Gold roses, anyone?

The roses, which were made of Au99.99 gold foil were displayed in the shape of a heart at a jeweley store in Nanjing, the capital of East China's Jiangsu province on Dec 15.

They are worth 600,000 yuan (US$90,165) and were bought by a man, whose surname means 'gold' in Chinese, according to an online report.

UAE hotel erects 11-million-dollar Christmas tree

ABU DHABI (AFP) - – Christmas came in extravagant fashion to the Muslim desert emirate of Abu Dhabi as a glitzy hotel unveiled a bejewelled Christmas tree valued at more than 11 million dollars on Wednesday.
It is the "most expensive Christmas tree ever," with a "value of over 11 million dollars," said Hans Olbertz, general manager of Emirates Palace hotel, at its inauguration.
The 13-metre (40-foot) faux evergreen, located in the gold leaf-bedecked rotunda of the hotel, is decorated with silver and gold bows, ball-shaped ornaments and small white lights.

But the necklaces, earrings and other jewellery draped around the tree's branches are what give it a record value.

It holds a total of 181 diamonds, pearls, emeralds, sapphires and other precious stones, said Khalifa Khouri, owner of Style Gallery, which provided the jewellery.

"The tree itself is about 10,000 dollars," Olbertz said. "The jewellery has a value of over 11 million dollars -- I think 11.4, 11.5."

This will probably be an entry into the Guinness book of world records, Olbertz said, adding that Emirates Palace planned to contact the organisation about the tree which is to stay until the end of the year.

Asked if the tree might offend religious sensibilities in the United Arab Emirates, where the vast majority of the local population is Muslim, Olbertz said he did not think it would. "It's a very liberal country," he said.

The hotel has had a Christmas tree up in previous years, but this year "we said we have to do something different," and the hotel's marketing team hatched the plan, said Olbertz.

The tree is not the first extravagant offering from Emirates Palace -- a massive, dome-topped hotel sitting amid fountains and carefully manicured lawns.

The hotel, which bills itself as seven-star, in February introduced a package for a seven-day stay priced at one million dollars.

Takers of the package have a private butler and a chauffeur driven Maybach luxury car at their disposal during their stay, as well as a private jet available for trips to other countries in the region.

And in May, the hotel opened a gold vending machine, becoming the first place outside Germany to install "gold to go, the world's first gold vending machine," said Ex Oriente Lux AG, the German company behind the machine.

Diamond swapper nabbed

A MAN has been arrested for swapping real diamonds with replica diamond crystals at goldsmith shops.

Police arrested the 38-year-old suspect on Thursday night.

The man entered busy goldsmith stores, pretending as if he wanted to purchase a one-carat diamond and asking to examine it.

He would wait for the shop attendant to look away or attend to other customers before swapping the genuine diamond for the fake. The man would then leave the store claiming he needed more time to consider.

The suspect was caught near Yio Chu Kang MRT station in an operation staged on Thursday.

He will be tried in court for cheating on Saturday under Section 420 Chapter 224. If convicted, he faces imprisonment of up to 10 years and shall also be liable to fine.

Pink diamond sells for record $46M at auction

GENEVA – A rare pink diamond smashed the world record for a jewel at auction Tuesday, selling for more than $46 million to a well-known gem dealer.
London jeweler Laurence Graff paid $46,158,674, for the 24.78-carat "fancy intense pink" diamond, which he immediately named "The Graff Pink."
"It is the most fabulous diamond I've seen in the history of my career and I'm delighted to have bought it," Graff said in a statement released by auction house Sotheby's, which offered the stone at its Geneva sale.
The sale price was almost double the $24.3 million achieved by the blue 35.56-carat Wittelsbach-Graff diamond in 2008. That was also bought by Graff.
"This is the highest price ever bid for a jewel at auction," said David Bennett, the head of Sotheby's jewelry division, as the auction room in Geneva's luxury Beau Rivage hotel erupted into applause.
"Everybody was surprised it went that high," Mart van Drunen, a jeweler from Amsterdam, commented after the sale. "He clearly wants to have all the rarest diamonds in the world."
Rich buyers from developing countries have been dipping their hand in the high end of the market in recent years, but experts say emerging middle classes particularly in India are doing as much if not more to lift prices. Ongoing doubts about the stock market have also helped drive up the value of gold and precious jewels, said van Drunen.
Four bidders competed for the pink diamond, which was last sold 60 years ago by New York jeweler Harry Winston. The seller chose to remain anonymous, said Sotheby's.
Graff had the blue diamond recut after purchase, to the displeasure of purists who considered it an act of vandalism against a unique object. It wasn't immediately known whether he planned to alter the pink diamond, which Sotheby's says has a flaw unnoticeable to the naked eye but may be graded as internally flawless after re-polishing.
Sotheby's said it sold jewels worth $105.1 million Tuesday, also a world record for a single sale. The auction included items once belonging to Christina Onassis, the daughter of the Greek shipping tycoon Aristotle Onassis, and Cristina Ford, the second wife of Henry Ford's grandson Henry Ford II."I think this tells you a bit about the health of the market," Bennett told reporters after the sale.

A Sotheby's employee displays a 24.78 carat fancy intense pink emerald-cut diamond ring during an auction …

Gold hits record on inflation worry, Europe debt

By Rujun Shen

SINGAPORE (Reuters) - Gold rose to a record for the fourth straight session on Tuesday as inflation worries and euro zone sovereign debt woes continue to lure investors to precious metals.

Spot silver hit a new 30-year high of $28.16, and palladium extended gains to a new nine-year peak of $714.25. Spot gold rose to an all-time high of $1,414.60 an ounce, before easing to $1,413.50 by 0706 GMT.

"Liquidity is being thrown into the market place, the dollar is being debased as a way the U.S. government can get out of debt obligations, while Asian central banks keep buying dollars and keep their currencies cheap," said a Singapore-based trader.

"Hard assets are just going to continue to benefit. There is a good argument for these metals to go up. There is a lot of momentum to buy."

The target for this round of rally could be $1,475 or even $1,500, in the next three weeks, the trader added.

Vietnam's central bank said it would relax a gold import ban and allow in "reasonable volumes" to stabilise the domestic market, a move that is expected support sentiment.

Holdings in the world's largest gold-backed exchange traded fund, SPDR Gold Trust, gained 2.43 tonnes to 1,294.196 tonnes, their highest so far this month.

Gold is expected to rise towards $1,430 per ounce, as the uptrend is steady and a wave "5" is advancing, said Wang Tao, a Reuters technical analyst.

'Desirable' 38M dlr pink diamond up for auction

GENEVA (AFP) - – Auctioneers Sotheby's said Monday that a rare pink diamond valued at up to 38 million dollars (28 million euros) would go on sale in Geneva next month, dubbing it one of the "world's most desirable stones."
The 24.78 carat Fancy Intense Pink Diamond mounted on a ring comes from a private collection, the auction house said.

The gemstone, rated among a type that accounts for just two percent of diamonds, was last seen on the market about 60 years ago when it was sold by legendary US jeweller Harry Winston.

"During my 35-year career at Sothebys I have had the opportunity to examine many magnificent and rare gemstones and, put simply, this stone is one of the most desirable diamonds I have ever seen," said David Bennett, chairman for Europe and the Middle East at Sothebys international jewellery department.

"What makes it so immensely rare is the combination of its exceptional colour and purity with the classic emerald-cut -- a style of cutting normally associated with white diamonds," he added.

Sotheby's gave a pre-sale estimate of 27 to 38 million dollars for the fancy pink diamond, which will go under the hammer on November 16.

Blue, pink and green coloured diamonds are currently the most sought-after gemstones in auctions, according to the auction house.

Several elite auctioneers including rivals Christie's hold glittering jewellery sales every year in the western Swiss city's luxury hotels during one week in spring and autumn.

How to invest in gold and key price drivers

Reuters - Gold surges to a record above $1,313 an ounce on Wednesday after a spate of lacklustre U.S. data fuelled expectations the Fed may move towards further quantitative easing to help the economy, undermining the dollar.

Following are key facts about the market and different ways to invest in the precious metal.

HOW DO I INVEST?

SPOT MARKET

Large buyers and institutional investors generally buy the metal from big banks.

London is the hub of the global spot gold market, with more than $20 billion in trades passing through London's clearing system each day. To avoid cost and security risks, bullion is not usually physically moved and deals are cleared through paper transfers.

Other significant markets for physical gold are India, China, the Middle East, Singapore, Turkey, Italy and the United States.

FUTURES MARKETS

Investors can also enter the market via futures exchanges, where people trade in contracts to buy or sell a particular commodity at a fixed price on a certain future date.

The COMEX division of the New York Mercantile Exchange is the world's largest gold futures market in terms of trading volume. The Tokyo Commodity exchange, popularly known as TOCOM, is the most important futures market in Asia.

China launched its first gold futures contract on Jan. 9, 2008. Several other countries, including India, Dubai and Turkey, have also launched futures exchanges.

EXCHANGE-TRADED FUNDS

The wider media coverage of high gold prices has also attracted investments into exchange-traded funds (ETFs), which issue securities backed by physical metal and allow people to gain exposure to the underlying gold prices without taking delivery of the metal itself.

Gold held in New York's SPDR Gold Trust , the world's largest gold-backed ETF, rose to a record high of 1,320.436 tonnes in June. The ETF's holdings are equivalent to more than half global annual mine supply, and are worth some $54.9 billion at today's prices.

Other gold ETFs include iShares COMEX Gold Trust , ETF Securities' Gold Bullion Securities and ETFS Physical Gold, and Zurich Cantonal Bank's Physical Gold.

BARS AND COINS

Retail investors can buy gold from metals traders selling bars and coins in specialist shops or on the Internet. They pay a small premium for investment products, of between 5-20 percent above spot price depending on the size of the product and the weight of demand.

KEY PRICE DRIVERS:

INVESTORS

Rising interest in commodities, including gold, from investment funds in recent years has been a major factor behind bullion's rally to historic highs. Gold's strong performance in recent years has attracted more players and increased inflows of money into the overall market.

U.S. DOLLAR

Despite the recent drop in the usual strong correlation between gold and the euro-dollar exchange rate, the currency market still plays a major long-term role in setting the direction of gold.

Gold is a usually popular hedge against currency weakness. A weak U.S. currency also makes dollar-priced gold cheaper for holders of other currencies and vice versa.

This link sometimes breaks down in times of widespread financial market stress, however, as both gold and the dollar benefit from risk aversion. Their ratio turned positive in late 2008 and early 2009 after the Lehman Brothers crisis.

OIL PRICES

Gold has historically had a correlation with crude oil prices, as the metal can be used as a hedge against oil-led inflation. Strength in crude prices can also boost interest in commodities as an asset class. More recently this correlation has weakened, with gold prices continuing to rise in the last two years as oil prices retreated from record peaks.

FISCAL AND POLITICAL TENSIONS

The precious metal is widely considered a "safe haven", bought in a flight to quality during uncertain times.

Financial market shocks, as seen in the aftermath of the collapse of Lehman Brothers and more recently in the case of burgeoning euro zone debt problems, tend to boost inflows to gold.

Major geopolitical events including bomb blasts, terror attacks and assassinations can also induce price rises.

CENTRAL BANK GOLD RESERVES

Central banks hold gold as part of their reserves. Buying or selling of the metal by the banks can influence prices.

On Aug. 7, 2009, a group of 19 European central banks agreed to renew a pact to limit gold sales, originally signed in 1999 and renewed for a further five years in 2004.

Annual sales under the pact are limited to 400 tonnes, down from 500 tonnes in the second agreement, which expired in late September . Sales under the new pact have been low, however.

HEDGING

At the beginning of the 21st century, when gold prices were languishing around $300 an ounce, gold producers sold a part of their expected output with a promise to deliver the metal at a future date.

But when prices started rising, they suffered losses and there was a move to buy back their hedging positions to fully gain from higher market prices, a practice known as de-hedging.

Significant producer de-hedging can boost market sentiment and support gold prices. However, the rate of de-hedging has slowed markedly in recent years as the outstanding global hedge book shrank.

The world's biggest gold miner, Barrick Gold, cut its gold hedges by about 3 million ounces to eliminate its entire hedgebook in the fourth quarter of last year.

SUPPLY/DEMAND

Supply and demand fundamentals generally do not play as big a role in determining gold prices as those of other commodities because of huge above-ground stocks, now estimated at around 160,000 tonnes -- more than 60 times annual mine production.

Gold is not "consumed" like copper or oil.

Peak buying seasons in major consuming countries such as India and China exert some influence on the market, but others factors such as the dollar and financial risk carry more weight.

Gold hits new high on econ worries, weak dollar

By Rujun Shen

SINGAPORE (Reuters) - Gold surged to a new record and silver struck a new 2-½ year high on Friday on investor concerns over global economic prospects, while a weak dollar helped boost sentiment.

Spot gold hit a high of $1,280.1 an ounce, before easing to $1,279.2 by 0600 GMT, on course for a 2.9-percent rise from a week earlier, the sharpest in more than 3 months.

"Uncertain economic prospects, especially in the U.S., have helped gold continue to hit record highs," said Hou Xinqiang, an analyst at Jinrui Futures in China. "Even though prices have gone higher, bullish sentiment in the market is still intensifying."

Data out of the U.S. on Thursday showed an improved job market, while factory activity in the Mid-Atlantic continued to contract in September , albeit at a slower pace.

The euro rose to a one-month high against the dollar, with dealers citing buying from real money investors, or long-term investors such as pension funds and life insurers.

"Gold in recent times has been tracking the fortunes of the euro," said Darren Heathcote, head of trading at Investec Australia in Sydney. "Given that the euro has appreciated by a big figure against the U.S. dollar, it wasn't surprising to see gold not only test the $1,275 level but break through it."

"As we are trading gold around that number now, the momentum is very positive for potential testing of $1,300 in the next few days."

U.S. gold futures for December delivery rose 0.6 percent to $1,280.9 an ounce.

Technical analysis showed that spot gold could rise to $1,286 an ounce as per a flag and pennant pattern, according to Wang Tao, a Reuters market analyst.

Gold premium in Hong Kong was unchanged after it hit a record for a second time this week, at a premium of between 50 to 70 cents to spot London prices.

"There is not much scrap around these days. Selling is not too aggressive, unless the ETF turned around," said Ronald Leung, a physical dealer at Lee Cheong Gold Dealers in Hong Kong .

"Only if interest rates were raised, people's attitude towards gold would change from bullish to bearish. But for the near term, we don't see anything."

Spot silver vaulted to a 2-1/2-year high of $20.94 an ounce, and softened to 20.88, heading for a 5.7-percent weekly gain.

The gold/silver ratio, used to measure the ounces of silver needed to buy an ounce of gold, has been on a steady decline since late August. It stood at a nearly 8-month low of 61.27, way below the average of 64.38 over the past 28 years.

Spot platinum hit an intraday high of $1,617.5, within sight of a near 4-month peak of $1,618 hit in the previous session. Platinum is on course for a weekly gain of 5 percent, the sharpest in 8 months.

Palladium gained 1.4 percent to $552.5 an ounce, poised for a 7-percent gain from a week earlier, the biggest since late June.

Islamic gold dinar gains ground in Malaysia: official

Imagine using gold to make your purchases in real life?

KUALA LUMPUR, Sept 4, 2010 (AFP) – Malaysians are embracing gold dinars which were introduced last month by the northern state of Kelantan to promote usage of Islamic currency as an alternative to paper money, an official said Saturday.

The gold coins and silver dirhams were introduced in early August by the Islamic opposition party PAS which rules Kelantan state to coincide with the start of the Muslim holy fasting month of Ramadan.

Umar Ibrahim Vadillo, chief executive officer with Kelantan Golden Trade, said the first batch of gold and silver coins worth two million ringgit (625,000 dollars) had been sold out in less than a month.

"There is enormous response in Malaysia. Their reaction is unbelievable," he told reporters.

"In Kelantan, businesses including garage owners and taxi drivers are using the gold and silver coins."

Civil servants in Kelantan are paid up to 25 percent of their salary in dinars and dirhams if they wish.

Umar said three more Malaysian states controlled by the opposition -- Selangor, Kedah and Penang -- had indicated interest in minting similar coins.

"By the end of the year, we anticipate sales of the dinars and dirhams to hit 60 to 70 million ringgit," he said.

According to Islamic law, the dinar coin is 4.25 grams of gold, while the dirham is 3.0 grams of pure silver.

A gold coin is equivalent to about 582 ringgit (183 dollars) while the silver coin is worth around 13 ringgit but their values fluctuate according to market prices.

The coins were intended to be used as an alternative to the Malaysian ringgit and sen but are not legal tender.

"Of course it is not legal tender," Umar said. "The gold dinar is a commodity. The use of it is on a voluntary basis."

"The government of Kelantan has not received any petition from the government of Malaysia (against the usage)."

"The people in Kelantan have spoken loud and clear that they like the gold and silver coins," Umar said.

Former prime minister Abdullah Ahmad Badawi, whose administration promoted a moderate form of Islam that emphasised economic and scientific development, shot down the proposal to use the traditional Islamic currencies.

But his predecessor, Mahathir Mohamad, was an advocate of the dinar system and urged Muslim countries to use it as a trade instrument.

Imperial White Jade Seal

An Imperial white jade 'Xintian Zhuren' seal from Chinese Qing Dynasty, are displaying by Sotheby's in Hong Kong Tuesday, Aug. 31, 2010. The seal is expected to fetch HK$25-30 million (US$3.2-3.9 million) during the Sotheby's Hong Kong Qing Imperial Porcelain auction in Oct. 7, 2010.

(AP Photo/Kin Cheung)

Chinese 'gold' brings Egyptians a taste of little luxury

So all that glitters isn't gold after all!

CAIRO (AFP) - – A Cartier ring for just eight dollars? In Egypt, "Chinese gold"-- an affordable imitation of the precious metal-- has swamped the jewellery market, granting the poor a little taste of luxury.

Chinese 'gold' brings Egyptians a taste of little luxury

As in many other countries, the Egyptian market has been flooded with Chinese goods -- everything from electronics to plastic cigarette lighters have been shouldering locally made goods out of the way.

And in a country where 40 percent of the 80 million population lives on less than two dollars a day, the so-called Chinese gold has been widely welcomed, particularly by young couples who struggle to afford the traditional marriage dowry.

The current price of one gram of 24 carat gold in Egypt stands at 218 Egyptian pounds (38 dollars), while the Chinese version -- a mixture of aluminium, iron and other metals -- only costs around 20 to 30 Egyptian pounds (four to five dollars) per gram.

"Chinese accessories are cheap and elegant, the styles are varied and the best thing is that they look just like gold," said 31-year-old Amira showing off her Chinese trinket.

Ancient Egyptians considered gold the skin of gods, lending it spiritual as well social value.

A walk down Old Cairo -- lined with jewellery shops -- is a testament that the pharaohs' modern-day compatriots still hold high regard for the precious metal.

But as unemployment and rising inflation weighs down on a large part of the population, Egyptians are looking to alternatives for their coquetterie.

Just a short walk from the Khan al-Khalili tourist bazaar is Haret al-Yahud, the old Jewish quarter where gold workshops churned out designs from simple wedding bands to elaborate necklaces.

But many of the jewellers there have switched to selling Chinese gold to improve business.

Amira, an accountant, says she goes to the area especially to buy herself the Chinese goods.

"They look like gold, and most importantly, they are affordable," she said.

"Few have the means to buy real gold these days, which is why the Chinese gold is so in demand," said a woman selling the faux-bijoux in the quarter, who gave her name only as Nora.

"We have very nice rings, imitation Chanel and Cartier for less than 50 Egyptian pounds (around eight dollars)," said Azza Riad, who, making the most of the high demand, has just opened a store in the popular Ain Shams district in northwest Cairo.

"A woman can now by herself an imitation Bulgari set which includes a bracelet, a necklace and earrings for around 150 Egyptian pounds (26 dollars)," she said.

Moreover, "these accessories have the great advantage of keeping their colour for around two years," said Riad, who also owns a shop in Khan al-Khalili.

For young couples struggling to start a new life together, the arrival of Chinese gold has removed at least one obstacle to the costly traditions that surround marriage, including the dowry or "shabka".

A groom is required to offer his bride a shabka of gold -- or diamond for those who can afford it -- in order to seal the marriage deal. This is in addition to him providing housing and furnishing a new apartment ahead of the wedding.

"More and more young couples buy just the wedding bands in real gold and then they buy the rest of the accessories in Chinese gold to complete the shabka," said Riad.

Even many of Cairo's more well-off residents have enjoyed the Asian import.

"I bought Chinese accessories, I wear them often. They allow you to follow fashion trends without ruining your budget," said Faten Faltas, a stay-at-home mother from the affluent neighbourhood of Heliopolis.

"When I wear them, people think it is gold, so why not?", she said.

But Mohamed al-Felawi, who runs a well-known jewellery shop, snubs the Chinese import, saying that to sell it diminishes a jeweller's prestige.

"I would never sell this so-called Chinese gold in my shops. As a jeweller, it would be a scam for me to sell Chinese gold," he said.

Some clients say they can do both, buy Chinese gold for fun and leave real gold to more serious matters, like the shabka.

"I bought earrings for 30 Egyptian pounds (five dollars), it's almost nothing and no one can tell that it's not real gold," said Sylvia Tamer, 43.

But, she concedes, she would never allow her daughter to marry without having received a diamond shabka.

Wasfi Wassef, who owns a jewelry shop in Khan al-Khalili selling real gold, said his business has been hurt by the new accessories on the scene, adding that the imports could be a health hazard.

"It's not real gold. It's a mixture ... metals which go through a chemical treatment to get their golden colour, and this treatment can cause several allergic reactions," he said.

But doctors say Chinese gold is no more dangerous than other fake jewelry.

"Nickel can cause certain allergic reactions in people with sensitive skin. But nickel is found in many accessories, including the Chinese gold," said Ramzi Onsi, the head of the department of dermatology in the Ahmed Maher University Hospital.

2 men arrested for stealing diamonds at S’pore Int’l Jewellery Show

SINGAPORE: Police arrested two men suspected of stealing two diamonds at the Singapore International Jewellery Show 2010 at Marina Bay Sands Singapore.

They were arrested at about 2.10pm on Thursday.

Police said officers from Central Police Division were conducting anti—crime rounds at the show and spotted the two men behaving suspiciously at one of the booths.

One of them was seen talking to an exhibitor while the other appeared to be taking something from the booth.

Both men left hurriedly after that.

The officers immediately gave chase and detained them outside the exhibition hall.

Two diamonds with a total value of about S$10,000 belonging to the exhibitor were found on one of the suspects.

The two men, aged 39 and 42 years, will be charged in court on Saturday.

In a separate case earlier at the show, a 43—year—old Filipina was arrested on suspicion of attempted theft.

Police said she was seen following visitors of the show closely and was believed to have attempted to steal from their bags.

She will also be charged in court on Saturday. — CNA/vm

Gold prices hit record highs

Time to buy gold? or sell them?

CHARLOTTE -- Coleman Perry sifts through a small pile of gold items at his Charlotte jewelry store. With the price of gold soaring, the phone is ringing a lot these days.

"With money being tight, things that used to have value to them, as far as enjoying wearing, now they can turn it into value that they can buy groceries at the store with now," said Perry.

Jewelry stores across the state are trying to capitalize on the gold rush, advertising they're buying the precious metal. At Perry’s jewelry store, the selling price is on its sign out front—$1,258 an ounce Friday. That's a record high.

"Sometimes during the day we'll get 10 to 15 people a day with 15 of them wanting to sell," said Perry.

Gold prices have risen 12 percent since January and some experts think it'll eventually top $1,300.

Many investors concerned about the uncertain global market are pulling their money out of risky investments and taking refuge in gold.

"Gold is something that doesn't disappear," said Perry.

But Tom Bartholomy with the Better Business Bureau says sellers need to make sure they're getting what they deserve. He says internet sites that promise money for gold are easy, but definitely not the best.

"You will get a check back, but you will probably be disappointed at what that check is," said Bartholomy.

Gold prices are helping other precious metals too. Silver, platinum and palladium are also all seeing consistent rises.

US discovers stunning mineral wealth in Afghanistan: report

US geologists have discovered nearly one trillion dollars' worth of untapped mineral deposits in Afghanistan, including vast reserves of copper and lithium, the New York Times reported Monday.

The deposits, which also include huge veins of iron, gold, niobium and cobalt, are enough to turn the battle-scarred country into one of the world's leading mining exporters, senior US government officials told the Times.

Afghanistan's potential lithium deposits as large of those of Bolivia, which currently has the world's largest known lithium reserves, the Times said.

Lithium is a key mineral used in rechargeable batteries, as well as everything from cell phones and laptops to electric cars.

Afghanistan has so much of it that it could become the "Saudi Arabia of lithium," according to an internal Pentagon memo quoted by the newspaper.

The iron and copper deposits are large enough to make Afghanistan one of the world's top producers, US officials said.

"There is stunning potential here," General David Petraeus, head of the US Central Command, told the newspaper. "There are a lot of ifs, of course, but I think potentially it is hugely significant."

"This will become the backbone of the Afghan economy," Jalil Jumriany, an adviser to the Afghan minister of mines, told the Times.

A small team of US geologists and Pentagon officials uncovered the mineral wealth with help from charts and data collected by Soviet mining experts during the Soviet Union's occupation of Afghanistan in the 1980s.

Afghan geologists took the charts home to protect them during the chaos that followed the Soviet withdrawal, and produced them again in 2001 with the fall of the Taliban, the Times said.

"There were maps, but the development did not take place, because you had 30 to 35 years of war," Ahmad Hujabre, an Afghan engineer who worked for the Ministry of Mines in the 1970s, told the Times.

President Hamid Karzai was recently briefed on the finding, US officials told the newspaper.

India demands Koh-i-Noor diamond

The Indian government has demanded Britain to return the Koh-i-Noor diamond which was wringed from the Indian hands by British forces in the 19th century.

The East India Company forces in India made the Maharaja of Punjab give the diamond away as a tribute to Queen Victoria in 1849 following the Treaty of Lahore.

India says the British seized the diamond -- owned by Nader Shah (King of Iran, 1688-1747) and his descendents before finding its way into India -- illegally and wants it back along with other treasures looted during colonial rule.

India's efforts are in line with an international campaign backed by the United Nations for the return of historic treasures to several countries, including Mexico, Greece, Turkey and Egypt.

That said, the British High Commission in New Delhi has called the removal of the gemstone legitimate and its ownership "non-negotiable."

Dr Gautam Sengupta, head of the Architectural Survey of India, who is in charge of protecting the country's antiquities, said if the country required the European museums to return its looted treasures, many of the museums would have to pull down their shutters."

Life-size diamond ball adds sparkle to FIFA World Cup in South Africa

A South African jeweler has unveiled a 20 million rand (267,000 U.S. dollar) life-sized sized World Cup football to commemorate the FIFA World Cup which kicks off in Johannesburg on Friday.

The ball is made up of 6,620 white and 2,640 black round brilliant cut South African diamonds giving a total weight of 3,500 carats.

Jeweller Yair Shimansky told Business Day newspaper in Johannesburg ball "was not designed for any goal kicking practice."

The diamond encrusted ball weighs about 2.2 kg.

Shimansky said he is in talks with a European soccer club about selling the World Cup ball to them as a 2010 commemorative display piece for their club.

His seven national stores will each exhibit an exact crystal replica of the ball in their windows for the duration of the World Cup, which runs from June 11 to July 11. After the World Club is concluded each replica will be auctioned with the proceeds being given to each regional store's chosen charity.

Good bye, diamonds?

Diamonds, the women's best friend seem to be fast depleting. World's biggest miners of gems, De Beers, report that the diamond supply in the world is coming to an end.

De Beers, reveal that the diamond mines are on the verge of extinction and soon will be history. To extend the life of the mines, the gem supplier has decided to reduce its production.

The depleting diamond mines will have a direct impact on the prices. Des Kilalea, a diamond analyst, said that owing to the moderated output, diamond prices could rise by at least 5 per cent a year for the next five years.

De Beers will had a record of producing 48m carats, will reduce their Diamond production to 40m in 2011. De Beers, accounts for 40 per cent of global diamond sale. But with the diamond mines at stake, this figure will also drop down.

In the last two decades the industry has found no new diamond deposit, neither to match the two biggest mines in Africa, owned by De Beers nor the best Russian mines of Alrosa, the other big diamond producer.

Diamond analysts say that due to less supply of Diamond, the market has been flourished with false and inferior quality of the gem.

"US Richest" Women sues Singapore Hotel for lost of US$ 330,000 ring!

Source: The Straits Times

A WEALTHY American socialite says a diamond ring worth more than $300,000 (right) went missing while she was staying at the Shangri-La Hotel in Singapore last year.

Now, multi-millionaire Anne Hendricks Bass, 68, has gone to court to force the hotel to make good her loss.

A longtime arts patron with a passion for dance, she was described by The New York Times last month as one of the richest women in the United States after her 1988 divorce from Texas billionaire Sid Bass.

Ms Bass claims that her Paris-made gold ring, which had a 6.41 carat diamond valued at US$220,000 (S$307,000) on it, went missing on Feb 6 last year, two days after she checked into the Shangri-La.

According to court documents, she said she placed the ring on a table in the bedroom of her two-room suite at about 6.30pm that day, shortly before getting a massage.

She said two hotel employees were with her for about an hour in the room, while another entered at about 9.15pm to deliver a meal she ordered.

Ms Bass claimed she realised the ring was missing only at 10pm, when she was about to check out.

She alerted hotel staff to help her look for it, but the search proved fruitless.

She then made a police report on the advice of hotel staff, and postponed her departure by a day to continue the search, which was ultimately unsuccessful.

After checking out on Feb 7 last year, she offered a US$50,000 reward for any information leading to the recovery of the ring. But that also proved futile.

Now, she wants the hotel to pay her damages.

Ms Bass, who is based in New York, is represented by lawyer Eugene Thuraisingam of Stamford Law Corporation. She is alleging that the hotel failed to provide adequate security to safeguard her personal property against theft.

She says that either the hotel was negligent or its employees might have stolen the ring.

But the hotel, represented by Mr K. Anparasan of KhattarWong, is denying the claims. According to the defence statement which has been filed, it is arguing that the loss was caused, or contributed to, by the woman’s own negligence.

It says she had not shown evidence that the ring was in her possession at all times during her stay at the hotel. Neither has she proven that she even brought the ring with her when she arrived in Singapore last year.

The hotel’s position is that its three employees never entered the bedroom of Ms Bass’ suite.

She had her massage in the living room, not the bedroom, as she had claimed. And the butler who delivered her meal left the food in the dining area of the living room.

The hotel acknowledges that it is liable to pay only up to $500, the maximum provided for under the Innkeepers Act for a loss where there is no theft or neglect.

A High Court pre-trial conference is due later this month.

Four jewellers fail gold purity test

by Cheryl Lim, my paper|21 January 2010

Four jewellers have been found to be selling gold jewellery that contained less than the minimum amount of gold required, in a test by mystery shoppers from the consumer watchdog here.

The Consumers Association of Singapore (Case) conducted the test on 33 jewellery retailers from November last year to this month.

Overall, the quality of gold jewellery sold here has improved over the past year, said Case president Yeo Guat Kwang.

Case had previously conducted two similar rounds of tests.

n the first round carried out in September and October 2008, Case checked 30 retailers, of which five failed the test for gold purity.

In the second round done in December 2008, one of 12 retailers tested failed the test.

Mr Yeo said: “We do this survey to find out if retailers are still selling gold jewellery that does not meet the claimed fineness, or charging consumers for manufacturing loss.”

It is especially important to conduct such tests on gold, because consumers cannot verify and assess the precious metal “with their naked eye”, he said.

Mr Yeo stressed that, in the latest round of tests, only two of the four errant retailers – Lim’s Jewellery and Giftwell Gold – “clearly breached” the minimum required amount of gold content, which stands at 91.6 per cent.

A pair of earrings from Lim’s Jewellery contained only 80.76 per cent of gold, while a brooch from Giftwell Gold contained 91.36 per cent.

The other two retailers – Satya Jewellery and Poh Fok Jewellery – were “borderline cases”, which might have failed because of technicalities during testing, Mr Yeo said.

A gold ring from Satya was found to contain 91.49 per cent of gold, while earrings from Poh Fok contained 91.51 per cent.

Six retailers who had breached the previous rounds of tests were included in this round.

All except one, which was closed at the time the mystery shoppers dropped by, passed the test this time, Mr Yeo said.

The improved test results are partly due to a general improvement in quality standards in the jewellery trade here, said Ms Ng Siew Hua, chief assayer of the Singapore Assay Office (SAO), an independent body that tests and certifies precious metal.

“More retailers now opt to send their jewellery for testing at the SAO,” she said.

The SAO’s membership, which currently stands at 50 retailer- members, has increased by 40 per cent in the past year.

Customers who buy from jewellers who are members of the SAO or the Singapore Jewellers Association are entitled to a refund or an exchange if they find that the items they bought contained less gold than claimed.

The latest round of tests by Case also highlighted a problem with the SAO’s testing system.

One of the pieces failed the test this time even though it had been certified pure by the SAO.

The SAO explained that this might have happened because it tests only a few samples from each batch of jewellery.

The samples are destroyed during the testing process.

To prevent substandard pieces from slipping through again, the SAO has started carrying out X-ray tests since Jan 6 on all gold pieces from each batch of jewellery, on top of the standard test on a few samples from the batch.

"Vivid pink" diamond sells for record $10.8 million

HONG KONG (Reuters Life!) – A rare, 5-carat pink diamond was auctioned off for a record $10.8 million in Hong Kong on Tuesday, putting some shine back into the world's rare and large stones market which was badly hit by the financial crisis.

The stone, of a "vivid pink" hue and considered near perfect, but not quite flawless, triggered brisk bidding in Christie's autumn sales of Asian and Chinese art in Hong Kong.

The price smashed the previous record, set 15 years ago in Geneva for a 19.66-carat stone that sold for $7.4 million. The pink gem's per-carat price of $2.2 million was also the highest ever paid for any diamond at auction, Christie's said.

"No stone has ever been sold for $2 million a carat, we were used to ... a million dollars a carat for colored diamonds but never 2 million," said Francois Curiel, Christie's Europe chairman. "This is an absolute record that is not going to be broken for a while I believe."

The stone, set in a so-called "cushion-cut" ring by famed jewelers Graff Diamonds, was just a quarter the size of the Geneva stone and not quite flawless but the stone's "vivid pink" is considered near perfect. Curiel described it as a "fabulous pink diamond, probably one of the rarest stones I've ever seen."

While the South African-mined diamond isn't quite rated flawless given minor blemishes, Christie's said that these could be removed by minor repolishing.

Christie's has a track-record of putting rare polished stones up for sale in Asia, given its confidence in the depth of the Asian market for the world's top gemstones and artwork.

Last May, before the financial crisis began to hurt the global auction market, Christie's sold a squash-ball-sized, 101.27-carat diamond in Hong Kong for $6.2 million.

Despite this, some major gems have disappointed in Asia, including a 72.22-carat "D" flawless white diamond that failed to hit its reserve price in a Sotheby's Hong Kong sale last April, falling short of its $10-12 million pre-sale estimate.

While the world's most expensive jewel ever sold at auction is the "Wittelsbach" blue diamond, a 17th-century deep grayish-blue stone that fetched $24 million last year, top red and pink gemstones are also known for stratospheric valuations.