Diamond News Archives

(Bloomberg) -- Central banks bought more bullion last year than anytime since 1971, when the U.S. ended the gold standard.

Governments added 651.5 tons of gold to their coffers in 2018, a 74 percent increase from the previous year, according to a report from the World Gold Council.

Russia, which is "de-dollarizing" its reserves, was the biggest buyer, followed by Turkey and Kazakhstan. Hungary also made a large purchase, citing gold’s lack of counterparty risk and role as a hedge against changes in the international finance system, the WGC said.

“Central banks chose to significantly increase their gold reserves, reinforcing the importance of gold as a reserve asset,” the WGC said.

Central banks are expected to acquire an additional 600 tons this year, according to the consulting firm Metals Focus Ltd. The buys, which will help the banks diversify their foreign-exchange assets in a time of extraordinary political volatility, signal a growing confidence in the metal’s value moving forward.

The banks "were not net buyers even a decade ago," said Juan Carlos Artigas, director of investment research at the WGC, in a telephone interview. "As their foreign reserves expand, they are increasingly diversifying away from pure dollar exposure."

Slowing global growth, a weaker U.S. dollar and a drive by central banks to expand the amount of gold they hold could be a winning trifecta for investors seeking a recovery in the metal’s price after its first annual loss in three years.

Gold prices ended 2018 little changed, but rallied toward the end of the year amid concerns about Brexit, a falling stock market and expectations for a less aggressive U.S. monetary policy. The trend has continued this month, with bullion climbing to the highest since May.

To contact the reporters...

Jim Watson | AFP | Getty Images

US Federal Reserve Board Chairman Jerome Powell holds a news conference after a Federal Open Market Committee meeting in Washington, DC, December 19, 2018.

In the six weeks since a confident U.S.^[1] Federal Reserve raised interest rates in response to a "strong" U.S. economy, consumer confidence dropped, wholesale prices weakened, financial markets wobbled and home sales fell.

Further afield, China^[2] tried to boost lending for its slowing economy, the European Central Bank acknowledged ebbing growth in the euro zone, and the International Monetary Fund cut its world economic growth forecast and warned that global trade had nosedived as major nations squabbled about tariffs.

As they conclude their latest two-day policy meeting on Wednesday, Fed policymakers will have to decide how big a risk all of that poses to the near-decade-long U.S. economic expansion.

Their task is made more difficult by the delayed release of key economic data due to the recent 35-day partial shutdown of the U.S. government, including important reports on retail sales and gross domestic product.

If the case for caution wasn't strong enough, the sudden onset of a thick economic fog has made it so, analysts said ahead of this week's policy decision....

References

1. ^{^} U.S. (www.cnbc.com)
2. ^{^} China (www.cnbc.com)

(IDEX Online) – ALROSA has expanded its long-term customer list in 2019 within its 2018-2020 three-year contract period.<?xml:namespace prefix = "o" ns = "urn:schemas-microsoft-com:office:office" /?>

Six customers who, from the beginning of 2018, were ALROSA ALLIANCE participants and candidates for the possible signing of long-term agreements obtained long-term customer status. Chow Sang Sang Jewelery (China), Kapu Gems (India), Mohit Diamonds (India), VD Global (India) and M. Suresh Company (UAE) joined the list of ALROSA's long-term clients, while Richold SA from Switzerland has joined the list for the first time. Thus, today ALROSA supplies gem-quality diamonds under 59 long-term contracts and technical diamonds - under 10 contracts.

In addition, two Belgian companies, H.D. Diam BVBA and IGC Group NV (former spot clients of ALROSA), supplemented the list of candidates for the possible conclusion of long-term agreements, and ALROSA ALLIANCE agreements will be signed with them.

"Long-term contracts form the basis of ALROSA's sales policy accounting for up to 70% of sales of diamonds mined by the company," said Evgeny Agureev, Member of the Management Board, Director of the United Sales Organization at ALROSA. "We confirm the inviolability of ALROSA ALLIANCE principles and are interested in diversifying our client base, which has grown compared to last year. At the same time, we focus on confirmed manufacturers of polished diamonds and products with them.

"Since 2018, the company has a new three-year contract period. Following the results of the first year, we revised the list of long-term clients. Six companies, including the largest representatives of the jewelry industry, confirmed their trading activity, being the most effective of all candidates for inclusion in long-term clients list. At the same...

Precious gemstones miner Gemfields has chosen to pay £5.8 million (about $7.8m) to community members residing near its Montepuez ruby mine in Mozambique, in a “no admission of liability” move that settles a claim of human rights abuses brought against it by locals.

Leigh Day, the London-based law firm representing a group of 273 Mozambicans, argued last year that security forces employed by the miner had shot, beat and subjected its clients to humiliating treatment and sexual abuse.

Gemfields, which describes itself as “a leading supplier of responsibly sourced coloured gemstones,” always maintained it was not liable for the alleged incidents, but has taken the view that the agreed settlement “best balances the interests of the assorted stakeholders” and avoids tainting the company's relationship with sections of the local community, the company said in a statement.

“We wish to ensure that we are regarded as trusted and transparent partners … rather than legal adversaries,” chief executive Sean Gilbertson said of the relationship with the Montepuez community going forward.

“These incidents should never have happened. However, we commend Gemfields for engaging constructively to resolve this case promptly and for putting in place an independent grievance mechanism,” Leigh Day partner, Daniel Leader, commented.

Early last year, the company put up a voluntary announcement in which it acknowledged that, in the past, instances of violence had occurred on and around the licence area, "both before and after Gemfields' arrival in Montepuez."

In addition to the settlement amount, the company is setting up an independent operational grievance mechanism to enable community members to lodge complaints more easily. It has also committed to creating a...