The ninth DTC sight of this year took place in late October. As it was noted by INDEXonline, the DTC sightholders were taken aback by a price increase of 3%-5% for some lots. Formerly, such information was published by DTC beforehand to make its favoured buyers aware before sale. The favoured buyers used to receive additional notices one week before the sight. There was nothing of the kind this time.
The prices went up mainly for large-size diamonds (for example, those ranging from 3 to 8 carats). Some sightholders noted a certain price rise for white diamonds. This may be associated with high markups in the secondary market, although one insider source says there is no immediate connection between the price increase and the cost markups.
For the moment, the markup for many DTC lots is about 10%.
There was a great amount of “unscheduled” goods presented at the sight (additional goods not included into the supply schedule). One of the sightholders said DTC was getting rid of so many goods at an unearthly hour – too late for Christmas and too early for Indian Diwali.
The profit brought by the sight was estimated at $550 million.
Besides, there were rumors that this sight would introduce rough diamonds extracted at Snap Lake, the first De Beers mine in Canada, currently under development. However, it was not clear whether any diamonds from that mine were present at the sight.
At the same time, according to the Rapaport Agency (diamonds.net), the sight was estimated to bring in $520-530 million.
“The sight was a bit narrower than expected due to season dispositions”, one of the diamond industry representatives told to the news agency. “The sightholders make their stocks at August and may be September sights, so as a rule November and December look more levelled.”
Others believe that the sight was slumberous because it was ill timed to coincide with holydays in Belgium and India.
Observers noted some changes in the product range and prices saying that one or two most lucrative boxes went up by 1%-2% in their price.
The next DTC sight is scheduled for the first week of December when DTC will disclose the list of sightholders for the next three-and-a-half-year contract period.
On October 31, famous jeweller Jacob Arabov, known to hip-hop stars as Jacob the Jeweller, pleaded guilty to falsifying records and giving false evidence within the frames of an international drug trade case. According to U.S. Attorney Stephen J. Murphy, Arabov is expected to serve 46 months in prison and to pay a $2 million penalty under a litigation agreement. In return for the guilty plea, prosecutors agreed to drop money-laundering charges against Arabov.
After his arrest in June 2006, Arabov and others were accused of laundering about $270 million for the “Black Mafia Family,” a criminal drug ring that operated out of the Detroit area.
42-year-old Arabov, an immigrant from the USSR, became popular as a “jeweller to the stars.” His success came in mid-1990s and today jewels made by his Jacob & Co are worn by the most prominent stars. His jewellery is particularly favoured by hip-hop and r’n’b artists. Jacob Arabov commands over 300 stores in thirty cities around the globe. This year, the jeweller issued a collection of watches in team with Valentin Yudashkin.
A group of investors, led by Pallinghurst Resources, is planning to spend $450 million to restore the Faberge brand, develop a new business to supply colored gemstones, and eventually partner with ALROSA, a leading diamond miner, to create a diamond brand.
The group has teamed up with Connecticut-based American Metals & Coal International Inc., South Africa-based bank Investec Ltd., and Texas-based private-equity fund NGP Midstream & Resources LPand, to embark on the projects.
To facilitate revival of Faberge’s original jewellery splendor (significantly tarnished when this brand was owned by a cosmetics firm), the company has appointed Mark Dunhill, former president of Alfred Dunhill Ltd., as its new CEO, to take office on November 1, and has recruited the two remaining descendants of the Faberge family – Tatiana and Sarah Faberge - to the business.
On November 2, the Associated Chambers of Commerce and Industry (ASSOCHAM) of India held the International Diamond and Gold Convention in Mumbai celebrating India’s prominence as one of the global leaders in gems and jewellery trade.
According to ASSOCHAM, India accounts for 50% of the world market in such market segments as cut and polished diamonds, gemstones, gold jewellery, pearls and fashion jewellery. ASSOCHAM stressed that the Indian gems and jewellery sector contributed nearly 55% of the world’s net exports of cut and polished diamonds in value and 80% in terms of carats.
The next year, India will take over the lead of the Kimberley Process for the first time, as was predicted by many analysts a long time ago. Now it remains to be seen if what they forecast about Mumbai overtaking global leadership in diamond trade from Antwerp and London will come true.
Besides, India is getting ready for the major event in its jewellery industry: from January 1, it will introduce a gold assay system. The four largest cities of this country (Mumbai, Delhi, Calcutta and Chennai) will display only hallmarked gold jewellery. The gold hallmarking system has been developed by the Bureau of Indian Standards (BIS).
According to the Bureau, as many as 702 jewellers have already obtained hallmarking licenses in Mumbai, 349 in Delhi, 478 in Calcutta and 514 in Chennai. For the moment, there are 62 assay centers in the country, but the government promises to double the number. Compliance with the adopted standards will be certified by five simultaneously engraved signages: the BIS monogram, the purity mark (by the 24-carat scale), the hallmarking center’s symbol, the jeweller’s own symbol and finally the year of marking.
Guinness World Records registered an ice cream worth $25 000 as the most expensive dessert in the world. According to jewelry.com, the sundae topped with chocolate syrup and whipped cream was presented at Serendipity 3, a New York based restaurant. The dessert is called “Frrozen Haute Chocolate” and is to be ordered in advance.
The restaurant chefs have cooked the most expensive ice cream in team with jeweler Euphoria. To prepare it, they blended 28 cocoas, including 14 of the most exotic and expensive kinds, and infused 0.2 ounces (5.7 grams) of edible 23-carat gold.
The ice cream is served in a goblet lined with edible gold. At the base of the goblet is an 18-karat gold bracelet with 1 carat of diamonds.
This holiday season, a Japanese department store also surprised its clients by offering a Christmas tree bestrewn with diamonds. The tree valued at 1.8 million dollars is decorated with 400 diamonds totaling to almost one hundred carats.
The Takashimaya department store is selling the tree for a symbolic 200.7 million yen, Associated Press reports. In this way, they hope to animate their year-end sales campaign.
The tree, which stands 40 centimeters high, is made of preserved roses and is based on a design by Parisian flower boutique Claude Quinquaud. There is a teddy bear assigned to the Christmas tree.
