American Diamonds Forever PressRoom

U.S. Jewelry Sales Set Record $68.3 Bln in 2011

2012-02-03T16:36:00.002-06:00

Total U.S. jewelry and watch sales were a record $68.3 billion in 2011, a gain of 11 percent over 2010, based on preliminary data from the U.S. government.

This was well ahead of 2010’s $61.5 billion, and substantially ahead of the prior record year – 2007 – when U.S. jewelry and watch sales were $65.3 billion.

In the 2007-2009 period, the U.S. economy was in a recession. While many jewelers claimed hardship, the recession actually had only a modest impact on retail jewelry sales. Peak-to-valley – 2007 through 2009 – jewelry and watch sales dropped by only 11 percent in the U.S. market before posting a solid recovery in 2010 and 2011.

Total jewelry sales rose by 10.8 percent to $59.2 billion in 2011, while total watch sales rose by 12.1 percent to $9.1 billion. Watch sales were 13 percent of total industry sales, stable with the prior couple of years.

The total industry sales gain was the first double-digit increase since the mid-1980s, when the industry posted several years of sales gains in the low-to-mid teen range.

Most of the sales gain in 2011 was due to inflation related to higher costs of precious metals and polished diamonds: retail jewelry prices were up by about 8.4 percent during the year, so “real” jewelry sales rose by about 2.6 percent.

Execs Think Gold Price Will Hit Record in 2012

2012-02-03T16:26:00.000-06:00

A recent survey of gold mining executives by PricewaterhouseCoopers found that a majority think the price of gold will continue to rise in 2012.

According to the accounting firm’s 2012 Gold Price Report, some 80 percent of gold mining executives queried expect the price of gold to increase throughout the year. Only 6 percent foresaw a decline.

A majority expect the price to peak at $2,000 an ounce, which would be a record. At press time, it was trading at $1,664 an ounce, though at one point last year it hit $1,900.

The highest prediction was $2,500, the survey said; the lowest, $1,350.

The survey questioned 40 executives, whose companies represent 26.5 million ounces of gold mined in 2011.

Women Favor Jewelry for Valentine’s Day—But Aren’t All Getting It

2012-02-03T16:18:00.000-06:00

Nearly one-third of women (29 percent) would choose jewelry if they could receive only one gift for Valentine's Day this year, according to a new survey by Sentient Decision Science for Sears.

Ranking second to jewelry were the other Valentine’s Day staples, flowers or chocolate, favored by 20 percent. Some 9 percent of women preferred perfume, and only 8 percent said the “latest technology product.”

Yet, despite this preference, another survey predicts that not every woman will receive the jewelry she wants on Feb. 14.

According to the American Express Spending & Saving Tracker, 29 percent of consumers are giving flowers for Valentine’s Day this year, with 19 percent giving gift cards, and only 15 percent giving jewelry.

Other data of interest of jewelers.....

Arkansas Park on Verge of 30,000th Diamond Find

2012-02-03T16:14:00.000-06:00

The Crater of Diamonds State Park in Murfreesboro, Ark., the only public park where visitors can search for diamonds, is about to mark the 30,000th stone found there.

According to a park release, the latest count of diamonds found at the park is 29,934—just 66 short of 30,000. The park plans some commemoration of the 30,000th discovery.

Last year, 106,524 people visited the park, and a record 500 stones were found. It celebrates its 40th anniversary in March.

In the most recent notable find, a 2.44 ct. stone found last year was recently cut into a 1.06 ct. F VS2 pear-shape diamond, appraised at $21,639.

Christie's Jewelry Sales +41%

2012-02-03T16:03:00.000-06:00

Christie's reported sales of $5.7 billion (GBP 3.6 billion) for 2011, which represented a 9 percent year-on-year increase in British pounds. The auction house reports results in pounds so it recorded a jewelry sales increase of 35 percent, but by dollar value that figure rose 41 percent year on year to $600.1 million. Watch sales jumped 21 percent to $116 million, exceeding the $100 million mark for the first time. Strong increases were also recorded for sales of wine and art categories such as 20th Century Decorative Arts, British and Irish Art, Old Masters and 19th Century, Asian Art and Post-War and Contemporary Art. However, sales for Impressionist and Modern Art fell 28 percent.

Christie’s jewelry and watch department observed that the diamond market held strong throughout the year. A perfect heart-shaped diamond of 56.15 carats sold for $10.9 million in Geneva and a pair of cushion-cut diamonds of 23 carats each were sold for $9.3 million in Hong Kong in May. The famous Elizabeth Taylor diamond of 33.19 carats sold for $8.8 million on December in New York.

Colored diamonds also had an excellent year at auction with a pear-shaped diamond of 32.77 carats realizing $6.6 million in New York. During one New York auction, a Burmese ruby of 8.62 carats sold for $4.2 million and an emerald of 23.46 carats was sold for $6.6 million. In Geneva, a Burmese sapphire of 130.50 carats sold for $7.1 million. The famous 16th century Peregrina pearl sold for $11.8 million in New York in December. Another pearl necklace, which Christie’s had sold in New York in 1981 for $72,000, was sold again in Geneva in November for $790,000.

Steven P. Murphy, Christie's chief executive, observed that a global appetite for collecting art and jewelry was reflected in increased buyer activity during 2011. U.S. and European clients accounted for 77 percent of sale registrations, with 13 percent from Greater China, an increase of 2 percent on 2010. Registered clients from Russia and the CIS increased 15 percent. New clients represented 12 percent of the value of global sales.

The website, www.christies.com, welcomed 77 percent more unique visitors than 2010 and 29 percent of Christie’s bidders transacted online. Christie’s LIVE™, the interactive online bidding platform, drew 25 percent more bids than the previous year with two works of art selling across this channel for more than $1 million.

As part of the sales series dedicated to the Collection of Elizabeth Taylor, Christie’s held its first online-only sale, which ran in parallel to the live auctions out of Christie’s New York. The two-week time-based auction resulted in $9.5 million in sales and bidders from 25 countries competed for 973 additional items from Taylor’s personal collection.

''We are operating in an informed market with pricing, curation and presentation key to success,'' said Murphy. ''Christie’s goal is to serve its clients. As we continue to see strong auction sales, we are also responding to the wishes of our clients with Private sales growing and accounting for GBP 502 million of our sales total. Collectors also continue to be inspired by the great collections. We saw intense interest in the Gourdon Collection in Paris, the Norton Collection in New York and the Cowdray Collection in London in particular, all attracting a broad audience. The crescendo of the year was the Collection of Elizabeth Taylor which was seen by 58,000 people in an eight-city tour before being sold at auction in New York in December. With bidders from 36 countries, every one of the 1,778 lots found a buyer contributing to total sales of $157 million.

''As we approach the sales over the next fortnight in London, we are optimistic about the market in 2012. We also remain committed to our role as cultural stewards through our auctions, private sales and exhibitions. Christie’s is a unique place where commerce and connoisseurship is the hallmark of the Christie’s team and we look forward to an exciting series of upcoming sales, exhibitions and partnerships,'' he concluded.

LVMH Sales +16% to $31B

2012-02-03T15:47:00.000-06:00

Revenue rose 16 percent year on year to $31.2 billion (EUR 23.7 billion) for luxury group LVMH during 2011 and profit jumped 22 percent to $7 billion (EUR 5.3 billion). Specifically for the watches and jewelry segment, revenue nearly doubled to $2.6 billion (EUR 1.95 billion) in large part due to the integration of Bulgari. LVMH reported that organic revenue, which reflects comparable-store sales and exchange rates for the watches and jewelry segment rose 23 percent.

LVMH watch and jewelry brands continued sustained growth across all geographies, according to the company. TAG Heuer made a splash with the launch of two exceptional products entirely developed and manufactured by its own workshop: the Mikrograph 100 and the Mikrotimer Flying 1000. Hublot continued its innovations with the launch of Masterpieces, the new watch collection of Grandes Complications, and extended its store network. Zenith benefited from the renewal of its emblematic lines which demonstrate the first class craftsmanship of its Manufacture. Bulgari's performance was strong and the collections, which were developed around the theme Serpenti, a symbol for the jewelry maison since the 1950s, were very well received.

Bernard Arnault, the chairman of LVMH, said that 2011 results highlighted the power of the group's brands. ''Our businesses enjoyed excellent momentum and profit from recurring operations passed the threshold of 5 billion euro for the first time. The agreement with the Bulgari family was one of the key moments of the year. In 2012, LVMH intends to further strengthen its global leadership position in high quality products by relying on its sound, long-term strategy."

Amazon's 4Q Sales +35% But Profit -57%

2012-02-03T15:42:00.000-06:00

Online retailer Amazon.com reported a strong fourth-quarter with revenue surging 35 percent year on year to $17.4 billion for the three months that ended on December 31. However, net income plunged 57 percent to $177 million. Product sales during the quarter rose almost 31 percent to $15.3 billion while business services increased 74 percent to $2.1 billion. Operating expenses, including cost of sales, marketing and fulfillment, rose 38 percent to $17.2 billion.

Jeff Bezos, Amazon's founder, said, ''Our millions of third-party sellers had a tremendous holiday season with 65 percent unit growth and now represent 36 percent of total units sold.''

Amazon's financial year reflected a 41 percent year on year increase in sales of $48.1 billion and profit fell 45 percent to $631 million.

Guidance for the company's first-quarter underway now suggests that net sales could increase 22 percent to 36 percent, but that operating income is expected to be between a loss of $200 million and a gain of $100 million. The guidance included approximately $200 million for stock-based compensation and amortization of intangible assets.

Brooke Burke Partners with Chad Allison for Jewelry Line

2012-02-03T15:35:00.000-06:00

Television personality Brooke Burke will launch a jewelry line with the label ''Brooke Burke Collection by Chad Allison.'' Her partnership with the brand created 30 jewelry styles consisting of bracelets, pendants, earrings, and rings in black and white diamonds and colored gems in gold and sterling silver.

The pieces will retail from $149 to $3,000 and Chad Allison targets a distribution channel of 700 doors across the U.S. The official launch for Burke is planned for Luxury by JCK in May.

Burke is an actress, dancer, author, model and co-host of numerous televised shows such as Dancing with the Stars, Annual Golden Globe Awards and Miss America Pageant. She co-founded Baboosh Baby and is a brand ambassador for Sketchers.

Jewelrybrands.net Features Gameplan's NBA Diamond Jewelry

2012-02-03T15:30:00.000-06:00

Gameplan, a maker of fine jewelry for the sports world, including NBA Diamond Jewelry®, now offers its specialty collections at Jewelrybrands.net. The company's pieces are officially licensed by the NBA and include two important diamond jewelry series featuring team logos.

The W Series is a limited collection with full-cut black and white diamonds that are designed for each team logo and microset in pure white gold. Each W Series piece includes a 36-inch NBA premium Italian white gold chain and is individually numbered and registered and prices range between $8,800 and $19,000.

The B Series is a gold and diamonds jewelry collection of NBA team logos and these are forged in gold and feature diamonds along with a 20-inch NBA premium Italian white gold chain. All items are individually numbered and registered and prices are generally between $2,000 and $3,000.

Gameplan also offers its 500 Series for men and 300 Series unisex necklace designs that are big, bold and solid, featuring vivid and rich color enamel and a durable bright gold alloy, chrome alloy or jet alloy finish. These neckpieces include a matching 30-inch long, 3.2 mm high-polished ball chain that can be easily adjusted.

Retailers Plan Promotions Ahead of Valentine’s Day

2012-02-03T15:23:00.000-06:00

With Valentine’s Day less than three weeks away, retailers are creating ways to help drive jewelry sales. Retailer Carter’s Diamonds and diamond brand Hearts On Fire launched a promotional “Hearts On Fire In Ice Presented by Carter’s Diamonds,” contest with a grand prize of a “Transcend Dream” diamond engagement ring valued at $20,000. Four runners-up will receive an item from Hearts On Fire’s fashion line of diamond jewelry valued at $1,750.

Participants in the Carter's promotion write their love story in 100 words or less and post, along with a picture or video, to Carter’s Facebook page. Twenty-four entries will be chosen for the semi-finals and then the public will choose the top five entries. Those final five will be given a unique challenge at Carter’s Diamond headquarters in Danvers, Massachusetts, on....

GIA Museum Spotlights Rare Book Collection

2012-02-03T15:19:00.000-06:00

The Gemological Institute of America's (GIA) latest museum exhibit, "Tablet to Tablet: Treasured Pages from Past to Present," showcases more than 26,000 pages from rare books on gems, minerals and natural science dating back to the 15th century. The collection is on display at the GIA museum in Carlsbad, California, and will be open to the public through mid-year.

The exhibit encompasses the development of gemology, crystallography, jewelry manufacturing and design, the valuation of gemstones and precious metals, diamond mining and more. Among the 15 cases of books and distinctive objects is the documentation of one family’s incredible wealth, "The Romanov jewels and regalia."

''Visitors are amazed at how fascinating rare books are when combined with gems, jewels and images that reveal their stories,'' said Dona Dirlam, the director of GIA’s Richard T. Liddicoat Gemological Library and Information Center. ''The museum and library have assembled the best of the best from our archives; books written in Roman times, those printed around the time of [Christopher] Columbus, and one written by a 17th-century French diamond merchant about his travels to India.''

The oldest book on view is a 1496 edition of "Pliny’s Natural History," which includes content dating back to the year 77. Pliny died during the first recorded eruption of Mt. Vesuvius, yet his surviving records serve as the foundation of ancient gemology.

One-of-a-kind works include original renderings of jewelers’ designs, a handwritten book from 1840 about minerals from Great Britain illustrated with intricate hand-colored plates, and a self-published book containing original artwork that the author, Wendell Wilson, created for the "Mineralogical Record."

DTC January Sight Estimated at $650M

2012-02-03T15:13:00.000-06:00

The Diamond Trading Company (DTC) opened its first sight of 2012 with an estimated value of $650 million, as the De Beers distribution unit adjusted prices but changed the assortments presented.
''We maintained the value of the boxes in the wake of the successful Christmas season in the U.S.,'' said Louise Prior, the head of sightholder services and communications for DTC. ''We realigned our mix in-line with production and our prices reflect this.''

Sightholders who spoke with Rapaport News said that while prices appeared lower on paper, the reductions were not so clear once the boxes had been assessed.

''On paper there was a correction, but in reality, after looking at the goods and the proportions and sizes that they changed, we don’t feel there was any real correction, or at least the correction that needed to be made,'' said one sightholder.

Another sight participant said he expected the company to reduce prices by a bigger margin given that polished prices seemed to soften in December. The RapNet Diamond Index (RAPI) for certified 1 carat polished has fallen by 1.9 percent since the beginning of December. The RAPI for 1 carat stones has declined by 11.2 percent since the start of August.

As a result, many noted that diamond manufacturer’s margins remain very tight. ''Some boxes such as the 4 to 8 grainers are giving even worse value than before,'' one sightholder said. He explained that in previous months DTC supplied more 8 grainers than 4 grainers in these boxes and while the company reduced prices by a few percent at the January sight, it supplied more 4 grainers this time. ''So we’re back to square one,'' he added.

While average prices came down by an estimated 2 percent to 3 percent, some boxes fell by double digit margins, particularly on the better quality stones. Goods that were more heavily impacted were 8-grainer to 2.5-carat boxes, and goods above 5 carats, with estimated reductions ranging from 10 percent to 25 percent in certain stones.

This past week, ALROSA cut its prices by about an average 5 percent heightening expectations that DTC would follow. One sightholder noted, however, that the Russian company had maintained its prices since August when the market slumped and therefore could no longer maintain its price levels. “I feel that the DTC and ALROSA prices are currently about in line with each other,” he said.

London sightholders now expect DTC goods to sell at around list prices on the dealer market. They were selling at slight discounts in the run-up to the sight.

While Prior reported that sightholders displayed strong demand for rough at the sight, sight participants indicated that the market remains slightly down and expressed disappointment that DTC did not make more of an adjustment to their prices.

''There has been less activity than previous Januaries and I think that stems from the fact that the DTC didn’t make the correction that they should have,'' a fourth sightholder said. ''Cutters are not getting rough at a price from which they can make money. So, there’s a bit of a standstill and the rough market is not that strong at the moment.''

Tiffany, Damas Form Joint Venture

2012-02-03T15:05:00.000-06:00

Tiffany & Co. and Damas partnered for the purpose of operating Tiffany stores in the United Arab Emirates. The two companies signed a memorandum of understanding, which will be overseen by a board of directors representing both companies and be headed by Damas chairman, Ibrahim Belselah. The agreement covers all Tiffany stores in the UAE. Tiffany & Co. will manage the business operations in the UAE.
Anan Fakhreddin, the chief executive of Damas, stressed that the joint venture will allow both companies to grow their business in the region. Damas will add value to Tiffany & Co. through its customer network and consumer insight, while Tiffany will be able to bring its latest innovations to Damas’ customers within a short time frame, he explained.

Prior to the joint venture, Tiffany & Co. was operated under a distribution agreement with Damas, which operated all Tiffany & Co. stores in the UAE. Tiffany & Co. currently has five stores, including Dubai Mall, Mall of the Emirates, and Atlantis The Palm resort, in addition to the Marina Mall and Abu Dhabi Mall stores in Abu Dhabi.

''The joint venture between Damas and Tiffany & Co. will demonstrate the confidence that Tiffany & Co. has placed in Damas; this being the first partnership venture of Tiffany & Co. in the world,'' Belselah said.

Damas has 300 stores across 12 countries, most of which are located in the GCC region. Tiffany & Co. has 230 stores worldwide.

Jewelers Mutual, Hearts On Fire Host Valentine's Day Contest

2012-02-03T14:55:00.000-06:00

Jewelers Mutual Insurance Company partnered with Hearts On Fire for a social media contest that allows people to express their love for someone in celebration of Valentine's Day, which is February 14.

From January 16 to February 27, the "Show the Love" photo contest will be promoted on Jewelers Mutual's Facebook page. Contest participants are asked to finish the phrase, "I show my love by..." and then upload a photo that best supports the text submission. The grand prize winner will receive an....

Online Viewers Watch 17% More Video Ads in Dec.

2012-02-03T14:38:00.000-06:00

Digital matrix firm comScore Inc. reported that the number of U.S. Internet users who watched online video in December rose 5.5 percent year on year to 182 million.    The total number of advertisements played in those videos and viewed by U.S. Internet users during the month was 7.1 billion, a 16.9 percent year-on- year increase. On average, the number of hours Internet viewers spent watching online video surged 37 percent to 22.3 hours.

Hulu accounted for the largest share of those online advertisements, with around....

Diamonds Shine on Golden Globe’s Red Carpet

2012-02-03T14:22:00.000-06:00

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.

Jewelers Seek Out Red Carpet Exposure

2012-02-03T14:12:00.000-06:00

It comes by Brink's truck and is hand-delivered by security guards. It is served up on silver platters and in lighted glass vitrines at chi-chi cocktail parties. The finest jewelry in the world is in Hollywood during the weeks leading up to the Golden Globes and Oscars. Because no matter how valuable a diamond may be, a photo of a celebrity wearing one on the red carpet is priceless.

Awards show season is the Super Bowl of celebrity placement. The world's biggest jewelry brands (Harry Winston, Cartier, Chopard, Tiffany & Co., Bulgari, Van Cleef & Arpels, Fred Leighton, Pomellato) are competing with hometown favorites (Neil Lane, Martin Katz, Loree Rodkin), brash newcomers (Kimberly McDonald, Stephen Webster, Solange Azagury-Partridge) and mass-market players (Kwiat, Le Vian) for the chance to bejewel Hollywood's beauties and dazzle armchair fashion fans watching around the globe.

One sparkling moment in the celebrity spotlight can be worth millions in advertising for a jewelry brand. The styles celebrities choose to wear set trends that trickle all the way down to the mall's fast-fashion copycats....

Graff Sues for Return of Stolen Diamond

2012-02-03T14:04:00.000-06:00

A big diamond snatched by Bentley-driving bandits in a brazen, $20 million London robbery has popped up in a Hong Kong pawn shop, says a jeweler who's suing in New York to try to get it back.

The more than 16-carat yellow diamond was among those snatched in a July 2007 holdup at a Graff Diamonds Ltd. branch in London, the tony London-based jeweler says in a suit filed last week in Manhattan state Supreme Court.

A pair of sharply dressed bandits stepped out of a $250,000 Bentley Continental Flying Spur, pretended to be shoppers...

Fossil to Acquire Skagen Designs

2012-02-03T13:53:00.000-06:00

Fossil Inc., designer and manufacturer of clothing, jewelry, watches, handbags, and other accessories, agreed to purchase Reno, Nevada-based Skagen Designs Ltd., which is maker of watches, jewelry, sunglasses, and clocks. Fossil estimated the value of the deal at about ....

Yurmans Name Glen Senk as Chief Exec

2012-02-03T13:49:00.000-06:00

David and Sybil Yurman appointed Glen T. Senk as David Yurman Inc.'s chief executive effective February 27, 2012. Senk, who most recently served as chief executive for Urban Outfitters, has an exceptional record of success in developing and expanding....

JSA Honors FBI, eBay Personnel for Fighting Crime

2012-02-03T13:37:00.000-06:00

The Jewelers’ Security Alliance (JSA) presented awards to two recipients on January 7 who have helped fight crime against the jewelry industry. Sheldon Kwiat, the chairman of JSA, presented the 14th annual "James B. White Award to Law Enforcement" honor to FBI Supervisory Special Agent Eric B. Ives, of the Organized Crime Section for Jewelry and Gem Program. Ives was cited for his assistance as the principal link at FBI headquarters for JSA on issues involving....

Zale's Christmas Season Sales +6%

2012-02-03T13:23:00.000-06:00

Zale Corporation reported that revenue for the November and December Christmas holiday period rose 5.8 percent year on year to $564 million, but the figure included approximately $10 million resulting from the change in warranty revenue recognition. Zale's comparable-store sales increased....

Tiffany's Christmas Sales +7% Despite Weaker E.U., U.S. Comps

2012-02-03T13:15:00.000-06:00

Tiffany & Co. reported that worldwide Christmas-season sales rose 7 percent year on year to $952 million for the two months that ended on December 31. But on a constant-exchange-rate basis, worldwide net sales rose...

Faberge Plans World's Biggest Easter Egg Hunt for London

2012-02-03T13:09:00.000-06:00

In anticipation of its first ''Fabergé Big Egg Hunt'' in London this coming Easter, Faberge held a special breakfast at The Goring Hotel this past November, where head chef Derek Quelch debuted ''Eggs Fabergé'' comprising smoked salmon, scrambled Burford Brown eggs, quail’s egg, lobster, and caviar. The dish will be added to the menu at The Goring throughout the duration of The Fabergé Big Egg Hunt....

Drew Barrymore Receives Graff Diamond Engagement Ring

2012-02-03T13:03:00.000-06:00

Drew Barrymore will walk down the aisle wearing a diamond engagement ring created by Graff Diamonds when she ties the knot with art consultant Will Kopelman...