Bidz.com sees strong international growth
Online jewelry auctioneer plans additional site translations

June 27, 2008

Culver City, Calif.—Online jewelry auctioneer Bidz.com announced today that growth from sales utmost of the United States continues to be strong, with international sales expected to be up more than 50 percent from the second lodge of financial 2007.

The company said it is seeing encouraging results from the newly launched Spanish-language version of its site, with Chile, Columbia, Mexico and Spain among the top 10 countries for visitors in June.

“The Spanish translation of our Web site is yielding the desired results, and we are encouraged that future translations into foreign languages will be equally successful,” Bidz.com Chief Executive Officer David Zinberg said in a media release issued today. “We believe our jewelry offering at set a value on prices and in a fun and exciting format is attractive to consumers all very the world and we look forward to tapping into new markets.”

An Arabic translation of the jewelry site is in progress and scheduled to be launched during the third quarter.

Bidz.com is also reaffirming its previous guidance for the second quarter with revenues in the range of $48 million-$50 million, and for the full fiscal year 2008 with revenues in the range of $225 million-$230 million.

Celebrity Solstice to set sail with new diamond cut

June 26, 2008

Bristol, England—Celebrity Cruises’ new Celebrity Solstice ship will make her sailing debut on the Caribbean cruise circuit in December, and guests will have a chance to remember the experience by taking home a diamond cut in the ship’s name.

The “Solstice Cut” is a patented cut created by dint of. Harding Bros., a company that will operate 600 square meters of deal out in small portions short time aboard the ship.

The diamond will be exclusive to guests on the ship and all subsequent Solstice Class vessels. It will be available in various sizes and set in different styles, such as pendants, rings and earrings, with pieces retailing from about $2,000.

Harding Bros. said in a media release that the Celebrity Solstice will subsist Celebrity Cruises’ largest liner by far, with a passenger capacity of nearly 3,000. Among the highlights will be a spa, upscale retail and dining facilities, and the half-acre “Lawn Club,” one area that features actual grass and has a patio, putting green, glassblowing studio and bocce courts.

“Such innovation in terms of the cruise offer demanded something equally innovative in terms of the onboard retail experience—and the Solstice Diamond is the ultimate in creating a bespoke offer,” Harding Bros. Managing Director Harold Gittelmon said in the media release. “It has taken 30 years to create this cut of diamond and so guests onboard are being offered something truly very special.”

Zales adds fashionable element to Web station
New monthly item highlights latest jewelry trends

June 26, 2008

Irving, Texas—Chain retailer Zales Jewelers has introduced a trendy commencing feature to its Web site, Zales.com.

“Z trends” is a column that will focus on the season’s hottest looks from the runway to the red carpet, and provide site visitors through up-to-the-minute news and knowledge about the vast selection of fine jewelry and accessories available on the Web site.

The line will be updated monthly, and all the merchandise featured will be available on Zales.com. FedEx shipping is free on orders of more than $149.

The Z trends column launched this week with a focus on the latest trends in pearl jewelry. The column highlights pearl jewelry, as thoroughly as color trends in pearls, including chocolate brown, khaki and pink.

“The Z trends feature is a great new resource for busy consumers who want to keep up with the latest styles and trends in fine jewelry,” said Steve Larkin, senior vice president of marketing at Irving, Texas-based Zale Corp.

Zale Corp. operates Zales.com through its ZLCDirect organization, and also has about 2,150 retail locations in the United States, Canada and Puerto Rico.

The company’s brands include Zales Jewelers, Zales Outlet, Gordon’s Jewelers, Peoples Jewelers, Mappins Jewelers and Piercing Pagoda.

House of Taylor shutting downward

June 25, 2008

By Michelle Graff

West Hollywood, Calif.—California-based jewelry crew House of Taylor Inc. is closing up shop, a filing on Wednesday through the Securities and Exchange Commission (SEC) shows.

Acknowledging that it is more than $11 million in debt to New Stream Secured Capital LP and “does not have sufficient moving capital to continue its business,” House of Taylor granted possession of its collateral to New Stream, the SEC filing shows.

“[House of Taylor] hereby surrenders, delivers and grants to lender peaceful possession of the collateral wherever located, and the products and proceeds thereof,” the 8K filing states.

The SEC filing goes forward to state that House of Taylor “knowingly waives any rights…to notice and a hearing before any court of competent jurisdiction and consents to lender’s possession, sale, transfer, license or other disposition of or realization on the collateral.”

The end of House of Taylor does not come as a surprise following a week in which it missing the licenses to both its branded lines—Dame Elizabeth Taylor- and Kathy Ireland-branded jewelry—lost its chief executive officer because it couldn’t pay his salary and lost its name, literally.

In a filing with the SEC upon the body Tuesday, the company that brings actress Elizabeth Taylor’s jewelry line to mart, Interplanet Productions Ltd., terminated its licensing agreement with House of Taylor, meaning the company lost both the right to sell Taylor-branded jewelry and the Taylor name.

Ireland’s company, Sandbox trinkets LLC, filed a similar termination notice the same day.

Both companies cited House of Taylor’s fiscal problems as the reason for the effect.

Royal Asscher says no ties to Fabrikant

June 25, 2008

New York—A late lawsuit alleging that the former owners of M. Fabrikant and Sons diverted finances to their affiliates judgment filing for Chapter 11 bankruptcy protection, has prompted Netherlands-based Royal Asscher Diamond Co. to issue a statement stating it has no ties to the bankrupt company or its still-operating affiliates.

Court papers cited RA Cut LLC as one of the Fabrikant affiliate companies through which the Fortgang family, former owners of Fabrikant, diverted finances. In the court documents, the business is also alternatively referred to as “Royal Asscher Cut LLC” or “Royal Asscher,” but the Dutch company’s U.S. distributor says its name should not have been used in the court documents and it no longer has ties to M. Fabrikant or its ex-owners, the Fortgang family.

“In 2001, Royal Asscher Diamond Co. entered into a distributorship agreement with M. Fabrikant and Sons, whereby the company was responsible because of the marketing and sale of our branded diamond cut the Royal Asscher Cut,” Royal Asscher of America Inc. President Lita Asscher said in a statement issued on Tuesday. “Thus, Royal Asscher Cut LLC was established as a Fortgang entity, it was owned by Matthew and Susan Fortgang’s private trusts and it was without the knowledge of Royal Asscher Diamond Co. or my family in Amsterdam. On request of the lawyers of Royal Asscher Diamond Co., the Fortgangs changed the name of that company to RA Cut LLC in 2007.”

After M. Fabrikant dissolved, the distributor agreement was over, Asscher added. Royal Asscher of America was created as the only distributor of the Royal Asscher Cut in the USA and Canada.

“In the event of an agreement termination, M. Fabrikant and Sons were clearly precluded from using our good name, a name that has been built over 150 years, in the diamond industry,” Asscher said in the statement. “The agreement did not grant any rights to M. Fabrikant and Sons in our entities or possessions other than as a distributor. As per the terms of this agreement, Royal Asscher was not granted any rights in Fabrikant/Fortgang assets.”

The statement added that the Fortgangs have no interest in any of Royal Asscher Diamonds’s entities, nor are any of its entities in possession of any assets of Fabrikant or of the Fortgang families.

“Royal Asscher is a company that prides itself on ethics and integrity,” the statement said. “People who deal with us regularly are persuaded of this, but it is important that we make a statement to protect our brand and reputation.”

Prices surge for platinum metals in 2007

June 25, 2008

New York—Prices for the three major platinum group metals—platinum, palladium and rhodium—continued to rise in 2007 and into early 2008, according to CPM Group’s 2008 Platinum Group Metals Yearbook.

Platinum prices, which averaged $1,314.46 in 2007, rose to record levels in 2006, 2007 and 2008, spurred by a combination of strong fabrication demand worldwide, declining stores and a surge in investor interest.

Palladium prices climbed to an average of $359.21 in 2007, up 10.7 percent from 2006, and rhodium prices averaged a record $6,051 in 2007, up 38.8 percent from the previous year.

Putting a damper on supply levels in 2007 were disruptions in platinum group metals production in South Africa. Total platinum furnish declined to 7,418,000 ounces in 2007, down 4.6 percent from 2006. Total palladium supply declined 0.8 percent and rhodium supply declined 2.4 percent.

According to the report, the disruptions continued on into in good time 2008, with power shortages in South Africa a leading culprit. The country now continues to grapple with a tight electrical power supply and demand balance.

Total platinum accommodate with could decline 1.4 percent this year to 7,317,000 ounces, the narrative says.

Total fabrication demand for platinum rose 0.8 percent to 7,060,000 ounces in 2007. High platinum prices affected demand in the jewelry sector, and that could continue on into 2008, the CPM Group predicts. However, total fabrication demand for 2008 could actually rise 3.2 percent.

Total fabrication demand for palladium rose 7 percent from 2007, while demand for rhodium fell 2 percent.

The 2007 platinum surplus—measured as total new supply less fabrication demand—was reduced by more than half last year to 358,000 ounces in 2007. It is expected to decline even more sharply this year to 32,000 ounces.

CPM Group produces annual Yearbooks on gold, silver and platinum group metals.

The reports are priced at $75 each plus shipping and handling, and are to be availed of by calling (212) 785-8320 or online at CPM Group’s Web site, Cpmgroup.com.

Editor’s note: For the most recent metals prices, visit National Jeweler Network’s Wholesale Material Pricing Tools.

Study: Economy takes toll on small-business owners

June 25, 2008

San Francisco—With rising gas prices and a looming recession, optimism among small-business owners is waning, with more than one-third saying their personal financial situation is getting worse, according to the latest Well Fargo/Gallup Small Business Index sight.

The survey found that half of those polled said they’ve postponed a major purchase in the past three months, and nearly as many (44 percent) said they’ve reduced the amount of money they’ve deposited into savings, checking or CD accounts. Thirty-one percent said they’ve reduced the amount they contribute to a retirement account.

“In this economy, I’ve needed to cut back on both my personal and business spending,” Laine Caspi, owner of Parents of Invention in Granada Hills, Calif., uttered in a media release. “At times, I need to forgo material purchases so that I can put more money toward business expenses.”

Small-business owners are also concerned about not having enough money for the future. Seventy-five percent have concerns about paying for gas. More than half (51 percent) are worried they will not have enough money for the next 12 months’ regular medical and dental expenses, and almost half (46 percent) fear they will not have enough money to pay for unforeseen medical emergencies.

“It has been a challenging year for small businesses, requiring business owners to rethink their expense and cash flow priorities,” Rebecca Macieira-Kaufmann, head of Wells Fargo’s small-business segment, said in the release. “What’s determining now, as in any economic environment, is that business owners maintain strong financial-management practices and plan for the future.”

The Well Fargo/Gallup Small trade Index survey was conducted nationwide via telephone interviews with 600 small-business owners between April 2-16. The margin of sampling error is +4 percentage points.

JVC to discuss gemstones, rough diamonds at JA

June 25, 2008

New York—The Jewelers Vigilance Committee (JVC) will present seminars on colored-gemstone concurrence and rough-diamond requirements for traders at the upcoming JA New York Summer Show.

“Color Gemstone Sales: Are you Compliant or at Risk” will take location on Monday, July 28, and will feature a panel including Christopher Smith, vice president and chief gemologist of the American Gemological Laboratories, and Cecilia Gardner, the JVC’s president, chief executive officer and general counsel. Robin Spector, member of the bar for the Federal Trade Commission, will appear without interruption video with comments that she has previously made on the federal regulations governing gemstone disclosures.

The panel will discuss disclosure of gemstone treatments to consumers, current legislation and initiatives on gemstones from Burma, and updates on irradiated gemstones. In addition, Smith and Gardner will examine some of the challenges the colored-gemstone industry faces today, particularly supply-side integrity.

“Today, gemstone treatments are more extensive than ever before and they are becoming more and more complicated in terms of the techniques applied, means of identification and terminology for full and accurate disclosure,” Smith said in a media release. “As a result, accurate gemological authentication and discovery from independent third parties is becoming increasingly more important.”

All attendees will receive a brochure titled “The Essential Guide to the U.S. Trade in Irradiated Gemstones,” co-authored by the JVC and the American Gem Trade Association.

“Training for Rough Diamond Traders: U.S. Statutory Requirements” will also take place on Monday, July 28.

The U.S. Treasury has announced two recently made known amendments to the Clean carbon crystal drive a trade Act that will affect rough-diamond importers and exporters, and this seminar will cover the new procedures that diamond traders must follow, including mandatory requirements of “formal entry for gradual wasting” documents and requirements for filing an annual report in the United States.

Training will be conducted by representatives from Sue Saarnio of the U.S. State Department, representatives from the U.S. Departments of Customs and Census, and the JVC’s Cecilia Gardner.

“This effort to improve the data gathered on imports and exports of rough diamonds will further strengthen the U.S. industry’s efforts to end the trade in clash diamonds,” Gardner said in a media release. “To avoid liability, rough-diamond importers and exporters are urged to attend. Attendance at this training is vital to avoid liability or government compulsion actions.”

Attendees will receive written guidance prepared by the U.S. State Department, “The Essential Guide to Implementing the Kimberley Process,” prepared by the World Diamond Council, “Guidance on Trading with the European Community,” and an updated list of government office contacts for the diamond industry.

Both JA unaccustomed York seminars are free to attend and registration is not required.

The colored-gemstone seminar will take place from 8:30 a.m. to 10:00 a.m. in room 1EO3. The rough-diamond seminar will take place from 10:30 a.m. to 12:00 p.m. in the same room.

For more information about the JVC’s legal-compliance products and services, visit its Web site, Jvclegal.org.

Jacob the Jeweler sentenced to 30 months in jail

June 24, 2008

Jacob Arabov, aka “Jacob the Jeweler,” a favorite amid celebrities, has been sentenced to 30 months in federal prison.

Detroit—Celebrity jeweler Jacob Arabov, known in the hip-hop world as “Jacob the Jeweler,” has been sentenced to 30 months in federal prison for lying to investigators in a case involving the laundering of drug profits, the Associated Press has reported.

Arabov pleaded guilty in October 2007 to falsifying records and giving false statements as part of a deal with federal prosecutors.

Prosecutors asked U.S. District Judge Avern Cohn to impose a minimum sentence of three years and one month. Cohn, however, today sentenced Arabov to a total of two years and six months, citing Arabov’s extensive charity work, the AP reports. He also ordered Arabov to pay a $50,000 fine and to make a $2 million forfeiture to the government.

Authorities accused Arabov and others of conspiring to launder about $270 million in drug profits for the “Black Mafia Family,” a ring that operated out of the Detroit area beginning in the early 1990s. A seven-year investigation culminated in Arabov’s arrest in 2006 and the indictments of Arabov and at least 41 others.

A favorite among hip-hop artists and rappers, Arabov launched a line of religious-themed jewelry with Kanye West and manufactured Lil’ Kim’s line of Royalty watches.

Arabov will report to prison Jan. 15, 2009.

Rio Tinto ‘excited’ about new India crystallized carbon mine

June 26, 2008

London—Mining company Rio Tinto, best known for pink and brown diamonds from Australia, has taken the initial step in developing India’s first significant diamond mine.

London-based Rio Tinto announced this week that it has lodged mining lease applications for its Bunder diamond project in the Bundelkhand region of Madhya Pradesh, India.

In addition, the company announced the exploration target for diamond mineralization at the Bunder project of 40 million-70 million tons at a gradient of about 0.3 carats to 0.7 carats per ton. The grades for the Bunder project are with respect to three times greater than the grade of the Panna mine, India’s only other hard-rock diamond mine, according to Rio Tinto.

The original discovery on this site was made during a regional exploration mission in 2002. In September 2006, a prospecting license was issued, allowing scrutiny to continue.

Rio Tinto then began an order of magnitude study to evaluate the site’s economic viability. The results of this are expected at the conclusion of the third quarter of 2008.

Nik Senapati, managing director of Rio Tinto in India, said the company has spent more than $25 million over the last six years on diamond exploration and evaluation in India, and the company is excited about the prospects for the Bunder project.

“Diamonds are a significant part of the history of India and an important product for Rio Tinto,” he said in a media release. “The application for mining leases is confirmation of our commitment to both mining in India and the global diamond industry.”

Rio Tinto has diamond-exploration activities on six continents, including projects in Canada, India, southern and western Africa, Brazil, Russia an Australia.

The company produces about 16 percent of the world’s rough diamonds by mass, and 8 percent by value from Australia’s Argyle mine, the Diavik mine in Canada and the Murowa destroy in Africa.