THE BOURSE

November 2013
Dear Reader,
2013 will end in the same vein as the year begun with African producers becoming prominent in the rough diamond
sector. Mining was a key focus at the beginning of the year and I believe that financing and the health of the diamond
trading segment will be an important area to follow in 2014. A very welcome development during 2013 was the
stabilisation of the global economy and hopefully global demand will become stronger. Synthetics will also begin to take
more space in industry discussions; they are here to stay and it is imperative for the industry to get it right in managing
the perceived threat of this market. DMCC ends 2013 on a high note with our 10th tender of the year being held in
December (rough and polished diamonds). We have 10 more tenders planned in 2014 and several more private selling
opportunities as well. The bourse has seen its busiest year yet and is delivering on its promise of facilitating trade in
Dubai; increasingly we are noticing African, European, Indian and Chinese traders coming to Dubai to conduct business
and entrusting DDE to facilitate. Our doors are always open and we look forward to welcoming you again in 2014.
Franco Bosoni
Director, DMCC Commodity Services

Dubai Rough Trade Nov. 2013

The year to date (Jan Nov) trade volume of
rough diamonds in Dubai has increased by 11%
to 121 million carats, with the value increasing by
5% to US$ 11 billion in comparison to the same
period last year.
A total of 59 million carats were imported from
Jan to Nov reaching a value of US$ 4 billion,
while exports were at 62 million carats with a
value of US$ 6.5 billion. The top trading
countries by value were the UK, Belgium, Hong
Kong, India, and Angola.

Price performance
Polished Diamonds
Rapaport reports highlight that certified polished
diamond prices were relatively stable in November
in comparison to October. This stability was
supported by Black Friday in the U.S and the
Christmas shopping season that has kicked off.
During this period diamond dealers are focused on
supplying U.S. jewellers with lower priced
commercial quality diamonds.
RapNet Diamond Index (RAPI) 1 Carat

Source: Kimberley Process, Dubai

In November trading of polished diamonds started slow as Indian

dealers were on vacation during the festival season of Diwali. The
biggest year to date fall in prices is 1 carat diamond which has
fallen by 4.7%. Rapaport shows there is good demand for 0.30carat to 0.50-carat, H-J, SI1-I2 diamonds and strong demand for
fancy colour diamonds. Source Rapaport
In comparison to the same period last year, the U.S. retail sales
reportedly declined by 2.7% during Thanksgiving weekend as the
average spending per consumer fell 4% to $407.02, according to
the National Retail Federation.
RapNet Diamond Index (RAPI) - Polished
November

YTD
Jan.1 to Dec. 1, 2013

Y2Y
Changes at Dec. 1

0.3

1.4%

7.1%

8.2%

0.5

0.2%

-1.8%

-1.7%

-0.1%

-4.7%

-4.7%

-0.3%

-3.2%

-2.9%

Carat

Zimbabwe sees mineral

exports increasing from
US$1.2 billion to US$ 6
billion by 2018
The Minerals and Marketing
Corporation of Zimbabwe
Chairperson, Chris Mutsvangwa,
said, We have high value
minerals such as diamonds, gold
and platinum and we keep
discovering new diamond fields.
Source: www.miningweekly.com

Diamonds and its importance to Africa

Zimbabwes Diamond Industry Recovery
World Bank report: Diamonds are key to Zimbabwes
economic recovery
A World Bank report stipulated that Zimbabwes economy
can be given a big boost from further accessing formal
markets.
The report valued the stockpile of Marange diamonds built
by the Zimbabwe Mining Development Corporation (ZMDC)
at as high as US$ 5 billion.
These will be sold off in the coming years, significantly
enhancing fiscal revenues alluvial diamond production at
the four ZMDC-controlled mines in Marange was nine
million carats in 2011 and the figure was expected to rise to
11 million carats last year said the World Bank report.
The report estimated production is expected to peak
reaching 12 million carats annually over the next five years.
The government of Zimbabwe is also planning on investing
US$ 150 million and the Bank has said if this investment
happens production could increase to 15.2 million carats
per annum by 2018.
It further stressed that given the magnitude of controversy
generated by the diamond mined from the Marange area,
there is a high possibility that the volume of diamonds
mined might be more than what the bank has recorded.
Nevertheless, figures released by the Ministry of Finance
on the export values of diamonds in the first eight months of
2012 corroborate the projections used in World Bank
analysis, the report stated.
Zimbabwe auctions diamonds in Antwerp:
Following the lift of sanctions against Zimbabwe by the
European Union (EU) in September, 2013, Marange
diamonds now have access to international markets. From
th
th
4 - 11 , 2013, as a pilot, Zimbabwe will auction about
500,000 carats of diamonds worth about $37 million in
Antwerp.

The Zimbabwe government is hoping this pilot will enhance

the countrys transparency and encourage local diamond
companies to continue to leverage this auction route.
Mines ministry permanent secretary Francis Gudyanga
said, We used to sale our diamonds at cheaper prices due
to sanctions that were imposed on our firms. Now that the
sanctions have been removed, we can sell our gems to
over 1,800 buyers from all over the world in Antwerp.
Source: www.rough-polished.com

WDC highlights the role diamonds play in the

well-being of ordinary people in Africa
In the plenary session of the Kimberley Process in
Johannesburg, South Africa, the World Diamond Council
(WDC), highlighted that the Kimberly Process has not only
been able to clean the pipeline of conflict diamonds but has
also been able to establish that diamonds are an essential
component to the well-being of ordinary people in African
producing countries.
In Avi Pazs, WDC president, speech, he emphasized that
for more than 100 years Africa has played a major role in
the diamonds value chain, by being involved in the mining
stage.
He further highlighted that the beneficiation policy that was
developed in South Africa and then exported to its
neighbouring countries had a profound influence on the
industry, leading to the establishment of factories and the
development of expert workers, administrators and service
providers in a host of southern African countries.
Avi Paz also noted that the African producing countries are
on the right track, but there is still plenty of work to be done
for them to reach their full potential. Paz concluded by
saying, the establishment of the DTC headquarters in
Gaborone this year was an event of positive consequences
and has put Africa at the centre of the diamond business.

The Dubai Gold and Jewellery Group stated in

2012 that Dubai accounted for approximately 10%
(US$40 billion) of the global luxury jewellery
market.
Prominent gold and diamond jewellers of Dubai give their opinion on
the state of the Jewellery market in Dubai and its leading clients
nationalities

Market View on Dubai Jewellery Market

What is your opinion on the performance of the
jewellery market in Dubai?
Amit Dhamani, CEO/Managing Director, Dhamani
Jewellers (AD): The increase in the number of Russian
and Chinese customers in the Dubai Jewellery Market
rd
has led to a 3 quarter year on year growth in the
jewellery market. Primarily we have seen the growth in
numbers of customers who purchase big size diamonds
and gem quality colour stones.
Anuraag Sinha, Managing Director, Liali Jewellery
(AS): The jewellery market in Dubai is like the weather in
Dubai - it gets better as the year comes to an end
because of the festive season. From October, the
festivities start off with Eid, Diwali and then end with
Christmas. From past experience, during this time we
expect business to grow. In addition with the state of the
global economy picking up, we are experiencing more
tourists coming to the Emirate, so now is a really busy
time for us.
Chandu Siroya, Owner, Siroya Jewellers (CS): The
sale of gold jewellery has been very good in the first half
of 2013. It was higher by about 20% compared to the
same period last year. The period between April to June
was exceptionally good for the Dubai market.
What is your outlook on Dubai's jewellery market in
the coming years?
(AD): The Dubai jewellery market, especially to the
sector which Dhamani belongs to fine diamond and
gemstone jewellery is expected to grow in the coming
years. With Dubais tax-free market, state of the art
infrastructure and a market that houses the worlds
renowned brands and products under its roof, we can
expect to continue to attract customers from across the
globe. The aforementioned factors will help the jewellery
market to grow and come in par with its competitors e.g.
New York and London. One of Dubais strengths in the
Jewellery market is the strong retail friendly regulations
to protect its customers, which are not seen in many of
the other jewellery markets across Asia and Europe. The
efforts of the Dubai Government should be appreciated
to make Dubai as one of the most sought out customer
market of the region.
(AS): The jewellery market in Dubai has only grown one
way and that is upwards. The main reason for that is
the width and depth of the offering that Dubai provides

to the world of fine jewellery. In addition, consumers are

guaranteed complete peace of mind on the quality of the
jewellery bought due to the stringent regulations that
Dubai follows for the hallmarking of gold as well as the
checks on the diamond jewellery.
However, I must admit that the customers are spoilt for
choice in Dubai which makes the role of the retailers
more challenging. Their tastes are getting more refined
each day & consumers are also becoming more brand
conscious today.
(CS): I think the jewellery market will remain stable,
provided the gold price remains stable. I surely see a
growth in the market and with the Expo 2020 coming to
Dubai there will be an increase in tourism and also other
activities, resulting in the increase in sales.
What are the main cliental base nationalities in
Dubai? (Both retail or B2B)
(AD): Judging by the trends which we have seen in the
last couple of years, nationalities from GCC, Russia,
China and India (primarily gold jewellery) comprise the
main cliental base in the jewellery market in terms of their
purchasing parity. Pin pointing one trend which we have
seen has grown in leaps and bounds is the growth of
Chinese customers and their purchasing power in the
Dubai Market. This trend is likely to continue as we see
that the Chinese consumers are travelling more and are
becoming major buyers in many major markets.
(AS): Dubai is a very multi-cultural and cosmopolitan city
and jewellery plays a part of the tradition of the UAE
locals as well as their expat Arab counterparts.
We have also seen the South Asian population, investing
in gold bars and jewellery as a means of diversifying their
portfolio. The resident western expat also contributes a
very huge amount towards jewellery purchase in the form
of classic styles. The comfort level of the rest of the GCC
consumers is also high in Dubai as they can get access
to more choices and convenience of shopping here.
(CS): The Dubai gold jewellery market is unique. We
cater to almost all types of customers. The large
percentage of our clients are from tourists from all over
the world, so the retailers stock all types of jewellery
starting from 14k gold to pure gold jewellery.

Market Updates

Signet acquires Exelco Diamond Polishing Factory in

Botswana

De Beers lowers diamond prices at first Botswana

sight
In the first Botswana sight, Idex Online reports show that
prices of most rough diamonds fell by approximately 5%.
The report, however, noted that De Beers should have
further lowered the prices due to the poor state of the
industry. Most notably, diamond polishing firms from
India were said to be facing much pressure due to high
rough prices, acute decline in the value of the rupee
against the US dollar and a lack of liquidity.
The reduction is welcome but it is not going to help a
great deal given all the problems we are facing, an
unnamed sight holder was quoted.
Gems and Jewellery Export Promotion Council (GJEPC)
chairperson Vipul Shah said that most Indian
manufacturers had started reducing production. Rising
prices of rough diamonds, currency fluctuations and
limited finance options, with banks having become
stringent, have recently had a severe impact. he added.
Angola Elected as Vice Chair of Kimberley Process
for 2014 and as Chairman for 2015
Angola was elected as the Vice Chair of the Kimberley
Process (KP) for 2014 and as the Chairman for 2015 at
the KP Plenary session in Johannesburg, South Africa
nd
on the 22 of November.
During the conference, the World Diamond Council
(WDC) President Avi Paz said "It is a proud moment for
the Kimberley Process that a country which, once
afflicted by civil conflict, has now regained political and
economic stability, as a consequence, is in a position to
assume a position of leadership in the very institution
that helped set it on its way to recovery."
Many months before the KP plenary meeting in South
Africa, the WDC had always thrown it weight behind
Angolas bid to become the KP vice Chair.
Paz acknowledged and thanked the outgoing KP Chair,
Ambassador Welile Nhlapo of South Africa, for his
leadership of the KP in 2013, and welcomed Wei
Chuanzhong, Vice Minister of General Administration of
Quality Supervision, Inspection and Quarantine of China,
who will assume the role of KP Chair in 2014.
The KP Plenary also voted for the WDC to continue to
manage the Kimberly Process administrative Support
Mechanism (ASM) for another three years.
This agreement means that the WDC will continue to
manage the logistic, organisational and communications
support to the KP Chair and its office on an on-going
basis through four of its members - the Israel Diamond
Institute (IDI), the Gem and Jewelery Export Promotion
Council (GJEPC) of India, the Antwerp World Diamond
Center (AWDC) and the Diamond House of the
Government of Ghana.

Signet Jewelers Ltd., the largest retail jeweller in the US

and UK, has acquired a diamond polishing factory in
Gaborone, Botswana from H&A Cutting Works Ltd., a
subsidiary of Exelco International Limited.
Through its wholly owned subsidiary Signet Direct
Diamond Sourcing Limited, Signet continues to work
towards growing its rough-diamond sourcing and
manufacturing. The acquisition and operation of this
diamond polishing factory in Botswana complements the
companys growth strategy enhancing its capability to
polish sourced diamonds.
Mike Barnes, Signet Chief Executive Officer said,
"Signet's objectives with this initiative are to secure
additional, reliable and consistent supplies of diamonds
for our customers, and achieve further efficiencies in the
supply chain we are committed to further developing
this initiative, as well as, building our relationships with
our established vendors of polished diamonds and
diamond jewellery, who will continue to account for the
majority of our diamond sourcing."
Diamonds and diamond jewellery make up approximately
75% of Signets sales in the United States (the world's
largest diamond market).
DMIA Initiative for Meeting on Synthetics Diamonds
Gains Support
An array of industry organisations have come on board
following an urgent call issued earlier this month by the
Diamond Manufacturers and Importers Association of
America (DMIA) to host an industry-wide meeting in New
York City that will put enforceable measures in place to
prevent synthetics being presented as natural diamonds.
The meeting will be held under the banner of the DMIA,
the Diamond Dealers Club of New York (DDC), the
Indian Diamond and Color Stone Association (IDCA),
and the Natural Color Diamond Association (NCDIA).
DMIA President Ronnie VanderLinden cited by Rapaport
"We have already engaged law enforcement agencies
and have received confirmations from national
organizations such as Jewelers of America (JA), the
American Gem Society (AGS), the Manufacturing
Jewelers & Suppliers of America (MJSA) and the
Jewelers Vigilance Committee (JVC). Also, three major
gem labs that service our industry are on board they
are the Gemological Institute of America (GIA), the
International Gemological Institute (IGI) and the
European Gemological Laboratory (EGL USA.) we are
confident that this meeting will result in strong measures
that have real teeth.

Calendar of Events: Dec, 13 & Jan, 14

GIA Course
DDE rough & polished tender
IGI Professional Jewellery Designing
Course

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PO Box: 48800 Dubai U.A.E

T. +971 4 433 67 11

December
3
8 12
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5 - 21

F. +971 4 375 18 96

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