The Supreme Court of the Netherlands has cleared the way for the acquisition of ABN AMRO Bank, which holds 25–30% of the diamond industry’s debt portfolio, by one of its two rival suitors: Barclay’s Bank and a consortium led by the Royal Bank of Scotland (RBS). Both are headquartered in Great Britain.

The RBS group is considered the leading contender because its bid is higher, predominantly cash, and was raised again following the court decision – while Barclay’s offer would be an all-stock transaction. However, the RBS plan is to dissect ABN AMRO's operations, parceling out some of its divisions to members of the consortium while selling off others. Because so much cash is involved, and the price of the acquisition has swelled, diamantaires are concerned that the new management will be under pressure to tighten credit on an industry squeezed by high rough prices and soft polished demand.

ABN AMRO’s global director of diamond and jewelry lending, G. Loet Kniphorst, told a recent conference that the diamond industry has reached its credit limit and, further, that it needs to attract new sources of funding outside of bank credit if it is to keep pace with the changes in a global industry. Hedging mechanisms are also needed to manage price volatility more effectively.

Addressing the presidents’ meeting of the World Federation of Diamond Bourses in Amsterdam last month, Kniphorst said new banks have entered the diamond trade, particularly in India. While they may offer new credit opportunities for some companies, their presence also makes industry debt much more difficult to quantify.

The bidding for ABN AMRO became stalled in May when RBS filed a motion with the Dutch Supreme Court to stop the bank from selling its chief U.S. asset, La Salle Bank, to Bank of America. RBS, which had called La Salle a key component of its bid, argued that the $21 billion sale required approval from ABN shareholders. The court ruled July 13 that such approval was not necessary, clearing the way for the battle to resume.

DIAMONDS: Another court decision in Europe may have nullified De Beers’s plan to end its relationship with Russia’s diamond marketing arm, Alrosa.

The European Court in Luxembourg ruled that De Beers’s agreement with the European Commission (EC) to phase out purchases of rough diamonds from Alrosa failed to consider the Russians’ interest. The agreement was struck in 2005 after several diamond industry groups called for the EC to investigate the relationship between Alrosa and De Beers, claiming it stifled competition in the rough diamond market.

De Beers quickly agreed to phase out its Alrosa purchases from $600 million that year to $275 million in 2009 and ending thereafter. However, Alrosa – which had not been consulted – objected to the agreement because its sales to De Beers’s Diamond Trading Company (DTC) have traditionally secured the Russians against slow demand and volatile prices.

Before the EC action, the DTC had been working under a contract to buy half of Russia’s diamond production, which at the time totaled about $1.5 billion. Today, that figure is about $2.7 billion.

RETAIL: Luxury sales worldwide continue to soar. Richemont, the parent firm of Van Cleef & Arpels and Cartier, reported that its jewelry sales increased 12% to $879.5 million for the fiscal year ending June 30. Sales in the Americas were up 10%.

As strong as that may appear, the group’s luxury watch brands – which include Jaeger-LeCoultre, Piaget, and Baume & Mercier, among others – grew 24% in the same period.

MACRO: The continued decline of the U.S. dollar against other major world currencies, including the Indian rupee, is diminishing the purchasing power of American dealers and retailers – especially at the high end where supplies are scarce. In the past year, the U.S. dollar has fallen 11% against the euro, 14% against the rupee, and 13% against the British pound. Since diamonds and most gemstones (except pearls) are traded predominantly in U.S. dollars, a declining dollar brings “discounted” costs to dealers in Europe, Japan, and other major markets.

Economists predicting a slowdown in the U.S. economy are working with mixed signals. The stock market is rising (probably buoyed by overseas investors buying stocks with discounted dollars) and employment numbers look good. However, retail numbers have been soft, and consumer confidence has been slumping.

Russell Shor
Senior Industry Analyst

The 2007 GIA Career Fair will take place in just seven days – Friday, July 27, from 9 a.m. to 3 p.m. at the Jacob K. Javits Convention Center in New York City. Considered the jewelry industry's most prominent job event, Career Fair should not be missed by anyone pursuing a career in gems and jewelry.

This year, a record-breaking number of companies – over 50 in all – are recruiting at Career Fair.

Whether you're a first-time job seeker or a seasoned jewelry professional, Career Fair opens the door to a variety of employment opportunities, including appraising, design, marketing, manufacturing, and sales. Attendees have the chance to apply for positions with multiple employers and meet representatives from the industry’s best-known companies, such as Zale Corporation, David Yurman, De Beers, Tiffany & Co., Christie’s, and the Home Shopping Network.

Besides the countless opportunities, job seekers can get one-on-one career coaching and attend seminars, workshops, and panel discussions led by the industry’s top business leaders. For recruiters, Career Fair attracts hundreds of people already targeted on the jewelry industry, many of whom are professionally trained.

In addition to the July 27 event in New York, Career Fair will also be held Oct. 19 at GIA’s Robert Mouawad Campus in Carlsbad, Calif. Like New York, the Carlsbad event will feature a recruiting area, career coaching, and panel sessions.

Job seekers can visit GIA Career Fair for more information, or call GIA’s Jewelry Career Fair hotline at 800-421-7250, ext. 4100. Admission for job seekers is free. Employers who wish to recruit at Career Fair can call 800-421-7250, ext. 4195.

GIA’s Jewelry Career Fair was founded by GIA and The Jewelers 24 Karat Club of Southern California. The prime sponsor for the New York Career Fair is The Nielsen Jewelry Group, and the prime sponsors of the Carlsbad event are the JCK International Publishing Group and The Jewelers 24 Karat Club of Southern California.

The Summer 2007 issue of Gems & Gemology, scheduled to mail to subscribers in early August, features a review of global rough diamond production since 1870, a look at the performance of several common emerald-filling substances, and the debut of a new section, Rapid Communications.

In the lead article, “Global Rough Diamond Production Since 1870,” exploration geologist Dr. A. J. A. Janse reviews and analyzes annual production statistics (by value and carat weight) for the world’s most significant diamond sources, through 2005. Over this entire period, South Africa ranks first in value, followed by Botswana, while the Soviet Union/Russia ranks first in carat weight, followed by Australia.

“The scope of Dr. Janse’s article is remarkable,” says G&G editor-in-chief Alice Keller. “It provides comprehensive data for the 27 top diamond-producing countries, plus analysis of the most important mines and diamond projects currently in development. It is a unique perspective on the historical and future availability of the rough diamonds that drive our industry.”

Next is Dr. Mary Johnson’s “Durability Testing of Filled Emeralds,” a long-term, systematic study of the stability and durability of nine common emerald-filling substances. Researchers filled 128 emeralds and exposed them to a battery of durability tests, with results that varied dramatically among the different fillers.

Rounding out the slate of Summer issue articles is “Continuity and Change in Chinese Freshwater Pearl Culture,” by Doug Fiske and Jeremy Shepherd, a look at some recent developments in China’s freshwater cultured pearl production.

This issue also marks the launch of the journal’s new Rapid Communications section, which provides brief, timely articles on noteworthy gem materials, localities, and identification or treatment techniques, among other topics. The section debuts with reports on polymer-impregnated turquoise and on yellowish green diopside and tremolite from Merelani, Tanzania.

The journal’s Lab Notes section presents the latest discoveries at the GIA Laboratory, including a diamond hosting a color-change garnet coated with a sulfide mineral, and a natural opal with a structure resembling that of synthetic opal. Among the many items featured in Gem News International are chatoyant gems from Tanzania, Chinese akoya cultured pearls, and a review of the accounting firm KPMG’s report on the global jewelry industry.

There’s still time to test your gemological knowledge by taking the 2007 Gems & Gemology Challenge. Official entry cards are included in the Spring 2007 issue, and forms for electronic submission were e-mailed to subscribers on July 16. Entries must be received by Aug. 6. To purchase a copy of the Spring or Summer issue or to subscribe, click here or contact Circulation Coordinator Debbie Ortiz. Call toll-free 800-421-7250, ext. 7142. Outside the U.S. and Canada, call 760-603-4000, ext. 7142.

Have you ever wanted to go behind the scenes and experience the sights and sounds of an Imperial topaz mine in Brazil? Maybe you’d like to watch a seminar on laser-drilled diamonds or a tutorial on accounting basics from the GIA School of Business.

These are just a few examples of the free video and audio content that current students and graduates of any GIA course can now access through GIA on iTunes U. The Institute joins a growing number of U.S. colleges and universities that are partnering with Apple, Inc. to deliver educational content via iTunes U.

With GIA on iTunes U, it’s easier than ever to continue your gemological education and stay up-to-date on industry developments. In just a few clicks, you can select the materials you want to download to your personal computer or MP3 player and enjoy them at your convenience.

The segments are brief, usually five minutes or less, but packed with useful information. More than 100 are currently posted, and GIA’s Course Development department is creating new podcasts on a regular basis, many of them featuring all-new, exclusive footage.

Patrick B. Ball, the Institute’s director of Education training and the creator of GIA’s iTunes U site, says, “With this powerful medium, we’re now able to deliver timely and widely expanded educational content to GIA students and instructors worldwide, as well as Continuing Education for our alumni. So far, the response has been overwhelmingly positive, and to date we’ve delivered 36,000 downloads.”

To get started, go to GIA’s Continuing Education page and click on the “Register for My GIA” image in the lower right corner. By completing the forms that come up, you will establish a “My GIA” user ID. Your password will then be e-mailed to you. You will also need to download and install Apple’s free iTunes software.

Once you’re set up, visit https://my.gia.edu often to get the latest content. You can also choose to subscribe so that new content is automatically delivered to your computer.

GIA recently launched a comprehensive new career services search engine that represents the largest online employment database in the jewelry industry. Free of charge to both job seekers and recruiters, this online tool is accessible from the GIA website and is designed to bring together employers and professionally trained students and alumni.

More than 350 employers from every facet of the industry – including wholesalers, department stores, jewelry designers, auction houses, and gem laboratories – have posted positions for both domestic and international job openings. Participating companies include such respected names as De Beers LV, Tiffany & Co., Robbins Bros., Lux Bond & Green, Hearts On Fire, Diamonds International, and Harry Winston Inc.

According to Dani Oliver, GIA’s Career Services manager, the new search engine offers more powerful capabilities to produce better job matches. “With this robust new search engine, GIA has developed the most comprehensive employment resource in the industry. Our Career Services department can offer new levels of quality and convenience to employers and job seekers alike,” she said.

To date, the website has had more than 12,000 visitors per month. It is designed to appeal to a wide range of job seekers, from entry-level to seasoned management. Available positions include wholesalers, retailers, graders, and bench jewelers, as well as instructors, marketing executives, and many others.

Patricia Mejorado, who completed the Graduate Jeweler (G.J.) and Applied Jewelry Arts (A.J.A.) programs at GIA in Carlsbad and the Graduate Diamonds program at GIA Los Angeles, checked the search engine often to familiarize herself with existing job opportunities. She recently landed a position as a gemstone buyer working with colored stones and pearls at Star Ring, Inc., in Chatsworth, Calif. 

“I started out wanting to be a designer, but as I progressed through my training and investigated other career paths on the search engine, I determined that buying offered a very interesting future,” said Mejorado.  “I recommend that other students and alumni, no matter what their level of experience, take the time to research the many opportunities posted.”

Tracey Ordway, a graduate of the Graduate Jeweler Gemologist with Design and Wax program, recently used the search engine to secure a new career in sales at Harold Steven’s Jewelers in San Diego. “The search engine was not only easy to use and navigate, but it also represented the most effective way to look for a specialized position in the jewelry industry,” she said.

Key features of the enhanced search engine include:

• New filter options allow job seekers to focus their search on a particular country, state, type of job, and even a specific employer.
• Search results return job summary information that can be sorted by company name, location, and posting date.
• Search results have two display modes – one brief and one more detailed. The brief version shows more jobs at a glance, while the detailed model shows summaries of each job description in the results list.
• The job detail screen is designed to be much more readable.

Accelerate your job search by visiting GIA's Career Services search engine today.

Tanzanite Foundation representatives Sarah Cort and Anna Haber delivered a lecture to students and staff at GIA in Carlsbad on June 29, as part of the launch of the exhibit "Tanzanite Foundation: A Celebration of Life” at the Institute's headquarters.

This exhibit, from the Tanzanite Foundation’s recent design competition, showcases 21 award-winning jewelry pieces from designers throughout the world. GIA Museum Director Elise Misiorowski introduced the lecture and exhibit as a true “privilege,” since this is the last public showing of these pieces in the U.S.

According to Cort, the foundation received over 500 design entries from more than 20 countries, which she believes supports the growing recognition of tanzanite. "This highly creative, award-winning collection enhances the already fiery and brilliant characteristics of this significant gemstone," said Cort.

During the lecture, Cort and Haber shared many interesting facts about tanzanite, including:

• An extremely rare gemstone, tanzanite was discovered in the 1960s in a 6 km stretch of land in the foothills of Tanzania’s Mount Kilimanjaro in East Africa.
• Geologists estimate that tanzanite supplies will be depleted within a decade.
• Henry B. Platt, former president of Tiffany & Co., coined the name tanzanite after the gem's country of origin.
• Tanzanite was originally believed to be a "vibrant sapphire."

The Tanzanite Foundation is a non-profit organization formed in 2003, with offices in New York, London, and Johannesburg. The foundation has three main objectives for tanzanite: increasing awareness through education and training; positioning the gem as a universal birthstone; and creating a standardized grading system.  

The Tanzanite Foundation display at GIA will be available for viewing through Aug. 31 in the S. Tasaki Student Lecture Hall. The exhibit is open to the public, but reservations must be made through GIA Guest Services at 760-603-4000. Exhibit hours are Monday through Friday, from 8 a.m. to 5 p.m.