Novel Collection news – January 2013

Diamond Trade News – Upcoming Events

Hoping your New Year has started well, there are many diamond events this year and we recap them below. These are widely anticipated trade shows occurring this year, which have generated intercontinental interest and Novel will be there to encapsulate the highlights of the global venues.

2013 will be exciting in the world of diamonds. Many cities are playing host to a number of diamond trade shows and events. Our worldwide participation in the events will keep track of all the major news and stories coming from the various exciting venues. We will keep you updated on the spectacular showcases for diamonds globally keeping you tuned in to the dazzling diamond displays of beauty and investment. From Miami to Hong Kong to Switzerland to Las Vegas and New York and more – see the diamond trade shows and events which occur this year and that Novel Collection will be participating in. First up a trip to the sparkling Atlantic Ocean in Miami Beach, read more for all the fantastic upcoming events at our Trade shows page.

 

Forecasting the future of fancy colored diamonds and the global rough diamond supply

As mentioned in our other news by diamond guru Robert Procop, the interest and investment in fancy color diamonds is a wise choice in the market today. A strong demand for fancy colored diamonds is ramping in China, India and Southeast Asia – this was the case in 2012 and continues to be the outlook this year. In addition, Christies and Sotheby’s expect some amazing auction results which may even surpass the records set in 2012. All the signs are in place for the continual market growth of investments in FCD. Add the ETF activity to the mix and we see a very stable investment in the gems for the future. Most experts agree, investments, especially over $500,000 in the rarer and more valuable colored diamonds can have an exponential increase in value. A FCD bought for $300,000, for example, 10 years ago, could be worth over $6 million on the market today. Remember that all the variables of ETFs are similar to investing in Mutual Funds and a broker who understands the intricacies of such an investment may be necessary. 

Although rough diamonds achieved record prices in the summer of 2011, the market has settled somewhat due to global macro-economic worries. Yet forecasters expect new supply is estimated to fall short of new demand over the next two decades, which could take prices back to new highs. According to a December Bain and Co. report, “The Global Diamond Industry: Portrait of Growth,” global diamond demand is expected to grow at 5.9% annually through 2020, while supply is only expected to grow at 2.7% over the same period of time. Modest-at-best new supply growth over the next 17 years can be attributed to mature mines approaching non-economic depths, and a lack of new projects to offset the diminishing production of the aging mines. Even with annual supply growth of 2.7% through 2020, the supply in 2020, estimated to be 157 million carats, will still not equal pre-financial crisis supply of 177 million carats produced in 2005.

In Addition, Zimbabwe’s production output at Murowa Diamond Mine increased by 10 percent to reach 313,000 carats for the full year ended December 31, 2012 compared to 285,000 carats mined the previous year, parent company Rio Tinto has reported. Meanwhile, total diamond production for the group last year rose to 13,122,000 carats from 11,733,000 mined in 2011. The Argyle Mine in Australia produced 8,471,000 carats up from 7,441,000 carats in2011 while the Diavik Mine in Canada produced 4,338,000 carats. While the diamond prices have recently slumped, due to Eurozone debt and sluggish purchases from Southeast Asia, the market is expected to rebound in prices this year following an announcement by De Beers, the world’s largest diamond producer late last year that it was going to constrain supply in 2013.

 

MoneDiam to launch Diamonds similar to Bullion on a “Credit Card”

MoneDiam is a new diamond investment set to launch in June 2013, which it says for the first time will enable investors to trade physical diamonds in the same way they can bullion. The trade is based on ‘MoneDiam Units’, each of which constitutes 10 polished diamonds encapsulated on a credit card sized card. Each card will carry a standardized weight and value. There will be 16 units, valued approximately between $6,000 to $540,000. “The high security liquid and tradable hard asset class will open a new market for international investors and the diamond producing industry alike. The patented technology and the unique design make it a quality investment for institutional investors as well as private owners as it is secure, tamper proof and the diamonds will be certified by GIA,” MoneDiam said.

Now it is the right time to invest!