De Beers increases rough diamond prices by 5 percent

LONDON (Reuters) - The world's biggest diamond producer De Beers boosted rough diamond prices by an average of 5 percent this month, the firm said on Friday.

The price hike by the group's marketing arm, the Diamond Trading Company (DTC), came amid strong demand for diamonds in Asian emerging markets and tight supply, which led to price increases of 8.5 percent earlier this year.

A De Beers official said last month that buoyant diamond demand from China, India and the Middle East would more than offset expected slower sales in the United States, which accounts for half of the diamond jewelry market.

De Beers, 45 percent owned by mining group Anglo American (AAL.L: Quote, Profile, Research ), made the price increase during the firm's July "sight" this week, one of 10 week-long events during the year at which the DTC markets rough diamonds to tightly-screened clients.

"Some increases have been made at the July Sight, the overall effect of which is plus 5 percent," De Beers said in an email in response to a query.

De Beers said in February that it expected a rebound in its rough diamond sales this year after a dip in 2007.

Sales fell 3.7 percent to $5.9 billion (2.97 billion pounds) last year, but supply shortages were expected to keep prices strong and help to lift the 2008 sales figures, De Beers had said.

De Beers, which controls around 40 percent of the diamond market, posted flat output of diamonds last year at 51 million carats and a steady result is expected in 2008.

Blue Nile sued for Trademark Infringement

Diamond jewelry manufacturer Hearts on Fire has sued online retailer Blue Nile for trademark infringement and unfair competition, Bloomberg reported. The company says Blue Nile is using keywords on the Internet to misdirect those who are searching for Hearts on Fire diamonds.

On the other hand Blue Nile, which isn't an authorized seller of Hearts on Fire diamonds, bought the search term ``hearts on fire'' from Webcrawler.com, a search engine that searches other search engines, according to the June 20 complaint filed in federal court in Boston.

Searchers who use that phrase end up at the www.bluenile.com Web site, Boston-based Hearts on Fire said in its court papers.

Hearts on Fire asked the court to order Blue Nile to quit infringing the trademark, and for money damages, including profits relating to the infringement. It also seeks attorney fees.

Pluczenik Displays High Jewelry in Partnership with Chaumet

At the recent JCK event in Las Vegas, Belgian DTC Sightholder Pluczenik displayed diamond jewelry selections from Chaumet, a prestigious jewelry brand, part of the LVMH group, as part of a partnership the two companies formally announced at the Baselworld show last year.

The partnership was signed with the aim that the two would “work together on supplying exceptional diamonds and developing their activity within the high jewelry segment, by increasing diamond content and especially the use of exceptional stones in Chaumet’s creations, including colored diamonds.”

The pieces displayed at the Vegas show were part of Chaumet’s current collections, including the “Abeille ring” – so called because of its bee shape, a Napoleonic symbol – from Chaumet’s “Catch me, if you love me” collection.

“In a way, Napoleon is our top salesman,” commented Thierry Fritsch, CEO of Chaumet. “That rich historical heritage is an essential ingredient of our brand.” Chaumet is a Paris-based house that first established its reputation as a jeweler to Emperor Napoleon, and whose current collection includes bracelets with love messages inspired by his gifts to Josephine.

The Abeille ring features a 3.45 carat fancy vivid orange diamond, set in yellow gold and white diamonds. The bee can even move its diamond-encrusted wings. It is valued at just under $2 million.