Diamonds & Engagement Rings News

Natural History/Formation

           The formation of natural diamond requires very specific conditioning. Diamond formation requires exposure of carbon-bearing materials to high pressure, ranging approximately between 45 and 60-kilo bars.  These conditions are known to be met in two places on Earth; in the lithosphere mantle below relatively stable continental plates, and at the site of a meteorite strike. 

Diamonds formed in cratons

                 The conditions for diamond formatting to happen in the lithospheric mantle occur at considerable depth corresponding to the aforementioned requirements of temperature and pressure. These depths are estimated to be in between 140-190 kilometers (90-120 miles). 

          The correct combination of temperature and pressure is only found in the think, ancient, and stable parts of continental plates where regions of lithosphere known as cratons exist. Long residence in the cratonic lithosphere allows diamond crystals to grow larger.

     In December 2007 Global polished diamond prices. Polished diamond prices in December 2007 were up nearly 5 percent over the same month a year ago, and  diamond prices rose 102 percent in December over November 2007, the largest month-to-month gain of the year.          

   The outlook for polished diamonds prices is bullish. While the U.S jewelry market appears to be soft, other regions of the world are posting solid sale gains for diamond jewelry, especially for larger carat, high quality goods. As long as the demand for diamonds and diamond jewelry remains strong, prices will likely rise.          

     For the month of December 2007, average global polished diamonds prices by 1.2 percent versus average diamond prices November 2007.          

        Comparisons are based on the daily average prices during the month versus the same month a year ago (e.g. December 2007 versus December 2006). The year-to-year comparison takes into account the seasonality of polished diamonds and prices.

      Polished prices constantly rose through the month of December. There was two price spikes: one early in the month and one mid-month. Sluggish trading at the end of the month yielded some modest softness in prices, but this is a momentary seasonal pause, which often occurs. Diamond Demand Strong for Large Sizes.         

     Retail jewelers have been saying for some time that their customers want larger, better quality diamonds. Recent price trends for polished diamonds confirm this trend. Large stones showed a dramatic price increase in December, based on month-over-month comparisons, while prices of diamonds in the one two carat range were up only modestly. As in past moths, diamonds below one-half carat in size posted lower prices.          

     On a year comparison, polished diamond prices showed an even greater bias. Prices for larger stones in the four-to-five carat range rose much more sharply while prices of stones, two carat and smaller posted only a small gain.          

     Over the three-year period, the price of all polished diamonds has risen by about 11 percent. Rough diamonds prices are rising at a pace faster than polished diamond prices. There is much pressure on cutters and polishers to raise their prices, a trend that is likely to continue.   

            Watch seller Alpha Omega switched to high end jewelry, but with lots of inventory and few customers he was soon on the road to bankruptcy. 

‘’Raman Handa’s was an immigrant success story’’          

     After leaving India and opening a store in Harvard store almost three decades ago, he built his Alpha Omega Jewelers into a well-known chain by showcasing luxury watches from Rolex, TAG Heauer, and Mavado and enticing actors, politicians, and other celebrities to shop in his stores.          

     Later on in life he was temped by the bigger profit margins. He enjoyed the purveyors of fine jewelry.          

     Handa wound up stuck with unsold stock, according to documents filed in the US Bankruptcy Court this week that lay out details of the jeweler’s rise and fall. The value of the inventory soared almost 80 percent, from about $15.1 million at the end of 2002 to about $27 million in the fall of 2007- due to what now looks like an overly ambitious expansion into a new market.          

     Sales went from $35.8 million in 2006 to an anticipated $25 million in 2007.

Unpaid bills began pilling up lastspring.                     

     As there livelihood began to unravel, the Handa family mortgaged their two-arce Lexington estate for $1.5 million last fall, in an effort to restructure Alpha Omega while seeking a buyer or investor.          

     Around December 12^th, Handa admitted himself to a hospital, and a few days later he left the country with his family.( a step that prompted his banker)          

     The company owed more then $12.7 million to suppliers; other then creditors, including The Boston Globe is owed more then $1 million more. This is all according to the bankruptcy filling.          

     The inventory was estimated to be worth $18.7 million on Dec. 31. Which would mean the joint venture’s bid is worth about $12.1 million. The actual value of the inventory is expected to change as items are sold while the auctions proceeds.          

     Alpha Omega expects its stores to be open for business through the end of auction, which is tentatively slated for late January.          

     Acording to Alpha Omega, the top three creditors are Rolex Watch USA Inc., with a $1.46 million claim; The Boston Globe, $1.15 million; $1.15 million; and swatch Group U.S., $665,985.

       “More than any other jeweler I’ve ever seen’’,said, Richard Caso, a manager at De Scenza Diamonds and a member of its advertising board.         

     Alpha Omega spent about $1.9 million on ads in 2006.           Lawyers that are handling Alpha Omega cases said that they have been in touch with Handa with either phone or email since his departure, but since Christmas they have not received updates on his whereabouts or his timetable for returning.          

      Amit and Nidhi Handa, the son and daughter who hold senior positions in the family business, had traveled to England to meet with advisors about restructuring the company, according to the bankruptcy filing. Neither responded to interview requests left on their cell phones and sent online over the past week.            

     On Dec.21, Handa and his wife- the companies sole directors-gave their consent via email to appoint O’Hara as chief restructuring officer and file for bankruptcy protection. They also agreed to bring in inventory liquidation specialists, Tiger Capitol Group LLC, to sell the chain assets.  

          The new management reopened the stores over the next two days and rehired the 100 employees, who days earlier were told they were being laid off.