Sunday, June 17, 2007
IDEX Online Research: A Very Savvy Investor Validates Jewelry Industry Future
Ken Gassman writes about Warren Buffett and his highly successful Berkshire Hathaway investment company + the purchase of retail jewelers Borsheim’s Jewelry, Helzberg Diamond Shops and Ben Bridge Jeweler, and now, Aurafin and Bel-Oro, both major gold jewelry suppliers + Buffett's investment philosophy @ http://www.idexonline.com/portal_FullNews.asp?id=27675
New York’s Rapaport Seeks Approval For Trading In Diamond Futures
Saijel Kishan writes about the Rapaport Group, a New York-based provider of diamond prices, who is seeking approval from the US Commodity Futures Trading Commission (CFTC) to start the world’s first diamond futures contracts @ http://www.livemint.com/2007/06/12011419/NYs-Rapaport-seeks-approval-f.html
Alas, Poor Art Market: A Multimillion-Dollar Head Case
Alan Riding writes about British artist Damien Hirst's platinum human skull covered in 8,601 diamonds + its value: £50 million, or close to $100 million @
http://www.nytimes.com/2007/06/13/arts/design/13skul.html?_r=1&8dpc&oref=slogin
http://www.nytimes.com/2007/06/13/arts/design/13skul.html?_r=1&8dpc&oref=slogin
The Capping Mechanism In Name Only
Chaim Even-Zohar writes about the rising sense of frustration regarding DTC sight application processes + the ceiling on an applicant's sight allocation + the misunderstandings of the rules of the game @ http://www.idexonline.com/portal_FullEditorial.asp
Saturday, June 16, 2007
Ocean's Thirteen
Memorable quote (s) from the movie:
Linus Caldwell (Matt Damon): He owns all of the air south of Beijing.
Abigail Sponder (Ellen Barkin): The air?
Linus Caldwell (Matt Damon): Let me put it to you this way: try building something taller than three feet in the Tiangjin province, and see if his name comes up.
Linus Caldwell (Matt Damon): He owns all of the air south of Beijing.
Abigail Sponder (Ellen Barkin): The air?
Linus Caldwell (Matt Damon): Let me put it to you this way: try building something taller than three feet in the Tiangjin province, and see if his name comes up.
Marketing In The 21st Century
The author highlights the competitive nature of new version of gem and jewelry businesses + ways to improve customer satisfaction + challenges in maintaining high standards + reaching specialized and niche markets.
Pam Welborn (The Color Source, Texas, USA) writes:
In the 21st century, successful companies will have to bring their products to market efficiently. In the jewelry industry, this trend will favor those companies whose capabilities include gem rough sourcing, as well as in-house cutting, design, and manufacturing operations, and even distribution channels. Such companies can control quality and cost at every stage of production and will provide savings in terms of lower per-unit costs. Also, by controlling the design function and by associating with trusted partners in foreign markets, such companies can tailor their jewelry products to reflect the distinctive cultural designs of those markets for greater acceptance and sales. The Internet can also be used to post an online catalog of jewelry items, sell the products, and facilitate a rapid delivery service to the targeted market.
The increased efficiency of all these efforts will shorten the delivery time from the manufacturing center to the end consumer. A higher level of contact with the consumer using the Internet and call centers, located in favorable labor countries, will decrease response time and increase customer satisfaction.
Such companies are Internet savvy, computer driven, and focused on high quality standards of manufacturing. They are able to produce jewelry items for a specialized, niche market as well as produce a limited edition or an exclusive design for a national market. Global opportunities are limited for most companies. Therefore, a major upheaval in the next 10 years is likely as the jewelry industry adapts to this new paradigm.
Pam Welborn (The Color Source, Texas, USA) writes:
In the 21st century, successful companies will have to bring their products to market efficiently. In the jewelry industry, this trend will favor those companies whose capabilities include gem rough sourcing, as well as in-house cutting, design, and manufacturing operations, and even distribution channels. Such companies can control quality and cost at every stage of production and will provide savings in terms of lower per-unit costs. Also, by controlling the design function and by associating with trusted partners in foreign markets, such companies can tailor their jewelry products to reflect the distinctive cultural designs of those markets for greater acceptance and sales. The Internet can also be used to post an online catalog of jewelry items, sell the products, and facilitate a rapid delivery service to the targeted market.
The increased efficiency of all these efforts will shorten the delivery time from the manufacturing center to the end consumer. A higher level of contact with the consumer using the Internet and call centers, located in favorable labor countries, will decrease response time and increase customer satisfaction.
Such companies are Internet savvy, computer driven, and focused on high quality standards of manufacturing. They are able to produce jewelry items for a specialized, niche market as well as produce a limited edition or an exclusive design for a national market. Global opportunities are limited for most companies. Therefore, a major upheaval in the next 10 years is likely as the jewelry industry adapts to this new paradigm.
The Emerald Business In South America
Here is an interesting overview on the state of emerald mines and the new business model for the industry.
Andrew Lucas (GIA), Eric Welch (GIA), Jean Claude Michelou (ICA, Colombia), Marcelo Ribeiro (Belmont LTDA, Brazil), Luiz Martins (Stone World, Brazil), Pedro Padua (GIA) and Sergio Martins (Stone World, Brazil) writes:
South America is considered by many in the gemstone industry to be the most important continent for emerald production. Colombia is the number one exporter of emeralds to the United States, and Brazil is also a highly important commercial source of emeralds. This information was obtained during two trips to the mining areas organized by the International Colored Gemstone Association and subsequent correspondence with ICA members.
The techniques used to explore and develop new mines, such as the Piteiras mine in Minas Gerais, Brazil, are typically more common for diamond mines than for colored stone mines. Emerald cutter and wholesaler Stone World of Sao Paulo, Brazil, formed a joint venture with Seahawk Minerals to vertically integrate the operation from mine to cutter to wholesale office. The Belmont mine, also in Minas Gerais, began in a more traditional process for colored stone mines. Emeralds were found on this property, which still operates as a cattle ranch. The Belmont mine began as a highly successful open pit operation, which continues today. The most advanced resources in geological modeling and mine planning have led to the opening of an underground mine to complement the open-pit operation. Belmont has an extensive sorting operation for their rough to meet the needs of their customers.
The La Pita area in Colombia has become the major commercial emerald-producing area in the country, with most production coming from the Consorcio mine. A number of other productive underground mines also exist in this area by the Rio Minero, including the La Pita Tunnel, Cunas, El Totumo, and Polveros mines. The Puerto Arturo mine in Muzo is still in production and under control of the Carranza group, which also has a minor partnership in the Consorcio mine and an influential stake in the Cunas mine. Many of the mine stakeholders in Colombia, whether they have interests in the La Pita, Muzo, Coscuez, or Chivor areas, are also involved in cutting and wholesale sales of polished goods.
Andrew Lucas (GIA), Eric Welch (GIA), Jean Claude Michelou (ICA, Colombia), Marcelo Ribeiro (Belmont LTDA, Brazil), Luiz Martins (Stone World, Brazil), Pedro Padua (GIA) and Sergio Martins (Stone World, Brazil) writes:
South America is considered by many in the gemstone industry to be the most important continent for emerald production. Colombia is the number one exporter of emeralds to the United States, and Brazil is also a highly important commercial source of emeralds. This information was obtained during two trips to the mining areas organized by the International Colored Gemstone Association and subsequent correspondence with ICA members.
The techniques used to explore and develop new mines, such as the Piteiras mine in Minas Gerais, Brazil, are typically more common for diamond mines than for colored stone mines. Emerald cutter and wholesaler Stone World of Sao Paulo, Brazil, formed a joint venture with Seahawk Minerals to vertically integrate the operation from mine to cutter to wholesale office. The Belmont mine, also in Minas Gerais, began in a more traditional process for colored stone mines. Emeralds were found on this property, which still operates as a cattle ranch. The Belmont mine began as a highly successful open pit operation, which continues today. The most advanced resources in geological modeling and mine planning have led to the opening of an underground mine to complement the open-pit operation. Belmont has an extensive sorting operation for their rough to meet the needs of their customers.
The La Pita area in Colombia has become the major commercial emerald-producing area in the country, with most production coming from the Consorcio mine. A number of other productive underground mines also exist in this area by the Rio Minero, including the La Pita Tunnel, Cunas, El Totumo, and Polveros mines. The Puerto Arturo mine in Muzo is still in production and under control of the Carranza group, which also has a minor partnership in the Consorcio mine and an influential stake in the Cunas mine. Many of the mine stakeholders in Colombia, whether they have interests in the La Pita, Muzo, Coscuez, or Chivor areas, are also involved in cutting and wholesale sales of polished goods.
The Missed Boom...
Chaim Even-Zohar writes about the contraction of the rough diamond supply sources + pros and cons of present acquisitions and mergers in the mining world + explanations on non-diamond boom, especially in copper, cobalt, gold, zinc and nickel @
http://www.idexonline.com/portal_FullEditorial.asp?TextSearch=&KeyMatch=0&id=27576
http://www.idexonline.com/portal_FullEditorial.asp?TextSearch=&KeyMatch=0&id=27576
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