Gem Diamonds Unable to Predict U.S. Holiday Demand News

By Thomas Biesheuvel found at bloomberg.com

Aug. 26 (Bloomberg) -- Gem Diamonds Ltd., a miner of the precious stones in Lesotho and Australia, said it’s impossible to predict U.S. demand for Thanksgiving and Christmas holidays, the most significant sales periods for the industry.

It’s the “most important time of the year by a long shot and there is no visibility on how the U.S. consumer will behave,” Chief Executive Officer Clifford Elphick said in a phone interview today. There will only be a “clear view” of 2010 after seeing the results for Christmas, Elphick said.
Gem Diamonds closed all mines in February except Letseng in Lesotho and one so-called pipe at Ellendale in Australia as the world economic crisis hit luxury goods. The U.S., making up more than 40 percent of diamond demand, is “key” to a recovery, RBC Capital Markets analyst Des Kilalea said last week. Thanksgiving and Christmas deliver 30 percent of consumption, Elphick said.

De Beers, the world’s biggest diamond company, restarted operations in Namibia last month after cutting overall first- half output by 71 percent. ZAO Alrosa, the Russian state-run diamond monopoly, resumed sales in May as demand improved, and it will sell more than $196 million of the gems this month.

“De Beers and Alrosa are coming back into the market quite strongly,” Elphick said. “That’s why I don’t think we’ll see big price increases going forward.” Prices hadn’t recovered enough to restart Gem Diamonds’s mothballed mines, he added.

Diamonds News Profit Doubles

Values will also be held back by limited jewelry demand and inventories at diamond cutters, Gem Diamonds said.

“Demand for diamond jewelry at the retail level has continued to remain below 2007 levels in the U.S.,” the London- based company said in a statement. While diamond prices “firmed” in the second quarter, stockpiles and debt levels at cutting centers are “relatively high,” it said.

Gem Diamonds today reported first-half net income more than doubled to $3.29 million. Sales declined 29 percent to $117.8 million. Elphick said the company is in talks to sell alluvial assets in the Democratic Republic of Congo and Central African Republic.
The company rose 10 pence, or 3.9 percent, to 270 pence by 10:30 a.m. in London trading.
To contact the reporter on this story: Thomas Biesheuvel in London tbiesheuvel@bloomberg.net.

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Robbers steal $78m in jewels

August 12, 2009 found at theaustralian.news.com.au

A MASSIVE police hunt is underway in Britain for two men believed to have pulled off the nation's biggest ever jewellery heist.

The armed robbers, dressed in smart suits and ties, made off with an estimated £40 million ($78.65 million) in gems from the exclusive Graff Diamonds store in central London during their daring daylight robbery.

Warning shots were fired and a female staff member briefly held hostage during the holdup, which lasted just minutes. The men, who both carried handguns, stole 43 items from the store on New Bond Street, in the heart of London's fashionable Mayfair district.

Their haul included a white and yellow diamond daisy necklace, double hoop diamond earrings, a platinum white Marquise diamond ring and a men's chronograph 45mm watch.

Police believe the robbery is the biggest ever jewel heist ever seen in Britain, ironically topping a £23 million ($45.23 million) raid at the same store in 2003 and a £30 million ($58.99 million) raid on Cartier in 1997.

While the robbery occurred last Friday, police only revealed the extent of the heist today as they launched an appeal for witnesses to come forward.

The men walked into the well-guarded Graff Diamonds - whose celebrity clients include supermodel Naomi Campbell and Victoria and David Beckham - about 4.40pm local time on August 6 and threatened staff with handguns.

In just a matter of minutes they ordered staff to hand over a variety of necklaces, bracelets, rings and watches before fleeing, seizing a female staff member on their way out.

The woman was left on the street as the robbers fired a warning shot into the air and leapt into a waiting blue BMW to make their escape.

Police said the BMW weaved its way through nearby streets before colliding with a black taxi.
The men abandoned their vehicle, firing another warning shot into the ground, and switched to a silver Mercedes which drove them a short distance to another waiting getaway car.

Police believe at some point while the men switched cars, they handed the jewels over to a waiting motorcyclist who sped off with the valuable haul.

Releasing CCTV images of the men on Friday, Metropolitan Police Flying Squad detective chief inspector Pam Mace appealed for the public to find the robbers.

"This was a well-planned robbery with a number of vehicles used to help the robbers escape," she said. "These men are extremely dangerous and fired at least two shots in busy London streets as they made their getaway.

"Someone knows who these men are, they would undoubtedly have spoken about it beforehand or boasted about it afterwards.

"I would urge anyone who recognises them, knows the whereabouts of the jewellery or has any other information to contact us."

Both men, believed to be in their 30s and about 182cm tall, wore grey suits and white shirts with ties.