June 2008
Prices surge for platinum metals in 2007
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
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
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
Jacob the Jeweler sentenced to 30 months in jail
June 24, 2008
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| 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.