In Singapore the biggest diamond factory in the world
Editing: Dimitris Stamoulis
The company producing artificial laboratory diamonds IIa Technologies has its headquarters in Singapore, recently announced that it has launched the “world’s largest diamond factory.” This is a total factory area of 18,000 square meters.
Company spokesman stressed that the building is designed and constructed in such a way to be energy efficient and commercially viable, while on site will be manufactured colorless diamonds, high quality type IIa.
The company Pure Grown Diamonds, which is headquartered in New York and was previously known as Gemesis Inc. before being renamed last July, is the largest distributor of artificial diamonds IIa Technologies, and both companies are owned by IIA Holdings Group.
The CEO of Pure Grown Diamonds, Lisa Bissell, noted that diamonds of IIa Technologies except that bear no relation to illegal trade that fuels civil wars around the world, offered at a cost that is 30% to 40% lower than with genuine diamonds. He added with a sense that “these diamonds are identical to diamonds mined from the subsurface of the earth the various companies, with the only difference being focused on their point of origin...”
Apart from the larger diamonds plant world, Technologies IIa company revealed that will create and “Centre of Excellence” in Singapore. This is a research center dedicated to diamonds which will aim to further develop the technology and research related to various industries and uses diamonds, beyond the jewelry industry, clock and other luxury goods.
“The investments in Singapore Technologies II creates new opportunities for research on the use of diamonds in high-tech applications such as high-precision cutting tools, quantum computing data storage, optical imaging and radiation detection,” he said the Lim Kok Kiang, the Economic Development Council of Singapore.
The index RapNet Diamond Index (RAPI) shows a decrease of 4.7% in the price of diamonds 1 carat in the third quarter of 2014
Prices of polished diamonds showed decline in last September, as production and processing companies have faced strong pressure due to lack of liquidity and maintaining large stocks. Fixed remains the diamonds from the US demand and China, but buyers face firsthand the consumer reactions to any price increases and just for this, pushing for more and higher discounts on wholesale prices.
The index RapNet Diamond Index (RAPI ™) of the Rapaport diamond 1 carat (classified by laboratories) declined by 1% during September. The RAPI for diamonds 0.30 carat decreased by 1.5%, while the RAPI for diamonds 0.50 carat decreased by only 0.1%. The RAPI for 3 carat diamond fell by 0.7%, while the RAPI for all sizes, fell during the third quarter of 2014, including category from 0.3 carats to 0.49 carats, which was perhaps the most dynamic part the diamond market in the last two years. Overall, the trend of buyers are moving to diamonds larger sizes and lower quality.
According to the monthly bulletin of October 2014 Rapaport, «Buyers’ Market», the prices of polished diamonds were affected by two supply and demand factors.
There was a marked increase in diamond availability to the market as the Gemmological Institute of America (GIA) continues to work through the backlog of diamonds available and offer more products in time for the festive holiday season. Indeed, the diamond trading network Rapaport, RapNet, rose by 11% in terms of volume of diamonds listed on the trading platform during September.
The Hong Kong Jewellery and Gem Fair, the great jewelry and gemstone exhibition of Hong Kong conducted in September, caused the heavy traffic of visitors, but the buyers who are looking for specific product categories in order to meet orders and to avoid major markets stocks. These suppliers have reduced their prices have not experienced particular problems in their sales, making positive. The great Asian report showed that there is good demand for diamonds from .50 to 0.90 carats, but in this category the profit potential is presented lower than other categories. On the other hand, the demand for diamonds category 0.30 to 0.49 carats displays regression points. High quality large diamonds remain generally low demand and generally there was a movement of buying interest from the DF diamonds, IF-VVS, in lower color quality and purity of diamonds in all sizes.
However, suppliers of polished diamonds hoping the fourth quarter of 2014, coinciding with the Christmas period, to improve the image of the international diamond trade and facilitate the adequate financial liquidity. However, estimates of Rapaport show no significant evidence that will lead to market recovery. Buyers feel that suppliers are under pressure to improve cash flow and consequently pushing for higher discounts. After a weak third quarter, trade enters the holiday season in an environment that clearly favors buyers.
The celebrities buy large precious stones, betting on future growth in value
Nissan Perla, next to Gwen Stefani, is known in the world of Hollywood as the “King of Diamonds”.
When the star of hip-hop, Kanye West, ordered the engagement ring of the Kim Kardashian, worth $ 8,000,000, called “bind” more of a huge diamond rare, very special cut. ... The hunt for the rarest, the most perfect diamond, it was not just for show ...
According to the company’s exposure Bain & Co, which was released last year, diamonds seem to have regained their luster. Since 2012, the diamond prices had fallen too, according to the well-known supplier of diamonds, house Rapaport, raising questions about their reputation as a safe and fine “generator of wealth.”
However, Bain & Co provides that between 2017 and 2023, the value of the most valuable of gems will grow annually by 5.1%, and increases rapidly the demand from countries like China, India and the United States, resulting from the improved global economic climate and the GDP of these countries.
The engagement ring of Kanye West Kim Kardashian to bring diamond worth $ 8,000,000.
The king of diamonds
This assessment confirms the Nissan Perla, a veteran of gems with over thirty years of experience, and founder of stones wholesale company Olympic Diamond, known in the world of Hollywood as the “King of Diamonds”. Having as customers from Britney Spears and Beyoncé, as the Kanye West and Kim Kardashian, and by Pharrell as the Elizabeth Taylor, the chief Perla know that all the big celebrities can not help but always demand the best.
It is no coincidence that his company is the main supplier of precious stones of the famous jewelry designer based in New York, Lorraine Schwartz, which in turn, at times, has designed and offers fantastic jewelry, Pharaohs in louder names Hollywood and the international jet set. Mr. Perla the supplying fancy stones mainly from Russia, South Africa and merchants of Antwerp, and that after contact with its customers and meet their desires, designs jewelery.
According to the company’s exposure Bain & Co, diamonds have regained their luster.
Diamonds, the best “friend” of Hollywood
Mr. Perla explains that their success is that it always offers the most exquisite gemstones that the designer and craftsman jeweler, in turn, to create unique pieces. In fact, he gives another dimension to how they think and do the Hollywood stars with at times precious jewelry choose to wear and display the various red carpets. “Contrary to what most people believe, the protagonists of Hollywood choose the jewelry of their choice primarily with investment criteria and less with this sensationalism,” he says.
For argument’s sake, referring to the American singer and producer Pharrell Williams, said: “When Pharrell first started buying diamonds, many other rappers prefer to buy what most impressive and expensive found. However, Pharrell choose only the best. Today, all diamonds are worth much more than the money spent initially in order to obtain them. “
He added and that when Kanye West called him to discuss the stone engagement ring, had already made a thorough research and knew exactly what he wanted and why.
“The Kanye was an expert of diamonds,” said Mr. meaningful. Perla. “He wanted a big pillow cut diamond,” he added.
Mr. Perla had an excellent relationship with Elizabeth Taylor, and had supplied many excellent precious stones. It is characteristic that in the large auction house Christie’s in 2011, when tendered approximately 80 jewelry from the rich collection of the great stars in record price for a private collection, worth $ 115 million, most precious gems had supplied himself in Taylor.
For the last three decades, Mr. Perla conducted wholesale sales of gemstones between New York and Tel Aviv, employing staff who stood up to fifty people, and supplying diamonds leading vendors, such as Cartier, Harry Winston and the the Chow Tai Fook.
Pharrell only choose the best. Today, all diamonds are worth much more than the money spent initially to acquire them.
The platform diamondregistry.com
By sheer luck, made a new turn in the business, five years ago. A close friend, Joseph Schlussel, survivor of the Holocaust, a native of Hungary, died, leaving behind a diamond retailer with 50 years history, the «Diamond Registry». This is a tariff platform and diamond retailers, and inform visitors about new, news, education around diamonds etc. At the request of the widow of Schlussel, to manage the company, Mr. Perla responded positively, and not only kept alive, but managed to develop it further, although more specific information on the course has not been announced.
Today, Nissan Perla is based in Hong Kong, and from there believes that recorded rapid growth in demand for diamonds, especially from Australia, which now holds a share over 50% of the company’s total turnover of Perla.
The importance of trust and good reputation in the industry of diamonds is something that can not be overcome. Mr. Perla states that recently sold a diamond worth two million. Dollars a customer who contacted him online, then contacted by telephone and after seeing the diamond online, sent him the relevant amount of money on the same day!
Mr. Perla had an excellent relationship with Elizabeth Taylor, and had supplied many excellent precious stones.
Insist investment diamonds
Investments in diamonds has proven depreciated on directly, but, at least in recent years, when someone buys the best gems. The last two years, the international diamond prices have declined, according to the house Rapaport, which tracks prices of diamonds. However, for the top 1% of diamonds, sales remain high. Last May the house Harry Winston spent 24 million. Dollars on a ring with a blue colored diamond, 13.22 carat, pear-shaped, called The Blue, the Christie’s auction in Geneva. In the same month, in another auction of Sotheby’s, a yellow diamond of 100 carats was sold for 16 million. Dollars to an anonymous woman.
The other way to guarantee the money you spend to buy gemstones are choosing colored diamonds, as emphasized by experts. The house Rapaport recommends: “Consumers looking for something asynthiisto and excellent, with real value, at a time when low interest continues to drive the wealth to invest in collectibles, quirky objects. In such an environment, the colored diamonds clearly make a difference and have precedence over other proposals. “
Recently the house Harry Winston spent 24 million. Dollars for a ring with blue colored diamond, 13.22 carat, pear-shaped, called The Blue, the Christie’s auction in Geneva
For the moment, indeed, the colored diamond market remains a benchmark sales and upward trend, when other sectors of the diamond industry really characterized by stagnation.
The dealer diamond Alon Garty believes that “in the last eighty years people buy white diamonds, but now prefer something different. Looking colored diamonds, which are rare and offer better chances ROI and realize substantial profits.
Great demand for colored diamonds and rare large stones
Editing: Dimitris Stamoulis
The conditions in the diamond industry seem significantly improved in the dawn of 2014. The first data reveal that during the Christmas season things went better than expected for the diamond trade and the U.S. seems to begin again to move towards a development path. Of course, nobody expects the diamond market to show rapid growth over the next year, but there is a feeling that the traders and jewelry manufacturers will be more aggressive in their movements during the current year, aiming to increase profits and to get a better position.
Of course, things were very different in 2013. Prices of processed diamonds fell for the second consecutive year, and therefore it is logical that both diamond traders and all those involved in the buying and processing field to be cautious.
However, they are also disappointed regarding their profit margins, which have fallen significantly for so long and there is a feeling that they are ready to take on additional risk in order to have higher returns. Although it is impossible to know exactly what will be the trend in the diamond market, it is possible to make some predictions based on current facts and available information. So, let’s take a glimpse of the developments that we expect in the diamond market in 2014.
Prices of rough diamonds and liquidity
The prices of rough diamonds are not expected to increase in 2014, particularly as diamond processing companies seem determined to achieve better profit margins, compared with those of 2013. But this is not going to be so easy because they will have to face the intense pressure that mining companies will put forward.
However, the lack of liquidity resulting from the narrow margins in 2013 and the lower bank credits, will affect more the conservative market of rough diamonds. The ABN Amro bank, one of the largest financiers in the industry, has reduced its funding from 100 % of purchases of rough diamonds to 70 % from January 1, 2014.
In the same direction are expected to move and other financial institutions, such as Indian banks. The result is that manufacturers are left to finance a part of the same market in rough diamonds, leaving them with additional liquidity challenges. Manufacturers and traders should show greater restraint regarding the rough diamond market and refuse to make purchases when prices are unprofitable.
The moves of De Beers
The flagship of the world’s trade in rough diamonds, De Beers, plans to make significant changes to the system of buying diamonds from mining companies. The Diamond Trading Company (DTC), which is a subsidiary company of De Beers, has a network of approved companies called Sightholders which purchase bulk rough diamonds. This list has 93 such companies around the world.
As it seems, De Beers will abolish this system and will give more emphasis on auctions, through which already sells more than 10% of its production. Already, the company has implemented a dynamic sales policy to encourage greater interaction between sales through sightholders and auctions.
De Beers has also introduced ways to ensure long-term production in the auction platform through futures contracts. Few would be surprised if De Beers increased the percentage of production sold at auction next year.
Optimism in Botswana
De Beers has committed to sell the majority of rough diamonds mined in Botswana and for this reason moved its international sales from London to Gaborone, the capital of the African country, since last November. This move came to complete the start of the auctions of rough diamonds from the state company Okavango Diamond Company, which now has access to 13% of the production of the Debswana mining company.
These developments aim at making Gaborone a fixed reference point on the map of rough diamonds. It is, therefore, expected Botswana to develop in 2014, and even some analysts expect exponential increase in the growth of the country. It is estimated that the next step for Botswana is to develop a more dynamic network of distribution and marketing of polished diamonds.
Part of the improved optimism in market comes from increased confidence in the U.S. economy. Unemployment fell to 7% in November 2013, its lowest level in five years, and the consumers’ confidence boosted from the holiday season. Also, the sense regarding diamond and jewelry seems substantially improved.
Wealth has increased as there was an increase in the stock markets that reached at record levels in 2013. The investors saw returns that they would not have seen in the money market, where profitability rates are almost of zero interest. The Central Bank Of USA -FED- has stimulated the economy through the loosening fiscal policy that has implemented, which kept interest rates low, although they are expected soon to follow an upward trend.
The increase in interest rates may affect investors to turn to investment products of lower risk compared to those offered by the stock market , and this estimate is expected to increase interest in investments in large diamonds of high quality. Thus, many analysts speak of an imminent increase in demand in 2014 of round diamonds 2-5 carats, certified D-H, IF-VS.
Large and colored diamonds
Already, the popularity of very large diamonds has made significant rise over the last year. In fact, while demand is variable for commercial polished diamonds during the last five years, however, colored diamonds and rare large stones meet unprecedented growth. The diamond buyers and consumers are looking for something different and unique, while investors have been tempted by the long-term benefit offered by these goods. As a result, most dealers- distributors have entered into specialized areas such as the market of color diamonds.
The estimates show that prices of most rare stones such as pink, bright yellow and blue diamonds have increased by more than 30 % in 2013, while lower quality yellow stones increased by about 10 %. It is no coincidence that the big, special colored diamonds broke many records at auctions.
Of course, no market can be considered immune to ... “bubbles”. But the veteran analysts of the colored diamonds market indicate that the increase in demand and the continuously increasing wealth of some categories of consumers, combined with the rarity of the stones and their limited offer, can guarantee that the prices of these diamonds will continue to trend upwards.
The purchase of diamonds for commercial use remains unstable. The
RapNet Diamond Index (RAPI) for 1 carat certified diamond fell the last two years, while purchases of polished diamonds have become more selective. The round diamonds SI 0,3 to 0.4 carats showed a stability in prices during 2013.
Emerging markets how a less optimistic potential than the U.S.. China continues to implement reforms for the transition from an economy based on public investment to an economy based on consumption. The process, while ultimately expected to be positive for the diamond industry, however, will take some time to implement, and consumers will likely remain relatively modest in the meantime. In the Far East, diamond buyers will remain more selective and prices will experience greater instability.
Similarly, India’s economic growth has slowed down influencing the behavior of local consumers. The government continues to reduce the consumption of gold in an attempt to limit the current account deficit, and perhaps to increase import duties of diamonds.