May june 2014

Vol - 3 Issue 4, 2014

INDUSTRY WATCH Fresh Wave of Diamond Looting in Zimbabwe Coloured Gemstones Sparkle again Fresh Bid to Ban Zimbabwe Diamond

NEW LAUNCH SWAROVSKI PROUDLY PRESENTS GEM VISIONS THE BRIDAL BOOK

SHOW TIME JCK Las Vegas closes after a remarkable week in the desert

TRADE NEWS Sellers are Responsible for Diamond Authentication

COVER COURTESY :

COVER STORY Jewellers offer Attractive Schemes to Lure Consumers

C o m i n g S o o n

EDITORIAL DESK

Tough Recovery Task Ahead of the Platinum Sector

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he five month old strike by at least 70,000 workers of platinum mines in South Africa may have been withdrawnrecently but the sector is still struggling to revive from its crippling and economically devastating effects as some 2000 workers of Impala Platinum Holdings Ltd. are reported to have once again gone on strike despite the recent wage revision deal signed by miners and the workers' unions.

The members of the Association of Mineworkers and Construction Union (AMCU) had been striking work at platinum mines from January 23, 2014with a demand of increase in salary of R12 500 a month. The strike ended in on 24th June, 2014 with the miners accepting a wage increase amounting nearer to that figure.

South Africa boasts to hold about 80% of the global platinum reserves, accounting for 70% of world's output which is used for jewellery, catalytic converters in vehicles and as a source of hard currency for the country.

The sector has lost more than R20 billion in the strike which is regarded as the worst ever and longest in the country's history, has badly hit the mining sector.

The big three platinum producers - Anglo American Platinum, Impala Platinum and Lonmin – warned of permanent effects of the strike in a joint statement.

“The strike by the platinum workers was unprecedented, and it was resorted to at a stage where some of its impacts would become irreparable. These impacts would not only harm the companies, but also employees, local businesses, suppliers and communities at large.”

According to the above-mentioned miners, some of the mines and shafts have become unviable. In addition to that, people were going hungry and children were not going to school and some business-units had shut down while crime scale in the platinum belt was ravaging communities in the area. The prevailing situation including financial losses is exceptionalin scale, said the top miners.

The platinum mining giants like Anglo American Platinum, Impala Platinum, and Lonmin are said to be preparing to mechanize, close some shafts and retrench some workers.The platinum sector in South Africa is responsible for providing 40% of the global output but the sector saw a 24.7% drop in production because of the strike.

The country's longest-ever strike has cost the platinum mining sector 1.1M oz. in terms of production and helped shrink the country's economy by 0.6% in Q1 in comparison with the previous year.The world's three-biggest platinum producers - Amplats (AAUKF, AAUKY), Impala Platinum (IMPUY) and Lonmin (LNMIF) - reveal they each has lost roughly one third of their annual production.

Platinum analysts say it would take at least three to five months to get production back to pre-strike levels.

The strike by the platinum workers was unprecedented, and it was resorted to at a stage where some of its impacts would become irreparable. These impacts would not only harm the companies, but also employees, local businesses, suppliers and communities at large.

Post-strike, although there is a tough recovery task ahead of the platinum sector, its time for the global platinum lovers including those in India to cheer up as in a few months from now, the sector would get regular supply of the supreme metal.

As far as India's platinum jewellery demand is concerned, it is likely to rise by 35% by the end of 2014, according to the Platinum Guild International (PGI).

The reason is quickly changing consumer choices, especially from the bridal segment which was earlier confined to gold and diamonds. So, end of the strike has brought a great relief not only for the global platinum sector but the workers also.

Prashant Rathod editor@minestomarket.net Mines to Market | May-June’ 2014

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CONTENT Design : Kama, New Fancy Cut Collection

INDUSTRY WATCH

Vol: 3, Issue 4, 2014

Fresh Wave of Diamond Looting in Zimbabwe

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Coloured Gemstones Sparkle again

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Fresh Bid to Ban Zimbabwe Diamond

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COVER STORY Jewellers Offer Attractive Schemes to Lure Consumers

Price : Rs. 100/-

Owner, Publisher, Printer & Editor Prashant Bharatkumar Rathod

UK Correspondent : Jayant Raniga

Regd. Office : M/s. Blue Diamond Media Amba Ashish, Punit Society, Navdurga 30 Feet Road, Sorathiya Wadi, Rajkot - 360002

ISRAEL SECTION Noa Pardo is New Managing Director of IDI Hong Kong

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Texas-Israel Diamond Show

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NEW LAUNCH SWAROVSKI PROUDLY PRESENTS GEM VISIONS THE BRIDAL BOOK

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Fashion Bloggers unveil Kama's New Fancy Cut Collection

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Kiran Jewels (India) to showcase Multiple Diamond Jewellery Collections this July IIJS 2014.

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FOREVERMARK launches in Turkey

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PLATINUM - THE CHOICE OF DISCERNING MEN

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PLATINUM EDGE India's platinum jewellery demand to rise by 35%

Cell : +91-9328223900 Mumbai : +91-9833023900

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

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TRADE NEWS Decade On, Gems-Jewellery Park at Surat has No Takers

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

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JNA Announces Award Honorees for 2014

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Sellers are Responsible for Diamond Authentication

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Kiran Gems gets the first IIDGR's Automated Melle Screening Machine commissioned

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Diamond, Gem & Jewellery Banking Summit 2014

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SHOW TIME JCK Las Vegas closes after a remarkable week in the desert

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Mines to Market | May-June’ 2014

INDUSTRY WATCH “Smuggling of diamonds is the work of insiders at the mining companies and other dealers. I stopped dealing in diamonds long back. In fact I am under the spotlight as CIO (Central Intelligence Organisation and CID (Criminal Investigation Department) are closely watching me,” Mudiwa told The Zimbabwean.

He insisted that he acquired his properties and businesses from various ventures that included precast wall manufacturing from as way back as 1998 and after a stint as an economic migrant in the UK. Most of the company insiders, particularly sorters and those working the plants, are now leading lives not commensurate with

Fresh Wave of Diamond Looting in Zimbabwe

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here has been a fresh wave of systematic diamond looting involving mining companies' staff, security and army generals following the announcement by Mines Minister Walter Chidhakwa that government will work with only one company to exploit diamonds in Marange.

There have been repeated complaints that most of the diamonds from the mining fields have been diverted to the black market, hence poor revenue flows into government coffers.

“There is laxity in security and panic as employees, some of them senior, are not sure of their fate following the decision to mainstream mining activities at Marange,” said a reliable source.

“Employees, particularly those involved in sorting, are colluding with company security at most of the mining companies to smuggle out mostly gem-quality diamonds that are then sold both locally and outside the country,” he added.

The source, who asked not to be named, said there was a steep resurgence in illegal diamond dealing in Marange, with high profile buyers now a common sight in the area where the gems are sold even at Mines to Market | May-June’ 2014

their employment incomes. “The smugglers are also getting protection from members of the CID Minerals section, who get kickbacks from the looters and dealers,” said the source.

Walter Chidhakwa Mines Minister

business centres through named middle men.

A local, Malvern Mudiwa, is reported to be one of the main buyers and reportedly smuggles the diamonds out of Marange to markets in Harare. He is said to have amassed vast wealth, with a posh house in Chisipite, another upmarket home in Norton and several properties that include state of the art vehicles, lorries and shops “despite going only as far as Grade 2 primary education”.

Mudiwa is the chairperson of the Marange Development Trust (MDT), which was registered on May 6 this year.

He accepted having dealt in illegal diamond trade before, but said he had since stopped.

Currently, seven firms operate in Chiadzwa, namely Anjin Investments, Diamond Mining Company, GyeNyame, Jinan, Kusena, Marange Resources and Mbada Diamonds, with the Zimbabwe Mining Development Corporation holding stakes in all the firms. Recently, several workers from one of the mining companies were arrested for allegedly conniving with a local businessman in Mutare to smuggle out the gems from the firm.

A staff member from the Centre for Research and Dialogue (CRD), which advocates for transparent resource extraction, lent weight to reports of the siphoning of diamonds at Marange, saying “The situation is very painful. We have gathered that there are numerous channels through which the diamonds are being stolen. Insiders are paying security personnel to get the diamonds out. It is clear that Marange has once again become a theatre for rampant illicit diamond sales. on Page # 41 11

INDUSTRY WATCH

Coloured Gemstones Sparkle again

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n 1946, while working on the De Beers account for the New York agency N.W. Ayer & Son, copywriter Frances Gerety came up with what would be one of the most enduring advertising slogans of the century. The tagline she delivered to the powerful diamond mining and trading cartel — 'A Diamond is Forever' — indelibly linked the gemstones to marriage proposals and quickly took on the weight of authority, helping to ensure that diamonds would dominate the fine jewellery market for the latter half of the twentieth century.

But over the last few years, the sea of sparkling ice has, little by little, become enlivened by splashes of colour, as a number of factors push coloured stones — everything from emeralds, rubies and sapphires to turquoise, lapis and coral — back into vogue.

“Coloured stones were one of the key elements of high jewellery, historically,” Nicolas Bos, CEO and creative director of Van Cleef & Arpels, told BoF. “Mostly because of their expertise,” he continued.

“For generations houses such as ours had in-house experts searching for the stones and guaranteeing their quality. For Van Cleef&Arpels, it was one of the qualities of the house to provide and work with exceptional gemstones. It never disappeared — but that tradition somehow diminished. By the 1980s and 90s, high jewellery became more conservative in design,” he added. But in the last decade or so, Bos has seen “a comeback of creativity in high jewellery” in which the return of colour has played a key part. “There's only so much that you can do with white diamonds and simple settings at the end of the day,” he said. The house now includes coloured stones in its themed collections, such as L'Atlantide or Les Voyage Extraordinaire — “not only precious but also semi-precious and fine stones that were very important in fine 12

jewellery 80 years ago and had completely disappeared in the 1980s and 90s.”

The fall and return to favour of coloured stones is about more than shifting fashions, however. Since the midtwentieth century, the rising reputation of diamonds was boosted incalculably by the major marketing machine of De Beers (Matthew Hart's Diamond: the History of a Cold Blooded Love Affair, published in 2002, estimated De Beers annual advertising budget at $200 million).

While, today, De Beers operates a 50/50 joint retail venture with LVMH, targeting consumers directly, the company — historically, mine-owners and distributers — has long been engaged in promoting the underlying social constructs that underpin the diamond market, rather than any product line in particular, seeding the notion of, for example, how much a man should spend on an engagement ring ('Isn't she worth two month's salary?'), diamonds as markers of a significant event ('Which Millennium are you waiting for?') or the purchasing of jewellery by women for themselves as an empowering act ('Women of the world, raise your right hand').

Factors such as the demographics, trends and perceived intrinsic value play a big role in determining which stones might do very well. Opals are a big trend in Europe, America and Asia, but they just don't sell well in Brazil where there are considered unlucky.

Tourmalines are high in demand in Asia, but in the Americas they just don't understand why the stone is so expensive.

Significantly, De Beers also developed a set of criteria for evaluating diamonds in order to support the idea that the stones had intrinsic value that could be objectively established, which helped to build consumer confidence. The system was known as the '4C's' — colour, cut, clarity and carats. Price, supply and quality have also been relatively predictable for jewellers working with the stones, not least because De Beers, at the height of its power, controlled some 80 percent of the world's rough diamond market.

But while De Beers provided a unifying force behind the sourcing and promotion of diamonds, coloured gemstones, rarer and more geologically diverse, have historically been mined by smaller, independent outfits. Neither has there been a universal grading system like the 4C's, meaning consumer confidence was based almost entirely on the relationships between jewellers and customers.

This bond of trust was deeply shaken in the late 1990s by a series of 'exposés' that appeared on US television, knocking jewellers for not disclosing treatments such as oiling and filling that had been applied to gemstones prior to sale. While many of these were traditional and accepted techniques, the suggestion of dubious practices had a huge impact.

“Around 2000, it was extremely difficult to sell important coloured stones,” said Bos. “The most conservative approach was to stay out of it and go for something else.”

But in recent years, consumer confidence in coloured stones has been rebuilt, thanks, in part, to tighter guidelines regarding the disclosure of gemstone treatments. In April 2001, the US Federal Tr a d e C o m m i s s i o n u p d a t e d i t s guidelines, compelling jewellers to disclose treatments that might affect a stone's value that were impermanent or

Mines to Market | May-June’ 2014

INDUSTRY WATCH that might have required the stone to be cared for in a special way. But for jewellery houses, inconsistent supply and pricing were still an issue.

“Gemstone supply was very inconsistent, because it was traditionally local people bringing up what they could find,” explained Gabriella Harvey, director of cut and polished stones for the Londonbased gemstone company Gemfields. “It was difficult for companies to plan ahead.

If a big company like Tiffany & Co had one beautiful stone they wouldn't know if they'd find another and how much it would cost. Back in the day, it could take seven years to build up a line of matching emeralds.”

To consumers, Gemfields promotes itself as a source of ethically mined gems. But within the industry, its biggest impact has been the development of the first formal grading system for coloured stones.

“We've developed a grading system for rough emeralds and rubies with 400 different grades covering colour, clarity, weight and so on. The grades are consistent across auctions and, because of this,jewellers will know that they can do, for example, matching pairs. It is helping bring gemstones back because it's more consistent,” explained Harvey. “You can walk down Bond Street or Madison Avenue and there's so much more colour now in the jewellery shop windows and that's because people can plan ahead. A grade 'A' will be a grade 'A' forever.”

Gemfields runs auctions four times a year.

At the company's auction of high quality emerald and beryl, held in Lusaka, Zambia in February of this year, 0.62 million carats were sold for $36.5 million.

The fifteen auctions held by the company since 2009 have seen a consistent rise in price per carat, quality being equal.

While consistency of supply and pricing has made it easier for major jewellery houses to include coloured stones in their collections, there has also been a growing international demand from consumers.

Mines to Market | May-June’ 2014

“Asia has been leading the way when it comes to demand for coloured stones,” explained Prateek Nigam, director of the Jaipur, India-based Oriental Gem Co which uses coloured stones in 80 percent of its jewellery designs. “There is a huge demand for exotic stones right now; people are more aware that some of these stones are 1,000 times more rare than diamonds.”

Oriental Gem Co.'s gemstone-based designs retail from as low as $500 to over $400,000. The company currently has 288 points of sale in over 40 countries around the world. “Each territory has a certain taste and appetite,” said Nigam.

“Factors such as the demographics, trends and perceived intrinsic value play a big role in determining which stones might do very well. Opals are a big trend in Europe, America and Asia, but they just don't sell well in Brazil where there are considered unlucky. Tourmalines are high in demand in Asia, but in the Americas they just don't understand why the stone is so expensive.”

Lesley Schiff, founder of the Talisman jewellery gallery based in London's Harvey Nichols store has worked in the jewellery trade for over 40 years now and is a leading specialist in contemporary studio jewellery. She has sensed a definite shift towards colour in recent years, and is now seeing a second wave of impact.

“The price of coloured stones has hugely increased — tourmalines are astronomically priced. Many jewellers are now looking at stones they haven't used before, such as organic stones like rutilated quartz. They're looking for stones with a lot of character rather than trusting conventional semi-precious stones; turquoise and chrysoprase are really sought after again. The stones that were used, for example in important pieces by Bulgari in the 1950s, 60s and 70s — lapis, turquoise, corals, chrysoprase — fell out of fashion. Now fashion has changed and they're coming back.”

Pieces at Talisman range in price from £30 to £50,000 (about $50 to $84,000) with a “sweet spot,” identified by Schiff, of around £1,000-£5,000 for women making an immediate purchase for themselves. “Women who might have bought bold costume jewellery a few years ago will now pay more because there's now good bold fine jewellery available that almost has a costume-y look to it.”

Like many store-based jewellers, Schiff is wary of the growing online market for diamond jewellery. In recent years, etailers have attracted consumers by offering pricing that is both more transparent and lower, undercutting brickand-mortar jewellers. Blue Nile posted first quarter net income for 2014 at $103.7 million. And the idea of competitive pricing, lower margins and bargains, sits uneasily with the idea of diamonds as the ultimate luxury purchase. “The image of diamonds is changing,” said Schiff.

“Maybe because everyone can buy a hot diamond piece with a little stone.”

“Diamonds are easier to find. You don't have to see them in person. Coloured gemstones have so much more personality,” said Michelle Graff, editorin-chief of the New York-based National Jeweller. Visiting jewellery shows and events around the world, Graff has an overview of industry trends and has noted the growing interest in coloured stones. In part, she also attributes this to adoption amongst highly influential global celebrities and the increasing presence of coloured stones on the red carpet. (Kate Middleton, for example, wore a sapphire engagement ring).

Graff also sees another key driver in the rise of millennial consumers: “The younger generations don't hold diamonds in the same esteem as their predecessors — they're looking for something different from what their friends have. With the baby boomers it was all about keeping up with the Joneses. For the Millennials, it's about having something different and more personal — and coloured gemstones give more variety.” n

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INDUSTRY WATCH Since then, another 14 have joined, with only three -- Chile, Turkey and Mexico -coming close to being Third World and part of the KPCS process membership.

Apart from Israel, other newly admitted members come from the former Eastern bloc countries, whose admission is linked to the West's larger geo-strategic calculation.

Fresh Bid to Ban Zimbabwe Diamonds

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Reacting to this disclosure, the President hit out at the West's double standards in dealing with African and Third World countries. He said: "All along the Kimberly Process was running without problems. But the moment Zimbabwe discovered diamonds, then those opposed to Zimbabwe wanted to inhibit and prohibit the selling of her diamonds.... Those with their evil thoughts sought to ruin us. They will still want to ruin processes which benefit our country. They don't give up.

You defeat them in one area, they move on to another.

estern countries have launched a fresh bid to block the sale of Zimbabwe diamonds using the Organization for Economic Co-operation and Development, sources close to the Dubai Diamond industry have confided. The sources warned that Zimbabwe's standoff with the West over the exploitation of its diamonds is far from over, even after the West suffered repeated setbacks in past Kimberly Process summits.

Western efforts, the sources said, now aimed at using the 34-member strong OECD to pressure the jewellery industry worldwide from sourcing diamonds from targeted countries, principally Zimbabwe.

"The battle is not over. There are still situations meant to disallow Zimbabwe diamonds from trading. But we are there for you. We ask Western powers that as they make rules on African minerals, they cannot make them without Africa getting involved," the source said.

The OECD was founded in 1960 when 20 countries originally signed its founding convention. All of the founding nations are Western, mostly European, with the exception of America.

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From 2007, talks with BRICS countries (Brazil, Russia, China, India and South Africa) and Indonesia have been dragging on and on around the OECD's maze of membership rules.

Since then, these countries have only been offered a programme of "enhanced engagement", well short of actual membership. Contrastively, the KPCS has 81 countries which translate to 54 participants.

The EU as a bloc counts as a single participant, with the majority of KPCS members coming from diamond producing countries of Africa.

The West's new strategy of using the OECD puts the matter beyond both the Kimberly process, and its many African producers of diamond who are not members of the OECD. Well-grounded reports indicate that South Africa which is a member of the KPCS has already raised a protest letter with the Secretary General of the OECD on the matter, arguing the West cannot raise new rules for the world diamond industry without the involvement of producer nations who whilst not belonging to the OECD, are in the majority and real owners of the diamond resources.

Reacting to this disclosure, the President hit out at the West's double standards in dealing with African and Third World countries. He said: "All along the Kimberly Process was running without problems. But the moment Zimbabwe discovered diamonds, then those opposed to Zimbabwe wanted to inhibit and prohibit the selling of her diamonds....

Those with their evil thoughts sought to ruin us. They will still want to ruin processes which benefit our country. They don't give up. You defeat them in one area, they move on to another."

He noted that the new rules and regulations which the west was developing were meant to inhibit the marketing of Zimbabwe's valuable

Mines to Market | May-June’ 2014

INDUSTRY WATCH

President Mugabe

mineral commodities. He adverted to recent divisions within the EU over the sale of Zimbabwean diamonds where some EU countries, led by Belgium, opposed further sanctions on Zimbabwe diamonds.

"Belgium won the fight, to the chagrin and disappointment of Britain, and we have conducted two auctions there", President Mugabe said.

Commenting for the first time on Zimbabwe's recent boycott of the EUAfrica Summit, the President lightheartedly noted: "In Belgium they do much more than the selling of diamonds.

Recently they also hosted the EU-Africa Summit and initially, President Mugabe of Zimbabwe which produces diamonds was not invited. Later, they changed heart and he got invited conditionally: he could come, but not with his wife. But I am married and my priest said you are now one (pointing at the First Lady). The priest further said what God has put together, let no man put asunder! I could not see how I could go there and leave behind this other me!"

To laughter and in an apostrophic address to the Europeans, he added: "You who fought so successfully for our diamonds to come (to Belgium), why didn't you fight for Mugabe to come there too? ... I am not married to diamonds, mind you. I bought her (First Lady) that ring; she bought me this one. It has one little diamond. She said that is what she could afford, but added: "it does not matter as long as I have your heart. It is a big diamond."’ The President was accompanied on the tour by the First Lady, Amai Grace Mugabe, his daughter Bona and her husband Simba Chikore, Zimbabwe's Kuwait-based Ambassador Marongwe, who is also accredited to the United Arab Mines to Market | May-June’ 2014

Emirates, and senior Government officials who include the Secretary for Foreign Affairs Ambassador Joey Bimha.

Also in attendance wereDr Robert Mhlanga of Mbada Diamonds and Mr Abu-Ali Imad of DMC. The tour which was meant to familiarize the President with diamond auction processes, lasted the whole afternoon. The President also hinted that Zimbabwe would soon engage the UAE authorities towards easing travel arrangements between the two countries.

EU's New Move: The European Union, which begrudgingly lifted its illegal sanctions on the Zimbabwe Mining Development Corporation recently, is now on a spirited drive to redefine blood diamonds so that Zimbabwe's gems fall within that category.

The Kimberley Process Certification Scheme, an international diamond regulatory body, certified Zimbabwe's diamonds as clean.

Mines and Mining Development Secretary Professor Francis Gudyanga told The Herald on Monday that European countries under the Organization for Economic Co-operation and Development -- also known as the Paris Club -- were keen to have Zimbabwe's gems classified as conflict diamonds.

Prof Gudyanga, who sits on the Dubai Diamond Exchange, said Zimbabwe and other diamond producing countries were going to resist such moves.

He said the issue would come under intense discussion at the DDE meeting in Dubai next week.

"We are going to attend the Dubai Diamond Exchange board meeting on the 8th of April, 2014 where we are going to

discuss a counter to the Organization for Economic Co-operation and Development," Prof Gudyanga said.

"They want to put additional conditions to the KPCS to define conflict diamonds and we are resisting that."

The European Union lifted sanctions on ZMDC last year following intense pressure from some of its members in the diamond trade.

Zimbabwe subsequently conducted its maiden diamond sale at the Antwerp bourse in Belgium.

The country is now exploring new diamond markets in the Middle East.

Zimbabwe, Prof Gudyanga said, would propose to the DDE board to host a diamond conference here in November.

Alternate Markets: ZIMBABWE is hunting for alternative markets for its diamonds amid indications government may dump Antwerp World Diamond Centre in Belgium in favour of the Dubai Diamond Exchange in the United Arab Emirates (UAE), or the Shanghai Diamond Exchange in China.

President Robert Mugabe -- whose wife Grace was recently barred by the European Union from travelling to the EU-African summit in Belgium -- has taken a personal interest in the matter.

Mugabe has been in Dubai since last week where he is touring the Dubai Diamond Exchange Centre as well as setting up an embassy in the UAE. Insiders say the embassy will have no major diplomatic task other than overseeing the sale of the country's diamonds.

Mugabe's trip has raised eyebrows, particularly because he left the country without reporters although he normally travels with state media journalists when 15

INDUSTRY WATCH on official government business. This fuelled speculation Mugabe -accompanied by his wife, his daughter Bona and her husband Simba, Mbada Diamonds chairman Dr Robert Mhlanga, Abu-Ali Imad of Diamond Mining Company and Foreign Affairs secretary Joey Bimha -- was also conducting personal deals, hence the decision to leave behind scribes.

Charamba said Mugabe's visit to Dubai had nothing to do with the disagreements with the EU. He said the visit was arranged before the First Lady was denied a visa adding the president would have passed through Dubai on his way to Belgium, if he had attended the EUAfrica summit last week.

He however said the president did talk about his row with the EU officials in a light-hearted manner, suggesting that the Europeans were just after Zimbabwe's diamonds but did not care about the relationship they had with the country's leaders.

"The president asked, 'You who fought so successfully for our diamonds to come to Belgium, why didn't you fight for Mugabe to go there too'," said Charamba.

However, Mugabe's spokesman, George Charamba, told Zimbabwe Independent yesterday that the president had visited the Arab country to seek a "personal understanding" of the dynamics of the diamond industry. He said the visit followed a cabinet decision to try different diamond markets to establish where the country's gems would fetch greater value.

"We are gaining experience in respect of an area which is very murky and complex," he said.

Charamba said the president had gone through an educational process of the diamond industry from production, processing and the marketing.

He justified the exclusion of journalists, saying the trip was essentially a learning visit.

"We wanted an environment to optimize on learning," he said. "We met with the owners of the Diamond Exchange Centre, we met the administrators of the auction system and thirdly we met buyers. The idea was to meet all the players and get a complete understanding."

Charamba said it was important for the president to get firsthand information of the industry so that he is capacitated with knowledge to help him when he gets briefings from officials. He said the background would also assist in interactions with producers and the market.

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Mugabe's visited is however being viewed with suspicion both at home and abroad, particularly in Antwerp. There has always been speculation that most of the revenue from diamonds mined at Chiadzwa has not been finding its way to Treasury but instead to the pockets of few top officials who have benefitted the most.

Diamond industry players believe Harare could have been attracted to Dubai because it is possible to market diamonds there in the murky underworld. EU's head of delegation in Zimbabwe, Ambassador Aldo Dell'Ariccia also suggested that Dubai would allow Zimbabwean officials "opacity in the transactions" which will not be obtained from Antwerp, although he expressed hope that the country would still continue selling its diamonds in Europe. it was important for the president to get firsthand information of the industry so that he is capacitated with knowledge to help him when he gets briefings from officials. He said the background would also assist in interactions with producers and the market.

"In the two auction sales of diamonds that took place in Antwerp, there was full information about the quality and quantity of the stones, the price fetched and therefore the amount of funds that will go to Zimbabwean coffers," Dell'Ariccia said.

"The auction in Dubai took place last week and at this stage I still do not know how much was sold and how much will go to the Zimbabwean fiscus. Dubai is a fiscal paradise; there is certain opacity in the transactions. It is possible the auction can be transparent but it is also possible that it may not be."

Charamba said the average prices fetched in Dubai were higher than those at Antwerp.

He said Mugabe would use his visit to explore the possibility of increasing interaction between Zimbabwe and UAE. A visa regime exists between the two countries, but Mugabe wants travel requirements eased to allow for easier movement of people between the two countries given that Emirates Airways is making six trips between Harare and Dubai per week.

Resolution against KP: A motion for a resolution that assumes the Kimberley Process Certification Scheme (KPCS) – the supervisory body established to ensure conflict diamonds from entering the mainstream rough diamond market – has failed in combating the prevalence of conflict diamonds was recently passed by the Belgium Parliament.

This motion claims that the KPCS has failed in its purpose and does not provide markets with the assurance that the diamonds are not conflict diamonds.

This is partly related to the fact that the KPCS has allowed Zimbabwe to reexport goods from the Marange diamond fields, which, according to the KPCS, are 100% 'conflict free', but which according

Mines to Market | May-June’ 2014

INDUSTRY WATCH to several nongovernmental organizations (NGOs), are illegitimate.

Dubai Diamond Exchange chairperson Peter Meeus, a former Antwerp World Diamond Centre director-general, tells Mining Weekly that he strongly disagrees with this.

“I believe that NGOs are calling for additional efforts to be put in place to ensure that assumed human rights violations related to the trade, manufacture or mining of diamonds do not take place.”

In 2014, diamonds are the most strictly checked raw materials in the world. With the exception of uranium, no other raw materials are so strictly controlled and observed as rough diamonds. More than 99.8% of all diamonds produced are certified by the KPCS. Problem countries, such as the Central African Republic (CAR), Côte d'Ivoire, Guinea and Venezuela, do not even represent 0.2% of world production.

This should be regarded as a request by the Belgium government to the European Com-mission (EC) to have additional supply chain controls put in place that go beyond what is currently provided for in the KPCS. The impact of such a resolution and the call for additional supply chain controls on the diamond industry going forward may see the implementation of tighter legislative measures by the EC, which may, in turn, negatively impact the global trade of diamonds.

“Indirectly, these measures could further impact on trade as they may result in an informal embargo against certain countries where there are assumed human rights violations,” says Meeus.

In 2014, diamonds are the most strictly checked raw materials in the world. With the exception of uranium, no other raw materials are so strictly controlled and observed as rough diamonds. More than 99.8% of all diamonds produced are certified by the KPCS. Problem countries, such as the Central African Republic (CAR), Côte d'Ivoire, Guinea and Venezuela, do not even represent 0.2% of world production.

Already in April 2013, when the problems started in the CAR, the KPCS – of which Meeus is a part of on behalf of the UAE – took measures to ensure that the country could not export illegal diamonds.

In this way, the KPCS was the first and only system to ensure, in a very short time, that rebels do not get the opportunity to finance insurgencies through the sale of rough diamonds.

Despite this, NGOs have started to criticize the KPCS for failing to address the issue of human rights abuses in the world's diamond fields.

Mines to Market | May-June’ 2014

Mugabe's Ire: The decision by Europe to refuse Grace Mugabe a visa so she could travel to Brussels for the EU-AU summit held recently has invited her husband's ire.

Speaking Wednesday while on a visit to Dubai, where Zimbabwe has decided to sell its diamonds, President Robert Mugabe praised the owners of the Dubai Diamond Exchange whom he claimed are sympathetic to Zimbabwe.

"Here we have the same Third World people with sympathies for us. You do not have the evil heart of Europe," the Staterun Herald quoted Mugabe as saying.

Mugabe has in the past been accused of un-presidential behaviour for using hate speech against perceived opponents or enemies.

Mugabe, who was in Dubai together with Grace, went on to accuse the European Union of trying to separate him from his wife and said he couldn't have attended the Summit without her.

In an indirect address to the Brusselsbased Antwerp World Diamond Centre (AWDC), which lobbied for the lifting of the restrictive measures so that ZANU PF could sell the country's diamonds, Mugabe said the body should have fought for Grace's travel.

Belgium for years pushed for the targeted sanctions to be removed so that the AWDC could trade with Zimbabwe, regardless of the human rights abuses and

corruption reported at the country's Chiadzwa diamond fields in Marange.

Lobbying started in 2010, when a delegation from the AWDC toured the Zim mining operations and gave a glowing appraisal of the situation.

That visit came barely two years after an estimated 200 diamonds panners were murdered in late 2008, following the government launch of a military led crackdown at the Chiadzwa alluvial fields.

Ordinary Zimbabweans have not benefitted from the discovery of diamonds in the country, estimated to be the world's fourth largest reserves.

Zimbabwe reportedly earned $29.3 million from its latest diamond sale in Dubai, but very little of this, if any at all, is likely to flow into national coffers.

There are suggestions that Mugabe is moving to eliminate other firms involved in diamond mining in the Chiadzwa fields, so that a company linked to him will be the sole operator. n

17

COVER STORY

Jewellers Offer Attractive Schemes to Lure Consumers

Modi won the election after promising to revive economic growth from near a decade-low.

His poll victory, the biggest for any single party in three decades, drove the benchmark S&P BSE Sensex to an all-time high this month, as foreign investors bought about $10 billion of shares in 2014 and domestic mutual funds attracted the most inflows in five years in May.

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lthough the newly elected government in India has started functioning, some uncertainty still prevails over the gem & jewellery industry, as the demand in local market has still not picked up to the expectations.

So, retailers have extended red carpet to the potential consumers by offering various schemes, according to various media reports.

Joyalukkas India Pvt. Ltd, a gold and diamond retailer in India, is offering 12 free BMW cars and two kilograms of bullion in a lucky draw as it fights a lean season in the world's second-biggest buyer of the yellow metal, reports livemint.

Others including Gitanjali Gems Ltd, Rajesh Exports Ltd and Kalyan Jewellers Ltd are promising everything from discounts to an opportunity to dine with Bollywood celebrities.

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The monsoon season starting this month, usually considered a lean period for gold demand due to the lack of festivals and weddings, is threatening to deepen a sales slump caused by import curbs imposed last year. India raised duties on inbound shipments of the metal three times in 2013 to contain a record current-account deficit that pushed the nation's currency to an alltime low.

“This is the first time we have come out with a single promotion for entire India and the Gulf countries to boost demand during the rainy season,” Joy Alukkas, managing director of Joyalukkas, said by phone from Kochi on 18 June. “There are holidays in the Gulf countries during these months and non-resident Indians come back to their hometowns in south India. We are hoping to tap that market.”

“Joyalukkas's offers, valid until 2 August, are likely to boost sales this monsoon season by 10% to 15%,” Alukkas said.

The group has 47 stores in India, 32 in the Middle East and one each in the UK, Singapore and Malaysia.

Rekindling demand Sales of Gitanjali Gems dropped 24% to Rs.124,400 crores in the financial year ended 31 March, the first annual decline in revenue since listing on the stock exchanges in 2006, according to data compiled by Bloomberg.

Rajesh Exports' sales slid 24% to Rs.235,400 crores, the first annual slump since 2003, while Titan Co. Ltd's Mines to Market | May-June’ 2014

COVER STORY “This time we expect demand to be better as the mood is positive because of the change in government,” he said. “People assume the government will be friendly for gold.”

jewellery revenue grew 6.5% to Rs.863,200 crores, the slowest pace since at least 2008.

“While freebies may stem the decline in sales, Prime Minister Narendra Modi's efforts to revive economic growth may have a greater impact on rekindling jewellery demand,” according to Abhijeet Kundu, an analyst at Antique Stock Broking Ltd. Modi won the election after promising to revive economic growth from near a decade-low. His poll victory, the biggest for any single party in three decades, drove the benchmark S&P BSE Sensex to an all-time high this month, as foreign investors bought about $10 billion of shares in 2014 and domestic mutual funds attracted the most inflows in five years in May.

Monsoon risk Gitanjali's shares have gained 28% this year in Mumbai, compared with the 18% rally in the benchmark S&P BSE Sensex index has more than doubled to Rs.188.55, while Titan has advanced 42% to Rs.326.05.

'Rain and shine' “The new government has pledged to build 100 new cities, introduce highspeed trains and take steps to cool inflation while simplifying tax and investment rules To see an acceleration in earnings growth, the discounts have to come down and volumes have to pick up,” Mumbai-based Kundu at Antique said by phone on 19 June. “There is some amount of revival in gold jewellery demand. By December, if the consumer sentiment improves further, then you could see better volume growth.”

“Gitanjali Gems, India's biggest gold and diamond jeweller by revenue, will announce a rain and shine plan next month, offering discounts on ornaments and jewellery making charges,” Chairman Mehul Choksi said.

“Sales are flattish at the moment because stocks are less and people are waiting for new policies to be unveiled by the new government,” he said by phone from Mumbai on 17 June. “We expect demand to pick up because of these offers and the restrictions being eased as well.”

Deficit shrunk India raised gold import taxes to 10% and required shippers to supply 20% to jewellers for export and sell 80% on the local market. The steps resulted in a drop in demand for the metal, helping China surpass the South Asian country as the world's number one buyer.

The industry expects the Modi administration, which took office last month, to reduce the tax in the federal Mines to Market | May-June’ 2014

budget to be presented 10 July because of improving economic conditions, according to the All India Gems & Jewellery Trade Federation.

The curbs on gold helped narrow the current-account deficit to $32.4 billion in the financial year ended 31 March, from a record $87.8 billion a year earlier, the Reserve Bank of India said 26 May. A shrinking deficit aided the rupee in its recovery. It has rebounded about 13% since touching an all-time low of 68.845 against the dollar in August.

“The rally in the rupee and reduction in the deficit may allow Modi to ease the restrictions on imports,” Rajesh Exports Chairman Rajesh Mehta said by phone from Bangalore, on 17 June. “A pick-up in demand may result in a growth of as much as 25% in net income this financial year,” he said.

A weak monsoon poses a risk as almost 65% of Indian purchases are from the rural areas, according to UBS AG. The monsoon will be 7% below normal this year as an El Nino emerges, the nation's weather department said 9 June.

Monsoon rainfall is the main source of irrigation for India's 263 million farmers as about 55% of the crop land is rain dependent. An estimated 833 million people out of the 1.2 billion population depend on agriculture for their livelihood and the sector accounts for 14% of the nation's gross domestic product.

“India's gold imports may climb 25% to 800 tons in the year that began 1April as the Reserve Bank of India may relax some restrictions,” Citigroup analysts Rohini Malkani and Anurag Jha said in a report on 22 May. Shipments were 845 tons in 2012-2013, the finance ministry says.

“With the kind of promotions and expectation of a change in import tax, we should see some normalcy in demand,” C.P. Krishnan, a director at Geojit Comtrade Ltd., said by phone from Kochi on Sunday. Bloomberg. n

Bollywood stars “We are looking at a good year,” said Mehta, whose 82 stores in Karnataka state have waived ornament making charges to increase sales.

Billionaire T.S. Kalyanaraman's Kalyan Jewellers offers its regular customers a chance to dine with a celebrity and watch its brand ambassador Aishwarya Rai Bachchan on the sets of a film. “Kalyan has been rewarding loyal customers with such offers depending on the number of times they visited the store in a year,” said Ramesh Kalyanaraman, executive director of the Thrissur-Kerala based jeweller.

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ISRAEL SECTION

Noa Pardo is New Managing Director of IDI Hong Kong

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amat Gan, Israel, June 5, 2014: The Israel Diamond Institute Group of Companies (IDI) representative office in Hong Kong, IDI – Asia Pacific Ltd., has a new managing director. Ms.Noa Pardo replaces Ms. Gilat Elizov Gefen, who served in this position for the past two years.

The IDI Hong Kong office is responsible for promoting trade with Asian markets, especially Hong Kong and China, which have become a major focus for Israeli diamond exports. The office serves as a hub for Israeli diamond companies doing business in the region, providing office services as well as marketing and business information. It also facilitates business contacts between Asian and Israeli companies.

Noa Pardo has extensive experience in the diamond industry, having worked for some of the largest Israeli diamond companies in Israel and Hong Kong.

IDI Chairman Moti Ganz said, “With the expansion of Israel's trade with Asia, the IDI Hong Kong office has proven to be a huge strategic asset. Our foothold there has allowed us to significantly grow business opportunities and trade with the region.”

IDI Managing Director Eli Avidar congratulated Ms. Pardo on her new position. “Noa is highly experienced in the diamond industry and deeply understands the needs of Israeli companies marketing to Hong Kong and throughout Asia. She is very well suited to head IDI's Hong Kong office and to represent our industry there. We wish her great success,” Avidar said.

IDI Asia Pacific Ltd. is located in the AON China Building in Hong Kong's Central Business District, the heart of all commercial activities and the location of major banks, multinational companies and retail outlets. n 20

Noa Pardo has extensive experience in the diamond industry, having worked for some of the largest Israeli diamond companies in Israel and Hong Kong.

Mines to Market | May-June’ 2014

ISRAEL SECTION

This is the first time that we are reaching out to local jewelers in the United States. We're holding the first Israel Diamond Show in Texas because we believe in the vibrancy of this market.

Texas Jewelers Association (TJA) and the Israel Diamond Institute (IDI) to Hold First

Texas-Israel Diamond Show Offers Direct Buying Opportunity to Local Jewelers The Texas-Israel Diamond event will showcase close to 30 vendors from Israel, with diamond offerings in every size, shape, color and price point in loose diamonds and luxury diamond jewelry. The timing will enable jewelers to replenish stocks before the holiday season.

About the Texas Jewelers Association The Texas Jewelers Association is a statewide organization of retail jewelers and vendor associates whose purpose is "promoting the general welfare, standing and prosperity of the jewelry industry in the state of Texas."

Since 1906, the Texas Jewelers Association has served the needs of the Texas Jewelry Industry. For more information on the Texas Jewelers A s s o c i a t i o n , v i s i t http://TexasJewelers.org or email Texas Jewelers Association Executive Director at: Ann@TexasJewelers.org

Mines to Market | May-June’ 2014

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his fall strategic cooperation between the Texas Jewelers Association (TJA) and the Israel Diamond Institute (IDI) will produce the first Texas-Israel Diamond Show in San Antonio from September 29 – 30, 2014. This is the first time that jewelers in Texas and surrounding states will be offered the opportunity to buy diamonds directly from the source. The unique trunk show, which will bring dozens of leading diamond dealers from Israel, will be held in conjunction with the TJA Convention, September 27 – 30, 2014.

According to Eli Avidar, IDI Managing Director, this show is a win-win opportunity for both vendors and buyers. “In Israel's diamond center, jewelers can find whatever diamonds they could possible look for – in every size, cut, quality and price. Now, for the first time, we are bringing these advantages directly to them,” he said.

Avidar added, “This is the first time that we are reaching out to local jewelers in the United States. We're holding the first Israel Diamond Show in Texas because we believe in the vibrancy of this market.”

The organizers are also plannng social events and networking opportunities at the show, as well as special rates on accomodations. The show will be open to jewelers and other authorized members of the trade. Registration and valid trade credentials are necessary for admittance. To register, visit http://texasjewelers.org/ n

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NEW LAUNCH

SWAROVSKI PROUDLY PRESENTS

GEM VISIONS THE BRIDAL BOOK Swarovski first presented its debut Gem Visions publication to the fine and bridge jewelry industries eleven years ago to great acclaim. Now established as a highly respected industry trend and design service, and an inspirational reference for designers and media specialists, Gem Visions turns its attention to the bridal segment. Gem Visions – The Bridal Book explores up-and-coming social and cultural megatrends and their profound effects on design directions relevant to all things bridal – the engagement, the wedding and the anniversary.

RANI HAAR by Karwar Ornaments, India Swarovski Marcasite; 925 Silver

GEM VISIONS – THE BRIDAL BOOK Swarovski took a new approach for the concept for Gem Visions in 2014, moving away from a focus on general trends to a detailed concentration on special themes that are representative of the zeitgeist. The new concept emphasizes story telling as the key to understanding the passion and lore of gemstones and has been further articulated in Gem Visions – The Bridal Book.

Gem Visions – The Bridal Book is an in-depth study of the intimate association with the selection and wearing of jewelry for the bride, the groom and their wider circle of family and friends. It delves into every facet of the life-changing decision to marry and draws to attention the gemstones and created stones that have come to represent this lifetime commitment.

Starting with the essential rings and other jewelry pieces and accessories discussed in the Engagement and Wedding sections, the book goes on to examine the specific bridal themes that are increasingly popular among contemporary brides. The trends Daydream Princess, Natural Affairs, Urban Minimalist and Cultural Roots all speak to their desire for personalization. The special edition also addresses specific needs of the Groom, and even possible choices of Anniversary Gifts.

A TROPICAL BRIDE by TANISHQ, TITAN INDUSTRIES LTD., India SWAROVSKI Genuine Rhodolite - Raspberry

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Mines to Market | May-June’ 2014

NEW LAUNCH

THE GEMSTONES Swarovski Zirconia - Capturing Life’s Magical Moments Whatever the bridal related occasion, Swarovski Zirconia can capture its magic speaking an emotional language of love and commitment. For life changing events only the very best will do, and Swarovski offers stones cut and polished in its own state-of-the-art facilities that are crafted to conform to consistent and impeccable quality standards, emulating the brilliance of a diamond.

Swarovski Zirconia stones are available in the groundbreaking Round Pure Brilliance Cut plus an expanded range of classic fancy cuts. The Square Princess,

Marquise, Pear, Oval, Baguette Princess and Cushion cuts all offer dramatically different, yet traditional options.

Meanwhile, the strongly geometric cuts such as the Round, Square and Baguette are equally suited to progressive brides, best described as Urban Minimalist, as are the more contemporary Triangle and Chaos cuts.

New for 2015 and special to Swarovski Zirconia is the 88-Facets cut, with an auspicious name that speaks of good fortune and happiness. The number eight signifies infinity, perfectly matching the eternal vows of the bride and groom.

Today’s story of a romantic wedding also reveals a trend for modern, independent brides-to-be to express their individuality with drama and flare.

It is for these fearless women that Swarovski has created its stunning Zirconia Diamond Colors: Fancy Yellow, Fancy Pink, Fancy Blue, and Fancy Brown. They are perfect for a wide range of wedding themes from the casual or rustic to ethnic traditional. The recently added Fancy Green and Fancy Purple both suit fanciful themes as well as remaining on-trend for elegance and glamour.

Swarovski Genuine Topaz – A Precious Love PADMAJA by SURYA GOLDS, India Swarovski Zirconia White, Green TCFTM Red TCFTM, Fancy Purple TCFTM; 14K Gold

Mines to Market | May-June’ 2014

With genuine topaz Swarovski has taken another bridal favorite and through its exceptional expertise in

TENDER TOUCH by B.N. Jewellers, India SWAROVSKI Genuine Passion Topaz Blazing Red; Platinum

precision cutting, has transformed it into a dazzling beauty. Swarovski’s new Natural Brilliance cut releases all the smoldering allure inherent in each naturally occurring stone. White topaz, uniquely feminine and timelessly traditional, also achieves stunning new heights with this innovative cut. For contemporary themes such as Urban Minimalist, Swarovski Genuine Topaz is available in a vivid range of colors created with the unique Thermal Color Fusion (TCF™) treatment. Whatever the bridal theme, the bride’s heart will guide her to the perfect Swarovski Genuine Topaz that will tell her story when set in a ring or other fine jewelry piece.

MOVERS & SHAKERS Swarovski’s Gem Visions – The Bridal Book also features two outstanding, high profile, experts for all things bridal: Abby Larson of Style Me Pretty and

BRIDAL BROOCH by KRIZZ, India SWAROVSKI ZIRCONIA White, Amethyst, Red TCF, Green TCF, Mint Green, Fancy Pink, Fancy Purple, Syn. Ruby Dark and Syn. Spinel Blue; 22kt Gold.

BRIDAL JEWELLERY by Farah Khan Fine Jewellery, India Natural Zambian Emeralds and Diamonds, 18 K White Gold

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NEW LAUNCH Rooted Deep Within by Emerald Jewel Industry India Ltd., India SWAROVSKI ZIRCONIA White, Red TCF, Green TCF and Arctic Blue TCF; 18K Gold

Carley Roney of The Knot Wedding Network. Abby contributes to the book with a moving preface, while Carley talks about her experiences, visions and dreams in a frank interview.

ARBOUR AMORE by GANJAM, India Swarovski Gemstones Topaz Rainforest, Honey, Poppy, Peridot, Citrine, Rhodolite, Grape Rhodolite, Smoky Quartz; 18K Gold

Abby Larson & Style Me Pretty Abby Larson founded Style Me Pretty in 2007 with the goal of establishing the ultimate insider’s wedding guide for today’s style savvy brides. Her editorial vision, beautifully presented by her husband and co-founder, Tait Larson, has succeeded in raising the website to a prominent position amongst the elite group of online bridal resources.

Visitors from around the globe regularly flock to the site in search of both inspiration and the practical help offered by the acclaimed Little Black Book and its collection of more than 1,700 top wedding service providers. Style Me Pretty now attracts more than 19 million page views by over 2 million visitors each month, confirming Abby and Tait Larson’s creation as one of today’s go-to-sites for all things Bridal.

Carley Roney of The Knot Network Carley Roney founded The Knot in 1996 with her partners to provide up-to-date, practical advice for modern women faced with the complexities of planning the perfect wedding. Its fresh voice took the sector by storm, and today The Knot Wedding Network together with its sister website, Wedding- Channel.com, offers invaluable information to brides-to-be throughout the United States. The site’s runaway success has led to a national presence in magazines and books, on television and through social media and mobile applications.

THE PROMISE OF PERFECTION Swarovski has energized the jewelry industry worldwide with its exquisite array of genuine gemstones and created stones, all of which are cut and polished in its own factories. These establishments strictly maintain the highest environmental, social and

PEACOCK NECKLACE by Jewels

by Queenie, India Natural Amethyst, Rubies, Emeralds, Sapphires & Diamonds; 14kt Gold & 925 Silver

SHUBH VIVAH by MAHI, India SWAROVSKI ZIRCONIA - White, Red TCF & Green TCF and Emerald beads; 925 Silver.

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CULTURAL TWIST by Sangam Jewels N Gold, India 10kt Gold & 925 Sterling Silver with Gold plating Stones: SWAROVSKI ZIRCONIA White & Fancy Yellow, Amber and Syn. Ruby Medium.

Mines to Market | May-June’ 2014

NEW LAUNCH Peacock panache by Jewels Emporium, India Tanzanite, Apetite, White Sapphires, Diamonds, Tsavorites, Sapphires in Various Colous; 18K Gold

SWAROVSKI LAUNCHES GENUINE GEMSTONES AND CREATED STONES INNOVATIONS & INSPIRATIONS at IIJS 2014 SWAROVSKI’S distinguished history of innovation and precision cutting of jewelry stones, dating back to the company’s foundation in 1895, has been extended far beyond the company’s original crystal business.

Starting in 1965, Swarovski has offered a unique and balanced selection of genuine gemstones and created stones made from the purest raw materials and crafted to satisfy the strictest standards for color, quality, size and shape. Bearing all the Swarovski hallmarks of perfection, brilliance and ingenuity, Swarovski Genuine Gemstones Alpinite Castable and Created Stones invite designers of fine and bridge jewelry and watches to unleash their creativity and capture their visions in beautiful gems.

quality standards and use the most sophisticated technology and advanced research and development to achieve the acme of state-ofthe- art production.

Each stone is crafted to meet the most stringent criteria of color, quality, size and shape, resulting in a uniformity of calibration and quality unrivalled in the industry. Swarovski Genuine Gemstones and Created Stones bear all the Swarovski hallmarks of perfection, brilliance, ingenuity and innovation, and share the company’s creative dynamism, which in turn brings artistic freedom to the jewelry industry, inviting designers to express themselves through a dazzling product selection, capable of bringing creative visions to life. n SEHRA by TARA JEWELS LTD. SWAROVSKI ZIRCONIA Mint Green TCF, Arctic Blue TCF, Fancy Blue, Alpinite - Olive & Green and Pearls; 925 Sterling Silver

Each year, Swarovski launches a collection of new genuine gemstone and created stone cuts and colors to stimulate creativity and push boundaries in jewelry and watch design.

The company is delighted to unveil its latest product launches to the Indian market at the India International Jewellery Show 2014. South Asia’s leading jewelry fair provides Swarovski with the perfect platform to promote its new developments right in the very heart of the industry. The novelties presented at IIJS 2014 all reflect the very essence of the company’s quest for creative perfection.

THE 88 FACETS CUT FOR ZIRCONIA Continuing its dedication to advancing the range of zirconia products with stunning new varieties, Swarovski launches the 88 Facets cut. Eight being a symbol for infinity, the cut’s auspicious name speaks of good fortune and happiness. Just like the number eight’s perfectly proportioned shape, the well-crafted, symmetrical facets of the innovative cut show balance and confidence. These wonderfully positive qualities make the new cut, which is available in pure white, ideally suited for bridal jewelry. Every single 88 Facets stone features a microscopic “Swarovski Zirconia” laser engraving that speaks of Swarovski quality and authenticity.

GENUINE TOPAZ KASHMIR BLUE

Genuine Topaz Kashmir Blue

Swarovski Genuine Topaz is available in a wide range of extraordinary, bright colors. Ready to join these shades is the exciting new addition, Kashmir, which is presented at IIJS 2014. Same as the other topaz colors, the rich blue is created with TCF™ (Thermal Color Fusion), a unique surface enhancement process that is patented in both Austria and the United States. It brings out brilliant colors in the naturally white genuine material without irradiation and is safe for both the consumer and the environment.

ALPINITE CASTABLE

Zirconia 88 Facets Cut

As a proof of the company’s belief in developing top quality products and remarkable innovation, Swarovski has succeeded in offering an affordable imitation of emerald and blue sapphire. The new castable addition to

Swarovski’s synthetic stones portfolio is cut for utmost brilliance, perfectly calibrated and uniform in color. Available in Emerald Green, Sapphire Blue and Black, Alpinite Castable captivates the beholder. This can be experienced at the Swarovski booth – 1H041, 1H043, 1H045, 1H047,1G042, 1G044, 1G046, 1G048 – at the India International Jewellery Show 2014.n Mines to Market | May-June’ 2014

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NEW LAUNCH

Fashion Bloggers unveil Kama's New Fancy Cut Collection A never-seen-before moment was 'Tour De Factory' when the bloggers got a chance to witness behind the scene actions at Kama's manufacturing unit as a part of the launch event. This opportunity gave bloggers an insight into the day-today functioning and the strenuous production processes involved in massmanufactured diamond jewellery. The factory tour did leave most enlightened with each claiming how fascinating it was to discover the little known secrets about their favourite diamond jewellery.

The collection comprises exquisite designs in rings, earring-pendant sets, bracelets and necklace sets.

The fancy diamonds are painstakingly sourced from different parts of the country and fashioned into jewellery that fits the fusion styles of modern day classics with glamorous twists.

Each of the special cut stone lends their unique distinction to the jewellery making each piece an exclusive possession.

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ell known fashion bloggers from Mumbai got together to unveil Kama's new diamond jewellery collection with fancy cuts.

Kama hosted the event along with Mumbai gloss.

The event #DateWithDiamonds, conducted at the Kama boutique in Mumbai on 21st June 2014, began with the bloggers receiving insights about the company and the brand. The light hearted presentation gave the bloggers different factors that guided Kama's foray in to retail and all the aspects that differentiated Kama from the other retailers in the market.

The afternoon warmed up when the bloggers got a real dekko at the fancy diamond jewellery, truly fit for royalty.

The Asscher - cuts, cushion- cuts, emerald -cuts and rose –cuts held them captive and the impromptu photo-ops successfully increased the proximity between the precious stones and the bloggers.

The collection comprises exquisite designs in rings, earring-pendant sets, bracelets and necklace sets. The fancy diamonds are painstakingly sourced from different parts of the country and fashioned into jewellery that fits the fusion styles of modern day classics with glamorous twists. Each of the special cut stone lends their unique distinction to the jewellery making each piece an exclusive possession.

Inspired by royalty and captivated by the uniqueness of the special cut stones, Kama's signature collectioncomprises of radiant fancy cut jewellery that whispers of luxury and glamour. The mesmerizing collection is a result of Kama's continued focus on introducing exciting products for discerning diamond buyers.

Fancy shaped, specially cut diamonds have regained popularity in the recent times. Kama has created an exclusive jewellery collectionfeaturing Asschers, Cushions &Emeralds. This celebrated collectionfeatures a range of styles from intricately detailed to elegantly refined set in 18kt white & yellow gold toaccentuate the sparkle of the stunning white & yellow diamonds.

Colin Shah, MD with Fashion bloggers at the Kama bloggers Meet

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Mines to Market | May-June’ 2014

NEW LAUNCH Kama's Asscher cut collection is a striking new way to add a dash of g l a m o u r. W h a t distinguishes Asscher cuts from a similar square outline of a princess cut is Asscher's X shape, cropped corners& step-cut facets that open focus on clarity.Its strong art deco influence has found renewed interest among diamond lovers.

While Asscher cuts are fancy, cushion cut diamonds have a vintage charm. They effortlessly combine square cuts with rounded corners, adding further brilliance to the stone. The stone when combined with diamond halos looks bigger and even more beautiful. Kama's Signature collection with cushion cut centers emphasizes the rich heritage that the special cut offers.

Sandeep Jain, VP Retail & Fashion bloggers on a Factory Tour at the Kama bloggers Meet

Designed in reverence to its namesake gemstone, the emerald cut diamond has strikingly elegant appeal. The nature of its cut, with the large top surface accentuates its clarity and flawlessness. Very different from the classic round brilliant shape, the cropped corners and an elongated shape of an Emerald cut diamond in Kama's

signature collection produces a stylish silhouette that flatters the fashionable you.

Exclusively available at the Kama Boutique in Mumbai, Kama's new suite of jewellery with special cuts captures the beauty of each of these three shapes, each one equally stunning yet distinctively unique. n

Hari Krishna Exports Pvt. Ltd. announces a new CSR initiative to mark its 22nd Year in the Diamond Industry.

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ari Krishna Exports a Diamond Manufacturing and Exporting Company since 1992, has earned a global reputation as the most trusted diamond supplier. It receives? direct rough supply from the DTC and Rio Tinto.

On the day of its 22nd Anniversary i.e.on 2nd July 2014 Mr Ghanshyam DholakiaManaging Director announced the new CSR initiative to be adopted by the company, which is providing lunch to 100 underprivileged persons, old people, widows, etc. on the birthdays of the? customers of the company, hoping their blessings to do wonders for the? ir customers. Along with this the company continued to organize the Blood Donation Drive as was done earlier in the year in the month of February 2014.

The one day campaign on their anniversary revolved around the belief 'It's in your blood to Save Lives' which helped them collect 315 bags of blood due to the strong support of employees, customers and bankers who were instrumental in the success of the drive.

The day also marked a collective activity Mines to Market | May-June’ 2014

executed by all the employees of Hari Krishna Exports Pvt Ltd which involved wearing a yellow T shirt promoting the concept of 'Change for the better'. Mr. Ghanshyam Dholakia said 'Change for the better' simply put can be adopted in

one's personal as well as professional life.

It is almost like a resolution one keeps starting with implementing short term changes and moving on to long term changes for betterment of oneself and the company. n 27

NEW LAUNCH

Kiran Jewels (India) to showcase Multiple Diamond Jewellery Collections this July IIJS 2014.

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iran Jewels (India), group company of Kiran Gems- the world's largest manufacturer of diamonds, has plans to show case multiple diamond jewellery collections to complement its grand presence with 4 locations this IIJS in the month of July. The designs under each collections are mutually exclusive and have varies sources of inspirations. Some existing designs are given a fresh look considering the inputs from various customers and are planned to be revealed during the upcoming July IIJS. The collections are named- “Color Cocktail”, “Criss Cross”, “Hand Picked”, “Mythical Beauty of Nature”, “Party Wear” and “Western Touch”. These collections would be available for customers in its island booth in Hall 66W091-93-95, 6U092-94-96.

Every collection has its own specialty and designed keeping in mind the users. The designs would be available in various diamond qualities to match the customer price points. There has been creative use of color stones, pearls, enamels and yellow and white gold to enhance the customer appeal. The collections would start from the lightest range to heavy jewellery of 3.00 ct to 43 ct carats of diamonds, of VVSI to EF-JK clarities and color respectively.

It will be available in 20 gms to 200 gms weight of gold.

Color CockTail

Criss Cross

The jewellery design appeal is collection specific that targets urban and semi urban girls/women and to their beauty in various social setups. The look of the jewellery ranges from Indian ethnic, cocktail ensemble, party wear to office wear. Since every collection is designed by individual designers exclusively, the freshness of the designs are intact. n

Party Wear

Every collection has its own specialty and designed keeping in mind the users. The designs would be available in various diamond qualities to match the customer price points. There has been creative use of color stones, pearls, enamels and yellow and white gold to enhance the customer appeal.

The collections would start from the lightest range to heavy jewellery of 3.00 ct to 43 ct carats of diamonds, of VVS-I to EF-JK clarities and color respectively.

Western Touch

Handpicked

Mythical Beauty of Nature 28

Mines to Market | May-June’ 2014

NEW LAUNCH

An Exclusive Collection of Chandbalis With A Modern Twist by Varuna D Jani

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s the festive season approaches, renowned adornologist and jewellery designer has created a unique collection of Chandbalis for today's modern woman. The collection is exceptional, infusing a fresh twist to the beautifully inherited jewellery artistry from the Nizam dynasty.

Varuna D Jani believes that every woman today is modern, independent, stylish and yet attached to the traditional Indian values and sensibilities. The collection includes Chandbalis in a variety of styles; with a jeweled center and delicate stone or pearl hangings.Studded with glittering precious stones and embedded in sparkling white gold, each individual pair exudes a royal touch.

Varuna D Jani believes that every woman today is modern, independent, stylish and yet attached to the traditional Indian values and sensibilities. The collection includes Chandbalis in a variety of styles; with a jeweled center and delicate stone or pearl hangings.Studded with glittering precious stones and embedded in sparkling white gold, each individual pair exudes a royal touch. The crescent ornamented with rubies, emeralds and multi-colored sapphires are certain to entice you and make you the show stopper at any occasion. The spectacular combination of inspiration from the regal past to the versatility of Varuna D Jani's contemporary design makes each piece timeless. The collection can be beautifully worn with saris, anarkalis and evening gowns.

Talking about her collection Varuna D Jani said, “I have created these Chandbalis taking inspiration from today's woman and her qualities. She is t h e t r e n d s e t t e r, k n o w n f o r h e r confidence and at the same time inclined to her traditions. I wish to transform this Devi into a Diva without losing her identity. Blending traditions with new age innovative designs, my collection is a treat to the new age woman. Every set is intricately designed to suit different personalities and is not necessarily huge or heavy.� n

I have created these Chandbalis taking inspiration from today's woman and her qualities. She is the trendsetter, known for her confidence and at the same time inclined to her traditions. I wish to transform this Devi into a Diva without losing her identity.

Mines to Market | May-June’ 2014

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NEW LAUNCH

VIKAS CHAINS & JEWELLERY PRESENTS STUNNING RANGE OF FLORAL DESIGNER GOLD JEWELRY Gold Set with ruby and kundan work

Yellow Gold with Ruby and South Sea pearl set.

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pringtime designs bring soft scented breezes to mind: Donning a pretty spring-inspired jewelry makes you ready to celebrate the spring. Vikas Chain & Jewellery presents its eccentric designs that spell grace and sophistication to enhance the spring carnival.

The collection includes elaborate patternscoupled with pristine gems like ruby, emeralds and south sea pearl. These ethnic yet contemporary pieces are designed expressively and vividly by Sulish Verma. Each piece will leave you awestruck when you experience them.

Multilayed floral pendant set with Kundan work

To give traditional touch, the collection is designed in antique finish with 22 KT Hallmarked yellow gold.The stunning gold set & choker set is etched with intricate wire work .Keeping with the global trend, Sulish Verma had given multi layered yet light weighted flower pendant to these sets. n About VIKAS CHAIN & JEWELLERY Vikas Chain & Jewellery (P) Ltd. is one of the leading manufacturers and wholesalers of gold chains, & Diamond Jewelry in northern India. The Brand is serving its patrons for more than four decades. The Designer collection comprises of sophisticated designs that endorses traditional art yet glitz with perfect blend of contemporary designs. The collections comprises of stunning gold artifacts, glittering diamonds and gems, crafted superbly and embellished with precious stones of the finest quality.

Yellow Gold, Intricate etched wire design Yellow Gold, antique finish, Bangle set

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Mines to Market | May-June’ 2014

NEW LAUNCH

FOREVERMARK LAUNCHES IN TURKEY

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Zen Diamond Chairman Emil Güzelis and Forevermark CEO, Stephen Lussier.

It is an honour to be working with Forevermark, the world's leading diamond brand, as their licensee in Turkey. Zen Diamond dedicates itself to diamonds; we are the leaders in diamond jewellery manufacturing, retail and export in Turkey, so this is a fitting partnership for us.

orevermark, the diamond brand from The De Beers Group of Companies today announced its expansion into Turkey with the appointment of local licensee partner, Zen Diamond. From the beginning of this month, Forevermark diamonds will be exclusively available in 25 Zen Diamond stores in the key cities of Istanbul, Antalya, Ankara, Samsun and Mersin.

To mark the launch, Zen Diamond hosted media and VIPs at a glittering event in Istanbul. Speaking at the event, Forevermark CEO Stephen Lussier remarked, “We only work with partners of the highest calibre; Zen Diamond share our passion for beautiful, rare and responsibly sourced diamonds and are committed to building the Forevermark brand in Turkey. We are delighted to have them on board and look forward to introducing Forevermark into this exciting market with them. We expect the brand and our unique promise of quality and integrity to be very well received by the discerning consumers of Turkey.”

Forevermark continues to go from strength to strength; the launch in Turkey follows the ongoing, successful expansion of the brand across Asia, North America, the Middle East, southern Africa and most recently, Australia. More than 1,320 retail outlets across five continents now sell

Forevermark diamonds and the brand recently inscribed its 1 millionth Forevermark diamond.

Emil Güzeliº, Chairman of Zen Diamond adds, "It is an honour to be working with Forevermark, the world's leading diamond brand, as their licensee in Turkey. Zen Diamond dedicates itself to diamonds; we are the leaders in diamond jewellery manufacturing, retail and export in Turkey, so this is a fitting partnership for us. We are proud to be one of the selected jewellers exclusively providing the world's most beautiful diamonds - Forevermark diamonds - to our clients. I am sure this will be an important market for the brand.”

Forevermark diamonds will be available in a range of designs including the Cornerstones™ and Forevermark Setting™ collections as well as Zen Diamond's own unique diamond jewellery designs. n

Left to Right Zen Diamond Chairman Emil Güzeliþ, his wife Þükran Güzeli....

Forevermark diamonds on display at the Forevermark launch with licensee ....

Mines to Market | May-June’ 2014

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NEW LAUNCH

PLATINUM -

THE CHOICE OF DISCERNING MEN Enigmatic Irrfan Khan Chooses Platinum and Unveils Abaran's Season's Collection of Platinum Jewellery for Men

-Naturally white platinum is the perfect reflection of the man who knows his mettle -

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latinum –an amalgamation of style and self-confidence is the perfect choice of jewellery for the man looking for understated elegance, sophistication and classy designs.

Through the ages, the most discerning of men have preferred eternal platinum when it comes to their jewellery and the talented and versatile actor Irrfan Khan too chooses platinum for the metal's timeless values. The award winning actor spoke of his fascination for the naturally white metal and unveiled the Abaran's new season's collection in Bengaluru along with Mr. Pratap Kamath MD, Abaran.

Catering to the ever growing demand of platinum jewellery in Bengaluru, Abaran a brand synonymous with timeless jewellery launched new platinum jewellery range for men, complete with stylish bracelets, rings in classic designs to substantive and striking chains. The platinum design themes are based on the trends forecasted by WGSN, a worldwide leader in design trends. The

Platinum the noble metal is unpretentious and a guarantee of unmatched purity. Naturally white, it looks good without making too much of a noise. I like the look, the feel and the subtlety of the metal. To me it is a statement of individuality.

Also I don't have to be careful or restrict my activities while wearing a platinum ring or bracelet as its durability and unchanging quality ensures that it will last a lifetime of wear or maybe more.

design hooks - futuristic, modern and brave new shapes, structural and engineered designs, which stand the test of time have been captured basis the key aesthetic direction of 'Digital Fantasy'.

Each piece in the collection highlights the texture and glory of platinum - matt and satin combination finishes and designs like dual finish knots or box links have been crafted keeping in mind the discerning urban man.

Born in a Nawab family himself, the gifted 'Sahabzade Irrfan Ali Khan' considers platinum to be the perfect choice and expression of his style.

“Platinum the noble metal is unpretentious and a guarantee of unmatched purity. Naturally white, it looks good without making too much of a noise. I like the look, the feel and the subtlety of the metal. To me it is a statement of individuality. Also I don't have to be careful or restrict my activities while wearing a platinum ring or bracelet as its durability and unchanging quality ensures that it will last a lifetime of wear or maybe more.

Abaran has some spectacular designs in the metal that is to a connoisseur's delight.” said the “Padma Shri”, winning actor.

Addressing the media, Pratap Kamat, Director, Abaran Jewels said, “It is great to see the interest amongst men for platinum jewellery growing. Platinum as a metal is distinctive and has a refined charm that men prefer when it comes to jewellery. The collection launched today includes a wide variety of rings, chains and bracelets and we are very positive about the growth in this segment. We are honored to host Mr. Irrfan Khan and privileged to have him launch the latest

Irrfan Khan with Pratap Kamat, Director, Abaran Jewels

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Mines to Market | May-June’ 2014

NEW LAUNCH platinum men's collection at our store.

Men like him are rare and evergreen, just like the metal platinum and are trendsetters for today's generation.�

Platinum appeals to the man's sense of practicality as the metal withstand the rigors of daily wear. It does not wear away and does not fade or tarnish over time. It is a highly precious and valuable metal and therefore satisfies the price and value consideration as platinum offers the wearer exclusivity.

Platinum is a naturally occurring eternal white metal and an expression of integrity. It is about 11% more dense than gold and weighs a little more than 1330 pounds per cubic foot, which is about half a ton! That means a six inch cube of this metal weighs about as much than the average man. n

Irrfan Khan unveiling the Platinum Men's collection at Ahbaran

About Abaran Established in 1935 by B. Sadananda Kamath, Abaran is still synonymous with timeless shine in jewellery. The Abaran flagship store in Bangalore truly represents the exquisite beauty of its jewellery. Spread over 20,000 Sqft the store is the epitome of exclusive design and heartfelt customer care. The second store, in the heart of the city, is spread across 8000 sqft and possesses a fantastic ambience that is perfect for a complete family shopping experience. With dedicated floors and sections for different kinds of jewellery, it has clearly been designed for the most discerning customer. Currently managed by Pratap Kamath, Abaran has positioned itself as one of the finest jewellery houses in the Country.

Look for the Pt 950 engraving as a hallmark of purity on every platinum jewellery

Mines to Market | May-June’ 2014

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NEW LAUNCH

Because real love only begins never ends, celebrate it with eternal platinum

SURANAS JEWELOVE ENGRAVED & EMBOSSED PLATINUM LOVE BANDS

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o find real love, the everlasting kind, is a very special feeling that needs to be defined with a symbolic testament. And what better way to seal true love than with personalisedPlatinum Love Bands by SuranasJewelove. Beautiful engravings or embossing on Platinum Love Bands, a perfect expression of your love in a metal that's just as pure and eternal.

SambhavKarnawat, Partner, SuranasJewelovesays, “We have seen more and more couple these days seeking for a special expression of their love and hence we introduced an exclusive service of personalising your platinum engagement rings or wedding bands.

Whether it is a simple 'I Love You' or 'His or Her Name' or the 'Date' when you found true love, your Platinum Day of Love, capture your momentous occasion for life in the eternal metal platinum. Make it personal, because love is personal.”

For more information please visit:

A perfect expression of love carved for life in an eternal precious metal

Engraved Platinum Band by Suranas Jewelove SJ PTO 228 slide

SJ PTO 233 Embossed Platinum Rings

Engraved Platinum Love Bands :http://platinum.suranasjewelove.com/shop/platinum-weddingbands/personalised-i-love-you-platinum-wedding-bands Embossed Platinum Love Bands :http://platinum.suranasjewelove.com/shop/platinumwedding-bands/personalised-embossed-platinum-wedding-bands-sj-pto-233 Platinum Love Bands are symbolic of the deep emotions around a couple's enduring love for each other. For centuries, lovers have chosen platinum as an everlasting expression of their love. The naturally white metal never fades or tarnishes with time, just like true love lasts for an eternity.

Look for the Pt 950 engraving as a hallmark of purity on every platinum jewellery

In order to assure consumers of the purity of platinum jewellery, Platinum Guild India Pvt. Ltd. has appointed Underwriters Laboratories (UL Inc, USA) to audit and monitor its Quality Assurance Scheme. Under this scheme, all authentic platinum jewellery in India comes with a Quality Assurance Card and bears the purity hallmark of “Pt 950” stamped inside the piece. This also serves as an assurance of a 'buy back' programme.

Price: Platinum rings start from Rs. 30000 – 40000* onwards *Price subject to vary basis the current metal rate, weight and diamond content used n

About Suranas Jewelove: http://platinum.SuranasJewelove.com and www.SuranasJewelove.com is operated by SambhavKarnawat, an IIT Kanpur alumnus and partner at Suranas Jewelove. The company has a wide range of Pt 950 certified platinum jewellery ready in stock and can deliver it within 3 days throughout India.

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Mines to Market | May-June’ 2014

EDGE-UP-SOCIETY

Annual Day Programme for

Laxmi Diamond Executives & Staff

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ffice life becomes monotonous if there won't be any fun. For this reason, LDPL organizes Annual Day function which gives the opportunity to the employees and their families to come together and interact. The annual day function gives the employees and their children a platform to exhibit their talents and instil confidence.

This year too, Annual function was organized on 14th June, Saturday, at National Sports Club of India, Worli.

Hon'ble Shri Arvindbhai Sawant, M.P., South Zone was invited as a Chief Guest.

The function also marked the 60th Birthday of Shri Vasantbhai Gajera, Chairman & M.D. of Laxmi Diamond Group, which was celebrated with much vigour.

The function marked the culmination of various cultural activities in which the

employees and also children of the employees participated. The program started with lighting of the lamp by the Chief Guest and also the dignitaries. The management awarded cash prizes to all the participants through the hands of Shri Arvindji Sawant . The participants in their colourful costumes enthralled the audience with their performances. All those employees, whose service crossed fifteen years mark, were honoured with a silver plaque. Shri Arvind Sawantji gave a very enlightening speech and was very happy to see the stage performances and the involvement of management in such programmes in spite of their busy schedule.

Mr. Sawant applauded the various social activities in which the Gajera family is involved, especially Vatsalya Dham where the forgotten old souls are provided with food, accommodation and medical facilities,

Shri Arvind Sawant handing over prizes to the participants.

orphan children are given a new life and a bright future. He also commented on various schools built and sustained by Smt. Shantaben Haribhai Gajera Trust where education is at par with other international schools and many poor children get totally free education. He also appreciated the medical facilities provided to the staff and their families and also the programmes arranged by the management every year.

Post Lunch our In-house person Mr. Devraj Choudhury held the audience spellbound with his session on Organizational behaviour, which was a very gainful time for everyone. During this time, the children had fun time at painting and drawing session.

All the children present were given gifts by the management. The programme ended with a note of joy at 5:30 p.m.

Shri Vasantbhai Gajera felicitating Shri Arvind Sawant

Mohan Madhukar Bhagwat, a 58-year old veterinary doctor, is one of the youngest to head the Rashtriya Swayamsevak Sangh (RSS). He is a pioneer of RSS work in Gujarat and was the president of its Chandrapur zone.

Mohan Madhukar, the sixth Sarasanghachalak comes from three generation of RSS activists.

Shri Bhagwat has the utmost clarity of vision and thought.

He demonstrates total integrity and humility. An eloquent speaker and effective communicator, he has a very warm personality and easily endears himself even to strangers.

The RSS, it is believed, plays an important role in the BJP's decision-making and also mediates during crises.

Mr. Bhagwat attended the Samapan function of the RSS cadres at Nagpur on 12th June, where he gave a very enlightening speech. He also handed over books on work done by RSS. n Shri Mohan Bhagwat with Shri Ashok Gajera, M.D. of Laxmi Diamond Group

Mines to Market | May-June’ 2014

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PLATINUM EDGE

India's platinum jewellery demand to rise by 35%

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n India, the price gap between gold and platinum has narrowed from 100% more for the latter to 10-25% now, depending on the type of ornaments

The retail forecast for 2014 looks very promising and there seems to be an opportunity to take this further. Firstly, we have been very successful at utilising digital media and integrating marketing programmes that have positioned it well amongst the younger audience, making it emotionally significant for them.

Once the knowledge of the value of platinum deepens, the demand will increase. Platinum Day of Love couple bands is the volume driver. Men's jewellery is a nascent category and it delivered very strong figures some retailers reported doubling their sales. Also, many have shown interest in stocking heavier items in terms of jewellery and PGI is evaluating the next segment of growth for the market.

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India's platinum jewellery demand is likely to rise by 35 per cent in calendar year 2014, says the apex body in the sector, Platinum Guild International (PGI).

The reason given is rapidly changing consumer preferences, especially from the bridal segment, earlier confined to gold and diamonds.

A recent study by PGI forecasts India's demand in this regard at 40 tonnes in 2014, compared to around 30 tonnes in 2013, itself a 41 per cent growth from the previous year.

“We have been very successful at utilizing digital media and integrating marketing programmes that have positioned it well among the younger audience, making it emotionally significant for them. Once the knowledge of the value of platinum deepens, the demand will increase.

Platinum Day of Love couple bands is the volume driver. Men's jewellery is a nascent category and it delivered very strong figures – some retailers reported doubling their sales. Also, many have shown interest in stocking heavier items in terms of jewellery and PGI is evaluating the next segment of growth for the market,” said Vaishali Banerjee, its country manager here.

“Platinum has captured the market in engagement and love band segments.

Other segments in branded platinum jewellery have also recorded a significant jump in the past few years,” said Vijay Jain, chief executive, Orra.

In India, the price gap between gold and platinum has narrowed from 100 per cent more for the latter to 10-25 per cent now, depending on the type of ornaments.“With the price difference narrowing, platinum has become a preferred choice for even auspicious occasions. The metal continues, though, to see a lack of investor interest,” said Jain.

The PGI study, titled 'Retail trade barometer', found retailers bullish on 2014.“There is a very strong consumer desire for platinum jewellery in India, despite the overall market being relatively small in a global context. But it has been growing at an exponential rate. The outlook for 2014 and beyond is extremely positive. There are many factors which provide the basis for continued growth – the success of the Platinum Day of Love programme, increased distribution across India, with more retailers stocking platinum, product innovations and exciting designs, and platinum's powerful emotional connection with consumers,” said Nicholas Graham Smith, chief operating officer of PGI.

Vaishali Banerjee, Country Manager India, PGI said, "The retail forecast for 2014 looks very promising and there seems to be an opportunity to take this further. Firstly, we have been very successful at utilising digital media and integrating marketing programmes that have positioned it well amongst the younger audience, making it emotionally significant for them. Once the knowledge of the value of platinum deepens, the demand will increase. Platinum Day of Love couple bands is the volume driver.

Men's jewellery is a nascent category and it delivered very strong figures - some retailers reported doubling their sales.

Also, many have shown interest in stocking heavier items in terms of jewellery and PGI is evaluating the next segment of growth for the market."

Mines to Market | May-June’ 2014

PLATINUM EDGE

Over the years, PGI has done a remarkable job in building traction for platinum in the country. This is reflected not only in the phenomenal growth of platinum, but in it becoming an integral part of purchase, whether engagement rings (such as ORRA Platinum Couples) or even festive and auspicious occasions such as Diwali.

The platinum jewellery sales have been on an upward trend and 2013 witnessed high growth for this category. Besides the couple bands the interest amongst men for platinum jewellery is growing at a fast pace. Our focus for this year will continue to cater to this growing consumer demand with exclusive platinum designs of rings, chains and bracelets that appeal to men.

With the support of the PGI's communication program and considering the market trends and consumer behaviour, we expect the scope of this precious metal to develop further in 2014.

Mines to Market | May-June’ 2014

Vijay Jain, CEO, ORRA, said, "Over the years, PGI has done a remarkable job in building traction for platinum in the country. This is reflected not only in the phenomenal growth of platinum, but in it becoming an integral part of purchase, whether engagement rings (such as ORRA Platinum Couples) or even festive and auspicious occasions such as Diwali.

The trends work at a consumer demand level either real or potential such as Platinum Love Bands and in terms of design forecast given PGI's strong presence both in India and globally. For 2014, independent of the outcome of the new government and statutory regulations, there are certain concepts, which effectively allow us to build a strong proposition with platinum engagement bands, anniversary gifting and jewellery for men.”

G. R. Ananthapadmanabhan, MD, GRT Jewellers commented, "The platinum jewellery sales have been on an upward trend and 2013 witnessed high growth for this category. Besides the couple bands the interest amongst men for platinum jewellery is growing at a fast pace. Our focus for this year will continue to cater to this growing consumer demand with exclusive platinum designs of rings, chains and bracelets that appeal to men.

With the support of the PGI's communication program and considering the market trends and consumer behaviour, we expect the scope of this precious metal to develop further in 2014."

Gold demand down 26% in Q1, jewellery purchases shrink 9%: Gold demand in India shrank 26 per cent in the first quarter of calendar 2014 against an exceptionally good quarter in the previous year, but is expected to pick up in the second half of the year as the industry expects the new government to ease curbs on bullion imports.

The World Gold Council, a market development organization for the gold industry, said India's gold demand stood at 190.3 tonnes in the March quarter against 257.5 tonnes in the year-ago quarter. In value terms, the total demand of Rs 48,853 crore was 33 per cent lower than Rs 73,183.6 crore reported for the same quarter of calendar 2013.

WGC said the demand was in line with the usual trend seen in the first quarters of previous years. In a highly-regulated environment, investment demand declined 54 per cent.

“The exceptionally good demand in Q1 of 2013 was due to a sharp drop in prices.

The March quarter demand was more or less in line with the trend seen in the first quarters and is above the average Q1 demand of the past five years. In 2012, Q1 gold demand stood at 202 tonnes,” said P R Somasundaram, managing director of WGC, India.

Jewellery demand fell by nine per cent to 145.6 tonnes from 159.5 tonnes a year ago, while in value terms, it slumped 18 per cent.

Investment demand declined 54 per cent to 44.7 tonnes from 98 tonnes in Q1 of 2013 and was attributed to restrictions on imports.

In value terms, the drop was 59 per cent.

The quantum of recycled gold was almost stable at 21.3 tonnes.

The industry estimates gold imports by India, the world's No. 2 bullion consumer after China, to double from current level if the import restrictions are eased. This can help global prices that slumped 28 per cent last year — the first drop in 13 years — partly due to India's curbs.

“Demand has been down in the past three quarters,” said Somasundaram. Though the average international gold prices were down 21 per cent, in India prices were hovering between Rs 29,500 and Rs 30,000 per 10 gm due to the spot premiums and increased duty. The average price during Q1 of 2013 stood at Rs 28,420.

India slapped a record high duty of 10 per cent on overseas purchases of gold and imposed other import curbs in 2013 when trade deficit ballooned to an alarming level.

The gold body has projected demand to pick up in the coming quarters and estimated it to be 900 to 1,000 tonnes.

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PLATINUM EDGE “The overall economy is expected to get better and the new government is likely to relax the restrictions on gold imports. We are looking forward to the economic survey, which will indicate the fiscal deficit number, the priorities of the government and also policies towards gold trade,” Somasundaram said.

Globally, gold demand during the January-March period was marginally down to 1,074 tonnes from 1,077 tonnes a year ago. Outflows from gold ETFs slowed to just 0.2 tonne against 177 tonnes in the first quarter of 2013.

Investment demand was down two per cent while jewellery demand shrank by 3 per cent.

Central banks continued to be strong buyers, purchasing 122 tonnes during the quarter. On Tuesday, central banks in Europe agreed to continue with the central bank gold agreement (CBGA).

The fourth such agreement by the European Central Bank and other central banks in the region asserted their commitment to continue the coordination of gold transactions in order to avoid market disturbances.

“The agreement, first entered in 1999, proposed a limit to the total quantum of gold that could be sold by the central banks so that the sale does not disturb the market. The third such agreement was to expire in September and there were speculations that the banks may not enter a new agreement. The new decision is significant for the bullion market,” Somasundaram said.

Good Prospects for Export: India's gems and jewellery exporters are set to shine brighter than domestic retailers. Positive signs from export destinations such as higher disposable income and consumer spending as well as improvements in consumer confidence is set to support export volumes of gems and jewellery, maintain analysts. An economic recovery is also set to benefit exporters.

Indian exporters are likely to report moderate revenue growth of 4% to 5% year on year in FY15, according to analysts, and operating margins are expected to be in the range of 3.5% to 4%.

However, there is a downside. If gold prices increase further or if regulatory risks persist, this could impact the operating profitability of the gems and jewellery sector and thus their credit profile.

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Geopolitical pressures too could have an impact, analysts have pointed out: uncertainty in Russia and Ukraine, or any financial turbulence in the global economies including that of China could severely affect the weak credit profile of most Indian gems and jewellery exporters.

India Ratings and Research, an analyst firm, has noted a modest demand growth in key export markets for Indian jewellers in FY15. Analyst Giribala Shah said that the outlook for domestic retailers has been revised because of the likely increase in volume demand of gold jewellery in FY15.

"Gold prices are expected to decline in FY15, and improve the margins of domestic players by 1 to 2 percentage points to the FY13 levels of 9%. The margins were impacted in 2013 due to a rise in domestic gold prices in the face of muted consumer demand, and the players had to offer discounts to attract customers,'' the analyst said.

Revenue in FY14 was driven by gold prices and not volumes. Further support to revenue is expected to come from new store additions by existing players in tier II and tier III towns. "Domestic retailers are set to witness 3% to 8% year on year revenue growth for FY14 and FY15,'' the analyst added.

Mahaveer Jain, another analyst with the research firm, added: "The working capital days of jewellery retailers have consistently increased since FY09. A possible uptick in sales volume could reduce inventory levels. However, some industry players have been impacted by restrictions on leasing gold, which has caused them to purchase gold outright for manufacturing.''

The analyst added that given the typical inventory management practice, jewellers replenish gold almost daily to the extent used. Thus, a gradual fall in gold prices is unlikely to affect inventory value significantly. However, any sharp correction in gold prices could result in

Globally, gold demand during the January-March period was marginally down to 1,074 tonnes from 1,077 tonnes a year ago.

Outflows from gold ETFs slowed to just 0.2 tonne against 177 tonnes in the first quarter of 2013. Investment demand was down two per cent while jewellery demand shrank by 3 per cent. some inventory write-offs, which would adversely impact profit margins by around 1% to 2% from an accounting perspective. The analysts have said that the improvements in the discretionary purchasing power of consumers in export destinations is set to impact exporters positively.

In FY15, the agency expected demand growth from the US and Hong Kong to be better than that in the UAE, with the current higher base. Fitch Ratings has also estimated real GDP growth rates of the US, the UK, the UAE and Hong Kong for 2014 to be higher than that in 2013.

Domestic show: Domestic demand is also likely to bounce back in FY15. The key driver being higher volume uptake due to the expected fall in gold prices in FY15.

India Ratings has noted that gold prices in the global market are set to decline in FY15, in view of the gradual winding up of unconventional monetary policy in the US. While Fitch Ratings expects a further recovery in the US and eurozone GDP growth rates in FY15, it is likely to strengthen the US dollar against other currencies.

Given the expected fall in global gold prices along with the easing of regulations in the domestic market, traders have noted that inventory write offs could impact operating profitability, though companies which largely undertake gold leasing are likely to have a minimal impact. n Mines to Market | May-June’ 2014

TRADE NEWS

Decade On, Gems-Jewellery Park at Surat has No Takers might happen with the proposed diamond bourse project in Surat," said an office-bearer of Gems and Jewellery Export Promotion Council (GJEPC) on condition of anonymity.

However, the GHB office-bearers are committed to develop the jewellery park in the next couple of years.

The members at jewellery park in Ichhapore had purchased land at Rs 3,500 per square metre in 2004. Now the land price has shot up to Rs 7,500 to Rs 8,000 per square metre and only seven units are likely to come up. We fear same might happen with the proposed diamond bourse project in Surat," said an office-bearer of Gems and Jewellery Export Promotion Council (GJEPC) on condition of anonymity

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t was in 2004, the Gujarat Hira Bourse (GHB) and leading diamantaires in Surat had urged the state government to allot government land in Ichhapore for developing gems and jewellery park. The then chief minister NarendraModi had acted promptly in favour of the diamantaires and allotted one million square metres of land in Ichhapore.

But even after a decade, the gems and jewellery park is yet to become operational.

Mines to Market | May-June’ 2014

Praveen Nanavaty, joint secretary, GHB told TOI, "About 70 per cent of the gems and jewellery park was reserved as an SEZ. Had the then UPA government not withdrawn the tax incentives and other benefits in the SEZ, the park would have been operational three years ago. Now, we are waiting for the park to be denotified, so that the space could be made available for non-export oriented units as well."

About 350 big and small diamond companies into jewellery manufacturing and diamond polishing - from Mumbai and Surat - had bought plots at rates prevailing at that time to set up manufacturing units in the special economic zone (SEZ). Announced in 2004, the park was expected to become operational in three to four years.

However, it ran into one delay after another. The GHB has so far spent close to Rs 200 crore on the project. The basic infrastructure at the park is now in place, and seven units are currently under construction.

Two years ago, the GHB had applied for de-notification of SEZ status of the park after the Central government withdrew the tax benefits and other incentives.

"The members at jewellery park in Ichhapore had purchased land at Rs 3,500 per square metre in 2004. Now the land price has shot up to Rs 7,500 to Rs 8,000 per square metre and only seven units are likely to come up. We fear same

Asked if the jewellery park land could be utilized for developing diamond bourse instead of demanding more land from the government, Nanavaty said, "The park is reserved for setting up only jewellery manufacturing units. The diamond bourse being planned in the city is exclusively for the trading of rough and polished diamonds by the traders.

However, we can't mix two things together at a same place."

After a decade, the diamantaires have once again knocked the doors of the state government demanding land. This time, the diamantaires want to develop a world-class diamond bourse, parallel to Bharat Diamond Bourse (BDB) in Mumbai. Last week, chief minister Anandiben Patel accepted the proposal of allotting over 2 lakh square metres of government land, which is close to the airport, during her maiden visit to the Diamond City after assuming the top post.

Nevertheless, questions are being raised as to whether the diamantaires would utilize the government land for the very purpose of developing world-class diamond bourse or the members of the trade would lose interest in the long run, as they did with the gems and jewellery park in Ichhapore. n 39

TRADE NEWS

JNA Announces Award Honorees for 2014

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ewellery News Asia (JNA), the organizers of the prestigious JNA Awards, announced the much anticipated list of honorees for 14 categories in its third edition. A total of 29 companies from 10 countries/regions have been shortlisted. The event is supported by headline partners Rio Tinto Diamonds and Chow Tai Fook, together with honored partners Diarough Group, Gübelin Group, Israel Diamond Institute, KARP Group, Paspaley Pearling Company and Shanghai Diamond Exchange.

The judging panel consists of five industry experts, namely Nirupa Bhatt, the managing director of the Gemological Institute of America in India and the Middle East; Bill Boyajian, the founder of Bill Boyajian & Associates Inc.; Albert Cheng, the managing director of the World Gold Council – Far East; James Courage, the CEO of Platinum Guild International (PGI) and Lin Qiang, the president of the Shanghai Diamond Exchange.

Now in its third year, the JNA Awards event has grown in size and stature with 91 highly-qualified entries from 20 countries and regions. Countries represented for the first time included Belgium, Indonesia, Italy, Malaysia, the Netherlands and Vietnam. Nominations were also fielded from Australia, China, Hong Kong, India, Israel, Japan, the Philippines, Russia, Sri Lanka, Taiwan, Thailand, U.K., U.S. and the United Arab Emirates. A new category, Outstanding Enterprise of the Year – ASEAN, has been introduced this year to reflect the growing

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2014

Leaders and innovators are critical to the success of the global gems and jewelry industry and the JNA Awards is a platform to highlight them.

We are delighted with the variety of entries received each year and we make sure that the judging process is meticulous and detail oriented. I wish all the honorees the best. importance of this region in the jewelry and gemstone industry.

Letitia Chow, the chair of the JNA Awards 2014 judging panel, who is the founder of JNA and director of business development for the jewelry group of UBM Asia, said, “The number of highquality entries this year is indeed impressive. It is evident that the JNA Awards has reached a new height in its aim to drive the industry forward by raising the standards and promoting excellence and best practices within the trade. Now in our third year, and with enthusiastic supports bestowed by the industry, we are further encouraged and feel strongly that the JNA Awards has

served and will continue to serve its purposes.

“It is particularly gratifying this year to see an increasing number of outstanding entries in the categories for innovation.

The continual dedication and unrelenting efforts of these companies in search for excellence and high standards led to innovative solutions to meet the needs and challenges envisaged by our industry.

I would like to thank all entrants and congratulate all honorees,” she said.

Cheng, who has been on the judging panel from the beginning, said, “I am impressed with the quality of the participants this year. Entries covered most of the Asian countries, particularly China and India. I am also happy to see an increase in the participation from Southeast Asia. The objective of the JNA Awards is to recognize successful enterprises and entrepreneurs, encourage healthy competition and stimulate growth in the jewelry industry. I have seen these happening from my involvement in judging in the last three years.”

Courage said, “Being a judge of this prestigious awards has given me a privileged insight into the dynamic developments underway across the jewelry industry in Asia. Challenges are being met with innovation at various levels in the technical and marketing aspects. I am pleased to see that we have a large vibrant group of young entrepreneurs driving the industry forward.”

Bhatt added, “Leaders and innovators are critical to the success of the global gems and jewelry industry and the JNA Awards is a platform to highlight them. We are delighted with the variety of entries received each year and we make sure that the judging process is meticulous and detail oriented. I wish all the honorees the best.” n Mines to Market | May-June’ 2014

TRADE NEWS The following individuals and companies have been shortlisted as honorees for the JNA Awards 2014: Brand of the Year – Retail Tai FookJewellery Group Ltd. n JewelmerJoaillerie n Paspaley n Chow

n Shenzhen GanluJewellery Co. Ltd. n Shenzhen

Xingguangda Jewelry Industrial Co. Ltd.

Retailer of the Year n Chow Tai FookJewellery Group Ltd.

Employer of the Year

n Primo Japan Inc.

n Hari Krishna Exports Pvt. Ltd.

n Tomei Consolidated Berhad

n Kiran Gems Pvt. Ltd. n LukFook Holdings (International) Ltd. n Pandora Production Co. Ltd.

Industry Innovation of the Year – Manufacturing – Business n Frank Wu Design n WCJ (Holdings) Co. Ltd. Industry Innovation of the Year – Manufacturing – Technology n China Stone Co. Ltd. n Diamond Services Ltd. n Fukui Shell Nucleus Factory n Shenzhen United BlueOcean Technology Development Co. Ltd. Manufacturer of the Year – Diamond Cutting and Polishing n Hari Krishna Exports Pvt. Ltd. n Kiran Gems Pvt. Ltd. n Shree Ramkrishna Exports Pvt. Ltd. Manufacturer of the Year – Gemset Jewelry n KGK Jewellery Mfg. Ltd. n Shenzhen Xingguangda Jewelry Industrial Co. Ltd. Manufacturer of the Year – Precious Metal Only Jewelry n Shenzhen BofookJewellery Co. Ltd. n Shenzhen GanluJewellery Co. Ltd. Outstanding Enterprise of the Year – ASEAN Countries n China Stone Co. Ltd. n JewelmerJoaillerie n Pranda SCL Indonesia n Tomei Consolidated Berhad Outstanding Enterprise of the Year – India n Hari Krishna Exports Pvt. Ltd. n J. B. And Brothers Pvt. Ltd. n Kiran Gems Pvt. Ltd. Outstanding Enterprise of the Year –Mainland China n KGK Diamonds (Shanghai) Ltd.

Mines to Market | May-June’ 2014

E-tailer of the Year n Chow Tai FookJewellery Group Ltd. n Leibish& Co. n Plukka n Shanghai Wisdom Jewelry Trading Co. Ltd. Sustainability Initiative of the Year n Dharmanandan Diamonds Pvt. Ltd. n Shenzhen

Xingguangda Jewelry Industrial Co. Ltd. n Shree Ramkrishna Exports Pvt. Ltd. n WCJ (Holdings) Co. Ltd. Young Entrepreneur of the Year (age 40 and under) n Shreyansh Kapoor of KashiJewellers n Payal Shah of L'DezenJewellery Co. Ltd. n Sit Kwan of Shenzhen BofookJewellery Co. Ltd. n Huanjian Zheng of Shenzhen GanluJewellery Co. Ltd.

The Recipients of the Lifetime Ach i ev emen t Awar d an d t h e Outstanding Contribution of the Year Award will be nominated by the organizer and the announcement will be made at a later date.

This year's JNA Awards ceremony and gala dinner will be held on September 16 at the InterContinental Hong Kong, during the September Hong Kong Jewellery& Gem Fair. It is an industry-wide event that honors and recognizes excellence and achievement in the global jewelry trade with a focus on contributions and achievements made in the Asian region. It is a ticketed event by application only. Interested parties can submit their request by logging on to www.JNAawards.com n

Cont. from Page # 11

Fresh Wave of Diamond Looting in Zimbabwe “The military—and I am not talking of ordinary soldiers here—are also involved.

Again, there is collusion with foreign traders who are sold gem-quality s broken and low value minerals,” said the official. diamonds but end up declaring at auctions broken and low value minerals,” said the official.

He said government had abdicated its oversight role ahead of the reduction of diamond mining players in the Marange fields. Anjin's Harare International Airport sorting plant is not monitored, creating space for theft.

“We were recently alerted to a new trend whereby some of the mining companies and individuals are smuggling diamonds out of the country by stuffing them into pieces of sculpture to avoid detection,” he said.

Employees, particularly those involved in sorting, are colluding with company security at most of the mining companies to smuggle out mostly gem-quality diamonds that are then sold both locally and outside the country Freeman Bhoso, the Executive Director of Zimbabwe Natural Resources Dialogue Forum, urged government to immediately stop all the diamond firms from operating in order to pave way for the transition to a new extraction order whereby it would partner only one company. “Government must arrange a mining ownership transition that includes an immediate cessation of all mining operations to allow for an independent and comprehensive audit of all mining companies and make public the findings,” said Bhoso.

He said government must also engage credible experts to undertake a mineral survey of the diamonds at Marange to ascertain the quality and quantity of the remaining deposits. “The survey is critical as a negotiating instrument for future engagement with local and foreign partners,” said Bhoso.

Several attempts to get a comment from Chidhakwa were fruitless. n 41

TRADE NEWS

Sellers are Responsible for Diamond Authentication

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he annual Rapaport Certification Conference that took place at the JCK Las Vegas show highlighted that jewelers are responsible for the authenticity of the diamonds they're selling.

“Jewelers have the first line of responsibility for the product they sell,” explained Cecelia Gardner, the president and CEO of the Jeweler's Vigilance Committee (JVC). “Everyone in the pipeline has a responsibility to the purchaser for their product, and they cannot pass along that responsibility just because they're relying on a third party [grading report] presentation.”

Saville Stern, the chief operating officer of RapNet, Rapaport's diamond trading network, who moderated the discussion, posed the question regarding who is responsible when a consumer claims that the diamond they bought was not disclosed as a synthetic stone.

Gardner stressed that according to the U.S. Federal Trade Commission (FTC), when a product is described as a diamond, it is assumed to be a natural diamond.

Additional language is required to describe the stone as man-made, with acceptable terms including lab-grown, lab-created, lab-manufactured or synthetic diamond.

She reported that the majority of complaints that the JVC receives in this category are, in fact, not sellers passing off man-made diamonds as natural, but people selling glass or cubic zirconium as a lab-grown diamond, in an attempt to raise the price of the sale.

Still, Gardner stressed that a person who sells a synthetic diamond without disclosing that it's man-made has engaged in a deceptive trade practice regardless of the size of the diamond. She added that the same applies to not disclosing if a diamond has been treated for color enhancements. James Shigley, a research fellow at the Gemological Institute of America (GIA), asserted that all synthetic diamonds can be detected but he noted that treatments to improve the color of a diamond present a greater challenge because they exist in greater frequency.

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Regardless, panelists stressed that it is the duty of the seller to know their product, particularly jewelers. “Saying 'I don't know' is not sufficient,” Gardner said.

“Given today's reality, jewelry retailers have to exert a quality control program to protect them from engaging in a deceptive trade practice. The same applies to everyone else in the trade too.”

Everyone in the pipeline has a responsibility to the purchaser for their product, and they cannot pass along that responsibility just because they're relying on a third party [grading report] presentation

Sabyasachi Ray of India's Gem &Jewellery Export Promotion Council (GJEPC) asserted that the industry may be overreacting to the synthetics issue since they represent a very small portion of the market. Even though panelists acknowledged the small size of the market, most agreed that it's not an issue the industry can ignore.

A diamond appraiser in the audience noted that consumers are generally not concerned about synthetics when having their diamond appraised. Rather, she explained that they're concerned with having the most accurate grading of the diamond. “Consumers want to make sure that the grading report matches the diamond they have,” she added.

Stern extended the question to clarify who is responsible if you falsely sell a diamond as a higher color or clarity grade.

Gardner explained that the law acknowledges that subjectivity is built into the process of grading a diamond since assessing color and clarity requires a human element. Therefore, a one grade variance is generally allowed before an argument is posed about the discrepancy being purposeful. “If you have a three-tofive grade variance, I would say there is a real case of intent,” she said.

GIA Strengthens Dominance on RapNet As the value of diamonds available on RapNet continues to rise, the GIA has increased its dominance on the trading platform, according to Stern.

He reported that of the over 1 million diamonds listed daily on RapNet in May 2014, 69 percent had GIA grading reports, while 8 percent had International Gemological Institute (IGI) reports, 7 percent were uncertified and the remainder was from other labs including EGL Israel, EGL USA and HRD Antwerp.

He added that while the number of diamonds graded by IGI and HRD Antwerp has increased in the past three years, the GIA was the only lab to

increase its share of the RapNet market.

Regarding the diverse prices that the various labs are achieving, Stern assessed the average asking price of diamonds in the D to M, IF to SI3, and VG-plus category listed on RapNet. Within the 1-carat size category, the data showed that diamonds graded by AGS were priced at a 7 percent average premium to GIA, while goods graded by HRD Antwerp were priced at a 9 percent discount. Diamonds graded by IGI were listed at a 13 percent discount to the GIA price for the equivalent stone. Uncertified goods in the same category were priced at a 20 percent discount to the GIA, while diamonds graded by EGL USA were priced at an average discount of 30 percent, EGL Israel at a 34 percent discount and EGL Hong Kong at a 42 percent discount to the GIA graded stone. n

Mines to Market | May-June’ 2014

TRADE NEWS

Kiran Gems gets the first IIDGR's Automated Melle Screening Machine commissioned

Mr Dinesh Lakhani- Kiran Gems Pvt Ltd- Director

It is one more step towards bolstering customer confidence. This would now allow having even higher control on distribution flow of goods and keep the integrity of diamonds. Kiran Gems is the fore runner in technology adoption and would remain so as it goes long way in adding value to the relationships with customers.

Mines to Market | May-June’ 2014

K

iran Gems, the world's largest manufacturer of diamonds, gets the first IIDGR's AutomatedMelle Screening (AMS) Machine commissioned in its Headquarters in BDB, Mumbai. AMS is the currently most advanced machine with latest technology in CVD screening. Mr Dinesh Lakhani- Director Global Sales said- “It is one more step towards bolstering customer confidence. This would now allow having even higher control on distribution flow of goods and keep the integrity of diamonds. Kiran Gems is the fore runner in technology adoption and would remain so as it goes long way in adding value to the relationships with customers.”

The machine allowsscreening500 carats of colorless and near colorless diamonds ranging from 1 pointer to 20 pointers in

various pre-selected size categories per screening event. The machine is hassle free to use and due to its automated technology, it does not require any person to sit through the whole process of screening. AMS would allow Kiran Gems to handle CVD screening of goods in volume, that return to the premises after being out for business, which is a normal and daily practice.

Prior to AMS Kiran Gems used IIDGRS's Diamond Sure machine for the same. Kiran Gems had been the first to have Diamond Sure machine as well.

At present Kiran Gems has 3 Diamond Sure machines which are all installed in its head quarter in Mumbai. n

About Kiran Gems: Kiran Gems is India's premier diamantaire with international reach and reputation. It is “The world's largest manufacturer of diamonds”. Kiran's breadth of product offering and its focus on quality has made it one of the most preferred diamond supplier to the biggest and most well-known brands and/or companies of jewellery and watches.The company has 160 specialised production units, in Surat and Ahmedabad, which processes over 5.8 million carats of rough to produce over 1.6 million carats of polished diamonds. A workforce of over 35,000 trained individuals makes the group the largest employment creator in the Indian diamond industry. Kiran owns over 1 million sqft of factory space to manufacture polished diamonds. More information about Kiran Gems is available on www.kirangems.com.

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TRADE NEWS

36th World Diamond Congress concludes in Antwerp, Belgium Discussions of sister organizations headlined by concerns about industry financing, transparency and compliance issues, synthetic diamonds, laboratory services, industry communications

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he 36th World Diamond Congress concluded in Antwerp, Belgium, and reflected strength in the attendance and the presence of international diamond, gemstone and jewellery industry organization delegates. These included the representatives of 30 bourses affiliated to the World Federation of Diamond Bourses (WFDB), 15 members of the International Diamond Manufacturers Association (IDMA), the two bodies that organize the biennial world diamond congresses. They were joined by CIBJO, the World Jewellery Confederation and the World Diamond Council.

WFDB President Ernest Blom said that he was very pleased with the strong attendance of the WFDB affiliate bourses and with the topics that were raised and covered. "At the heart of our discussions were the sustainability and reputation of the diamond industry and trade at large.

Among others, the WFDB resolved to build on its communications strategy and to expedite communications on a global level.

IDMA president Maxim Shkadov said the IDMA members and the WFDB had held long and intense discussions on the diamond supply chain. "We talked at length about issues such as

44

financing and the manufacturers' relationships with the banks and other financial institutions active in the diamond industry and trade. In addition, we expressed our concern regarding the significant diversities of laboratory diamond grading standards and their impact on consumer confidence in diamonds; spoke about the DDI and the necessity of promoting advances in social and economic conditions throughout the diamond mining sector worldwide; and reviewed the FATF report about money laundering," Shkadov noted.

"And these are just a few out of the many other topics raised," he said.

the IDMA members and the WFDB had held long and intense discussions on the diamond supply chain. "We talked at length about issues such as financing and the manufacturers' relationships with the banks and other financial institutions active in the diamond industry and trade.

The WFDB and IDMA resolved that the 2015 Presidents' Meeting will take place in Ramat Gan, Israel and the 37th World Diamond Congress in Dubai, the United Arab Emirates. n

Mines to Market | May-June’ 2014

TRADE NEWS

Presidents of CIBJO, WFDB, IDMA and WDC establish 'The Presidents Forum' to coordinate strategies on issues of common interest

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As the elected presidents of international organisations, each of which counts among its members the key national organisations and leading commercial bodies in their respective fields, we collectively represent the rank and file of the diamond, gemstone and jewellery industry worldwide.

eeting this morning in Antwerp, the heads of the jewellery and diamond industry's four leading international representative bodies have agreed to establish “The Presidents Forum,” which is a joint consultative committee with its members being the presidents of each organisation. Together they will discuss and formulate coordinated strategies and policies for the industry on important issues of common interest.

Hosted by Dr Gaetano Cavalieri, President of CIBJO, the World Jewellery Confederation; this morning's meeting included Ernest Blom, President of the World Federation of Diamond Bourses (WFDB); Maxim Shkadov, President of the International Diamond Manufacturers Association (IDMA); and Edward Asscher, President of the World Diamond Council (WDC). The meeting was chaired by Eli Izhakoff, Hon. Life President of CIBJO, WFDB and WDC.

Following the meeting, The Presidents Forum issued the following statement: “As the elected presidents of international organisations, each of which counts among its members the key national organisations and leading commercial bodies in their respective fields, we collectively represent the rank and file of the diamond, gemstone and jewellery industry worldwide.”

“The objective of The Presidents Forum is to reflect the interests of all participants and stakeholders in the industry through discussion and coordination.”

“Among our first order of business the presidents of CIBJO, WFDB and IDMA will engage with the Precious Stones Multi- Stakeholder Working Group to discuss the creation of acceptable due diligence guidelines to defend the integrity of the supply chain. The President of the WDC will be consulted.”

The Presidents Forum's inaugural meeting was held against the backdrop of the 36th World Diamond Congress, which is currently taking place in Antwerp. n

Among our first order of business the presidents of CIBJO, WFDB and IDMA will engage with the Precious Stones MultiStakeholder Working Group to discuss the creation of acceptable due diligence guidelines to defend the integrity of the supply chain. The President of the WDC will be consulted.

Mines to Market | May-June’ 2014

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TRADE NEWS

Accredited Jewelry Professional Diploma Programme Debuts in Nepal GIA hosts graduation ceremony, June 27; plans to expand education offerings for qualified talent and expertise. We look forward to collaborating with GIA on education programmes in the future,” said Ramesh Maharjan, president of FNGSGJA.

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About GIA An independent organization, GIA (Gemological Institute of America) is recognized as the world's foremost authority in gemmology. Established in 1931, GIA has translated its expert knowledge into the most respected gemmological education available.

Early in the 1950s, GIA invented the famous 4Cs of Colour, Cut, Clarity and Carat Weight. In 1953, the Institute created the International Diamond Grading System™ which, today, is recognized by virtually every professional jeweller in the world.

Through research, education, gemmological laboratory services, and instrument development, the Institute is dedicated to ensuring the public trust in gems and jewellery by upholding the highest standards of integrity, academics, science, and professionalism. GIA can be found on the web at www.gia.edu.

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IA (Gemological Institute of America), in collaboration with the Federation of Nepal Gold Silver Gem & Jewellery Associations (FNGSGJA), hosted the graduation ceremony for the Institute's inaugural Accredited Jewelry Professional (AJP) diploma on June 27 in Kathmandu, Nepal.The event was followed by a special seminar on diamonds, in the presence of distinguished committee members of FNGSGJA and other local associations. The event was graced by one of Nepal's foremost cultural experts and Chancellor of Nepal Bhasa Academy - Dr. Satya Mohan Joshi. A renowned scholar, Dr.Joshi has also established the Arniko Gallery in Kirtipur and started an FM radio station which runs its shows in Nepal Bhasa.

The guestspresented students with diplomas and shared their experiences in the industry with students;Manoj Singhania, director of Education for GIA in India and the Middle East, was also in attendance. “GIA is the world leader in gem and jewellery education and we are grateful that these courses are now available in Nepal. Our local industry is growing, signifying aneed

The AJP diploma programme underscores proven sales techniques that enable jewellers to communicate product quality and value confidently to their customers. Participants learn about GIA's International Diamond Grading System™ and various jewellery types and styles. “After completing my AJP diploma, I feel more confident handling customer queries, and am more informed when making purchases and sales,” added one GIA graduate of his experience.

“GIA's mission is to support the global gem and jewellery industry through relevant, hands-on education. The gem and jewellery industry in Nepal is still growing, but we believequalified professionals can take it to the next level,” says Nirupa Bhatt, managing director of GIA in India and the Middle East.

“We'rethankful for the support of local associations and look forward to bringing additional courses in gemmology, retail sales and design to the region.”

By delivering GIA courses in Kathmandu,professionals and aspiring professionals across Nepal have easier access to world-class education in gems and jewellery. The Institute aims to bring courses such as its five-day SWIFT Jewellery Design, practical Diamond Grading Lab Class and morein the future.

GIA, the global leader in gem and jewellery education, also offers full-and part-time courses on diamonds, coloured stones, pearls, merchandising, jewellery design, retail and more. The Institute conducts regular corporate seminars on jewellery-related topics across 60 cities in India and Middle East. For more details about GIA, visit www.giaindia.in, email eduindia@gia.edu, or call 08108186683 or 1800 102 1566. n Mines to Market | May-June’ 2014

TRADE NEWS

Precious Coloured Stone Collection from Shree Raj Mahal World Federation of Diamond Bourses

T

he fast expanding number of trade shows and exhibitions held across the world has often been scheduled in such a way that it is problematical for individuals from various religious groups to participate due to the events taking place on religious days.

After being approached by the World Federation of Diamond Bourses (WFDB) some of the international trade fair organisers have taken these religious dates into consideration when scheduling these events and on behalf of our members we want to extend our thanks to these organisations.

The Federation would like to call on all industry trade shows to please be sensitive to dates that might fall on religious days as this would exclude some individuals from participating in these events.

During the recent 36th World Diamond Congress plans were put in place for the participation of members under the brand of the WFDB at the Bangkok jewellery show. Arrangements are also being finalised with shows such JCK Las Vegas to enable members of the Federation to attend without having to rely on invitations from retailers or manufacturers as they are key players in the supply chain. The WFDB trusts that similar arrangements will be made with all major shows across the world. n

FOR style comes in many shades and colours

Heart Shape Natural Tanzanite

The collection includes necklaces, rings and earrings in sophisticated designs. These pieces are tastefully crafted with precious stones, such as emerald and topaz that are set in yelow gold and white gold. This radiant collection of coloured stones beautifully compliments both Indian and western attire and is well suited for a range of different occasions.

Introducing the Precious Coloured Stone collection from Shree Raj Mahal Jewellers – a collection that celebrates the splendour of diamond jewellery in a kaleidoscope of colours and designs!

The collection includes necklaces, rings and earrings in sophisticated designs. These pieces are tastefully crafted with precious stones, such as emerald and topaz that are set in yelow gold and white gold. This radiant collection of coloured stones beautifully compliments both Indian and western attire and is well suited for a range of different occasions.

While diamonds may be a girl’s best friend, bold and expressive, the Precious Coloured Stone collection is for the woman of style and substance.

Shree Raj Mahal Jewellers have created the Precious Colored Stone collection as with their rendition of modern art set in the backdrop of rich of Indian tradition. n Brownish Orange Carnelian Chalcedony

The Federation would like to call on all industry trade shows to please be sensitive to dates that might fall on religious days as this would exclude some individuals from participating in these events.

Heart Shape Natural Tanzanite

Mines to Market | May-June’ 2014

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TRADE NEWS

SHORT NEWS

IE Singapore had the privilege of working with key players like the World Gold Council, SBMA, the major bullion banks and SGX to enable this outcome. This Contract will provide the industry with a more efficient and transparent market, and enhance Singapore's infrastructure for precious metals trading.”

Singapore Kilobar Gold first in the world to trade on exchange platform

A

t the annual London Bullion Market Association (LBMA) Bullion Market Forum held for the first time in Singapore today, Mr Lim Hng Kiang, Minister for Trade and Industry, announced a new exchangetraded Singapore Kilobar Gold Contract[1] (“Contract”). This is the first wholesale 25 kilobar gold contract to be offered globally.

Expected to go 'live' as early as September 2014, the Contract will introduce centralised trading and clearing of a physically-delivered gold contract in Singapore. With this Contract, global suppliers of gold are able to connect more effectively with their Asian clientele. The Contract comprises a series of six daily contracts, which will give physical users access to competitively-priced kilobars.

The Contract is the result of a successful collaboration between International Enterprise (IE) Singapore, Singapore Bullion Market Association (SBMA), Singapore Exchange (SGX) and the World Gold Council. Representing the SBMA in this collaboration are four bullion banks, namely J.P. Morgan, Standard Chartered Bank, Standard Merchant Bank (Asia) Limited and The Bank of Nova Scotia. (Please see Annex for factsheet with details of the Contract).

Commenting on the significance of the announcement, Minister Lim said, “With our close proximity to both demand and supply in Asia, I believe that Singapore is well-placed to support the bullion industry, with substantive mutual benefits. Our vision is that Asia can be a driving force to continue the growth of the bullion industry, and be a global leader in areas fundamental to the demand and trade in this region.”

Asia's strong demand for physical gold is the key driver for the implementation of the Contract. The World Gold Council 48

reports that, while global consumer demand for gold has increased nearly 50% over the last decade or so, demand for gold in South East Asia has increased by over 250% during the same period.

The Contract is another significant development for Singapore following its exemption of Goods and Services Tax (GST) on investment precious metals (IPM) in October 2012. Metalor Technologies Singapore Pte Ltd (Metalor Technologies) is also officially opening its world class bullion manufacturing and refining facility in Singapore tomorrow, 26 June 2014. These initiatives are key building blocks in the country's drive to become a regional precious metals trading hub.

Albert Cheng, Far East Managing Director at the World Gold Council said, “The global gold market continues to shift from west to east and Singapore's ambitions to become a gold hub reflect this trend. Since its inception, the World Gold Council has worked with key market participants to drive the development of this market. We believe this innovation will contribute substantially to the creation of a more efficient market capable of satisfying growing local demand for gold in a transparent and trusted manner - it will provide the foundation for further development of the gold market throughout South East Asia.”

Gina Lim, Trade Services and Policy Group Director, IE Singapore, said, “It has been a most rewarding journey with the gold industry, from when IE Singapore first engaged with them in 2011. Starting with the exemption of GST on investment precious metals and attracting Metalor to set up its refinery in Singapore, this unique wholesale kilobar gold contract is another milestone achieved in collaboration with the industry.

With our close proximity to both demand and supply in Asia, I believe that Singapore is wellplaced to support the bullion industry, with substantive mutual benefits. Our vision is that Asia can be a driving force to continue the growth of the bullion industry, and be a global leader in areas fundamental to the demand and trade in this region.

Ng Cheng Thye, President, SBMA, added, “This Contract will help to develop the gold market in South East Asia by creating greater liquidity and opportunities for growth. With a stock and flow of bars guaranteed by the major bullion banks, as well as an exchange open to the key buy-side participants, we believe this will encourage further products to be developed in South East Asia, which are based on this kilobar contract model.”

Muthukrishnan Ramaswami, President, SGX shared, “SGX is pleased to support the consortium's efforts to develop Singapore as a global trading hub for gold. SGX's market place will enable the trading and clearing of the Singapore Kilobar Gold Contract and establish a fully transparent price discovery mechanism for gold in this region. The new contract illustrates SGX's ongoing commitment in fostering greater market transparency in a well-governed and regulated framework within the Asian time-zone. ” Since the exemption of GST on IPM in October 2012, trade in gold has risen by 94% year-on-year between 2012 and 2013 from S$18 billion to S$35 billion. n Mines to Market | May-June’ 2014

TRADE NEWS

FOREVERMARK and Shree Raj Mahal Jewellers co-host A Design Masterclass with renowned Designer Tarun Tahiliani A modern day bride wants to make informed choices, be it her jewellery or her outfit.

Since both play an essential part, it seemed only natural for us to offer an exquisite experience to our customers that could address important bridal concerns. It was an absolute pleasure to partner with Forevermark and host such an enriching evening through this Design Masterclass.

Forevermark And Shree Raj Mahal Jewellers Co-host A Design Masterclass with Tarun Tahiliani

Forevermark And Shree Raj Mahal Jewellers Co-host A Design Masterclass With Tarun Tahiliani

orevermark, the diamond brand from the De Beers group of companies and world's most carefully selected diamonds, collaborated with Tarun Tahiliani to host a fabulous evening of style at Shree Raj Mahal Jewellers store in Delhi.

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various blends of jewellery and outfits on the muses. Right on the onset of the bridal season, the Design Masterclass was a huge success as customers interacted at length with distinguished personalities from the fashion and jewellery space.

The 'Design Masterclass' was hosted for a select group of women, considered as Shree Raj Mahal Jewellers most revered customers. On display was some of the finest jewellery crafted with Forevermark diamonds, which truly captured the imagination of the guests.

Tarun who is known for his unique sense of style and design, engaged the guests by sharing invaluable style advice on putting together the right kind o f e n s e m b l e a n d j e w e l l e r y.

Assimilating exquisite jewellery fashioned with Forevermark diamonds at Shree Raj Mahal Jewellers, guests were presented ideas on how the right jewellery can enhance the final look. He also discussed the season's latest bridal trends and emphasised on selecting the right trousseau that complimented elements like one's face cut, colour and personality type.

Speaking on the occasion, Sachin Jain, President, Forevermark said, “The Design Masterclass is Forevermark's attempt to showcase a unique amalgamation of bridal fashion and jewellery. We at Forevermark always strive to offer our customers a one of a kind experience. We are pleased we have partners like Shri Raj Jewellers and Tarun Tahiliani believing and supporting our vision.”

Invited guests were provided with a range of examples and showcased Mines to Market | May-June’ 2014

“A modern day bride wants to make informed choices, be it her jewellery or her outfit. Since both play an essential part, it seemed only natural for us to offer an exquisite experience to our customers that could address important bridal concerns. It was an absolute pleasure to partner with Forevermark and host such an enriching evening through this Design Masterclass.” said Mr Praveen Goel of Shree Raj Jewellers. n

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TRADE NEWS

Jacob Korn Elected New President of Israel Diamond Manufacturers Association Jacob Korn is a secondgeneration diamantaire. He is the owner and managing director of Korn Diamonds Ltd., which he established in 1984. The company is internationally renowned as a manufacturer of special cuts and precisely calibrated diamonds for the watch and jewelry industries.

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amat Gan, Israel, July 7, 2014: The Israel Diamond Manufacturers Association (IsDMA) has elected Jacob (Kobi) Korn as its new president.

Korn succeeds Avraham (Bumi) Traub who served in this position since November 2011.

Korn has been active in public life within the Israeli Diamond Industry since 1979 in various capacities, after joining the Israel Diamond Exchange (IDE) in 1973. In 1995 he was first elected as a member of the IDE Presidium, and then again in 1997, 1998 and 2001, during which time he served as Honorary Secretary. In 2005 and again in 2009 Korn was re-elected to the Presidium, after sitting out one term as required, this time as Vice-President and Deputy. In 2013 Korn was again elected to office as Deputy to the President of the Israel Diamond Exchange, and chaired several committees.

Jacob Korn is a second-generation diamantaire. He is the owner and managing director of Korn Diamonds Ltd., which he established in 1984. The company is internationally renowned as a manufacturer of special cuts and precisely calibrated diamonds for the watch and jewelry industries.

IsDMA was founded in 1940 and represents all of the diamond manufacturers in Israel, manufacturing in Israel and abroad. IsDMA works to advance the sector’s standing with government agencies and international forums.

Israel Diamond Institute (IDI) Chairman Moti Ganz said, “Kobi Korn is a very worthy leader for the Israel Diamond Manufacturers Association. For over 35 years he has proven his commitment to this industry and has contributed greatly to its success. In both his professional and public careers, Korn has been dedicated to upholding the highest standards. We look forward to working together to ensure Israel’s leadership as a world diamond center.”

New IsDMA President Jacob (Kobi) Korn

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IDI Managing Director Eli Avidar congratulated Korn in his new position. “Kobi Korn is a man of great integrity, who has devoted his entire career to advancing the Israeli Diamond Industry. We are happy to work together with IsDMA, with Kobi at its helm, for the benefit of the entire Israeli industry.”

New IsDMA President Jacob Korn said that he was pleased to be able to serve the diamond industry in this capacity, and that he would address the most pressing issues facing the diamond manufacturers in Israel. “The issue of financing is an acute challenge; we will make every effort to expand the sources of financing for the Israeli industry. In addition, we believe that the Israel diamond center will be strengthened by bringing back part of the manufacturing which is now done abroad, and we will search for ways to make that happen. We also plan to achieve a fair and suitable tax agreement with the Israeli authorities. I believe that my extensive experience will enable me to lead the Israeli industry in this changing world and bring it to new heights,” he said. n Mines to Market | May-June’ 2014

TRADE NEWS

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he Gem & Jewellery Export Promotion Council (GJEPC) today hosted the who's who of Banking, Gem & Jewellery Trade and Ministry of Finance officials at the Diamond, Gem & Jewellery Banking Summit 2014 held at the Taj Mahal Palace Hotel, Mumbai

Diamond, Gem & Jewellery Banking Summit 2014 GJEPC organised this summit to bring together senior officials from the Banking, Gem & Jewellery Trade and Ministry of Finance to discuss, aspects and present issues on financing for the Gem & Jewellery Sector; look at the current scenario of ECIB and Credit Guarantee in Gem & Jewellery industry and other burgeoning issues faced by the industry with regard to banking & finance for exports for the sector During the inaugural session, Dr. Gurdial Singh Sandhu, Secretary, Financial Services, Ministry of Finance, GOI said that, “In context to the current global economic scenario, the Indian industry needs to adopt international practices whole heartedly, to grow both nationally and internationally. The government of India was compelled to act stringently in the larger interest of country by raising import duty on gold and introducing 80:20 gold import guidelines. The new Central Government is determined to serve the needs of all industries and we hope its full cooperation and support for the same by announcing more developments in the coming days.”

He also added by,saying that” export is a priority sector for the government of India and necessary steps will be taken by the Government to ensure its growth in the international market.”

On this occasion, Mr. Vipul Shah, Chairman, GJEPC, said, “ I am priviledged to address the Banking, Gem & Jewellery Trade and Ministry of Finance officials and have the honour to organise this Diamonds, Gem & Jewellery Banking Summit 2014 again after a successful summit in 2013 which the industry and the financial institutions of the country, who are ideal and equal partners to our business to create business synergies. I would also like to thank all the banks and financial institutions who have helped this industry in its journey over the last four decades. If we have found out some concrete directions about how to increase that synergy, trust and confidence, then we have earned the day.”

Mines to Market | May-June’ 2014

At the summit, both Mr. S.S. Mundra, Chairman, Bank of Baroda and Ms. Arundhati Bhattacharya, Chairman, SBI, rightly pointed out that industry players need to be more transparent in operating their business operations and more compliant in the context to the changing banking scenario in both national and international markets. Ms. Bhattacharya also pointed out that the industry needs to maintain 3Cs: Confidence, Corporatization and Collateralization. She also stressed on the fact that the change in international banking scenario will also impact the Indian banking scenario which the industry needs to understand.

Both the leading bankers have expressed their full confidence in the Gem and Jewellery industry and they strongly believe that this industry has full potential to strengthen its leadership position in the international market and can further attract Foreign Direct investment in the country.

However they too expressed their deep concern that certain market events happened in the industry post 2008 global economic recession which have created a large trust deficit between the bankers and the industry. Both also believe that the future of the industry seems to be positive as demand for Gems and Jewellery items both in the Domestic and International market has shown improvement. The current collective challenge is to uphold the trust shared between the bankers and traders and further need to strengthen the same to ensure this decade long fruitful association continues in the future. It is also a good sign that bankers too feel that they need to interact with the Government to discuss the issue of financing the consignment sale of jewellery from Special Economic Zones, especially SEEPZ at Mumbai..

The panel discussions clearly indicated that bankers in the current scenario of occurrence of many NPAs strongly feel that the industry now needs to be more transparent in their business operations.

Due to lack of transparency in the industry, the confidence of bankers has been shaken which is making them reluctant to finance this industry to a large extent. Whereas the industry on the other hand feels that it is high time bankers initiate procedures to share and adopt best practices for each others to minimize their risks.

The Bankers were also really concerned about ECGC's refusal to do ECIB policies for enhanced credit limits. Whereas everybody agrees that this is not the ideal situation and will be a big hindrance in growth of exports, there is a general disagreement on who will take the risk ultimately, the banks or ECGC. The Industry clearly believes that , whereas banks cannot outsource their due diligence obligations and mitigate risks by only taking policies from ECGC on exporters turnover, at the same time ECGC should have adequate paid up capital from government to provide requisitecovers to the high value industry like the Gem and Jewellery industry.

Mr. N. Shankar, CMD,.ECGC stated that they need to limit their exposure to a particular industry and also cannot take the ECIB cover at its face value, which is sanctioned by the banks. However, he has promised to take up the issue of increase in capital and deduction of exposure limit from 50% to 40% which would further ensure the growth in the industry. The decision of introduction of multi-buyer policy has also been well received by the industry. Bankers need to carefully and minutely follow the due diligence procedures and employ personnel for regular interaction with the industry.

Banking developments like BASEL III regulations and provisioning of extra capital for unhedged foreign exposure by banks has impacted the industry. Bankers strongly feel that the track record of the promoter of the company needs to be assessed and examined carefully before financing his/her company. n

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SHOW TIME

JCK Las Vegas closes after a remarkable week in the desert JCK Las Vegas, North America's leading jewelry show, took place at the Mandalay Bay Resort & Casino and featured products from over 2,500 jewelry industry exhibitors. Known for its extensive range and diversity of offerings, JCK is comprised of specific sections: fine jewelry fills the halls of LUXURY, Elite Enclave and the newly renamed Prestige; luxury timepieces can be viewed at the by appointment only Swiss Watch; the Design Center boasts innovative, artisanquality jewelry; and the main JCK show floor is home to AGTA, Watches, the VICENZAORO Italian Pavilion, Plumb Club, and Hong Kong.

J

CK Las Vegas closed the doors on its 23rd annual fete in the desert this week, boasting strong attendance and an overall heightened level of success. Strong sales were reported across all categories of exhibitors, and buyers gave high marks to the amount of new product that was presented. Over 3,000 new buyers came to experience JCK Las Vegas for the first time; the international community strongly supported the show, with strong attendance from Brazil, China, India, Russia and the United Kingdom.

JCK Las Vegas, North America's leading jewelry show, took place at the Mandalay Bay Resort & Casino and featured products from over 2,500 jewelry industry exhibitors. Known for its extensive range and diversity of offerings, JCK is comprised of specific sections: fine jewelry fills the halls of LUXURY, Elite Enclave and the newly

renamed Prestige; luxury timepieces can be viewed at the by appointment only Swiss Watch; the Design Center boasts innovative, artisan-quality jewelry; and the main JCK show floor is home to AGTA, Watches, the VICENZAORO Italian Pavilion, Plumb Club, and Hong Kong. The product, combined with a daily itinerary of networking events, education seminars and entertainment, including Rob Thomas' JCK Rocks the Beach concert, made the show an unforgettable, must-attend event.

Winners, awards, and recognition were abundant at JCK and LUXURY this year.

Some of the week's major highlights included: LUXURY Retailer of the Year – The inaugural LUXURY Retailer of the Year Award was presented to Tom Schmitt, of Schmitt Jewelers, in Phoenix, AZ, for their outstanding ability to successfully bridge fine and fashion jewelry.

Shark Tank at JCK – After a tight competition between 6 of the industry's technology purveyors, TracTech was awarded winner of the first-ever JCK Shark Tank competition. TracTech's RFID technology was the favorite, voted for by over 800 retailers.

Diamond Empowerment Funds' Diamonds in the Sky Event, featuring Chaka Khan – Celebrated the Global Diamond Industry with H.E. President Ian Khama and the Government of the Republic of Botswana receiving the Global Diamond Industry Achievement Award.

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Mines to Market | May-June’ 2014

SHOW TIME

Global Leadership Forum – JCK was pleased to host global jewelry leaders at the inaugural Global Leadership Luncheon including Alrosa, Diarough, DeBeers Group and Chow Tai Fook, to name a few.

Plumb Club Breakfast and Evening Event – Plumb Club members and invited retailers enjoyed a morning breakfast keynote with Shark Tank TV personality and entrepreneur Daymond John, Founder and CEO of the iconic fashion brand FUBU and President and CEO of Shark Branding, and an evening Gala with Jerry Seinfeld.

Michael B. “Essence of Excellence” Award – After a moving tribute to designer Michael B, the winner of the first Essence of Excellence award was presented by Michael's family to Adam Adourian of Sareen Jewelry.

Design Center Top 50 Designer Retailers – The 2014 Top 50 Retailers were unveiled at a ceremony in the Design Center, with top honors going to Z. Folio, of Solvang, CA. After such a productive show experience, attendees were quick to vocalize their JCK 2014 experiences: Tanya Farah, of her namesake brand, shared “It's been an incredible experience.

We met a ton of new buyers, the response to the new collections was strong and we are already looking forward to JCK 2015!”

“We did fabulous,” raved Mary Connor of Geary's in Beverly Hills, CA. “This was one of the best shows ever.”

Mines to Market | May-June’ 2014

"Overall, the show was an amazing success! We met a ton of new retailers, had strong sales and have a lot of business to follow up on once we get back home.

Once again, JCK proved why it's THE show to be at.", commented Natalie Weisger of Omi Prive.

"The Vegas show is always an exciting time for the jewelry industry commented Stan Razny, of Razny Jewelers of Chicago. “It's the time for us who are passionate about our industry to gather together to see new designs, continue relations with longtime partners and develop new friendships. We left the show with a refreshed enthusiasm for jewelry and are ready to share the details with our staff and customers."

Dan Hamilton of Fred Myers/Littman Jewelers said, “To me, JCK in Vegas not only represents a great place to get business done and see new things, but also represents a time of celebration of the great industry to which we belong. “ And the attending media agreed: Robyn Hawk, of The Daily Jewel, commented on how “amazing it was to see the show so busy! There was a great range of products and exhibitors, and the seminars offered were educational and informative. I only wish I had had more time to attend additional ones!” n

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