June 2012 Diamond News
Gala’s and Events
Las Vegas was the spot to be in June, as two amazing shows took place over the week ended June 3, 2012
Novel Collection was on hand at this year’s JCK Las Vegas Luxury show, which was held at the Mandalay Bay Resort & Casino; featuring over 2,500 exhibitors from around the world. The JCK show is a premier event in the diamond industry and although the event was not as strong as anticipated, late high demands from investment shoppers made it a good one for fancy colored diamond dealers…ourselves included.
Overall, due to the global economic situation, the current diamond market is experiencing a little uncertainty. While white diamonds, with the exception of large high quality stones, are suffering the most, it is in the jewelry sector (which is often the first affected) that a downturn is most apparent. However, Fancy Colored Diamonds continue to do well mainly because they are considered a sound investment.
With fewer investors willing to take the risks inherent in stocks, bonds and cash it is not surprising that a portable investment that maintains value such as colored diamonds are holding their own. A proof to this are the latest results from Christie’s and Sotheby’s that show the growing trend of many investors in purchasing fancy colored diamonds, principally pink, blue and vivid yellow diamonds.
Novel Collection’s booth at the 2012 JCK luxury Las Vegas show
The 17th Annual Las Vegas Antique Jewelry and Watch Show was held in tandem at the Paris Hotel and reported colored diamonds among this year’s hot trend. Counted as a highlight of the event, colored diamonds figured among the most notable sales of the show with the sale of a fancy intense yellow diamond weighing 18-carats from Kazanjian Brothers of Beverly Hills, Calif.
Robert W. Lyons of Kazanjian Bros stated, “We found the mood of this year’s show very upbeat with both new exhibitors and new customers visiting,” adding, “We saw clients not only from the United States, but also from China, Europe, and the Middle East. We found considerable interest in fancy-coloured diamonds, selling a number of stones including an 18-carat fancy intense yellow diamond.”
Although both events enjoyed increased attendance over last year (with Global, attendees from China, Mexico, Australia, India, Malaysia, Brazil and Russia) the general atmosphere was mixed. Amongst the big trends creating a buzz were organic designs of contrasting shapes, with varied cuts and stones, alternative bridal, classic design, versatile and cost effective metals such as Palladium.
In a quote from the JCK show, diamond and jewelry dealer Avnissh Patel of New York-based Sirgold Inc. stated “There has been traffic but buyers are looking for bargains and trying to buy at prices relevant a year or two ago,” adding, “People are worried about China and India slowing and the European crisis is a concern.
In Contrast, attendee of the Paris Hotel event Jorge Chamizo, said, ”We felt that U.S. retailers were back at the buying table and sold a number of pieces in America. We also saw an increase in the number of Asians at the show, which is always nice to see their interest in traveling to buy to the U.S. This was definitely one of the most successful shows we have ever done.”
A gothic band of natural fancy color diamonds on a setting of black gold by Parade designs was the winner of the 2012 JCK Jewelers Choice Awards.
The Hong Kong Jewelry Fair
The excitement continued for Novel Collection with the Hong Kong Jewelry Fair opened its doors June 21,2012 at the Hong Kong Convention and Exhibition Centre (HKCEC). With record 1,793 exhibitors from 36 countries, Fancy color diamonds proved very strong as high demand triggered rising prices.
Taken as a whole it is tricky to know where the market is headed. On one hand, rising prices are a good sign…yet on the other, it makes it harder to buy the right goods on a stable basis.
Novel Collection’s booth at the 2012 Hong Kong Jewelry Fair
Of particular interest to colored diamond investors is the news released from one of the most recognized international diamond investment companies, Elite gems. A news release dated June 13, 2012 should fill most investors with confidence as the company states that the demand for colored diamonds has “Never Been Higher”.
The Chinese are reported to be “flocking in droves” to purchase colored diamonds and with the Hong Kong Jewelry Fair that just ended this weekend…things are about to heat up. Experts are predicting that the number of wealthy individuals looking to purchase colored diamonds (pinks in particular) is going to see a significant increase.
Director of Elite Gems, Ansar Ali, is also pinning some high hopes to the Indonesian Market stating, “Those in the country are also buying strong. Wealthy Indonesians are certainly making their presence felt in the Bangkok and Hong Kong diamond markets. Green, Blue and Pink diamonds seem to be in fashion – and the demand for them is only set to increase”
In explanation of this Ali offers, “Institutional investors from China, Hong Kong and Singapore have now become active players in the color diamond market. They are awash with cash that they HAVE TO invest in relatively safe products. Their shopping lists include pink, red, blue and green diamonds of all sizes and particularly yellow diamonds over 5ct. It’s really becoming a solid trend”
Christie’s celebrated another successful auction as the gavel comes down with colored diamonds reaching high results.
• A 17.57-carat fancy intense yellow diamond ring ($578,500)
• A 6.77-carat Oval cut light pink diamond ring ($506,500)
• A 3.03-carat spectacular blue-grey diamond ring ($302,500)
• The piece de resistance of this lot was a 39.83-carat rectangular cut fancy vivid yellow diamond ring that cashed out at a monstrous $1,426,500