RAPAPORT... For the 24th consecutive year, Rio Tinto’s Pink Diamond Tender is once again one of the premier natural color diamond events, and the round-the-world preview exhibition of the 65 selected stones is already over. This year, the exhibitions took place in six locations: Perth, Australia, August 21 and 22; New York, September 2 to 5; London, September 9 to 11; Hong Kong, September 15 to 20; Tokyo, September 24 to 26 and back to Australia in Sydney, October 1 to 2.
From the Antwerp perspective, people are complaining that it’s the second time in a row that Rio Tinto has bypassed Antwerp and not scheduled a preview of the stones in the Belgian city. Antwerp is a major diamond center, and other major diamonds — notably the Lesotho Promise — have reached extraordinary prices here. But, having said that, Antwerp may not be the best place to tender hyperspecific goods such as Rio’s pinks. As Arthur Langerman of Arthur Langerman Diamonds notes, not all diamonds are alike.
“At first, it’s a little surprising to see that Rio’s management doesn’t seem to consider Antwerp worthy of being placed on their tour map,” commented Langerman. “However, we must admit that their pink diamonds are basically and typically end user and retailer goods. They are the kind of stones that retailers come and purchase almost always because they have private buyers. In other words, it’s not a manufacturing or distribution center kind of diamond.”
This opinion was confirmed at least partially by Raj Kandiah, general manager of Argyle Pink Diamonds. “Our Pink Tender viewing venues are reviewed on an annual basis to determine the best fit with existing and emerging markets. Antwerp is not ‘off the map,’ but it hasn’t been as high a priority as other locations over the past two years. We believe we see most of our Antwerp customers in Hong Kong and London.”
Even though neither the names nor the winning offers submitted by the new owners of the 65 stones in this tender will be released, market specialists have no doubt that record prices will be reached, with an expected minimum of plus 30 percent and maximums in excess of 50 percent.
In order to avoid misunderstandings, Kandiah insisted that “The European market for Argyle pink diamonds is very important. For example, in the past year, we have seen such developments as the significant commitment by La Serlas, the renowned luxury Swiss jeweler to be the flagship for Argyle pink diamonds in Zurich; the luxury Danish jeweler Hartmanns’ use of Argyle pink diamonds in its signature Shambala bracelet; the international debut of luxury Australian jeweler Calleija with the opening of its Old Bond Street store in London, the launch of a collection of pink diamond designs created especially for iconic London department store Harrods and the creation of an Argyle pink diamond tiara by Garrards of London, former Crown Jewellers and holders of the Royal Warrant.
“Antwerp remains central to the sales and marketing of all diamonds from Rio Tinto’s mines at Argyle, Diavik and Murowa,” Kandiah went on to say. “Rio Tinto has had a presence in Antwerp for more than 20 years now and most recently we have invested considerable capital to ensure that by the end of 2008, we will have consolidated the sales and marketing of all diamonds from Rio Tinto’s diamond mines in Antwerp.”
Fifth Antwerp Diamond ConferenceIntroduced by the Antwerp World Diamond Centre (AWDC) as “the premier international event at which world and industry leaders and thinkers gather to measure the pulse of the diamond industry,” the topic of the 2008 conference is “Diamonds, a Symbol of Value.” Scheduled for Antwerp on November 17 to 18, the intention of the conference organizers is to discuss the value of gem-quality diamonds as being more than a simple function of scarcity and cost. The conference will focus on how to add value when marketing diamonds and how to associate them more closely with emotional commitment, luxury and well-being. Other issues on the agenda are the interplay of supply and demand and the array of opportunities and threats that favor or affect the diamond’s potential. On the guest list this year are His Royal Highness King Letsie III of Lesotho as guest of honor and Sir Richard Branson, chief executive officer (CEO) of the Virgin Group as keynote speaker.
The Marketplace• 50-pointers, cleanish, IF, VVS are in strong demand across the board.
• 50-pointers in VS-SI1, H+ are in strong demand.
• Demand is firm for 4-grainers+ piqué as buyers downscale in budgets and buy less expensive goods.
• Demand is strong for cleanish 4-grainers up to 6-grainers.
• Prices are stable for 4-grainers+ in VVS.
• 5-grainers in 1.20 to 1.50 carats, VS-SI
are commanding a strong premium of
at least 5 percent.
Article from the Rapaport Magazine - October 2008. To subscribe click here.