MARCH 2007 NEWSLETTER
As Valentine’s Day passes and we approach the spring season, it should be noted that
rare colored diamonds continue to be the shining star of the jewelry business. The recent
2007 Oscar awards ceremony was noted for some of the exceptional colored diamonds
worn by celebrities.
The Tucson Gem & Mineral Show in January and early February also opened with a new
colored diamond pavilion; the first time the show has dedicated an entire section to rare
colored diamonds. Dealers from Hong Kong to New York were present and reported
robust sales, particularly for pink, yellow and blue diamonds.
We were very fortunate to acquire a small selection of flawless vivid yellow diamonds
from one of our international brokers. These rare pieces in the 1.5 to 2 carat range have
shown very solid results at the auction level and have been very popular with our clients
looking to diversify their collections into other segments of the market.
Rapaport Diamond News January, 2007 – Hong Kong Market
Hong Kong's retail sales rose 7.4 percent to $2.2 billion (HKD 17 billion) in November,
driven by low unemployment and a surging stock market, according to the latest figures
from Hong Kong's Census and Statistics Department. November's sales growth follows a
revised 7 percent gain in October. Consumer spending in Hong Kong during the
month focused on clothes, electronics and meals. Clothing sales increased 5.5 percent
while sales of jewelry watches and clocks jumped 20.7 percent.
February 23, 2007 - Christie's 2006 Jewelry Sales +27% to $354.7M
Christie's jewelry sales in 2006 reached $354.7 million, a 27 percent increase from 2005
and the highest annual jewelry total every achieved by Christie's. In 2006, Christie's
jewelry sales in the United States rose 27 percent to $110 million, while sales in Europe
rose 27 percent to $163.8 million, with the highest totals ever achieved by Christie's in
Amsterdam, London, Milan/Rome, Paris, and St. Moritz. In Hong Kong, Christie's sold
$80.4 million, including a $39.3 million sale in November.
Rapaport Diamond News, February 2007 - DTC Set to Invest In China's Emerging
De Beers Diamond Trading Company (DTC) anticipates demand for diamonds in China
will continue to see double-digit growth in the coming years. According to the China
Daily, diamond sales grew 13 percent to $1.7 billion in 2006, on the back of an
auspicious year for weddings in the country. Christina Hudson, marketing director of
DTC Greater China, attributes the increase in diamond demand to China's rapidly
growing economy and fast-growing middle class. Local demand for diamonds is very
high, she noted. "If you ask a Chinese woman what luxury item she wants the most, the
number one answer is diamonds. People own diamond jewelry as equity with their
weddings," Hudson said.
JCKK Group February 19, 2007
For the week of Valentine's Day, a resort hotel in Los Cabos, Mexico, is displaying a
heart-shaped 10.5-ct. yellow diamond ring that they say is worth $1.5 million. It is on
view for its guests and for sale.
The ring is on display at Las Ventanas al Paraiso, A Rosewood Resort, as part of a joint
promotion with Q Diamonds International Boutique. So far no one has taken the high-
priced romantic plunge.
Albert Gad, owner of Q Diamonds, bought the diamond in the rough from De Beers.
Normally, yellow diamonds are cut in radiant shape, which often shows the most color.
However, Gad said the color of the stone was so intense and unique, that he decided to
take a risk and make it heart shaped.
The vivid yellow diamond has VS2 clarity and a GIA certificate. Christopher Designs
created a one-of-a-kind setting that complements the stone: a ring of platinum and 22K
yellow gold with 4.15 cts. of yellow and white diamonds.
Fashion Forward: Brown Jewels
February 2007 - Fashion Forward: Brown Jewels
If there's one gemstone color that has undeniably been resurrected, it's brown, which has
gone from rejected to coveted. Favorite tawny shades this season include transparent
gems, like champagne, cognac, and chocolate diamonds, and smoky quartz; opaque gems
like agates, druzy quartz, brown pearls, and tiger's-eye; and even other materials like
wood and new brown gold. Nothing exemplifies jewelry's warmer palette better than
these earthy tones. Brown combines well with white metals and yellow and rose gold.
Combined with other gem colors, brown is the ideal foil, the first truly neutral gemstone.
Indeed, brown is gaining momentum due in part to its rise as a year-round fashion basic
in ready-to-wear and home furnishings. In fine jewelry, brown creates an understated
drama that appeals to a broad range of consumers.
Sotheby’s and Christie’s Winter auctions in St Moritz, Switzerland on February 20th and
21st experienced strong bidding from international collectors and drove prices and overall
results higher than initially anticipated. Sotheby’s sale brought in over 10 million Swiss
Francs in sales, while Christie’s sold over 20 million Swiss Francs. The first Christie’s
auction in Dubai also raised over $11 million dollars, with multiple stone colored
diamond jewelry selling particularly well.
Date City House Lot Cut Carat Colour Clarity Estimate Price (£)
Dec-06 London Sotheby's 395 Heart 1.06 Fancy Yellow SI2 5,000 - 7,000 6,000
Dec-06 London Sotheby's 397 Radiant 1.34 Fancy Light Yellow VS1 3,960 - 5,940 4,455
Dec-06 London Sotheby's 397 Radiant 1.37 Fancy Light Yellow SI1 4,040 - 6,060 4,545
Dec-06 London Sotheby's 400 Oval 2.43 brownish Yellow VVS2 7,500 - 8,500 10,200
Jun-06 London Sotheby's 374 Radiant 2.07 Fancy Yellow SI1 9,000 - 12,000 10,800
Date City House Lot Cut Carat Colour Clarity Estimate Price ($)
Jan-07 Dubai Christie's 117 Circular 30.23 Fancy Black N/A $30,000-$50,000 $86,400
Date City House Lot Cut Carat Colour Clarity Estimate Price (CHF)
Feb-07 St. Moritz Sotheby's 60 Pear 1.85 Intense Yellow VVS1 28,000 - 42,000 33,600
Feb-07 St. Moritz Sotheby's 152 Rectangular 1.73 Intense Yellow VS1 25,000 - 37,500 30,000
Feb-07 St. Moritz Sotheby's 152 Rectangular 1.73 Intense Yellow IF 25,000 - 37,500 30,000
Feb-07 St. Moritz Sotheby's 290 Pear 1.39 Vivid Yellow VS1 32,000 - 48,000 42,000
Feb-07 St. Moritz Sotheby's 305 Square 6.38 Fancy Yellow VS1 80,000-120,000 90,000
Feb-07 St. Moritz Sotheby's 355 Rectangle 13.72 Fancy Yellow VS1 190,000 - 290,000 300,000
Feb-07 St. Moritz Christie's 199 Pear 0.8 Intense Yellow N/A 11680 - 15,330 14,000
Feb-07 St. Moritz Christie's 199 Pear 0.71 Intense Yellow N/A 10,370 - 13,600 12,440
Feb-07 St. Moritz Christie's 199 Pear 0.68 Intense Yellow VS1 9,930 - 13,000 11,900
Feb-07 St. Moritz Christie's 215 Cushion 5.06 Intense Yellow VVS1 100,000 - 130,000 156,000
Feb-07 St. Moritz Christie's 243 Octagonal 1.01 Intense Blue N/A 120,000 - 150,000 132,000
Feb-07 St. Moritz Christie's 332 Asscher 6.48 Vivid Yellow VS1 380,000 - 450,000 456,000
Feb-07 St. Moritz Christie's 335 Radiant 6.19 Fancy Yellow N/A 80,800 - 95,950 90,900
Feb-07 St. Moritz Christie's 335 Radiant 6.06 Fancy Yellow N/A 79,200 - 94,050 89,100
Feb-07 St. Moritz Christie's 354 Heart 5.02 Dark Gray Blue VVS1 800,000 - 950,000 1,078,400
Feb-07 St. Moritz Christie's 363 Pear 4.21 Very Light Pink VS1 120,000 - 150,000 132,000
- London, Jewels, Sotheby’s, March 28, 2007
- Hong Kong, Magnificent Jewels & Jadeite, Sotheby’s, April 10, 2007
- New York, Magnificent Jewels, Sotheby’s, April 24, 2007
- Geneva, Magnificent Jewels, Sotheby’s, May 17, 2007
- New York, Magnificent Jewels, Christie’s, April 25, 2007
- Geneva, Magnificent Jewels, Christie’s, May 16, 2007
- New York, Important Jewels, Christie’s, June 13, 2007
February 23, 2007 - Russia Rough Production Flat, Exports +52% in 2006
Diamond production in Russia rose 0.94 percent to 38.36 million carats during 2006,
according to the Finance Ministry. In terms of monetary value, Russia reported rough
production rose 1.7 percent to $2.6 billion. The average price per carat held flat at $67.11.
The ministry office reported that 35 million carats of rough were exported in 2006, which
was an increase of 52 percent. Major markets for rough exports included the European
Union, Israel, and Dubai.
Rio Tinto 2006 Diamond Operations -22% to $838M
Rio Tinto's diamond operations generated sales of $838 million in 2006, a decrease of 22
percent from 2005. Rio Tinto's financial results for year 2006 show that net earnings
from diamond operations dropped 27 percent to $205 million. Consumer demand for
diamond jewelry remained strong, but the supply chain was negatively affected by high
levels of indebtedness, rising interest rates and flood related factory closures in the main
cutting centers in India. Diamond exploration continued in India, Brazil, Canada,
Botswana, Russia, Mauritania, and Mali. Rio Tinto chief executive, Leigh Clifford
anticipates continued investment in the Argyle and Diavik diamond mine development
Economist February 17, 2007 – US Mortgage Market
The woes of the sub-prime lenders are mostly self-inflicted. After interest rates turned up
in 2004, mortgage makers could no longer count on custom from homeowners looking to
switch to new mortgages at cheaper rates. Mortgage writers became desperate for a new
source of revenue. They found two: riskier borrowers and riskier products. Not content
with these two moneypots, the more eager lenders began to combine them to make a
third. They offered risky products to insecure borrowers. About 27 % of all mortgages
made in 2006 were of such non-traditional kinds, according to Inside Mortgage Finance,
a newsletter. Should loan-losses climb, investors in mortgage-backed securities will also
get burnt, especially those holding the riskier, higher-yielding bonds.
Economist February 17, 2007 – Global Financial Markets
The financial markets are in a state of nervous anticipation. Things have been going
extremely well. According to David Rosenberg of Merrill Lynch, the American
stockmarket has sustained its longest run since 1954 without a day’s decline of 2 %. The
interest rate spread offered by high yield bonds is thinner than ever. A market correction
Corrections can be caused by economic downturns or by some kind of unexpected event,
such as the Russian debt crisis of 1998. What might prompt a correction now? One
possible trigger might be the trend in corporate profits. Already the pace seems to be
slowing. Then there is debt. A sudden upturn in consumer or corporate debt defaults
could prompt a sell-off in the bond markets.
The information in this newsletter is for entertainment purposes only. The information contained in these quotes is believed to be
from reliable sources. Pastor-Genève cannot be held liable for any misrepresentations on behalf of the sources we use. The quotes
used only represent part of the article. For full viewing of any article, please contact your advisor. Colored Diamonds are a long-term
investment and are subject to price fluctuations. Pastor-Genève cannot guarantee that past performance of colored diamonds will
continue in the future and that a colored diamond purchased from Pastor-Genève will provide a net gain. They are not as liquid as
traditional investments. They are not necessarily appropriate for every individual. Pastor-Genève is not an investment advisor nor are
they licensed to give investment advice.