- EGL International (EGLI) commonly use GIA’s terminology to describe diamonds as 4 or more color/clarity combination grades higher than GIA’s grading
- An overgraded diamond is a diamond graded using GIA terminology that when verified by the GIA is more than 1 color or 1 clarity lower than the original grade
- Overgrading reports have become a license to lie about quality where RapNet members are comfortable to sell EGLI diamonds at lower prices, thinking it’s ok to misrepresent quality as long as the price is low
- Ethical people and business practice should not deal with overgraded diamonds – it’s illegal
- RapNet lists GIA, AGS, HRD and IGI and other grading reports meeting their good laboratory descriptions.
- S13s are defined as an intermediate grade between SI2 and I1.
- Many believe the clarity and price spread between S12 and I1 is too large.
- The diamond trade commonly sorts diamonds into S12, S13 and I1.
- Inability of current GIA grading system to differentiate between eye-clean and not-eye-clean diamonds
- Christie’s garnered $150m at its Geneva auction.
- Top lot was a diamond necklace with a sapphire pendant sold for $17m, setting record sapphire jewelry sale at auction.
- Lawrence Graff bought a pair of pear-shape, 6.95-ct, fancy vivid blue, S12 and pear, 6.79-ct, fancy pink, VS2 ear pendants for $15.9M, swooping the Geneva auction circuit buying the top diamond lots at both the Christie’s and Sotheby’s sales (a pair of oval, 20.05-ct and 20.06-cat D, IF, diamond earrings for $7.1m)
- The Grib diamond mine in Russia, owned by oil supplier Lukoil, is arguably the most prospective of the new generation of diamond mines
- Richemont (reported strong jewelry sales during its 6 month period ending September
- Owns Cartier and Van Cleef & Arpels
- Highlight was the sale of the Pavarani necklace from the launch of Royal High Jewelry Collection
- Perlee yellow collection and Peau d’Ane high-end jewelry collection at VCA gaining traction, with the Robe Couleur du Temps selling more than $1m
- Also has interests in watchmakers Piaget, Vacheron Constantin, Jaeger-LeCoultre, IWC and Panerai
- Benefited from successful product launches and prices increase in certain markets
- Subdued sales mitigated by lower precious metals and cost containment measures
- MEA was its strongest growth market (sales up 21%)
- Sales fell in AP region (weakest performance in its largest market since 2009)
- Impacted by volatile environment in HK and Macau
- Owns Cartier and Van Cleef & Arpels
- Global gold jewelry demand declined due to a drop in Far East demand (gold jewelry = 57% of total gold demand during Q3)
- Understanding the business cycle is vital to understanding one’s own inventory
- Approximately 30 – 40% of annual diamond jewelry retail sales in the US take place in November and December, with steady demand spreading over to Valentine’s Day, Mother’s Day and the summer wedding
- China has peaks during the February Chinese New Year, the May and October Golden Weeks
- Logically, Chinese retailers should be taking delivery of goods in December of January for the February season unless they are seated with sufficient inventory
- Sales in India are weighted around Diwali and subsequent wedding season
- US polished imports tend to peak in October or November, excluding the large imports in May for JCK Las Vegas show where jewelers typically needing 4 – 5 months’ advance time to make their orders i.e. set those diamonds into jewelry in time for October – November season
- De beers estimates about 9 months for a rough diamond to be extracted till the time is available for sale to customer, and about 4 – 5 months are dedicated to manufacturing and certification process
- Thus, manufacturers are theoretically buying rough in May – Jul, so the polished goods are ready for jewelers on time around October
- Tiffany & Co’s Q3 sales buoyed by demand in the Americas, while AP region was relatively sluggish
- Strongest growth in fashion jewelry at relatively higher price points
- America’s growth driven by rise in the average price per unit sold
- Operated 122 stores in the Americas at end of Q3 (120 stores a year earlier)
- Sales in HK impacted by political protests leading to decline of visitors
- 9 stores in HK contribute a meaningful part of sales in the region
- 72 stores in AP during Q3 (68 last year)
- Drop in sales in Japan attributed to yen depreciation and weak economic conditions (56 stores in Japan)
- Mixed sales in Europe – soft in UK satisfactory in Paris (38 stores in Europe by end of Q3; 36 last year; 5 stores in UAE; opened 1st store in Russia bring total store count to 294)