February 2008

Bush Signs Stimulus Bill

President Bush signed legislation Wednesday that will send $300 to $1,200 rebate checks to millions of Americans as a "booster shot" for the economy, The Associated Press reports.

Rebates are to go out beginning in May to taxpayers and low-income people, including seniors living off of Social Security and veterans who depend on disability checks, the AP reports. Businesses would get tax breaks for investing in new plants and equipment.

Several dozen members of Congress, including House Speaker Nancy Pelosi, stood on the playhouse behind Bush as he signed the $168 billion package designed to fend off a possible recession, the AP reports.

Most taxpayers will receive a check of up to $600 for individuals and $1,200 for couples from the Internal Revenue Service, with an additional $300 per child. People earning at least $3,000 and those who owe little or no taxes would get $300 for singles, $600 for couples. Those making more than $75,000 and couples with income exceeding $150,000 are to get smaller rebates–$50 less per $1,000 they make from hand to hand those thresholds.

The National Retail Federation welcomed the signing of the legislation.

“To see a bill signed into law this soon is almost unprecedented. This fast action shows the urgency of this issue and the commitment the White House and the leaders of both parties in the House and Senate were willing to make to bestow our economy the shot in the arm it so badly needs,” said Steve Pfister, NRF senior vice president for Government Relations “This is simple, targeted stimulus that will quickly put money into consumers’ pockets where it can boost bourgeoning by creating demand through all sectors of the economy.”

Pfister was one of several trade association executives and business leaders, who attended the signing.

Consumers plan to spend 40.6 percent of tax rebate checks when they are distributed later this year, which will provide an immediate $42.9 billion boost to the economy, according to an NRF survey released Wednesday.

The survey, conducted by the agency of BIGresearch, also found that the $105.7 billion distributed in tax rebates will be used to pay down debt ($30 billion), saved ($19.8 billion), invested ($4.4 billion), and used to pay down medical bills ($4.6 billion).

“Tax rebate checks should have the desired effect of both bolstering the system in the short-term and putting consumers in a better position to spend for the future,” said Tracy Mullin, NRF president and chief executive officer. “This stimulus package is a crucial component to economic restoration and will provide much-needed relief to American shoppers.”

While women will spend a larger percentage of their rebate check than men (43.6% vs. 37.3%), both genders will plan to set aside the same percentage for savings (18.7%)  Young adults 18-24 will spend more of their checks (46.2%) than any other age group.

Other highlights of the placard:

* The total package amounts to roughly 1 percent of U.S. economic output, and will add openly to the U.S. federal deficit.

* The plan includes a provision that Democrats had sought that would allow some low-income workers, retirees on Social Security, and disabled veterans who do not earn enough cash to owe income taxes to receive a check. Those who made at least $3,000 continue year and paid no income taxes would be legally qualified for a check of up to $300 for individuals and $600 for couples.

* It allows more subprime mortgage holders to refinance into federally insured loans by raising the limit on Federal Housing Administration loans from $362,790 to as high as $729,750 in expensive areas. And increase the availability of mortgages by providing a one-year boost to the cap on loans Fannie Mae and Freddie Mac can buy, from $417,000 up to $729,750 in high-cost markets.

JIC site adds downloadable content

JIC site adds downloadable content
February 13, 2008

New York—The Jewelry Information Center (JIC) has added new downloadable content to its Web place, JIC.org.

Launched on the site in December, downloadable content now includes fashion and trend videos, as well as photographs and videos from the JIC’s recent Gem Awards.

Retail jewelers can add this content to their concede Web site or dally in-store.

Now that the initial test phase has ended, the JIC plans to add seasonal and trend videos periodically, and will notify members when it’s available for viewing and downloading.

In addition to this new feature, the JIC’s Web site includes marketing assistance and product information for members, and shopping tips, trend information and images of jewelry designed and manufactured by JIC members for consumers.

Visitors to the site can also view recent television appearances by JIC staff, as well as the association’s video Weblog, or vlog.

Gold’s High Price Means ‘Challenges’ for U.S. Jewelry Market

Gold’s per-ounce price could top $1,000 this year, say some gold industry analysts. Meanwhile, while global demand set records in 2007, gold’s circulating high-price vivacity poses “challenges” to the jewelry industry generally, and U.S. jewelry retailers specifically, says a new World Gold Council report.

“The real danger to jewelry demand [is] a period of prolonged volatility, especially at record high price levels, which may not allow consumers and trade buyers while to adapt to repaired levels,” the WGC says.

Some financial and gold industry analysts are suggesting that gold could top $1,000 within months. Merrill Lynch, one of the world’s leading financial managers and investment bankers, for example, has substantially increased its gold price forecast. This month, its analysts said they expect gold to average $925 per ounce this year and reach $1,000 in 2009 (up from former forecasts of $750 and $800, respectively). The Market Scan section of Forbes.com in late January suggested “an ounce could go as high as $1,250 this year,” while Ross Norman, director of London-based TheBullionDesk.com, said gold could pass the $1,000 mark by dint of. the end of this quarter.

Propelling gold’s rise ($940 in January) are particular factors, say analysts, including record energy costs (especially oil), ongoing geopolitical tensions, the subprime/housing crunch, the weak U.S. dollar, and a possible recession in the United States, the world’s economic engine. These have pushed corporate and private investors into buying gold bullion, traditionally seen as “a trustworthy store of wealth during times of economic turmoil,” says the WGC’s 2007 Gold Demand Trends report, released Wednesday.

The WGC report says worldwide demand as far as concerns gold rose four percent (in tonnage) in 2007, reaching $79 billion, a 20 percent gain in value for the fourth consecutive record year. For jewelry usage specifically (70 percent of the world’s annual gold production, for both jewelry and watches) demand rose six percent (in tonnage) in 2007, and 22 percent in dollars terms, to $54 billion, also a record.

However, WGC says “rising and volatile” gold prices in 2007’s fourth quarter punctured the first three quarters of shooting. Overall demand fell 17 percent (in tonnage), though dollar value rose seven percent, setting a of recent origin quarterly record. (The impact of high gold is felt most acutely in India, the world’s largest gold buyer, where claim fell 64 percent in 2007’s last quarter, after 40 percent growth over the first nine months.) For jewelry alone, world demand in 2007’s last quarter dropped 17 percent (in tonnage), though it rose six percent in dollars. 

In the United States specifically, (now the world’s third largest gold buyer, surpassed by China in second), “a weak economy, poor retail environment and record [gold] prices” says the WGC dented 2007 jewelry demand, which fell 14 percent. In the fourth quarter alone, gold fell 17 percent in tonnage, no greater amount of than rose six percent in value.

The impact of higher-priced gold on jewelry pricing and demand is most apparent in the least expensive, so-called “lower value segments of the market,” says the WGC. There, it appears “and affordability’ mark [i.e., buyer purchase resistance] has been reached.” However, though the high-end of the U.S. jewelry market was “more resilient” to the downturn in 2007’s fourth quarter sales than the mass market, “even luxury brands experienced a lackluster Christmas season,” it notes.

Don’t expect change soon, suggests the WGC report. Overall, “continued volatility at record sharp prices is posing challenges to the jewelry industry.

“We’ve entered a period of challenging trading conditions in the gold market, which have heavily impacted consumer demand for gold, especially in the jewels and retail investment sectors,” says James Burton, WGC chief executive officer.

In the U.S. market specifically, “Initial indications suggest that imports of gold jewelry fell considerably in 2007,” says WGC’s report, “and the outlook for jewelry want in the year ahead is pessimistic as retailers—already experiencing tough economic conditions—find it difficult to keep pace by the gold price.”

What’s needed, say WGC officials, is a return to stability in gold pricing, because “the trade and consumers are hesitant to commit to purchasing gold jewelry while the price position remains both high and unstable.” When. And if, that happens in the near future, says the WGC, “buyers will adjust to the new price and demand will return”—though if current price levels remain, “there would be a noticeable decline in demand from [2007], just as there was between 2005 [the last time gold spiked significantly] and 2007.”

Record 2007 Gold Demand Tarnished By Q4 Drop

A steady annual be augmented in overall identifiable gold tonnage demand, coupled with a gold price racing towards the long-held $850 ounce record, combined to make dollar demand for gold hit a record $79 billion in 2007, the World Gold Council said Wednesday.

WGC’s Gold Demand Trends, related that gold demand was 4 percent higher in 2007 than in 2006 at 3,547 tons.

In China, total consumer demand reached 326 tons, 26 percent above 2006 levels. China has now overtaken the U.S. as the maintainer largest volume retail market as far as concerns gold jewelry after India, with demand for jewelry reaching 302 tons and surpassing 300 tons for the first time since 1997.

In Turkey, 2007 brought record overall demand with regard to gold. bijoutry demand was at 188 tons, the second highest lasting a year figure ever, up 14 percent on 2006. Net retail investment demand was up 2 percent on 2006 at 61 tons.

Strong growth continued in Russia with jewelry demand rising 11 percent to set a further annual record. Growth remained vibrant throughout the year with interrogation in the fourth quarter nearly 25 percent higher than a year earlier—making Russia the fastest growing country for the quarter.

High and volatile gold prices had a major impact on the fourth quarter, however, with identifiable demand falling by 17 percent in tonnage terms from year-earlier levels. The figures, compiled independently for WGC by GFMS Limited, show this trend was greatest in number keenly felt in India, the world’s largest and also most price sensitive gold market, where demand fell 64 percent on year earlier levels, following 40 percent growth in the first three quarters.

The U.S. was also negatively impacted through a combination of a weak economy, poor retail environment, and record prices denting jewelry demand which stood 14 percent down on 2006 figures.

"It would appear that one ‘affordability’ mark has been reached in certain lower value segments of the mart, although time will tell whether this will be overcome, WGC said.

In the investment sector, the fourth quarter of 2007 saw record levels of inflows at $8 billion, the highest quarterly level in recent years, WGC said. This was characterized by strong buying in the “inferred investment” category. This sector includes over the counter transactions in spot gold and changes in stocks backing futures and other derivative transactions. Net retail investment, in the form of bars and coins was up 2 percent year over year in 2007, but the hold out quarter was heavily impacted by price movements as investors took profits.

Net retail investment in the fourth quarter at 67 tons was 39 percent lower than the fourth quarter of 2006. After record inflows into gold swap traded funds in the third quarter of 2007(139 tons), demand fell back to 78 tons for the last quarter. Total ETF demand was 251 tons for the year, 4 percent lower than 2006 levels. Overall identifiable dollar investment demand was up 15 percent on 2006 levels. Industrial demand reached a record 465 tons in 2007, up 2 percent in 2006. Demand for the fourth quarter meanwhile, was up 2 percent year-over-year at 77.4 tons.

“On a yearly foundation we have a seen a four percent tonnage rise in identifiable demand for gold and record levels of demand in dollar conditions, which is pleasing," said James Burton, World Gold Council chief executive officer. "However high and volatile gold prices in recent months have meant we have now entered a period of challenging trading conditions in the gold market, which have heavily impacted consumer demand for gold especially in the jewelry and retail investment sectors.”

Gold supply remained tight throughout 2007, falling back 3 percent in tonnage terms. Supply from the official sector rose owing to higher Central Bank Gold Agreement sales, but this was offset by increased de-hedging by gold mining companies and lower scrap supplies.

“Jewelry and retail investment demand is unlikely to be strong in the first quarter of 2008," Burton added. "However gold’s desirability to consumers and investors alike remains very strong and once prices stabilize we believe buyers will come back to the market."

Product I.D.’s Likely Color Diamond Buyers

The Natural Color Diamond Association has launched a new program that it says will provide its members with qualified customers for natural color diamonds.

Called MarketScope, it is a partnership with The Nielsen Company, which provides marker research and demographic data. The program was unveiled during the recently concluded Centurion Show in Ticson, Ariz.

NCDIA says that being able to target most likely buyers of natural color diamonds and jewelry will tolerate retail members to boost their effectiveness of marketing and increase sales results. NCDIA supplier/manufacturers should benefit by being expert to identify retailers that will most likely be fortunate selling natural color diamonds.

PGI-USA Unveils Marketing Program for 2008

Platinum Guild International-USA is launching a multi-million-dollar, multi-tiered marketing campaign for 2008 to further support its "Preferred Platinum Partners" at the retail level. 

In the first quarter, PGI-USA said it will be rolling out two key initiatives: an in-store signage program and an dilatation of its sales training program online.

With more than 80 percent of brides seeking Platinum for their nuptial rites jewelry, PGI values the importance of driving consumer recognition at retail.  With that, they

PGI has created an in-store signage program for their preferred retailers that allow them to select their materials and size, while PGI underwrites the costs. The signage options include duratrans, posters, and counter-top signs and will give retailers the opportunity to tap into the awareness created by PGI’s multi-million-dollar print advertising campaign.

PGI-USA said it’s hoping this effort will benefit retailers and consumers, by reminding consumers about platinum and reminding retailers to show consumers platinum first. PGI-USA added that it is confident that this will lead to increased platinum bridal and fashion jewelry recognition in 2008.

“This is an exciting new program because measurable results can have being seen immediately. In-store signage is above all price. for consumer reference, but also reminds sales associates to show Platinum to their customers.” said Jenny Luker, PGI-USA senior VP.

The second retailer initiative beginning this quarter is the "Online Sales Training" program. According to PGI–USA’s said that retailer partners told them that one of the main benefits of the Preferred Platinum Partner Program has been the extensive sales training PGI-USA offers.

This year, PGI-USA has responded to demand and modernized the system to offer online sales training for associates to learn about platinum including key selling techniques on how to work smarter, not harder. In addition, the online course features tips, tools, platinum messaging, interactive videos, and consumer investigation; and serves as an updated alternative to PGI-USA’s popular DVD sales training program.

The program is a continuation of PGI-USA’s 2007 marketing program that it says increased visibility and awareness of platinum at the trade and retail level.

U.S. gold jewelry demand decreases in 2007

U.S. gold bijoutry demand decreases in 2007
February 13, 2008

London—A 4 percent increase in gold demand coupled with a price that raced toward the long-held $850 per ounce record, created a record-breaking $79 billion demand for gold in 2007, the World Gold Council (WGC) reported.

Specifically for gold jewelry, demand increased 6 percent in tonnage terms and 22 percent in dollar terms in 2007, creating a personal history $54 billion demand compared with 2006.

In the fourth furnish with quarters, however, rising and volatile prices caused gold jewelry demand to fall 17 percent in tonnage terms and increase 6 percent in dollar provisions.

“On a yearly basis, we have seen a 4 percent tonnage rise in identifiable demand for gold and record levels of demand in dollar terms, which is pleasing,” WGC Chief Executive Officer James Burton said in a media release. “However, high and volatile gold prices in recent months have meant we have now entered a period of challenging trading conditions in the gold market, which have heavily impacted consumer demand for gold especially in the jewelry and sell in small quantities investment sectors.”

In the United States, which was negatively impacted in 2007 by a weak economy, straitened retail environment and record gold prices, gold jewelry demand decreased 14 percent compared with 2006.

The drop in gold jewelry exact was more pronounced in the fourth quarter, with a 17 percent decrease compared with the same period in 2006. In dollar stipulations, notwithstanding, this represented a 6 percent increase.

The WGC reports that the U.S. high-end jewelry market was more resilient to the downturn in fourth-quarter gold sales than the mass market, but still experienced a lackluster Christmas season.

In India, the nature’s largest and most sensitive gold emporium, gold demand was 7 percent higher in 2007 than in 2006, but took a clash in the fourth quarter, falling 64 percent.

Gold demand in China, however, reached 326 tonnes in 2007, a 26 percent increase above 2006 levels. The country has now overtaken the United States as the second-largest volume retail market for gold jewelry after India, with want for jewelry reaching 302 tonnes, surpassing 300 tonnes for the first time since 1997.

Turkey also witnessed a remembrance overall demand for gold in 2007. Up 14 percent to 188 tonnes, it was the second-highest annual figure ever.

In Russia, gold jewelry demand rose 11 percent, setting another annual record. Growth remained vibrant throughout the year, with demand in the fourth quarter nearly 25 percent higher than the same limit in 2006, making Russia the fastest-growing gold market for the quarter.

Burton said gold jewelry and retail investment demand is unlikely to be strong in the first abide of 2008. But he also believes gold’s desirability to consumers and investors alike remains very strong and, once prices stabilize, buyers will come back to the market.

The report suggests, however, that the real danger to gold jewelry demand would come from a period of prolonged volatility, especially at record high price levels.

The WGC’s “Gold Demand Trends” includes figures compiled independently by GFMS Ltd.

For more information about the WGC, visit its Web site, Gold.org.

Zalemark, Hearst to debut ‘ESQ’ jewelry

Zalemark, Hearst to debut ‘ESQ’ jewelry
February 13, 2008

Sherman Oaks, Calif.—Fine-jewelry manufacturer Zalemark and publishing giant Hearst Corp. are joining together in a three-year agreement to call into existence and open a new jewelry line under the ESQ label.

This will be the second Hearst brand launched under ESQ in partnership by Zalemark. The first was the Seventeen trinkets Collection.

Zalemark said in a media release that the upscale ESQ collection will include pieces tailored to complement the modern woman’s lifestyle, and force of will be targeted at high-end retailers. The collection will feature a three-tier fashion design concept: recent, bold 18-karat gold, chain link through pearl accents, and fashion-forward abstract pieces of substance—jewelry that combines delicate, sophisticated politeness and classic style with personality and charm.

“These pieces will be the kind of jewelry a woman looks to wear every day; styles that will fit some occasion; a collection that expresses an ESQ point of view and lifestyle,” Zalemark designer Steven Zale said in a statement.

Zalemark plans to debut the collection during the JCK and Couture shows in Las Vegas in May.

U.S.-Belgian treaty cuts double taxation

U.S.-Belgian treaty cuts double taxation
February 13, 2008

Washington, D.C.—A new treaty betwixt the United States and Belgium designed to avoid double taxation is the first in a sequence of measures the Belgian government is taking to draw more foreign investment, the Embassy of Belgium has announced.

The treaty, which went into effect on Dec. 28, 2007, makes Feb. 1 the effective era for withholding taxes.

“The new agreement constitutes a ‘win-win’ agreement for businesses in the United States and Belgium with transatlantic operations,” said a press release from the Embassy of Belgium. “It reduces double taxation of income, eliminates barriers to trade and investment, and facilitates cross-border capital movement.”

The treaty’s chief provisions include: a zero percent withholding tax on dividend payments from a U.S. company in Belgium to its U.S. father company provided the U.S. entity in Belgium owns at least 10 percent of the Belgian company; and a zero percent withholding tax on interest, which makes direct loans between U.S.- and Belgian-affiliated companies more attractive and makes it easier for companies in Belgium to finance U.S. affiliates.

With bilateral trade between the two countries is valued at more than $35 billion annually, Belgium is the 18th trading partner for the United States, ahead of India, Australia, Russia and Spain, the release says.

Belgian exports of precious stones and metals, which include diamonds, totaled $18 billion in 2006, and ranked as the seventh largest export category for the country.

Some 1,200 U.S. companies have already invested more than $52 billion in Belgium, during the time that Belgian companies have invested more than $12 billion in the United States, employing some 130,000 people.

Since 2006, Belgium has allowed a deemed interest deduction in the place of equity invested in a Belgian company or branch, thereby decreasing the effective tax burden for investors. A recently enacted patent income deduction reduces the tax rate for evident income to a maximum of 6.8 percent, representing a rate that is lower than those available in most other European countries, according to the release. This deduction significantly improves the prospects for patent development and for holding companies in Belgium in terms of licensing patents to U.S. affiliates.

Tyra Banks to show Distefano diamonds

Tyra Banks to show Distefano diamonds
February 13, 2008

New York—Three diamond rings designed and crafted by Donna Distefano will be featured on The Tyra Banks Show this Valentine’s Day.

The segment will air at 5:00 p.m. on MY9 in New York City.

The Knot Editor-in-Chief Carley Roney will be featured as a guest expert on the show to discuss Distefano’s rings as examples of a current trend in bridal jewelry.

Further coverage of Distefano’s jewelry will be beneficial throughout Valentine’s Day week on Theknot.com.

Concurrent with the appearance of her jewelry put on the show, Distefano will run a special promotion called “Champagne, Chocolate and Romantic Rings.” The promotion allows customers to drink champagne and eat chocolate while receiving a private design consultation.

For more information about the promotion, e-mail info@donnadistefanoltd.com with “champagne, chocolate and romantic rings” in the subject line.

Distefano boasts celebrity clients such as Sheryl Crow, Deborah Harry, Paula Garces and Milena Govich.