Diamonds Update

Marisa Miller in Victoria Secret’s $3 Million Diamond Bra

2009-10-25T00:04:01-04:00

The showpiece of this year’s Victoria Secret’s annual Fashion Show will be the Harlequin Fantasy Bra, worn by supermodel Marisa Miller. The bra, created by Italian jewelry house Damiani, contains 2,300 white, Champagne and Cognac colored diamonds with a 16 carat heart-shaped brown-yellow diamond pendant dangling in the front. Taking over 800 hours to make and with 150 total carat weight of diamonds, the gold framework and hand-set diamonds are fashioned in a harlequin pattern.

Marisa Miller was on the cover of the 2008 Sports Illustrated Swimsuit Issue, is a model for Victoria’s Secret, and is an ambassador for the American Cancer Society.

The fashion show will be televised by CBS on Tuesday December 1 at 10:00 PM ET/PT.

Check out last year’s fantasy bra blog article:
http://diamonds.blogs.com/diamonds_update/2008/10/5-million-victorias-secret-diamond-bra.html

Big Diamonds Bring Big Dollars

2009-10-23T12:54:02-04:00

While the tough economic times have affected the average diamond shopper, the extremely wealthy shoppers are on a buying spree. At Christie’s jewelry action October 21 in New York, it was as if the recession never happened.

An anonymous buyer purchased a 32.01-carat D color, Internally Flawless, type IIa Asscher cut diamond ring for $7.7, which was almost double the $3 million to $5 million pre-auction estimated value. At $240,000 per carat, the sale set a new world record for a colorless diamond.

The Annenberg Diamond’s previously owner was Leonore “Lee” Anneberg, who died in March at the age of 91. She was the US Chief of protocol in the Reagan administration and was the wife of billionaire publisher Walter Annenberg, who died in 2002.

A 16.33-carat round diamond with E color and Flawless clarity was purchased for $1.6 million ($97,000 per carat) by a private Asian dealer. Other items that sold for more than preliminary estimates included belle époque diamond and rock crystal bow brooch by Cartier (sold for $1.1 million, estimate $200,000 to $300,000) and a Harry Winston emerald and diamond necklace (sold for $950,500, estimate $500,000 to $700,000).

Other big dollar items sold at the auction included a pair of pear pendants with a 7.18-carat Fancy-Blue pear-shaped diamond and an 8.04-carat Fancy Light Pink colored pear-shaped diamond, which sold for $1,426,500. A pair of earrings featuring D color, Internally Flawless pear-shaped diamonds (7.51 carats and 8.18 carats) sold for $1,202,500.

The Christie's auction (October 21 in New York) totaled $46.5 million.

Colored Diamonds on Display in New York City

2009-10-14T21:57:09-04:00

If you live in or are visiting New York City the next few months, you might want to stop by the American Museum of Natural History and get a rare chance to view some exceptional colored diamonds. September 15 was the opening of a new display of in the museum’s Morgan Memorial Hall of Gems.

The collection includes the following diamonds:

An intense-pink brilliant diamond from the Argyle Diamond Mine in Australia set in gold metal mounting with small pink diamonds designed by Carvin French.

A 5.4-carat round brilliant-cut diamond set in a white gold pendant with 20 sapphires, designed in California in 1960.

Five vivid naturally colored diamonds ranging in size from 1.01 to 2.34 carats from the Olympia Diamond Collection, which are on loan from Scarselli Diamonds. The five diamonds are a 1.01-carat vivid orange-yellow diamond (mined in Africa), a 1.02-carat vivid blue-green diamond (mined in Brazil), a 2.17-carat vivid purplish-pink diamond (Argyle Mine in Australia), 2.13-carat vivid blue diamond (mined in Africa), and a 2.34-carat vivid orange diamond (from Africa). The vivid color grade is the highest colored diamond grade given by the GIA (Gemological Institute of America) and these five diamonds are rare because they are completely saturated colors.

Synthetic (laboratory-grown) diamonds from the Boston-based Apollo Diamond Corporation, created using the chemical vapor deposition (CVD) technique. The display shows the stages of growth of CVD diamonds as the diamonds form in gas mixture to a heated chamber containing “seed” material.

Synthetic (laboratory-grown) diamonds from Sarasota, Florida-based Gemesis Corporation, created using the high-pressure, high-temperature (HPHT) technique, which uses large presses to transform carbon material to diamond using compression. The display includes uncut and cut (polished) diamonds, loose and in jewelry.

This special colored diamond display runs until January 2010 and is free with admission to the museum, which is located at Central Park West and 79th Street in Manhattan.

507.55 Carat Diamond Found At Cullinan Mine

2009-09-29T10:20:32-04:00

A 507.55-carat white diamond was recovered September 24 at the Cullinan diamond mine in South Africa. Initial review of the diamond indicated it has exceptionally white color and high clarity. The diamond is currently undergoing expert analysis to document color and clarity grading and to determine if the diamond is Type II (lacking yellow producing trace elements).

The diamond was discovered with three other large diamonds with similar high color and clarity weighing 168.00 carats, 58.50 carats, and 53.30 carats.

Johan Dippenaar, Petra’s Chief Executive Officer noted, “The Cullinan mine has again given the world a spectacularly beautiful and important diamond. Initial indications are that it is of exceptional color and clarity, which suggest extraordinary potential for its polished yield. We now eagerly await the findings of the expert analysis.”

The Cullinan mine is best known as the source of the world’s largest gem diamond ever discovered, which was discovered in 1905, named the “Cullinan,” and weighed 3,106 carats rough. Other famous diamonds sourced at the Cullinan mine include the Golden Jubilee (755 carats rough), the De Beers Centenary (599 carats rough), the Niarchos (426 carats rough), and the Premier Rose (353 carats rough). Cullinan was also the source for some of the world’s largest polished diamonds including the Golden Jubilee (545 carats polished), the Great Star of Africa (530 carats polished), and the famous Taylor-Burton diamond (69 carats polished).

Petra Diamonds Cullinan Consortium who purchased the mine from De Beers in 2007 owns the Cullinan mine. The Cullinan mine is also the world’s primary source of blue diamonds. In May 2009, a fancy vivid blue diamond weighing 7.03 carats (cut from 26.58 carat rough) from the Cullinan mine sold for $9.4 million, the highest price ever paid for a gemstone sold at auction.

Hope Diamond Gets A Fashion Make Over

2009-09-28T22:50:26-04:00

Last week the world’s most famous gemstone, the Hope Diamond, was displayed to the public for the first time in 50 years out of its setting. Housed in the Hall of Geology , Gems and Minerals at the National Museum of Natural History, the Hope Diamond is getting a rare fashion make over.

More than five million visitors a year have viewed the diamond that has been in an ornate setting, sixteen white pear-shaped and cushion-cut diamonds suspended from a chain containing forty-five diamonds.

To observe its 50th year at the museum, the public was able to vote on a new setting for the famous blue diamond. The Hope Diamond will be displayed loose, with no mounting, until next spring when it will be set in a temporary setting called “Enchanting Hope,” a necklace of a ribbon of diamonds with the Hope sitting in a cluster of diamonds in a teardrop shape. The Hope Diamond will be returned to its ornate setting in late 2010.

Diamond Industry Copes with Crisis

2009-09-28T21:43:28-04:00

The past 12 months have been witnessed many forms of economic crisis and the diamond industry was no exception. In past decades when demand for diamonds dropped, De Beers simply stockpiled diamonds to keep supplies and therefore prices stable. However, in recent years the European Union has forbidden monopolistic activities (like stockpiling) and De Beers now only controls 40% of the diamond market compared to over 80% a few years ago so no longer has full control over diamond production. As a result, the diamond industry had to implement new strategies to cope with the economic crisis.

The industry’s main tool was stopping production of diamonds. De Beer’s mines in Botswana, Canada, and Namibia were mostly shut down with only about 10% production in the first quarter of 2009 compared to the same time in 2008. While production is slowly being brought back online, some companies like Harry Winston Diamond Corporation has decided to cancel winter production at their Diavik Diamond Mine in Canada after a summer shutdown and production returning in the fall.

Rio Tinto shut down its Argyle diamond mine in Australia during the first quarter of this year resulting in a production drop for the country of almost 90%.

Alrosa, the Russian diamond producer, continued to produce diamonds but protected prices by having the Russian government purchase and stockpile the diamonds.

Even with the cuts in production, the dramatic drop in demand results in global polished diamond prices dropping 15.7% from August 2008 to August 2009. Most of that drop occurred in the November to February period with prices being stable since May.

The past year produced the largest drop in diamond demand in more than 50 years with the most visible fall out being the weekly reports of bankruptcies in the retail and manufacturing sectors of the diamond industry. Retailers in particular simply could not cut enough costs to compensate for the lack of sales. Retailers and wholesalers who had made money by leveraging purchases of diamonds as the prices were going up suddenly saw their credit lines cut and interest rates rise at the same time their inventories lost 15% or more in value.

What can the diamond industry expect in the months ahead? With the US economy slowly coming out of the recession and demand continuing to grow in China and India, demand should become more stable and head back up. At the same time, many of the large diamond mines are moving from open pit to underground production, which will lower production levels. The economic crisis has also delayed opening of any new mines so global production of diamonds will soon be outpaced by supply again, which means diamond prices will soon return to their historic 3 to 4 percent annual inflation trends. However, the that price inflation will likely see considerably short term fluctuations as the industry continues to react to the more chaotic global financial times.

"Once in a Blue Moon" Diamond Collection

2009-03-03T23:11:47-05:00

For colored diamond lovers, the annual Rio Tinto Argyle Pink Diamond Tender is the highlight of the year. A select number of special pink diamonds are offered for sale and attract top prices from “by invitation only” buyers worldwide.

While it is hard to beat the beauty and rarity of the pink diamond sale, this year might be the exception. Reo Tinto’s Argyle Diamond Mine has announced the upcoming sale of a unique “Once in a Blue Moon” collection of blue diamonds. The collection will be shown to select, invited buyers during viewings in Perth, Hong Kong and Tokyo leading up to final bids closing on April 8.

Josephine Archer, Sales and Marketing Manager for Argyle Pink Diamonds, noted, “We are excited to showcase our first ever collection of precious blue and violet Argyle diamonds, sourced from several years of production at the mine. It is an enchanting collection that will appeal to connoisseurs and collectors alike.”

The “Once in a Blue Moon” collection will include a variety of colors, single cuts, matched pairs, and smaller diamonds. This event will no doubt raise the awareness of blue diamonds worldwide even though only a limited number of people will see the actual collection.

Diamond Industry Production Responds to Global Recession

2009-01-31T00:09:50-05:00

In an effort to keep diamond prices stable while facing a significant decline in demand, the entire diamond industry has shifted from full speed ahead to reverse in terms of production.

The first half of 2008 saw polished diamond prices go up 15% compared the previous year. Diamond mines were implementing expansion plans and there was full employment for cutters, wholesalers, and retailers worldwide.

Starting in July, diamonds started to see the same pressures that commodities like oil were experiencing. Consumer fear, triggered by reduced real estate equity and tightened credit, resulted in reduced luxury purchases and lower demand for diamonds. The inertia of the diamond industry pipeline caused an out of balance between supply and demand with the result being a 11% drop in polished diamond prices during the second half of 2008.

The diamond industry, unlike the oil industry, has low profit margins all the way along the production and wholesale pipeline. If diamond prices drop too quickly, they can quickly bankrupt large segments of the industry. The only way to preserve the viability of the industry is to quickly match supply with demand in an effort to stabilize diamond prices at a level that can sustain the capital-intensive industry.

Diamond prices dropped dramatically in October and November but then flattened out in December. The unrealistic price increases from the first half of 2008 were mostly erased with the result being closer to the historical annual rate of increase (about 3%). Just as the oil price bubble was not sustainable, diamond prices have retreated back to “normal” levels.

The following is brief summary of the actions taken by the diamond industry in response to the falling demand.

DE BEERS
The world’s largest producer, De Beers, is reducing sales of rough diamonds by 50% until April.

ALROSA
Russia’s ZAO Alrosa, the world’s second largest diamond producer, stop selling diamonds to customers in late December. Exploration has been halted at its Catoca mine, which is the fourth-largest diamond mine in the world supplying about 75% of Alrosa’s rough diamonds.

CANADA
Snap Lake mine, owned by De Beers Canada, has planned a total of 10 weeks of shutdown during 2009 with about 430 workers laid off during those weeks.

BHP Billiton’s Ekati mine, remains at full production thanks to a cost reduction program implemented over the previous two months.

Diavik mine, owned by Rio Tinto and Harry Winston Diamonds, implemented a six-month delay in their planned move to underground production.

AUSTRALIA
The Argyle mine, owned by Rio Tinto, has mostly halted the Argyle Underground Project that will enable them to move from surface mining to underground operations. The diamond processing facilities will be shut down for maintenance for at least three months in 2009, reducing output while waiting for worldwide demand to return.

Special Offers: Diamonds and Diamond Rings

2009-01-29T23:35:20-05:00

Some of the best values in beautiful diamonds are on the Special Offers page at Diamond Source of Virginia. Many of these loose diamonds and diamond rings are now at prices hundreds and sometimes thousands of dollars below even the regular low prices at Diamond Source of Virginia. If you are shopping for a diamond or diamond ring, make sure you consider these special values soon.

http://www.diamondsourceva.com/Diamonds/SpecialOffers/SpecialOffers.asp

The following pictures are just a preview of what is currently available.

2.01 carat Round Brilliant Cut diamond graded G color and SI1 clarity in 6-prong platinum mounting.

0.94 carat Asscher Cut diamond ring with H color and VS1 clarity set in a Tacori designer mounting with 0.32 tcw channel-set princess and pave-set round diamonds.

2.01 carat Round Brilliant Cut diamond graded I color and VS1 clarity with 0.96 total carat weight match Pear Shaped Diamonds in three-stone platinum mounting.

1.53 carat Round Brilliant Cut loose diamond graded E color and SI2 clarity.

1.23 carat Princess Cut diamond graded H color and SI1 clarity in a 4-prong Tiffany style 14-karat white gold mounting.

4.02 carat Old Mine Cut loose diamond graded J color and SI1 clarity.

Mickey Mouse Rules of Diamond Shopping

2008-11-10T23:35:07-05:00

Anne brought home this cute figurine this weekend and we commented how much Mickey and Minnie reflect the emotions that occur when diamond shopping. I thought this was a good opportunity to mention some of the diamond shopping rules that are illustrated by Mickey and Minnie.

1) Get input from the one who is going to be wearing the diamond ring. Shopping together like Mickey and Minnie is a good way to communicate. The most important piece of information is what shape she wants. If a girl thinks she might have a proposal in her future, she should do some shopping and determine what shape she likes best on her finger. A subtle comment when shopping can tell the guy what shape and save him a lot of worry and a possible expensive mistake.

2) If the guy is trying to keep the purchase a surprise, they might not know what type of mounting their girlfriend wants. The reality is that she probably does not know yet. Buying a mounting that she does not like or is not comfortable on her finger, can be a very expensive mistake so a good strategy when in doubt is to put the diamond in a simple mounting, propose, and let her help shop for the mounting.

3) A word of caution to guys and gals when shopping. Guys, be careful and understand that just because a girl says something looks nice, does not mean she wants that on her finger. Girls like to shop and often provide a commentary on their “sport.” Not every comment about a ring or diamond should be taken as their ultimate decision. Girls, be careful and understand that your boyfriend is looking for every clue he can get and will take you comments as fact. If you say you really do not need a big diamond, he just might take you at your word.

4) While the beads of sweat on Mickey’s brow might be from apprehension of having to buy a diamond, the usual worry we see in shoppers is the fear of making a mistake. The solution is to do some homework and learn about diamonds and ring. Diamond source of Virginia has excellent education information and shopping advice on their website. You do not have become a gemologist but you should learn the basics.

5) There is something between Mickey and Minnie that you should be wary of and that is the SALE sign. Just because a jewelry store has a sale or the price shows a big discount, does not mean the item is a good value. If you start with inflated prices, the amount of discount is meaningless. Research online retailers to find out what the prices should be and do not pay more than you need to for a beautiful diamond. This advice is especially pertinent if you are shopping out of town while on vacation, on a cruise, or at some “gem show.” Impulse buying is the way shops get tourists to buy something without doing the research they normally would and then are stuck with their purchase when they go home.

6) While there is no way to know what documentation goes with the diamond ring Minnie is pointing to, it is unlikely they will find a GIA graded diamond in a jewelry store. Do not confuse GIA grading, which means it has a Diamond Grading Report from the GIA Laboratory, with someone in the store having taken some classes at the GIA and writing an appraisal or giving an opinion on the quality. Not all grading laboratories are as accurate as the GIA so if a retailer is trying to sell you EGL, IGI, or some other documented diamond, learn about the Certification Game they play.

7) When I see Mickey holding shopping bags, it reminds me that buying an engagement ring often comes at one of the most financially difficult times for a couple. Often the couple is still paying off school loans, has been working but not that many years, and they have to start planning for a wedding and honeymoon as soon as they engaged. Good financial planning and decision making means knowing your budget and seeking the best values possible. The lowest price might not always be the best value, sometimes the cheap price is due to cheap quality.

8) Mickey and Minnie ended up in the office of Diamond Source of Virginia and if you are reading this article, you might be lucky to do the same. If you have any questions, give us a call at 888-477-8385 and we will be happy to assist you. We help clients all over the country every day, many of them who have already purchase somewhere else or are just starting shopping. Since we do not own inventory and search for the best diamonds in the country for our clients, we can tell you the truth and give you unbiased advice. Discover the better way to buy diamonds.