Tuesday, June 9, 2009
The Cognac Diamond
The Red Diamond
The Orange Diamond
The Brown Diamond
The Green Diamond
The Blue Diamond
The blue diamond gets its color from the boron in its composition. They are mined in Australia and South Africa, and along with the “red” diamond are the most rare and valuable of the colored diamonds. A blue diamond can cost as much as $100,000 to $250,000 per carat, depending on clarity, color, and size.
The […]
The Yellow Diamond
Most diamonds are faint or light yellow. These stones are the most affordable diamonds and are becoming more and […]
The Pink Diamond
Natural colored pink diamonds vary in hue from purplish pink to orangey pink.
Graff Unveils Diamond Waterfall and Petal Collections
Luxury jewelers at the House of Graff, recently unveiled two of their latest collections, the Waterfall and Petal collections. Both collections feature a number of chandelier earrings and pendant necklaces.
The Waterfall collection pays tribute to one of nature’s most beautiful sights, a waterfall. With chandelier earrings dripping a cascade of gorgeous pear-shaped diamonds from an eight-petal flower in bloom at the base, this collection is definitely for the woman who wants all eyes on her. A matching pendant necklace is also a part of the Waterfall collection, and also features a large eight-petal flower with a “waterfall” of smaller diamonds dripping from it.
The Petal collection combines brilliant white diamonds with beautiful pink saphhires in both a necklace and set of earrings. The necklace is a pendant chain featuring four-petal flowers that come together to form a quaint quartet. Each of the petals in the flowers are made up of heart-shaped diamonds clustered around a beautiful pink sapphire. From the “bouquet” of flowers, a stream of white diamonds and pink sapphires dangle below. An equally beautiful and similarly styled set of earrings compliments the Petal collection’s pendant necklace very nicely. The Petal collection pieces are also available in a diamond and emerald arrangement, sure to make on-lookers green with envy.
Like always, if you have to ask the price… this is not for you. But if the price doesn’t scare you, you can check out Waterfall and Petal collections at the House of Graff showrooms located in select locations throughout the world.Majesty Cross Diamond Pendant Necklace
Love poker and diamonds? Then have we got the perfect necklace for you- the Majesty Cross Pendant necklace featuring a four-suit pendant of 18k white gold, studded with 2.85 carats of diamonds, all on an 18-inch matching chain.
Next time you hit the Vegas tables, show the world that you’ve got Lady Luck on your side, and a bit of class, by wearing the ultimate in poker-themed jewelry. Priced at $5,000, this isn’t a cheap piece - in looks or style.
To get a better idea of just how nice this necklace is, check out the up close image below. Just look at those diamonds sparkle!
Kickbars: Diamond Encrusted Shoelace Clips
Sure, you could easily spend a few hundred dollars on a nice pair of designer sneakers, but if you really want to make your shoes sparkle and stand out from the crowd, you want diamonds on them! The Kickbar, a jewel encrusted shoelace clip, adds that extra bit of class and shine to your favorite lace-ups.
The Kickbar features 108 G/VS1 diamonds pave set into a rectangular, white gold bar. All in all, the diamonds add up to a total weight of 2 carats per pair. If you prefer a little more color, The Kickbar is also available with pink sapphires, emeralds, rubies, and an assortment of colored diamonds. These alternate stoned Kickbars all retail at their “current market value.”
There’s also a “junior” version of the Kickbars for those who can’t afford to splurge on the $7500 models, but who still love their diamonds. The junior Kickbars contain fewer diamonds. There are about 76 stones that added up to a total weight of 1.5 carats.
The Kickbars are secured to your shoe by threading them through the laces. Because of this set-up, they can also double as a necklace or bracelet if threaded into a nice chain.
At $7500 per pair, Kickbars aren’t for everyone, and we fully expect these to be popping up on the shoes of hip-hop stars in the near future!
The Vertu Pink Diamond Phone
Forget the iPhone; anyone with an extra $500 to $600 laying around can get that at their local Apple or AT&T store. You want something a little more glam, and a lot more sparkly! And by sparkly we don’t mean those cheap Swarovski crystal-studded phones that were all the rage a few years ago.
If you want a truly blinged-out mobile phone, then look no further than Vertu and their limited edition Vertu Pink Diamond phone. The phone casing itself is made of rose gold, but what really makes the phone shine are its tiny pink and white diamonds paved in a pretty flower pattern. The Vertu Pink Diamond phone will be available in extremely limited quantities, but because of the opportunities those extra zeros in your bank account afford you, you won’t have to wait in line.
Celebs like Victoria Beckham, Gwyneth Paltrow, and Madonna have one in their
Star Lady Automatic Moonphase Diamonds Watch
While most of us these days use our cell phones to tell the time, a truly sophisticated woman still knows the value of a timeless, elegant watch. And what better a watch to have than one that is not only a fine piece of craftsmanship, but one that also is beautifully accentuated with diamonds? This is where the latest watch from Montblanc comes in - the Star Lady Automatic Moonphase Diamonds Watch.
This elegant timepiece houses an ETA 4810/908 automatic movement in a 36mm, 18k white gold case. Other features of the watch include a mother of pearl dial, moonphase display, pointer date display, feuille hands, applied Breguet numerals, and 8 beautiful diamond hour markers. Securing these precious features is flat sapphire crystal with a special anti-glare coating, a sapphire back, and a fluted crown.
Priced at $10,175 USD, this is surely an investment you’ll want protected. Montblanc has gone ahead and made the the Star Lady resistant to water up to 30m, which will surely relieve any worries of splashes at the sink, or even an accidental drop in the toilet, bath, or any other body of water.
This beautiful time piece can be yours for the aforementioned price, and is available with a white or blue alligator wrist strap featuring an 18k white gold tang buckle.
Vera Wang Jewelry
Check out this pair of platinum Vera Wang chandelier earrings. It boasts 3.27 carats of round and baguette diamonds with a VS clarity and F/G color. While i’m sure these would look great on your ears and you’ll be blinging from here to Siberia, the price of these babies are only $5,200. Interested? You can check out these earrings and other Vera Wang Jewelry at Calvin’s Jewelry. Oh and they were voted “Best Jewelry” by Austin City Search. Check out their website or call 512-794-1911 for more info.
Gold Confiscation, Missing Royal Canadian Mint Gold, Bernard von Nothaus Indictment
A Myth Concerning Gold Confiscation
Examination of a clause in Executive Order 6102, which receives little attention. In addition to the exemption from confiscation for numismatic gold, there was also an exemption for up to five ounces of gold per person.
U.S. Gold, Going or Completely Gone?
According to the United States Geological Survey, nearly 3,000 metric tonnes of gold were exported during 2008 in the form of "gold compounds." Gold compounds consist of products containing gold content such as gold paint. The amount of gold claimed to have been exported in this format is more than 14 times the annual US gold mine production. What is going on here?
Mint can't account for missing gold
In another story about missing gold, an audit of the Royal Canadian Mint turned up a discrepancy between the mint's accounting records and physical precious metals holdings for gold, silver, and other precious metals. The article also describes the largest reported theft from the mint when a machinist pocketed 85 ounces of gold.
Liberty Dollar - Federal Indictment
Bernard von Nothaus, who created an "alternative currency" of gold and silver Liberty Dollars was formally charged "with uttering and passing, and attempting to utter and pass, a coin of silver in resemblance of genuine coins of the United States in the denominations of five dollars and greater, and intended for use as current money". More than a year ago, the headquarters of his company was raided by the federal government and more than two tons of gold, silver, and copper coins were confiscated.
Buffet Gets 'Comeuppance' After Gold Outperforms
Every time someone writes a negative article about gold, they invariable measure the returns since January 1980 to support their preordained conclusion that gold is a bad investment. Someone has finally turned the tables and compared an investment in gold to an investment in Berkshire Hathaway stock since May 2005, a much more favorable investment time frame for gold.
A particularly vacuous article courtesy of the Wall Street Journal. From the title of the article I thought it would at least have some substance, but it turns into another run through of the "risks of buying bullion" and the lack of a measurable intrinsic value. The author winds up the article by suggesting that Treasuries are a preferable safe haven to gold.
Northwestern Mutual Makes First Gold Buy in 152 Years
For the first time in history, Northwestern Mutual, the third largest US life insurance company, has invested in gold. A great quote from CEO Edward Zore, "The downside risk is limited, but the upside is large. We have stocks in our portfolio that lost 95 percent. Gold is not going down to $90.” Indeed.
US Mint Gold and Silver Bullion Sales Through June 2009
As in the past, I wanted to write another post examining the US Mint's monthly gold, silver, and platinum bullion coin sales. Previously these figures were a flawed method of examining demand for physical precious metals due to the rationing program in place from the United States Mint. As long as authorized purchasers of US Mint bullion coins were restricted in the quantities they could purchase, it was difficult to ascertain how much unmet demand existed behind the rationing wall.
However, this month the figures might be closer to providing a useful measure. As I mentioned in several posts this month, a likely combination of decreasing demand and increasing supply has turned the Gold and Silver Eagle shortage to a surplus. For the first time since the rationing programs began, authorized purchasers did not purchase the maximum number of coins allotted by the US Mint.
Here's a look at the US Mint gold, silver, and platinum bullion sales for the month of May 2009, along with a year to date total in the final column.
| April 2009 US Mint Bullion Sales | ||||||
| | 1 oz. | 1/2 oz. | 1/4 oz. | 1/10 oz. | Total oz. | YTD Total oz. |
| Gold Eagle | 65,000 | - | - | - | 65,000 | 554,500 |
| Gold Buffalo | - | - | ||||
| Silver Eagle | 1,904,500 | 1,904,500 | 11,579,500 | |||
| Platinum Eagle | - | - | - | - | - | |
There were sales of 65,000 ounces of gold during May 2009. Once again this consisted entirely of one ounce 2009 Gold Eagles, as the US Mint did not offer fractional coins or the 24 karat Gold Buffalo. This was a big drop from the prior month when 147,500 ounces were sold, however it is more than double the number of coins sold in the year ago period of May 2008 when 31,500 ounces were sold.
There were sales of 1,904,500 ounces of silver during May 2009. This was a decline from the prior month when 2,518,000 ounces were sold and a decline, but still up from the year ago period of May 2008 when 1,516,000 ounces were sold. Sales of silver bullion still remain on pace for a record breaking year. The current record was set during 2008 when 19,583,500 ounces were sold for the entire year.
Platinum bullion coins were still not offered for sale by the US Mint. No platinum bullion coins have been offered since November 2008. The US Mint has not provided any additional statements on the status of platinum bullion coins. Notably, the Royal Canadian Mint has been able to produce and sell their Platinum Maple Leaf coins during 2008.
Based on the figures for the gold and silver bullion sales, demand for physical precious metals is apparently dropping significantly at a time when the market prices of the metals seemed to be gaining some momentum. This could be a seasonal impact since prior sales figures show the sales trailing off during the summer months. Or it could be a signal that some buyers are taking pause to see if the much ballyhooed "green shots" actually take root or whither up and die.
Gold and Silver Eagle Shortage Becomes Surplus
For countless months, authorized purchasers of US Mint gold and bullion coins have been subject to a rationing process, which limited the number of coins they could purchase. The rationing program had been put into place after the demand for gold and silver coins exceeded the US Mint's ability to supply them. In a few recent posts I have provided some indications that the shortage of American Silver Eagles and American Gold Eagles might be ending. There's yet another indication that the end of the shortage and rationing is close at hand.
Throughout the rationing period, the entire supply of coins available from the US Mint had been divvied up and sold to the authorized purchasers. For the first time since rationing began, the US Mint failed to sell their total production of Gold and Silver Eagles.
Dave Harper, the editor of Numismatic News, writes:
In the prior two weeks, the 14 purchasers authorized to buy the American Eagle coins from the U.S. Mint have not taken the maximum number of coins that are available, leaving the Mint with an extra 39,000 one-ounce gold American Eagles and 185,000 extra silver American Eagles.
To my knowledge, the rationing program for Gold and Silver Eagles still remains in place despite the surplus of recent weeks. The US Mint is likely waiting to build an inventory of bullion before attempting to remove purchasing restrictions completely.
When the rationing program was instated by the US Mint, it generated a lot of attention from blogs and news sites. The rationing was cited as evidence of the overwhelming demand for physical precious metals that would eventually carry market prices higher. With the opposite situation developing, opposite predictions have emerged.
In befuddlement to both arguments, the the disconnect between physical demand and market price continues. Amidst the unraveling of the physical scarcity situation, the prices for gold and silver have risen to multi-month highs with many predicting impending breakouts, which will carry prices even higher.
Gold Dispensing ATMs, Hedge Funds Buy Gold, World Gold Production
With gold now reaching it's highest price of the year, gold related stories seem to be popping up in more places. Here are a few gold related articles and blog posts from the past week that are worth the read.
German firm plans gold ATMs to meet growing demand
It seems like other countries are always creating new ways to make gold easier to purchase amidst growing demand. India started selling gold coins in post offices around the country. Now Germany, Switzerland, and Austria will have gold dispensing automatic teller machines in various public locations. In the United States, the response to high demand has been to ration the supply of gold.
Hedge Funds Making Big Bets on Gold
Hedge funds are waking up to gold. Paulson & Co bought 31.5 million shares of the gold ETF worth $2.8 billion. Stephen Mandel's Lone Pine bought 26.5 million shares worth $2.4 billion.
As I have explored in some other recent posts, the premiums for gold and silver have been contracting recently amidst the rising prices. Premiums are now back to normal for most gold and silver coins.
A recently published piece examining gold production in 2008. World gold production peaked in 2001 and has been on the decline ever since. Also, there have been some interesting shifts in top gold producing countries.
Money Magazine, gold, and hedge funds
Watching Money Magazine as a contrary indicator. They recently pass off gold as a "speculative play" that has delivered "lousy returns" since its below the peak reached in 1980. They conveniently ignore gold's 300%+ return since 2000.
Is it just me, or does it seem like mainstream publications all start publishing negative gold stories when the price starts rising? Forbes trots out some analyst zingers, "fundamentals not supportive", "crowded trade", and "ripe for correction". Excuse me while I go buy some more gold.
How many rhodium bullion coins are being produced and when will they be available?
We have the capability of producing as many coins as there is a demand for. We will be selling the coins individually, and also in wholesale. There will not be any minimum order requirements.
What sizes will the coins be available in? Can you provide an idea of the projected price?
Initially, the Rhodium bullion will come in a 1 gram size. We decided both in terms of pricing as well as recognition, the 1 gram size would be perfect for this new bullion piece. The projected price at current raw material values hovers around $100.00. Now that price not only includes the coin, it includes the sealed plastic coin slab that will securely encase the coin, which is perfect for display as well as protection, a certificate of authenticity with each coin, and free priority shipping to your door.
How long have you been working on perfecting the process of minting coins in rhodium, and how does minting coins in rhodium differ from other metals?
We've been working on this for over a year now, its cost us a lot of money as well as time. The work involved in getting this project off the ground has been tremendous, easily the biggest thing our company has ever done. This is really an historic moment, where a truly unique precious metal product comes onto the market, and we're just excited to be the ones to have pioneered it.
Making coins out of Rhodium has got to be as different from making other kinds of coins as can be. Normally, making coins is a very straightforward process. You roll an ingot out into a sheet, punch blank disks, and then stamp the disks with the design to make coins. This process works with just about any metal you can think of, copper, silver, gold, platinum, palladium, etc. You try and do that with Rhodium and you'll end up with a bunch of broken flakes and powder. Rhodium has uncommon properties that make it extremely hard, brittle and down right stubborn, features that do not lend themselves to making coins easily.
The way we had to approach it was to come up with a completely new method, a method that was developed through trial and error, through extensive research, and through our own testing here at our facility. After nearly giving up a dozen times, we reached a "eureka" moment a couple of weeks ago, when we realised that we finally cracked the code, and would be able to set up full scale production. Boy, was that exciting.
After rhodium climbed above $10,000 per ounce, the price collapsed below $1,000. Demand continues to be dominated by a single industry. What is your t
There will always be demand for Rhodium, and the price is temporarily depressed due to the terrible state of our economy and the even worse state of all automobile manufacturers. What's important to keep in mind is that this artificial price dip is not forever, and there will come a point in the near future when people will start demanding cars again, manufacturers will start building them again, and the prices for many commodities will start to rise. Rhodium will be on the vanguard of this revival, and will climb back up to prices that will make us look back longingly at present values.
As the green movement takes a bigger hold on our world, Rhodium's use in cleaning factory and power plant emissions will grow to be a substantial chunk of global Rhodium usage. Internal combustion engines are not going away any time soon, and of anything, emissions standards are only going to get stricter. This metal, along with platinum and palladium will feel a resurgence once the economy begins to pick back up and consumer confidence reawakens. Now is a great time to buy.
Kremlin: Role of gold in Russian reserves could increase
ST. PETERSBURG, June 5 (RIA Novosti) - Gold could start playing a more important role in Russia’s reserves due to the influence of regional currencies, a Kremlin aide said on Friday.
Addressing the St. Petersburg International Economic Forum, Russian President Dmitry Medvedev earlier said the structure of the global currency system would inevitably change with the increasing role of regional reserve currencies, and called for a reassessment of the potential role of gold in the global currency system.
“I do not think it [gold] will replace everything else - it would be naive and unjustified, but the growing role of gold amid the crisis could be a topic of discussions in the near future,” Arkady Dvorkovich told the TV channel Vesti.
He ruled out a return to the gold standard monetary system.
MONDAY Market Excerpts
Gold eases in consolidative trade
The COMEX August gold futures contract closed down $10.10 Monday at $952.50, trading between $943.80 and $961.10
June 8, p.m. excerpts:
(from AP, Bloomberg & DowJones) — Prices for gold and other commodities retreated Monday as investors cashed in on some recent gains and as the dollar rose against other currencies.
The dollar moved higher versus European currencies on worries about the European economy and following a downgrade to Ireland’s debt rating by Standard & Poor’s.
Rob Kurzatkowski, futures analyst with OptionsXpress, said the pullback in commodities prices was being seen as a healthy sign given the strong run they have had recently. “When prices rise too fast, those are boom-and-bust markets,” Kurzatkowski said. “Markets that correct along the way are going to be healthier markets.”
Jean-Marie Eveillard, the senior investment adviser for the $7 billion First Eagle Global Fund, said it is 10 percent to 12 percent invested in gold and gold-mining securities.
“It’s insurance to protect against the fact that current policies by the American government and the Fed are potentially wildly inflationary,” Eveillard said today, referring to the Federal Reserve.
The dollar gained on speculation that the Fed will raise interest rates by the end of the year as the economy recovers. The U.S. Dollar Index, a six-currency gauge of the dollar’s value, climbed as much as 1 percent after jumping 1.7 percent on June 5, the most in more than four months.
Gold futures for August delivery dropped $10.10, or 1 percent, to $952.50 on the New York Mercantile Exchange’s Comex division.
Earlier, the price touched $943.80, the lowest for a most-active contract since May 26. “Gold prices could eventually fall toward $930 before rebounding back toward last week’s high at $990,” Tom Pawlicki, an analyst at MF Global in Chicago, said today. “We’re not sure a focus on U.S. recovery can continue, as the small signs of recovery have occurred globally, and Fed funds rates are likely to remain low for a long period of time.”
“There is one all-encompassing theme and that is the well-bid U.S. dollar,” said Bart Melek, global commodity strategist with BMO Capital Markets.
Currency analysts cited several factors underpinning the greenback, including global equity-market weakness, general risk aversion, Friday’s stronger-than-forecast U.S. jobs data and a downgrade to Standard & Poor’s credit rating for Ireland.
George Gero, vice president with RBC Capital Markets Global Futures also cited the continued wait ahead of congressional action on proposed International Monetary Fund sales of gold to generate funds to help poor countries. While this is expected, there nevertheless remains some uncertainty over exactly how events will unfold, he said.
Gold’s floor at $870-$880 on physical demand, says GFMS
TOKYO, June 9 (Reuters) - Strong physical demand will likely put a floor for gold prices at $870-880 under current market conditions, an official of London-based metals consultancy GFMS said on Tuesday. Levels that draw physical demand will contain investment sector selling, and currently that floor was in the “higher $800s”, GFMS chief executive Paul Walker said at a news conference in Tokyo to brief on the company’s precious metals surveys released in April.
“Sustained disinvestment will not likely push prices below $870-880 as the amount of physical buying out of India and the Middle East” will help support prices at higher levels, he said…
The metals consultancy said in its Gold Survey 2009 in April that gold may rise through $1,100 an ounce in 2009 as investment is supported by fears over rising inflation, potential dollar weakness and fears of financial instability.
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Price predictions are fun and all, but truth be told, the price levels of “paper gold” (futures, ETFs, and other derivatized representations) can theoretically punch around at any given level [perhaps with a bias toward $0 representing a systemic default], but meanwhile, on the actual physical market, there are some formerly commonplace items that remain conspicuously difficult to procure at any modest price.
Let that scarcity be a subtle warning sign. Don’t settle for holding an uncertain/empty bag of paper gold. Choose physical gold and you’ll have the peace of mind of knowing the tangible wealth is at hand at such time as you may need it most.
THE PRIZE
THE RULES — (We MUST have RULES !!)
1) THIS Contest consists of TWO Portions — A Price Prognostication and a “fill-in” STATEMENT !
2) The Winner is the Price Guess closest to the Settlement price of the COMEX August, 2009 Gold Contract on the date of WEDNESDAY, the 17th of June, 2009. HOWEVER, All “Contest entries” MUST be posted before the clock in Denver strikes MIDNIGHT (24:00 MT) on SUNDAY, June 13th, 2009.
3) Price “Guesses” shall be stated in Dollars and tenths and surrounded by STARS ! (Such as **** $999.90 ****), so as to be OFFICIAL !
4) ONLY one “Guess” per Knight or Lady is allowed, and once that “Guess” has been “taken” — no one can duplicate it !! FIRST COME has rights to that “Guess”.
5) AND MOST IMPORTANTLY, to accompany the Price prognostication, — Each price guess must be accompanied with a “fill-in” essay completion of the following statement –“He who owns the gold ———— !” (Finish the sentence with thirty words or more.)
Thursday, May 7, 2009
Red Diamond For Sale
The Argyle Diamond Mine in Australia is famous for being the world’s premier source of pink colored diamonds but it is also the premier source of the few red colored diamonds known to exist. To say that there is only a small number of true natural red colored diamonds is no exaggeration. The number diamonds certified as red is estimated to be less than twenty so it is rare that a red diamond is seen in public, let alone available for sale.
Bruce Robinson Jewellers in Brisbane, Australia recently purchased a red diamond at the 2006 Argyle Pink Diamond Tender, which featured 65 exceptional colored diamonds. While the purchase prices for the diamonds at the tender are confidential, the red diamond is now for sale and expected to demand a very high price.
The 0.54-carat brilliant-cut red diamond, named “The Lady in Red” measures only 5.13 mm and is I1 in clarity meaning it has inclusions visible to the unaided eye. The diamond was a 1.46-carat rough diamond crystal and was cut and polished to its current 0.54-carat weight. In spite of its small size, this diamond will probably be price well over $2 million.
Red diamonds are extremely rare. The last red diamond sold for almost $1 million twenty years ago. Because of their rarity and beauty, several red diamonds are among the most famous diamonds.
Perhaps the most famous of the red colored diamonds is the Moussaieff Red, a 5.11-carat ruby-red diamond making it the largest red colored diamond in the world. Discovered by a farmer in Brazil in the 1990s, the internally flawless 13.90-carat rough crystal was cut by William Goldberg Diamond Corporation. The rare red stone was later sold to the Moussaieff Jewelers for a rumored $8 million.
The second largest red diamond is simply known as Red Diamond and is an emerald cut weighing 5.05 carats. Its current location is unknown.
Another famous diamond is the De Young Red, a 5.03-carat round brilliant that is the third largest red diamond in the world. The De Young Red is on display at the Smithsonian Museum in Washington, DC. At one time it was mistakenly sold as a red garnet because the stone’s subtle brown hue give it an appearance more like a garnet than a rare red colored diamond.
The Hancock (Halphen) Red is an extraordinary deep ruby red making it exceptional among the reds even though it is smaller in carat weight at 0.95-carats. In the 19th century, Edwin Streeter, a diamond dealer in Paris bought the extraordinary red known as the Halphen Red. The stone disappeared from public view and was never seen again. Almost a century later, a collector in England purchased a 0.95-carat red diamond, The Hancock Red, named after its owner Warren Hancock. While there is no proof the two diamonds are in fact the same, the rarity of red diamonds makes it likely they are the same. The purplish-red diamond sold for $880,000 ($926,000 per carat) at Christie’s in 1987.
Time will only tell what will happen to “The Lady in Red” that is currently for sale in Brisbane.
GIA Expands Diamond Dossier Services
This month the Gemological Institute of America (GIA) expanded services associated with its Diamond Dossier diamond-grading report. The Diamond Dossier service now provides diamond grading for diamonds ranging from 0.15 to 1.99 carats. Previously, the Diamond Dossier was limited to diamonds up to 0.99 carat so this expansion will mean a larger number of diamonds in the 1.00 to 1.99 carat weight range will now have the GIA number laser inscribed, which is a feature of every diamond with a GIA Diamond Dossier.
While the laser inscription is a valuable feature for consumers, diamond shoppers need to be aware that there is no plot map of diamond characteristics with any of the Diamond Dossier reports. Diamond shoppers will have to rely on retailers and appraisers to examine the diamond under a microscope to assess the inclusions in terms of durability and visibility.
For example, feathers that cut across the pointed corners of princess-cut diamonds can be a hazard during the setting process with the result being a broken corner. Without the plot map showing the type and location of inclusions, the diamond shopper must rely on someone with a microscope and diamond experience to identify problems before they happen and hopefully before the purchase.
The GIA, like other laboratories, grades clarity based on viewing the diamond from the top. Sometimes inclusions are difficult to see with magnification from the top (higher clarity grades) but can be visible to the unaided eye when viewing the diamond from the side.
EGL Announces Light Performance Measurement
The EGL USA laboratory recently announced that beginning in July, they will offer a new 360º Diamond Report that presents the traditional industry specifications and measurements for a diamond but features a new measure of light performance.
In addition to the new light performance measure, EGL USA’s 360º Diamond Report assigns a new overall grade for visual appeal. This new grade, called the Diamond’s Natural Attraction (DNA), is a composite of twelve characteristics; seven for cut and proportion, two for polish and symmetry, and three related to the new light performance.
The 360º Diamond Report service utilizes direct light-performance developed specifically for EGL USA by ImaGem Inc., a company specializing in technology for grading and identifying gems. ImaGem’s systems combine advanced optics, imaging technology and proprietary software to automate and integrate diamond grading.
I will be provide addition feedback on EGL USA’s 360º Diamond Report as the service is implemented and we have a chance to evaluate this new entry into the cut grade competition between the diamond grading laboratories.
Teenage Girls Finds 2.93-carat Diamond
Nicole, her parents, grandparents, brother and sister has spent the day digging but Nicole’s sharp eyes made her the lucky one. As is the custom for larger diamonds found at Crater of Diamonds, the finder names the diamond. In Nicole’s case, she decided on “Pathfinder Diamond” because of finding it on the path. She plans to keep the diamond for a while and then will probably get it appraised and offer it for sale.
The 2.93-carat diamond was the largest of the 332 diamonds found at Crater of Diamonds so far this year. On average, park visitors find about two diamonds per day at Crater of Diamonds State Park, which is the world’s only diamond production area where the public can keep the diamonds they find.
US Patent for Holloway Cut Adviser
Australian diamond appraiser, Garry Holloway, developed the Holloway Cut Adviser (HCA) system in 2000 as a tool for assessing diamond cut in terms of Brilliance, Fire, Scintillation, and Spread (size relative to weight). On July 31, the United States’ Patent & Trademark Office issued patent No. 7,251,619 to Holloway for his computer-implemented method for evaluating loose round diamonds.
The Holloway Cut Adviser has become a useful tool for diamond shoppers trying to determine which loose round diamonds have the best cut based on a few diamond specifications. The tool is particularly useful for online diamond shoppers who are trying to sort through a large number of diamond specifications to determine which one to order.
The HCA system takes four input factors (typically Depth Percentage, Table Percentage, Crown Angle, and Pavilion Angle) and returns ratings for Light Return, Fire, Scintillation, Spread, and a composite rating for Total Visual Performance. While the HCA system only accounts for 17 of the round diamonds’ 58 facets, these are the most important for the diamonds light performance and appearance.
At Diamond Source of Virginia, we use the Holloway Cut Adviser as a final filter in recommending round brilliant cut diamonds to our clients. First, we seek diamonds that meet our client’s requirements for color, clarity and budget. Then we seek GIA cut grades of Excellent or Very Good. Finally, we use the HCA to find the best of the best before we order the diamond in for our inspection. Since we started using the combination of GIA and HCA grades, we have not been disappointed with a single diamond in terms of brilliance and sparkle.
The diamond shopper’s quest for the best round diamond requires a careful balancing of many factors including color, clarity, millimeter size, cut and price. The cut aspect is critical to a diamond’s appearance and is often the most difficult for a shopper to evaluate. The Holloway Cut Adviser has proven to be a valuable tool for filtering out underachieving diamonds based on specification available in advance of purchasing.
Biggest Diamond Every Found?
A news report from Johannesburg, South Africa says that the largest diamond every found has been discovered at a mine in the North West part of the country. The diamond is reported to be twice the size of the Cullinan Diamond, which at 31.06.75 carats was the largest gem quality rough diamond ever found.
This latest large diamond is traveling under heavy guard to Johannesburg from the mine. We will continue to monitor this new find and follow up with more specifics and pictures after the diamond has been documented.
Half Gram Gold Coins
The World Gold Council recently announced their plans to attempt to popularize half gram gold coins. The plan seems mostly targeted towards consumers in India, in advance of the upcoming festival.
How small is a half gram of gold? There are 31.1034768 grams in one ounce. If you are familiar with the one-tenth ounce size gold coin, a half gram of gold would be about one-sixth of that size. The value of one half gram of gold based on Friday's gold closing price would be about $14.68.
The story about half gram gold caught my attention because it is the opposite of what's happening with gold in other parts of the world. As the price of gold increases, it makes sense to popularize smaller size coins or bars so that a mainstream audience will continue to have options for investing in gold. In the United States, smaller sized coins have actually been suspended in favor of producing only one ounce coins.
This step was taken by the US Mint at the end of 2008. At least one other world mint that I follow, took similar action. For all of 2009, the US Mint has only produced gold bullion coins in the one ounce size. Based on the current price of gold plus the standard markup, the price tag for the smallest possible gold purchase approaches $1,000. This may be out of reach for many potential investors.
In advance of Y2K, there was a renewed interest in precious metals investing as a disaster hedge. Even mainstream consumers began to buy into the story, bringing in many new gold investors with budgets both large and small. When Y2K precious metals investment reached its peak in 1999, the US Mint sold 2,750,338 1/10 ounce gold coins which would have cost around $40 each. The 275,000 ounces sold via 1/10 ounce coins actually exceeded the total amount of gold bullion sold by the US Mint for some prior years.
The current lack of fractional sized bullion coins has effectively cut off a significant portion of gold investment demand. Importantly, this is demand which would come from a mainstream investment audience, which gold currently lacks.
Is the Silver Eagle Shortage Ending?
World mints have struggled to keep up with the booming demand for precious metals. The situation has been ongoing for more than a year and frustrated physical silver investors with suspensions, rationing, and delays. There are finally some signs that the shortage may be coming to an end, in particular for the American Silver Eagle bullion coin.
The Silver Eagle shortage first began in February 2008. The US Mint became so overwhelmed with orders for the popular silver bullion coin that they were forced to suspend taking new orders. The suspension was only in place until March 2009, however, sales were resumed on a rationed basis. Authorized purchasers were limited in the number of coins that they could order. Early suggestions indicated that the rationed amounts covered only a fraction of the overall demand.
More than one year later, there are some indications that the situation may finally be abating. As I mentioned in my post on the US Mint's March 2009 Bullion Sales, sales of silver and gold reached extremely high levels. Sales of silver coins were actually the highest monthly total since 1986. Since these are rationed sales, the high level was more of an indication of reduced supply constraints than increased demand.
Recently, there have been more indications at the dealer level that the shortage may be ending. One dealer has reported that delays for delivery of Silver Eagles are shortening, and premiums for the coins is declining. At the height of the shortage premiums were as high as $4.50 over the spot price of silver. Premiums have now pulled back to around $3.00 over spot.
Palladium Bullion Coins Proposed
With the price of palladium down from the peak price reached during 2008, there seems to be increased interest in creating methods for investing in palladium. I previously wrote a post on the proposal to create a palladium ETF. Now there is a proposal for a United States palladium bullion coin.
A bill was introduced in the United States Senate on April 1, 2009 to create palladium bullion and numismatic coins for the year 2009. The coins would bear the design of the 1907 Ultra High Relief Gold Double Eagle and contain one ounce of .995 palladium. The bill was sent to committee and the prospects of becoming law are uncertain.
According to data from Johnson Matthey, palladium supply for 2008 was 7.51 million ounces while demand was 7.19 million ounces. Investment demand only accounted for 4% of overall demand.
There are no palladium bullion investment coins currently produced by any of the major world mints. The Royal Canadian Mint briefly offered the Palladium Maple Leaf. The coin was only offered from 2005 to 2007 before it was discontinued. They sold approximately 40,000 in 2005, 70,000 in 2006, and 15,000 in 2007.
Current methods of investing in physical palladium are primarily one ounce palladium bars or the Palladium Maple Leaf coins. The coins usually carry premiums of over 50% and it can be difficult to locate a bullion dealer who keeps them in stock. If a new palladium bullion coin is produced, it would likely be available for much lower premiums and much easier to locate.
US Mint Bullion Sales for April 2009
The US Mint's bullion sales figures for April 2009 remained robust. The amount of gold bullion sold during the month was the highest of the year. Silver bullion sold was the second highest figure for the year. Once again, the US Mint did not sell any platinum bullion coins. This offering has been delayed with no indication of when sales might begin. Similarly, the 24 karat Gold Buffalo coins were not offered as they are also delayed.
The sales totals for all bullion coins offered by the United States Mint are presented below.
| April 2009 US Mint Bullion Sales | |||||
| 1 oz. | 1/2 oz. | 1/4 oz. | 1/10 oz. | Total oz. | |
| Gold Eagle | 147,500 | - | - | - | 147,500 |
| Gold Buffalo | - | - | |||
| Silver Eagle | 2,518,000 | 2,518,000 | |||
| Platinum Eagle | - | - | - | - | - |
There were 147,500 ounces of gold sold during April 2009. This consisted entirely of one ounce gold coins, as fractional coins were still not offered.This represented the highest sales level of the year to date. The prior month had sales of 136,500. Sales for the year ago period of April 2008 were 47,500 ounces.
There were 2,518,000 ounces of silver sold during April 2009. Silver bullion sales continue to be at higher levels, on pace for a record year. Since the coins are subject to rationing, this might be an indication that the Silver Eagle shortage might be ending. The prior month silver bullion sales were 3,132,000. Sales for the year ago period of April 2008 were 1,584,000.
Gold Backwardation, Tracking COMEX Depletion, Banks’ Gold and Silver Short Positions
Red Alert: Gold BackwardationPosted late last week explaining the how gold went to backwardation for the first time in history. The implication is that backwardation will lead to a breakdown of the delivery mechanism for gold, which takes us to the next link...
Tracking gold and silver deliveries from the COMEX versus registered inventory in COMEX warehouses. After today, gold is 43% depleted and silver is 37.1% depleted.
"On the fly" Gold and Silver COT Information
A small number of US banks continue to hold an ever increasing porportion of all commerical net short positions for gold and silver futures. Three US banks accounted for 66.97% of the net short gold positions, and two banks accounted for 98.64% of the net short silver positions.
A brief piece published on Fortune outlining the bullish case for gold.
2008 Gold, Platinum & Silver Performance
As trillions of dollars in equity values were vaporized this year, a strong November and December performance pushed gold into positive territory by year end. Gold's annual gain was 4.32%. This marks gold's eighth consecutive annual gain. The "lost decade" for stocks, has been quite the opposite for gold. Silver and platinum were less fortunate, posting losses of 26.90% and 41.31% respectively.
(Figures calculated from Kitco's London PM Fix prices)
The headline numbers only tell part of the story. I rounded up a bit more data which paints a more complete picture of the 2008 performance of gold, silver, and platinum.
| Gold | Silver | Platinum | |
| Dec 31, 2007 Close | 833.75 | 14.76 | 1530.00 |
| Dec 31, 2008 Close | 869.75 | 10.79 | 898.00 |
| Annual Change | +36.00 | -3.97 | -632.00 |
| Percentage Change | +4.32% | -26.90% | -41.31% |
| 2008 Low | 712.50 | 8.88 | 763.00 |
| Change from start to low | -121.25 | -5.88 | -767.00 |
| Percentage Change | -14.54% | -39.84% | -50.13% |
| 2008 High | 1011.25 | 20.92 | 2273.00 |
| Change from start to high | +177.50 | +6.16 | +743.00 |
| Percentage Change | +21.29% | +41.73% | +48.56% |
The first section of the table above shows the performance of gold, silver, and platinum from start to finish during 2008. The second section lists the lowest closing price for each metal during 2008, and calculates the percentage change from the start of the year to the low price. The final section lists the highest closing price for each metal during the year, and the percentage change from start of the year to the high price.
Some observations:
Often when the mainstream press writes about gold as a potential investment option, they usually caution that prices are "extremely volatile." A look at the figures above shows otherwise. While it seemed like a year of extremes for gold, at its lowest it was down 14% and at its highest it was up 21%, probably making it one of the least volatile investments of 2008.
Platinum, which is starting to draw my interest, basically went straight up during the month of February to its peak price of $2,273 per ounce. Then it experienced three months of nearly continuous declines from mid-July to mid-October where it reached its low of $743 per ounce. At its high it was up nearly 50%, at its low it was down more than 50%. Briefly, the price of gold exceeded the price of platinum, but the situation has now reverted to the norm.
Silver experienced a similar plight, up more than 40% at its peak and down more than 40% at its low. The period of decline also took place from mid-July to mid-October. Many have pointed to the enormous concentrated short position taken by a handful of banks in July as responsible for the decline.
On a housekeeping note:
Sorry for the lack of posting on Gold and Silver Blog during the end of December. I should be back on a regular schedule for the new year. I aso plan to add some new sections to the site, which compile historical data relevant to gold and silver watchers. Thanks for reading and let's make 2009 a great year!
Investing in Rhodium, GLD ETF Holdings, COMEX Delivery
I haven't had a round up in some time, so here's one to bring us up to date with some of the most interesting gold, silver, and precious metals related stories found around the internet.
Rhodium: The Ultimate Reflationary Trade
After reaching a high of $10,010.00 per ounce, rhodium collapsed more than 90% to a low of $760 per ounce. As one of the rarest metals on the planet, is it time to buy?
Don't Miss the Coming Gold Bull
A well written article, which gives an excellent outline of the bullish case for gold.
Biggest Gold ETF Holds Its Weight
Holdings of the SPDR Gold Shares exchange traded fund (GLD) held record levels of gold at the end of 2008, signaling firm underlying demand for gold.
A Nevada Town Escapes the Slump, Thanks to Gold
Quote from the story: "Times are good around here. People are happy." When's the last time you heard someone say that?
Is the Comex Doing Fractional Reserve Delivery of Gold?
A small precious metals fund reports that they were promised delivery of certain weights and serial numbered gold bars from the COMEX. The following day they were informed that they would instead be issued a "Warehouse Delivery Receipt" in place of the gold bars. Is something fishy going on?
2008 US Mint Gold, Silver & Platinum Bullion Coin Sales
With the dust somewhat settled for the prior year, we now have some complete US Mint sales data on sales of gold, silver, and platinum bullion coins. As expected, the numbers show some large percentage increases from prior year sales. In particular silver bullion sales reached an all time record high with sales of nearly 20 million ounces.
While the bullion coin sales figures go a long way to highlighting the immense demand for physical precious metals experienced in 2008, it's only part of the picture. These strong numbers were achieved amidst periodic suspensions and rationing programs which impacted all bullion coin programs at one point or another during the year.
Sales of silver bullion coins were suspended on February 4, 2008 and again on March 19. Sales were resumed more than one month later on April 21, but on a rationed basis. Similarly, gold bullion coin sales were suspended and then resumed on a rationed basis. And finally, sales of some platinum and gold coins were ended prematurely, prior to the end of the year.
2008 US Mint Gold Bullion Coin Sales
| Coins | Ounces | |
| 1 oz Gold Eagle | 794,000 | 794,000 |
| 1/2 oz Gold Eagle | 50,000 | 25,000 |
| 1/4 oz Gold Eagle | 58,000 | 14,500 |
| 1/10 oz Gold Eagle | 270,000 | 27,000 |
| 1 oz Gold Buffalo | 171,500 | 171,500 |
| Total | 1,343,500 | 1,032,000 |
The US Mint sells a 22 karat gold coin known as the American Gold Eagle. This coin is sold as a one ounce coin as well as in 1/4 ounce, 1/2 ounce and 1/10 ounce fractional denominations. The US Mint also sells a 24 karat one ounce gold coin known as the American Gold Buffalo. Gold Eagles have been sold since 1986 and Gold Buffaloes have been sold since 2006.
Across all options, the US Mint sold 1,032,000 ounces of gold through its bullion coin programs in 2008. This represented a jump of more than 78% from last year's combined total of 577,000 ounces of gold. Notably, the total for 2008 is still far from the all time high of 2,055,500 ounces reached in 1999.
2008 US Mint Silver Bullion Coin Sales
| Coins | Ounces | |
| 1 oz. Silver Eagle | 19,583,500 | 19,583,500 |
The US Mint sells a one ounce silver bullion coin known as the American Silver Eagle. These bullion coins have been sold since 1986.
For 2008, the US Mint reached an all time record for ounces of silver sold through their bullion program at 19,583,500 ounces. This represents a 98% increase from last year's sales of 9,887,000 ounces of silver. The previous record for ounces of silver sold through the US Mint's bullion coin program was set in 2002 with 10,475,500.
2008 US Mint Platinum Bullion Coin Sales
| Coins | Ounces | |
| 1 oz. Platinum Eagle | 20,800 | 20,800 |
| 1/2 oz. Platinum Eagle | 12,800 | 6,400 |
| 1/4 oz. Platinum Eagle | 20,800 | 5,200 |
| 1/10 oz. Platinum Eagle | 13,000 | 1,300 |
| Total | 67,400 | 33,700 |
The US Mint sells 99.95% platinum bullion coins known as the American Platinum Eagle. These coins are available in one ounce as well as 1/2 ounce, 1/4 ounce, and 1/10 ounce fractional sizes. The platinum bullion coins have been offered since 1997.
During 2008, the US Mint sold 33,700 ounces of platinum through their bullion program. This was up 272% from last year's platinum bullion coin sales of 9,050 ounces. The all time record for platinum bullion sales by the US Mint was 175,650. This record was set in 1998 when platinum was significantly cheaper.
Analysts Pile on the Gold Bull
Gold's recent move above $900 has analysts scrambling to increase their price targets.
The last time I looked at gold price targets from analysts was in early December, when a similar flurry of activity took place. Morgan Stanley got the ball rolling by saying that gold could reach $1,000 in three years, Merrill Lynch followed with a price of $1,500 at an unspecified date, and Citigroup topped them all by mentioning $2,000.
This time around started in the same way with Morgan Stanley making a timid call for $1,075 gold in three years. From their report: "A globally synchronous and aggressive fiscal and monetary stimulus may be needed to re-inflate the global economy, and we think this continues to present significant upside to gold prices." For their rhetoric, their target price is ridiculous, unless you consider "significant upside" to be a 6% annual gain for three years.
Merrill Lynch chimed in next with their Chief Investment Officer reiterating their prediction of $1,500 gold, but this time with a time frame of 12 to 15 months. Quote from the CIO: "With confidence in currencies shaken to the core, the yellow metal is increasingly assuming the role of “the most trusted currency. We have never seen such a rush to buy gold. It’s bringing in security and it’s still affordable."
A few days following, both UBS and Goldman Sachs updated their previously underwater gold price targets. UBS raised their 2009 price target from $700 to $1,000. Goldman Sachs raised its forecast of $700 to $1,000 within a three month time frame.
As expressed before, I do not think we have reached the point where these periodic analyst pile ons can be used as a contrary indicator for gold. Analysts are still showing restraint, and for the most part raising their targets simply to keep up with the rising price of gold.
Gold, Silver, and Platinum Year To Date Performance
Gold, silver, and platinum have all been strong performance so far this year, but which has done the best? The table below presents the price of gold, silver, and platinum at the start of the year, today's price, and the change. The performance of the S&P 500 is thrown in for good measure.
| 31 Dec 2008 | 17 Feb 2009 | Change | ||
| Gold | 869.75 | 968.00 | 98.25 | 11.30% |
| Silver | 10.79 | 13.90 | 3.11 | 28.82% |
| Platinum | 898.00 | 1,083.00 | 185.00 | 20.60% |
| S&P 500 | 903.25 | 789.17 | (114.08) | -12.63% |
Silver has been the best performer so far this year with a gain of 29%, followed by platinum with a gain of 20.6%, and gold with a gain of 11.30%. The S&P 500 is down over 12%.
Silver and platinum were both down significantly in 2008 (see 2008 precious metals performance) so they are making up for some of their lost ground. Gold is continuing its moderate but steady price appreciation. Gold has had a positive return every year for the past eight years, even amidst the wild fluctuations in virtually every other asset class.
The line up above looked somewhat familiar, so I also decided to pull price data for the exact same time period, but one year earlier. Here is the result:
| 31 Dec 2007 | 17 Feb 2008 | Change | ||
| Gold | 833.75 | 912.50 | 78.75 | 9.45% |
| Silver | 14.76 | 17.38 | 2.62 | 17.75% |
| Platinum | 1,530.00 | 2,060.00 | 530.00 | 34.64% |
| S&P 500 | 1,468.36 | 1,349.99 | (118.37) | -8.06% |
As you can see, last year started off eerily similar. Stocks were weak and precious metals were strong, led by platinum and silver. Gold, silver, and platinum would all rise to their peak prices in early March. After that prices started to deteriorate, and then deteriorate at an accelerated pace as the wheels fell off the stock market.
Will this be a break out year for previous metals, or a re-run of last year?
Examining the Gold ETFs, Gold Reaches New Highs
With gold continuing its run, there's been plenty of gold appearances in the mainstream press. But the more interesting discussions usually happen elsewhere. Here's a few noteworthy blog posts and articles related to gold.
One thousand tonnes in the trust!
The SPDR Gold Shares ETF continued its rapid inventory growth and surpassed one thousand tonnes this week. An astounding 229 tonnes have been added so far during 2009.
Where do all the gold etfs get their bullion from?
While many mainstream news reports were quick to highlight the one thousand tonne level, others started raising questions. In an atmosphere of gold scarcity, where are the Gold ETFs getting the gold for their massive daily additions?
Ten Reasons to Avoid the Gold ETF
Elaborating on the above, an article that will make you seriously reconsider any investments in Gold ETFs.
Gold Around the Globe: Setting Records
While gold in US Dollars is still laboring below its all time high reached last March, gold in other major currencies has been setting new all time highs.
Gold Coin Shortage and Sales Trends, Dollar-Gold Relationship
With gold fluctuating around the $900 level, let's take a look at some thought provoking gold and silver related stories from various blogs and news sites.
Incredibly, he claims that there is no shortage of gold and silver coins.
What happened was all the dealers went and bought huge silver supplies back when silver was at $20 and now their stuck and they don’t want to take a loss and so they are telling people they don’t have coins. I promise you sir if you offer $25 for silver coins you’d get all you wanted. There is no shortage."
He goes on to say the same thing about gold coins.
Gold Coin Shortage Likely To Become Chronic
And here's the more popular conclusion- Yes, there is a gold coin shortage. This is supported by anecdotal evidence, gold coin rationing by world mints, and high prices paid for physical gold and silver in liquid markets.
APMEX Gold and Silver Sales Data
Some first hand sales data from precious metals dealer APMEX. From 2007 to 2008 the number of orders for gold increased 262% and the number of orders for silver increased 358%.
With economy tanking, 'liberty' coins made of silver are paying off
Remember the Liberty Dollar? It seems that in commerce, most vendors are more than happy to take them in lieu of paper money.
If you are hoarding physical gold, where do you keep it? Here's an examination of the pros and cons of various methods of gold storage.
Briefly the US Dollar and Gold had a price correlation of 100%, taking into consideration the prior 15 trading days. The odd correlation has recently reversed sharply.
Source for GLD Gold, SLV Silver Exceeds Capacity, Fort Knox Gold Audit
As gold turns lower on reports of a "turning point" for the entire global economy, let's take a look at some thought provoking gold, silver, and precious metals related stories from other news sites and blogs. This round up includes stories on the Gold ETF and Silver ETF, a call for a return to the gold standard, Fort Knox, and prospecting for gold.
Where does the Gold ETF get its gold?
As the SPDR Gold Shares ETF marked a series of succesive all time highs for tonnes in the trust, many people started asking questions about where the gold was coming from. Here's the answer.
SLV exceeds its silver storage capacity
Discussed in the Got Gold Report, the holdings for the iShares Silver Trust SLV have exceed the storage space allowed under its custodian agreement as the holdings reached another new high.
Russia backs return to Gold Standard to solve financial crisis
Following China's call for a new world currency, Russia suggests that gold should be included in the basket-weighting.
Is there any gold inside Fort Knox?
It's been decades since an independent audit of the reported $137 billion in gold stockpiled in Fort Knox has been independently audited. Ron Paul is pursuing a Bill to conduct an independent audit of the entire Federal Reserve System. Separately, GATA plans to file Freedom of Information requests for full disclosure of US gold ownership and trading activities.
Trace Mayer, J.D. announces the availability of The Great Credit Contraction, which is a foundational document for much of the writing on his site Run to Gold.
Believe it or not, people are making money prospecting for gold in California. One prospector claims to have made $10,000 during one good day.
Letseng Mine Produces 18th Largest Diamond
Letseng Mine in Lesotho, operated by London-based Gem Diamonds Limited, was the source of a recently announced 494-carat diamond discovery, which makes it the 18th largest diamond ever found. The newly recovered diamond has not yet been named, but that will probably occur after the stone is examined in Antwerp to determine its quality.
The Letseng Mine has become famous for its large diamonds, in particular three of the world’s twenty largest diamonds. A 603-carat diamond, named Lesotho Promise, was recovered from the Letseng Mine In August of last year and is currently the 15th largest rough diamond ever found. The Lesotho Promise sold in October 2006 for $12.4 million. The average value per carat of production from the Letseng Mine is nearly 20 times the industry production average.
The Letseng Mine includes production from two kimberlites (main and satellite), that are estimated to contain $4.7 billion in recoverable resources. Gem Diamonds Ltd. operates this exceptionally productive diamond mine and has 70 percent ownership with the Kingdom of Lesotho owning the remaining 30 percent.
Gem Diamonds Ltd. has aggressively purchased exiting diamond mines and then rehabilitates the operations. Earlier this year, the company bought the Gope deposit in Botswana and BDI Mining in Indonesia. It still has an open bid for Australian-based Kimberley Diamond Company and owns projects in Congo, Angola, and the Central African Republic. Almost all of the company’s revenues come from the Letseng Mine, purchased in June 2006, which is one of only a few revenue-producing projects thus far.
The newly discovered 494-carat diamond is insured for $15 million until its true value can be determined. The diamond will be sold in Antwerp, using the tender sales approach, since that marketing strategy was so successful for the Lesotho Promise a year ago.
The Letseng Mine certainly makes the headlines with its large diamond discoveries and Gem Diamonds Ltd. hopes it will be the cornerstone of its business plan to become one of the leading diamond producing companies in the world.
Check out other articles about the Letseng Mine and its exceptional diamonds.
