China Drives Diamond Demand Growth

De Beers marketing and increased Western influence in China is proving to be a boon for the diamond industry. Traditionally, diamond rings had no place in the wedding culture in China but that has changed.

Chinese diamond jewelry purchases are projected to grow 12 percent this year from almost $2 billion in 2006 sales. In the first half of 2007, China’s diamond imports tripled and with diamond wedding rings representing about a third of diamond purchases, that means many brides in China are now wearing diamond rings.

Hong Kong set the stage for China thirst for diamonds. The influx of money into Hong Kong in recent decades created a passion for luxury goods. The top luxury brands set their stakes in Hong Kong years ago and the marketing focus on those brands has resulted in higher priced jewelry purchases. Because prices in Hong Kong are 20 to 40 percent lower than on the mainland, much of China’s luxury shopping was done in Hong Kong but the trend is changing. Now that mainland Chinese shoppers are brand savvy, they are demanding and getting higher-end retailers closer to home. Diamond shoppers in China got good news last year with the value-added tax reduction on imported diamonds.

The enormous population in China coupled with the thriving economy translates into a massive potential for diamond purchases. More grooms will be learning about diamonds online so they can make find the best diamond for their intended brides. Marilyn Monroe’s “Diamonds are a Girls Best Friend” is taking on new meaning for millions for jewelry shoppers in China.

Blue Diamond Sells for $7.98 Million

Sotheby’s recent Hong Kong auction was the site of a record-breaking diamond sale. The 6.04-carat fancy vivid blue diamond, cut in the emerald shape, sold for $7.98 million. The internally flawless sold for $1.32 million per carat, which is a new price per carat record for any gemstone ever sold. The combination of the rare blue color, the internally flawless color, and the large carat weight for a blue diamond make this an exceptional stone among world-class diamonds.

The previous owner of the diamond was a private Asian collector and the new buyer is Moussaieff Jewellers, a London based jeweler with a reputation for acquiring some of the world’s most valuable gemstones.

Blue diamonds have always captured attention because of their rarity and beauty. There are entire books written about the most famous blue diamond, the 45.52-carat Hope Diamond, displayed in the Smithsonian Institute in Washington, DC. The Hope Diamond started out as the 112.25-carat French Blue discovered in India, which was a source of blue diamonds from 1500-1700.

In recent history, South Africa has been the location of blue diamond discoveries, almost exclusively at the Premier Mine. Some other famous blue diamond sales include a 1994 Sotheby’s sale of a $9 million for a 20.17-carat blue diamond ($460,000 per carat). In 1995, a 6.70-carat blue diamond sold for $3.52 million ($525,000 per carat).

Hong Kong was an appropriate location for the record-breaking sale because diamond shoppers there are notorious for their thirst for luxury diamonds. Hong Kong is the king of glitz in Asia, especially for colored diamonds. Colored diamond sources are diminishing so the rare pinks and blues are becoming increasing popular with serious collectors in Europe, the United States, and Asia.

2.28-carat Diamond Discovered at State Park

Bill Tryhall, from Albuquerque, was the latest visitor at Crater of Diamonds State Park in Arkansas to find a diamond weighing over two carats. Tryall was vacationing with his two brothers October 10 when he found the diamond.

The 2.28-carat diamond was the 725th diamond discovered at the park this year. Crater of Diamonds is the world’s only diamond “mine” open to the public and where visitors can keep the gems they find. In addition to diamonds, visitors can prospect for garnet, quartz, lamproite, jasper, amethyst, and many other minerals.

Competitive Argyle Pink Diamond Tender

The 2007 Rio Tinto Diamonds Argyle Pink Diamond Tender has concluded with great success. Some of the rarest and most beautiful diamonds in the world were for sale and examined by a select group of invited buyers in Perth (September 11-14), Hong Kong (September 18-28) and New York (October 1-12). About 100 prospective buyers were invited to examine the diamonds in secret locations, and then submitted bids for one or more of the 65 specially selected pink diamonds.

The rules of the tender prohibit announcement of the 17 successful bidders, the winning bids, or even the sales total for the tender. The special Rio Tinto tender pink diamonds have been know to get prices of as much as $400,000 per carat, forty times that of white diamonds. Recent projections that pink diamonds from the Argyle mine are expected to run out by 2018 have increased the public and industry’s awareness of their rarity and perceived value.

This year’s tender was exceptional due to the range of vivid and deep colors with deep pinks, purplish reds, and a rare gray-violet colored diamond.

Rio Tinto Diamonds Argyle mine started production in 1985 and the open pit mine operates 24 hours a day, 265 days a year. The open pit’s normal life ends in 2008 but Rio Tinto has extended its life to 2018 with low-grade production expansion in the pit and new underground operations. Historically, 60 to 80 million tons of material are extracted from the open pit operations, resulting in about 9 million tons of diamond-bearing ore and between 25 and 30 million carats of diamonds. Moving beyond 2008, production is projected fall to about half of current operations.

Only about 5% Argyle’s production is gem quality diamonds and only an extremely small portion of those are pink diamonds. It is certainly no exaggeration to say that the annual Rio Tinto Diamonds Pink Tenders contain exceptionally rare diamonds.

4.38-Carat Discovered in Arkansas

Chad Johnson moved to Murfreesboro, Arkansas from Iowa in February. Unlike most visitors to Crater of Diamonds State Park who are tourist, Chad has been trying to support himself based on the diamonds he finds at the park. He has found about 80 diamonds thus far but Monday’s discovery of a 4.38-carat tea-colored diamond was his biggest find.

As is common practice at Crater of Diamonds, visitors sift through dirt to separate out the collectable gemstones and minerals, always with the hope of finding a big diamond. Chad had put his sifting equipment in a locker when he finished digging Saturday but discovered the cube-shaped diamond stuck in his sifter when he started his dig on Monday.

While diamonds are mined every day in countries around the world, Crater of Diamonds State Park as the only location open to the public. Since 1972, visitors have been able to keep the gems they discover in the park. The park officials make every effort to help the visitors by plowing up fields to expose fresh soil but it still takes a hard work, patience and considerable luck to find diamonds, especially as big as the 4.38-carat.