng achieved $ 1,697 per carat for the period with the sale of the 13.32 carat pink diamond achieving a Letseng record of $ 656,934 per carat, reaffirming the unique quality of Letseng’s diamond production.
The prices achieved for the period are 10 percent up from the prices achieved in the preceding six month period, notwithstanding the planned limited contribution from the Satellite pipe ore and current diamond market conditions.
The Group has successfully implemented the business transformation program, already achieving $42 million net of fees, and is on track to deliver the planned $100 million in cost savings and efficiencies by 2021.”
Diamond markets were quiet in August, with dealers taking their summer vacations amid uncertainty about the important Hong Kong Jewellery & Gem Fair. Demand from China slowed due to an escalation of the US-China trade war, protests in Hong Kong, and the depreciation of the yuan.
Diamond prices continued to soften, with the RapNet Diamond Index (RAPI™) for 1 carat down 0.4% during the month.
RapNet Diamond Index
Expectations are low for the Hong Kong fair, which begins on September 16. Suppliers are anticipating weak buyer attendance as demonstrations continue to affect commerce in the city.
Jewelry retail sales in Hong Kong have declined as Chinese tourists have shifted to spending locally rather than abroad. Luxury shoppers were put off by the protests as well as the 4% depreciation of the yuan against the dollar in August. The devalued yuan puts additional pressure on diamond prices for local importers.
The drop in Chinese demand has made it difficult for diamond manufacturers to rebalance their inventory, since sales have fallen more than supply in certain categories. Cutters have significantly reduced polished production. The number of diamonds on RapNet declined by 2.5% in the past month to 1.5 million as of September 1.
Manufacturers refused about 50% of De Beers’ supply in August as the miner adopted a more flexible sales policy amid the difficult market conditions. De Beers kept its prices stable.
Rough prices need to come down to restore manufacturing profitability. Rough sales are expected to be small again in September, with manufacturers limiting their purchases until after Diwali, which begins October 27. Inventory levels should go down as US jewelers stock up for the holiday season. The challenge then will be to buy only profitable rough so as to ensure a more viable trade in 2020.
