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| xx | Platinum price to top US$1,900 by year end, says new survey.. | x | ||||||||
GFMS recently launched its "Platinum &Palladiim Survey 2011. "The following sets out some of the highlights from the survey given at a briefing by l\/lr. Philip Klapwijk, GFl\/lS’ executive chairman, at a London launch event. The consultancy said it sees platinum as having registered a gross surplus of almost one million ounces in 2010, which represents an increase of 10% to the highest level in GFMS’ 12-year data series and it was the sixth consecutive year of a gross surplus being recorded. Mr. Klapwijk said, "The core message here therefore is that, despite a decent rise in fabrication demand as the world economy got back on it feet, there was an even greater supply response, partly as a result of firmer platinum prices. A key change for demand was the 16% rise in autocatalyst fabrication but the level achieved remained well down on precrisis volumes due to a sluggish recovery in Europe's diesel sales plus further thrifting and substitution to palladium. The benefits of an improving economic backdrop were also apparent in GFl\/lS’ figures for offtake by the chemical industry, and yet more so the glass sector. ln contrast, heavy price-led losses in Chinese jewelry demand fed through to a 17% drop for the global jewelry figure. As for supply, jewelry scrap rose by 30%, while autocatalyst scrap grew by 15% as it returned to a secular growth path, partly as a result of collectors no longer withholding supplies for lengthy periods. ln addition, for the first time in four years mine production rose by 3%, in part due to a release of metal from the process pipeline, and this, plus gains in Zimbabwe outweighed losses elsewhere to give a 2% rise in global output. The fact that platinum prices rose in 2010, despite another gross surplus, was attributed to sustained, investment, with the launch of the first ever US ETF and the marked rise in ETF holdings singled out. Mr. Klapwijk said, "Platinum, along with other precious metals, benefited from a range of factors such as low interest rates, inflation fears, Eurozone sovereign debt travails, and quantitative easing in the US." As for 2011, GFl\/IS are expecting another sizable gross surplus, partly as mine output is set to rise, due mainly to forecast gains in North America, and both jewelry and autocatalyst scrap are also forecast to increase. Demand should also grow but only modestly as disruption in Japan from its recent earthquake, still sluggish European diesel sales, and substitution limit autocatalyst needs and as the price constrains jewelry demand. . · l\/lr. Klapwijk said, "Higher investment on the back of a supportive macroeconomic environment and bullish gold prices should mean we’ll see platinum north of US$1,900 by year end." |
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The principal change as regards palladium was its return in 2010 to a substantial gress deficit, which GFMS estimates at just over 550,000 ounces. Much of this was due to the 30% or near 1.2m ounce recovery in autocatalyst demand to a 10-year high, chiefly as car sales rebounded, especially in gasoline and therefore palladium-focused markets, but also as a result ef substitution within diesel from platinum te palladium. There was also a notable recovery for electronics offtake, again to a 10—year high. Not all was positive for demand as jewelry offtake fell by ever 300,000 ounces, due largely to lesses in China. On the supply side, GFMS believes that, after three years of Iosses, mine production rose, by 5%, with most ef the gains originating in South Africa. Autocatalyst scrap also increased, and by more that 20%,as higher prices largely eliminated supply withholding and due to improved recycling efficiencies. This return to a marked gross deficit and the emergence of the first residual deficit since 2000 undoubtedly contributed greatly to the doubling in palladium‘s average annual price but GFMS also believe that investor interest was critical. Mr.Klapwijk said, "V\/e certainly saw some profit taking in the OTC market as investors closed out long established positions. However, sentiment was lifted by the launch of the first ever US ETF and the inflow of over a million ounces into all ETFs over the year was remark- able." Such suppert was felt necessary te overcome still substantial disposals from Russian state reserves since, in 2010, GFMS estimate that these sales reached 800,000 ounces. Looking ahead, GFMS feel palladium will again see a large gross deficit since ongoing, if less dynamic, gains for autocatalyst demand should broadly counter the marked rise in north American mine output and further gains for autocatalyst scrap. Investment in ETFs should also remain significant, if well short of 2010's impressive volumes. Sales from Russian government reserves should also again feature in 2011, although thereafter only residual were expected as this sales programme winds down. However, as the background to broader investment in precious metals remains supportive, the consultancy expects the price to push higher, perhaps reaching as much as US$975 before the year is out. |
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© Copyright GFMS Limited — May 2011 |
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lnvestors who assume that an investment in a commodity index provides effective gold exposure are failing to optimise portfolio performance, according to a new study published by the World Gold Council (WGC). In its latest report, “Gold; a commodity like no other," the WGC examines gold’s role in a diversified portfolio with an allocation to
commodities. The analysis shows that a modest, consistent holding of gold increases long-term risk-adjusted returns in a way that a commodities typically get some exposure to gold when using one of without basket alone does not. Within indices such as the S&P Goldman Sachs Commodity lndex TM(S&P GSCI) or the Dow Jones UBS Commodity lndex TM (DJ—UBSCl), gold’s weighting typically ranges between just three and seven %. Thus, while investors typically get some exposure to gold when using one of these indices as a benchmark, its total weighting is small. For example, for an investor with a 10% overall allocation to commodities, the effective exposure to gold is as low as 0.3% using the S&P GSCI and only as high as 0.7% when using the DJ-UBSCI, WGC says. Juan Carlos Artigas, investment research manager at the WGC, said, "Commodity allocations have become more common among investors seeking diversification. It is often assumed that an investor in commodity baskets will, by default, profit from gold’s ability to protect wealth. Our research makes clear that to achieve true diversification an allocation to an outright position in gold provides benefits that cannot be replicated simply by investing in a wider commodities basket. This paper, therefore, supports the premise that gold should be viewed as a separate, distinct asset class, and a foundation to a well diversified investment portfolio." In previous studies, the WGC has demonstrated that a gold allocation of between two and ten % ofthe overall portfolio is required to increase risk-adjusted returns and protect investment performance. Today’s findings suggest that portfolio managers and investors who already have exposure to commodities in their portfolio stand to benefit from including gold as a separate strategic asset class, without compromising long-term returns, says WGC. Gold is not only different from other commodities with respect to its performance, volatility, correlation and its composition of demand and supply, says WGC, the gold market is also very large and liquid. Financial gold holdings, which include gold in public and private hands, are equivalent to US$2.4 trillion based on the average price of gold in 2010. To put that into context, the gold market is larger than any single European sovereign debt market, yet it is no—one’s liability. The gold market is even comparable to the size of US government-guaranteed debt, otherwise known as the agency market. |
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| Piaget unveils new Cocktail Inspiration Rings | ||||||||||
Colourftil, tangy, fruity - Piagat’s Cocktail inspiration rings sparkle with a shimmoring racliance that lights up the night, forming a set of exguisite invitations to succumb
to life’s most delightful pleasures. The sparkling gemstones
evoke fascinating cocktails. |
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Left to right : Piaget - Mojito Inspiration - 18K white gold ring set with 182 brilliant-cut diamonds, 1 cushion-cut green tourmaline, 1 carved citrine, 16 round-cut tsavorites, 120 round-cut emeralds, 8 marquise-cut emeralds Piaget - White Tonic Inspiration - 18K white gold ring set with 44 brilliant-cut diamonds, 1 round-cut bead peridot Piaget - Whisky on the Rocks Inspiration - 18K yellow gold ring set with 100 brilliant-cut diamonds, 1 cushion-cut citrine, & 2 carved Piaget - Cosmopolian Inspiration - 18K white gold ring set with 197 brilliant-cut diamonds, 1 cushion-cut pink rubellite, & 1 carved citrine |
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| Green tourmaline exalts the minty fresh charm of the Mojito, amethyst transforms the Blueberry Daiquiri into a dazzling nectar, and an oIive-shaped peridot melts into the seductive lightness of a diamond-set White Tonic. | ||||||||||
New rings, new temptations to taste, to love, to wear - by
Piaget. |
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© Piaget 2010, all rights reserved. |
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| Gems & Jewelry sparkle at GIA event | ||||||||||
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The award—winning Vega jewelry set by Robert Wan - a Tahitian cultured pearl necklace, bracelet and earrings - was also on view. The set is made u of 111 Tahitian cultured pearls and six carats of diamonds mounted in 18K white gold. The center of the necklace features five diamonds that fluoresce under ultraviolet light to mimic the Lyra constellation, whose principal star is \/ega. "We are very proud to feature such extraordinary jewelry, along with the brilliant work of Chan, Davis and other notable designers, at Symposium 2011, "Kathryn Kimmel said. "It is sure to be a memorable event, recognized for the beautiful gemstones on display and the valuable knowledge shared by our speakers and attendees." GIA Symposium 2011 celebrated the lnstitute's commitment to serve the public and trade through research, education, gemological laboratory services,and instrument development. |
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| C. From the Wallace Chan Collection - Harmony: pearl, pink sapphire, red spinel, sapphire, colored diamonds, ruby, citrine, opal, rock crystal quartz, 18K white gold & titanium. , Image © GIA D. From the Wallace Chan Collection - Moon Fairy, colored diamonds, mother of pearl, rock crystal quartz, 18K white gold & titanium. , Image © GIA E. From the Wallace Chan Collection - Pleasure: emerald, green garnet, jadeite diamond, colored diamonds, alexandrite cat's eye, 18K white gold & titanium. , Image © GIA |
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All images © GIA. |
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| Couture Fashion Week New York - an experience of beauty, glamour & luxury | ||||||||||
Couture Fashion \/\/eek was held recently at the world-famous \/\/aldorf—Astoria in New York City. One of New York Fashion Week’s most elegent events, CF\/\/ surpassad expectations delivering eighteen fabulous fashion collections to large appreciative audiences, proving that high-end ,couture fashion is alive and well. ln addition to the amazing runway shows held in the iconic Grand Ballroom, the event included world-class entertainment, a charity tie-in with the American Diabetes Association, displays of fine art and luxury products, and the attendance of fashion lovers, press and celebrities from around the world.  |
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| A) Fashion by Sisa Designs B) Fashion by Sushma Patel C) Fashion by House of Farrah D) Fashion by Sushma Patel E) Fashion by Sisa Designs | ||||||||||
The event kicked off with a fashion show by Atlanta—based Indian
designer Sushma Patel. Ms. Patel is a regular participant at CFVV, always
showing unique East-West fusion collections. Other returning designers
included Haya Al Houti from Kuwait, Jamil Khansa from the Lebanon, Janerations of Lithuania/USA, Nina Gleyzer of Russia/USA, Sisa Designs by
Simone Rodrigues of Brazil/USA, and Andres Aquino. Designers showing
for the first time at the prestigious event included Kristin Zimmermann from
Germany, Hadi Katra and Edward Arsouni from the Lebanon, the USA‘s
Autumnlin Atelier, Kostas Gagasoules of Greece/USA, and Suzie Turner of
the UK/USA. |
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Images courtesy www.CoutureFashionWeek.com. |
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| Why are auction house diamond sales breaking record? Industry insight by Russell Shor, GIA senior industry analyst. © GIA. All rights reserved April 2011 | |||||||
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When the financial crisis struck the world economy in the fall of 2008, the major auction houses, like every other business, pulled back to assess. As the crisis deepened in December 2008, however, the Wittlesbach Blue, then a 35.56 carat Fancy Deep grayish blue diamond, sold for US$23.4 million at Christie's-the highest price ever paid for a diamond at Auction. After that sale, Christie's and Sotheby's have achieved near-record and record prices for top fancy colored and colorless diamonds at numerous sales around the world. |
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Examples of record-breaking diamonds include: A 24.78 carat Fancy Intense pink diamond that doubled the all—time record set by the Wittelsbach (No-vember 2010); A 5 carat Fancy Vivid pink diamond that set a per carat record price of US$2.1 million (October 2009); A square-cut 32.01 carat D Internally flawless that established a record per-carat price of US$240,000 for a colorless diamond (October 2009); And, a 24.78 carat Fancy Intense pink diamond that drew the highest price ever paid for any gemstone at auction: US$46 million (November 2010). As with the Wittelsbach blue diamond, all of these major stones were entrusted to GIA for grading. Why? It’s the global market, rarity of top gems and wealthy individuals. Auction house executives and industry observers agree on a number of reasons why such diamonds can achieve record prices during a period of economic hardship: the international reach of the auction houses; the rarity of top gems and the greater number of private buyers going to auction. On the first point, whether conducted in the main centers of Geneva, New York or Hong Kong, auctions now attract a worldwide clientele. Indeed, Hong Kong, a niche venue a decade ago that specialized in jade and Chinese art, was Christie’s leading jewelry sales location in 2009 and 2010. In addition to the above mentioned 5 carat Vivid pink, a 5.16 carat Fancy Vivid blue, internally flawless diamond sold for US$6.14 million. Many of the top lot buyers were Chinese business people venturing internationally for the first time. The Geneva and New York sales also turned in record numbers. Sotheby‘s Nov. 16, 2010 Geneva auction,which featured that US$46 million pink diamond, was the first jewelry auction ever to top US$100 million total. The renowned London jeweler Laurence Graff bought that legendary pink but other lots went to buyers from 30 countries. The Bulgari Blue, which included a triangular-cut 10.95 carat Fancy Vivid blue diamond, went to an Asian buyer for US$15.7 million after a spirited battle between several bidders at Christie’s Oct. 20, 2010 New York sale. And Sotheby’s New York sale in December 2010 sold 100% and brought in US$53.2 million. All of its top 10 Iots,which were diamonds,soId for more than US$1milIion each. |
