Diamond News Archives

Gold traded higher overnight in a range of $1197.30 - $1204. It ticked down to its $1197.30 low during Asian time and into early European hours, as the dollar advanced (DX to 95.91).

The greenback was helped by weakness in the euro ($1.1520 - $1.1487) on some positioning ahead of the US Payroll report and some renewed jitters over Italian politics.

Later during European time, however, gold climbed to its $1204 high as the DX pulled back to 95.74 against some strength in the pound ($1.3005 - $1.3060) on reports that Brexit divorce deal is very close.

Weaker global stocks were a tailwind for gold as the NIKKEI fell 0.6%, China was still closed, European shares were off from 0.4% to 0.6%, and S&P futures were -0.1%. A modest dip in oil prices from near four-year highs (WTI from $74.70 - $74.30) weighed on stocks.

At 8:30 AM, the much awaited US Payroll Report was a mixed bag. The headline Non-Farm Payroll figure missed considerably (134k vs. exp. 180k), and markets (algorithmic trading) slammed S&P futures lower (-9 to 2898) and knocked the US 10-year yield down from 3.206% to 3.187%.

The DX tumbled to 95.70, and gold took out the overnight high to reach $1204.75. However, after a closer look, a more robust Report emerged: the last 2 months were revised up (+87k), Unemployment Rate dipped to 3.7% vs. exp. 3.8% (lowest since 1969), while Average Hourly Earnings were 0.3% as expected.

Also, many analysts pointed to the effects of Hurricane Florence as a mitigating factor for the lower payroll gain. As a result, markets gyrated wildly while participants digested the data, with gold trading in a choppy fashion between $1200 and $1204.75 as the DX ranged from 95.57 – 95.95....

Lab-grown diamonds, made for decades as an inexpensive alternative to mined stones for industrial purposes, are cracking the consumer market largely thanks to millennials' evolving shopping tastes.

In a survey of 1,000 consumers aged between 21 and 40, half of which had household incomes of $50,000 or higher, nearly 70% said they would consider buying a lab-grown diamond for an engagement ring, MVI Marketing revealed earlier this year. That was a 13 percentage-point increase from the year before, when 57% said the same.

Many claim that despite lab-grown diamonds increasing popularity, mined ones remain a superior choice. But Eric Lindberg, executive chairman of Canada’s Spence Diamonds, disagrees.

“We think that it’s wrong to assume there’s one ‘superior choice’ for all consumers. Our approach, and what we hope more of the industry will adopt, is to be advocates for our customers and to provide them with the best possible educational and shopping experience, including all options that may be appropriate for them,” he told MINING.com.

Synthetic diamonds have the same physical and chemical features as mined stones. They’re made from a carbon seed placed in a microwave chamber and superheated into a glowing plasma ball. The process creates particles that can eventually crystallize into diamonds in just 10 weeks. The technology is so advanced that experts need a machine to distinguish between...

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Many bond funds, by mandate of their charters, are not allowed to invest in junk-rated bonds. It's a safeguard to prevent their managers from chasing higher yields and taking on more risk than is deemed appropriate for the fund's stated investment goals.

On one side, you have debt rated BBB and better. This is so-called "Investment Grade" debt. Make no mistake, BBB-rated debt is much riskier than AAA-rated, but it's still technically "Investment Grade^[1]." To learn more about bonds and bond investing check out this great article titled Investment Guide: Bonds from our friends at InvestmentCanvas.

It's a clear, bright line. The highest-rated bonds, issued by very stable companies with strong balance sheets who are nearly certain to be able to pay investors back, are rated AAA, four steps above junk status. BBB is one downgrade away from being junk. But they are both "Investment Grade."

This is a crucial designation for many bond funds. BBB-rated, risky as it is, provides the highest yields, and per the limitations of their charters, they can still invest in it. This makes it exceedingly popular among fund managers who will maximize risk as they seek to maximize returns.

For now, these funds can gorge at the trough of BBB near-junk without hesitation or limit. Which has made BBB-rated debt the fastest growing credit subset of debt in the corporate market.

But in an economic downturn, and certainly in a recession, mass downgrades of debt are routine. And what will happen to these bond funds when their BBB-rated debt gets downgraded just a single notch to BB? They have to sell it. All of it. Because now, suddenly, it's junk.

The simultaneous forced liquidation of this bloated and massive risky debt rating class is a single downgrade away.

Finally, the chart that should give you chills if your fund is...