"Diamond jewelry has grown to a tune of 10-15%"

"Diamond jewelry has grown to a tune of 10-15%"
In India there is nothing called recession but just a slow down in the economy. This slow down has happened only October 2008 onwards which also happens to be the wedding season. The impact of this slowdown has been very limited but consumers continue to buy jewelry during the wedding season. The diamond jewelry has grown to the tune of 10-15% over the same period last year.I also believe that diamonds are doing well across the country and it is not specific to any specific city or area. Diamonds are doing well across the country. The preference for diamonds has been very high for the last few years.
A recent consumer survey very clearly shows a high desirability for diamond jewelry as compared to plain gold jewelry. I feel that the desirability for diamonds has been built over the last full decade. Such high desirability remains high for a long time and hence I see the craze for diamonds to remain for a long time.

ROSY BLUE TO DIVERSIFY INTO OILSEED PROCESSING

ROSY BLUE TO DIVERSIFY INTO OILSEED PROCESSING
- Aimed at generating employment in the region, says Russell Mehta

De Beers Diamond Trading Company (DTC) sightholder Rosy Blue (India) Pvt. Ltd. is planning to set up either a castor seed or an isabgol (psyllium seed husks) processing plant in Gujarat, the financial daily Business Standard reports. The company has approached the state government to acquire 50 acres of barren land for the project, the report said.

“Diamond being the core business for us, we thought of getting into a second or third leg business,” said Rosy Blue chief operating officer Russell Mehta. “Though the company is yet to decide whether it would set up a castor seed processing plant or an isabgol plant, ultimately we intend to generate some more job opportunities in the region,” he added.

Rosy Blue also intends to set up a cutting and polishing unit near Palanpur, a historic diamond processing centre. “As of now, we are satisfied with our diamond cutting and processing capacity. Yet, the new plant is again an effort to generate more employment in that region,” Mehta remarked.

Business Standard said the new factory will be established through Rosy Blue shareholder, Banaskantha Industries Pvt. Ltd., on an additional 50-acre plot of land.

The Reasons behind Ups and Downs of the stock market

The core reasons are………………………..
Why Stocks prices Go Up
-- The company entered in to a big new contract
-- A great positive news coverage on the company in the media
-- Scientists discovered and opined that the product is good for something important
-- A famous investor is buying shares-- Lots of people are buying shares
-- An analyst upgrades the company, changing her recommendation from, for instance, "buy" to "strong buy"
-- Other stocks in the same industry go up
-- Most of the stock market is up
-- A competitor's factory burns down
-- The company wins a lawsuit
-- More people are buying the product or service
-- The company expands globally, and starts selling in other countries
-- The industry is "hot"
-- people expect big things for good reasons
-- The industry is "hot"
-- people don't understand much about it, but they're buying anyway
-- Increasing sales and profits
-- A great new executive is hired to run the company
-- An exciting new product or service is introduced
-- The company is bought by another company-- The company might be bought by another company
-- Additional exciting new products or services are expected
-- The company is going to "spin-off" part of itself as a new company
-- Rumours
-- For no reason at all
Why Stocks prices Go Down
-- Lots of people are selling shares
-- A factory burns down
-- Other stocks in the same industry go down
-- Profits and/or sales are slipping
-- Top executives leave the company
-- A famous investor sells shares of the company
-- An analyst downgrades his recommendation of the stock, maybe from "buy" to "hold"
-- The company loses a major customer
-- Most of the stock market is down
-- perhaps in a temporary recession or bear market
-- Another company introduces a better product
-- There's a supply shortage, so not enough of the product can be made
-- A big lawsuit is filed against the company
-- Scientists discover the product is not safe
-- Fewer people are buying the product
-- The industry used to be "hot," but now another industry is more popular
-- Some new law might hurt sales or profits
-- A powerful company becomes a competitor
-- Rumours
-- For no reason at all
These are the some reasons which creates wave in the market both for and against the company in different situations. But, an intelligent investor has to look at all these fundamentals before taking any reasons regarding buying and selling of shares and stocks of any companies. Now, I would like to add up one more thing that some of these reasons harm short term oriented investors and some time they harm both. Therefore, an investor with long term vision and patience will always make the most out of any stock market or any stocks. As a financial consultant, my advice is, if you really want to take part in the development of India, be regular in the long run.

Women Regard Gold Jewellery Ideal Gift for Valentine's Day: WGC Survey

Women Regard Gold Jewellery Ideal Gift for Valentine's Day: WGC Survey - Represents something 'everlasting' say 76% of the correspondents

The Israel Diamond Industry Portal reported that according to participants in the World Gold Council's (WGC) 2008 jewelry survey, women all the world – no less than 76% - agree unanimously that a key reason for buying gold jewelry as a gift is "because it is everlasting,” which makes it very apt for a Valentine's Day gift. The survey was conducted by the GfK independent research firm, in the central gold jewelry markets of India, China, Saudi Arabia, Italy, Turkey and the USA. 7,500 females aged between 15 and 65 were asked what their reasons for buying gold jewelry were and to name favorite occasions for receiving gold jewelry. Valentine's Day was named a key date. Philip Olden, Managing Director of the World Gold Council, noted: "Our survey shows that Valentine's Day is an important occasion for receiving gold jewelry for women in different regions around the world. The higher gold price has added to gold jewelry's desirability despite these challenging economic times. Gold's perceived value and enduring emotional appeal are not mutually exclusive and set gold apart from other traditional gifts and apparently, holds the key to women's hearts on Valentine's Day.” Olden added: "With two-thirds of global gold demand coming from the jewelry sector, understanding our consumer is crucial to both the gold jewelry trade and the gold market as a whole. With retailers under severe financial pressure, unlocking the consumer purse through effective promotion of gold jewelry is critical. The continuous efforts of World Gold Council and our partners from the gold trade in the key jewelry markets have been notable in keeping this ancient adornment desirable and relevant in today's competitive consumer market." Even the younger segment that participated in the survey, who are typically more interested in spending money on gadgets such as mobile phones than spending their disposable income on high-end jewelry, appreciate the romance of gold jewelry - 30% stated that they wanted to receive it for Valentine's Day. Other key occasions on which women like to receive gold are birthdays, wedding anniversaries, weddings and religious festivals, with women also buying gold jewelry for themselves on these occasions

GSI Launches Minisite for Indian Jewelry Industry

GSI Launches Minisite for Indian Jewelry Industry

Gemological Science International (GSI) has launched its first minisite, http://www.gsiindia.net/, dedicated specifically to the Indian jewelry industry. GSI has been in India since 2006 and its business now serves both export and local sectors, according to CEO Mark Gershburg.
"The minisite concept has been used by many non-jewelry companies. We believe this is its first application in the jewelry industry," says Mr. Gershburg. "This approach allows us to offer more Indian-directed services online without overcomplicating our main site. It also shows our dedication and strong belief in the future of the Indian jewelry industry." In support of the Indian industry, including those looking to enter it, the GSI-India minisite provides information and services that are unique for a gem lab. For example, it offers a list of Indian suppliers of equipment and services along with directories of Indian jewelry associations, trade publications, and retail jewelers all over the country.
"Practically anything that can be done in the lab can be done by our MobilLab," says Mr. Gershburg. "It creates economic and efficiency advantages throughout the gemstone/jewelry supply chain."
GSI's customers in India, or elsewhere, also have the unique benefit of viewing their actual reports online, rather than just as data. Another one-of-a-kind feature allows GSI customers to track the progress of their goods in the lab in real time.

Diamond as an Investment

Diamond as an Investment

History
Diamonds have been cherished as gemstones since the ancient times. Popularity of diamonds has increased since the 19th century because of successful advertising in spite of an outrageously increased supply. Diamonds are not usually used as a mainline store of value during times of crisis, due to their lack of fungibility and low liquidity. Though, they may still be useful during times of hyperinflation. Roughly 20% of mined diamonds are used in jewelry and 80% for industrial uses (such as lasers, drill parts and surgical equipment). Chemical vapor deposition is now used to produce cultured diamonds which, different diamond simulants, require very close inspection to distinguish them from natural diamonds.

Diamond price
In olden times, the wholesale diamond price has been controlled by De Beers Group, which has an estimated 40% to 50% of the market. Botswana is presently the largest producer of diamonds with mines operated by Debswana, a joint venture between De Beers and the Botswana government. However, since the 1980s, other producers have developed new mines in Russia, Canada and Australia for e.g., challenging De Beers' dominance (historically De Beers market share was considerably higher, e.g. 80%. De Beers through its trading company called as the DTC raised wholesale diamond prices three times in 2004 by a total of 14%.

The US is the largest consumer of diamonds in the world. The U.S. accounts for 35% of diamond sales, Hong Kong 26%, Belgium 15% (Antwerp is the world's diamond-trading centre), Japan 6%, and Israel 4%, Israel and Belgium are significant Hubs for trading diamonds thus consumption numbers are a bit misleading. The price of diamonds varies with global demand and the world economy.

Diamond prices vary generally depending on a diamond's carat, color, clarity and cut (The 4 C's). In contrast to precious metals, there is no universal world price per gram for diamonds. However the industry does use tools like the Rapaport Diamond Report and The Gem Guide which are published weekly or quarterly, as a price references.

In addition to print and online references, numerous institutions have changing standards which can be used to aid in diamond identification and pricing. Gemological Institute of America, American Gemological Society and International Gemological Institute are 3 such institutions. Often these organizations center on new research and education which they pass on to their members and the public.

Feasibility of using diamonds as an investment
There is no natural scarcity of diamonds. Diamonds can be synthesized at much lower cost than the equivalent natural diamond price and the chemical and structural purity of a synthetic diamond can surpass a natural one. However, the chemical composition is not the only factor that concludes their value - the quality of the cut is of as much, if not greater, importance.

Diamonds are a troublesome investment. While it is easy to buy a diamond, it is not easy to sell one unless one is already a well-known diamond merchant. Another problem for investors is that purchasers other than well-known jewelers will be paying retail for a stone but can get only wholesale at most if they sell it back to a jeweler. If buying from non-industry sources, fraud is a major risk and even retail jewelers are skittish about it following Jewelers Vigilance Committee warnings in the 1990s about many fraud schemes by customers selling jewelry to jewelers or bringing it in for repair.
Some companies offer "investment-grade" diamonds for sale to the public. A cautious investor must ask for a written promise to rebuy the diamonds at or near the purchase price within a particular period.

Today there are a small number of funds that are investing in diamonds. These funds buy unique diamonds (very large in size or color); each stone is checked by a few professionals and negotiated until the fund decides to purchase it. Then a marketing team goes into action and through a widespread work the fund yield is gained. Between 2007 and 2008 the price of a diamond from the top range of color, clarity, cut and carat went up by over 50%.

Methods of investing in diamonds

Polished diamonds
Cut and polished diamonds.
Polished and rough diamonds lack some of the attractive attributes of investment vehicles, including liquidity, homogeneity and fungibility. Grading and certification by familiar laboratories goes some way to redressing this. Weight and cutting proportions are parameters which can be accurately measured. Colour and clarity grades are parameters which should be determined by gemologists.

The increasing size and quality, and decreasing price, of synthetic diamonds also presents a threat to the value of polished diamonds as a long-term investment. The likelihood of low-cost ultra-high-quality diamonds becoming available in industrial quantities at some time in the future is not an encouraging prospect for long-term investors in diamonds. However, synthetic diamonds have been manufactured since the 1950s and have yet to make a main impact on the market.

A warning example of such a price fall caused by introduction of a new simulant strongly undermining the prices of a natural gem was the permanent fall in natural pearl prices with the introduction of cultured pearls. The mechanism by which prices were affected is composite. In part because of the social acceptability of wearing cultured pearls to much of the market, customers migrated from the natural to the lower priced cultured product. This changed the supply and demand situation for natural pearls and perhaps the overall prestige of pearls in general was lowered. Where synthetic stones are less socially acceptable to the market for the natural version, arguably as with synthetic corundums where the two markets, natural and synthetic, are frequently separate, the prestige of the natural stones has been, with effort, sustained. Thus increased availability and lowered prices of synthetics may or may not have main implications for the future price of natural diamonds. The drop in natural pearl prices was also affected by the onset of the Great Depression and the development of the oil industry in the Persian Gulf (which not only provided pearl divers with better-paid, safer jobs, thereby rising production costs and lowering production capacity, but also increased pollution in the gulf, thereby reducing supply) - neither of these factors apply to diamonds. Besides, the introduction of synthetic rubies in the late 19th Century did not appear to have a permanent effect on the price of natural rubies.

There are many factors contributing to low liquidity of diamonds. One of the major is the lack of terminal market. The majority of commodities have terminal markets, and some form of commodities exchange, clearing house, and central storage facilities. This does not exist for diamonds. Diamonds are also subject to value added tax in the United Kingdom, EU, and sales tax in most developed countries, therefore reducing their effectiveness as an investment medium. A good number diamonds are sold through retail stores at very high profit margins.

As diamonds in larger sizes become increasingly rare and valuable, any easily visible and readily understood pricing system has been hard to establish. Martin Rapaport produces the Rapaport Diamond Report, which lists the prices for polished diamonds. The Rapaport Diamond Report is relatively expensive to subscribe to, and as such is not easily available to consumers and investors. Every week, there are matrices of diamond prices for round brilliant cut diamonds, by colour and clarity within size bands, and also other shapes. The price matrix for brilliant cuts alone surpasses 1,400 entries, and even this is achieved only by grouping some grades together. There are considerable price shifts close to the edges of the size bands, so a 0.49 ct stone may list at $5,500 per carat = $2,695, while a 0.50 ct stone of similar quality lists at $7,500 per carat = $3,750. This may appear such a big difference as to defy logic, but in reality stones near the top of a size band tend to be uprated slightly. Some of the price jumps are related to marketing and consumer expectations. A buyer expecting a 1 carat (200 mg) diamond solitaire engagement ring may be not ready to accept a 0.99 carat (198 mg) diamond.


There are many diamond grading laboratories, and there is no easy way for investors, consumers, or even dealers to know the relative competence and integrity of each. Even the market-leading Gemological Institute of America (GIA) suffered embarrassment recently when a small number of big, significant and precious diamonds were overgraded, resulting in legal action by one dealer against the dealer who had submitted them to the GIA for grading. A number of GIA employees left after the scandals appear, and the GIA has changed a number of its procedures. There are many laboratories affiliated to CIBJO (Confederation International de la Bijouterie, Joaillerie et Orfèvrerie, also known as the World Jewelery Confederation). There must be commercial pressure on all labs to upgrade marginal stones or lose business to other labs that are prepared to trim down standards.

Leaving the concept of fungibility to those expert economists who understand it, the non-linear pricing of different sizes (weights), which means it is not realistic to exchange, for e.g., 2 quarter carats (50 mg) for 1 half carat (100 mg), even if their relative values can be calculated. With commodities such as gold, it is clear that 1 twenty gram bar is worth the same as 2 ten gram bars, expecting the same quality. In the majority terminal markets, there needs to be a readily available standard quality, or limited number of qualities, available in sufficient quantity to be tradable. It is this issue which affects liquidity. There are lot many variables in diamond quality, and an almost infinite graduation of each quality parameter.
There are fashion and marketing elements to consider. De Beers expends marketing efforts to encourage sales of diamond sizes and qualities which are being produced in relatively huge quantities. They have also been known to take steps to deject investment, mainly because they perceive, probably correctly, that bubble prices which are followed by sharp falls are bad for long term consumer confidence in diamonds as a long-term store of value. Diamonds are mainly a consumer item.

The major positive investment parameter of diamonds is their high value per unit weight, which makes them easy to store and transport. A high quality diamond weighing as little as 2 or 3 grams could be value as much as 100 kilos of gold. This awfully condensed value and portability does bestow diamonds as a form of emergency disaster fund. People and populations displaced by war/extreme upheaval have utilized this property successfully, and presumably will do so again in the future.

The arguments known mean that it is almost certain that diamonds can never be commoditized sufficiently to allow efficient and sufficiently liquid markets. This does not mean, though, that diamonds can never be used or considered as investments. The very lack of liquidity itself could be used by a speculator who was ready to make a market in diamonds. Any such investor would need to make sure that he maintained sufficient personal liquidity to avoid distress selling, except by others. Such an investor would need to expend effort to market his stock and to advertise his willingness to buy and would effectively become a trader rather than investor.

Funds
In 2008 Diapason Commodities Management listed an investment company called Diamond Circle Capital, which intends to invest in rare colored and colorless diamonds worth more than $1m each. As of July 2008 the IPO for the closed-end fund was postponed until additional notice.

Mining companies
These do not represent diamonds at all, but rather are shares in firms that mine diamonds. The major diamond company in the world is De Beers, which is jointly owned by Anglo American (45%), the Oppenheimer family (40%) and the Botswana government (15%). The Argyle mine in Australia (owned by the Rio Tinto Group) is the principal single producer of diamonds in the globe.

Taxation
Diamonds are subject to value added tax in the EU, and sales tax in most urbanized countries. Other taxes like capital gains tax may apply for individuals depending on citizenship and if the asset is sold at increased value. Rough diamonds are also subject to taxation and in the future days all rough diamond mined in South Africa will be subject to a 7% royalty.

Diamond Retains Lustre Among Online Shoppers - Kundan sets too find prominent buyers

Diamond Retains Lustre Among Online Shoppers - Kundan sets too find prominent buyers

Reports say that glittering even during the economic downturn, diamonds better known as a "girl's best friend", have emerged as one of the most popular buys among online shoppers.

Diamonds were much sought after purchases by women as well as men in January, according to data available with online marketplace eBay India.

Apart from loose diamonds, 'Kundan sets' and diamond rings were the most popular among jewellery shoppers. "Diamonds continue to be a girl's best friend. As more women shop online as well as most male shoppers gifting jewellery to their significant others, jewellery is the single most popular category on eBay India," an analysis report of 50 most popular trends by the company showed.

Diamond Jewellery Gaining Popularity Down South - Registers a 25% positive growth

Diamond Jewellery Gaining Popularity Down South - Registers a 25% positive growth

Kerala market is known for its affinity for gold, diamond jewellery is becoming increasingly popular with customers in the state.

Industry experts say that sale of diamond jewellery in the state has increased from Rs 400 cr in 2005 to nearly Rs 600 cr in 2008. The state has about 20 diamond dealers and over 50 retail outlets selling diamond jewellery.




"Even though the economic slowdown has affected the consumer market in the state, the sale of gold and diamonds has been registering a positive growth in the last few months," they said.

As per a report of De Beers Diamond Trading Company, the top city for retail diamond jewellery sale in the country is Hyderabad, followed by Kochi. "While the national sale figure of diamond jewellery has fallen nearly 70 percent from last year's sale figure in the last four to five months, in Kerala the sale figure shows a growth rate of about 25 percent," said Sunny Diamonds chairman and managing director P T Sunny.

He said that the diamond market in the state was an established one compared to that of gold. "It took nearly five to seven years for diamond merchants in the state to attract people. Rather than considering it a luxury item, people have started to opt for diamonds because of their value for money and as a pledging option with various banks," said Sunny adding that the rising price of gold was yet another reason for people to opt for diamond jewellery.

"They fear that the price of gold may fall drastically at some point," he said. Cochin Stock Exchange Ltd director Varghese Mathew said that both gold and diamond jewellery have been attracting customers for the last several months.

"The highly volatile nature of the stock market in the last few months has forced people in the state to look for alternative segments like diamonds as an investment option," he said.

HAPPY VALENTINE DAY !!!!

Having trouble finding the perfect Valentine’s Day gift? Well, there’s help! www.lamha.com has put together a collection of the very best Valentine’s Day gift ideas. She’ll be so please by a beautiful jewelry gift this Valentine’s Day from this collection. Click over and get started shopping. Valentine’s Day is just around the corner!

LVMH 2008 Sales Rises 4 percent

LVMH 2008 Sales Rises 4 percent - But a 2 percent decline at constant exchange rates

Rapaport reports that LVMH Moët Hennessy Louis Vuitton reported that its 2008 sales rose 4 percent to EUR 17.2 billion ($22 billion). At comparable exchange rates, the company saw sales growth of 7 percent. Group profits, although nearly flat from 2007 at EUR 2 billion ($2.6 billion), set a new record for the luxury goods company.

The watches and jewelry category rose 6 percent to EUR 879 million ($1.1 billion), but experienced a 2 percent decline at constant exchange rates. Operating profits fell 16 percent to EUR 118 million ($151 million), the steepest decline of all of the company's sales categories. LVMH reported a noticeable drop in jewelry sales during the fourth quarter due to weak sales in the U.S., but "good performance in Europe and Asia compensated in part for the slowdown in the American and Japanese markets."

Bernard Arnault, chairman and chief executive officer (CEO) of LVMH, said, "The 2008 results demonstrate the exceptional reactivity of our organization in this period of economic crisis. The group has always emerged stronger from previous economic downturns thanks to the dynamic innovation of its brands, the quality of its products and the effectiveness of its teams. LVMH approaches the challenges and the opportunities of 2009 with confidence and determination and has set the objective of increasing its leadership position in the worldwide luxury goods sector."

Diamond Producers Plan Joint Marketing Campaign -Alrosa, De Beers, Harry Winston and BHP Billiton

Diamond Producers Plan Joint Marketing Campaign
-Alrosa, De Beers, Harry Winston and BHP Billiton

The Israel Diamond Portal Reported that Diamond producers Alrosa, De Beers, Harry Winston, BHP Billiton and Rio Tinto, which together control over 90% of the global diamond market, are planning a joint marketing campaign to promote demand for diamonds.

The President of Alrosa, Sergei Vybornov, stated that part of the plan is to advertise diamonds as an investment vehicle in order to boost demand.

De Beers spokesperson Lynette Gould said that the diamond producing companies will set up an SPV, SteerCom, to implement their common market strategy. Management consultants McKinsey & Co are reportedly working on the financial planning which will involve all of the production chain's links from diamond miners to cutters and jewelers.
Vybornov and Gould did not specify the amount of money to be invested in the campaign.

Sergei Goryainov estimates that an effective marketing campaign will cost around $1 billion, with most of the sum focused on advertising.