Monday

As chilly January turned to gloomy February last week, a startling statistic came to light. According to the National Retail Federation in America, US shoppers are going to up their jewellery spends by 17% this year. Indeed, their predictions may be true as hot young Hollywood couple Ashley Greene and her Jonas brother boyfriend were spotted picking out eternity rings; while on this side of the pond Kate Middleton and Prince William are thought to be taking their second-hand engagement ring to the Scilly Isles.

Tuesday

The beginning of the week saw the sad passing of one of film’s greatest composers. John Barry who had written the score for eleven Bond films, including Diamonds Are Forever, died aged 77.

Wednesday

Conflict diamonds took centre-stage on Wednesday with reports that President Mugabe would benefit from sales of a new Zimbabwean mine. Meanwhile, Naomi Campbell, who suffice to say has had her fair share of diamond-related conflict took to Gents mag GQ to talk about her brush with them.
And speaking of making your bed... diamond-designer Stuart Hughes unveiled his latest diamond-encrusted confection – a diamond double bed. The perfect companion to this week’s diamond Blackberry.

Thursday

Thursday got a lot of auction action. Sotheby’s revealed that their Important Jewels sale in New York raked in nearly $9million, while the Screen Actors Guild finished their annual SAG auction. Manwhile in London, Christie’s previewed the 2011 auction highlights which included a fair few sumptuous jewels. Click here to see them.

Friday

Following Campbell’s revelations about her own diamond gaffs, LiLo became a repeat offender when it was revealed that she was under investigation for fine jewellery theft... Meanwhile Manolo Blahnik cashed in on his rep with a diamond pendant and fashion stalwart Kate Moss finally put paid to those engagement rumours by announcing that she IS actually engaged. Official-like.

By Hannah Powell

Of course, the jewels themselves held obvious appeal and the historical nature of the pieces attracted more than the usual crowd of jewellers and private collectors. Indeed, last Tuesday saw the second ever such auction of Wallis Simpson’s jewels, its only predecessor being the famous Geneva sale in the Eighties which saw celebrities and royalty battle it out in furious bidding wars. However, as the obligatory front row of fur coats took their seats, I tried to put my finger on what it was about Simpson’s jewels and keepsakes that so enchanted and then of course it dawned on me; it was not so much the jewels but rather the woman who had owned them. That woman, the enigmatic American, who at once beguiled and inspired revulsion in the same measure, a figure so iconic, she could still capture the attention of the world’s media nearly twenty-five years after her death.

I became even more determined in my resolve when I reconsidered the pieces in the collection, recalling how I was most struck by the gold and gem-set cigarette case engraved with a map of Europe. Even sat alongside the diamond, emerald and onyx panther - which would sell for £4million merely hours later - it was this simple cigarette case that stood out like a beacon. In a hugely romantic display of affection, Simpson had the map inscribed with the names of locations, each pin-pointed with a gem or diamond and connected with red or blue enamel lines, depending on whether the journey was by sea or land. Although somewhat of a twee item in itself, the true beauty of the cigarette case was that it mapped out the logistics of a love affair. In spite of the fact that it scandalised a nation and nearly threw the British monarchy into disrepute, for me, that cigarette case encapsulated the appeal of the entire auction, imbued with emotion, these jewels and keepsakes document one of the most famous, controversial and historical love affairs in history.

However, this then begs the question as to whether it is solely romance commanding the £6.9million premium, or do we buy into the history, harkening to a bygone era where glamour knew no bounds? Or is there, as I suspect, a slightly voyeuristic element to it all? The enigma of Wallis Simpson is essentially founded on controversy; she was a married woman, while also being fiercely and unashamedly ambitious. Yet, what was more disarming than anything was that - although not known for her immediate beauty - Simpson was incredibly well-versed in the art of seduction, so much so that she reduced a playboy Prince to little more than her lapdog; I can’t help but think part of the allure is the licentiousness of it all. When Tiger Woods’ ex-wife Elin Nordegren announced her intentions to auction the jewels given to her throughout her relationship with the golfer, it sparked a media storm. Indeed, our interest in other people’s affairs – however literal – has even been immortalised on celluloid as the 2008 Sex and the City movie perfectly illustrated in the opening moments as the fab four flock to a jewellery auction consisting of pieces which were once given to a woman by her fiancé, who years later had unceremoniously ditched her. Heck, one character even flies coast to coast for the event!

It is the answer as to why the Cartier panther bracelet and flamingo brooch were always going to trump the historical gems of the monarchy at last week’s auction. Those fabulous jewels were not classic designs but rather, they were indicative of their owner; voracious, unapologetic and ahead of their time, knowing at once ‘how to flirt’ as BBC journalist Chris Jones put it, they express something of the woman who once famously said ‘You can never be too rich or too thin.’ And that is what we're all buying into.

Hannah Powell

Marilyn Monroe and Shirley Bassey were onto something with all that diamonds are forever business. Besides the fact that they won’t leave you in the night, that they never lie, and that they’ll lustre on even when love’s gone...here are five reasons WE think you should invest in diamonds:

1. DIAMONDS DON’T GROW ON TREES YOU KNOW

They “grow” in mines. And there aren’t many of those around. Diamonds can only be found in a handful of places and most of the diamond mines have already been exploited. Which is to say, eventually all the sources will have been exhausted...oh, alright I’ll put it in business speak, demand will exceed supply...and when that happens, er, you’re probably better off being on the supply end.

2. CUT THE CRUNCH

We all know that diamonds are the only thing hard enough to cut glass, but they are also one of the only investments hard enough to cut the credit crunch. Well, to be fair, the diamond industry did suffer its own lashes and slashes during the economic crisis, but studies conducted by The DeBeers Group prove that diamonds performed better than any other luxury sales in that catastrophic year that was 2008. Yep, better than watches, better than yachts, better than Crème de la Mer. Who needs moisturizer when you have diamonds!

3. BECAUSE THE FT SAYS SO

Oh come on, you know you blindly trust the FT and paraphrase their articles whenever you’re lacking in something finance-savvy to say! An article entitled “Sparkle returns to the diamond market,” published in the FT earlier this year assures investors that the diamond market is back on its feet, and recommends investing in “loose diamonds of 5 to 20 carats with grading certificates,” adding that “blue, pink, yellow and red hues are sought-after.” Being “in the red” just took on a whole new meaning...

4. TRAVELIN’ LIGHT

Good things really do come in small packages. Diamonds are one of the most concentrated forms of investment that exist. Wouldn’t it be nicer if you could carry all your assets in your pocket rather than annoy your neighbours with all the cases of wine you’re storing outside your door?

5. HAVE YOUR CAKE AND EAT IT TOO

Unlike that country house in the Cotswolds you invested in that you neither rent out nor visit as often as you planned, and unlike that case of ’65 Bordeaux that ceaselessly calls your name begging you to drink it...you can wear your diamonds all you want without the worry of them running out or losing value, without the guilt, without the hangover. This, if anything, is what it means to have your cake and eat it too.

Of course, when you have diamonds in your possession, there’s always that little risk of getting called in testify against a war criminal, but then again you could always say you thought they were just “dirty little stones.” And actually, if you buy them from Seventy Seven Diamonds –you can be sure they’re conflict free. Yes, here at Seventy Seven, we believe the best things in life are (conflict) free.

Please call us on +44 (0) 207 631 5304 should you wish to learn more or consult with one of our diamond experts regarding investment opportunities.

According to the IDEX Online Polished Diamond Price Index, average day-to-day polished diamond prices have remained steady for the last eight consecutive months, rising a mere 0.1 percent in November month-over-month. The IDEX Online Diamond Price Index is a real-time index constituted from actual asking prices in the global diamond industry: it therefore objectively reflects price trends as they occur.

Whilst rough diamond prices are higher, consumer demand for diamonds and diamond jewellery has been tenuous for over the past year which has kept polished diamond prices low.  Year-over-year prices have dipped for polished diamonds for the past eleven months and prices remain 10.1 percent below last year’s average.

In November all major diamond sizes experienced slight price deflation; large diamonds of three carat upwards showed greater levels of price deflation than diamonds sized under three carats. This trend of bigger diamond prices decreasing more rapidly has characterized global polished diamond prices over the last few months.

However August 2008 saw a peak in diamond prices and they continued to soften in September, indicating that the year-over-year rate of decline is contracting.

For instance, jewellery demand within the US market is exhibiting a recovery.  As American shoppers are responsible for consuming approximately half of the world’s jewellery, polished diamond prices are expected to increase within the improved demand over the holiday selling period.

As predicted, digital research comScore verified on Monday that US consumers have spent nearly $19.9 billion online so far during this holiday season. This indicates a 3 percent increase compared to the corresponding days of 2008.  In comparison to 2008, the most substantive increases were recorded on Thanksgiving Day (November 26th), Black Friday (November 27th) and Cyber Monday (November 30th).  Over the past week American online holiday shopping reached a total of $4.6 billion and we have since seen a 30 percent rise from the total online spending numbers released by comScore last week.  On December 10th holiday sales reached $852 million.

Fronted by IDEX Online Research is a forecast of modest recovery in diamond jewellery demand for 2010, with a rise in prices due once the demand solidifies. Preliminary figures could be premature but they anticipate recuperation in prices which will see an 8 - 10 percent sales profit for the full year.

However, the polished prices recovery period in 2010 could experience some volatility or instability. If there are any new system shocks prices will be affected. On a long term though the global trend in polished diamond prices is expected to stabilise back into usual annual inflation levels of 3 - 4 percent.

Statistics illustrate the shocking realities of the affects of conflict diamonds globally. Countries including Angola, Democratic Republic of Congo, Sierra Leone and Liberia have all been victims of brutal civil war resulting in countless fatalities. The Democratic Republic of Congo was only recently free of the civil war, which lasted between 1998-2003. There is, however, still continued insecurity over the safety and stability of the country. More than 3.3 million people were violently killed as a result of rebel groups, who were supported by neighbouring countries, competing for diamond areas in the northeast.

In 2000, the South African Government invited major diamond trading and producing countries, representatives of the diamond industry, and NGO’s to meet in Kimberley, South Africa to discuss plans to cease the trade of conflict diamonds. After three years of negotiating, The Kimberley Process Certification Scheme was put into action in 2003 and was officially endorsed by the United Nations General Assembly and the United Nations Security Council.

The Kimberley Process “aims to prevent the flow of conflict diamonds, while helping to protect legitimate trade in rough diamonds” as assured by the Official Kimberley Process website.  The Kimberley Process Certification Scheme set out extensive requirements to certify the shipment of rough diamonds as conflict free. Participants in the Kimberley Process must meet ‘minimum requirements’ and establish national legislation, export, import and internal movement controls, and must agree to share statistical data. Members of the Kimberley Process are only legally allowed to trade with fellow members who have also met the minimum requirements outlined by the scheme and all shipping of international rough diamonds must have a certificate which certifies it, by the Kimberley process, as conflict free.

It is believed that 99% of all diamonds are now conflict free and traded under the Kimberley Process. Even though the Kimberley Process has dramatically decreased the trade in conflict diamonds, in 2007, 74 Governments, leading NGO’s and the World Diamond Council agreed on measures to further strengthen the Kimberley Process. In November 2008, the Kimberley Process had 49 members, representative of 75 countries, (the European Community counting as one participant). In terms of where conflict free diamonds are sourced, any countries that participate and follow the strict regulations of the Kimberley Process can be classed as conflict free diamonds.

The Conflict Free Diamond Council provides guidelines to help consumers buy a conflict free diamond. For example; ‘The diamond must be mined, cut, and polished in the same region or territory without crossing any national borders, must be laser engraved with a serial number, then scanned and recorded in a confidential, centralized database. The facilities where the diamond is mined, cut, and polished must adhere to global labour and fair wage laws and must employ local residents’.

Figures for last year revealed astonishing losses. As obtained from Gem Diamonds, a London-listed miner, the average price per carat of a rough diamond fell from about $2,500 to $1,400. The panic was apparent when news broke of a meeting between DeBeers and Alrosal, the Russian mining group, in the diamond capital of the world, Antwerp, to attempt to tackle the falling prices.  All eyes were turned towards America, who ordinarily account for half of all of the diamonds consumed around the world. December 2008 showed a 20% drop in sales around the Holiday season in America, as well as figures slumping globally.

Bloomberg today reported that ‘London’s economy is recovering faster than the rest of the UK.’ “The UK regions continued to take steps along the road to recovery, with London leading the way,” said Tim Moore, an economist at London-based Markit. Even though parts of the world are still in recession, there is optimism for diamond prices in the near future. As assured by IDEX, the Online Diamond Price Index, between the months of July-September 2009, “it appears that diamond prices have reached equilibrium”. Furthermore, U.S. Treasury Secretary Timothy Geithner recently confirmed the positive outlook for the state that the diamond industry is now in and points to a sign of the times to come; “The emerging confidence and stability of September 2009 is a far cry from the crippling fear and panic of September 2008.” The trends predicted in the near future, suggest a gradual climb to prices that would have been seen before the world was recession-ridden. IDEX predict “at some point, probably in late 2010 or early 2011, we believe that diamond prices inflation will recover to its historic trend line, reflecting annual inflation of 3-4 percent”.  In comparison to the figures from last year, it is evidential that the diamond industry has come a long way in the past 12 months. Investment guru Warren Buffett revealed, “I think the odds are very much against getting significantly worse”, in an interview with CNBC on September 16th this year.

In terms of where consumers stand in the stabilising and ultimately rising prices of diamonds on the horizon, the future seems bright.  Currently, diamonds can be found for up to 30 percent less than their usual industry worth. Thus, a purchased diamond will have a significant increase in value in times to come, once the trends in prices become customary.

The Christmas period sales are an ideal time in which these predictions can be tested. Compared to the figures from last year, a rise in sales this Christmas will signal the more positive times to come. The slight ease of the affects on the recession and the reassuring figures of the stabilising prices of diamonds will hopefully see an increase in sales, which will point to a subsequent trend in the next year, starting 2010.