RAPAPORT... The New York Diamond Dealers Club (DDC) announced that New York State Supreme Court Justice Michael D. Stallman dismissed the lawsuit against the DDC, which was initiated by David Abraham, the bourse’s former vice president. Dr. Martin Hochbaum, DDC’s managing director, commented, “The court’s decision affirms that the vote on our bylaws was conducted honorably and that there was no finding of wrongdoing by DDC or Jacob Banda. We regret that Banda is not here to share in the Supreme Court’s vindication of our position.” Banda, DDC’s former president, passed away in October 2009.
In a letter entitled “The Real Story,” Abraham warned DDC members not to be misled by Hochbaum’s statement that Justice Stallman found no wrongdoing. Abraham claimed that the judge denied his petition “because our bylaws are unenforceable as drafted — and nothing more.” Abraham concluded that he is considering what his next move will be.
Industry Players on Forbes’ Billionaires List
Forbes magazine published its annual list of the world’s richest people, including a number of executives involved in the diamond and jewelry industry. The list consists of 1,011 billionaires who have a combined net worth of $3.6 trillion, up from a total net worth of $2.4 trillion last year.
Warren Buffett of Berkshire Hathaway, which owns Borsheim’s Jewelry, Helzberg Diamonds and Ben Bridge Jeweler, was ranked as the world’s third-richest man with $47 billion, after coming in second place one year ago. Bernard Arnault of LVMH Moët Hennessy Louis Vuitton, whose jewelry and watch holdings include Tag Heuer, Zenith, Hublot, Dior Watches, FRED, Chaumet and De Beers Diamond Jewellers, jumped to number seven from 15 last year, with a net worth of $27.5 billion. Amazon.com’s Jeffrey Bezos moved up 25 spots to number 43 on the list, with a net worth of $12.3 billion.
Francois Pinault and family of the retailer PPR, which owns the Gucci group, were rated number 77 for having a net worth of $8.7 billion. Nicky Oppenheimer, De Beers chairman, and his family have a net worth of $5 billion and were ranked number 154 on the list, down from number 98 in 2009. High-end jeweler Laurence Graff dropped 69 spots to number 374, with a net worth of $2.5 billion. Beny Steinmetz of the Steinmetz Diamond Group was assigned number 488, with a net worth of $2 billion, while diamond mogul Lev Leviev fell 187 spots to number 655, recording a net worth of $1.5 billion. Jack Ma of the online retailer Alibaba Group was ranked number 828, with a net worth of $1.2 billion.
IDI Launches 2010 Campaign
At the Israel Diamond Institute Group of Companies’s (IDI) annual press lunch, held at the Baselworld show, Eli Avidar, IDI’s managing director, unveiled IDI’s 2010 strategic campaign, “Responsibility is Good. Business.” Avidar called for enhanced responsibility in four areas: manufacturing, marketing, customer service and credit. “Diamantaires must not be a party to actions that artificially send rough prices soaring,” he stated.
In addition, Avidar noted, the Israeli diamond industry needs to responsibly seek out new markets and develop the traditional ones. He also highlighted the importance of corporate social responsibility (CSR) and environmentally responsible practices. Finally, Avidar stated, as 2010 chair of the Kimberley Process (KP), Israel must “strengthen and consolidate” the KP to maintain its relevance and vitality.
India’s Production Capabilities Expand
The Export-Import Bank (Ex-Im Bank) of India’s recent study on the country’s gems and jewelry sector revealed that India has been increasingly building its ability to produce diamonds in all sizes and qualities. “Indian Gems and Jewellery: A Sector Study” credited the company’s abundant low-cost workforce and advanced technologies, including the use of information technology (IT) in diamond centers to enable the seamless flow of information. The study’s authors noted that progress was still required in raw-material sourcing, diamond processing technology, dynamic design and product development and sustainable market-entry approaches.
Article from the Rapaport Magazine - April 2010. To subscribe click here.