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Consumer Confidence Slides Further
The decline experienced by the Consumer Board Confidence Index in August continued in September. The index now stands at 99.8, compared to 105.6 in August. The Present Situation Index fell from 130.1 to 121.7 from August to September, while the Expectations Index declined from 89.2 to 85.2.
The Consumer Confidence Survey – involving a sample of 5,000 U.S.
households – elicited negative responses about the state of the economy and labor market. The percentage of consumers stating that jobs are “hard to get” rose from 19.7 percent in August to 22.1 percent in September, while those saying that jobs are “plentiful” in the existing market fell from 27.5 percent to 25.7 percent. Those who found conditions to be “good” fell from 26.2 percent to 25.7 percent, and those saying conditions are “bad” rose from 16.3 percent to 17.9 percent.
Respondents who expect business conditions to worsen in the next six months rose from 10.2 percent to 11.8 percent. However, there was a very slight rise in the number expecting conditions to improve, from 15 percent to 15.6 percent.
United States Net Diamond Account RisesPolished diamond imports into the United States rose 10 percent to $1.66 billion in July 2007. In terms of volume, however, imports dropped 12.5 percent to 1,365,674 carats for the month. Prices rose to $1,220 per carat in July, compared with $968 per carat a year earlier.
The United States recorded a sharp increase of 23 percent in polished exports to $821 million for the month. This surge helped keep net polished imports – imports less exports – flat at $845 million.
For the first seven months of the year, polished imports have risen 7 percent to $10.46 billion and polished exports are up 13 percent to $6.08 billion. Net polished imports were flat at $4.37 billion.
For July, rough imports rose 30 percent to $69 million and rough exports rose 22 percent to $33 million. Net rough imports – imports less exports — increased 35 percent $35 million.
For January through July, rough imports have risen 8 percent to $492 million, while rough exports were up 31 percent to $282 million. Net rough imports dropped 13 percent to $207 million.
The net diamond account for the United States in July – net polished plus net rough – rose 1 percent to $880 million. For January through July, the net diamond account declined 1 percent to $4.58 billion.
India’s Summer Exports SurgeProvisional data released by the Gem & Jewellery Export Promotion Council (GJEPC) show that India’s polished diamond exports rose 43 percent to $1.31 billion in August. Rough exports increased 52 percent to $47.72 million.
India’s cut and polished diamond exports grew 37 percent to $1.18 billion in July. Rough exports in the same month grew 33 percent to $46.25 million.
For August, polished imports rose 187 percent from one year ago, to $473.76 million, bringing India’s net polished exports up 11 percent to $843.24 million. This performance followed a strong July in which polished imports rose 181 percent to $481.43 million.
Rough imports in August grew 116 percent to $682.21 million, on the heels of a busy July in which rough imports increased 41 percent to $1.06 billion.
India’s net diamond account for January through August diminished 90 percent to $137.98 million.
India’s Net Diamond Account SlipsIndia’s cut and polished diamond exports grew 31 percent to $1.038 billion in June, The Gem & Jewellery Export Promotion Council (GJEPC) reported. During the month, cut and polished imports shot up 135 percent to $378.21 million. India’s net polished exports (polished exports less imports) rose 4.8 percent to $659.96 million.
Rough diamond imports in June climbed 36 percent to $946.15 million, and rough exports dropped 9 percent to $46.24 million. India’s net rough imports (rough imports minus exports) rose 39 percent to $899.91 million. India’s net diamond account (net polished exports less net rough imports) moved into the red in June, hitting $239.96 million, after a positive $17.26 million in June 2006.
Israel’s Polished Exports Down
Israel’s diamond industry did not escape the August slump, as polished diamond exports dropped 13 percent to $455.74 million, according to figures released by the country’s Ministry of Industry, Trade and Labor. Polished exports to the United States dropped 7 percent to $2.49 billion.
But during the same month in which the country’s net polished exports – polished exports minus imports – fell 46 percent to $150.3 million, Israel’s polished imports rose 25 percent to $305.44 million. Also in August, Israel’s rough diamond imports increased 169 percent to $396.52 million, while rough exports climbed 88 percent to $251.07 million and net rough imports – rough imports less exports – soared tenfold to $145.45 million.
The country’s net diamond account for August – net polished exports less net rough imports – dropped 98 percent to $4.85 million. Year-to-date polished exports increased 6 percent to $4.69 billion, as polished imports climbed 10 percent to $2.65 billion, pushing net polished exports to $2.04 billion. That last figure is 1 percent higher than in the same eight-month period a year before.
From January through August, rough imports increased 19 percent to $3.3 billion. In the same period, rough exports rose 29 percent to $2.26 billion, and net rough imports grew 2 percent to $1.04 billion. Israel’s net diamond account fell by 1 percent to $1 billion.
Belgium’s August Net Diamond Account UpIn August, Belgium’s polished diamond exports rose 65 percent to $480.71 million, according to figures released by the Antwerp World Diamond Center (AWDC). The 23 percent rise in the country’s polished imports, to $708.26 million, did not take net polished exports – polished exports less imports – out of the red; they stood at $227.55 million, which nevertheless represents a 20 percent improvement over 2006.
Belgium’s year-to-date polished exports have risen 13 percent to $6.86 billion, while year-to-date polished imports have grown 9 percent to $6.48 billion.
August rough imports reached $860.24 million, a 41 percent increase, while rough exports hit $806.1 million, a 144 percent jump. Belgium’s net rough imports – rough imports minus exports – totaled $54.14 million, an 81 percent drop.
Year-to-date rough imports have grown 14 percent to $6.76 billion, while rough exports are up 26 percent to $7.63 billion.
Although the country’s August net diamond account was in the red, at $281.69 million, this figure showed a 50 percent improvement over August 2006. As for the year-to-date net diamond account, it grew 443 percent to $1.253 billion.
South Africa’s Gold Output FallsSouth Africa’s diamond industry may be thriving, but the country’s gold production fell 7.5 percent to 63,517 kilograms in the second quarter of 2007. Gold production was just slightly up – by 1.1 percent – compared to the first quarter of the year, according to figures released by the South African Chamber of Mines.
Gold Production Up in 2007The Gold Survey 2007 published by precious metals consultancy GFMS reports some good news: price volatility dropped, and gold jewelry production rose 23 percent, during the first half of this year. A driving force behind this surge is the demand for jewelry in India; this demand rose by nearly 80 percent over the six-month period.
Aber Profits DownThe Aber Diamond Corporation reports a 41.4 percent fall in net earnings to $20.1 million for the second quarter of its fiscal year 2008.
For the three months ended July 30, 2007, sales increased 24 percent to $173.3 million. Retail sales at Harry Winston outlets rose 41 percent to $68.2 million.
Collectors Universe Revenues DownThe fiscal year sales of Collectors Universe, Inc., the parent company of the GCAL and AGL diamond and gemstone grading services, rose 10 percent to $40.5 million. But the company reported a loss of $515,000, representing a drop from a profit of $3.7 million in fiscal 2006.
During the company’s fourth quarter, sales dropped $100,000 to $10.7 million. For the three-month period ended June 30, Collectors Universe’s gross profit margin dropped 10 percentage points to 49 percent.
| Date | Gold London PM | Platinum PM | Silver |
| 8/28/07 | 666.00 | 1255.00 | 11.8300 |
| 8/29/07 | 664.25 | 1260.00 | 11.8000 |
| 8/30/07 | 666.00 | 1266.00 | 11.8600 |
| 8/31/07 | 672.00 | 1268.00 | 11.9500 |
| 9/3/07 | 672.00 | 1268.00 | 12.1000 |
| 9/4/07 | 678.75 | 1270.00 | 12.0950 |
| 9/5/07 | 680.25 | 1273.00 | 12.2150 |
| 9/6/07 | 688.15 | 1281.00 | 12.2450 |
| 9/7/07 | 701.00 | 1289.00 | 12.5700 |
| 9/10/07 | 703.50 | 1292.00 | 12.5600 |
| 9/11/07 | 704.15 | 1292.00 | 12.5700 |
| 9/12/07 | 706.00 | 1299.00 | 12.6600 |
| 9/13/07 | 704.50 | 1297.00 | 12.4700 |
| 9/14/07 | 716.35 | 1294.00 | 12.5000 |
| 9/17/07 | 719.00 | 1298.00 | 12.5900 |
| 9/18/07 | 714.75 | 1300.00 | 12.9600 |
| 9/19/07 | 725.15 | 1306.00 | 12.9950 |
| 9/20/07 | 734.50 | 1323.00 | 13.1700 |
Article from the Rapaport Magazine - October 2007. To subscribe click here.