New GemeFancy identifies diamond color

GemeWizard Inc. is offering a free three-month trial of its new color-assessment program for fancy-colored diamonds, GemeFancy.

According to a release from GemeWizard, GemeFancy is a color-assessing and communication application that allows users to accurately identify, describe and communicate all the colors visible in fancy-colored diamonds, and to place them within the Gemological Institute of America's (GIA) Fancy Diamond color range.

The new system identifies a total of 27 main hues, each of which is modified into 36-42 fancy grades and other color descriptions. The images are described using the standard GIA terminology and GemeWizard's alphanumeric color code.

The system then creates an e-mail message that allows the color information to be transferred to a third party.

Menahem Sevdermish, GemeWizard's founder and developer, said the goal of the new system is to provide anybody handling fancy-colored diamonds a common language with which to communicate hue information.

"By creating the GemeFancy, we have provided the industry with tools to make this dream of a common color language a reality," he said.

The free three-month trial period began on May 5. To access the free trial for three months with no obligations, visit Gemewizard.com/FancySquare.

GemeWizard, a provider of software and hardware for professionals in the colored-gemstone, fancy-colored diamond and jewelry industries, offers an entire suite of colored-diamond identification products, called GemeSquare. The system allows users to describe a gem's color more accurately and to communicate the information to other professionals who are not GemeWizard users.

GemeWizard is slated to display at a booth at the upcoming JCK Las Vegas jewelry show.

HSBC to Open Diamond Banking Branch in Dubai

HSBC announced its support of the Dubai diamond industry, saying it will open a diamond banking branch. The branch will probably be located in the Almas Tower, future home of the Dubai Diamond Exchange.

The Dubai Multi Commodities Centre has been putting lot of effort in bringing banking to the DDE, realizing that without offering a full range of supporting services, the local diamond industry will not grow to become a major diamond trading center.

The DMCC said HSBC’s decision follows an extensive campaign to promote diamond banking activities, adding that HSBC is establishing a diamond banking unit to finance the local and regional trade.

In a release, DMCC said HSBC will offer a range of innovative financing solutions including import credits, working capital and receivables financing, as well as offer factoring services, precious metals hedging, and physical services to meet the needs of the entire supply chain.

The Almas Tower is in final preparations to open later this summer. Many of the floors have been handed over to buyers for retrofitting and most supporting services, such as secure delivery, already arranged.

Diamond India to Hold First B2B Sale of Loose Stones

India’s first ever private B2B sale of diamond solitaires and colored gemstones is being organized in Mumbai June 21– 30t by Diamond India Ltd, a consortium of 58 leading Indian diamond manufacturers, including DTC Sightholders, Rio Tinto’s Select Diamantaires and BHP Billiton customers.

Goods on display will include solitaire diamonds of 1 carat and above in all shapes and colors and a range of precious colored gemstones – blue sapphires, rubies, ruby lights and emeralds of all shapes, sizes and qualities.

The event is a strictly B2B platform and is expected to have participation from major Indian diamond manufacturers and leading companies from Antwerp, Israel and the U.S. The recently formed Indo-Thai joint venture company Prakruti will also be displaying a range of colored gemstones.

Buyers at this by-invitation only event will be from among India’s top 500 retailers. Viewing and sale will take place at DIL’s Mumbai office by appointment only.

“We will be making vigorous marketing efforts to bring in leading retailers from all across the country through advertising on trade platforms, e-mailers, personalized invitations, etc.,” says Praveen Shankar Pandya, Chairman, DIL.

He adds that the organizers will ensure that all items have clearly defined prices and that there will be complete transparency in the process.

Ever since the government abolished the duty on cut and polished diamonds, there has been an increasing interest among international polished manufacturers to sell their goods in the Indian market, which today is one of the major diamond consuming markets worldwide. Indian jewelers report that the demand for large sizes is particularly strong.http.

Diamond market strong despite external pressures

To paraphrase a former director of the Diamond Trading Company (the wing of DeBeers responsible for selling rough diamonds): The demand for diamonds is driven by two factors: greed and vanity. We do not foresee a shortage of either in the future.

There has been some talk of late of rising diamond prices. Part of this is that diamonds, like almost all commodities, are priced in US dollars. As the dollar goes down the price goes up. Most economists would agree that the US dollar is falling relative to the other major currencies. This situation is different from a few years ago, when South African producers were closing mines, some in part due to end of mine life, but also in part due to a strong Rand versus the US dollar.

According to Mr. Laboucan Prolific analyst diamonds will continue to see strong demand. In particular the emerging upper-class of very populous countries (China and India) will continue to be a growing market for luxury goods, one that will outstrip that of the U.S. Even if only 1% of the 2.4 billion people living China and India make it to the high disposable income level to afford luxury goods in the next ten years, that is a new crop of 24 million consumers - a number a little short of the population of Canada.

The problem with diamonds is that they are not just any other commodity. Gemstones are evaluated individually based on a number of characteristics unique to each individual stone. It can be difficult to determine if prices for diamonds are increasing due to this increased complexity. Mr. Laboucan alludes to this by mentioning the fact that companies producing larger/high quality diamonds will always see strong business as such goods are for the “ultra-rich” and immune to economic swings. The market for smaller/lower quality diamonds is more sensitive to economic pressures and is mainly a function of the level of disposable income possessed by the upper-middle class. This brings us back to the emerging middle class in the BRIC countries, the potential size of which could very well dwarf that of North America, and possibly even Europe as well. Should the economies of these countries continue to grow, the above scenario becomes a strong possibility. Even with signs of slowdown in China, other growing countries such as India, Brazil, Russia, South Africa, and Turkey will pull up the slack.

With these fundamentals in mind, a cautious investor should be able to pick the most promising diamond companies now, when they are cheap. Assuming due diligence has been properly performed, strong gains could be reaped in the market within a few years time.

Lonrho Mining Recovers 61ct fancy Yellow at Schmidtsdrift Mine

Lonrho Mining has recovered a 61.3 carat fancy yellow diamond at its Schmidtsdrift Mine in South Africa, the company said Thursday (May 15.)

"This diamond is of extremely high quality and is expected to achieve a very high value,” Charles Mostert, chief executive officer of Lonrho Mining, said of the octahedron shape stone. “We are confident that the recently completed operational review at the Schmidtsdrift mine will continue to have a positive effect and hopefully yield further diamonds of this quality."

Lonrho Mining, formerly known as Nare Diamonds, owns 80 percent of the Schmidtsdrift mine with the Schmidtsdrift Communal Property Association owning the remainder.

The mine has recovered 16,395 carats of diamonds in the two years since operations commenced in April 2006. Production included 328 stones larger than 5 carats, including a rare 235 carat stone, two 66 carat stones and 25 stones between 15 and 50 carats.

Schmidtsdrift comprises six contiguous farms along the western bank of the Vaal River, with a combined area of 320 square kilometers.

Jewelry Design Contest to Highlight the Beauty of Athletics

An international jewelry design competition is being held to promote and develop jewelry brands from Shenzhen, a major jewelry manufacturing area in China. The 2008 China International Jewelry Design Contest is themed on “the Beauty of Athletics” and will highlight the spirit of the 2008 Beijing Olympics.

According to the organizers – the Shenzhen Gold & Jewelry Association and high-end jewelry manufacturer TTF Jewelry – the purpose of the contest’s launch is to “respond to the current policy for globalization of Chinese jewelry brands,” refresh the level of jewelry design in the country and discover new, talented designers.

The contest is open to professional and non-professional jewelry designers, manufacturers and artists in the world, individuals and companies included. The organizers note that college students are also welcome to take part.

The design style should be concise, modern, and express the “Swifter, Higher, Stronger” theme of the Beijing Olympics. The design should also be innovative, practical and marketable.

Acceptable materials for the designs include gold, platinum, palladium-gold, diamonds, gemstones and jade, among others. The total diamond weight should not exceed one carat.

Additional submission requirements and details will be available shortly on the contest’s website, http://www.0755zb.com/.

The contest is also being held in cooperation with the Gems & Jewelry Trade Association of China, the National Gems and Jewelry Technology Administrative Centre, the Shanghai Diamond Exchange and Oro D’Autore, a contemporary jewelry art collection in Arezzo, Italy.

SA Proposing 2.2 - 3.3% Rough Diamond Royalty

Following continuing appeals by some of South Africa’s largest mining firms, the National Treasury agreed to adjust the way it calculates new mining taxes, Bloomberg reports.

Royalty rates on rough diamonds and other unrefined products will be 2.2 to 3.3 percent with a levy of as much as 7 percent, the Treasury said Tuesday in a written submission to parliament.

Last March, diamond miner De Beers warned that the company would be subjected to an “unfair form of double taxation,” affecting the Finsch diamond mine, due to the combined new draft of the Royalty Bill with the Mineral and Petroleum Resources Development Act.

The Ministry of Mines and Energy has rejected De Beers’ assertion.

In recent weeks multi commodity miner Anglo American and other mining companies warned that the royalty could deter investment.

In general, royalty rates will range from 0.5 percent to 7 percent of sales, after certain costs, and will depend on what miners produce as well as profitability, the Treasury announced.

The tax on refined products such as gold will range between 1.7 and 2.5 percent, with a 5 percent cap.

The new tax formula will allow depreciation and amortization to be deducted.