....Rapaport NewsFlash......April 10, 1998......NewsFlash
News: Cutting centers quiet as dealers take holiday vacation.
U.S. retail sales have also slowed as consumers find prosperity
brings increased tax payments. Russia will open nonprofit dia-
mond trade organization to promote local trade. U.S. retailer
Sterling reports operating profit up 19 percent to $54.5 million
on $557 million in sales. Christie's New York auction sells
$31.43 million (71 percent of lots). 9.12 vivid yellow goes for
$178,235 per carat and 51.04 G VVS1 sells for $32,376 per carat,
but sales of unspectacular fancy colors were disappointing. THE
RAPAPORT DIAMOND REPORT WILL NOT BE PUBLISHED NEXT WEEK, APRIL
17, DUE TO THE JEWISH HOLIDAY OF PASSOVER.
CHRISTIE'S MAGNIFICENT JEWELS
.....At Monday's session diamonds sold selectively and colored
diamonds slowly, although an extraordinary 9.12 carat fancy vivid
yellow diamond did garner $1.63 million. The much talked about
Van Cleef & Arpels invisibly set sapphire and diamond brooch once
owned by Eva Peron sparked an exciting bidding war that rocketed
the price from its $80,000-$120,000 estimate to a final sale
price of $992,000. Tuesday's highlights included a collection of
colored diamonds sold on behalf of the U.S. Customs Department,
which totaled $1.9 million, close to four times the presale esti-
mate. The two-day sale garnered a total of $31,425,240 million
with 65 percent sold by dollar value and 71 percent sold by lot.
.....Sterling, Inc., a subsidiary of Signet group recently re-
ported its 1997 year end results. Signet is a leading specialty
retailer of fine jewelry in both the U.S. and U.K., operating 768
U.S. stores under such names as Kay, J.B. Robinson and Belden
Jewelers. For the full year 1997, ended January 31, 1998, compa-
rable group sales increased 6.9 percent to approximately $557
million. With particularly strong sales in the U.S., operating
profit soared 19 percent to $54.5 million.
.....The Diamond Trade & Precious Stone Association (DTA), New
York's 190 member diamond and gem bourse, after months of negoti-
ation, has officially announced that it will dissolve and join
forces with the New York Diamond Dealers Club (DDC).
.....Little Switzerland, Inc., a leading specialty retailer of
jewelry, crystal and brand name watches has announced a potential
merger with Destination Retail Holdings (DRH). Little Switzerland
operates 24 stores in the Caribbean and three in Alaska. DRH is a
privately owned company operating retail organizations in major
hospitality centers in the Caribbean, the Bahamas and Alaska, in-
cluding Colombian Emeralds International, Diamonds in Paradise
and Jeweler's Warehouse. Little Switzerland's board of directors
approved the merger and now awaits the approval of its stockhold-
ers.
.....According to ALROSA President Vyacheslav Shtyrov, the compa-
ny is keen on expanding its operations in Angola and Namibia. Al-
though representatives from the Russian industry stressed that
the October 1997 contract with De Beers will not be broken, Shty-
rov believes in the two companies' interdependence and will not
back away from opportunities in Africa to ease tension with De
Beers.
.....The Diamond Chamber, a nonprofit organization of Russia's
leading diamond companies, will reportedly be opened by the end
of April 1998. According to Russian news agency, Itar-Tass, the
Chamber, founded in April 1996, will serve as a wholesale diamond
center with consulting, legal, financial, promotional and securi-
ty services. The first transactions of the Chamber will include
only cut diamonds, but the long-term goal is to develop the rough
diamond market in Russia.
.....Authorities in South Africa have reportedly decided to shoot
all pigeons in its Northwest diamond producing area, after learn-
ing that the birds are being used to smuggle gems out of the
country. "Diamonds are leaving the country in a manner which is
extremely worrying," said Manda Msomi, chairman of parliament's
public enterprises committee. "Diamonds are being strapped onto
the body of pigeons and flown out of the country."
.....In an effort to strategically build global market share,
renowned jeweler Harry Winston Inc. announced the appointment of
James Haag to the newly created position of Global Marketing Di-
rector of Retail Sales. Haag has been heading up the De Beers
account at J. Walter Thompson, where he planned and implemented
De Beers' North American Marketing Operations.
.....Australian diamond and gemstone exploration company, Diamond
Rose NL, recently signed an agreement giving U.S. jewelry concern
Clyde Duneier Inc. exclusive rights to market and distribute Dia-
mond Rose's pittado, a semi-precious stone similar in appearance
to jade, in the U.S., Canada and Japan. Duneier, a privately
owned manufacturer and distributor of gold and silver jewelry,
plans to market the pittado products through television shopping
networks and major retail outlets. |
