HOME ABOUT US EDUCATION MEMBER GALLERY OUR AFFILIATES COLORS NEWS/AUCTIONS CONTACT LOGIN/REGISTER AUCTIONS EVENTS NEWS November 17, 2021 | The synthetic diamond problem for fancy colour diamonds Synthetic diamonds are still a ’hot topic debated across the industry and the media. How did they become so prominent, and what caused the sudden rise of synthetic diamonds? Dr. Thomas Hainschwang explores. Man-made diamonds have a long history; the first single crystals (HPHT process) were produced in 1953 by ASEA in Sweden, the first polycrystalline stones (CVD process) in 1952 by the Union Carbide Corporation, USA. The two processes are as follows; : one method, known as HPHT synthesis, sees diamonds ‘grown’ from graphite under high pressure and high temperature (HPHT) conditions (1,300–1,800°C) in a special HPHT press; while CVD synthesis sees diamonds ‘grown’ from a gas phase – typically CH4 (methane) – under vacuum and distinctly lower temperatures (700–1,000°C). Keeping in mind that both processes are well established, what was it that made the existence of synthetic diamonds a problem in the jewellery and gemstone industry only in recent years? Was it due to the misrepresentation of such synthetics, and why did it take until 2015 for synthetic diamonds to gain some traction and recognition? Let’s investigate what caused the change in synthetic diamond standings. Three modified chinese cubic HPHT presses used for the production of synthetic diamond. Although gem quality synthetic diamonds have been around since the 1970s, they have only been commercially available since the late 1980s. Yellow and blue HPHT synthetic diamonds were available at prices well below those of equal colour natural (untreated) diamonds, whereas near-colourless-to-colourless synthetic diamonds were more expensive than natural diamonds. The price difference was because the production of colourless synthetic diamond was difficult, with most material turning yellowish and included. Until 2003 all gem-quality synthetic diamonds were manufactured by the HPHT process, after which the company Apollo Diamonds USA announced the successful growth of single crystal gem-quality synthetic diamonds by the CVD process. Since this process was announced as revolutionary, in that it could produce colourless instead of colour material, this year (** which year?)the year 2003 represents the beginning of the rise of synthetic diamonds, even though it took yet another six nine years before CVD synthetics actually became commercially available. Scio later acquired Apollo Diamonds. In 2010, Gemesis - a company that produced and commercialised colour HPHT synthetic diamonds until then – started to manufacture CVD synthetic diamonds on a larger scale. Therefore, only from 2011 2012 were CVD diamonds actually commercially available through Gemesis, and on a smaller scale through other companies such as Scio (who had acquired Apollo Diamonds), Orion and Soni. However; the overall production was still dwarfed when compared with natural diamonds. Two typical colored HPHT synthetic diamonds as they are available commercially since the late 1980’s. The sample on the left is a high temperature annealed yellow synthetic diamond and the sample on the right is an as-grown type IIb synthetic blue diamond. Meanwhile, the HPHT process remained unable to produce colourless diamonds at prices lower than natural diamonds; besides experimental diamonds mostly produced in Ukraine, there was only one company – AOTC – attempting to commercialise colourless HPHT synthetic diamonds. The author acquired such a diamond in 2014, and which was 15 per cent more expensive than an equal quality natural diamond. Now since the colour diamond market share in volume is miniscule compared to the volume represented by colourless (“white”) diamonds, synthetic diamonds – even though available for decades in yellow and blue shades at prices well below natural diamonds – could not develop a significant market share. It needed momentum, and was triggered by progress that occurred between 2013 and 2014, when the Russian company New Diamond Technology first produced large, perfectly colourless and clean HPHT synthetic diamonds. Dr. Andrei Katrusha was the lead scientist responsible for the synthesis, and the companyhe is likely still the most successful manufacturer of large to very large HPHT synthetic diamonds. New Diamond Technology achieved this because of a newly designed, so-called, ‘cubic HPHT presses’ from China, in combination with improved technology. Following this, synthetic diamonds started to become a real and recognisable problem for the natural diamond market. Today there are numerous manufacturers of synthetic diamonds targeting the global gem market, producing large quantities of CVD and HPHT synthetic diamonds at significantly lower prices than comparable natural diamonds. Most production facilities are in China and India. A 25-carat HPHT synthetic blue diamond crystal, grown by Andrei Katrusha at NDT in 2015/16. While larger single diamonds are a minor problem for the natural diamond market, - these stones are generally certified and easily identified with appropriate testing equipment - , for example; pollution of melee diamond with synthetics became a major and recognised problem in 2015. With everybody focused, and continuing to focus on, colourless melee diamonds, the problem today is particularly significant for melee-sized colour diamonds because, since 2010, practically all parcels of yellow melee diamonds tested by the author contained HPHT synthetic diamonds. In addition, since 2019 most parcels of brown melee diamonds contained CVD synthetic diamonds, and since 2020 grey and salt and pepper (included) diamonds often contain HPHT and CVD diamonds. Interestingly, many dealers of colour melee diamonds, and even some very prominent jewellers using large quantities of fancy colour melee diamonds disregard these facts, claiming that “they know their supplier”.’ This is a risky claim, as guaranteed clean colour melee diamond parcels virtually don’t exist in the current market unless 100 per cent of the stones have been tested by a reputable gem testing laboratory. November 1, 2021 | NCDIA International Diamond Market Snapshot – October 2021 What a fascinating diamond market. As predicted, the diamond trade has rebounded; and rebounded solidly. Yet clearly the world has not yet fully emerged from the terrible clutches of the COVID-19 pandemic. As many countries still try to access and deliver vaccines, the two key diamond consumer markets of the US and China have almost returned to pre-pandemic ways of living and the sales of diamond jewelry have rocketed. The natural rough diamond production is ‘back’ and demand is even stronger. Coming out of the pandemic, producers returned to mining and unearthing product. As the traders and cutters in the middle market have enjoyed good cash flow, healthy balance sheets and improved liquidity, demand and rough sales since Q3 2020 have surged. The major mining companies cannot produce enough product to satisfy demand. Alrosa talks of operating on minimal stocks and is even buying rough from the Russian strategic stockpile at the Gohkran to complement its current production. De Beers also reports “production challenges” as it struggles to meet demand. Prices understandably are rising, and producers are enjoying excellent rough sales and for the ‘non-majors’, this is also great news. Even the more economically marginal mines with high costs and/or lower value productions are benefitting from the rising tide. Rough demand has been relentless for the last 12 months and there is no sign of this abating. As an example, Alrosa has just reported that its rough prices are up 22 per cent year-on-year and up 10 per cent in the last quarter alone. Almost all ranges of diamonds are in demand. Even more surprising is that -3 grainer diamonds (below 0.66-carat) are seeing price increases. This is an area that has long been considered in permanent decline, principally due to the arrival of small lab-created diamonds and yet today prices are firming because there is demand. This is a very healthy situation for the diamond miners and while the market ‘cooled’ a little in September we are just before the key retail season of the year and the market is stronger once again. We can expect excellent results to be reported pretty much across the board for 2021. The large stones bonanza continues from the usual miners; it seems almost a non-event these days when we see reports of 200 or 300-carat stones (or bigger) being discovered. Rough trading and the middle market Who would have thought that a pandemic would have been good news for diamond traders? The middle market (traders and manufacturers), who have long suffered eroding operating margins and pressure from the strong opposing ‘book-ends' of the diamond pipeline (mining companies and retailers), exited the pandemic in robust shape with low stocks and healthy liquidity. Since then, traders and manufacturers have enjoyed a profitable return to strong business activity. The fact that the surge has slightly abated has allowed everyone to take a slight breather. Traders need to keep an eye on the profitability of their purchases and their margins. Polished trading and pricing Of course, the real driver for polished sales is consumer demand, which pulls everything else. Polished demand is extremely strong which has allowed the polished sellers to reduce inventories and rebalance their businesses. Despite the obvious challenges, a JCK trade event took place this year, and feedback was of a successful show, albeit with fewer overseas visitors. Polished prices are up on average 7.7 per cent since January (see graph below). As rough has become more expensive, polished prices need to keep increasing. This is the largest challenge to the industry if we are to see a step-change in the diamond business. Marketing and raising retail price points are the key challenges here. Source: I. Hennig Market Report – October 2021 Diamond jewelry retail The two most important markets, USA and China, are performing extremely well. This is being driven by my predicted ‘emotional rebound’ and surge in diamond jewelry acquisition/gifting post-pandemic. In both markets, the key players are reporting excellent improved sales results. Chow Tai Fook is planning to increase by 2,000 its number of retail stores, in both mainland China as well as through regional expansion into Malaysia and the Philippines. Tiffany & Co. is changing its marketing strategy under LVMH ownership and has even hired Beyonce as its new brand ambassador. Unsurprisingly, online jewelry retail sales have shot up. This trend, which was happening anyway, has been accelerated in the last 18 months by COVID. Expectations for the festive season are very high and growth figures will be impressive. Lab-created diamonds This segment is becoming increasingly important in the industry. Ignoring the issues of inter-segment disputes regarding nomenclature, environmental impacts of mining/production and marketing, it is fair to say that rough lab-created production is definitely increasing. Both De Beers and Diamond Foundry have increased production capacity. Diamond Foundry has recently announced a new production facility in Spain and is aiming for annual production of up to 10 million carats. These are not small numbers; for context, let’s take 2020 natural rough diamond production at 100 million carats; post-pandemic 2021 should be around 120 million). In October the biggest lab-created stone ever graded by IGI was just reported as a 14.6-carat F col VS2. Polished lab-created prices, meanwhile, have taken a big hit; prices are in continuous decline. This means the rough also drops in price. Lab-created prices are expected to fall even further. That said, the lab-created market remains viable due to the extremely low production costs. Increasingly, retailers such as Chow Tai Fook in China are trialing lab-created diamond jewelry ranges. It is arguable that De Beers’ strategy of differentiating natural diamonds from lab-created is working. De Beers is selling larger lab-created stones now and have introduced a “Finest” range for higher-priced product, however; prices remain deliberately low. It is a fact that some cannibalization of the natural segment is going to happen. Indeed, itis happening now as consumers switch from natural to lab-created diamonds, and this is for bigger and bigger sizes too. Watch this space! Fancy Color news The biggest recent development in fancy colors has to be the final Rio Tinto Argyle Pink Tender. The actual results are never published publicly, yet the word on the street is that prices achieved broke all previous records. Source: Rio Tinto Diamonds A notable sale took place this month at Sotheby’s in Hong Kong; this beautiful ring with a 3ct VS1-clarity, type IIb blue diamond and two modified triangular brilliant-cut, fancy-pink and fancy-intense-pink diamonds sold for $4.5m. Ring containing 3.01-carat fancy-vivid-blue and pink side stones - Source: Sotheby’s. Fancy prices across the board are reported by market commentators to have increased during the last quarter – blues the most (+4 per cent), followed by pinks (+3 per cent) and then fancy yellows (+1 per cent). It will be interesting to see how the impressive ring with the 6.75-carat heart shape fancy vivid purple-pink does at the Christie’s Magnificent Jewels sale in November. The pre-sale estimate is US$10.8 million. Source: Chirstie’s Looking forward So…what does all of this mean for the diamond market going forward? For rough diamond production the ‘majors’ are playing a very smart game post-pandemic; keeping the lid on production will see rough prices keep increasing. All miners will benefit from this to such an extent that it might even make less desirable exploration/mining projects viable. Some new productions might appear such as from Luaxe in Angola, yet it is hard to see where any major new supplies will come from. Production is expected to be relatively stable globally for the coming few years. This means that all things being equal, rough prices will only increase further. That signals, good times ahead for diamond miners it seems! For the rough trading and the middle market – always a vibrant, active space in the industry – these are good times. Disciplined buying behavior and careful inventory management should be the buzzwords here. Speculative buying behavior always creeps in, as a natural phenomenon of this part of the pipeline – yet this time I think post-pandemic, we may see more shrewd, and less reckless, buying behavior. Increasing polished prices can also help this. Polished dealers are in good shape these days; the key-trading season is upon us. If the key retail markets perform as expected, polished prices will also have to rise further. In the past, increasing rough prices meant tighter margins for polished sellers. This time around, the rough (and therefore polished) supply is just not there. Time will tell, but the middle market will benefit greatly if polished prices go up. Lab-created diamonds There are a number of important questions regarding the lab-created diamond market. For example, how big is it? Some calculations suggest lab-created is now 5-7 per cent of the market by value, and 10 per cent by pieces, due to the volume of ‘smalls’. Another question is; how quickly is this segment expanding? Growth may slow at some point, but I think lab-created is increasing at around 20% per annum; of course, this number could be much higher if production increases; consumer demand will increase for sure. And finally, what will happen next to lab-created polished prices? All the signs point to further price decreases; De Beers’ strategy is working; strong product differentiation between natural and lab-created could drive prices down by 50% over the next 10 years. This will make lab-created a very cheap alternative to increasingly expensive natural diamonds. Key trends in the diamond industry Sometimes it is easier to look at facts and figures and analyze the industry in terms of pure numbers. It’s also important to consider what changes might be taking place in the industry and trends that might impact the diamond pipeline: Consolidation of miners: there are so few mining projects that logic dictates that there will be consolidation in some form bringing economies of scale and operational synergies to collective diamond projects Revival of old mining projects: this is happening already as there are even fewer new mines on the horizon; supported by increasing rough prices and continued demand The importance of Angola will increase: the prominence of this African county will rise in terms of rough supply; Angola has plenty of untapped resources still; increased foreign investment, greater transparency and security of tenure, improved sales and marketing channels coupled with a rising diamond market all bode well for this nation Declining production: this is an undeniable fact! The world has 2 billion carats of known resources – just think how long this will last at current production levels. Upstream integration: this is becoming more and more common in these times; we see downstream players, at various stages of the pipeline, securing their access to rough supply through new contracts; the mining companies benefit from the greater transparency and get a financial uplift due to sharing the potential upside on the added value of the polished Fancy colors: strong players are dominating access to these goods while cutting out the traditional marketing players Increasing importance of the provenance of new stones versus old diamonds: this is an interesting one! What happens to the older diamonds with no provable provenance? There are a lot of diamonds (many millions in fact) from years bygone with no definite provenance, including many extremely famous stones. We have to wonder how values in the future will diverge between stones. Promoting new stones to the potential detriment of previous diamonds is an issue that needs to be considered. The application of new technologies: across the wider pipeline we see the use of new technologies such as carbon storage in kimberlite in Russia, blockchain, automated polishing, lab-created diamonds- it is happening everywhere! Unexpected reality To conclude, 2021 is shaping up to be an excellent one for the diamond industry. If retail performs as expected, we should kick off next year in robust shape with strong demand, a healthy middle market and continued optimism. Prices look set to increase further. All the usual caveats apply, of course, but with strong business performance and many exciting things happening in the industry, it will be interesting to look back, and comment, in the coming months. ~~ By Robert Bouquet August 10, 2021 | NCDIA International Diamond Market Snapshot – August 2021 What a whirlwind the diamond trade has experienced over the last few months! So much has happened. In this latest NCDIA article, I will try to cover the key events and developments, as well as give some hypotheses on where I think the near-term future of the industry lies. In previous articles, I suggested that once the pandemic was over, we would see a strong rebound in the diamond trade as the resilience of the industry, supported strongly by the policies of the two major diamond producers – De Beers and Alrosa – was evident. Clearly, there is a long road ahead before we can exit the full global effects of COVID-19; while vaccination programmes have rolled out extensively across wealthier nations, progress has been far slower in less developed countries. Yet what we have seen, in terms of a rebound, over the past months has surpassed the predictions of many commentators and industry players. As we enter the summer holiday, the diamond market has been booming, liquidity remains healthy, polished supply is tight, prices are going up, and expectations are high. Business is booming: From mine to retailer Virtually all diamond miners should have enjoyed 2021. Against a backdrop of strong rough demand and consistently increasing rough prices, sales have been extremely strong for all players, irrespective of the type of goods produced. Rough prices have increased in 2021 by anything between 15–40 per cent, depending on the type of goods, the producer, and whether you observe the primary or secondary rough markets. As an example, De Beers has increased prices five times in the past eight months and its overall price book is up by 14 per cent in that same period. Of course, this means that some categories have increased by far more than 14 per cent; the level of premium material on the secondary market for box-trading is another matter though – with such a hot market, boxes are trading at 10-20 per cent above list price. For smaller producers who predominantly sell through tenders and auctions, sale events are fully attended, and rough demand is such that almost everything sells at record prices. Weakness in smaller sizes and brown diamonds remains, but even here demand is better than usual. There are a few miners who are still experiencing difficulties, either because of COVID-driven halts to production, marginal production – which existed pre-COVID – or non-market related issues such as local politics or operational challenges. Overall, though, this is an extraordinary time for diamond miners. How long the market can keep going up at this pace is debatable. We may have peaked, and there are signs of a slight slowdown in the price surge. The summer break will give everyone a breather and we look forward to resuming activities at the end of August. The factors in play So, the rebound is on. But why is it happening with such force? The answer lies in several key factors. Supply constraints – De Beers and Alrosa repeatedly state that they do not have the usual stock levels and are therefore limited in their sales volumes. I think that the more recently adopted strategy of price over volume is being continued – deliberately withholding volumes has been shown to support the market and keep demand strong. There is an element of speculation on expected further rough price increases too. Polished demand – As the world exits the pandemic, luxury sales in the major markets are back with a bang; in a recent report, Bain & Co. noted the surprisingly rapid luxury market recovery, ahead of its earlier predictions. Short-term volatility aside, the future prospects for luxury look excellent. Polished prices are being forced up, firstly by polished demand and secondly by much more expensive rough being now translated into the only available polished. Retail dynamics – Retail adapted to more online sales during the pandemic; this trend is set to continue, and not just as a replacement for bricks-and-mortar, but rather as a complementary sales channel. Sales in the key markets of the US and China have returned strongly to pre-COVID levels, and the major players in both markets are reporting extremely strong returns to business and optimistic forecasts for the near future. However, the real market opportunity for the diamond industry lies in the massive, global emotional outpouring that will follow the eventual return to normal life. Big stones bonanza I cannot write about the diamond market without mentioning the mass of large stones that are being reported on a consistent, almost weekly basis – mega ‘rocks’ are seemingly pouring out of the mines. Adoption of new technologies in the diamond recovery process – crushers, X-ray technology – means that previously broken large stones are now being recovered whole. As an industry insider, it almost feels like too many large stones! It’s strange to say, perhaps, but we have never seen so many large diamonds produced and publicised. Yes, production will decline in the future, but right now we are in the middle of what I call a ‘big stones bonanza’. In the past, hearing about a 300-carat stone was major news; now, that is almost a weekly event. These days we get news releases talking about stones above 1,000 carats – yes, really. This trend could easily continue for another 10 years. Careful marketing of such stones will be to avoid a significant decline in prices. Although mega rocks for the masses might not be on the cards, it is a large number of exceptional stones for the world market to absorb. Here are some highlights of the recent finds: Lucara (Karowe Mine, Botswana) - 1,175-carat clivage stone Image credit: Lucara Diamond Corporation This is the third stone Lucara has produced weighing over 1,000 carats; in fact, there were several other large stones recovered with it, and the assumption is that, unbroken, the stone was actually over 2,000 carats! Quite extraordinary. De Beers (Jwaneng Mine, Botswana) – 1,098-carat Type IIa Image credit: De Beers What Lucara can do, so can De Beers –and just after Lucara announced the 1,174-carat stone, this beautiful diamond was discovered at the world-class, tier-one Jwaneng Mine in Botswana. Fancy Colour News It has been an exceptional period for fancy colours, both in terms of rough diamond recoveries/sales and polished sales. Where to start? An outstanding stone was recovered by Petra Diamonds at the Cullinan Mine in South Africa; a 39-carat Type IIb blue diamond. It must be said this is one of the most beautiful, rarest and most valuable stones in the world. The rough stone was sold by tender and purchased by a consortium of De Beers and Diacore for $40.2 million – more than $1 million per carat. We wait excitedly for the unveiling of the polished stone in due course. Image credit: Petra Diamonds It is an astonishing stone that sold for an astonishing price, but the transaction is worthy of note in itself. De Beers previously owned the Cullinan Mine which has long been known as the main source of blues in the world, and of course large Type IIa white stones. Despite the recent mega rocks from Debswana and Lucara, Cullinan still holds the record for the largest-ever diamond produced. De Beers sold the mine to Petra in 2007, and the irony is not lost that De Beers now buys stones from its former mine in partnership with Diacore. This begs the question – why? We are seeing a new form of upstream sourcing of fancy colours by a non-traditional player with extremely deep pockets. This is not the first time they have done this with Petra blues; in December of last year, De Beers and Diacore purchased five others – also for just over $40 million. De Beers is the only diamond mining company that is also a diamond retailer at the consumer level, while Diacore has its own trading channels and long-standing experience polishing Cullinan blues. I think this perhaps heralds a change in the trading of special fancy colour stones, where the traditional traders are no longer in the game and this market is now cornered by De Beers and the like, and the stones have a new route to market. I could be wrong. Time will tell. Meanwhile, just before writing this article, news broke of the recovery of four exceptional fancy pink diamonds from Lucara’s Karowe Mine in Botswana. The largest stone weighs a massive 62.7 carats and is the biggest pink ever officially recovered in Botswana. Three other stones – 22.21 carats, 11.17 carats and 5.05 carats) were recovered along with the main stone. They were probably all part of one bigger original stone that was broken during recovery. The colour in the photo is not confirmed, but regardless this is nothing short of an exceptional discovery. Congratulations once again to the team at Lucara. Image credit: Lucara Diamond Corporation And there are plenty more incredible fancy colour stones being unearthed. Namakwa Diamonds recovered the 21.86-carat Pink Palesa diamond at its Kao Mine in Lesotho (pictured below). Image credit: Namakwa Diamonds And of course, I should mention the final Rio Tinto Argyle Pink Diamond Tender, which is due to close in September. This is the end of the road for Rio and its pink production, but not the end of the market for pink diamonds, as already old stones are being re-marketed to capture the strong demand for these iconic fancy coloured stones. This year’s leading ‘hero’ stone, as Rio Tinto likes to call them, is a 3.47-carat fancy intense pink radiant cut (below centre). Image credit: Rio Tinto Finally, the 204-carat fancy intense yellow cushion modified brilliant cut, from the Diavik Mine in Canada and name the Dancing Sun, was sold at Christie’s to Diacore for $4.95 million Image credit: Diavik Mine Other industry updates Alrosa’s 2021 production is forecast to reach 31.5 million carats The Ellendale Mine in Australia has a new owner and will resume mining; the mine produces a high proportion of fancy yellow stones Global rough production (Kimberley Process figures) for 2021 were $9.24 billionn (-32%), 107 million carats (-23%), and $86 per carat (-12%) On and off COVID-19 restrictions in India are disrupting the polished supply chain The Gemological Institute of America (GIA)’s turnaround time in India has also slowed due to COVID-19 issues Moët Hennessy Louis Vuitton (LVMH)’s jewellery sales figures have been boosted by the inclusion of sales from the recently-acquired Tiffany & Co. Signet Jewelers – the largest operator of jewellery retail chains in the US – is very upbeat, predicting full year revenue of $6.14 billionn (an increase of 17%) In Mainland China, diamond jewellery retail is booming with positive results from the major chains Hong Kong sales are suffering from a lack of tourism due to COVID-19 travel restrictions In an industry first, a 101-carat D IF pear shape was sold at auction and paid for by an anonymous bidder with Bitcoin cryptocurrency valued at the equivalent of $12.3 million Diamond Foundry raised $200 million in April to increase its lab-created diamond production to 5 million carats per year Pandora has moved into lab-created diamond jewellery with a new collection The GIA has noted an increased level of undisclosed/misrepresented lab-created diamonds Disputes continue between natural diamond marketers and the lab-created diamond trade over consumer messaging Concluding thoughts In summary, the diamond industry has had a very successful first half of 2021. Will it continue? In my opinion, yes. The consumer demand rebound has not yet peaked globally and the key Christmas season should be very strong. Once COVID-19 eases, we will see another surge in diamond sales and increasing demand as the emotional reaction to the trauma of the pandemic should translate into significant diamond acquisition and gifting. This all points to further increasing polished prices. A little less exuberance in rough purchasing would be sensible, but the rough market often has a life of its own! Overall, the indications for the diamond market are extremely positive. I look forward to commenting further later in the year. ~~ By Robert Bouquet July 20, 2021 | NCDIA's new Education Director The Natural Color Diamond Association is proud to announce that Dr. Thomas Hainschwang is our new Education Director. Thomas is a leading research scientist who has advanced the knowledge of natural and manmade gemstones and in particular fancy color diamonds. With 25 years of scientific focus, Thomas will share his observations to help our trade better communicate with our clients. As a laboratory director of GGTL Laboratories Liechtenstein he offers unique objective interpretations for greater insight into the rarest of gemstones. Our affiliation with Thomas continues our goal to create the most beneficial and transparent resource for serious natural color diamond traders and collectors. We are looking forward to a fruitful collaboration with Thomas. July 14, 2021 | Argyle Pink Breaks Records at Public Tender A rare 2-carat Argyle diamond fetched AUD 2.2 million ($1.6 million) at the first public tender of pinks originating from the mine, setting an Australian record. The fancy-purplish-pink stone, called the Fitzpatrick Pink, was expected to garner between AUD 1.5 million and AUD 2.5 million ($1.1 million and $1.9 million), Yourdiamonds.com, the sale’s organizer, said Wednesday. The Fitzpatrick Pink was one of 37 pink diamonds offered at the tender, most of which were acquired from Argyle 20 years ago or more. CLICK HERE to find out more.. July 14, 2021 | Lucara Filled with ‘Joy’ at Recovery of 63ct. Pink Lucara Diamond Corp. has unearthed four fancy-pink diamonds from its Karowe mine in Botswana, the largest of which weighs a whopping 62.7 carats. The type IIa diamond, which the miner named Boitumelo — meaning “joy” in the local Setswana language — came from the high-value EM/PK(S) portion of Karowe’s south lobe, Lucara said Tuesday. Boitumelo is the largest fancy-pink diamond to be recovered in Botswana and one of the largest rough pink diamonds in the world, the company said. CLICK HERE to read the article.. July 14, 2021 | Petra Sells Blue Diamond to De Beers for $40M De Beers has made its second big-money rough purchase from Petra Diamonds in less than a year, snapping up a 39.34-carat, blue stone for more than $40 million. READ MORE... June 25, 2021 | The Discovery of ‘The Pink Palesa' Namakwa Diamonds & Storm Mountain Diamonds are delighted to announce the discovery and upcoming sale of ‘The Pink Palesa' in Antwerp with Bonas Group. The Palesa - derived from the local Sesotho word for ‘flower’ - is a beautiful 21.86ct natural pink diamond, recovered on 18th May 2021 at the KAO diamond mine in the Kingdom of Lesotho. It will make its way to Antwerp to be offered for sale during KAO's next sale KAO-2104. Namakwa Diamonds owns and operates the KAO mine through Storm Mountain Diamonds; the mine is well-known for its pink and fancy coloured diamonds such as the Rose of KAO, the Pink Dawn and the Purple Princess. KAO remains one of the world’s few sources of natural pink diamonds; the Pink Palesa therefore presents a unique and increasingly rare opportunity. More details can be found on https://bonasgroup.com and https://stormmountaindiamonds.com Viewings for KAO-2104 will take place in Antwerp from 12 – 23 July 2021 June 15, 2021 | Jeweller Magazine Feature Article on Fancy Color Diamonds June 2, 2021 | American Museum Of Natural History to Reopen Gem & Mineral Exhibit on June 12th THE AMERICAN MUSEUM OF NATURAL HISTORY’S NEW GEM HALL WILL CAUSE “JAWS TO DROP” When people think of the American Museum of Natural History (AMNH) in New York City, they tend to think of dinosaurs. But the museum also houses an impressive collection of thousands of gems—some of which date back even further than the brontosaurus... CLICK HERE TO READ THE ARTICLE by Rob Bates, JCK Magazine April 26, 2021 | Jeweller Magazine - FEATURE STORIES, DIAMONDS, PINK DIAMONDS FROM BIRTH TO TIMELESS LEGACY: THE COMPLETE STORY OF ARGYLE PINK DIAMONDS AS THE ERA OF THE ARGYLE MINE DRAWS TO A CLOSE, ARABELLA RODEN EXPLORES THE COMPELLING HISTORY AND ENDURING LEGACY OF THE WORLD’S PREMIER SOURCE OF PINK DIAMONDS. CLICK HERE to read the complete article.... April 7, 2021 | NCDIA International Diamond Market Snapshot – March 2021 THIS IS MY FIRST NCDIA DIAMOND MARKET COMMENTARY FOR 2021.. Despite the fact that most of the world is still distracted by the battle to defeat the pandemic, the general sentiment in the diamond market remains positive; indeed, since last September the diamond middle market has actually recovered and performed strongly. Volumes of rough sales and polished demand have been healthy enough to allow a strong resumption of commercial activity throughout the diamond pipeline. What happened with Covid-19 during 2020 meant that the industry effectively shut down, but a rebound was always likely to happen. And this is exactly what has happened recently. Rough and the middle market Rough producers got back to mining and selling both their latest rough productions as well as some of their accumulated stocks. Even most of the marginal diamond producers were able to restart sales again. The shortfall in polished supply from 2020 meant that gaps in polished inventory were evident and demand for rough diamonds surged. Dubai has enjoyed recently a strong window of opportunity, as global travel restrictions meant that Indian buyers headed to nearby Dubai to view goods at various sales events. Large stone diamond mine recoveries from the usual suspects continue to be reported. Big stones have been unearthed recently in Botswana, Angola, South Africa and Russia. The majors have noticeably changed strategy since Q3 of 2020; volumes of sales are up, and rough prices have been increased in each of the last 3 sales cycles. As always, a measured approach is considered sensible, and especially now - so as not to undo the success of the very restrained business approach taken during 2020. That restraint of 2020 of course meant significantly reduced turnover and cashflow for the majors, and it was inevitable that large volumes of goods would start to flow as soon as the trading and manufacturing centres reopened. Factories in Surat are now operating once again at full capacity. In March, however, it was already apparent that the rough market was softening. So now is the time for caution. Other developments include a reduced Sightholder (contracted client) list for De Beers and lower allocations to trading companies, with greater emphasis placed on analysing the polished output from the rough allocations. The industry often works in a cyclical fashion, as we have seen this desire to sell to more direct manufacturers in the past. My own experience over the years is that traders provide liquidity and perform a necessary role in certain market conditions. Time will tell if this proves to be the case once again in the future. There is no doubt that greater efficiencies in route to market, as well as through the application of technology, and a natural attrition will take place at some point. I just wonder if now the time is right to encourage these developments. We shall see! Another interesting development of late is the increased upstream sourcing of rough diamonds from certain manufacturers, agreeing to share some of the polished upside in selling value for exclusive access to high-end rough. Despite this, clearly most of the world is not yet free of the concerns and troubles of the Covid-19 pandemic. Some retail markets have re-opened, but I think it is premature to claim we are back on the levels of the pre-pandemic world. The signs though are positive for a healthy and sustained recovery once the global vaccination roll-out gathers more pace. If nothing else, the middle market (supported by the strategies of the major diamond producers) has shown its resilience and ability to bounce back. Fancy colours continue to make industry headlines. De Beers actually bought into a partnership on the 5 blue stones from Petra’s Cullinan mine (ironically an old De Beers mine of the past) in South Africa. Breaking news – as this article was written….Petra has just recovered another magnificent blue diamond from the Cullinan mine; this time it is a 39.34ct type IIb blue diamond. The Cullinan mine is the best source of blue diamonds on the planet. Source: Petra Diamonds Ltd; 39.34ct blue recovered on April 1st 2021 at the Cullinan mine in S. Africa. Of course, now that the Argyle mine in Australia is closed, the supply of their special pinks has ceased. This will logically have a longer-term impact on pink pricing. Global rough production is forecast to remain relatively static at around 100m carats per annuum for the next decade (this compares with 150mcts mined in 2015). As always, production between individual mines and producer companies/countries will fluctuate though. Angola looks to have very favourable rough diamond production growth potential, with high quality diamonds and plenty of hitherto untapped reserves. Polished markets / retail Polished prices in 2021 strengthened as demand recommenced. Retails sales in China and the US improved over the last 6 months. The balance between demand and supply is considered by many to be at its healthiest for several years, and sentiment for the future is positive. Source: I. Hennig & Co - Market Report February 2021 In the US, retail growth continues despite the pandemic – those retailers with strong e-commerce offerings have seen (unsurprisingly in this moment) significant upswings in online sales. For example, Signet saw a 61% year-on-year sales surge. Other news - LVMH finally concluded its drawn out purchase of iconic jewellery brand Tiffany & Co. Fancy Colour news As always there is good exposure in the press for fancy colour stones. Upcoming events of note are the two Christie’s Magnificent Jewels auctions - April in New York – with 3 individual 2ct vivid stones -a blue, an orange and a pink…. The trio of jewels, called the Perfect Palette, will each be offered as a separate lot at the April 13 sale ….and May in Hong Kong – with the stunning 15.81ct Sakura Diamond (estimated at a whopping $25-38m) – a fancy-vivid-purple-pink, internally flawless, type IIa stone. Source: diamonds.net - The 15.81-carat Sakura Diamond Looking forward The most recent Bain & Co report suggests that a full recovery of the diamond supply chain will only happen sometime between 2022-2024, led first by China, then the US and, later, India. These three key retail markets have long been considered the future growth engines for diamond jewellery demand. As things stand, Bain predicts that diamond jewellery demand is set to grow at 2-3% per annum between 2023-2030. Lab grown is clearly set to continue its rapid growth; the expansion into more and more retail outlets continue; for me, as I have stated before, I am comfortable with lab grown entering the diamond jewellery space – with proper disclosure and no contamination of product the two products should be able to co-exist into the future; we all know that natural diamond reserves are finite. But more on that later…. Conclusion So, we are not globally out of the woods yet with regards to the pandemic, but once we are things should stabilise and improve further. Trade wars, global political tensions and other unforeseen challenges aside, the potential for the industry remains and its recent performance has demonstrated clearly its resilience to withstand unparalleled challenges. The long-term potential of the industry remains robust – supply will decline in the longer-term and demand should in relative terms increase. Natural diamonds will have another growth opportunity in the future. Short-term, though, a careful balance is required and the levers of sensible supply levels, pricing by the majors, appropriate purchasing behaviour and polished stock levels by the trade need to be managed to maintain the positive momentum that we have seen and enjoyed during the last six months. By Robert Bouquet March 10, 2021 | New Member Profile: Ishaia Gol, Ishaia Gol is a 45-year veteran of the diamond and jewelry industry. He and his older brother David Gol, are true pioneers and connoisseurs of fancy color diamonds. With David in Geneva and Ishaia in New York, they have established a world-renowned following, emerging in today’s market as one of the leading resources to major jewelers and collectors. From the sublime to the extraordinary, the gems and jewelry are a reflection of the philosophy of achieving and delivering the maximum beauty of each singular gem and the jewel that highlights it as the main priority of their mission. Through this mindset, Ishaia Trading Corp. has gained the following of color diamond affionados worldwide. Ishaia continues the tradition of seeking creative perfection, while sourcing and providing the most beautiful gems. February 24, 2021 | Press Release: IGI to Certify Rare Pink Diamonds from Australia’s Argyle Mine For more information visit: www.collectorseditionpink.com December 16, 2020 | Natural-Colored Diamonds Shine - By Laurie Kahle BLUE, PINK, AND YELLOW MAY BE THE BEST-KNOWN FANCY (PURE) COLORS, BUT DIAMONDS ARE FORMED IN A FULL SPECTRUM OF HUES INCORPORATING MULTIPLE COLORS WITH VARYING INTENSITY... Click Here to read the full article December 9, 2020 | ARGYLE: FILLING THE HOLE - Rapaport Magazine - December 2020 THE CLOSURE OF THE FAMED RIO TINTO MINE MARKS THE END OF AN ERA, BUT HOW WILL THE LACK OF A CONSISTENT PINK SUPPLY AFFECT THE NATURAL COLORED-DIAMOND INDUSTRY? BY LEAH MEIROVICH November 16, 2020 | NCDIA International Diamond Market Snapshot – November 2020 WELL, 2020 HAS BEEN EVENTFUL, TO SAY THE LEAST – WHAT STATE IS THE DIAMOND INDUSTRY NOW? A semblance of normality returned to the diamond industry in September and October, only for the world to be knocked back by another brutal onset of the Covid-19 pandemic in Europe. Rough diamond sales started to move once more, as the main producers reported decent sales levels in Q3. Despite the second wave hitting Europe, the diamond market is showing remarkable resilience and agility in how it operates right now. Of course, news of the first vaccine being close to regulatory approval gives enormous hope to the world that there is a strong possibility of an eventual return to life as we once knew it. But, not yet. Rough and the middle market De Beers and Alrosa continue to show flexibility and reason in their respective sales policies, allowing deferrals (mainly in smaller goods) and reduced buying levels. Smaller producers have continued selling and are generating cashflows, albeit at slightly lower levels than January. But the cash is flowing, and the market feels somewhat resilient, stable and ready for better times. De Beers sales for Sight 8 were reported at $467m ($334m for Sight 7), and the just-concluded Sight 9 is estimated, by market insider contacts, to be around $415m. The trading centres are operating, despite travel restrictions limiting overseas buyers’ ability to move. Smartly, the producers have started to move closer to the clients as we now see increased appetite for sales in Dubai (conveniently closer to India and with direct flights from Surat) and other centres. New alliances are being forged as the industry adapts to the current situation imposed on us all by the pandemic. Whether the industry returns to the previous, traditional structure once life returns to normal remains to be seen. I have my doubts. New efficiencies to the benefit of the pipeline should logically continue. Parallels can, in some respects, be drawn with the global financial crisis of 2008-9 with regards to trading paralysis. However, the 2009 rebound of the industry pretty much brought it back to a pre-crash modus. This time, the hiatus caused by Covid and the subsequent structural changes may be more permanent. So - where are we now? Rough is flowing, the major producers have taken a big hit this year, lesser producers forged their own individual tactics driven by a hitherto unseen cocktail of health and safety concerns, operational requirements, cashflow needs and other individual challenges. Some fallout is evident in litigation between certain explorers and their partners, or between producer partners. And yet, it should be stated again – industry resilience is in evidence. Liquidity and stock levels in the middle market are reported as healthy. Large stones keep coming, and fancy colours are in the news The recovery of very large stones continues to be reported. At the time of writing this market report, Lucara just announced the recovery of a whopping 998ct gem (reported as high clivage [medium] quality and white in colour). Fancy colours continue to make the headlines too. After being shown in Antwerp and Hong Kong, the Petra blue stones (5 exceptional, large blue rough stones, as reported in my last editorial) are currently on their way to New York for viewings by prospective bidders. Results are due on 24th November. Rio Tinto’s penultimate Argyle Pinks tender is also in progress. Always outperforming the market due to their unique colour, despite being very small stones, these stones look set to smash all records as the mine has now officially ceased production. Bids close on December 2nd. The future for prices of pink diamonds looks robust. I think that there is an opportunity here for another producer to take over the mantel as the world’s leading supplier of pinks; perhaps Alrosa of Russia. The exquisite 14.83ct “The Spirit of the Rose”, a fancy vivid purple-pink mined by Alrosa in Yakutia, Russia, sold for $26.6m at a Sotheby’s Geneva auction. “The Spirit of the Rose” – 14.83ct fancy vivid purple-pink Copyright: Sotheby’s As well as the purple-pink, a 28.88ct rectangular step-cut fancy vivid yellow at Christie’s Geneva was sold at auction for $3.1m 28.88ct fancy vivid yellow Copyright: Christie’s Geneva Polished and retail Polished prices in many areas are strengthening (except in melee and +3ct weaker makes) due to decent demand and a genuine shortage of certain goods, and the wholesale markets are busy filling orders for the festive season. Clearly online sales are in the ascendancy and we can expect this to continue exponentially. The LVMH acquisition is back on, albeit at a lower price - and the deal should be concluded in early 2021 subject to regulatory and shareholder approvals. Lab-grown diamond production is being expanded and this remains an appealing market for many players due to the high margins at all stages of the pipeline. The longer-term evolution of the story of lab-grown diamonds remains to be seen. My own personal feeling is that a two-tier parallel market will evolve and settle before cannibalisation starts to take place over time. It may not be a popular view for some. Conclusion Macro issues such as global politics, a new US President, international trade tensions and economics will no doubt have their various impacts along the way, but I sense a great opportunity for diamond industry marketeers to re-capture and re-establish the emotional essence and mystique of diamonds in the consumer’s mindset and generate a significant rebound for diamond jewellery purchases/gifting as the pandemic eventually subsides. As an aside, Bain is preparing its next industry report. It will be interesting to see what they say about where they believe that our industry is going. Considering that we are still in the middle of such a traumatic global pandemic that has paralysed so much of the world – and let’s be honest, though vaccines may well be coming, we are very far from being out of the woods yet – the diamond industry has shown extraordinary depth of resourcefulness and resilience. When better times return, we should be well placed for greater business success. - By Robert Bouquet November 3, 2020 | New York’s American Museum of Natural History Sets Open Date for Its New Gem, Mineral Halls Brecken Branstrator from the National Jeweler reports, that the American Museum of Natural has set a date for opening its renovated gem and mineral halls. The museum’s new Allison and Roberto Mignone Halls of Gems and Minerals are slated to open Feb. 17, 2021. CLICK HERE to read further... September 29, 2020 | NCDIA International Diamond Market Snapshot – September 2020 GREEN SHOOTS ARE APPARENT; NOW IS THE TIME FOR A CAUTIOUS AND SUSTAINED RECOVERY After such a challenging and stressful last six months for the diamond industry, the first signs of a recovery in the diamond market are now in evidence and the industry is breathing its first collective sigh of relief. It was always going to happen eventually, and yet, despite the improvement in sentiment and activity, the huge uncertainty of what comes next remains. Now what is required is a gentle hand on the tiller to ensure that we do not overshoot on the resumption of trade. The volume and pricing tactics of the two majors will be critical; their strategy over the last six months has worked, albeit at a significant cost to them both in terms of financial performance. De Beers has just announced its sales results for the last two sights ($116m and $320m respectively) - better than many had predicted. Dropping prices in the 4 grainers and up had the desired effect and caught a positive tailwind driven by a combination of reduced cutting centre stocks, factories reopening in India and increased demand for polished in advance of the key festive season. Alrosa also dropped its prices and saw an improvement in sales. The Antwerp diamond district is noticeably busier, and tenders are better attended. Prices achieved at various tender and auction events have recovered to around 5% below pre-Covid levels. Large stone and fancy colour recoveries continue to make the headlines, with Gem Diamonds discovering several 100ct+ type IIa gems and Petra Diamonds unearthing five exceptional type IIb blue stones ranging from 9 carats to 25 carats from the historic Cullinan Mine in South Africa (all within one week!). Copyright: Petra Diamonds Ltd; five exceptional type IIb blue stones recovered in one week. One tender house, Hennig Tenders, will be offering for sale in September a 45 carat exceptional pink stone along with a selection of 18 other pinks above 5 carats, all from Angola. Copyright: I Hennig & Co Ltd; 45 carat pink stone from Angola. Junior miners who struggled even before the pandemic see an opportunity now to try to revive themselves. An example is Stornoway with its Renard mine in Quebec, Canada. Refinanced and reopening it will recommence production, as well as sell a 300kct stock it accumulated previously. Other juniors are trying to refinance and emerge from the ashes. The situation remains fragile and several mines were struggling pre-pandemic. Therefore, I do not foresee a sudden dramatic improvement in their fates, but they may survive given the right market movements. The imminent closure of Argyle mine in Australia will help the market, yet it is too early to say that a new equilibrium has been formed. And so, the market for rough right now is strong as manufacturing in India is back to 70% capacity, orders for polished need to be filled and gaps in the supply in better goods are evident. The middle market has had an injection of profitability and is back in action. The Diwali break in manufacturing in India will be reduced to 10 days this year to capitalise on the polished demand and shortages of stock. Miners are also looking creatively at alternative ways to show their productions to the trade in various cutting centres as travel restrictions persist. If the industry benefits from a strong retail festive season, the recovery could well be sustained into 2021, which would be very welcome to the trade - but of course, it remains a careful balancing act as the rough market does tend to overheat. Sensible pricing and volume by the majors combined with sensible buying by the middle market is required. We shall see what happens in the coming months. Polished and retail On the polished front, prices have firmed due to lack of availability after such reduced manufacturing activity. Demand is back and a positive sentiment prevails. Well-made goods, especially fancy shapes, seem to be the order of the day. Hard to move, slow-moving poorly made articles remain out of favour and can only be sold at larger discounts, if at all. Rio Tinto has begun its annual Argyle tender of special pinks, with its headline stone a 2.24ct fancy-vivid-purplish-pink round, named by the miner Argyle Eternity. Bidding is expected to be fierce for these small but exceptional stones, as this is the penultimate sale as the mine draws to a close. Once the mine has been shuttered at year-end, a final sale of the very last exceptional Argyle pink polished is scheduled for 2021. Copyright: Rio Tinto Diamonds; the “hero” stones of the Argyle Pink Tender 2020 GIA recently announced a review of its Antwerp operation and will either scale back significantly or close the whole operation. An announcement is expected soon. Auction houses are embracing digital sales events in this new era, with Sotheby’s now holding weekly online sales. Tiffany and LVMH are locked in a legal battle as LVMH attempts to exit its planned acquisition of the iconic US jewellery brand. Diamond jewellery retail appears to be back on track as sales in mainland China strengthen and US retailers report better than expected results. The shift to online sales is clearly going to continue as buying habits evolve. So, a good key season (Thanksgiving and Christmas in the US, followed by Chinese New Year) would be just the tonic for the industry and give us the ideal launchpad into 2021. Cautious optimism prevails; we know we are not out of the woods yet, but the green shoots of recovery are there. The industry remains resilient and will prove itself once again. Once this pandemic is truly over, normality will return, and much happier times await. Demand for diamonds will endure as the ultimate symbol of love. - By Robert Bouquet August 20, 2020 | Press Release: Robert Bouquet joins the NCDIA Team PRESS RELEASE: August 13th, 2020 Contact: office@ncdia.com The Natural Color Diamond Association is proud to introduce the newest member of our team, Robert Bouquet. Robert will be reporting on the diamond market and how the pipeline connectivity affects all aspects of the jewelry industry including natural color diamonds. Roberts’ experience and intuitive opinions will give insight into the global natural diamond trade and will provide information for greater transparency and movement of the ever changing cycles of supply and demand. Alan Bronstein President, The Natural Color Diamond Association Robert Bouquet has worked in the diamond space for over 25 years. He has developed a deep knowledge of the global diamond pipeline and key producer strategies. He has worked for two major diamond producers, diamond marketing companies, developed diamond exploration companies and performed a variety of industry-related consultancy projects across the globe. Based in Antwerp, Robert will share his views on how the diamond trade is performing with his unique insight and perspective. NCDIA International Diamond Market Snapshot – August 2020 Introduction: At the beginning of 2020, and after a difficult year for the industry, there were positive signs of an improved diamond market and optimism prevailed. Very few could have predicted what was about to hit the world and very few can now be unaware of the impact of Covid-19 on us all. There are of course parallels that can be drawn with the financial crisis of 2008-9 and its impact on the global diamond industry; yet the human, social and economic costs will remain in our collective memory once the pandemic is no longer with us. Of course, once the pandemic has ceased, there will remain multiple other challenges to the future prosperity of our industry in terms of what seems to geopolitical tensions, trade wars, social uprisings and macro and micro-economic shocks. Today we remain in the eye of the storm and the diamond industry has little choice but to take remedial action and wait for these tragic external events to pass. The industry will rebound in due course although perhaps in rather different shape. From a supply and middle-market perspective we are seeing a sharp contraction which will only be reversed once jewellery demand calls for it; the irony is that the industry will emerge in healthier shape, despite the difficulties it will have to endure in order to get there. For this inaugural editorial, on behalf of the NCDIA and its members, we focus on the rough diamond space within the pipeline and look at some key developments over the year so far: Exploration & Mining: It has been an unprecedented year for mining houses so far. Q1 began in decent shape as sales were healthy and there was cautious optimism for a better year; all eyes were on the majors to see how they handled the volumes into the market. As Covid-19 hit, the market effectively shut down firstly in Hong Kong and China, but then across Europe, the US and critically India, the main diamond polishing centre. Exploration efforts, which these days are already very much reduced in scope, have been hampered significantly in diamond countries due to local and international lockdowns. All diamond mining companies have taken significant hits in 2020. The 2 majors, De Beers and Alrosa have adopted similar policies of holding firm on prices and accepting deferrals in purchases by their clients while reducing production for 2020 (DB -7mcts and Alrosa -6mcts) to limit the significant accumulation of rough stocks. The result of these policies will mean drastically reduced sales for 2020 and poor financial results. Alrosa has the benefit of being able to sell excess production to Gohkran in times of need and will probably do so shortly. De Beers recently announced impending layoffs across the group and the greater application of technology to streamline its businesses and improve operational efficiencies. The smaller producers have also suffered. Some have shut up shop and put their mines on care and maintenance (such as Stornoway’s Renard mine and Dominion’s Ekati mine both in Canada, Lucapa’s Mothae project in Lesotho) to ride out the storm. Others have reduced production or sold into the smaller demand that exists at prices of 15-30% lower than January (pre-pandemic). If De Beers or Alorsa had chosen to lower their prices the smaller producers would have fared even worse. What is also a new feature is the increase of online, remote (blind) sales due to travel restrictions and the switch to greater use of technology will likely continue going forward. Financial weakness and the burden of excessive, unserviceable debt is putting several producers on the brink of collapse, and while this is sad to observe, the reduction in supply will be a necessary factor in allowing the industry to restart once better times return. It has been well documented that Argyle mine in Australia will close at the end of the year, resulting in 12-14mcts less production of small, low quality and brown stones and of course the fabulous pink production that is unique to this source. I predict that production for 2020 will be drastically reduced, down to around 100mcts (from 130mcts in 2019). All eyes are on the next 2 quarters to see how the market recovers, and for the diamond miners it cannot come soon enough. Many stakeholders are uttering expectations of a Q3 rebound, but nobody really knows what is around the corner, and we all wait with baited breath. It is not all bad news though; large stone recoveries have continued in 2020 including another mega rock from Lucara in Botswana (549ct stone) and several large stones from Gem Diamonds’ Letseng mine in Lesotho. 549ct gem quality stone recovered from Lucara’s Karowe mine in Botswana Copyright: Lucara Diamonds Rough Market/Trading: What began as a positive year, rapidly dissolved with the onset of the pandemic in March. The trade effectively closed and has not reopened yet. Minimal sight goods from either De Beers or Alrosa are being bought at present, so the trade is focussed on smaller parcels of supply and very much on a “needs only” basis. Trading halls have closed, then reopened and closed again as fears of a second wave increase. Critically the key manufacturing centre of India closed in April and the GJEPC has urged that rough sourcing either be stopped entirely or only occur where absolutely necessary. The same thing happened during the 2008-9 global financial crisis when India banned imports of rough for a month. Everyone is extremely cautious about buying rough and simply put: there is very little demand right now. Factories have now reopened but are operating at greatly reduced capacity and employing social distancing procedures strictly or they face closure. The market has had the worst 5 months on record. In Antwerp alone, it was reported that over 1000 jobs have been lost in the diamond district. And yet, a recovery will happen when the world reopens. Polished supply will eventually dry up, especially with such limited manufacturing taking place in 2020, and demand will return. Small signs of demand for rough in the trade is already becoming apparent and polished prices seem to be firming due to shortages of certain articles. The industry will recover - and a consolidated, leaner and more efficient middle market will emerge. Bain forecasts that luxury market will contract by 20-35% in 2020 Noticeable switch to adoption of technology to assist jewellery sales globally, with focus on digital channels and online sales Major auction houses holding online jewellery sales events with good success and increasingly higher value jewellery items Marketing focus shifting to capture the expected emotional consumer rebound and the opportunity for diamond jewellery sales Signs of recovery in luxury sales in China (but not Hong Kong) and US to a lesser degree - BY ROBERT BOUQUET July 16, 2020 | The Natural Color Diamond Association forms International Coalition of Ambassadors The Natural Color Diamond Association is expanding it’s presence and influence on the international market. Most organizations like ours are searching for ways to move forward after the impact of the world economies’ shutting down due to the pandemic. Like other leading groups we must re-envision our roles and our necessity viz-a-viz the needs of consumers and our industry members as we position ourselves in the new world order. Our philosophy, transparency, education and collaborations with our sister trade groups, labs, and the media gives us the ability and strength to provide the service and the right knowledge and information about natural color diamonds. In our effort to show a vision of leadership for the future of the most extraordinary natural gemstones, the Natural Color Diamond Association is proud to announce that we are building a “United Nations” of ambassadors in strategic locations around the world to promote the desire, the beauty and passion that natural color diamonds create. Alan Bronstein President, The Natural Color Diamond Association __________________________________________________________________________________ EPHRAIM ZION Ephraim Zion is one of the original pioneers in natural color diamonds. Beginning as a diamond cutter in Israel at 14 years old, he moved to New York for bigger challenges and opportunities. The turning point in his career was the move to Hong Kong in 1971, which was already the center for jewelry gemstone trading of Asia. Ephraim’s passion was inherited by his two sons who are now an integral part of the growth and innovation of the company. Today, the Dehres brand holds a most prestigious role as one of the foremost high-end jewelry manufacturers in the world. Dehres has been a leader in trading natural color diamonds for the last 50 years. Ephraim has also held the prestigious position as a governor at the GIA from 2008 -2017. This role is only offered to the industry leaders with the highest integrity and trade accomplishments. The Natural Color Diamond Association is proud to have Ephraim Zion as our Ambassador representing us in Hong Kong and Asia. He is a valuable asset to our goal of promoting the allure of our magical gemstones. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ JOHN GLAJZ John Glajz began working as a managing director for fine jeweler Mondial Jewelers of Singapore at the early age of 25. John expanded his operations to create innovative concepts for the trade in Singapore and South East Asia. In the 1990’s John became more involved with the emerging market of natural color diamonds. While mentors cultivated his curiosity, the Argyle Pink Diamonds became the focus of his designs and projects. In 2004 John launched his Glajz brand to design unique jewelry and use exotic gemstones. John has been an Argyle partner and together have participated in one of a kind projects. The Natural Color Diamond Association is proud to have John Glajz as our Ambassador and advocate based in Singapore. His experience and passion will help to spread our message. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ MATTHEW ALDRIDGE The Natural Color Diamond Association is pleased to announce that our member, Matthew Aldridge will be our Ambassador based in Geneva, Switzerland. Mathew is a second-generation connoisseur who was mentored and taught by his father. The company was started by his father Patrick, 55 years ago. Matthew, like many second-generation traders saw the untapped potential through his passion and intuition of the evolving gem trade. Gemcut began as traders of colored stones and extraordinary secondhand jewels. It evolved into trading natural color diamonds and eventual hit its stride in the early 1990’s, when Mathew was captivated by the extraordinary richness of the Argyle Pink diamonds and became an authorized distributor with the Argyle mine. With a long history of buying and selling some of the most unique and historic diamonds in the world, Mathew brings a wealth of prestige, integrity and passion to the NCDIA as our Ambassador and spokesperson in Switzerland. We are fortunate to have his participation as our representative. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ MARCO POCATERRA We are happy to announce that we have appointed Marco Pocaterra to be the Ambassador for the Natural Color Diamond Association for Italy. Marco is based in Milan and has deep knowledge of his home country. "Italy is the cradle of the arts of culture, of beauty and taste. From my experience, Italy remains fertile for education and sales of fancy natural color diamonds. Having spoken to many jewelers across Italy, they still lack knowledge, experience and accessibility of natural fancy colors. Thus, their beauty and desirability are strongly underexposed to the public. The consequence is that Italian Jewelers do not create revenues with these extraordinary and incomparable gems. I am committed to help them inspire their customers and take the opportunity to have new attractive sales conversations." Marco has spent the last 40 years working as an executive director in leading corporate banking, financial, insurance and real estate institutions. As an eclectic professional he also had experiences in the medical sector. Marco has a deep experience of natural diamonds, which he acquired by working at the top of the industry, being adviser and partner with some leading international diamond companies since more than twenty years. First a friend, he also shares my personal enthusiasm for the esthetics and allure of natural colors. His strong belief and demonstrated passion for our industry makes him an individual who inspires others. He will be a strong advocate for developing our visibility in Italy. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Mr. Yves Frey (Yves Frey Diamonds) remains our Ambassador in London, England and Mr. Henry Ho (Chairman of AIGS, Thailand) in Bangkok, Thailand. They continue as our spokespersons and add to our international prestige. June 15, 2020 | Opinion: A Bright Future Ahead Alan Bronstein, President of Natural Color Diamond Association says, "As people seek personal connections and ethical products, the natural diamond industry has a lot to offer" in his recent column on Diamonds.Net READ MORE..... April 30, 2020 | Brown Diamonds, a new in-depth look at their properties and classification by Dr. Thomas Hainschwang For those of you who missed out on Thomas Hainschwang's speech which covered Brown Diamonds, during the 4th AIGS Gem Tips program. Here is your chance to view it again. Dr. Thomas Hainschwang is Director and co-founder of GGTL Laboratories (GGTL Laboratories Liechtenstein, formerly Gemlab Liechtenstein, founded in 1996). Dr. Hainschwang has been working on the analysis of diamonds, coloured stones and pearls for the past 23 years, and is a respected expert in the field of gemmological research, with extensive experience in the complex topic of coloured diamond. CLICK HERE Brown diamonds are – together with yellow diamonds – among the most common diamonds in the market. They are currently more affordable than most other fancy colour diamonds, with exception of cloudy grey and black diamonds, but the market asks more and more for brown diamonds, which might give the value and appreciation of such diamonds a boost in the years to come. This study is a continuation of the work of the author, who has done research on the topic of the classification of brown diamonds for his DUG diploma from 2002 to 2003. Brown diamonds can be categorised in two very broad categories, into those owing their colour to defects related to plastic deformation, and those that do not owe their colour to plastic deformation. The extensive work done on brown diamonds since then and particularly for this study has allowed us to get a much deeper insight into this large and complex group of diamonds, and to elaborate a more detailed modified classification of brown diamonds than the one published between 2003 and 2004. November 26, 2019 | FINDING PEACE UNDER PRESSURE: A CLOSE UP LOOK AT THE NEW BUTTERFLY OF PEACE Butterfly of Peace, now on display in the Cullen Hall of Gems & Minerals - Houston Museum of Natural Science With their bright, fluttering wings and airy flight, butterflies are revered in cultures all over the world as beacons of hope and peace. It’s one of the many reasons we love the Cockrell Butterfly Center; the peaceful thrum of the butterflies creates a tranquil, tropical oasis. Now, a new piece on loan from Alan Bronstein brings that same spirit to the Cullen Hall of Gems and Minerals. Read More... October 10, 2019 | Jewellery Magazine Article on Investment Diamonds Please read Jewellery Magazine Article on Investment Diamonds relating to natural color diamonds. NCDIA President Alan Bronstein and Yseult de Crombrugghe, Langerman Diamonds, also NCDIA member are quoted. September 3, 2019 | Alan Bronstein to represent NCDIA at the French Gemological Symposium on Diamonds 18th Paris Gemmological Rendez Vous on September 9th. The French Association of Gemmology has released speaker lineup for its 18th Paris Gemmological Rendez Vous symposium, and it includes some of the diamond industry’s heaviest hitters. The event is slated for Sept. 9 at L’Asiem on the city’s Rue Albert de Lapparent. It will cover diamond mining news, the current state of the market and colored diamonds, as well as the scientific, gemological and historic features of natural diamonds. Speakers include Alan Bronstein, president of the Natural Color Diamond Association; Martin Rapaport, chairman of Rapaport Group; Richard Duffy, CEO of Petra Diamonds; and Stéphane Fischler, president of the World Diamond Council. It also will feature the following: --Aurélien Delaunay, director of the French Laboratory of Gemmology; --David Fisher, principal scientist at De Beers Technology; --Peter Karakchiev, head of the International Relations Department at Alrosa; --Jim Pounds, executive vice president, diamonds at Dominion Diamond Mines; --Eddy Vleeschdraeger, director at the Scientific and Technical Research Center for Diamonds and author of “Hardness 10;” and --Feriel Zerouki, senior vice president of international relations and ethical initiatives at De Beers. Didier Giard, president of the French Association of Gemmology, will moderate the symposium. “This year’s symposium will be taking a comprehensive look at diamonds,” Giard said. “During a period of many challenges to the natural diamond industries, including synthetics and a volatile international market, we are very proud to host such distinguished members of the diamond industry. “They will be giving us their considered views, backed by years of experience, on the diamond industry from many different angles.” The one-day event will run from 9:15 a.m. to 6 p.m. Seven presentations will be in English and three in French, so the association will have a constant English-French translation all day. August 30, 2019 | NCDIA Signs Membership Agreements NCDIA signs membership agreements with: American Gem Society - Retail Firms Jewelers Vigilance Committee National Association of Jewelry Appraisers Over the last months we have been working on developing relationships with other trade organizations with the aim of opening doors and building bridges for our members, ultimately leading to a robust interactive business relationship. So It is with great pleasure we announce that we have signed and executed NCDIA membership agreements with: American Gem Society The Natural Color Diamond Association is proud to announce collaboration with The American Gem Society’s retail firms. This gives NCDIA members the opportunity to promote and showcase their products through the NCDIA website to AGS members. National Association of Jewelry Appraisers The Natural Color Diamond Association is proud to announce collaboration with The National Association of Jewelry Appraisers which will assist in locating a local appraiser access for trade and retail sales. NAJA consists of approximately 1000 appraiser/retailers who cumulatively appraise a majority of the gems and jewelry at specialty retail across the country. Jewelers Vigilance Committee The Natural Color Diamond Association is proud to announce collaboration with The Jewelers Vigilance Committee which is the legal body that advises the industry on the protocols that are part of all our responsibilities as we do business with natural gemstones and precious metals. While the JVC is an industry body, our relationship opens up our members to a stronger connection for response and advice. We work with many different people, cutters, traders, suppliers, designers, appraisers, (pick a description) but we all contribute and interact in the gem and jewelry industry. NCDIA members can now interact with the members of all 3 associations. July 15, 2019 | Tiffany Stevens and the Important Work of The Jewelers Vigilance Committee by Alan Bronstein I first met Tiffany Stevens as she took the leadership position at the JVC. Tiffany began her work in this field just 2 years ago and has proven to be a great arbiter on behalf of the jewelry industry. With a strong team of lawyers and advisers for support, their daunting job is keeping up with endless updates and challenges that face jewelers and their suppliers. This trade organization is a vital component and guardian for the legal aspects that must be adhered to by all members of the gem and jewelry industry. We have to meet certain standards set by the law, and government for trading of the most precious of objects we buy and sell. The JVC and their hard work are vital to help us understand the pitfalls of unethical and non-transparent players that could damage our whole industry and consumer confidence. I asked Tiffany how she came to this role and the challenges she faces trying to steer us toward best practices and a successful business model. 1. What attracted you to the jewelry trade as a legal expert? The jewelry industry is a fascinating intersection of art, science, business and global trade--I was very attracted to each of these areas and the way they overlap in our industry. The way I found the job was kismet, I was on the verge of accepting another offer in philanthropy, but fate is fate and here I am! 2. How do you feel about your support team and your first 2 years of job and progress? It's been a lot of work and a lot of fun to spend time getting to know the industry, the personalities and the issues and the ways we can help all of those in the trade we serve these first couple of years. The JVC has a wonderful base of support in our members, that continues to grow. So many in the industry across the world have welcomed me into the trade and shown me the challenges they deal with day to day. By chance the new FTC guides have come out, we've also seen enforcement around the guides (neither of these things have happened in decades). We've also had some major lawsuits and Supreme Court cases that impact our industry along with lots of other regulatory things here in the US and abroad that impact us all. So it's been an intense time to enter the industry on the legal side of things. I'm happy with the ways we've been able to support industry in being compliant with all the laws that apply to our industry and to help their bottom lines thrive, which is the point. 3. Is the JVC something everyone in trade should interact with ? Absolutely. We can help all of those along the supply chain from retailers, wholesalers, gem dealers, labs, designers, everybody has different needs and we have something for everyone and can help your business. We work with AML, Intellectual Property, the FTC guides which tell us how we can advertise jewelry online and in print, employment matters, sales tax, and a host of other issues. And we are benefitting the entire trade in our interactions with government entities here and abroad. One example is we also monitor the trademark register and oppose any trademarks that have been applied for that would be a land grab and hurt others in industry. We also contact those in industry that are not in compliance with advertising regulations to educate them on changing their advertising. We also are active in multiple international groups around the world and represent our US industry around the world and can provide information on what's happening globally, because everyone in the world loves, wears and buys and sells jewelry! 4. What are the biggest challenges for trade and do you have some strategy to reach your goals? Capturing people's attention is a 2019 problem. We have a very rich amount of substance to share to the benefit of your business. Several of us from the JVC are on the road almost constantly to educate 1:1 as well as webinars and partnerships. We'll be launching more broadly on social media this year to reach even more people and we are cooking up some fun ways to get the information you need across easily and at your convenience. Another larger concern is the increased attention and coming regulation/policy from the US government around sourcing of goods. We are on notice, as an industry that we need to do more to ensure we are not trading in goods that could be supporting malign regimes. This applies to both precious metals and stones and finished goods. The immediate move to make to protect your business is to make sure you have an Anti Money Laundering program set up and that if you have one, it's been tested within the past year. The JVC can help with this either 1:1 or by providing a DIY kit. We are also developing another option. But I want to emphasize that having an AML program is already required by federal law for most in the trade, the IRS could show up at any time to enforce (and they do this!) or your bank could demand to see your program or close your account. July 10, 2019 | The Inspiration of Gail Brett Levine and The Vital Work of The National Association of Jewelry Appraisers by Alan Bronstein I first met Gail and her husband Howard Rubin 20 years ago when they came to my office to show me their grading methodology for analyzing and appraising natural color gemstones, including natural color diamonds. Pioneers in developing tools for communication and analysis by visual comparisons, they both were ahead of their time. Today, Gail leads the largest appraising organization for gems and jewelry in the world and besides teaching and leading educational forums, she is on multiple committees within the gem and jewelry trade. Gail’s journey and accomplishments are an inspiration for anyone to reach for the stars and achieve success beyond expectations by hard work, due diligence and integrity. This is her story. What led you into appraising gems and jewelry? My ex-husband, Joe Levine, and I had an antique & coin shop in Alexandria Virginia in the 1970s. While he was already proficient in coins and medals, my knowledge of antiques was abysmal. I was an escaped accountant and this shop offered an opportunity to stretched and grow into an area that I had very little knowledge. I was an Army brat and every two years we moved to a new location. If it didn't fit into the container, it had to be left behind. So here was my chance to have beautiful things combined with the power of temporary ownership and placing them in new homes. I started out in furniture, glass and china. Then silver and jewelry took over. Following on the heels of a divorce, my daughter and I moved to New York so that I could go to GIA. Eunice Miles, the heart of GIA, found my passion as the North American appraiser for H. Stern Jewelers. Being a jewelry appraiser was an extension of seven column paper as an accountant - symbiotic! How did you build your organization into the biggest in the world and what keeps attracting more members to your group? I worked my way up the appraisal organization ladder at the International Society of Appraisers (ISA) - first as Chair of Gems and Jewelry then completed as the first woman President of a major appraisal organization. ISA was my stepping stone to the National Association of Jewelry Appraisers (NAJA). James Jolliff was the second Executive Director of NAJA and in 2004 he selected me to be the next Executive Director. He left me a rich legacy of conferences, a home study appraisal course, and a devoted membership who embraced me as their new leader. Howard Rubin - husband, colleague, appraiser and inventor of GemDialogue - and I worked shoulder to shoulder to make a seamless transition while planning for the future of NAJA. He was my rock and confidant and he brought his endless mindfulness of what the appraisal professional and professional gemologist appraiser members needed not just for the present but what the future would bring. What do you see as the goals you would like to fulfill as you go forward with your methodology? With the infinite assistance of Dave Atlas, long standing Associate Director of NAJA and Chair of Ethical Issues and Deborah J. Finleon, Associate Director and Chair of Education, we are creating a forward thinking organization that not only incorporates the ethics and values passed down to from previous leadership but also to create 21st century sensibilities more notably converting the hard copy Appraisal Studies Course to an online platform. Each of the twice a year conferences offers fresh presenters on valuable insights and information in the shifting technology of the jewelry industry. April 18, 2019 | NCDIA Las Vegas - Seminar Series The Natural Color Diamond Association presents: Diamonds from Canada’s Arctic Circle. Our esteemed panelists: Jim Pounds, Executive Vice President, Diamonds – Dominion Diamond Mines Reid Mackie, Vice President – Mountain Province Diamonds Moderated by Rob Bates, Senior Editor, JCK Magazine Natural diamonds come from many areas of the earth. Canadian diamonds from the Arctic Circle are the focus of this presentation. Consumers are starting to pay more attention to countries of origin, and the unique stories natural diamonds bring to the excitement of the gemstone. As directors from 2 of Canada’s most successful miners, Jim Pounds and Reid Mackie and will have a unique perspective on the positive allure and story telling for retailers to provide their clients the value of diamonds from the earth. If you want to have the insight to communicate the truth about natural diamonds,you won’t want to miss this presentation. WHERE & WHEN: The Showcase Stage, JCK Show Floor, Level 2, Saturday, June 1, 3:00- 3:45 PM Sincerely, Alan Bronstein, President of Natural Color Diamond Association 580 5th Ave, New York, NY 10036 office@ncdia.com April 15, 2019 | INSIDE THE FACINATING WORLD OF NATURAL COLOR DIAMONDS By Arabella Roden When it comes to selling colour diamonds, the best advice to retailers is simple – lead with your heart, writes ARABELLA RODEN There’s no denying the beauty of natural colour diamonds; even technical descriptions like ‘vivid’, ‘intense’ and ‘fancy’ are as vibrant as the stones themselves. Their power to capture the imagination and create emotional connection is unparalleled in the gemmological world – and speaks to the very heart of the retail jewellery industry. Unlike colourless (‘white’) diamonds, which have an intrinsic, quantifiable value based on standardised characteristics and a fairly uniform supply, colour diamonds are far more mercurial. Trends are difficult to predict and can be more easily influenced by supply and demand, and whimsical outside factors like clever marketing and celebrity trendsetters. Crucially, different colours offer different opportunities for retailers. Here, Jeweller investigates the factors driving the demand for natural colour diamonds, and the best ways retailers can take advantage of this underserved and frequently misunderstood market category. READ THE WHOLE ARTICLE - (Alan Bronstein, President of NCDIA and Michael Neuman, (Past Board Member) Mondial Pink Diamond Atelier are quoted extensively in this article! March 18, 2019 | Nature’s Miracle Diamonds from the Letseng Diamond Mine in Lesotho Nature’s Miracle Diamonds from the Letseng Diamond Mine in Lesotho An Interview with Gem Diamonds CEO- Clifford Elphick By Alan Bronstein for Natural Color Diamond Association In the landlocked Southern African Kingdom of Lesotho lies a diamond mine of untold riches. The Letseng Diamond Mine has become one of the most important resources for special diamonds. And while it is not famous for its fancy color discovery, it is still, a potential force for extraordinary specimens. Opened in 1957 by De Beers, it was closed for unprofitable results in the 1980’s. The production phenomenon of The Letseng Mine took off in 2006 when the mine was purchased by Gem Diamonds and the Kingdom of Lesotho. Any purchase of an already existing mine is a tremendous risk, as the assumption is made that the mine is not cost efficient or profitable going further. Cliiford Elphick who formed Gem Diamonds in 2005, was prescient when he partnered with the country and took the chance for extending the life and improving the profitability of the mine. I had the privilege to discuss the highlights of his experiences during the last 13 years of working the now famous mine. While colored diamonds are not the major extraction surprise, there is no lack of wonderful works of art coming out of Letseng. Letseng is not known for its pink diamonds, but a special pink is the focus of this conversation and is the highlight of the moment. Mr. Elphick has had a most exciting run of the mine during his leadership so his willingness to share is a wonderful treat. Clifford explains, “I had a feeling that we had stumbled on to a great resource when shortly after we purchased the mine (one month to be exact) we extracted a 603 carat D color rough that was the largest stone ever found from the mine. We named it “The Lesotho Promise”. It felt like a good luck sign, that it was the right decision to buy the mine and we were going to be successful. I still remember the feeling of being completely overwhelmed when I heard the news of the amazing find. Since then we have found many more huge specimens as we have modified our mining techniques in order to improve large diamond recovery and limit breakage of the supersized diamonds. From time to time we have had the surprise of a beautiful natural color diamond. The purplish pink diamond we just discovered is certainly the most extraordinary. The combination of its size (13.33 carats) which is large for such a pink stone, the integrity of the shape and how it lends itself to a strong yield as a polished diamond and the choice of shapes to carve. But what makes this stone so special is the saturation of the color in the rough. Such a deep saturation is almost never seen in a pink diamond of this size ( the largest pink rough extracted from the Argyle Mine which accounts for 90% of all pink diamonds was 12 carats) and this is what makes this particular diamond so special. We have had other fancy colors in pink, blue, yellow, green and brown that have been larger in the rough but none of them approach the exceptional color of the 13.33 carat. I am aware that the final value lies in the cut stone, I have a special feeling when I see the forms that nature has created in the rough. It is as exciting as realizing the final gem that is lying inside. In general, when most fancy color diamonds are cut, the color is magnified by the removal of the skin and the shaping of the stone to reflect more color from the top of the stone. The 13.33 carat is naturally so concentrated in color that adding the brilliance and fire of the ultimate cut gemstone can only make this one of the most beautiful pink diamonds available. I have never seen such a color in rough this size and I hope the there are many more surprises waiting in the ground of The Letseng Mine. We are also extremely proud of our business that created community benefits, jobs, health and education for the people of Lesotho” For those who are interested, here are some of the other major finds from 2006-present that Letseng has yielded. 910ct Lesotho Legend recovered in 2018 (fifth largest gem quality diamond ever recovered) 603ct Lesotho Promise recovered in 2006 601ct Lesotho Brown recovered in 1967 550ct Letšeng Star recovered in 2011 493ct Letšeng Legacy recovered in 2007 478ct Light of Letšeng recovered in 2008 357ct Letšeng Dynasty recovered in 2015 314ct Letšeng Destiny recovered in 2015 12.49ct blue diamond which sold for US$603 047 per carat in 2013 7.87ct pink which sold for US$202 022 per carat in 2017 2.79ct blue which sold for US$199 199 per carat in 2011 11.78ct pink which sold for US$187 700 per carat in 2016 11.59ct pink which sold for US$186 943 per carat in 2012 In 2011, a 28.37ct pink and 30.68ct pink was recovered which sold for US$4 million each A 299ct yellow diamond was sold for US$4.25 million in 2015 Thank you Clifford for sharing your experiences and stories of The Letseng Diamond Mine. Cliiford Elphick , CEO Gem Diamonds (The stone was sold on Wednesday, March 13th for 8.8 million.) March 18, 2019 | Canada’s Diavik Mine Yields Extraordinary Canada’s Diavik Mine Yields Extraordinary 522 Carat Rough Diamond By Alan Bronstein Courtesy of Dominion Diamond Mines The process by which nature forms a diamond is specific, complicated and rare. Natural diamonds were created in a few specific locations around the world based on the geological forces taking place inside our planet billions of years ago. Geologists estimate that earth’s diamonds formed in the ground 1-3 billion years ago, with diamonds from the Northwest Territories in Canada being the oldest ones. This is very early in the formation of our planet, which is estimated to be 4 billion years old. Different localities where diamonds are extracted from the ground seem to produce specific colors (more or less) that are distinctive to a locality. For example, the pink color of diamonds from the Argyle Mine in Australia is the signature color of that mine, which has everything to do with the geological conditions and age of their coalescence. The unique condition when the pressure and temperature are conducive for carbon atoms to be attracted to each other like magnets, exist as long as the growth conditions stay within specific parameters. Fluctuations in these parameters are rapid. As long as conditions are constant, the diamond will continue to grow in the earth. During this process, other elements are sometimes caught in the carbon matrix and distortions from subtle changes during growth will lead to the endless colors that a diamond can become. Thus different varieties of pinks and virtually all colors can be found everywhere diamonds are mined, including Canada, Africa and Russia. The Diavik Mine in Canada’s Northwest Territories has had a different geological history of diamond creation. Canada has kimberlites around the Arctic Circle, which have formed approximately 3 billion years ago. The conditions when our earth was still forming have been conducive to the production of mostly white crystals in this part of our planet. However, the rare colored diamonds that have come to the surface, are often more than a pleasant surprise. The Diavik Mine, which is co-owned by Dominion Diamond Mines and Rio Tinto, and is located at the edge of the Arctic Circle, recently unearthed a spectacular diamond for the history books. At 552 carats, it is the largest rough diamond ever to be found in North America and also the largest with a yellow hue. I had the pleasure of speaking to James Pounds, Executive Vice President of Dominion Diamond Mines and head of the diamond division to share his impressions as the first observer. “ When the word first came up that something unusual had come from our processing plant, I was not expecting what was about to be put on my desk. With 40 years of rough diamond experience, I thought I had seen it all. But that is one of the beauties of diamonds; there is always a new experience on the horizon. Of course the first impression is the immense size of the stone. Not only is it extraordinarily rare for diamonds to grow that big, but also it is astonishing that it survived our modern processing machines. The shape of the stone also caught my imagination. My first impression was that it looked like a ‘golden egg.’ The exterior of the stone is like an unreadable map of the time and forces that brought this stone to what we see today. Although a rough diamond from the earth can take infinite forms and no two rough diamonds are alike, the size and shape make this one of the most unusual and beautiful specimens ever recovered. It has various skin formations suggesting opposing forces fighting during the formation of the stone. It appears there may have been subtle changes in the conditions and its size suggests that this diamond grew at relatively slow pace (as diamond time is measured). If such a thing is possible to imagine, it really looks like a 3 billion year old stone. In some places it looks like the skin is just pasted on, and the other half looks like the movement of ocean waves striking the shore. It shows a liquid, flowing pattern, which is highly unusual for a diamond formation. It is such a beautiful abstract artwork in its own right. This extraordinary rough diamond is an extremely rare example of the power and unpredictable artistry of a natural rough diamond’s formation. That is what keeps me so enthusiastic for next days’ potential surprise. We continue to study the specimen to determine how to present it after sleeping for 3 billion years in the ground.” Jim Pounds, Executive Vice President, Diamonds / Dominion Diamond Mines Courtesy of Dominion Diamond Mines March 18, 2019 | Nature’s Beautiful Miracle From the Gahcho Kue? Canadian Mine Nature’s Beautiful Miracle From the Gahcho Kue? Canadian Mine The New Mine on the Block By Alan Bronstein Copyright: Mountain Province Diamonds Many of nature’s wonders appear as fairly common experiences, which we often take for, granted because we are surrounded by the extraordinary. Diamonds formed in the earth between 500 million to 3 billion years ago are ancient messengers from a time when the entire universe was congealing with the younger elements that are the foundation of all matter. In our diamond universe as we learn more and more each day about formation, localities and how natural color diamonds exist in some places more than others, it’s an exciting new science growing in geology and gemology. This is the story of the newly opened mine, (Gahcho Kué which means “land of the big rabbit”) that just began serious production 2 years ago and is showing great prospects for yielding extraordinary beauties from its restrictive resource. It may one day be called “land of the big diamond”, as the first 2 full years of production has been showing more and more 50 carat and larger stones recovered. Like all the mines existing around the Arctic Circle in Canada and Russia, the environment creates the most extremely challenging conditions for mining. As the diamond industry has evolved in the last 20 years from mine to consumer, so have the business models used by mining groups to find creative distribution pipelines. The Gahcho Kué Mine is a partner operation between DeBeers Canada and Mountain Province Diamonds. These partners have a special approach to sharing the production. The larger stones, called specials, are presented to each company to bid on the stones based on their own demand from their buyers requests. This is a sealed bid tender, not an open auction. From the reaction of participants , it appears to be working out very well as the partners can focus on their own priorities for their demands. Certainly more thought than that goes into these decisions but this distribution process seems successful at the highest levels. Reid Mackie, a 25 year seasoned rough expert is the eyes and adviser on behalf of Mountain Province. As the portal to the executive and board about his observations, Reid is also the expert that will recommend bidding strategy against De Beers based on his professional experience. One of the most exciting stones to date which was recently extracted from the mine (and one that is indicative of the potential colors and sizes to come) is a 60 carat special stone. Reid Mackie explains his initial thoughts and experience: “From time to time I fly to Canada’s Northwest Territories to view new diamond production from the mine . Because of the high values involved with the Specials and fancy colours, myself and my counterparts from DeBeers bid against each other for ownership of the stones. So, although we are partners in the mine, during this specific process we are competitors bidding against each other for ownership of the entire parcel of stones and the right to offer them to our respective customers . From the production a few months ago appeared a stone that stuck out like a traffic light among all the other beautiful specials. Having worked many years managing sales for Argyle Pink Diamonds my eyes are conditioned to exceptional colors. Still before I would express my thoughts out loud, I had to bid against the DeBeers buyer and win the stone. As most colored diamond aficionados will tell you, it is so difficult to break the bonds of the near hypnotic effect a special diamond can have on you, especially in the natural rough form which can appear in infinite expressions of shape, size and color. To put this into context, a 60 carat diamond from nature is an exceptionally large size. Then you have this diamond that is in a perfect octahedron crystal form - the quintessential shape of a perfectly formed diamond – with each crystal face a window that creates total transparency throughout the stone. And as rare a specimen as this may be, the crown on this diamond is the hue (the yellow of a yellow rose), the tone (purity of color ) and the saturation ( the depth of color which rarely appears so strong is such a large rough diamond.) The combination of these attributes makes for one of the most spectacular examples of a natural diamond that I have had the pleasure to hold.” Reid Mackie, Vice President Mountain Province Diamonds March 18, 2019 | THE LESSON FROM THE FORTUNA BLUE DIAMOND SALE THE LESSON FROM THE FORTUNA BLUE DIAMOND SALE An interview with Anna Lin, G.G. Director of Fine Jewelry at Fortuna By Alan Bronstein At Fortuna’s recent Magnificent Jewels auction, a special 3.05 carat blue diamond was featured on the catalog cover. It was presented with a relatively conservative pre-sale estimate of $1.2M–$1.8M, considering its size, color grade of Fancy Intense Blue, and clarity grade of SI2, by the Gemological Institute of America. As diamond experts are always searching for the best stone, one of their major considerations is if the clarity is flawless or near flawless. It is true that when it comes to million-dollar plus gemstones this is a strong consideration as we are trained to believe that natural inclusions that exist in a diamond are a negative attribute. In reality, when looking at the total package, beauty is the number one attribute that should drive the desire—or lack of—for a precious stone. Thus, a gorgeous example of nature’s art was purchased for a relatively inexpensive price, considering the impact and pleasure of the new owner. I had a discussion about the stone with Anna Lin, Director of Fine Jewelry at Fortuna, to get some background and her personal feelings as an expert about this blue diamond. Here’s what Anna explained, “I have a client in Asia that often shows me different pieces from her collection. One of the pieces she showed me was the 3.05 carat blue diamond. She loved it because of its pure sky-blue color and the pleasant shape of the stone. She could see there were some imperfections, but they were barely visible to her naked eye and did not distract her from the color. The color, although not the most saturated blue I have seen, was so inviting and pure that it was hard not to stare. The shape and layout of the stone were the focus of attention as the whole presentation was exceptional. It did have some black crystals which were documented on the report, giving it a clarity grade of SI2.” “The stone ultimately sold for nearly $1.4 million (including buyer’s premiums) and the former owner was very pleased to pass it to someone else to love. It was sold to another private client who saw the beauty of the color, shape and layout and who also was not bothered by the natural inclusions inside the stone. It was a perfect exchange between buyer and seller. We were so happy for the opportunity to present such a beautiful example of a natural blue diamond,” Lin expressed. My personal observation, which has been consistent for my 40 years in the diamond industry, is that a natural colored diamond can have inclusions and still be beautiful, rare, valuable, and desirable. Flawless only represents a very small segment of diamonds mined and if you want that as part of your gemstone’s nature, you will pay for that option. But 99% of all natural diamonds are created with natural imperfections and should not be ignored if the client loves them for what they can see for themselves. It’s all about the color and how it makes you feel. Anna Lin, G.G.Director of Fine Jewelry, Asia, Fortuna March 18, 2019 | Present and Future Challenges March 18, 2019 | Magical Journey of Sotheby's 'ai' Blue Diamond March 18, 2019 | NCDIA INTERVIEWS BONHAMS HEAD OF JEWELRY ABOUT NCDIA INTERVIEWS BONHAMS HEAD OF JEWELRY ABOUT RECORD BREAKING PRICE FOR PINK DIAMOND BY ALAN BRONSTEIN Yesterday Bonhams London auction house had a major jewelry auction where it a achieved a world record selling price at auction, for a fancy pink diamond of 5 carats of approximately $600,000 per carat or $2,935,000. I asked Jean Ghika, Global Head of Jewelry at Bonhams why she thought this particular fancy pink reached such strong bidding? First the back story: Jean explained to me that Bonhams had discovered this diamond hidden in an estate where the owners purchased the stone in the 1950’s. The buyers acquired the rough diamond and had it cut to their specifications. The stone has never appeared on the market until this auction 70 years later. According to Jean: “ This was a very special pink diamond. It had all the attributes that one could ask for. First it had a most elegant shape and its cut, as an emerald cut was able to maximize the inherent color in the stone. The color of the stone was strong enough to see clearly when observing, but still a particularly delicate tone. You are instantly drawn into the color and life of the stone. At a size of five carats this is considered quite large for any gem quality diamond. Finally the hue of this particular stone was a beautiful shade of pink without any sign of a secondary color. For some collectors this is a strong preference.” Jean Ghika Global Head of Jewellery Bonhams 101 New Bond Street, London, W1S 1SR, UK +44 (0)20 7468 8282 +44 (0)7967 552565 mobile International Auctioneers and Valuers www.bonhams.com/jewellery March 18, 2019 | Natural Color Diamond Association in Asia Dear Members, NCDIA Asia Sponsors Seminar with Alrosa at Hong Kong Fair NCDIA Asia, the representative office of the Natural Color Diamond Association in Asia, is hosting a seminar with Alrosa at the Hong Kong Jewellery & Gem Fair, entitled “How the World of Natural Colour Diamonds Continues to Evolve.” The seminar will take place from 2-3:30 pm on September 13 in Meeting Room 201A, at the AsiaWorld-Expo. Speakers from Alrosa’s polished division will include Pavel Vinikhin, general manager, along with Evgeny Tsybukov, deputy director for sales. Also participating in the seminar is Ren Lu, PhD., who is a distinguished professor at the Gemmological Institute, China University of Geosciences, Wuhan, China. Moderator will be Avi Kravitz, senior analyst and news editor at Rapaport Group. Vinikhin and Tsybukov will begin by presenting basic information about Alrosa itself, along with some figures related to overall rough and polished sales. They will also explain the role of Alrosa’s polished branch and about its strategy of increased focus on natural color diamonds manufacturing. The miner Is holding a natural color diamond auction during the Hong Kong show, where it is presenting 250 polished diamonds of various shapes and colors. Following the Alrosa presentation, Dr. Lu, who is the leading scientist in China on fancy color diamonds, will present some science, but also elaborate on the tastes of the Chinese market, from his perspective. Dr. Lu is currently focusing on the China gem and jewelry market. To register for the seminar, attendees can go to https://exhibitions.jewellerynet.com/9jg/en-us/specialevents. All attendees welcome on the day of the event, as well, on a first come, first served basis. To learn more about the Natural Color Diamond Association, visit http://ncdia.com/ ABOUT THE SPEAKERS Pavel Vinikhin, general manager of Alrosa’s polished division, has spent 15 years within Alrosa involved in all its activities. Evgeny Tsybukov, deputy director for sales at Alrosa’s polished division, spent 14 years in the luxury retail watch and jewelry sector as a chief buyer and commercial director for Richmond Group, Franck Muller Watchland, and others, before joining Alrosa 4 years ago. Ren Lu, PhD., distinguished professor, Gemmological Institute, China University of Geosciences, Wuhan, China, was a senior scientist at the Gemological Institute of America (GIA) in New York, prior to his return to China in 2013. While at GIA, he conducted extensive gemological research on colored diamonds, particularly pink and blue. Dr. Lu has also held research positions at the Carnegie Institution of Washington, Lucent/Bell Laboratories, University of Arizona, and Bayerisches Geoinstitut in Germany. He also serves on the editorial review boards of the GIA journal “Gems and Gemology,” and the Chinese “Journal of Gems and Gemmology.” Avi Kravitz, senior analyst and news editor at Rapaport Group, has spent over 10 years covering the diamond and jewelry industry, and has authored reports spanning the entire diamond industry pipeline, including rough production, polished trading, and jewelry retail sales. In his role at Rapaport, he is responsible for publishing the monthly Rapaport Research Report, overseeing the news coverage on www.diamonds.net and in Rapaport Magazine, and providing analysis about issues facing the industry. CAPTIONS: Pavel Vinikhin, general manager of Alrosa’s polished division Evgeny Tsybukov, deputy director for sales at Alrosa’s polished division Ren Lu, PhD., distinguished professor, Gemmological Institute, China University of Geosciences, Wuhan, China Avi Kravitz, senior analyst and news editor at Rapaport Group March 15, 2019 | Editor's letter © 2021 NCDIA - All Rights Reserved