Argyle Unearths 12 Carat Pink Diamond, Biggest in Its History
By JCK Staff

Argyle Unearths 12 Carat Pink Diamond, Biggest in Its History

The Argyle mine in the East Kimberley region of Western Australia has just unearthed a 12.76 ct. pink diamond, the largest in its long history of discovering notable pinks.

The diamond, dubbed The Argyle Pink Jubilee, is a light pink stone, considered similar to the Williamson Pink, which Queen Elizabeth II received as a wedding present and wore at her Coronation.

Expert diamond polisher Richard How Kim Kam, who has worked for Argyle for 25 years, has begun work on polishing the pink, according to the mine’s owner Rio Tinto.

“I’m going to take it very carefully,” said Kam in a statement. “I know the world will be watching.”

When the diamond has been cut and polished it will be displayed and then sold as part of the annual Argyle Pink Diamonds Tender.

 “A diamond of this caliber is unprecedented,” said Argyle Pink Diamonds manager Josephine Johnson in a statement. “It has taken 26 years of Argyle production to unearth this stone and we may never see one like this again.”

Survey: Young Consumers Still Favor Brick-and-Mortar Stores

More than 68 percent of 18–25-year-olds prefer to shop in stores rather than online for apparel and shoes, according to a new survey by a group of LIM College students in conjunction with the National Retail Federation Student Association. "Retail observers have been significantly overestimating our use of online and digital technology for shopping,” said Nicole Flasch-Mihalko, a member of the LIM College NRFSA team, in a statement. “We like shopping in stores and are not as engaged in shopping on the Internet as many have touted. I guess the demise of the brick and mortar format of retailing—at least for 18-25 year-olds—is grossly exaggerated." Olivia Cornell from Cornell’s Jewelers in Rochester, N.Y., tells JCK that younger customers want to come in and try on jewelry. “I see a lot of young women shopping for special occasions like graduations, a new job, or a promotion,” she says. “Girls nowadays are much more sophisticated. They have a handle on their own style.” “We are finding more younger people looking at engagement rings,” says Sharran Selig from Bill Selig Jewelers in Windsor, Conn. “Our customers typically look online, but generally want to come in and see the jewelry in person.” Other findings include: Sixty-six percent of 18­–25-year-olds use the Web to browse and compare prices. Only 23 percent shop from a tablet or a smartphone. Sixty-six percent like to think about their purchase before buying. Fifty-six percent pay for most of their purchases via debit cards as opposed to cash or credit cards. Only 20 percent shop from flash sale sites such as Rue La La and Gilt Groupe. In fact, the majority of those surveyed do not know about them. Many 18­–25-year-olds said they would "like" a brand on Facebook, but more than 88 percent do not yet want to shop through Facebook or Twitter.

http://www.jckonline.com/2012/01/23/survey-young-consumers-still-favor-brick-and-mortar-stores

The Big List: Who Wore What Jewelry to the Golden Globes

By Jennifer Heebner, Senior Editor

Posted on January 18, 2012

The Jan. 15 Golden Globe Awards may have been about celebrating the best in motion pictures and television, but for those of us in the industry, the affair means jewels—big and pricey ones in abundance on some of America’s highest-profile celebs.

Here, JCK breaks down the looks by trend and by designer name.
Black and White

The classic color combination was favored in gowns as well as jewelry combinations by many at the Globes.

Who Wore Them:

• Best Original Song winner Madonna ("Masterpiece," from W.E.) in a blackened platinum diamond and pearl cross necklace by Neil Lane

• Michelle Pfeiffer, presenter, in 18th-century rose-cut diamond Girandole earrings by Neil Lane

• Shaun Robinson in blackened gold and colorless diamonds from Dena Kemp

• Bridesmaids nominee Kristen Wiig in Fred Leighton jewelry
Color Play

Yellow and peacock blue dresses dazzled on the red carpet, and so did a multitude of rainbow hues of jewels.

Who Wore Them:

• Jenna Dewan-Tatum in oversize colorful blue-green earrings by Irene Neuwirth

• Project Runway host Heidi Klum in a turquoise bib necklace and matching cocktail ring by Lorraine Schwartz

• Elle Macpherson in colored bangles by Lorraine Schwartz as well as oversize yellow stone sideways-set hoop earrings

• The Good Wife nominee Julianna Margulies in oversize jade drop earrings by Lorraine Schwartz

• Smash star Debra Messing in green and purple earrings by Lorraine Schwartz

• Julianne Moore in emerald tassel drop earrings by Fred Leighton

• Octavia Spencer, best supporting actress winner for The Help, in lavender jewels by Irene Neuwirth

• Freida Pinto in a yellow diamond bib necklace by Chopard

• Kathleen Robertson in turquoise, diamond, and platinum chandelier earrings, diamond bangles, and rings by Neil Lane
Hot Heads

Jeweled headbands topped off a few ensembles.

Who Wore Them:

• Busy Philipps in Forevermark diamonds

• Charlize Theron, best actress nominee Young Adult, in Cartier

• Michelle Williams, best actress winner for My Week With Marilyn, in Fred Leighton for Forevermark
In Great Shapes

There were mermaid gowns and frilly frocks. But the jewelry (earrings, in particular) had some great shapes as well.

Who Wore Them:

• Celebrity chef Giada De Laurentiis in rough diamond flower earrings by Sutra

• How I Met Your Mother's Jennifer Morrison in blackened gold flower earrings with diamonds by Amrapali

Sutra diamond and sapphire earrings worn by Laura Linney at 2012 Golden Globes

• Laura Linney, best actress nominee for her starring role in The Big C, in blackened Gothic blue sapphire star earrings with diamonds by Sutra

• Presenter Michelle Pfeiffer in 18th-century rose-cut diamond Girandole earrings from the Neil Lane Archival Collection
Just Drop It

Pear-shape and cabochon-cut drop-shape stones dangled off the ears of many a star on Sunday night.

Who Wore Them:

• Turkish actress/presenter Meltem Cumbul in Erica Courtney

• Dancer/actress Julianne Hough (Footloose, Rock of Ages) in onyx and diamonds from Sutra

• American Idol alum/Smash star Katharine McPhee in Amrapali

• Brittany Snow in chrysoprase cabochons from Adeler

• Hannah Simone in rose-cut diamonds from Amrapali

• Miss Golden Globes Rainey Qualley in Trésor Collection
Designer and Jewelry Brand Names

Wearing Adeler

• Brittany Snow

Wearing Amrapali

• Katharine McPhee

• Jennifer Morrison

• Hannah Simone

Wearing Bulgari

Bulgari diamond earrings worn by Jessica Alba at 2012 Golden Globes

• Jessica Alba in platinum earrings with diamonds, an 18k white gold bracelet with diamonds, and an 18k white gold ring with diamonds

Bulgari diamond Snake bangles worn by Claire Danes at 2012 Golden Globes

• Claire Danes, best actress for her starring role in the Showtime drama series Homeland, in platinum earrings with princess-cut diamonds and a Spiga bracelet in 18k white gold with diamonds

Bulgari diamond and emerald earrings worn by Emily Deschanel at at 2012 Golden Globes

• Bones star Emily Deschanel in 18k white gold earrings with emeralds and diamonds, a platinum ring with tsavorite and diamonds, and a platinum ring with diamonds and an emerald, and a white gold and diamond Parentesi Openworks bracelet

• Jodie Foster, nominee for her role in Roman Polanski's Carnage, in platinum earrings with two emerald-cut diamonds, six pear-shape and baguette and round brilliant-cut diamonds, a platinum bracelet with diamonds, and an 18k white gold ring with a round brilliant-cut diamond, a pear-shape diamond, and melee

Bulgari diamond and sapphire earrings worn by Sarah Michelle Gellar at at 2012 Golden Globes

• Sarah Michelle Gellar in 18k white gold earrings with chalcedony, sapphires, and diamonds, a platinum ring with three round brilliant-cut diamonds and melee, and an 18k white gold and Elisia Diamond and Parentesi Openworks bracelet

• Mila Kunis in an 18k white gold and diamond ring

Wearing Cartier

• Mila Kunis in diamond ring and earrings

• Charlize Theron

Wearing Chopard

• Stacey Keibler in platinum and diamond cluster earrings

• Andie MacDowell in a platinum and diamond line bracelet

• Queen Latifah in platinum and diamond chandelier earrings and a platinum and Asscher-cut diamond bracelet

• Penelope Ann Miller in a platinum and diamond bib necklace, platinum earrings with heart- and pear-shaped diamond drops, a platinum and heart-shaped diamond line bracelet

• Freida Pinto

Wearing Erica Courtney

• Meltem Cumbul

Wearing Fred Leighton for Forevermark Diamonds

• My Week With Marilyn winner Michelle Williams, in a diamond Garland headband, diamond stud earrings, and a diamond snake ring

Wearing Fred Leighton

• Glee star Dianna Agron in a platinum bow bracelet with onyx and diamonds and a platinum line bracelet with diamonds and onyx (both from the 1920s), and a ring

• Viola Davis, best actress nominee for The Help

• Nicole Kidman (earrings)

• Rooney Mara, best actress nominee for The Girl With the Dragon Tattoo

• Helen Mirren in platinum pendant earrings with sapphires and diamonds circa 1950, a platinum barrel link bracelet with sapphires and diamonds circa 1930

• Amanda Peet in platinum and diamond snake hoop earrings and a platinum and diamond fan bracelet

• American Horror Story's Sarah Paulson in a platinum ring with a 1920's cushion-cut diamond and sapphires

• Meryl Streep, best actress in a drama winner for The Iron Lady

• Tilda Swinton, best actress nominee for We Need to Talk About Kevin (bracelets and brooch)

• Mildred Pierce winner Kate Winslet, also a nominee for her role in Carnage

• Reese Witherspoon in platinum and European cut diamond drop earrings, a pair of vintage platinum and diamond bracelets, and a platinum and diamond bracelet from the 1920s

• Evan Rachel Wood, best supporting actress nominee for Mildred Pierce

• Kristen Wiig

• Julianne Moore

Wearing Forevermark Diamonds

• Aasha Davis

• Jessica Joffe

• Julia Jones

• Azita Ghanizada

• Julianne Hough

• Rainey Qualley

• Leven Rambin

• Rebecca Romijn

• Jessica Szohr

Wearing Jacob & Co.

• Maria Menounos, Extra TV host, in a five-row diamond flower bracelet

• The Real Housewives of Beverly Hills' Kyle Richards in palladium and diamond earrings

• Necessary Roughness nominee Callie Thorne, in an emerald-cut diamond and palladium ring

Wearing Dominic Jones for Gemfields

• Sharon Osbourne in diamond and emerald earrings

Wearing Dena Kemp

• Maria Menounos in palladium and yellow diamond earrings

• Giuliana Rancic in palladium and diamond Sculpture ring

• Shaun Robinson in black and white diamond drop earrings and a diamond cocktail ring

Wearing Martin Katz

• Modern Family nominee Julie Bowen

• Desperate Housewives' Felicity Huffman

Wearing Harry Kotlar

• Maria Menounos in a palladium and yellow diamond ring

Wearing Kwiat

Kwiat diamond and sapphire earrings worn by Tina Fey at at 2012 Golden Globes

• Tina Fey, best actress nominee for 30 Rock, sapphire and diamond jewels

• Judy Greer in platinum and diamond earrings and platinum and diamond bracelets

• Mission: Impossible–Ghost Protocol star Paula Patton in platinum and diamond Firecracker earrings and platinum and diamond bracelets

Wearing Neil Lane

• Mireille Enos, best actress nominee for the AMC TV series The Killing, in diamond tier drop chandelier earrings, two diamond and platinum bracelets, and a diamond ring

• Diane Lane, nominee for the HBO film Cinema Verite, in platinum chandelier earrings with yellow and colorless diamonds, a platinum cocktail ring with yellow and colorless diamonds, and platinum bangle bracelets with yellow and colorless diamonds

• Kelly MacDonald, nominee for HBO's Boardwalk Empire, in emerald and gold stud earrings and an emerald and diamond and platinum cocktail ring


• Madonna in a diamond, pearl and gold cross necklace, five diamond and platinum cuff bracelets, and a diamond and platinum cocktail ring

• Michelle Pfeiffer

• Nicole Richie in diamond, ruby, and gold bracelets, diamond pearl and gold chandelier earrings, and diamond and ruby and gold cocktail rings

• W.E. star Andrea Riseborough in a platinum and diamond solitaire diamond necklace

• Callie Thorne in a diamond and platinum bracelet, diamond cocktail ring, and diamond earrings

Wearing M.C.L by Matthew Campbell Laurenza

• Bridesmaids' Maya Rudolph in silver and enamel bangles  

Wearing Noelle Leone

• Callie Thorne in a diamond and palladium ring

Wearing Andrew Meyer

• Maria Menounos in a palladium and diamond Asscher-cut eternity and a palladium and Asscher- and round-cut eternity band

Wearing Irene Neuwirth

• Octavia Spencer

• Jenna Dewan-Tatum

Wearing Alberto Parada

Alberto Parado diamond and topaz ring worn by Livia Firth at 2012 Golden Globes

• Livia Firth, Vogue UK blogger and Colin Firth's wife, in an 18k rose gold, diamond, and white topaz ring

Wearing Lorraine Schwartz

• Kate Beckinsale

• Actress/director (In the Land of Blood and Honey) Angelina Jolie (diamond earrings)

• Glee star Jane Lynch

• Elle Macpherson (bangles)

• Julianna Margulies

• Glee's Lea Michele

Wearing Simon G

Simon G. diamond and palladium earrings worn by Elizabeth McGovern at 2012 Golden Globes

• Elizabeth McGovern, best actress nominee for Downton Abbey, in emerald-cut diamond and palladium earrings

Simon G. diamond and palladium earrings worn by Guiliana Rancic at 2012 Golden Globes

• Giuliana Rancic in palladium and diamond stud earrings

Wearing Sutra

• Julianne Hough in onyx and diamonds

• Giada De Laurentiis

• Laura Linney

Wearing Tiffany & Co.

• Jessica Biel in a platinum and round diamond opera length necklace worn down her back and platinum and round solitaire diamond stud earrings

• Piper Perabo in a platinum and diamond cuff and platinum and diamond stud earrings

• Glee's Naya Rivera in a platinum ring with an oval cabochon moonstone, and platinum and round solitaire diamond stud earrings

Wearing Trésor Collection

• Rainey Qualley

Wearing Van Cleef & Arpels

• Zooey Deschanel, best actress nominee for the sitcom New Girl, in diamond and 18k white gold Fleurette stud earrings and a ring with diamonds, a pearl, and platinum, circa 1970

• Alice Eve in 18k yellow gold and diamond earrings, an 18k yellow gold Jackie O cuff, and an 18k yellow and white gold ring with diamonds circa 1974

• Jaime King in Palmyre three-row diamond necklace in 18k yellow gold, an 18k yellow gold bangle circa 1970, and an 18k yellow gold Snowflake diamond ring

Van Cleef & Arpels diamond ring worn by Amy Poehler at 2012 Golden Globes

• Amy Poehler, best actress nominee for Parks and Recreation, in diamond and 18k white gold Volute earrings and a diamond and 18k white gold Volute ring

Van Cleef & Arpels diamond earrings worn by Madeline Stowe at 2012 Golden Globes

• Revenge nominee Madeleine Stowe in diamond and 18k white gold Petillante earrings and a sapphire and diamond ring

Wearing Harry Winston

• Jessica Chastain, supporting-actress nominee for The Help, in platinum cluster earrings with pearls and diamonds, a platinum and diamond feather ring, and a vintage platinum and diamond bracelet

• Natalie Portman in platinum and diamond drop earrings, three platinum and diamond bracelets, and a platinum and pear-shaped diamond cluster ring

• Modern Family nominee Sofia Vergara in platinum and diamond earrings, two platinum and diamond bracelets, and a platinum and diamond ring

BHP Billiton: Ekati Production -29% in Q2

(IDEX Online News) – BHP Billiton's Ekati diamond mine produced 481,000 carats in the past quarter, a 29 percent year-over-year decline. The decline in production is a result of a slowdown in extraction in the December quarter.

Production at Ekati is expected to remain "constrained" in the medium term BHP Billiton reported in a quarterly operations review, as the operations extract lower grade ore.

In the first six months of the fiscal year, Ekati produced 938,000 carats, a 32 percent decline from the 1.4 million carats mined in the first half of the prior year.

According to the report, the company processed 2.27 million tones of ore in the first half of the year, yielding 0.41 carats per tonne, this compared to 0.59 cpt in the prior year.

The quarterly production result is an improvement compared to the September-ending quarter, when the company mined 457,000 carats.

During the quarter, BHP Billiton announced a review of its diamonds business, including the Group’s interests in the Ekati diamond mine. The company said the process is ongoing and could continue through the first half of the 2012 calendar year.

The continued slowdown at Ekati, source of about 10 percent of the global rough diamond supply by value, means that rough will be less accessible in the near-term causing shortages in the market.

Diamonds Shine on Golden Globe’s Red Carpet
Jan 16, 2012 6:15 AM   By Deena Taylor

RAPAPORT... Golden Globe nominees and attendees once again chose diamond jewelry on the red carpet as the entertainment industry met at the 69th annual Golden Globe awards on Sunday in Los Angeles.

Diamond stud earrings seemed to be popular this year. Best actress winner Michelle Williams wore Forevermark diamond earrings together with a Forevermark diamond garland headband and a diamond snake ring by Fred Leighton while Angelina Jolie wore a 25 total carat weight diamond and platinum stud earrings and a diamond ring by Lorraine Schwartz. Jessica Biel wore 6.12-carat round diamond stud earrings by Tiffany & Co.

The best actress in comedy or musical nominee, Jodie Foster, chose 8 carat diamond and platinum earrings, a platinum bracelet with 84 diamonds weighing 42.61 carats and a diamond ring all by Bulgari with Clare Danes showing off princess cut diamond earrings by Bulgari.

Stacey Keibler showed off 9 carat diamond cluster earrings by Chopard while Madonna wore five diamond bracelets and a platinum and diamond cocktail ring by Neil Lane. Natalie Portman displayed diamond drop earrings, 3 diamond bracelets and a pear shaped diamond cluster ring by Harry Winston and Jessica Alba wore 37.14 carat diamond and platinum earrings by Bulgari.

Vintage diamond jewelry also made an appearance on the red carpet. Reese Witherspoon wore a pair of 1900 diamond bracelets by Fred Leighton, while Zooey Deschanel wore a platinum estate ring from 1970 featuring pearl and diamonds by Van Cleef & Arpels.

Diamonds to Outpace Gold on Asian Spending
By Soraya Permatasari and Rajesh Kumar Singh

Diamond prices are poised to rise for the next four years, outpacing gold, as increased spending on luxury goods in China, India and the Middle East outpaces supplies of the precious stone, analysts said.

Average prices for rough, or uncut, diamonds will probably climb 9 percent to $145 a carat next year, 1.4 percent in 2013 and 4.8 percent in 2014, according to Edward Sterck, an analyst at BMO Capital Markets. They may gain 2.6 percent in 2015 and 3.2 percent in 2016, he said. Gold will drop for three years starting 2013, following a 19 percent gain in 2012, according to the median of seven analyst estimates compiled by Bloomberg.

Demand for diamonds may grow at double the pace of supply through 2020 because of an expanding middle class in China and India, Bain & Co. said this month in a report that didn’t give price forecasts. The two countries, and the Middle East, will account for 40 percent of global diamond consumption by 2015, up from about 8 percent in 2005, according to Anglo American Plc (AAL), which controls De Beers, the world’s largest diamond miner.

“We expect emerging nations, first and foremost India and China, to drive demand for diamonds in the upcoming years, while consumption among developed nations is likely to moderate,” said Vladimir Sergievskiy, an analyst at Moscow-based Finam Investment. “On the supply side, the commissioning of new mines should be largely offset by depletion of mature ones.”
Supply Shortage

Global demand for diamonds will probably outstrip supply by 7 million carats in 2016, compared with a shortage of 1 million carats this year, Sergievskiy said. Prices may climb 9.7 percent next year, 2.7 percent in 2013, 3.3 percent in 2014, 3.2 percent in 2015 and 3.1 percent in 2016, he said.

Rough diamonds have advanced 24 percent this year, according to an index compiled by PolishedPrices.com, helping OAO Alrosa, the largest diamond miner by output, and Anglo American post profit gains.

The price of rough diamonds may fall an average 5.1 percent in 2012 and remain little changed in 2013, said Richard Platt, managing director of U.K.-based WWW Diamond Forecasts Ltd., which provides independent valuations. The gem should gain 2.9 percent in 2014 and 2.2 percent in 2015, he said.

Polished diamonds will perform better, reflecting growing Asian demand for diamond jewelry and “flattish supply,” said Platt, who expects prices to increase 4.7 percent in 2012, 9.3 percent in 2013, 6.6 percent in 2014 and 4.4 percent in 2015.
Gold Prices

On the gold market, spot prices have gained 12 percent this year as investors seek a haven from financial-market turmoil stemming from Europe’s debt crisis. Prices fell 0.2 percent to $1,586.93 an ounce by 12:49 p.m. in London today, while February futures declined for a fifth session, losing 0.5 percent to $1,587.70 on the Comex in New York. That streak, the longest for a most-active contract since the five days through Oct. 28, 2009, compares with an 11th year of gains for spot prices.

“The current gold price doesn’t reflect the underlying supply and demand fundamentals,” Rob Henderson, chief economist at National Australia Bank Ltd., said by phone from Sydney. “It much more reflects an artificial demand for gold as a hedge and as a store of value against inflation. That means the market is prone to a pretty substantial correction sometime in the future.”
Spending Power

That contrasts with the diamond industry, where prices “have not been inflated by artificial demand to the same degree,” Henderson said. “As countries like China and India keep growing and the size of the middle-class population rises, more people will be able to afford diamonds.”

Global demand for the gems is estimated to grow an average 6.4 percent a year to almost 247 million carats by 2020, while output is likely to rise an annual 2.8 percent to 175 million carats, the Bain report said. Output reached 133 million carats last year. Demand for diamond jewelry will climb to more than $100 billion by 2015 from $73.6 billion in 2010, Platt said.

While consumption of polished diamonds is expected to grow in the “low single digits” in the U.S. for the next decade, it may increase by as much as 15 percent in China and India, said Laxmi Deepak, an analyst at Mape Securities Pvt. in Mumbai.

China overtook Japan to become the biggest buyer behind the U.S., where demand rose 7 percent last year, compared with 25 percent in the communist nation, according to De Beers.
‘Buoyant’ Demand

“You can see in the Asian market, just walking around Hong Kong, demand for luxury goods is clearly very buoyant,” Rob Edwards, chief metals analyst at Renaissance Capital Ltd., said in an interview in Hong Kong.

Prices of top-quality diamonds climbed 23 percent this year, the biggest advance since at least 2006, according to the Rapaport Diamond Trade Index. The index calculates the average price for the top 25 best-quality 1-carat diamonds. It rose 14 percent last year and fell 0.5 percent in 2009.

The industry’s positive outlook may attract buyers to BHP Billiton Ltd. (BHP)’s Ekati mine in Canada, which the world’s largest mining company said may be offered for sale. The Melbourne-based company agreed to sell its 51 percent ownership in the Chidliak diamond project in Nunavut, Canada, to Peregrine Diamonds Ltd. (PGD), the companies said Dec. 20.

“There are lots of companies that would love to have BHP’s diamond assets,” RenCap’s Edwards said. “Some mid-cap, junior would probably pick that up.”
http://www.bloomberg.com/news/2011-12-27/diamonds-set-to-outpace-gold-as-luxury-spending-in-asia-rises-commodities.html

China’s Gold Imports From Hong Kong Climb to Record on Investment Demand

China’s gold imports from Hong Kong surged to a record as consumers bought the metal before the Lunar New Year this month and investors sought to hedge against financial turmoil. Bullion rallied to a four-week high.

Mainland China bought 102,779 kilograms from Hong Kong in November, up from 86,299 kilograms in October, according to the Census and Statistics Department of the Hong Kong government. China doesn’t publish gold trade data.

Demand for gold is climbing in China as investors seek to protect their wealth against slumping property prices and equity markets amid an inflation rate above 4 percent. The nation overtook India in the third quarter as the largest gold jewelry market, according to the World Gold Council. The country is also the biggest producer. Bullion rose as much as 0.9 percent to $1,647.45 an ounce today, the highest since Dec. 13.

“China’s appetite for gold is very strong and growing,” said Tao Jinfeng, chief investment consultant at Haitong Futures Co., China’s largest brokerage by registered capital. “The few months before the Lunar New Year is typically the peak demand period for Chinese people.” The weeklong holiday begins Jan. 23.

Imports were profitable as prices in Hong Kong mostly traded at a discount to those in China in November. Gold for immediate delivery of 99.99 percent purity on the Shanghai Gold Exchange averaged 356.05 yuan a gram ($1,753 an ounce) in November, compared with an average of 434.68 Hong Kong dollars (353 yuan) at the Chinese Gold & Silver Exchange Society.

“There is always the possibility that some purchases were made by the central bank,” said Tao, rated the fourth-best China gold analyst in a Futures Daily and Securities Times poll.

Gold Reserves

The People’s Bank of China last made known its gold reserves more than two years ago, announcing that it held 33.89 million ounces, or 1,054 tons, as of June 30, 2009. Officials at the central bank weren’t immediately available to comment.

China’s holdings are the world’s fifth-largest by country, according to World Gold Council data. Central banks and government institutions bought 142 tons in 2010, International Monetary Fund data show.

As incomes rise, Chinese investors are looking for alternative investments as the Shanghai Composite Index tumbled 33 percent since 2009, making it the worst performer among the world’s 15 biggest markets, while home prices fell for a fourth month in December after curbs that included higher down-payment and mortgage requirements. Per-capita disposable income for households in towns and cities rose 14 percent to 16,301 yuan in the first three quarters of 2011.

Gold climbed 10 percent last year, rallying for an 11th year, as central banks joined investors in buying bullion to diversify assets. South Korea, Thailand, Turkey and Russia were among those who added gold to reserves in 2011.

Bullion for immediate-delivery in London, which reached a record $1,921.15 an ounce on Sept. 6, traded at $1,645.25 an ounce by 5:32 p.m. Singapore time today.

http://www.bloomberg.com/news/2012-01-11/china-s-gold-imports-from-hong-kong-climb-to-record-on-investment-demand.html

Buckingham Palace to Host Diamond Exhibition
Jan 3, 2012 5:49 AM   By Deena Taylor
RAPAPORT... Buckingham Palace will host a diamond exhibition in honor of Queen Elizabeth's Diamond Jubilee this year.

The exhibition, called ''Diamonds: A Jubilee Celebration,'' will show the various ways that diamonds have been used and worn by British monarchs over the past two centuries. The exhibition also includes an unprecedented number of the Queen's personal jewels that have been inherited or acquired during her 60-year reign.

Among the pieces included in the exhibition is the coronation necklace and earrings worn by Queen Victoria, the only other monarch to celebrate a diamond jubilee. The necklace consists of 25 graduated cushion-shaped brilliant-cut diamonds and a central 22.48-carat drop-shaped pendant. The necklace was worn by Queen Alexandra, Queen Mary, Queen Elizabeth and Queen Elizabeth II at their coronation ceremonies.

Another piece on display is the diamond tiara frequently worn by the Queen, known as ''The Girls of Great Britain'' Tiara. The tiara was originally a wedding present to Queen Mary on behalf of the ''Girls of Great Britain and Ireland'' in 1893.

Other pieces in the exhibition include Queen Victoria’s dramatic Fringe Brooch, designed in 1859. The brooch consists of a large emerald-cut brilliant diamond surrounded by 12 large brilliant diamonds, with nine suspended diamond chains.

Also on display is the miniature crown worn by Queen Victoria for her official Diamond Jubilee portrait 1897. The crown was made by R & S Garrard in 1870 and contains 1,187 diamonds.

Among the more modern pieces in the exhibition is the South Africa Necklace, presented to the then Queen on her 21st birthday in 1947 and the Williamson Brooch which features a rare pink diamond set by Cartier in a jonquil-shaped brooch with 200 small diamonds.

The exhibition also includes a number of historic objects that show the skill with which diamonds have been used in different cultures and traditions, such as the 18th century bloodstone box made for King Frederick the Great of Prussia. The box incorporates nearly 3,000 diamonds arranged pictorially to represent flowers, insects and musical instruments.

The exhibition will take place during August and September at Buckingham Palace, Windsor Castle and the Palace of Holyroodhouse.

Enormous yellow diamond sets record with $10.9M sale

GENEVA (AP) – The Sun-Drop Diamond of South Africa, a giant pear-shaped yellow gem weighing 110.3 carats, has sold for more than $10.9 million at auction Tuesday, beating previous records for a jewel of its type.
    
Including commission, the unidentified telephone bidder paid almost $12.4 million for the gem, putting it within the $11 million to $15 million range Sotheby's had estimated before the sale.

"It's a record for a yellow diamond at auction," said David Bennett, the head of Sotheby's jewelry division.

The diamond was sold by New York-based company Cora International, which discovered the jewel in South Africa last year.

Gemologists had rated it as fancy vivid yellow — the highest possible color grading. Yellow diamonds are created by nitrogen impurities being trapped within carbon molecules and hardening over the course of millions of years.

Other lots at the $70 million sale in Geneva's Beau-Rivage hotel included a colorless cushion-shaped diamond weighing 38.88 carats that sold for almost $7 million, including commission.

A 12.01-carat emerald from Colombia's Muzo mine sold for $1.4 million, while a blue diamond ring was snapped up for $4.3 million.

However, several precious jewels — including an elaborate gold and diamond 'peace dove' brooch, a blue diamond ring estimated at over $7.5 million, and a suite of imperial jewels — failed to find a buyer.

The set comprising a necklace, brooch and pair of earrings was given by the Ottoman Empire's Sultan Abdul Hamid II to the wife of the Khedive of Egypt in the late 19th century.

Sotheby's said some of the gems may have been part of a peace offering given by Russian Czar Peter the Great's wife Catherine to Ottoman Sultan Ahmed II in 1711. A bid of $9.3 million wasn't enough.

http://www.usatoday.com/news/world/story/2011-11-15/sundrop-diamond-south-africa-auction/51221622/1

Gold will lead commodities recovery

OTTAWA — Gold prices will soar to $2,100 U.S. an ounce in 2012, leading a general rebound in commodity prices that will emerge once Europe gets its act together, TD Economics said in a report Thursday. "Assuming the Europe story falls off the front pages of the paper next year, prospects for commodity prices are generally quite positive," economist Dina Cover said in TD's Commodity Price report. While worries about another global recession and a financial crisis in Europe have led to a widespread pullback in commodity prices in recent months, a recovery in 2012 will be supported by low interest rates, strong investor demand, global economic growth that will average just above three per cent and tighter physical supply, Cover said. TD's report casts the outlook in a more optimistic light than a report issued Wednesday by BMO Capital Markets. "Prices should firm once the clouds engulfing the macro environment dissipate," BMO's outlook says, while cautioning, "with demand prospects hit by weaker global economic growth and heightened risk aversion, prices for a number of commodities, especially those closely linked to industrial production, will likely struggle to make any serious headway over the next year." TD's Cover expects precious metals to be a top performer in 2012, saying history shows easy monetary policy and economic financial stress — likely to continue into 2012 — are supportive for gold prices. Bullion should climb from current levels of about $1,750 U.S. an ounce to average $1,975 in 2012, rising to $2,100 U.S. in the fourth quarter, the outlook says. She also expects base metals to fare well, supported by rising demand and modest production growth. Copper will be the only metal in a supply deficit position in 2012, lifting prices to an average of $3.95 U.S. a pound from current levels of $3.38 U.S. a pound. Oil, meanwhile, will retreat from near $100 U.S. a barrel due to an economic environment that doesn't support current levels and unrest in the Middle East. Crude will slip back below $90 U.S. heading into 2012 and climb back to $95 U.S. by mid-year. Cover is also positive on agricultural prices, but expects excess supply to keep natural gas prices at depressed levels below $5.00 U.S. per thousand cubic feet and lumber prices to remain under $300 per thousand board feet as the U.S. housing market continues to struggle. Overall, Cover points out, commodity prices in 2012 will be lower — on average in 2012 — but that masks underlying strength that will see prices trough in the current quarter or the first quarter of 2012, then resume their ascent. Postmedia News http://www.calgaryherald.com/business/Gold+will+lead+commodities+recovery+says/5727104/story.html?cid=megadrop_story

Record prices spawn new wave of China gold bugs

SHANGHAI – Record gold prices, rather than denting China’s enthusiasm for bullion, have emboldened investors to plough more money into gold bars and riskier bullion-based derivatives.

August is traditionally a slow month for Chinese jewelers, but many shops in Shanghai visited by Reuters reported surprisingly solid gold sales over the last few weeks, with shoppers unfazed by gold’s stellar price gains over the past few months.

“The surge in prices has sparked another gold-buying craze. The 50 gram and 100 gram gold bars were selling like hot cakes,” said Ms. Liu, a store manager at Shanghai’s major jeweler Lao Feng Xiang Co Ltd who said gold sales this month were up at least 30% from a year ago.

The attitude of Chinese consumers — expected to soon overtake Indians as the world’s top buyers of gold — will be an important influence on longer-term trends.

Demand from the world’s most populous country, which is adding hundreds of thousands of people to the ranks of affluent and middle-income consumers every year, implies that the long-term price floor for gold is set for a steady increase.

BUYING ON DIPS

That demand may also help smooth out temporary drops in prices.

Spot gold has come off its record highs of over US$1,900 an ounce hit last week, falling back to around US$1,820 an ounce, but such dips appear only to embolden consumers.

“Many Chinese investors and consumers see price corrections as buying opportunities. The view that gold is an enduring store of value is firmly rooted in Chinese cultural traditions,” said Hou Xingqiang, a gold analyst at Jinrui Futures.

“Gold’s rally over the past two years and the debt worries in the West have only strengthened Chinese investors’ belief that they need to own the metal as an investment asset.”

There is no shortage of bulls on Wall Street forecasting even higher gold prices, with J.P Morgan predicting at least US$2,500 an ounce by the end of the year.

Amid the gold frenzy, China’s banks and brokerages have been quick to offer paper gold investments to cash in on the trend.

Trade sources at the Bank of China and Industrial and Commercial Bank of China say demand for their gold-linked savings products has soared, while a growing army of retail investors are also eager to dive into the paper gold market.

Expectations that gold will extend its bull run have also encouraged investors into the country’s nascent gold derivatives markets, such as the forward and futures contracts on the Shanghai Gold Exchange (SGE) and Shanghai Futures Exchange.

Volumes for SGE’s most popular gold forward contract hit a record high of 350,670 grams in August — double the volume in July.

“More investors are moving into paper gold because of the lower capital costs. The prospect of making big and quick bucks by betting on gold’s ascent is beginning to look like a fairly easy way to make money,” said He Wei, a gold analyst at Nanhua Futures.

RISKY BETS

That could create other risks down the road, however, which authorities are trying to fend off.

Investors buying gold swaps and forwards generally do so on margin, putting up only a part of the money themselves — potentially setting themselves up for much bigger losses should the market turn sour.

Alarmed by the surge and worried that the giddying climb in prices was encouraging excessive risk-taking, the SGE raised margin requirements twice this month to 12%.

The explosive interest in gold investments has also led investors to move to less mainstream derivative products offered by over-the-counter exchanges that have sprung up in recent years, bringing about new risks given the lower margin requirements.

The Tianjin Precious Metals Exchange, established in 2010, has seen a leap in demand for its swap contracts.

“The capital outlay for swap contracts is even lower and it’s becoming a popular investment instrument,” said Han Qingsheng, a trading manager at Gold Day, a brokerage for the Tianjin Precious Metals Exchange.

While the government is taking a somewhat cautious approach, people’s thirst for new investment products will no doubt accelerate China’s opening up of the gold sector — a move long awaited by foreign banks.

In a sign that more changes are afoot, the China Banking Regulatory Commission has already granted membership to two foreign banks to trade gold futures on the Shanghai Futures Exchange.

Industry watchers said changes on the horizon include night trading for the SHFE’s gold contracts and expanding the list of domestic banks allowed to import gold — a big step toward a full liberalization of the sector.

“As physical demand increases, the government will need to increase the supply avenues and some foreign banks have an advantage because of links to overseas mints or foreign trades,” said a senior executive at foreign bank.

“This would be the next step we’re all waiting for.”
http://business.financialpost.com/2011/08/29/record-prices-spawn-new-wave-of-china-gold-bugs/

Gold hits another record, analysts eye $2,000

Spot gold (GC-FT1,876.9024.701.33%) surged more than 1 per cent to a third consecutive all-time high on Monday, as investors fled to the safety of bullion amid fears of another U.S. recession and the euro zone’s debt crisis.

Spot gold struck a record at $1,888.90 (U.S.) an ounce, after staging its biggest weekly gain in 2-1/2 years last week. It traded at $1,888.76 by 0640 GMT.
U.S. gold jumped more than 2 percent to an unprecedented $1,895.3.

A murky economic outlook given a persistent flow of weak macro data out of the United States and fears about the euro zone’s fiscal health have propelled gold up by more than a quarter since July.

“We are not expecting anything supporting the U.S. economy or the macro data for at least a couple of months,” said Tom Price, Global Commodity Analyst at UBS.

“Europe we regard as even weaker. We are thinking $1,900-$2,000 over a very short period of time is a likely target.”

Investors are waiting for signs of further stimulus from the U.S. Federal Reserve when bankers gather in Jackson Hole, Wyoming, late this week, one year after Chairman Ben Bernanke launched a second round of quantitative easing to revive the economy.

Additional bond purchase by the Fed could raise the inflation outlook and further boost gold, but many view the chances of a third round of quantitative easing as limited and expect the Fed to take gradual measures to boost the economy.

Technical analysis suggested that gold could pierce through $1,900 over the day, said Reuters market analyst Wang Tao.

Holdings in the SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose to 1,290.762 tonnes by Aug. 21, the highest in a week and half.

But speculators scaled back their bullish bets in U.S. gold futures and options for a second week last week, as bullion’s rapid rally prompted some investors to liquidate positions, data showed.

“Key resistance in gold will be found at $1,946. However, the market may need an extraordinary event to take it above that level,” said MF Global in a research note.

Other precious metals tracked gold’s strength.

Spot silver rose as much as 2.5 percent to a three-month high of $43.93, extending a 10-percent rise last week -- its best week since December.

Spot platinum hit a three-year high of $1,890.25, on course for its 10th consecutive session of rise.


http://www.theglobeandmail.com/globe-investor/gold-hits-another-record-analysts-eye-2000/article2137064/

Gold Tops $1,880 in Long Week’s Rally

Gold rose to a record above $1,880 an ounce in New York, rallying for the seventh straight week, as concern that the global economy is slowing drove equities lower.

The metal had its longest run of weekly gains since April 2007 as worse-than-expected U.S. economic data and Europe’s debt crisis boost speculation that growth will falter. The MSCI All- Country World Index of equities fell as much as 1.7 percent, heading for the fourth straight weekly drop, after Morgan Stanley cut forecasts for global growth.

“Lack of confidence in the global economy is pushing people towards gold,” Tom Pawlicki, a Chicago-based analyst at MF Global Holdings Ltd., said in a telephone interview. “Gold will continue to advance unless leaders are able to resolve the European or U.S. debt crisis.”

Gold for December delivery gained $30.20, or 1.7 percent, to settle at $1,852.20 on the Comex at 1:42 p.m. in New York, after touching $1,881.40, the highest ever. Prices have gained 6.3 percent this week, the most since February 2009, and 14 percent this month.

In London, the metal is in the 11th year of a bull market for spot prices, the longest winning streak since at least 1920.
Financial Problems

“Gold is the currency of the world at the moment, with the world convinced that the monetary and fiscal authorities are likely to do nothing right and everything wrong when it comes to resolving the world’s current fiscal problems,” Dennis Gartman, the economist who correctly forecast 2008’s commodities slump, said in his daily Gartman Letter today.

Investors want to protect their wealth from declining equities, depreciating currencies and accelerating consumer prices. Gold may climb next week amid concern about debt crises and slowing growth, a Bloomberg News survey showed.

Sweden’s financial regulator said lenders must do more to prepare for a worsening debt crisis in the region as the Wall Street Journal reported American regulators are intensifying scrutiny of the U.S. arms of Europe’s largest banks.

“Medium term, the disorder of the global monetary system and long-term inflation threat will amplify gold’s nature as a currency and an inflation hedge,” said Cai Hongyu, an analyst at China International Capital Corp., the country’s biggest investment bank.

Silver futures for December delivery advanced $1.751, or 4.3 percent, to $42.467 an ounce on the Comex. Earlier, prices surged to $42.67, highest since May 3.

On the New York Mercantile Exchange, palladium futures for September delivery fell $8.20, or 1.1 percent, to $748.80 an ounce. The price gained 0.1 percent this week.

Platinum futures for October delivery advanced $27.20, or 1.5 percent, to $1,874.90 an ounce. That marked the 10th straight gain, the longest rally since October 2007.

http://www.bloomberg.com/news/2011-08-19/gold-climbs-to-record-set-for-best-weekly-run-since-2007-on-haven-demand.html

Rush of buying in India boosts demand for gold
Gold always falls in summer. That is the conventional wisdom among gold traders, conditioned over decades in which the period from June to August has been characterized by slack demand for bullion.

But this summer has been rather different. On Monday, gold surpassed (GC-FT1,606.0015.901.00%) $1,600 (U.S.) a troy ounce for the first time. Even when it did suffer a brief correction at the end of June, it dropped only as far as $1,478, a level that only three months earlier would have been a record.It is a swirl of macroeconomic worries - from sovereign default in the eurozone and the U.S. to the possibility of a third round of “quantitative easing” by the Federal Reserve - that have helped gold through the psychological barrier of $1,600.

Yet one driver that has underpinned the market has gone largely unnoticed: an unexpected rush of buying from India.

With India battling high inflation, gold has found favour there as a means of wealth preservation, just as in China and other parts of Asia. According to the most recent data from the World Gold Council, India and China accounted for 58 per cent of global physical gold demand in the first quarter of this year.

In recent weeks, though, Asian buyers and Western investors have been taking turns to drive prices higher. Investments in exchange traded funds backed by physical bullion rose to a record 2,156 tonnes on Friday, according to Barclays Capital, while investors boosted their bets on higher gold prices in the U.S. futures market by the most since September, 2009.


Monday’s jump in the gold price came as part of a wider risk-aversion trade that saw U.S. and European bank shares sold off, the euro slide (EUR/CHF-I1.150.00080.07%) to a record low against the Swiss franc and yields on Spanish and Italian debt resume their upward march: a “flight to safety” in other words.

But the scale of the Indian buying has surprised traders because its gold market is usually quiet in June. The country has traditionally bought gold in seasonal patterns, dictated by festivals such as Akshaya Tritiya in May and Diwali in September, as well as the wedding season, which runs from September to December.

The shift in buying patterns from India, the world’s top consumer of bullion, is changing the seasonality of the global gold market. While gold’s performance in the summer months has tended to be sluggish over the past three decades, the yellow metal this year has risen 4.5 per cent since the start of June.

Abha Kachaliya, a Mumbai-born chartered accountant in her mid-twenties, is typical of the trend. As a child, she remembers her mother would dress her up to go out to buy gold at Zaveri Bazaar, the city’s precious metals hub, for Diwali, the festival of lights.

“It was a special and exciting moment,” she says. “Every year for Diwali the whole family would go out together to buy as much gold as we could afford.”

Now, though, Ms. Kachaliya takes a more opportunistic approach to buying gold. Although Diwali continues to be a special day for her family, she does not feel that is the only day she can buy gold any longer. “Whenever I have a chance I invest in gold, be it at the bazaar or online, I’ll jump on any good deal.”

Buyers such as Ms. Kachaliya helped the Indian market buck the normal trend in June. Large bullion-dealing banks reported a surge in buying from the country, a factor traders say has been instrumental in keeping prices close to historical highs. Sales to India from UBS were more than double the level of a year earlier.

“Undoubtedly over time the market is becoming less seasonal,” says Tom Kendall, precious metals strategist at Credit Suisse.

There are several reasons for the shift. One is simply the growing wealth in India and across emerging economies that has lifted demand for gold. “What used to be wedding season now lasts for nine months of the year,” Mr. Kendall says. “There were not enough auspicious days of the year, so they found some more.”

But Indians are also beginning to approach gold more like Western investors, traders and analysts say, putting a proportion of their wealth into gold and buying opportunistically on dips.

Atul Shah, head of commodities at the Mumbai-based brokering firm Emkay, says that the days when people acquired gold only during festivals and weddings are over. “Indian consumers are buying gold all year round,” he says.

Vishal Kapoor, head of wealth management at Standard Chartered in Mumbai, says that Indian consumption habits have changed over the past decade. “In recent times we have seen a shift in buying trends,” says Mr. Kapoor. “What is different of late is the availability and the acceptance of gold as a financial asset and not just as something you keep in a locker at home.”
http://www.theglobeandmail.com/report-on-business/international-news/rush-of-buying-in-india-boosts-demand-for-gold/article2101078/

Gold Rallies to Record in Best Run Since 1980
Gold rose to a record $1,607.70 an ounce, heading for the longest rally in 31 years, as debt concerns in Europe and the U.S. boosted demand for the metal as a haven.

President Barack Obama is pressing congressional leaders for a multitrillion-dollar agreement in talks on cutting the deficit. A default would cause more panic than the collapse of Lehman Brothers Holdings Inc. in 2008, Larry Summers, a former Treasury Secretary, told CNN in an interview broadcast yesterday. The euro fell as European leaders plan to meet again on the debt crisis.

“There’s just a lack of confidence in government and currency,” Frank Lesh, a trader at FuturePath Trading LLC in Chicago, said in a telephone interview. “There’s a flight-to- safety into gold. When Europe fixes their house and the U.S. fixes our house, maybe then there’ll be in a correction in gold.”

Gold futures for August delivery rose $9.60, or 0.6 percent, to $1,599.70 at 10:35 a.m. on the Comex in New York. The metal climbed for the 10th straight session, the longest rally since January 1980, when the price rose to $873, a record at the time.

UBS AG said in a report that its Zurich sales desk on July 15 had the biggest gold-coin demand in a year. The metal denominated in euros and pounds jumped to records after European Central Bank President Jean-Claude Trichet reiterated his opposition to any restructuring of Greek debt.
‘Fearful’ on Euro

“Europeans primarily are fearful about the future of their currency and are exiting positions there for Swiss francs and gold,” Dennis Gartman, an economist, said in his Suffolk, Virginia-based Gartman Letter. “Were we a German lawyer, or doctor, or small business owners, we’d be buying gold.”

Gold has doubled since early December 2008 as the Federal Reserve kept interest rates at a record low and governments spent trillions of dollars to prop up the economy after the most-severe global recession since World War II.

The Treasury Department has warned the U.S. debt ceiling must be lifted by Aug. 2 to avoid default. Standard & Poor’s and Moody’s Investors Service may downgrade the government’s credit rating if Congress doesn’t act.
http://www.bloomberg.com/news/2011-07-18/gold-rallies-to-record-in-best-run-since-1980.html

Blood and diamonds on Mumbai road

Diamond merchants and traders in Opera House fear Wednesday’s blast could have led to diamonds being lost. With a few traders dead and many injured in the attack, there is also the possibility of jokham (as diamonds are referred to in trader parlance) they may have been carrying lying on the street. Traders said the timing of the blast (6.50pm) made such prospects all the more likely. Diamond trader Prateek Patel said, “After 5.30pm, a lot of traders come back to their offices with unsold diamonds. Most of these traders carry the diamonds in their pockets. A lot of traders were injured, while many others started fleeing from the area. We fear many diamonds may have fallen on the ground.” Insiders said traders generally carried diamonds, irrespective of their size, in packets. Patel said, “The worth of these packets can range from a few lakhs to a few crores. These packets are first taken to prospective buyers throughout the day. Once the day ends, traders bring these packets back to their offices. That’s the time this blast occurred.” Another diamond trader Pinal Patel said the damage would be known once the market reopened. “Since the incident, all these offices in and around Panchratna have remained shut. Right now, it is very difficult to estimate the exact quantum of loss.” Local trader Kunal Mehta said, “As soon as the incident happened, all of us fled from the spot without keeping our diamonds in vaults. Most of our diamonds are still lying scattered around the office.” Diamond merchant Hardik Hundiya said many traders had discreetly approached the police for help in recovering the diamonds scattered on the road. “Many traders, who feared they might have lost their diamonds have approached the cops. The cops have assured us all the diamonds found on the spot will be returned to their rightful owners.”

http://www.hindustantimes.com/Traders-at-Opera-House-fear-diamonds-may-be-lying-on-road/Article1-721297.aspx

Mumbai blasts: Diamonds went flying in the air
MUMBAI: Amidst the deafening burst of shrapnel that went up when a bomb detonated at Opera House on Wednesday evening, there was something that rained down: diamonds packed in tiny butter paper packets and hidden in secret vest pockets. It was that time of the day when most traders had wrapped up work and were sipping hot tea and chewing mawa before heading to the safety vaults; others had smoothly lined up their gems on red velvet and were taking the last count.

The huge explosion that ripped through the narrow Khau Galli at Opera House has left the diamond community unnerved and singed in more ways than one. Unbelievable as it may seem to the uninitiated, many merchants carry their diamonds on their person—and the blast led to their losing stones worth crores of rupees. "Most of us carry diamonds in our pockets," says Bharat V Shah, secretary of the Mumbai Diamond Merchants' Association. "This is how we trade, sometimes under the peepal tree, sometimes at the tea stall. Many people would have lost their diamonds."
http://articles.timesofindia.indiatimes.com/2011-07-15/mumbai/29777173_1_diamonds-worth-rs-diamond-community-mumbai-blasts

Bank Predicts Gold Price Will Triple
The gold price will keep rising and possibly approach $5,000 an ounce in the next decade, according to a new report, “In Gold We Trust,” published June 14 by Standard Chartered Bank.

“Our research takes a bullish view on gold,” the report said. “The gold market will be under deficit for the next five years.”

As with similar outlooks for the diamond industry, the Bank argued that the growing desire for gold, particularly “insatiable” demand from China and India, will likely outstrip supply in the coming years. It noted that the mining industry “has done little” to bring on new gold mines and that the metal’s production is likely to grow only 3 percent over the next few years.

In addition the central banks have gone from being net sellers to net buyers of gold.

“Gold growth will be limited, which will continue to fuel the gold cycle,” the report concluded. “We believe demand will be driven by continued growth in per capita GDP in China and India, a weak U.S. dollar and high inflation, which have fuelled doubt in the creditability of paper currency."
http://www.jckonline.com/2011/06/15/bank-predicts-gold-price-will-triple

Platinum Price May Hit $2,000
The price of platinum could rise to as much as $2,000 per ounce in the next six months, according to Johnson Matthey’s “Platinum 2011” report, released May 16.

The company further predicted the price of platinum will average $1,870 an ounce in the next six months, after averaging $1,762 during the six months that ended April 2011.

The company, which manufactures catalysts and chemicals used in the refining of precious metals, cited “positive supply-demand fundamentals and continuing global economic growth” for the continued price growth.

The price of palladium was also forecast to rise, with Johnson Matthey predicting its price will average $825 in the new six months, compared to an average of $762 in the six months that ended April 2011.

Other key figures from the report:

- Gross demand for platinum in 2010 increased by 16 percent to 7.88 million ounces.

- Purchases of platinum for jewelry in 2010 fell by 14 percent to 2.42 million ounces, following an extremely strong 2009, due in part to rising metal prices.   

- Worldwide demand for palladium in jewelry last year fell 20 percent.
http://www.jckonline.com/2011/05/17/platinum-price-may-hit-2000

Polished diamond prices continued to rise in June, according to Rapaport Research.

In a release, the company noted that "while some price resistance is apparent, the outlook for the second half of the year remains strong."

It added that rough prices are continuing to rise, estimating they have jumped 30 percent to 35 percent in the first half of the year.

"The first half of 2011 proved to be a positive period for the diamond industry, but dealers are concerned that the pace of growth might not be sustainable as rough prices may be overheating," the company said in a statement.

The RapNet Diamond Index for 1 ct. diamonds rose by 7.4 percent in June to 109.17. It also rose 13 percent for 0.50 ct. stones, and 8.2 percent for three caraters.

The overall RapNet Composite Index increased by 8.4 percent to 179.96 during the month.

http://www.jckonline.com/2011/07/06/rapaport-rough-polished-prices-still-rising

Geneva, March 26, 2011 – David Bennett, Sotheby’s Chairman of Jewellery for Europe and the Middle East, has announced that Sotheby’s will sell the most valuable emerald and diamond Tiara to have appeared at auction in over 30 years in its sale of Magnificent and Noble Jewels in Geneva on May 17, 2011.

Estimated to sell for $5-10 million (CHF 4.5-9 million), the extremely rare Tiara is composed of 11 exceptionally rare Colombian emerald pear-shaped drops which weigh over 500 carats in total and may well have originally adorned the neck of a Maharajah.

This tiara was commissioned circa 1900, possibly from the renowned jewellers Chaumet, by Guido Count von Henckel, First Prince von Donnersmarck, for his second wife Princess Katharina.

The jewellery collection of the Donnersmarcks was known to be on a par with, or even to have exceeded, those of many of the crowned heads of Europe.

http://www.jewelleryoutlook.com/index.php?option=com_content&view=article&id=628

As the world continues to mourn the passing of Elizabeth Taylor, there is one question that comes to mind: What’s going to happen to those fabulous jewels? According to sources, the actress’s brilliant baubles — estimated in the past at $150 million collectively — are expected to be auctioned by Christie’s sometime in the future. (A Christie’s spokeswoman declined to comment.) Part of what makes her collection so special is its quality, according to Luxury Jewels of Beverly Hills President/CEO Peter Sedghi, who worked with the star on her House of Taylor jewelry line. “She had the most amazing eye,” he tells PEOPLE. “To be honest, she knew more than I did [about jewelry]. When you would show her stones, she would tell you the origin, if it’s good quality, bad quality, where it came from.” And though Taylor loved it all — colored stones, pearls — she had a special place in her heart for diamonds, Sedghi says. “She had a collection like I’ve never seen before, and she knew exactly what every one was — what the diamonds were, the quality.

http://stylenews.peoplestylewatch.com/2011/03/28/elizabeth-taylor-jewelry