Category Archives: Industry News

Rough diamond prices to rise 5 to 10 percent in 2014

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In our constant effort to keep you informed of all Diamond News worldwide, this update from the Pakistan and Antwerp Diamond Centers:

Natural rough diamond prices may rise 5 to 10 percent in 2014 on recovering demand for jewellery in developed and emerging markets, the head of Belgium’s diamond lobby told Reuters in an interview. The global market came under pressure in 2013 as a weakening rupee and tight credit conditions suppressed demand from the world’s biggest diamond polishing marker, India.

Polished diamond prices increased in all categories in 2014 as trade volumes reached their highest level since early 2011, diamond market watcher Rapaport said. A positive polished market could put rough prices on a healthier footing in 2014, according to Stephane Fischler, president of the Antwerp World Diamond Centre (AWDC).

“We have already had an increase in rough prices in the first quarter. They could gain up to 5 percent more by the end of the year,” Fischler said in an interview in Moscow. He said there was a “healthy outlook” for rough diamond prices this year, forecasting an overall rise of between 5 and 10 percent. The AWDC is a private foundation lobbying in the interests of the national diamond industry based in Antwerp. According to AWDC, over 80 percent of all rough and 50 percent of all polished diamonds in the world pass through Antwerp.

The world’s largest diamond miner by carats – Russia’s Alrosa – in January said it was “moderately optimistic” about 2014 after seeing its average selling price for gem-quality diamonds fall by 9 percent last year. The average price of rough diamonds exported from Antwerp in February was up 18 percent from December 2013 but still 12 percent lower year on year, according to Reuters calculations based on AWDC data.

BETTING ON THE UNITED STATES Traditionally the largest retail diamond market, the US jewellery market is set to grow by 4 to 8 percent annually for 5 years from 2013 with stronger growth in 2013-2014, according to estimates from the diamond industry research team at consultancy Equity Communications. According to Rapaport, US jewellery store sales for the first two months of 2014 have risen by more than 5 percent.

China is the second largest diamond market and growth is also expected there as its wedding jewellery market is booming and disposable incomes of the expanding middle class are rising. Chow Tai Fook, the world’s largest jeweller by market capitalisation, posted a 14-percent jump in same-store sales of gem-set jewellery in the first quarter year on year.

DON’T DISCOUNT AFRICA Along with China and India growth, Fischler also has “very good hopes” of a resurgence in European demand and said Latin America is already emerging as a market with good demand potential. Africa, which has its own significant mineral reserves, could in the longer term become not only a major producer of rough diamonds but also a significant buyer of the polished product, he said.

“Don’t discount Africa 20-30 years from now. Of course, they’re starting from a very low base so 7-10 percent (annual growth) doesn’t mean much, but there is an emerging middle class in Africa and this market will develop.”

Every month Belgium imports 6-10 million carats of rough diamonds worth more than $1 billion and exports a comparable amount, being the main trading centre for raw material mined all over the world. Alrosa, which produces about 37 million carats of diamonds per year, currently sells about a half of its output to Belgium, a proportion Fischler expects to remain stable or to grow in 2014.

A unique, personal jeweler who works nationwide, Keith Saxe is GIA and FIT trained and has been a trusted high end diamond jewelry specialist for 26 years. He is the founder and president of NYC Wholesale Diamonds located at 47 West 47th Street Suite 3A in the New York City Diamond District. His website is www.NYCWholesaleDiamonds.com and he authors a blog www.NYCDiamondBlog.com. Keith has a full service store located across the street from his private office,and a San Diego factory showroom. He offers GIA Certified Ideal Cut Diamonds, and state of the art fine jewelry designs at low wholesale prices. Keith has been named the N.Y. Diamond District’s Favorite Jeweler by the N.Y. Post’s Savvy Shopper column, had his diamond education articles published, been recommended in the New York Times, CNN reporter Robyn Spizman’s ‘Perfect Present Guide’ and ‘The GIFTionary’, as well as having his Diamond Halo Engagement Ring design featured on ‘The Knot’ http://www.theknot.com/weddings/album/a-preppy-upstate-wedding-in-aurora-ny-144122

 

 

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Fancy Color Natural Diamonds Sizzling Hot!

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NYC Diamond Blog’s goal is to inform the consumer of all Diamond news, innovations, as well as what is hot and exciting! Here are some notes from the highest level trade publication concerning fancy color natural diamonds. Keep in mind NYC Wholesale Diamonds carries a magnificent collection of Natural Red, Blue, Canary Yellow, Pink, and Purple Diamonds.  Continue reading

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New jewelry introduced with hidden safety technology

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Fine Diamond Jewelry with these features might just be around the corner. The future is now. Wearable tech and elegant jewelry design might sound like two incongruous concepts, but a new accessories collection targeted at improving personal safety could change that. Continue reading

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Rhodium Plating Explained

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Many contemporary jewelry designs, especially those made of white gold are electroplated in rhodium to enhance their shine and durability. Here is an explanation of this process, and some tips on maintaining your gold and platinum jewelry.

Rhodium is a precious metal, a member of the platinum family. Rhodium plating is used, especially on jewelryto provide a surface that will resist scratches and tarnish, and give a white, reflective appearance. Rhodium plating is most often found on white gold.

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JEWELRY INDUSTRY INSIDER PUBLICATION FORECASTS YELLOW GOLD AS A TOP TREND FOR 2014

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A key jewelry industry trade publication forecasts anticipated design trends early every year. This list aims to serve as a guideline for store purchases, highlighting pieces and materials trending now, based on the clothing, color, red carpet, and real-life influences at work in the market. Yellow gold is a top trend on the list, and here’s the reasoning on why it’s relevant to jewelers now.

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Gold, Silver prices to fall in 2014

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The following was published this week in a jewelry industry trade publication. NYCWD President Keith J. Saxe will release his annual forecast for 2014 Diamond, Gold, Silver, and Platinum prices the first week of February.

New York–The per-ounce price of gold and silver both will decline more than 10 percent year-over-year in 2014 while labor issues and automotive demand are expected to push up the price of platinum slightly, analysts say.

Last week, Market Watch published an analysis of gold price forecasts for 2014 from six banks: Bank of America Merrill Lynch, Barclays, Deutsche Bank, HSBC, J.P. Morgan and UBS.

The banks’ predictions for 2014 work out to an average per-ounce price of $1,209 for gold in 2014, down 15 percent from about $1,400 an ounce in 2013.

A similar consensus of nearly 30 analysts compiled by the London Bullion Market Association pegs gold at an average of $1,219 an ounce in the coming year, a 13 percent drop.

London-based analyst Andrew Leyland, the manager of precious metals demand at Thomson Reuters GFMS, said the price estimate for the next 11 months is very similar to what the actual price of gold is right now, which was $1,242 an ounce as of press time, according to Kitco.com

“What the market is saying there is that the gold price is entering into a period of consolidation,” he said.

After dropping in 2013, gold prices are expected to stabilize this year because they are now being driven by physical demand instead of institutional investment, which tends to be a more volatile driver of price, he said.

Leyland said gold will hover around the $1,200 mark throughout 2014. He doesn’t see it rallying above $1,500 and, while it could dip below $1,000 an ounce briefly, it won’t stay there long, as jewelry demand will be enough to buoy it.

“Could the price dip below that ($1,200 an ounce)?” Leyland said. “We believe it can and it probably will but not for a sustained period of time.”

As reported in November, the per-ounce price of silver also will drop in 2014.

Leyland said Tuesday that Thomson Reuters GFMS predicts the price of silver will drop 20 percent in 2014 to $19 an ounce, driven by a decline in physical demand as more companies return to using gold.

The London Bullion Market Association’s forecast for silver in 2014 is $19.95 per ounce, down 19 percent from an average per-ounce price of $23.79 in 2013.

Leyland said when gold was $1,500 or $1,600 an ounce, many companies simply could not afford to use the metal and substituted silver.

Now there will be a return to gold, though he notes the jewelry industry won’t abandon silver entirely. Even at $1,200 an ounce, the price of gold is still considerably higher than it was prior to the recession.

While gold and silver prices are forecast to drop in 2014, platinum prices are expected to increase slightly, due to solid automotive demand worldwide and supply disruptions resulting from strikes in South Africa.

Thomson Reuters GFMS pegs the average annual price of platinum at $1,550 in 2014, a 4 percent year-over-year increase.

The consensus forecast from the London Bullion Market Association is slightly less bullish, at $1,490, up less than 1 percent from $1,487 last year.

Despite the slight increase in the platinum price, Leyland said the underlying tone for the jewelry industry in 2014–in gold, silver and platinum–is “relatively positive” due to improving economies around the globe.

 

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