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Shift in Trends from Gold to Diamonds in India

t is now widely accepted statement by the global diamond industry that India and China will enjoy a decisive say as far as consumption of diamonds is concerned. Many analyst firms like Bain & Company and Rare Investment have concluded in their surveys that the growing wealthy class in India and China are going to drive diamond demand in the current decade. A survey done by Bain & Company by interviewing more than 5 thousand people in China, India, Russia, the United States, Great Britain, Italy, Germany and France shows that global sales of rough diamonds during the current decade is expected to reach $26.1 billion which would be an increase of 67% as compared to $6 billion in 2011. Noteworthy here is that considerable demand growth would be driven by China and India. There are an estimated 300 thousand jewelers in India, which figure is said to be seven times more than in the United States and six times more than in China. Diamond Purchases in India are growing because engagement rings are a solid tradition and also because the young and new generations here are celebrating more and more Western festivals like Valentine’s Day and Christmas. Apart from this, there are many other occasions when Indian women are asking for diamond varieties in rings, necklaces, pendants and bracelets. On the other hand, Rare Investment’s outlook, mentioning both growing wealthy classes in China and India and the countries’ increasing interest in the western customs of marking auspicious occasions with diamond jewellery as factors that are influencing growing demand for diamonds in the Asian countries. The outlook also mentions that those diamond companies interested in taking advantage of this growing demand would do their best to keep in mind what Asian consumers are looking for. The first and foremost among such companies is the De Beers group which is vigorously campaigning its “Forevermark” diamonds into Indian markets. Mr. Stephen Lussier, CEO of the Forevermark Diamonds who was addressing media persons at the inaugural function of the Signature IIJS in Mumbai recently said, “We are keen to take advantage of Indian consumers’ growing interests in diamonds and are planning to expand Forevermark’s reach to 130 stores in India by the end of 2013.” Mr. Lussier further said, “Value of the diamonds inscribed by De Beers Forevermark amounted to $500 million in 2012. India accounted for 8% of our brand’s sales during 2012 after its launch in the country in January 2011. Now the De Beers brand is planning to increase that figure to 20% in the next five years.” Mr. Sachin Jain, Managing Director of Forevermark India says, “I feel that the global crisis has a different lineage with the Indian diamond market. Although the global situation is not the same in India from a consumer perspective, the market is robust and is growing. De Beers has recently reported that revenue from the Forevermark unit rose by 50% in 2012 as Forevermark expanded its retail partnerships by 40% to more than 900 doors. Now the brand is present in about 85 doors with plans to expand to around 130 by the end of 2013 in India.” The trend is changing now in India. Class of diamond lovers is growing fast here. Forevermark is also offering affordable diamonds. Mr. Jain adds, “There is a lot more that comprises to be a Forevermark diamond. Less than 1% of the world’s diamonds are eligible to be Forevermark diamonds. I honestly feel that the Indian consumers are considered to be global ones and they are well aware of the international trends. The awareness of buying the right diamonds and overall (genuine) products is increasing which help environment. Let me tell you that Forevermark takes care of all of such aspects.”

Prashant Rathod Email: editor@minestomarket.net

Mines To Market / Jan-Feb’2013

CONTENT

CONTENT SHORT NEWS Page # 13

Gitanjali Group Recognized for its CSR Initiatives

Page # 15

BDB Inaugurates Trading Floor

INDUSTRY WATCH Vol: 2, Issue 3, 2013

Page # 18

Jumping Exports Encourage India

Price: RS 75/-

Page # 19

Somasundaram PR is MD of WGC in India

Page # 20

Gems & jewellery exports fall 17% in 2012

Owner, Publisher, Printer & Editor Prashant Bharatkumar Rathod

UK Correspondent : Jayant Raniga

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Page # 26

Leo Schachter Diamonds Again Leads the List with $317 Million in Exports

Page # 27

Israel’s Polished Diamond Exports Totaled $5.6 Billion in During 2012

NEW LAUNCH

Email: editor@minestomarket.net prashant022@gmail.com Web: www.minestomarket.net

Page # 35

TBZ - The Original now in Aurangabad

Page # 37

Hari Krishna Exports Pvt.Ltd. opens “The Capital” in Bandra Kurla Complex

Mines To Market Magazine is printed and published by Prashant Rathod at Blue Diamond Media.

SHOW TIME Page # 45

Signature IIJS Ended with a Success Note Mines To Market / Jan-Feb’2013

SHORT NEWS

Rapaport to Introduce Diamond Source Certificate in India

apaport intends to introduce a certification scheme about the origin of a particular diamond in India, Chairman of the Rapaport Group Mr. Martin Rapaport has said. Mr. Rapaport was briefing to media persons after inauguration of the Group’s new office at The Capital, situated in the posh business locality of Bandra-Kurla Complex, Mumbai. The Source Certificate would enable a consumer to obtain a higher level of assurance that an industry product, such as rough or polished diamonds, was NOT obtained from a ‘Conflict Source’ which can be a country or person that industry participants have agreed not to buy or sell diamonds from/to as part of their commercial negotiations.

Dubai Diamond Conference on 18-19th March

he Inaugural Dubai Diamond Conference, to be held on 18-19 March 2013 at Dubai’s Almas Tower, has positioned itself as a high-level event drawing delegates and keynote speakers from Africa, Middle East and Asia. Keynote speakers include the Hon. Susan Shabangu, Minister of Mineral Resources of the Republic of South Africa; the Hon. Dr. Obert Moses Mpofu, Minister of Mines and Mining Development, Republic of Zimbabwe; the Hon. Prof. Dr. Francisco Queiroz, Minister of Geology, Mines and Industry, Republic of Angola; the Hon. Isak Katali, Minister of Mines and Energy of the Republic of Namibia; and the Hon. Onkokame Kitso Mokaila, Minister of Minerals, Energy and Water Resources of the Republic of Botswana, They will provide attendees with insights from their respective

This would add more value to the diamond and bring more transparency in the diamond trade, he said.

Oldest Swiss Bank to Close in US Tax Evasion Case witzerland’s oldest private bank, Wegelin & Co, said that it is going out of business after pleading guilty to charges of helping American citizens avoid US taxes. It remains unclear whether the bank will reveal the names of its US clients.

Wegelin & Co, the oldest Swiss private bank, said on Thursday it would shut its doors permanently after more than 2 ½ centuries, following its guilty plea to charges of helping wealthy Americans evade taxes through secret accounts. The plea, in U.S. District Court in Manhattan, marks the death knell for one of Switzerland’s most storied banks, whose original European clients pre-date the American Revolution. It is also potentially a major turning point in a battle by U.S. authorities against Swiss bank secrecy. Wegelin admitted to charges of conspiracy in helping Americans evade taxes on at least $1.2 billion for nearly a decade. Wegelin agreed to pay $57.8 million to the United States in restitution and fines. A major question was left hanging by the plea: Has the bank turned over, or does it plan to disclose, names of American clients to U.S. authorities? That is a key demand in a broad U.S. investigation of tax evasion through Swiss Mines To Market / Jan-Feb’2013

roles covering topics ranging from mining to polishing, trading to finance and diamond banking. In line with the tenth anniversary of the Kimberley Process (KP), KP Chair Ambassador Welile Nhlapo will also address the two-day conference. Shabangu, in confirming her participation, notes: “Dubai has seen remarkable growth in the past 10 years, particularly within the diamond industry. Located at the centre of the New Silk Route, it is certainly the ideal destination for an international diamond conference and I am delighted to attend the inaugural Dubai Diamond Conference on behalf of the Republic of South Africa. I look forward to the range of debates and panel discussions that are in store, as well as identifying more ways in which South Africa and the UAE can strengthen their trading ties.”

SHORT NEWS

India Allows Setting up Bonded Warehouses for GJ Sector “Private/Public bonded warehouses may be set up in Special Economic Zones (SEZ)/ Domestic Tariff Areas (DTA) for import and re-export of cut and polished diamonds, cut and polished colored gemstones, uncut and unset precious and semi-precious stones, subject to achievement of minimum value addition (VA) of 5 percent,”

ndia has re-introduced a provision for setting up private/public bonded warehouses for the gems and jewellery sector in its Foreign Trade Policy 2009-2014. “Private/Public bonded warehouses may be set up in Special Economic Zones (SEZ)/ Domestic Tariff Areas

(DTA) for import and re-export of cut and polished diamonds, cut and polished colored gemstones, uncut and unset precious and semi-precious stones, subject to achievement of minimum value addition (VA) of 5 percent,” the government said in a circular.

warehouses and the same has been suggested in the FTP. The government has also allowed single revolving bank guarantee for different transactions for the import of silver or gold or platinum for the gems and jewelry sector.

The move will facilitate the establishment of bonded warehouses in SEZ or DTA for diamond, gems and precious and semi-precious stones. A similar provision existed in the Foreign Trade Policy (FTP), but it was deleted after the abolition of import duty on cut and polished diamonds in 2009.

After considering the gem trade’s feedback, the government decided that the bank guarantee furnished by the importer can be used for subsequent consignments, if the importer has fulfilled the export obligation and export proceeds realized in respect of the earlier consignments, according to a separate announcement.

The Gem & Jewellery Export Promotion Council (GJEPC) stated that after the imposition of a 2 percent import duty on polished diamonds in January 2012, it lobbied the Department of Commerce to reintroduce facilitating bonded

The bank guarantee may be so used for subsequent import consignments, provided it is sufficient to cover the duty involved and has validity for a sufficient time period with a selfrenewal provision built in, it noted.

IDE organizes “International Diamond Week”

he Israel Diamond Exchange (IDE) has announced it will hold the “International Diamond Week in Israel (IDWI),” a customized rough and polished diamond sales event for accredited diamond dealers, during the third week of March, at the Israel Diamond Exchange. The initiative follows the success of the “Israel Diamond Week” held in December in New York.

“For the event in March, the IDE initially will be inviting members of the DDC NY and other American diamond industry and trade organizations. These include members of the diamond bourses in Miami and Los Angeles, and of the Diamond Manufacturers and Importers Association of America,” IDE president Yair Sahar said. Sahar said the exchange would also gladly welcome diamond dealers who hold membership of other bourses affiliated to the World Federation of Diamond Bourses (WFDB) and of other accredited diamond organizations

“Ramat Gan is a leading, global diamond trading center, which offers lots of opportunities for profitable diamond business ventures. The IDWI in March is the first out of several customized diamond buying opportunities IDE will be organizing in 2013 with the specific aim to lower the threshold and attract diamond buyers to Israel.” worldwide. “Ramat Gan is a leading, global diamond trading center, which offers lots of opportunities for profitable diamond business ventures. The IDWI in March is the first out of several customized diamond buying opportunities IDE will be organizing in 2013 with the specific aim to lower the threshold and attract diamond buyers to Israel.” Mines To Market / Jan-Feb’2013

SHORT NEWS

Gitanjali Group Recognized for its CSR Initiatives recognizing the Group’s CSR initiatives”. The concert showcased some of the best musical talents in India and across the globe including Shankar Mahadevan, Sonu Nigam, Shaan, Kailash Kher, Raghu Dixit, Sunidhi Chauhan, Vijeyta Pandit, Kavita Krishnamurthy, L Subramanium, and performances by Shiamak Davar’s Talented Dance group. International artists Pamela Logoie and Akon are also part of this international collaboration. The voices of the next gen were also heard as Ambi and Bindu Subramanium; Avitesh and Anivesh Shrivastava regaled the audiences with their melodious vocals along with Naina Bachchan at the piano.

roup, the world’s largest integrated branded jewellery manufacturer-retailer with an annual turnover of US$ 2.5 bn, was associated with the ‘Global Sounds of Peace’, a live concert held on the occasion of Martyrs Day’ the death anniversary of Mahatma Gandhi at Andheri Sports Complex, Mumbai. The concert featured singer Aadesh Srivastava presenting his latest album of the same name and performances by 15 other highly acclaimed Indian and international artistes, including Dr Amitabh Bachchan, focused on spreading a message of harmony and peace. The concert was produced by Raaga Entertainment and Pratap Singh. The organisers presented a special memento to Gitanjali Group in recognition of their CSR activities including ‘Saksham’ that provides employment within the diamond industry to People with Disabilities and ‘Beti’ which mobilizes support for victims of attacks against women. Mehul Choksi, CMD, Gitanjali Group, said, ‘’We support this excellent peace initiative and are really proud to be associated with an event of such magnitude which promotes peace across the globe. Diamonds are symbols of love and friendship, they Mines To Market / Jan-Feb’2013

represent bonds that last forever. It is only natural for Gitanjali Group to extend support to this initiative which strengthens ties among people.’’ He further added, “on behalf of Gitanjali Group, I would also like to thank Global Sounds of Peace for

All of these singers and artistes performed to the beats of the World Raaga Symphony, an amalgamation of the London Philharmonic Orchestra and Indian instrumentalists led by David Murphy and a joint collaboration with Aadesh Shrivastava.

Gemfields Q2 Production Rises 69% on Higher Emerald Grades

merald miner Gemfields Plc said production in the second quarter rose 69 percent owing to higher grades recovered at its Kagem mine in Zambia. The company produced 6.6 million carats in the quarter ended Dec. 31 at Kagem, its only producing mine, up from 3.9 million carats last year. Emerald grade for the quarter was 288 carats per tonne, compared with 222 carats per tonne a year earlier. Gemfields said its ongoing large-scale waste movement programme at Kagem to open up new areas for

future ore production was continuing according to plan. “Management expects an overall increase in operating efficiencies and performance as the stripping ratio stabilises in the medium term, and as Kagem is able to mine both waste and ore more efficiently,” the company said in a statement. Gemfields mainly mines emeralds at its Kagem mine in Zambia, but also has interests in ruby and sapphire deposits. In November, it agreed to buy luxury jeweller Faberge, the maker of lavish Easter eggs for Russia’s last tsar, in a deal valued at $142 million.

SHORT NEWS

Sudan Claims Finding 4,000 New Gold Mines esperate to gain new sources of state income, Sudan revealed the existence of 4000 gold mines in Jebel Amir Area in North Darfur State.

circular early January to ban the export of unrefined gold for good.

According to country’s Minerals ministry, the new sources can produce 15 tons per year at the rate of 70 kg a day.

Sudan is boosting production of gold and other minerals and announced many projects including a joint project with Saudi Arabia to tap gold, silver and copper reserves in the Red Sea between the two countries would probably start in 2014.

The ministry claimed that gold production from Jebel Amir as unprecedented as many youths have given up insurgency and went mining. In 2012, gold contributed two billion dollars and the companies operating in the field of gold are expected to reach 15 by 2013. Meanwhile, country’s central bank, Bank of Sudan declined to comment on news that it is planning to issue a

Oil used to be the main source for the budget, bringing in about $5bn a year, until South Sudan gained independence in July 2011, taking

with it three quarters of oil output. Unlike oil, most of the known gold reserves at the time of the country’s division were in the north and, while there are gold deposits in the south, there is little data.

ADTF Draws Praise from Participants

he fourth edition of the Antwerp Diamond Trade Fair (ADTF) concluded on January 29. More than 500 visitors from Asia, Europe, the Middle East, North America and the Russian Federation visited the exhibition booths of the 83 exhibitors in the trading halls of the Antwerp Diamond Bourse and the Diamond Club of Antwerp.

events for visitors, including breakfast seminars, held at the venue hotel, the Radisson Blu Park Lane. Meanwhile, renowned jewellery designer Reena Ahluwalia of Toronto, Canada, gave a presentation on “design for business,’ in which she discussed what jewellers need to consider when

working with a designer and how to develop a mutually successful relationship with jewellery designers. And Cynthia Unninayar, Editor-inChief of Couture International Jewellery (CIJ) spoke about the “Ten top trends and colours in jewellery design in 2013.”

Most exhibitors were pleased with the make-up of the invited buyers, the majority of whom were first time visitors to Antwerp. Exhibitor Ari Lieber of Krochmal and Lieber co. was positive. “The fair is proving itself as a genuine networking and business procurement event. This must continue,” he said. Dharmesh Patel, of first time exhibitor H.D. Diamonds, said: “It’s all about maximizing on your niche product. As leading manufacturers of under 0.20 carat rounds, we identified many opportunities for new business.” The ADTF 2013 provided a range of

Mines To Market / Jan-Feb’2013

SHORT NEWS

Jewellery Exports from Pak Rise 300% in 2012

he jewellery exports from Pakistan surged by over 300 per cent during first half of current financial year as compared to same period of last year. Exports of jewellery during the period under review were recorded at US $1.11 billion against the exports of US $276.447 million during JulyDecember 2011-12. On month on month basis, the jewellery exports grew by 106.42 per cent and during first half of current financial year as against the same period of last year, however, when compared with the exports of November 2012, the jewellery exports witnessed a decrease of 37.67 per cent, Pakistan Bureau of Statistics (PBS) reported. During December 2012, the exports of jewellery were recorded at US

$79.393 million whereas the exports during December 2011 and November 2012 remained US $38.462 million and US $127.385 million, respectively. Similarly, the exports of gems increased by 34.83 per cent as about 6 metric tons of gems worth US $2.04 million were exported as against the export of three metric tons valuing US $1.516 million during first six months of last financial year. The gems exports during December 2012, however recorded a negative growth of 19.28 and 26.58 per cent

when compared with December 2011 and November 2012, respectively. Gems exports decreased from US $0.332 million in December 2012 and US $0.365 million in November 2012 to US $0.268 million during last month of previous year.

BDB Inaugurates Trading Floor

pera House and Zaveri Bazaar in southern Mumbai are set to lose their identity as diamond trading hub. Majority of the small and medium traders are fast moving to the new facility at BandraKurla Complex (BKC). This movement has picked up with Bharat Diamond Bourse (BRD) inaugurating its diamond trading floor at the complex last week. The BDB plans to widen the scope of trading within the complex and facilitate the operations of smaller companies and traders. The trading hall is named after late S G Jhaveri, who in the 1970s was one of the first to suggest setting up a diamond bourse in India and worked towards it until his death in 1991. Mines To Market / Jan-Feb’2013

In the last one and a half years after the serial bomb blasts at Opera House and Zaveri Bazaar on July 13, 2011, over 425 offices of 300 big and medium diamond companies have become operational within the BDB premises at BKC. Official sources said the work on the interiors of another 415 offices is nearing completion and in the next couple of months the BKC will be housing more than 900 offices of the diamond companies. “In the next few months, BKC will be the new address for the world’s biggest diamond trading hub in India,” said Anoop Mehta, president, BDB. The BDB occupies two million square feet of space and houses 2,500

diamond offices of various sizes. It offers facilities such as a trading hall, customs office, banking, restaurants and security surveillance. Mehul Shah, member of BDB said, “The diamond industry has embraced the new trading environment at BDB. The shifting activity from Opera House to BKC has gathered pace in the past one and a half years.”

INDUSTRY WATCH

KP Chair Firm in Fight against Illicit Diamond Trade

o ensure the survival of the diamond industry, the African leadership of, and footprint in, the Kimberly Process (KP) would have to be expanded, chairperson Welile Nhlapo has said.

diamonds’, a situation chairing South Africa would have to deal with. “There is an inconclusive debate about the need to change the current definition of conflict diamonds, which can impact on the mandate and character of the KP,” Nhlapo explained.

South Africa took over the chairpersonship of the KP from the US on January 1.

Some stakeholders argued that the term should include human rights abuse, revenue transparency, violent armed conflict and good governance.

Nhlapo indicated that it was important that the world’s largest diamond-producing continent took a more aggressive stance in the fight against conflict diamonds, while KP

“There is an inconclusive debate about the need to change the current definition of conflict diamonds, which can impact on the mandate and character of the KP,”

member-countries would also have to fulfil their responsibilities by becoming more actively involved. Equally important was that transformation would have to be at the heart of a solution to preventing illicit diamond trading, while mechanisms to ensure compliance would have to be strengthened in a way that satisfied the requirements of all stakeholders, including governments, industry and civil society. Nhlapo said the KP would have to create more partnerships, and find synergies with State and civil society structures involved in conflict resolution and peace building to ensure the right issues were tackled. “Constructive cooperation between the African Union (AU) and the United Nations (UN), as well as between their peace and security councils must be nurtured.” To further aid in curbing trade in

conflict diamonds, he added, South Africa would have to leverage its bilateral relationship with China, its membership in the Brics (which also includes Brazil, Russia, India and China) group of countries, as well as its role as a mediator in African conflicts. Meanwhile, Nhlapo also highlighted that there was opportunity to build beneficiation capacity in diamondproducing countries. “There is a willingness, even among some of the big players in the industry, such as India, to train people to be able to not only beneficiate, polish and cut [diamonds], but to get into [the mining] industry itself,” he stated, adding that the KP would have to encourage governments to take responsibility for instilling the required skills and knowledge to progress local beneficiation and reduce unemployment, inequality and marginalisation.

He noted that the lack of coherence on the matter was mostly owing to the KP being a multistakeholder process, with 80 represented countries and many large industry players such as De Beers, BHP Billiton and Anglo American, as well as civil society. Nhlapo said the potential of Africa’s diamond industry to serve as a springboard to expand and diversify the continent’s fragile economies added to the urgency of eradicating elicit diamond trade, with the KP having contributed in making significant improvements. Diamond experts estimated that conflict diamonds currently represented a fraction of 1% of the international trade in diamonds, compared with the estimates of up to 15% in the 1990s. This has been the KP’s most remarkable contribution to conflict resolution. “At the end of 2013, it is our wish to contribute to more clean diamonds throughout the value chain, the diamond industry not only surviving, but thriving, and sustaining the global passion for, and positive association with, diamonds,” Nhlapo stated.

Challenges in the ongoing move against illegal diamond trade included failed discussions in 2012 regarding broadening the term ‘conflict Mines To Market / Jan-Feb’2013

INDUSTRY WATCH

Demand for Gold Predicted to Rise in Global Transition to Multi-Currency Reserve System

emand for gold is likely to rise as the world heads towards a multi-currency reserve system under the impact of uncertainty about the stability of the dollar and the euro, the main official assets held by central banks and sovereign funds. This is the conclusion of a wide-ranging analysis of the world monetary system by Official Monetary and Financial Institutions Forum, (OMFIF), in a report commissioned by the World Gold Council, the gold industry’s market development body. Driven by China’s desire to increase its financial influence, the Chinese renminbi is likely to emerge gradually as a genuine international currency as Beijing eases restrictions on its use in transactions and investments abroad. During the coming period of uncertainty and transition between different reserve currencies, official central bank asset managers around the world are likely to increase their interest in gold as a result of doubts about the overall strength of global monetary arrangements. The OMFIF report explores the asset management consequences of greater dispersion of global economic power. It states: ‘The world is headed towards the uncharted waters of a durable multi-currency reserve system, where the dollar will share its pivotal role with a range of other currencies, including the renminbi.’ OMFIF believes the re-balancing of the world economy through China’s

‘The world is headed towards the uncharted waters of a durable multi-currency reserve system, where the dollar will share its pivotal role with a range of other currencies, including the renminbi.’ economic rise will occur gradually rather than abruptly and will not be straightforward. In particular, the move towards full renminbi convertibility is likely to be only gradual. Although the renminbi’s rise as a reserve currency is unlikely to pose any immediate threat to the dollar, ‘during this period of change and transition reserve holders will spread their investments into a relatively wide range of assets and sectors.’ While OMFIF does not envisage a return to a gold standard, the report says, ‘Gold will increasingly have a renewed role in the global monetary system, attracting a

Mines To Market / Jan-Feb’2013

higher level of attention from policymakers and financial market practitioners.’ According to Natalie Dempster, World Gold Council Director of Government Affairs: ‘The report makes a substantial contribution to the debate around the global transition to a multi-currency reserve system, with important implications for reserve asset managers. We are already seeing many of the world’s central banks increase the allocation of their reserves to gold and this report points to an acceleration of that trend.’ The OMFIF report includes a foreword by Prof. Lord (Meghnad) Desai, chairman of the OMFIF Advisory Board. He states: ‘As China weighs up its options for joining in the reserve asset game, gold – the official asset that plays no formal part in the monetary system, yet has never really gone away – is poised, yet again, to play a pivotal role.’

INDUSTRY WATCH

Jumping Exports Encourage India “The Indian government is presently cracking down on the people’s ability to buy gold through regulations and taxes. Given the insatiable appetite for the precious metal, people will naturally gravitate towards gold after buying silver items for some time.” As an official of the council pointed out, India’s silver jewellery exports for FY12 stood at $691 million (Rs 36 billion) against $482 million (Rs 25 billion) in FY11.

ith the Indian government cracking down on gold, the metal’s poor cousin, silver, has shot into the limelight. Silver jewellery exports are expected to lead this fiscal year, given the geographical expansion into the markets of CIS (Commonwealth Independent States) and Eastern Europe, both of which have benefited silver jewellery. Silver exports are likely to jump 30% this financial year in India, against $797 million a year ago. In December alone, provisional exports of silver jewellery touched $73.85 million. According to provisional data from the Gems and Jewellery Export Promotion Council, exports of silver jewellery during April to December 2012, jumped 24.68% in Rupee terms. Shipments of gems and jewellery constituted 14% of India’s total exports. Gems and jewellery exports too are expected to rise 15% against $38.28 billion of overseas shipments in the previous year, the council has said. With the US and European market favouring white metal jewellery over gold items, silver jewellery pieces made in India are a big hit with the Westerners.

“During 2011-12, silver jewellery exports grew 44% compared to gold jewellery exports growth of 30%. We will have to wait and see what the next two months bring in for silver retailers,’’ the official said.

Manubhai Shroff of the Bombay Bullion Association added, “The Indian government is presently cracking down on the people’s ability to buy gold through regulations and taxes. Given the insatiable appetite for the precious metal, people will naturally gravitate towards gold after buying silver items for some time.” But, he added that the demand for silver is expected to go up in India as well. Imports, however, may slip to between 3,500 tonne and 4,000 tonne from last year’s 4,800 tonne.

GJEPC Demands 15% Quota for Duty-Free Imports of Polished Diamonds The Indian diamond and jewelry industry has a long list of policies that it wants the government to implement in the new fiscal year. Key among them are a 15 percent quota for dutyfree imports of polished diamonds, the implementation of a presumptive tax and special zones for mining companies to sell rough diamonds.

noted that the current government offer of a presumptive tax based on an assumed 6 percent margin was not in line with reality and thus lay unaccepted. Globally, Kothari noted, industry margins are 1- 4 percent depending where in the pipeline a company was situated and what is its largest market.

The implementation of the presumptive taxation system based on an assumed profit margin of 2.5 percent is first on the list, said the GJEPC’s business development head, Sanjay Kothari. Speaking at a press conference on Tuesday ahead of the upcoming Indian government budget for the next fiscal year, Kothari Mines To Market / Jan-Feb’2013

INDUSTRY WATCH A presumption of 2.5 percent profit would slot right into the median, he observed.

Somasundaram PR is MD of WGC in India

T The establishment of special notified zones to enable mining companies to sell rough diamonds was stalled over the tax authorities request for clarification of the tax liability involved. The industry has asked that tax be levied only on the sold goods, allowing miners to take back the unsold goods. None of the mining companies has a sales operation in India, the largest cutting and polishing center in the world. Sourcing rough diamonds from centers such as Antwerp and Israel increased the transaction cost, Kothari added. The industry also seeks an import quota for polished diamonds to boost production. In the past polished diamond imports were free of duty, leading to the development of circular trading or round tripping. This takes place when the same parcel of diamonds is exported several times to get additional bank credit and government export benefits. After the diamond industry asked the government to impose a 2 percent import duty on polished to curb this practice, it is now wants a duty-free polished diamond import quota of 15 percent of a company’s exports in the previous year. This would ensure that polished imports were for legitimate commercial purposes only, the GJEPC maintained. The industry also sought the deeming of the gem and jewelry industry as being “zero rated” for indirect taxes and wanted a refund of any such levies when product was finally exported. It also wanted better rupee export credit norms for gem and jewelry exports and a simplification of export procedures to reduce transaction costs overall. Mines To Market / Jan-Feb’2013

he World Gold Council, the market development organisation for the gold industry, has appointed Somasundaram PR as Managing Director, India. Somasundarum PR (Som) will be based in Mumbai, where he will be responsible for leading the World Gold Council’s activities across the Indian market, according to a press release issued by the Council. Som has over 27 years’ experience of diverse industries and sectors. Som joins the World Gold Council from Lakshmi Vilas Bank, where he was Chief Executive Officer. Before that, he spent eight years at Standard Chartered Bank in India where he held senior positions including Managing Director of Standard Chartered – STCI Capital Markets, the securities arm of Standard Chartered Bank. Som has also gained valuable experience of other sectors having spent over 13 years with Hindustan Unilever (HUL) in a variety of national and international roles, as well as working at Tata Consultancy Services. Som is a qualified Chartered Accountant. Commenting on his appointment Som said, “I am delighted to have joined the World Gold Council, which provides focused leadership on all matters concerning gold across the globe. I am looking forward to developing and leading, innovative and sustainable programmes for gold in all its forms throughout India and developing and further strengthening relationships with key financial, trade and retail partners.” Commenting on the appointment, Aram Shishmanian, Chief Executive Officer, World Gold Council said, “India is one of the most important gold markets in the world and this is a critical appointment as we seek to further develop new markets and strong partnerships. Som is a proven

“I am delighted to have joined the World Gold Council, which provides focused leadership on all matters concerning gold across the globe. I am looking forward to developing and leading, innovative and sustainable programmes for gold in all its forms throughout India and developing and further strengthening relationships with key financial, trade and retail partners.” leader with an outstanding track record. His experience and expertise gained in both the consumer and banking sectors will be invaluable as we continue to work to develop an appropriate role for gold in meeting the needs of investors as they seek to accumulate and protect their wealth.” Som has joined World Gold Council as Managing Director for India from 1st January 2013.

INDUSTRY WATCH

Gems & jewellery exports fall 17% in 2012 ems and jewellery (G&J) exports declined 17.09 per cent in dollar terms and 4.65 per cent in rupee terms in 2012 amid stagnating demand in West Asian and European markets. The decline in dollar terms was partly set off by the depreciation in the rupee.

cent of India’s overall G&J exports, West Asia constitutes 48 per cent. Hence, Indian exporters are scouting to expand their footprint further in the West Asian market, in addition to exploring new markets like Australia, Romania and former Soviet republics (Commonwealth of Independent

Gems and Jewellery Export Promotion Council (GJEPC) data showed that overall G&J exports fell to $38.3

States). Japan is another destination which Indian jewellery exporters are scouting for high-end ornaments. Jewellery exporters are also betting big on the growth in the domestic market this year after the government took a number of reform measures to bring the economy back on the growth path.

Notified Zones for Rough Diamond Import and Trading

n its budget recommendation, GJEPC also urged the government to establish special notified zones for import and trading of rough diamonds with an aim to attract international mining companies and trading players to sell rough diamonds in India. “This is applicable to foreign diamond mining companies in such zones, whose net income is fixed and taxes are paid only on invoices raised to Indian companies,” it noted.

billion (Rs 2.05 lakh crore) in 2012, compared with $46.2 billion in the previous year. The rupee averaged at 53.49 against the dollar in 2012, compared with 46.68 in the previous year.

on the turnover of goods sold, while the companies should be allowed to take back the unsold goods. “In Bharat Diamond Bourse we have enough space for such notified zone but the policy should come in place. That is what we are asking them,” Kothari said. This will help in reducing the transaction cost and traveling hassles, he noted.

“We believe the decline would be fully set off by the end of March 2013 after which the industry would enter into positive territory,” said Vipul Shah, chairman of the GJEPC. After a dwindling first six months of the current financial year, G&J exports started recovering gradually in October with stockists’ orders flowing in from the US for Christmas, New Year and Mother’s Day celebrations. Since these three occasions constitute around 40 per cent of overall annual jewellery sales in the US, neither Indian exports nor American retailers look to miss the opportunity. “Overall jewellery demand during the Christmas and the New Year seasons remained flat with around five per cent growth witnessed in the US market. But it raised hope for a recovery, with around 15-20 per cent growth expected during the next financial year,” said Shah. While the US alone comprises 11 per

Sanjay Kothari, the convener of promotional marketing and business development at GJEPC, said that India is the largest manufacturer and importer of rough diamonds but currently Indian companies’ requirements are met through centers such as Belgium, Dubai and Israel directly, or goods are redirected through these centers. “Why not create a notified zone where in Rio Tinto or De Beers and other big players can come and sell their rough raw materials to us,” Kothari said. He suggested that the mining companies can bring the goods on consignment basis in such notified zones, the government may impose 1 percent levy

GJEPC has also requested that a special $3 billion to $5 billion fund be established by the Reserve Bank of India (RBI) to refinance the borrowing by export industries, which have a high import content of more than 70 percent of their exports, among others. Shah said that the central government has sanctioned $37 million (INR 2 billion) to build a convention center in Mumbai and now the council will request the state government of Maharashtra to allot the land for the same at subsidized rate. The council has scheduled various trade events, buyer-seller meetings and conferences to promote Indian talent and trade in the domestic as well as overseas market to counter the slowdown, he noted.

Mines To Market / Jan-Feb’2013

INDUSTRY WATCH

Myanmar Govt Plans to Open Gem Industry Hub quality jade. It holds several sales fairs per year called “Gems Emporiums,” with sales valued at billions of dollars.

he Burmese government plans to establish a jade and gemstone center in the capital Naypyidaw, where it hopes traders and investors will open stores and processing industries for the precious stones, a government official said. Thein Swe, managing director of Myanmar Gems Enterprise of the Ministry of Mines, said it would invite businessmen to settle at the planned “Jade stores, Jade Industry and Gem Market” in order to create a business hub for Burma’s gem industry in Naypyidaw. Thein Swe said new center would offer business benefits to the gemstone merchants, adding that businessmen would benefit from being located at the new capital, which was developed in secrecy under the previous military regime. “After government moved the capital to Naypyidaw in 2005, jade and gem auctions were held mostly in Naypyidaw. Now we try to establish the Jade Stores, Jade Industry and Gem market [here] because we want it to be more convenient for traders and investors to do business,” he told The Irrawaddy. “Some investors and traders want to open jade stores and some want to have a gem market in the new capital. So, that is the main reason” for the creating the center, he said. The government has prepared 91 plots for jade stories and jade industries Mines To Market / Jan-Feb’2013

which would be offered for sale at US $375,000. At the gem market 19 smaller plots would go on sale for $263,000 each, according to Thein Swe. Myanmar Investment Commission would have to approve foreign investment in the business center, Thein Swe said, adding that foreign investors were welcome, but only if they set up gemstone processing industries “We never allow foreign investment in the jade and gem excavation sector, but we will allow market and valueadded production of jade and gems. Foreign investors who want to invest in those kinds of sectors need government permission,” he explained. Some gem dealers doubted if the plan to establish a gem trade and processing hub would work, as similar projects by the government have previously been unsuccessful. “General Khin Nyunt, the former spy chief, also tried to establish a jade and gem industry and market, but failed,” said Hla Win, a local gem dealer. He said Burma lacked the sophisticated technology required to process gemstones and create valueadded products with the precious stones. “If we really want to develop that sector, we should try to get highquality technology,” Hla Win said. Burma produces 90 percent of the world’s rubies, sapphires and fine-

In March last year the government held the 49th emporium in Naypyidaw. The previous fair in 2011 saw record sales worth $2.8 billion, while a 2010 event generated $1.4 billion. About 9,000 visitors came to the 2011 event, Reuters reported. Most major buyers are from China, while Taiwanese and Thai traders also attend in large numbers. However, gem sales have since slumped after China’s economic growth slowed down and the Chinese government increased import taxes on Burmese products, doubling the taxes on jade and gems from 15 percent to 33 percent. Minister of Commerce Win Myint said the tax hikes had been a major blow for Burma’s gem trade. “Usually, we got billions of dollars in income from [gemstone] auctions, but after Chinese authority increased taxes on jade and gem buyers to 33 percent, our income dropped tremendously,” he said. The trade in Burma’s rich gemstone resources—most of which are located in northern Burma, including in Kachin State—has long been surrounded by controversy, as it has serves as a major source of revenue for Burma’s military and ruling elite, and their business cronies. Kachin rebels have funded their ongoing insurgency against the government by controlling jade mines and the control over these resources has been a point of contention between the warring parties. US sanctions have sought to restrict trade in Burmese gemstones but the measures have had little effect on the trade, as most jade and gems are sold to China and other Asian countries, from where the stones can also find their way to western markets.

INDUSTRY WATCH

India’s Gold Imports Jumped during Wedding Season continue until May. The country celebrates around 10 million weddings each year. Several festivals also take place during this period. “Most middle class families that have a marriage spend over Rs 200,000 just on gold. There is almost an equal amount spent on the food, clothes and other decorations at each wedding,’’ said Jayeshbhai Sota, bullion trader. India’s appetite for gold, despite rising prices, is mainly attributable to the massive number of weddings that take place in the country, besides the investment potential of the yellow metal.

ullion traders across the country are one step ahead of the Indian government. Even as the government was pondering a proposal to hike customs duty on the import of gold this month, gold imports soared by 15% to 75 tonnes in January. Though the government did go ahead and ultimately raise duties by 50% from 4% to 6% on January 21, bullion traders cornered most of the precious metal in the first three weeks of the month in anticipation of the hike in customs duty.

gold imports has declined considerably, shipments are expected to improve in February, given the wedding season in the country, he added. “Hike or no hike, Indians place an enormous value on gold. They enjoy flaunting their massive collections, especially at weddings,’’ said Bamalwa. The wedding season in India is slated to start early next week and will

The big, fat Indian wedding has always been the biggest bet for gold. Two thirds of the gold consumption in the country comes from jewellery purchases to mark weddings and other auspicious occasions. Traders say this portion of gold will not decline sharply because of high prices or custom duty hikes. At the most, buyers may economise on weight or resort to smaller pieces of jewellery.

India’s gold imports climbed to $56 billion from $21 billion between 2009 and 2012, despite an 81% price hike in domestic prices. The country’s Finance Minister has also indicated that the government is considering stringent measures to curb gold imports.”On January 2, the Finance Minister said the government was looking to bring down imports. That was enough for the trade, and it led to massive buying across all counters,’’ said Bachhraj Bamalwa, of the All India Gems and Jewellery Trade Federation. Post hike, though the quantity of

Mines To Market / Jan-Feb’2013

INDUSTRY WATCH

GIA Alumni Inspired by Engineering Techniques for Jewellery Traditional and innovative diamond cuts and jewellery manufacturing techniques

IA (Gemological Institute of America) and its Mumbai Alumni Chapter recently hosted jeweller Nirav Modi for a presentation on “Engineering with Jewellery Art” at the Institute’s Mumbai campus. Nearly 40 alumni members and students participated in the interactive seminar that delved into both traditional and innovative diamond cuts and jewellery manufacturing techniques. Modi gave attendees a behind-thescenes preview into his collections, highlighting two patented diamond cutting techniques: the Ainra cut and the Endless cut. Alumni and students were able to examine these cutting techniques up close with sample jewellery pieces from each collection.

of Firestar Diamond, began working in the diamond industry when he was 19 years old, eventually evolving into his role in curating and crafting fine jewellery. Modi’s pieces are regularly featured in major global auctions, including Sotheby’s and Christie’s.

“We would like to thank Mr. Modi for such an insightful and expert presentation. By showcasing his designs and techniques in a hands-on format, he has certainly helped inspire our alumni to envision innovations of their own designs,” said Manoj Singhania, education director of GIA in India and the Middle East. Modi, a third-generation diamantaire and chairman and managing director

Mines To Market / Jan-Feb’2013

INDUSTRY WATCH

Platinum Demand Set for Big Growth in India “We have noted that the buying occasions for Platinum Day of Love extend to engagements and weddings and in some Indian markets to festivals, birthdays and anniversaries also. While pushing hard to build on the core segment of platinum love bands, PGI’s continued efforts would be channelized to ensure that the category moves upward in the value chain and retailers take it forward into other jewellery types.”

ndian consumers are slowly coming out of their traditional taste and many of them are now opting for platinum jewellery in place of gold. This growing popularity and awareness among them is set to push platinum demand by 50% in India during next couple of years. Customers’ desire for a change from the perpetual gold with higher possibility of returns on their investment is also likely to grow platinum demand in India. Platinum witnessed a sharp advance where it has more than doubled over the recent years because of several reasons. The first three quarters of 2012 for platinum jewellery has

remained quite positive. “It is still in the primary growth stage so we are expecting demand to grow over the next few years. We are looking at an overall 40 to 50 percent growth in the coming season,” says Ms. Vaishali Banerjee, Country Manager India, Platinum Guild International (PGI). Many retail traders in India also have launched their own initiatives with their new range and collections in platinum. There are also bullion traders who offer platinum bars and coins today. Like all other metals it is traded in the metal exchange which determines the metal price. So given the value of platinum, platinum contracts in demat, eplatinum, the first of its kind in Indian commodity markets has been launched recently. With result that platinum has been showing consistent growth over the years and not volatile, many investors are also considering platinum for long term investment.

and China would remain engine of platinum growth in near future. Although platinum market has moved from a surplus in 2011 to a deficit in 2012, due to lower primary and secondary supplies, growth in large Chinese markets and rapid progress of lower base in India are mainly considered to be responsible for the rise in jewellery demand during 2012. Overall platinum demand in the China’s jewellery sector rose by 14 percent to 1.9 million ounces in 2012 which is the highest since 2009.”

Another market expert Mr. Johnson

Platinum market expert Dr. Jonathan Butler while taking a worldwide view of the platinum market’s performance in 2012 and how it would fare in 2013 says, “Advancing demand in India Mines To Market / Jan-Feb’2013

INDUSTRY WATCH

Matthey while giving outlook of platinum jewellery demand in 2013 expects one more positive year mentioning that the volatility of platinum prices, competition from gold and general levels of consumer confidence would be prime factors in deciding the precise level of global demand. Johnson Matthey forecasts that during first six months of 2013, platinum will trade on average at 1,625 USD and in a range of between 1,400 and 1,800 USD per troy ounce. This moderately bullish forecast, compared with platinum’s year-to-date performance is bands, PGI’s continued efforts would be channelized to ensure that the category moves upward in the value chain and retailers take it forward into other jewellery types.” Outcome of the recent research conducted with consumers pan India shows that awareness and knowledge about platinum has grown and the desire to buy platinum is much higher with the belief in platinum is growing stronger. Buyers understand and now prefer to have high quality diamond jewellery set in platinum. Article Courtesy www.gems2jewellery.com

responsible to the recent disruption to South African supplies as well as a rise in overall platinum demand in the next year. PGI has been campaigning hard to bring awareness about platinum jewellery in India and has now developed the ‘Phase 2 of Platinum Day of Love’ communication, a regular interaction programme with retailers and consumers, which would further build up the symbolism of platinum with everlasting love. Ms. Banerjee says, “We have noted that the buying occasions for Platinum Day of Love extend to engagements and weddings and in some Indian markets to festivals, birthdays and anniversaries also. While pushing hard to build on the core segment of platinum love Mines To Market / Jan-Feb’2013

ISRAEL SECTION

Leo Schachter Diamonds Again Leads the List with $317 Million in Exports

he annual list of Israel’s 25 largest polished diamond exporters was published by the Israel Diamond Controller’s Office in the Ministry of Industry, Trade and Labor. For the second consecutive year Leo Schachter Diamonds tops the list, with a net $317 million in 2012.

Second and third on the list of top exporters are M.I.D. House of Diamonds with $238 million and A.A. Rachminov Diamonds with $180 million. In 4th and 5th place are

Safdico (Israel) Ltd. with $154 million and Niru Diamonds Israel with $120 million in net exports.

publish their export figures. They accounted for $878 million or 15% of Israel’s net polished exports in 2012.

Next on the list are: E. Z. Diamonds in 6th place, with $95 million; Offer Mizrahi Diamonds in 7th place with $92 million; Andre Messika in 8th place with $87million and Yosfe Diamonds International in 9th place with $84 million. In 10th place is Poligem with $81 million in net polished exports.

The total sum of the polished exports of the top 37 companies (including those who asked not to be included) equaled $3.03 billion, or 54.3% of Israel’s net polished exports for 2012.

Total net exports of the 25 largest companies in 2012 stood at $2.15 billion, or about 38% of Israel’s net total polished exports of $5.7 billion. The list of 25 does not include 12 companies who chose not to

MID Received Israel’s Outstanding Exporter Award for 2011

sraeli diamond company MID House of Diamonds was presented with Israel’s Outstanding Exporter Award for 2011by Israel’s President Shimon Peres and Minister of Industry, Trade and Labor Shalom Simhon, at a ceremony yesterday at the President’s residence.

The ceremony was attended by Israel Diamond Exchange (IDE) President Yair Sahar, Israel Diamond Manufacturers Association (IsDMA) Bumi Traub, Precious Stones Exchange President Shlomo Eshed and Diamond Controller Shmuel Mordechai.

Each year the award is granted to Israel’s best exporting companies in a variety of fields. MID is one of 10 companies to win the award this year. MID House of Diamonds was established in 1994 by brothers Benny and Yossi Meirov. Headquartered in Ramat Gan, the company has offices in Los Angeles, New York, Belgium, Hong Kong, and Shanghai. MID manufactures diamonds and high-end diamond jewelry, supplying leading retailers and jewelry manufacturers around the world. In 2011, MID exported $239 million worth of

diamonds, making it Israel’s second largest diamond exporter. At the ceremony, Minister Simhon lauded the Meirov family, saying that they had contributed greatly to Israel’s economy. Benny Meirov said that he was greatly moved by the award and that it proved that the efforts that he and his brother had invested in MID were deserved.

Bumi Traub, who led the ceremony, said that he has known the Meirov family for many years and was very proud of their accomplishments. “There is nothing more exciting than seeing where you began and where you have arrived,” he said. Yair Sahar said he was gratified to note that for years diamond companies have been among Israel’s Outstanding Exporters. “We have the honor of representing a sector that is responsible for some $28 billion in revenue and annual exports of $11 billion – representing 25% of Israel’s exports,” he said. Mines To Market / Jan-Feb’2013

ISRAEL SECTION

Israel’s Polished Diamond Exports Totaled $5.6 Billion in During 2012 Recovery Reported in Third Quarter Continues accounting for 36% of the market. Hong Kong was the next largest market with 28% of exports, with Belgium accounting for 8%, Switzerland 5%, UK 5% and the rest of the world 18%. Moti Ganz, Chairman of the Israel Diamond Institute Group of Companies (IDI) said that he was confident that the Israeli Diamond Industry was back on track to renewed growth. “While the economic challenges of 2012 affected the entire diamond industry, we saw a marked recovery in Israel’s diamond trade from mid-year. This year we look forward to continuing this positive trend and even to beating our record of 2011,” Ganz said. hile the global diamond industry experienced major declines during the year, Israel saw a steady improvement in its diamond trade in the third and fourth quarters of the year, according

Israel’s net polished diamond exports stood at $5.6 billion for the year, compared to $7.2 billion for the same period last year, a decline of 23%. Mordechai said that Israel’s diamond trade seems likely to continue to improve in 2013 and return to levels of 2011, which was a record year. Israeli’s net rough diamond exports totaled $2.8 billion in 2012, compared to $3.5 billion in 2011, a 20% decrease. Net imports of polished diamonds were $4.27 billion, compared to $5.68 billion for the year, a 25% drop.

IDI Managing Director Eli Avidar said, “We are upbeat about Israel’s diamond trade in the coming year. The US economy is showing improvement, and so is Europe. The Israeli Diamond Industry has weathered the economic difficulties of 2012 and has emerged on a growth path. We’re proud to say that our industry is an island of stability.” Avidar added that the Israeli Diamond Industry continues to be a key factor in markets worldwide. “As a result of our members’ demand, IDI will organize industry participation in more trade shows and in additional markets during 2013,” he added.

Net rough imports stood at $3.8 billion, 13 % less than in 2011, when they totaled $4.4 billon. to Ministry of Industry, Trade and Labor Diamond Controller Shmuel Mordechai, who published figures for Israel’s diamond imports and exports during 2012. Mines To Market / Jan-Feb’2013

The United States continued to be Israel’s major market for polished diamonds,

UK SECTION

Spring Fair International bucks the high street gloom

pring Fair International, organised by i2i Events, opened on February 3rd 2013 at the NEC and welcomed over 68,116* visitor’s, including more than 5,000 international buyers looking to export British goods abroad - with overall visitor numbers up 6% on last year. Buyers attended from leading independent retailers and all of the UK’s major stores including Self ridges, House of Fraser, John Lewis, Hamleys, Harrods, Liberty, Tesco and Marks & Spencer were well represented. Spring Fair offered Europe’s largest presentation of trend-driven gift products to a market that is hungry for newness and originality. Around 300,000 new launches were showcased by 3,000 exhibitors operating across 13 different market sectors. The signs of economic recovery were indicated by the Spring Fair Retail Barometer, the show’s own major industry survey, which revealed that 82% of retailers are forecasting growth in 2013 and an improvement in consumer confidence. The positive atmosphere at the show bodes well for the retail trade in 2013 and beyond, demonstrating the resilience of our nation’s shop keepers and their determination to breathe

Ÿ Europe’s largest presentation of trend-driven gift products with

over 300,000 launches Ÿ Six per cent year-on-year rise in visitor numbers with 68,116* buyers in attendance Ÿ Spring Fair International generated an estimated £2 billion+ of business Ÿ Business content and insight into future trends from unrivalled speaker line-up new life into the economy in the year ahead. Over £2 billion of business is forecast to be generated by companies who participated at Spring Fair, making it one of the most important retail trade shows on the international calendar. As well as being Europe’s premier destination for sourcing new gift products, the show offered buyers an unrivalled content programme across eight seminar theatres, demo areas and full-scale catwalks. Household names Kirstie Allsopp, Sophie Conran, Lawrence Llewelyn Bowen and Delia Smith rubbed shoulders with Shadow Small Business Minister, Toby Perkins MP, trend experts from WGSN,

The next edition of Spring Fair International will take place from February 2 – 6 2014. “With so many British companies exhibiting, it was fantastic to see the strength of their product, something that was unilaterally praised by the buyers in attendance from across the globe. We hope that the optimism of the sector observed at Spring Fair is a true reflection of the performance of the high street over the year to come.” Mines To Market / Jan-Feb’2013

UK SECTION Pantone and Trend Bible at the show. Spring Fair is leading the way in ecommerce supporting retailers in making the transition from bricks to clicks. The ecommerce theatre was packed every day with retailers thirsty for answers to all of their of e-retail questions, from building online startups through to multichannel retailing and developing an e-commerce strategy. Key industry figures offered expert technical guidance on how retailers can harness the web to grow their business. Commenting on this year’s fair, Sarah Mclaughlin, Portfolio Director of Spring Fair International, said: “We are delighted that so many retailers attended this year’s Spring Fair and that they were placing such healthy orders with exhibitors. There was a real emphasis on innovation and creativity throughout the show, including the new Design Lab area which provided buyers with a new hot bed of creative talent.” “With so many British companies exhibiting, it was fantastic to see the strength of their product, something that was unilaterally praised by the buyers in attendance from across the globe. We hope that the optimism of the sector observed at Spring Fair is a true reflection of the performance of the high street over the year to come.”

Gold Mitigates Foreign-Exchange Risk when Investing in Emerging Markets

nvestors in emerging market assets can use gold to reduce the risks associated with exchange-rate volatility and benefit from significant cost efficiencies, according to a new report from the World Gold Council. Exchange-rate risk is a serious and increasingly relevant issue as investors in the US and other developed economies look beyond their domestic markets to diversify their portfolios and pursue opportunities for greater returns. Given the significant changes in the global economic landscape over the past decade, conventional wisdom about exchange-rate hedging has evolved. The robust growth in emerging markets and aggressive monetary policies in developed markets have resulted in expanded interest-rate differentials and, consequently, increased traditional exchange-rate hedging costs. Given the current trade-off between the costs of

Exhibitor and visitor feedback indicated that this was an exceptional show, particularly given the tough retail environment and challenging economic conditions. The atmosphere was buoyant and upbeat throughout the week as visitors turned up early in the mood for buying. Tom Sykes, general manager for major giftware supplier Xystos commented: “We have seen a phenomenal number of international buyers from Africa, Europe and Australia. In terms of new leads, it continues to amaze me how many we are getting which translate into good orders.”

Juan Carlos Artigas, Global Head of Investment Research at the World Gold Council, said:

Mary Liz from US store Leon and Lula, who participated in the hosted buyers programme, said: “The Spring Fair was terrific! It was big, it was beautiful and, most important of all, we found several new lines that will be

“Gold’s unique characteristics as an asset and currency hedge are particularly relevant to investors with emerging-markets exposure, where currencies and asset prices are more vulnerable to price swings and tail-risk

Mines To Market / Jan-Feb’2013

hedging and its benefits, many investors opt to leave their allocations un-hedged, exposing their portfolios to significant downside risks.

events. Using a gold overlay can reduce currency-related losses, without increasing the opportunity cost or negating the potential benefits of investing in emerging markets. “Gold has a positive correlation to

emerging market growth, and a negative correlation to the US dollar and other developed-market currencies. Gold has a low investment cost relative to traditional foreign exchange hedges and is a proven hedge against tail-risk. Given these qualities, there is a strong argument for complementing existing exchange-rate hedging strategies with gold.” The World Gold Council report, Gold and currencies: hedging foreign-exchange risk, explores the advantages and costs associated with hedging foreignexchange exposure. The analysis demonstrates that portfolios with emerging-market exposure hedged using gold, exhibited improved performance. Hedging with gold resulted in lower costs and levels of risk and higher returns, when compared with portfolios using a purely currency-based hedge, or no exchange-rate hedge at all.

INDUSTRY WATCH

Key findings: Gold offers significant benefits in optimising risk-adjusted returns during periods of extreme market stress and heightened currency tailrisk. Over eight periods of crisis conditions examined in the report, including gold in currency-hedging strategies in an emerging-market portfolio offered cumulative outperformance of 2.4% above an unhedged portfolio and over 1% above a currency-hedged portfolio.

Diamond Buyers Must Say No to High Prices

apaport intends to introduce a certification scheme about the origin of a particular diamond in India, Chairman of the Rapaport Group Mr. Martin Rapaport said. Mr. Rapaport was briefing the media persons after inauguration of the Group’s new office at The Capital, situated in the posh business locality of Bandra-Kurla Complex, Mumbai.

on tax hikes. In December, the RapNet Diamond Index said that price of 1ct polished diamonds was flat. Meanwhile 0.3ct, 0.5ct and 3ct diamonds showed slight increases, the first monthly increases since March.

The Source Certificate would enable a consumer to obtain a higher level of assurance that an industry product, such as rough or polished diamonds, was NOT obtained from a ‘Conflict Source’ which can be a country or person that industry participants have agreed not to buy or sell diamonds from/to as part of their commercial negotiations. Adding a gold overlay to emergingmarket assets reduced portfolio peakto-trough declines over the past decade, on average, to 9.2% from a 12.5% decline in currency-hedged portfolios, and a 13.1% decline in unhedged portfolios. The costs of implementing a goldbased hedging strategy are smaller than those associated with most currency hedges for emerging market currencies. The average costs of hedging a basket of emerging-market currencies is currently over 4% compared to less than 50 basis points on borrowing costs for a gold overlay. While this study focuses on emerging market investment and currency hedging from a US dollar perspective, its findings have wider ranging applications and are broadly compatible with other research on the merits of gold as a foundation to portfolios, from the World Gold Council and independent global advisory firms including New Frontier Advisors and Oxford Economics. There is now a substantial body of statistical evidence indicating that an allocation to gold between 2-10% is optimal across a range of risk profiles, economic environments and currencies.

This would add more value to the diamond and bring more transparency in the diamond trade, he said. Mr. Rapaport said that diamond buyers should say no to high prices in 2013 after certified polished diamond prices dropped 12.5% in 2012. The RapNet Diamond Index, a service run by Rapaport, said that the price drop was led by global economic weakness causing growth to stall in China and declining demand in India following what it called “poor government policy”. The Rapaport Special Report released in Jan 2013 claims that demand for diamonds was steady in the US throughout 2012, something it credited with sustaining the jewellery industry, but said that consumer spending softened in December as consumers lost confidence in the face

The group has said that rough trading remained quiet in 2012 with improved demand for non-De Beers goods, which it claims continued to offer better value than De Beers rough. It said that manufacturers, which gained slightly better profit margins in December, expressed concern that De Beers and Alrosa might raise rough prices in the first quarter as the mining companies continue to limit supply. Rapaport said that forecasts for pending diamond price increases are premature and warned that the jewellery trade should be careful not to inflate prices by buying diamonds on credit, adding that “bank credit that enables firms to buy diamonds at unsustainably, artificially high prices must be stopped”. Rapaport said: “Given expectations that the fiscal cliff will reduce demand for luxury products due to higher taxes, increased unemployment and reduced government spending, responsible companies should refuse to buy diamonds at prices that do not allow for healthy profits. Buyers should just say no to high prices. The real value of diamonds must be based on real money from real buyers.” Mines To Market / Jan-Feb’2013

AWARD-N-HONOR

GJF organizes 3rd edition of National Jewellery Awards 2013

he third edition of the most awaited National Jewellery Awards (NJ) organized by the All India Gems & Jewellery Trade Federation (GJF) was held on Feb 22nd in Mumbai with recognized meritorious jewellers of the country at

ITC Grand Maratha – open lawns, Mumbai. The third edition of the National Jewellery Awards organized in 2013 was primarily about highlighting every excellent aspect from every crucial segment of the jewellery industry. The platform for this award is created by a panel of highly qualified people. GJF sought the winners on various attributes from 29 categories. The glittering night acknowledged 32 Gems of the Jewellery Industry and recognized them with the biggest jewellery award “GJF’s NATIONAL JEWELLERY AWARD”. GJF sought the winners on various attributes from 29 categories where three added categories were also awarded with Anmol Ratna Award, Jewel of the Year Award and Gem of the Year Award. Guests escaped into the glittering ambiance, during the evening guests were entertained by the enthusiastic Fashion Show and also partied over cocktail dinner. The NATIONAL JEWELLERY AWARD was supported by International Gemological Institute (IGI) as the presenting partner and was powered by BVC Logistics. Bachhraj Bamalwa, Chairman GJF said, “NJA 2013 is about creating inspiration, passion and motivation for the industry. GJF´s unbiased and relentless efforts for the welfare of

Mines To Market / Jan-Feb’2013

gems and jewellery industry has won itself accolades and an unquestionable credibility of being fair, supportive and appreciative towards the industry. The trust and faith of its members, industry and government have undoubtedly contributed to this nonprofit organization’s growth in the gems and jewellery sector.”

AWARD-N-HONOR

Hollywood’s Biggest Stars Wear Platinum Jewelry to the 85th Annual Academy Awards

ollywood’s biggest stars celebrated their achievements wearing platinum jewelry at the 85th Annual Academy Awards and related parties this evening.

Charlize Theron in Platinum by Harry Winston -Vintage 1959 Platinum Lattice bracelet (58.07 total carats) -Vintage 1959 Platinum Cluster bracelet (57.30 total carats) -Platinum and diamond marquise Lattice bracelet -Platinum and diamond ear studs (5 carats each), $1.6 million -Platinum and marquise cut diamond ring

From Anne Hathaway’s stud earrings to Naomi Watts’ cuff bracelet, Hollywood’s leading actresses chose to showcase their jewels in naturally white platinum settings that truly enhance the brilliance of diamonds and colored gemstones. Platinum is the precious metal that never changes color nor fades. It’s the ideal choice for life’s most unforgettable moments.

Following is a list of stars who celebrated tonight’s achievements in PLATINUM: Anne Hathaway in Platinum by Tiffany & Co. -Platinum and diamond Corsage necklace worn down her back ($485,000) -Platinum and diamond stud earrings ($39,300) -Platinum and diamond Fringe bracelet ($200,000) -Platinum and diamond Paisley bracelet ($115,000) Jennifer Garner in Platinum by Neil Lane -Darkened platinum and diamond necklace (200 carats) -Darkened platinum and diamond earrings -Darkened platinum and diamond bracelet Total platinum look = $2.5 million Amanda Seyfried in Platinum by Lorraine Schwartz -Platinum and diamond earrings Naomi Watts in Platinum by Neil Lane -Platinum and diamond drop earrings (20 carats) -Platinum and diamond bracelet Total platinum look = $1.5 million

Mines To Market / Jan-Feb’2013

AWARD-N-HONOR Kerry Washington in Platinum by Fred Leighton -Old European cut platinum and 9carat diamond ring Renee Zellweger in Platinum by Van Cleef & Arpels -Platinum double fan clip from 1937 featuring 52.5 carats of rubies, and 10.80 carats of diamonds Zoe Saldana in Platinum by Neil Lane -Platinum and diamond chandelier earrings with pearls -9 Platinum and diamond rings Total platinum look: $1 million of platinum jewelry

Sandra Bullock in Platinum by Harry Winston -Platinum and diamond cluster brooch -Platinum and diamond ring -Platinum and round diamond ear studs

Jewelry Trend at the Oscars: Platinum and diamond stud earrings - As seen on Sandra Bullock, Anne Hathaway, and Charlize Theron.

Adele in Platinum by Harry Winston -Platinum and diamond cluster earrings ($1 million) -Platinum and diamond ring

Platinum is popular on the red carpet since it holds diamonds and colored gemstones most securely, and makes them sparkle.

Oscars Jewelry Trend: Platinum and diamond stud earrings

International Consortium of Gem Testing Laboratories

n the month of December 2012, seven gemmologists from different corners of the world, viz. from Canada, Germany, Hong Kong, India, Japan, Singapore and Thailand, got together to form the International Consortium of Gem Testing Laboratories. This International Consortium, initiated by Dr. Jayshree Panjikar and Mr. Henry Ho, aims to unite independent laboratories around the world, in order to share and exchange knowledge and experience. In doing so, the ICGL would be providing each laboratory an access to a pool of experts, as well as a common platform to communicate for the betterment and advancement of its members. About 30 independent professional gem testing laboratories are expected to be invited to join the consortium based on their expertise and as per the criteria laid down in the rule-book of ICGL. A data centre is Mines To Market / Jan-Febâ&#x20AC;&#x2122;2013

expected to be set up to archive articles and lab data, such as the origins of gemstones. The latest information on gem treatments, advanced lab testing techniques, mines, general educational and training, diamond treatments are among the many topics that have been mentioned as part of the objectives of this initiative. The purpose of ICGL is to promote excellence in the field of gemmology, and to reach out the final customer by providing reliable sources as an alternative to the plethora of

misleading information available today, in particular on the internet. Besides, the ICGL plans to undertake joint research projects, including the publication of documents and articles, and other relevant laboratory activities. Accordingly the first Newsletter of ICGL was released at the 2013 Tucson Fair by Branko Deljanin in the USA.

CLOSER TALK

Dipti JhaveriEager to Make a Mark in the

“Global Arena”

he versatile jewellery designer Dipti Jhaveri from Mumbai has added another milestone in her sparkling career when she won the coveted ‘JJS IJ’ Award 2012 for her distinguished collection. Ms. Dipti speaks to M2M about her collection and other issues. The excerpts: What is so unique about the design for which you received the award? It is a breathtaking blend of Gold, Diamonds and Jadau. It has a very antique look but yet gives a very modern touch, which makes two ends meet. What does this award mean to you? I feel honoured to have been nominated and to have won this award. And it obviously means the world to me. It feels like a

Diamond studded star is placed on my shoulders as a token of Love and appreciation given to me by the voters.

I was inspired by ancestral jewellery. The intricate carvings and delicate motifs also narrate a story of its own.

How you were inspired to create this design?

Government has recently increased import duty on gold from 4 to 6%. How would it affect the jewellery trade? It would definitely increase the cost of production and as a result, there could be an adverse impact on demand. What is your ambition? My main ambition is to make a mark in the “Global Arena” by 2020. Besides that, I’m always thinking about the next thing. I have started working on my upcoming collection which will be showcased at IIJW & IIJS Hall no 1. Booth No: A1-101.

Mines To Market / Jan-Feb’2013

NEW LAUNCH

TBZ - The Original now in Aurangabad

ribhovandas Bhimji Zaveri Limited (“TBZ – The Original”), the well-known and trusted Mumbai-based jewellery retailer with a pan-India presence and rich legacy of over 150 years, marked its foray into Marathwada with the opening of its first exclusive store in Aurangabad to cater to fast-growing local communities of the region. This is TBZ’s 10th store in Maharashtra. In the last few months, The Company has opened 10 stores in cities of Pune, Mumbai, Vadodara, Kolkata, Vapi, Bhavnagar, Vasai, Nagpur and now in Aurangabad. With the opening of this new store, TBZ- The Original now has 23 stores in 17 cities across 6 States including Maharashtra, Gujarat, Madhya Pradesh, Kerala, Andhra Pradesh and West Bengal. TBZ’s exquisite 4,300 sq. ft. store is located at AG Pride, near Ratnakar Bank, N3 Jalna Road, Aurangabad. The key management team of TBZ Ltd. was present on this momentous occasion. The chief guest for the occasion was Smt. Kala Oza. The opening of TBZ store and the display of the all new Bridal Collection is timed well to serve the customers during the auspicious Uttarayan and the pre-wedding buying season. In fact, customers can avail a special offer of 50% discount on Diamond Jewellery making charges and 35% off on Gold Jewellery making charges for Uttarayan and the forthcoming prewedding buying season. Mines To Market / Jan-Feb’2013

Mr. Shrikant Zaveri, Chairman and Managing Director, Tribhovandas Bhimji Zaveri Limited, said, “TBZ is proud to open its 10th store in Maharashtra in the State’s Tourism Capital, Aurangabad. Bringing along century-old values of Tradition, Trust and Transparency, we present a vast range of gold and diamond jewellery that no other jeweller has and customers will be spoilt for choice! TBZ–The Original caters to all sections of the society and we are confident that the arts & culture loving people here will warmly embrace our 150-year legacy of trust, superior craftsmanship and innovation as well as fantabulous designs, which can never be replicated! TBZ Collections are a must-have for every occasion – be it wedding, gifting, outings & get-togethers with families/ friends.”

Collection, Mr. Kiran Dixit, Group Head - Advertising and Marketing, TBZ Ltd., commented, “Wedding specialist TBZ–The Original brings to Aurangabad the time tested and most appreciated Bridal Collection to meet the multi-facetted needs of brides. TBZ-The Original’s new Bridal Collection is a classic example of design superiority and production innovation that explores many creative possibilities and reflects the deep rooted aspirations of Indian brides.” Rounding up TBZ’s exciting various offers during this festive season is the signature collection of TBZ such as The Dohra Collection, the Temple Jewellery Collection, Surprises Collection, Necklace Collection and the Showstoppers Collection! These Collections have always been warmly received by consumers, who have appreciated their originality and exquisite detailing as well as penchant for meeting their diverse needs. The new TBZ store in Aurangabad has an elegant interior with customerfriendly ambience with amenities such as ergonomic displays, comfortable chairs and ambient lighting all to ensure that customers enjoy a unique experience.

TBZ’s Aurangabad also showcases the recently unveiled aweinspiring Bridal Collection for fulfilling the innate needs of Indian brides, who are constantly seeking to balance tradition with modernism; indulgence with elegance; and style with sophistication. It also offers the new scintillating ‘Showstopper’ jewellery collection in gold and diamonds for all occasions such as social gatherings, gettogethers and parties. Referring to the Bridal

NEW LAUNCH

Swarovski Gems Launches New Cut for Topaz

warovski has launched a new cut specifically for topaz, which the company boasts increases the stone’s maximum light return and fire well above that of any other topaz on the market. Swarovski Gems calls this new cut for natural topaz, Natural Brilliance, and it says now achieves a 130 per cent higher brilliance than any other topaz. The new cut was revealed at Vicenzaoro Winter 2013, the first international jewellery fair of the year, held in Vicenza, Italy. The company claims the Natural Brilliance cut for topaz was designed and evaluated using the Gemological Institute of America’s profound parameters for the obtainment of maximum light return and fire – the two key factors for the brilliance of a cut stone. A spokesperson for Swarovski said the

company has been working with the material for many decades and expects to see an increase in the demand for the natural stone’s great brilliance, especially in white, being that it is suitable for daily wear and special occasions. ‘’We also offer our Natural Brilliance topaz in a variety of vivid colours. These colours are achieved through a unique radiation-free treatment and are completely safe for the consumer,’’ the spokesperson said. ‘’The innovative TCF treatment is proven to be permanent and able to sustain cast-in-place production methods and cleaning processes.’’

The spokesperson said the company “places particular emphasis on the perfect symmetry and superb finish of its topaz, reaching an unerring consistency and uniformity of size, shape and dimension’’. Customers can be ensured that these perfect, harmonious proportions are achieved on each and every Swarovski Genuine Topaz, the spokesperson said. Regardless of the size of the order, a diameter tolerance of +/- 0.05 mm is ‘’guaranteed’’. For manufacturing jewellers, “The exquisite stones bring artistry and visual excitement but are also quick and easy to set, simple to match, with fewer potential pitfalls of chipping or wastage”. The Natural Brilliance cut stones are available through Swarovski’s authorized Australian supplier, O’Neils Affiliated. The spokesperson added that Swarovski was “in discussion with one of our Australian partners to launch a jewellery collection made with Natural Brilliance Swarovski Genuine Topaz”.

Mines To Market / Jan-Feb’2013

NEW LAUNCH

Hari Krishna Exports Pvt.Ltd. opens its new office at “The Capital” in Bandra Kurla Complex

ari Krishna Exports Pvt.Ltd. and “KISNA” diamond Jewellery moved to its new 25000 sq.ft head office on the seventeenth floor of “The Capital” at Bandra Kurla Complex , Mumbai (India) on the 13th February 2013. The inauguration ceremony was done by Mr.Philippe Mellier and Mrs.Varda Shine from the De Beers Group in the presence of distinguished guests and dignitaries from the banking and diamond fraternity. This new office is one of its kind in India with all departments including sales, assortment, banking, accounting,online sales etc at one

location . All four brothers who are directors of the company, along with other members of the Hari Krishna family were present on the occasion. Mr.Philippe Mellier in his address lauded Hari Krishna’s efforts in developing its business dealings in more than 65 countries and said that

Mines To Market / Jan-Feb’2013

this new office is an indication of what a good diamond family business could achieve. He wished all success in the endeavours undertaken by Hari Krishna Exports Pvt.Ltd. Mrs.Varda Shine also conveyed her best wishes on the occasion. Speaking at the inauguration, Mr.Ghanshyam Dholakia said, this new office offers a better buying

experience to our valued clients and a better working environment to our employees. It will certainly boost our productivity and therefore our profitability. The company has set itself high ethical standards for it functioning inspired by leaders such as the Tatas and has endeavoured to provide a friendly and inspiring work

environment on the lines of the Google. Shifting the office from Opera House to the premises outside the Bharat Diamond Bourse was a challenging decision to make. The company is confident that its loyal

clients will not mind where the company operates from. The company also launched its new fifth generation website during the opening through the hands of Mr.Martin Rapaport. He conveyed his best wishes for success in further developing the online business.

NEW LAUNCH

The Main Attraction of Vibrant Gujarat, 2013 was the Launch of Gold & Silver Jewellery Car Made with SWAROVSKI ZIRCONIA SWAROVSKI GEMSTM India in association with Heera Zhaveraat & Bhindi Manufacturers showcases Vibrant Gujarat Jewellery Car Made with SWAROVSKI ZIRCONIA, made in 22 KT gold and 999 Silver. The car is manufactured by Bhindi Manufacturers & Concept, Visualization is by Heera Zhaveraat. enhanced the beauty & value of the car.

Concept A brand-new automobile, a Concept Car, designed and studded with SWAROVSKI ZIRCONIA, product from SWAROVSKI GEMSTM made in Gold & Silver and manufactured by Bhindi Manufacturers, Rajkot, was on showcase at the Vibrant Gujarat event. A themed pavilion highlighting the Jewellery car is being placed at the center surrounded by 100 sq. mtrs of open space. The display was kept on a rotating stand complete with specialized decorative flowers and led lights from 8th Jan -13th Jan 2013

Product Details:

glimpse of the Jewellery car.

20,000 Pure Brilliance SWAROVSKI ZIRCONIA stones from SWAROVSKI GEMS™, 22KT Gold – 2 Kgs and 999 Silver – 30 Kgs from Bhindi Manufacturers, Rajkot.

This Jewellery car was completed in 20 days and 50 skilled workers have worked day & night to create this masterpiece

Product Sponsors: SWAROVSKI ZIRCONIA – product from SWAROVSKI GEMS™ known for its pure brilliance and laser engraved, innovative cut and colors, made in 22 KT Gold & 999 Silver manufactured by BHINDI MANUFACTURERS, Rajkot. This incredible Jewellery car was the the major attraction at the Vibrant Gujarat 2013 and fascinated millions of visitors every day. This unique Concept car was accompanied by the distinguished and eminent representatives of the corporate world. A host of dignitaries from ministry, local & international print & electronic Press media & celebrities as well as people all around India were excited and visited every day at the Vibrant Gujarat show to have the

Rajendra Jain, Managing Director of SWAROVSKI GEMS™ India commented on the occasion - “First of all I would like to convey our thanks to both our associates for their collaboration with SWAROVSKI GEMS™ in the prestigious Jewellery Car project. This incredible Jewellery car made with SWAROVSKI ZIRCONIA is dedicated to the Vibrant Gujarat 2013 and Hon. Chief Minister of Gujarat, Shri Narendra Modi. This unique and creative bejewelled Car witnesses the collaboration of Gems & Jewellery and Automobile Industries that opens the new door for the future business opportunities. It was an honor for SWAROVSKI GEMS™ India to offer their products pure brilliance & laser engraved SWAROVSKI ZIRCONIA stones that

A 100 Sq. mtrs. Separate Theme pavilion was created at the middle of the Vibrant Gujarat trade show; pavilion covers all angles of other business pavilions of the show. Theme pavilion was decorated by colorful flowers design and exclusive branding by SWAROVSKI GEMSTM, Bhindi Manufacturers & Heera Zhaveraat. It was declared as the main attraction of Vibrant Gujarat and has two Entry gates one Entry is For VVIP/VIP/Celebrity/Media and organizers and second Entry was for the general public. Visitors had to stand far from car by 20 Ft. and more than 1000 Visitors could take “Darshan” at single time. Such a concept was first for India and given its uniqueness. The event has received the live coverage on Radio and TV channels besides other media. Organizers have also been in contact with the Guinness Book of World Records as well as the Limca Book of Records to secure a mention of the world’s first studded gem and jewellery automobile Vibrant Car in their respective books, as no such concept is known to previously exist in any other part of the world. Mines To Market / Jan-Feb’2013

NEW LAUNCH

Kalyan Jewellers opens its 45th Showroom in Visakhapatnam Superstar Akhineni Nagarjuna

o embark on its national expansion plans Kalyan Jewellers, India‘s leading jewellery chain will set up its 45th showroom in Visakhapatnam, Andhra Pradesh. This is Kalyan Jewellers 11th showroom in the state. This showroom is spread over 1500 square feet and four floors. It will be inaugurated by Telegu super star and Kalyan Jewellers brand Ambassador Sri Akhineni Nagarjuna at 11.30 am. Speaking on the occasion Mr. T.S. Kalyanaraman, Managing Director, Kalyan Jewellers said; “Kalyan Jewellers today enjoy a strong association and trust. The launch of our new store is a glaring example of Kalyan Jeweller’s success and the prized appreciation of customers that the brand has won over the years. The launch of our store in Visakhapatnam underlines the importance of this dynamic market. We are hopeful that Kalyan Jeweller’s tryst with Andhra Pradesh will make more jewellery aficionados appreciate the brand and its unparalleled collection of Jewellery. This launch is aimed at expanding the shopping horizon of the people in the city, while providing a greater level of choice, convenience and satisfaction” Kalyan Jewellers are planning to open 5 more showrooms in this financial year. The next showrooms in Surat, Mumbai and Pune will be opened in the last quarter of 2012. Kalyan aims to have 100 stores spread across India by 2015. Kalyan has been at the forefront of pioneering efforts to educate the public of cheating and malpractices in gold quality and pricing through their campaign ‘Fight against Impure Gold”.

Adorn yourself with awe-inspiring eternity bangles from Entice Jewellery

nspired by sensuality, crafted with zeal, Entice jewellery recreates the love for diamonds with its new assortment of bangles. The striking pieces of eternity bangles are designed classically that would enthuse every women of today. The collection is a mélange of simple yet elegant bangles that can be

worn on across occasions. This assortment is crafted with diamond, stones, emerald, etc symbolizing love, purity and eternity. Eternity bangles from Entice Jewellery are bound to enchant the inner diva in you! Price: On request

Mr. AmitabBachchan and Mrs. Aishwraya Rai Bachchan will represent Kalyan Jewellers nationally. To represent the company regionally they have stalwarts like Nagarjuna in Andhra Pradesh, Sivaraj Kumar in Karnataka, Prabhu in Tamil Nadu and Dileep in Kerala. Mines To Market / Jan-Feb’2013

NEW LAUNCH

Forevermark, The Diamond brand from the De Beers Group of Companies is pleased to partner with A.S Motiwala Jewellers In Mumbai

orevermark, the diamond brand from the De Beers Group of Companies has partnered with A.S Motiwala in Mumbai to offer its patrons exquisite range of diamond jewellery and elegant masterpieces. At the event, actor Huma Qureshi unveiled Forevermark Encordia collection and jewellery with exceptional Forevermark diamonds. Also present on the occasion were Stephen Lussier, CEO , Forevermark, Sachin Jain, Managing Director, Forevermark - India along with Ashraf Motiwala, Joint Managing Director, A.S Motiwala Jewellers. Comprised of exquisite jewellery pieces, The Forevermark Encordia™ Collection is designed to symbolize the unique and emotional bond between two people. It is available in a range of exquisite contemporary designs including rings, bracelets, pendants and earrings. Also on display was a Victorian inspired, beautiful three line necklace crafted with Forevermark diamonds by Tashe and a rare Forevermark 10 carat fancy cushion shaped yellow diamond set in a stunning neckline. Forevermark only partners with authorised Forevermark jewellers such

as A.S Motiwala Jewellers, who are selected not only as leaders in their field, but also as those who meet the brands particularly stringent requirements of business, social and environmental integrity. Speaking on the occasion, Stephen Lussier, CEO, Forevermark said, “India is an extremely important and growing market for Forevermark and extends significant sales opportunity for us. Forevermark is committed to worldwide expansion and extending the promise of beauty, rarity and responsible sourcing to all our customers is an integral part of that vision. Forevermark is honoured to introduce this promise to the clients of A.S. Motiwala. We aim to provide each customer with a unique and warm experience and exceed the expectations of our customers with our knowledge of fine diamonds and exquisite designs.” Sachin Jain, Managing Director of Forevermark, India states, “A.S. Motiwala is a fine Jewellery brand for people who have an eye for priceless jewelry with exceptional quality. Their diamond jewellery is exquisite in terms of design, clarity and cut. We are glad to associate with A.S Motiwala Jewellers in Mumbai as they

also practice highest levels of quality control to ensure that the customer gets nothing less than a perfect product.” Sharing his views about the association Ashraf Motiwala, Joint Managing Director, A.S Motiwala Jewellers states, “We are pleased to partner with Forevermark as it offers an unparalleled assortment of solitaires and diamonds, thus making this association extremely valuable. Forevermark jewellery is crafted to perfection and is designed to suit the contemporary Indian sensibilities. With this association, we will be able enhance our customer’s experience and offer them the best in diamond jewellery.” Forevermark diamonds are the world’s most carefully selected diamonds. Each Forevermark diamond bears a unique inscription at its heart. This inscription is a promise that the diamond has been carefully selected to meet Forevermark’s standards of quality and integrity. Less than one percent of the world’s diamonds are eligible to become a Forevermark diamond.

Mines To Market / Jan-Feb’2013

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10th Jovella Jewellery Exhibition in Tel Aviv in July As in previous years the show will feature a special section of young Israeli jewellery designers showing original gold, silver and diamond jewellery.

he 10th edition of JOVELLA, Israel’s international jewellery and diamond exhibition, will be held on July 2 -3, 2013 at Tel Aviv’s Trade Fairs and Convention Center. Once again the exhibition is being organized by the Stier Group, in collaboration with by the Israel Jewellery Manufacturers’ Association (IJMA), the Israel Ministry of Industry, Trade and Labor (IDI), the Israel Export and International Cooperation Institute and the Israel Diamond Institute Group of Companies (IDI). Jovella is the leading event of the jewellery industry in Israel. It offers both domestic and foreign buyers an opportunity to explore Israel’s diamond and jewellery industries, and to meet some of the most innovative designers and manufacturers in the country. Israel’s jewellery is known for fresh designs and a dynamic spirit, based on a fusion of modern and traditional, east and west, conventional and futuristic. Jovella will showcase jewellery that features creative designs, up-to-the- minute fashion, excellent quality, and a combination of the exotic and the cosmopolitan.

“This year, our 10th anniversary, we expect a record participation of buyers from abroad. Israeli jewelry has a lot of offer, especially with consumers’ heightened interest in silver and fashion jewellery. As Israeli jewellery designers have made important inroads into international markets, we believe that buyers will flock to Tel Aviv this year to seek the next Big Thing.”

According to organizer Israela Stier international interest in Jovella has grown every year. “This year, our 10th anniversary, we expect a record participation of buyers from abroad. Israeli jewelry has a lot of offer, especially with consumers’ heightened interest in silver and fashion jewellery. As Israeli jewellery designers have made important inroads into international markets, we believe that buyers will flock to Tel Aviv this year to seek the next Big Thing.” In 2012, Jovella attracted over 12,000 trade visitors, including buyers, retailers, journalists and distinguished guests from abroad. The United States is the Israeli jewellery industry’s largest export market, followed by Europe and the Far East. Besides the US, Israel’s jewellery is exported to Russia, the UK, Hong Kong, Canada, Belgium, Italy, Spain, France, Japan and other locations.

The 10th show will include approximately 250 exhibitors from Israel and abroad, showing loose diamonds, gold jewelry, gold set with diamonds or precious stones, silver jewellery, silver combined with gold and gemstones, as well as fashion jewellery. Mines To Market / Jan-Feb’2013

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UBM’s Mumbai Fair on Growth Track “We are at the fair to evaluate workmanship and to see if India exceeds quality measures, we would like to purchase loose diamonds and create an agency for business in India. The fair has a good display of jewellery with interesting and new designs. We look forward to future collaborations with India.” India with the addition of their newest jewellery fair in Kolkata.

he second edition of Mumbai Jewellery & Gem Fair (MJGF) demonstrated strong growth of 31%, from the previous edition, in terms of visitors, and higher engagement with more repeat visitors attending the knowledge-sharing sessions presented by GIA, MCX with a commodity-related presentation, eBay’s session regarding international e-Selling and panel discussions with the crème de la crème of the industry including Ishu Datwani , Bina Goenka and Varuna D. Jani. The success of the fair was further highlighted with the announcement that UBM would be investing in the gems and jewellery industry in East

The three-day exhibition was a convergence of over 120 exhibitors and participation of some of the key design houses from Dubai, Germany, Turkey, China, Sri Lanka, Hong

“We are satisfied with the show and this is a good forum to showcase the latest collections and gauge response of the newly launched products. The response that we received was tremendous and exceeded expectations. We look forward to be a part of the next edition of MJGF and other UBM shows as well.”

Kong, Thailand and Israel at the international pavilions. Indian jewellers including Gitanjali and many more displayed a kaleidoscope of jewels. A representative from Jai Gulab Dev Jewellers expressed, “We are satisfied with the show and this is a good forum to showcase the latest collections and gauge response of the newly launched products. The response that we received was tremendous and exceeded expectations. We look forward to be a part of the next edition of MJGF and other UBM shows as well.” Mumbai Jewellery & Gem Fair, organised by UBM saw an impressive number of jewellers and traders from International countries and from across India including major supporting associations visited the jewellery fair making it a grand success. With regard to the benefit to local jewellers, Shri Fatehchand Ranka, President of Maharashtra Rajya Saraf

Mines To Market / Jan-Feb’2013

SHOW TIME “India has tremendous growth potential in the gems and jewellery sector. The second edition of the Mumbai Jewellery and Gem Fair (MJGF) organised by UBM is an action-packed event for jewellers to learn essential skills and make the necessary connects in the industry while providing a glittering display of the latest trends in jewellery. UBM’s expanding jewellery exhibition portfolio in India and Asia continues to flourish with larger fairs, increased participation and visitor traffic. The Mumbai fair will set the stage for a multitude of opportunities for the Indian jewellery market.”

Suvarnakar Federation shared, “MJGF provided a platform for our association to discuss important issues. Skill development in India is an area of improvement for the jewellery industry. Most of the jewellers have been adhering to measures like hallmarking, weight and more quality measures.” He further added, “Every city of Maharashtra can contribute to India’s business growth plan to benefit the traders and jewellers in order to create a platform for ethical trade practices.” Mumbai Jewellery & Gem Fair welcomed an international buyer

delegation from Tianjin, China. They came to India to explore trade opportunities for gold and diamonds. One member of the Chinese delegation was excited to say, “We are at the fair to evaluate workmanship and to see if India exceeds quality measures, we would like to purchase loose diamonds and create an agency for business in India. The fair has a good display of jewellery with interesting and new designs. We look forward to future collaborations with India.” This year’s fair featured a pavilion dedicated solely to machinery companies, which was well-received by visitors and garnered significant interest. Mr. Mukesh Mehta of Pragati Diamond Tools in the Machinery Pavilion commented, “We reaped 101% benefit from the first day at the fair and received good response as a first time exhibitor. We got many inquiries and orders for our machinery and tools.”

Another added highlight of the exhibition this year was the Style Statement Gallery showcasing highend jewellery pieces, which will define the Indian jewellery trends for 2013. The brands displayed were wellrecognized and enjoyed the hautecouture status in the industry, and are also featured in the Style Statement Coffee Table Book. The gala Style Statement event which took place after the first day of the exhibition with fashion shows displayed the dazzling array of jewellery collections while celebrities like Marc Robinson , actor Eijaz Khan , celebrity fashion designer Narendra Kumar Ahmed and Miss India 2012 Vanya Mishra amongst many others added glitter to the evening. The jewellery exhibition witnessed a total attendance of 5612 buyers and sellers with 3483 unique buyers visiting over the course of three days. Mr. Joji George , MD, UBM India stated, “India has tremendous growth potential in the gems and jewellery sector. The second edition of the Mumbai Jewellery and Gem Fair (MJGF) organised by UBM is an action-packed event for jewellers to learn essential skills and make the necessary connects in the industry while providing a glittering display of the latest trends in jewellery. UBM’s expanding jewellery exhibition portfolio in India and Asia continues to flourish with larger fairs, increased participation and visitor traffic. The Mumbai fair will set the stage for a multitude of opportunities for the Indian jewellery market.”

Mines To Market / Jan-Feb’2013

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Bigger GJIIE 2013 this Time Hong Kong, Thailand, Japan and USA displayed their wares. This year’s event would be 50% larger than in 2012 with over 260 companies taking part.

ith the overwhelming response received on the 8th edition of Gem & Jewellery India International Exhibition (GJIIE) 2012 the next edition is going to be a bigger fair with more promising opportunities. Scheduled for 3 days to be held from 16-18 March 2013 at the Chennai Trade Centre, Halls 1, 2, 3 and the convention centre which will have premium booths to cater to the large and growing number of exhibitors at the fair. The fair is expected to have a considerable growth in terms of booths and also in the numbers of visitors from the previous year. Dr. K. Rosaiah said, “The Indian jewellery market is one of the largest in the world. This is proved by the fact that in spite of the record high gold prices and a weaker Indian rupee against the US Dollar, in the second half of 2012, India remained the largest country for gold demand in 2012 at 933.4 tonnes. Hence, one cannot deny the strong investment sentiment in jewellery in general and no wedding is complete without it.”

The 8th edition of GJIIE was the biggest fair of its kind in South India and witnessed the best of Indian and International jewellery, machinery and allied products under one roof. The fair held between 23- 26 February 2012 at the Chennai Trade Centre had been scheduled to coincide with the onset of the festive season and attracted visitors from all over India. The highlight of the fair being the 4 days of business which was greatly appreciated and well received by both the exhibitors and visitors. GJIIE 2012 witnessed trade and business networking but also special events like the seminars, workshops and fashion parade. Conceived in 2005 with the intention to promote the jewellery industry and trade in South India, an initiative to launch the first ever B-2-B trade exhibition was undertaken by the Madras Jewellers & Diamond Merchants Association (MJDMA). The first edition of GJIIE was held in Chennai in 2005 and subsequently MJDMA had organized GJIIE which were held annually in the years 20062008 Year 2009, was a landmark year as MJDMA & UBM India came together to jointly organizes the 5th

“The Indian jewellery market is one of the largest in the world. This is proved by the fact that in spite of the record high gold prices and a weaker Indian rupee against the US Dollar, in the second half of 2012, India remained the largest country for gold demand in 2012 at 933.4 tonnes. Hence, one cannot deny the strong investment sentiment in jewellery in general and no wedding is complete without it.” edition of GJIIE. With UBM’s proven experience in organizing world’s leading jewellery shows and the vast local knowledge of the MJDMA, GJIIE 2011 reached new heights in terms of exhibition participation and visitor attendance. With UBM’s proven experience in organizing world leading jewellery shows and the vast local domain knowledge of MJDMA, GJIIE 2013 is marching to reach newer heights, both in terms of local and international participation. UBM’s global network of offices and vast databases will ensure good trade visitor numbers from India and overseas. GJIIE 2013 will be a kaleidoscope of business opportunities to domestic as well international jewellery trade fraternity.

The 9th Edition of GJIIE would affirm its position on the industry calendar, with several international visitors making their way to the glittering jewellery stalls alongside a huge turnout of domestic buyers. The immense popularity of the event can be gauged by the fact that GJIIE 2012 was extended to cover four days. Exhibitors from Mumbai, Chennai, Coimbatore, Delhi, Jaipur, Kolkata, Ahmedabad, Rajkot, Thrissur, Bangalore, Vellore, and Hyderabad besides foreign participants from

Mines To Market / Jan-Feb’2013

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Signature IIJS Ended with a Success Note Signature IIJS Mumbai 2013 organized between 22nd and 25th Feb by the Gems and Jewellery Export Promotion Council of India of India (GJEPC) ended here with a success note.

any of the exhibitors who participated in the event expressed their satisfaction about the trade inquires the received during the show with a hope that they would actually be materialized into real business. The event was inaugurated by Chief Guest, Smt. Rita Menon, IAS, Chairperson & Managing Director, India Trade Promotion Organisation, Guests of Honour, Mr. Stephen Lussier, CEO, Forevermark Diamonds Pvt Ltd, London and Shri. Siddharth, Joint Secretary, Ministry of Commerce & Industry along with Chairman, GJEPC, Shri. Vipul Shah, Vice Chairman, GJEPC Shri. Pankaj Parekh and other senior officials from GJEPC and eminent members of the trade. The distinguished guests lit the lamp as a mark of commencement, which was followed by a guided tour around the exhibition. Speaking at the event, Mr. Vipul Shah,

“Signature is a great platform where international and national retailers and manufacturers come together to build associations, transact business and forge long-lasting relations that enable business transactions all year around. Hopefully we will see greater quantum of business being transacted during this edition of Signature 2013.” Chairman, GJEPC said, “Signature is a great platform where international and national retailers and manufacturers come together to build associations, transact business and forge long-lasting relations that enable business transactions all year around. Hopefully we will see greater quantum of business being transacted during this edition of Signature 2013.” Signature Mumbai has evolved into a key event in India’s Jewellery calendar. Positioned as a niche event, the Signature is a vibrant and exclusive sourcing event for the domestic and international trade, where 90% of its participants have been participating on a regular basis. Following its tradition, Signature 2013 showcased exquisite jewellery collections and created opportunities for buyers to discover the latest trends, meet with the leading

Mines To Market / Jan-Feb’2013

trade partners and plan their collections and inventories as only the leading manufacturers adhering to the highest standards of design, quality and craftsmanship participate at the show. Given the compact nature of the show, the Signature show allowed for closer business ties between the participants and leads to stronger trade relations in an industry that continues to face global economic challenges. Mrs. Rita Menon, CMD, ITPO said at the inauguration, “I am happy to see the level of modernization, the awareness of certified products and a regulatory framework which this industry has exhibited over the years. Lately I have also been closely working with GJEPC to launch their first business to consumer initiative, the India Gems and Jewellery Fair which will be held in New Delhi and

SHOW TIME looking at the skills which the council has exhibited in the past I am sure IGJF is going to be another successful and promising show keenly awaited by people in neighboring states of Rajasthan, Punjab and Madhya Pradesh. Opening new vistas and business opportunities especially with the Asian countries, ITPO is hosting the 26th Asian Trade Promotion Forum Chief Executives Officers Meet in Agra where we will have a networking session with all the CEO of trade promotion bodies of countries such as Taiwan, China and Japan. I would invite Mr. Vipul Shah to designate someone from GJEPC to represent the council during the forum. The Signature show this year features 5 international pavilions, which include Thailand, Belgium, Turkey, Israel and UAE. Given the event’s growing international recognition, this year’s show will feature the UAE pavilion for the first time as the ME continues to emerge as one of the key markets for the Indian trade. The product offering has been segmented to include all aspects of jewellery and will offer some of the most unique designs in gold, diamond, and precious stones jewellery, the Signature Club that will feature high end couture jewellery, besides loose diamonds and precious colored gemstones. With each year, Signature has been continuously evolving and growing to accommodate the increasing needs and expectations of the participants and buyers alike; and today, Signature has attained its stature as India’s premium Jewellery sourcing event where participating companies are

selected through a strict screening process and visitors are restricted to decision makers. The result of which is that huge volumes of business are

conducted at a show, which rightfully is a convergence of premium quality and serious business enterprises. Marking the event, Mr. Stephen Lussier, CEO, Forevermark Diamonds Pvt Ltd, London said “I thank GJEPC for providing me this opportunity to be here at Signature 2013. Over the years

I have seen that customers around the world have a strong appetite for this magical industry and product, the diamond. In 2011 we launched the Foreovermark diamond brand in India and have seen a very favorable response from domestic customers. India over the last decade has been the fastest growing diamond jewellery market, even surpassing countries such as China. This is mainly attributed to the love for diamonds and better economic conditions. We have aggressive goals for India and plan to double our sales in the coming years.” The visitors at Signature Mumbai 2013 included people from around the globe who were in the business of jewellery making, heads of many jewellery making companies and government organizations, prospective buyers, and also others who were interested in the trade.

In 2014, Signature Mumbai is scheduled from 21 to 24 February.

Mines To Market / Jan-Feb’2013

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