Thailand to Host Diamond Bourse Meeting
The World Federation of Diamond Bourses (WFDB) congress, a major global diamond industry gathering held biannually, is on the verge of accepting Thailand’s bid to host the 1998 WFDB Congress Meeting.
WFDB President Eli Izhakoff, whorecently visited Thailand, said the acceptance would reflect Thailand’s growing importance in the world diamond community, reported the Bangkok Post.
Thai Joint Venture to Boost Trading in China
IGS Public Co Ltd and Charoen Pokphand (CP), along with two major Chinese jewelry companies, have established the Shenzen Jewellery Exchange (SJE).
The joint venture company will establish a wholesale and distribution center for precious stones and jewelry in Shenzen, the special economic zone opposite Hong Kong. In announcing the joint venture, IGS chief executive officer Boonyong Assarasakorn, said SJE is aimed at capitalizing on the business potential for gems and jewelry on the Mainland.
Under the agreement, Jewellery Asia World, a Thai firm jointly owned by IGS, CCP and Jewellery World, holds a 30 percent stake in SJE. The two Chinese partners are Shenzen Jewellery City Co and Overseas Chinese Town Co, whose holdings are 30 percent and 40 percent, respectively.
Gold Master Announces New Jewelry Line
In January Gold Master announced its new line of gold called “Harmonique”, a blend of yellow and white gold. Harmonique will also serve as a generic reference to all of the upcoming gold Master collections featuring yellow and white gold.
The same announcement contained news of the company’s exclusive distributorship of the limited edition of coins commemorating the 1996 Centennial Olympic Games in Atlanta, Georgia, Gold Master is the first Thai concern ever to be awarded such right, which normally would be extended to international banks or large corporations in some member countries of the International Olympic Committee, said Gold Master.
Austrian Prince Shows Private Jewel Collection
Prince Haik Georg Zarian Eghiazarian of Schachnasar brought his eclectic collection of jewels to Thailand recently. Jewels from famous makers and works of art from Cartier and Fabergé, as well as his own designs manufactured in Austria, were on display at Bangkok’s Dusit Thani Hotel.
Years ago, Prince Haik cofounded one of the principal jewellery businesses of Hong Kong to complement his successful Bey
Arts Jewellery shop in Salzburg. He has shown his collection in Hong Kong and Singapore, with this being the first visit to Bangkok.
Tiffany Opens Boutique At Jewelry Trade Center
Tifanny & Co, the 158-year-old jeweler and specialty retailer, opened a boutique in the Jewelry Trade Center’s Galleria Plaza earlier this year. HRH Princess Soamsawali and 350 guests participated in the opening ceremony, that included a “Breakfast at Tiffany’s”, and the unveiling of Tiffany’s signature blue box.
A special collection of merchandise from around the world fills the 140 square/meter store in the Galleria, reminiscent of the firm’s famous Fifth Avenue store in New York. Many collections are featured at the new Bangkok boutique.
“We are very pleased to be a part of this vibrant market and are proud to introduce Tiffany’s ezquisite designs to discerning customers in Thailand,” said senior vice president Thomas O’Neill.
AIGS Honors Class of ’95
The Asian Institute of Gemological Sciences held a ceremony for its graduation class in early February. Dr. Charuaypon Torranin, deputy secretary general of the Office of the Private Education Commission, from the Ministry of Education, was one of the special guests at the ceremony.
This year’s graduating class numbered 63 students from 15 countries, which included students from Australia, Belgium, France, Iran, Italy, Japan, Korea, Malaysia, Russia, Singapore, Sweden, Switzerland, Thailand, the United Kingdom and the United States.
The accredited gemologist program at AIGS consists of five courses requiring approximately nine months to complete.
Aśialuxe Opens Thai Pearl Plant
Asialuxe recently announced its plans to make Thailand the center for its launch of Tahitian pearls in Southeast Asia and is opening a factory in Thailand for regional distribution.
“Asia is the largest growth market for pearls. It is the major processing and distribution center for this luxury product, especially Thailand and Hong Kong because of their jewelry manufacturing expertise. Many pearl setting factories have already been established in southern Thailand, and Thai craftsmen are very skilled. Thai mounted South Sea pearls are highly appreciated and achieve high sales performance within the Asian region, especially in countries such as Japan, Korea, Singapore, and Taiwan, where markets are fast growing due to increased demand,” said Philippe Vasseur, of Asialuxe.
Wholesalers of black pearls from the South Sea Islands of French Polynesia, Asialuxe began operations in 1994. The company anticipates an increasing demand due to the economic growth in Southeast Asia, which should boost sales.
Thai Gold Prices and Demand Remain Stable
Earlier this year gold reached the symbolic $400-per-ounce price. Analysts say gold is a “sure buy”. One analyst said jokingly, “Even if gold was French camembert [cheese], traders would still buy it”. One theory for gold’s price hike is US bonds are falling in popularity as a conservative investment. Thailand is no exception to the trend. Thai investors are looking for ways to hedge against inflation with lower interest rates. Also, in keeping with worldwide trends, Thai investors are putting their money into bullion, in the form of locally and internationally minted coins. Against international prices, gold in Thailand remains 0.3 percentage points lower than the levels found in major bullion markets such as Britain and Australia.
Unless overseas bullion markets experience further volatility, local prices are expected to remain for most of the next six months in the range of $418.86 to $427.16. Pongpan Ponsiribanyat, manager of the World Gold Council’s Thailand office, said the reasons for lower prices on gold include buyer resistance to higher prices, unloading of excess gold stocks by individual investors and a heave unused inventory in Thailand.
Despite the price increase of gold, Thai gold consumption is expected to increase 25 percent to 60 metric tons. Traders in Bangkok attribute the upward surge to the jewelry manufacturing sector’s orders from recovering consumer markets. Taiwan and Chinese gold markets are expected to surge in demand as well.
Jewel Fest 4 Promotes Sales, Design Contest
Since its launch in 1993, Jewel Fest has emerged as a premier trade event to promote the local sales of high quality Thai jewelry that are normally exported to major international outlets.
Privy Councilor Kamthon Sinthvananda presided over the opening ceremony and presented certificates to the Top Ten Jewelry Designers.
“Jewel Fest 4 will be a major event as part of the association’s TGJTA’s 20th Anniversary and this is an important occasion for the Thai gems and jewelry industry because of the leading role the association is now playing in developing and protecting the image and reputation of those involved in Thailand’s gem and jewelry business,” said Pornsit Sriorathaikul, chairman of the Jewel Fest 4 sub-committee.
Of special interest at Jewel Fest 4 was the staging of Cosmos, designed and produced completely by Thai artisans. It is made of 15 kilograms of gold, and accented with 20,000 carats of colored stones and 100 carats of diamonds. The design concept was based on the beginning of all the planets in the universe. Cosmos opens and closes automatically to music, showing 12 jewelry flowers inside, representing the 12 houses of the zodiac.
TGJTA Set to Join International Group
The Thai Gem and Jewelry Traders Association (TGJTA) is seeking to be recognized as Thailand’s main representative trade body. Boonyong Assarasakorn, president of the TGJTA, will lead a delegation of 20 association members to Vienna as part of the International Confederation of Jewellery, Silverware, Diamonds, Pearls and Stones (CIBJO) congress in April.
CIBJO members have expressed the mutual benefits of having Thailand join the international group, namely greater consumer protection of gem and jewelry coming from Thailand. Ad a member of CIBJO, Thailand stands to enjoy a better image based on the international group’s widely accepted standards.
Thailand had been under increasing pressure to join CIBJO because of the country’s increasing role in the world’s jewelry industry. During the April trip to Vienna, Boonyong is expected to offer Thailand’s full commitment to the organization. He will also seek to secure a greater role for Thailand at the Basel International Watch, Clock and Jewellery Fair.
Platinum Becoming a Heavy Demand Metal
Last September, the Platinum Guild International (PGI) began a five year plan to promote platinum. The “I Believe. Platinum” campaign is geared to promote platinum for gift giving and personal jewelry purchases.
Platinum is becoming increasingly popular in Japan, with sales growth amounting to nearly 50 percent. Exports of platinum jewelry to Japan have become a major contributor to the value of imports to the country.
Nearly 30 percent of the total value of Thai jewelry exports to Japan were comprised of platinum jewelry items. According to trade analysts, almost all of the platinum jewelry items shipped to Japan was in the upper-middle to high-end ranges, with the export price for each item starting at $750.
Thai platinum jewelry exporters are not only looking to upgrade methods of designs and craftsmanship of platinum jewelry, they are also looking to expand into other markets as well. The open markets in Europe are seen as a way to cope with the increasing cost of platinum. Thailand remains competitive in exporting the heavily promoted precious metal because the country’s excellent workmanship is still less expensive as compared to other countries.
AIGS Lab Extends Hours and Services
In February, the AIGS lab embarked upon a phased program of increased opening hours for its lab in the Jewelry Trade Center building located on Silom Road in Bangkok. With increased demand upon its services, and the desire to meet the fast turnaround needs of the industry, the laboratory now remains open for business from 7am to 9pm Monday through Friday, and on Saturday it is open from 9am to 6pm.
With these changes, turnaround times have now been reduced to 24 hours for the normal service with full report and same day for express service with full report. Within the coming weeks a new “on the spot” consultation service will be implemented and this will also reduce overall turnaround times.
It is envisaged that within the next year, the AIGS lab will eventually be open 24 hours a day in order to keep up with industry demands.
Thai Government Confirms Gem Sales Figures
The Thai government’s released figures of 54,228.07 million baht in gem sales last year, put an end to the discrepancy between projection figures set by the industry and the government.
Both parties agreed, however, that the sales figures went beyond anticipated sales projections for Thailand’s gem and jewelry industry. Compared to 1994 export figures, last year saw an increase of 12.66 percent.
Diamond exports registered the best performance, expanding in actual value by 26.6 percent. Fine jewelry exports were up 12.13 percent, due to the rise in value of exports to European Union countries. Fine jewelry exports to Switzerland jumped significantly in value by 50 percent, putting it in fourth place as one of Thailand’s largest consumer markets. France remained a strong market representing a 45.83 percent increase.
Germany, Thailand’s third largest buyer of fine jewelry continued to remain weak, growing marginally by 1.82 percent. Other European national such as Belgium and England recorded increases as well. Exports to the United Arab Emirates rose an impressive 90 percent in value. Precious metal exports increased as well, and pearls showed a marginal increase. Synthetic gemstone exports decreased by 21.3 percent, while natural gemstones were down 7.09 percent. The Commerce Department had projected a 25 percent decrease for gemstones.
Prima Gold Launches New Diamond Lines
Prima Gold, a major dealer and highly respected name in 99.99 percent pure gold jewelry, recently expanded in Thailand with the launch of Prima Diamond, a new line of jewelry created for Thai working women.
“There has been impressive growth in sales of jewelry and precious gems in the Thai market, especially during the last two years, said Pratana Jirarayapong, general manager of Prima Gold. “Business has been expanding at the impressive rate of about 35 percent per year which has established Thailand as one of the most important gem markets in the world. Thailand presently ranks sixth largest in the diamond business. In view of this highly supportive market, we are certain that Prima Diamond will be a major success.”
Prima Diamond has introduced five different lines of jewelry, including rings, earrings, necklaces, bracelets and brooches. Styles are targeted at business women aged 25 to 35. It is further targeted at a secondary group which includes housewives and working women in their late 30s and 40s.
To enhance sales and reassure customers, the company offers insurance certificates to ensure customers are satisfied with their purchases.
International Russia and De Beers Ink New Sales Deal
Russia signed a cooperation agreement with De Beers Consolidated Mines on February 23 that paves the way for a three-year sales contract, ITAR-TASS news agency reported.
The new agreement gives the Russians a “greater quota for independent export of rough diamonds”. The increase is a major coup for Russia, which has long accused De Beers of underpaying for stones and standing in the way of the local cutting industry.
At the same time, the agreement confirms “De Beers’ position as the sole and exclusive buyer of all rough diamonds.”
The agreement was signed by Russian Finance Minister Vladimir Panskov and De Beers deputy chairman Nicky Oppenheimer.
The two sides have been negotiating since 1994 on the renewal of the previous deal which expired at the end of 1995.
It is anticipated that the CSO’s 1996 rough purchases under the new contract will come to around $700-800 million.
Parabolic Cut Offers New View
Michael Dyber has developed the parabolic facet, creating a 180°view of the diamond. He has won several American Gem Trade Association (AGTA) awards for his cutting techniques, and is often called the master of illusion. His new work features an adaptation of the “Dyber Optic Dish”. By carving optic dishes with much lower relief and substantially larger diameters, he has captured 180° of the optical illusion.
Brazil Finds New Amazon Gold Mine
Brazil’s state mining company Vale do Rio Doce discovered an underground mine in Curionopolis, 1,860 miles northeast of Rio de Janeiro, in the jungle of Para. The reserve, worth $1.6 billion, is expected to increase Brazil’s annual gold output by 25 percent.
So far $5 million has been spent on exploration, with an additional $10 million earmarked for testing and exploration over the next three years.
It is estimated 15 tons of gold will be mined in the next ten years. The mining will be done mechanically and the gold will be separated with electrochemical processing, according to company president Francisco Schettino. The company hopes to avoid problems experienced in the 1980’s when the Serra Pelada mine was dug manually. Problems arose when the government stepped in and decided to mechanize the mine in the middle of the excavation, resulting in numerous uprisings amongst angry miners who lost their prospects.
GIA Develops New Chart For Diamonds
The Gemological Institute of America (GIA) has developed “A Chart for the Separation of Natural and Synthetic Diamonds”. The main authors of the chart are James E Shigley, Emmanuel Fritsch, IIene Reinitz and Thomas M Moses.
The Chart describes those gemological properties that are key to the separation of gem-quality yellow, blue, and colorless (to near-colorless) natural diamonds from synthetic diamonds.
This format was designed to give jewelers and gemologists a ready reference to identify synthetic diamonds as they enter the jewelry trade. Magnification and luminescence are the most important testing techniques currently available to jewelers and gemologists. The most distinctive features of synthetic diamonds include color zoning, graining, metallic inclusions (often making the stone magnetic), and uneven ultraviolet fluorescence.
Christie’ Makes Donation to GIA
Christie’s donated $100,000 to the Gemological Institute of America (GIA) to be used towards the sponsorship of the GIA’s diamond grading course’
‘Christie’s is delighted to sponsor this vital program which is provided by the GIA”, said Simon Teakle, head of Christie’s jewelry department in New York.
“The understanding of diamond quality, grading and overall appreciation is crucial to the future of our business in the context of today’s environment. Today, no important stone can be offered without considering a GIA certificate and it is of great importance that as many people as possible be able to interpret these certificates,” he said.
Gold Makers Merge in Stock Swap
The Battle Mountain Gold Co in Houston, Texas has agreed to merge with Helmo Gold Mines of Toronto in a $1.5 billion stock swap. The new company, which will be based in Houston and retain the Battle Mountain name, expects to produce over a million ounces of gold this year, with mines operating in the United States, Canada, Chile, Bolivia, Australia and West Africa.
Karl E Elers, chairman and chief executive of Battle Mountain, and Ian Bayer, president of Helmo, issued a joint statement saying they expect Battle Mountain to become “one of the leading gold mining companies in the world and a top-tier player in the industry”.
The merger should help the two companies reduce operating costs, increase in size, expand exploration and reduce production costs.
Wells Gold Signs Joint Venture
Wells Gold Corp of Australia and Malaysia’s Akay Holdings Sdn Bhd signed a $12 million deal to mine for gold in Malaysia. The joint venture firm, Raub Australia Mining Sdn Bhd, will mine for gold in Malaysia’s central Pahang state, said Andrew Kam Tai Yeow, managing director of Akay Holdings.
The joint venture hopes to have listings on the Kuala Lumpur stock exchange or the Australia stock exchange. The company will approach Malaysia’s Securities Commission next year regarding this issue.
The mine was discovered in 1896 and operated until 1961. With new extraction processes and higher gold prices, it is once again feasible to reopen the mine. The company hopes to develop this mine for the next 20 years. Kam said the company would start by extracting the remaining tailings for the next five years before exploring new areas in the mine. The plant will process 1.5 to 2 million tons of gold per annum.
De Beers Fails in Indian Mine Bids
De Beers recently completed a mining expedition in India, apparently without much success, the Asia Times reported.
The cartel was eager to secure leases to India’s potential diamond-rich areas, thus maintaining its stranglehold on the world diamond market.
De Beers wanted to lease several hundred square kilometers of land in the Raipur district of Madhya Pradesh and Orissa states. It wants to do a survey to locate deposits and later develop the mines for commercial exploitation.
De Beers bid to secure the land fell afoul of the strict Indian laws which state that only 25sq/km nationwide or 10sq/km in any one federal state can be given to any private enterprise.
US Polished Diamond Imports/Exports Soar
The United States’ 1995 imports and exports of loose polished diamonds reached record levels exceeding the record-setting figures of the previous year, according to the American Diamond Industry Association (ADIA).
According to the latest US government information, cut but not set diamonds weighing 11,933,971 carats valued at $5,321,647,921 were imported in 1995 by American merchants compared to 10,685,811 carats valued at $4,943,928,273 in 1994. Both totals established new records, reflecting increases of 11.7 percent in carats and 7.6 percent in value.
Israel was the source of more than 39 percent by value of these diamonds supplying the US with $2.1 billion of goods. India and Belgium followed in that order, accounting for $1.4 billion and $1.3 billion respectively. The imports from these three countries amounted to 89.7 percent of the total value imported.
Meanwhile exports of cut but unset diamonds from the US in 1995 also hit new highs. Total shipment of 2,140,091 carats amounting to $2,010,001,317 was all-time highs in both weight and value. These exports reflected an increase of 62.2 percent in weight and 15.6 percent in value over the figures in 1994.
Russia Considers Diamond Bourse
Russian diamond authorities are set to establish a new diamond exchange, possibly in conjunction with De Beers, said Ararat Evoyan, head of the Russian Association of Diamond Producers.
Almazy Rossii Sakha, Russia’s biggest diamond mining and export company, and Almazyuvelir export foreign trade association will sponsor the bourse.
Riots at US Mine in Irian Jaya
Two people were killed after thousands rioted in Irian Jaya, Indonesia near the giant US owned copper and gold Freeport mine. Two people died as they fled in stolen vehicles, one of which collided with a bus.
Angry rioters demanded to speak with James Mofat, CEO of the New Orleans based Freeport McMorran, the parent company of PT Freeport Indonesia, after this incident, which involved a Freeport employee. As one of Indonesia’s largest foreign investors, the US based company has been repeatedly criticized for alleged environmental and human rights abuse.
The military maintains it has control over the situation, but additional outbursts have kept the rioting going for four days. The mining company suffered severe damage to its environmental laboratory in Timika, Indonesia.
De Beers Announces Strong 1995 Results
De Beers Consolidated Mines Limited (De Beers) and De Beers Centenary AG (Centenary) recently announced an 11 percent increase in combined attributable earnings for the year ended December 31, 1995 to $624 million or $1.64 per De Beers/Centenary linked unit.
Including the share of retaining earnings of associates, combined earnings were 18 percent higher at $986 million, or $2.59 per linked unit against 1994 figures of $833 million or $2.19 per linked unit.
HRD Announce 1996 Diamond Missions
The Diamond High Council of Antwerp has announced the 1996 diamond missions, part of the public relations program on behalf of the Belgian diamond sector.
The countries in which the missions will take place this year are: Switzerland, at the Basel trade fair; the US, at the JCK show in Las Vegas from June 2-6; Mexico, where it will hold an Antwerp Diamond Conference on June 6; Japan, at the Japan Jewellery Fair, September 17-22;and Hong Kong, at the trade fair, September 17-22.