A $2.5 Million, 10-Carat Pink Diamond At Edmonton Jewelry Store

An Edmonton retail jeweler will showcase a 10-carat fancy light purplish pink diamond from April 13-17. The radiant cut diamond with SI1 clarity is owned by a private collector and is available for $2.5 million CAD ($2.52 million).

The diamond will be displayed at the Birks jewelry store at Manulife Place, 10180 – 101st St., part of the Birks Canadian fine jewelry retail chain.

The pink diamond originated from a rare rough stone of 21.35 carats found in a South African mine, making it one of the world’s largest pink diamonds ever mined, Birks said in a statement. Because of its large size, it took 3½ months to cut and polish the stone. The pink diamond, with its purple and pink hues, is set on a platinum ring.

Pink diamonds of this size, as regular readers of this blog know, are extremely rare. The auction house Christie’s – one of the most important resellers of diamonds in the world—has reportedly auctioned 18 polished pink diamonds over 10 carats in its 244-year history. The South African 10-carat stone, made from a 21.35-carat rough stone, is even larger than Australia’s biggest rough pink diamond weighing 12.76 carats, recently unearthed at its Argyle mine, the most famous mine in the world for pink diamonds.

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Gem Diamonds 2011 Revenues +49%

Gem Diamonds reported record earnings in 2011 driven by higher rough prices and increased production at its high-value Letšeng mine in Lesotho. Revenues grew 49 percent year on year to $395.6 million and attributable net profit more than tripled to $67.7 million. Revenues include about $67.4 million worth of diamonds from the company’s downstream activities. Cost of sales increased 11 percent to $196.8 million.

“[The year] 2011 saw several exceptional diamond discoveries at Letšeng, including the 550 carat Letšeng Star (pictured), and we continue to see strong demand for our high quality diamonds from both developed and emerging markets, despite the backdrop of challenging times for the global economy,” said Clifford Elphick, the chief executive officer of Gem Diamonds.

Gem Diamonds noted that rough diamond prices rose sharply in the first half of 2011 but fell by about 30 percent in the third quarter due to the deepening Eurozone financial crisis and tightened bank liquidity, before stabilizing in the fourth quarter. Prices for rough diamonds overall ended the year approximately 16 percent higher than at the end of 2010, the company reported.

Elphick explained that there has been some restocking in the cutting centers following the U.S. holiday season, which was reflected in the continued strengthening of prices at both the Letšeng and Ellendale sales held so far in 2012. He added that there will likely be some volatility in rough prices in the first half of 2012 given the global economic uncertainties and as the market goes through a period of consolidation after the exceptional growth experienced since the 2008 financial crisis.

“From the middle of 2012, based on current supply expectations, rough diamond prices are expected to improve,” Elphick said.

Sales at Letšeng rose 58 percent to $300.6 million during 2011. The company sold 107,700 carats from the mine as the average price of sales from the mine grew 29 percent to $2,776 per carat. Sales included the 550 carat Letšeng Star which was sold into a partnership arrangement for $16.5 million, where Gem Diamonds will benefit directly from the sale of the resultant polished diamonds.

Letšeng’s production increased 24 percent to 112,367 carats during the year. The mine launched its $280 million expansion project in January, designed to raise annual production to about 200,000 carats by 2014. 

Sales at Gem Diamonds’ Ellendale mine in Australia rose 15 percent to $89.4 million with the average price of the goods sold rising 54 percent to $731 per carat. The increase was driven by sales of Ellendale’s fancy yellow diamonds to Tiffany & Co, where the average price rose 53 percent to $4,409 per carat.

Ellendale’s production fell 28 percent to 120,302 carats in 2011. Gem Diamonds reported that processing challenges continued to be experienced at Ellendale and that the company continues to consider its options for the mine.

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India to Show More Loose Diamonds in Hong Kong

India's Gem & Jewellery Export Promotion Council (GJEPC) today announced that the Indian pavilion at the upcoming Hong Kong Jewellery Show would include an additional location that would feature leading loose diamond dealers.

Hong Kong is a premium destination for Indian gem and jewelry exports. Last year, $10.65 billion worth of Indian manufactured diamonds, gems and jewelry were exported to Hong Kong.

GJEPC Chairman Rajiv Jain observed, "The Hong Kong Jewellery Show has always been a great platform and once again, we hope to see fruitful results for our participants. China and India, the two eastern giants, are now a formidable force to reckon with. The GJEPC looks forward to witnessing the two giants take center stage globally in gems and jewelry."

Diamond Earrings

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