The price of oil closed at $40.81 a barrel on the New York Mercantile Exchange, following a report from the U.S. Labor Department that monthly job losses in November were the largest since 1974.

Some 533,000 jobs were lost in the U.S. in November, driving the unemployment rate to 6.7 percent, the highest in 15 years.

Crude oil lost 6.55 percent, closing Friday at the lowest settlement price since December 10, 2004, when oil closed at $40.71.

The declining oil prices may help boost retail sales, making it cheaper to go shopping as well as free some dollars in consumers’ wallets. Prices at the pumps average $1.773 a gallon, according to AAA.

Prices of gold, sliver and platinum continued their descent, closing Friday at sharply lower levels. Gold for delivery in February fell $13.30 to $752.20 per once. Silver for delivery in March closed at $9.43/once and platinum for delivery in January ended the week at $787.20/once, losing $11.60.

Other commodities, such as corn, suffered even sharper drops. Corn for delivery in March shed $24.75 to $309.25 and soybeans lost $27.50 closing at $783.50.

Source: www.idexonline.com

The Debswana management recently asked for a joint meeting with mine union leaders in a quest to refute claims of possible job losses within the diamond mining community.

This development came after the management learned that the miners, whose population in Orapa alone is close to 6500, were in constant fears of losing their jobs in the coming year.

The fears were awakened by the admission by top management that the diamond industry will be amongst the hardest hit by the global credit crunch.

That, plus the fact that for the past five years or so, Debswana has had a history of tactfully relieving employees of their duties.

continue reading "Dark future looms ahead for mine workers"

Despite a deepening economic crisis and the onslaught of a recession, American shoppers turned up by the thousands at stores across the country before dawn for the opening of the holiday shopping season. To kick off Black Friday, the day after Thanksgiving when retailers turn a profit for the year, U.S. retailers lowered prices as much as 70 percent in the hopes of luring cautious consumers out of the economic hesitation.

Early analysis shows that U.S. holiday sales for Black Friday increased three percent compared to last year, to about US$10.6 billion, the smallest gain for a Black Friday in three years, according to research firm ShopperTrack RCT Corp. Analysts say that a decent Black Friday figure is not representative of what will happen during the unfolding holiday shopping season.

continue reading "BLACK FRIDAY DISCOUNTS STILL MANAGE TO LURE CAUTIOUS SHOPPERS"

Members of Israel’s diamond industry met in the Ramat Gan bourse on Tuesday to discuss challenges facing the sector. The meeting was hosted by Avi Paz, president of the Israel Diamond Exchange (IDE), Moti Ganz, president of the Israel Diamond Manufacturers Association (IDMA), and Shmuel Schnitzer, IDE honorary life president. Simcha Lustig, former Israel Diamond Institute (IDI) chairman, and Uri Schwartz, former IDMA president, also presented their views on the state of affairs.

They all stressed a need for collective calm and reiterated the industry’s ability to work through difficult times. “This is a family-based industry and we have the tools to work through the current crisis as a family,” Paz said.

continue reading "Israeli Diamond Industry Weighs its Options as Leaders Call for Calm"

NAMIBIA’s immunity from the global financial crisis is over as the country’s mining sector, one of the leading industries, has reported sharp drops in mineral exports; the Chamber of Mines of Namibia reported this week.

The prices of many of Namibia’s mineral exports such as uranium, zinc, copper, lead and gold have fallen significantly compared to this time last year, the Chamber says.
The Chamber further says it has taken note of the impact on the diamond industry, and cited recent announcements by diamond miner, Namdeb, that “the diamond business will be impacted in the short-term and the environment will continue to be challenging and unpredictable.”
Sharp falls in mining exports will directly affect revenues generated from the exports of minerals, meaning that less taxes and royalties will be paid to the Government.
Some minerals have been hit harder than others the Chamber says. The spot price of uranium oxide, for example, is starting to increase after falling from just under US$1370/lb in July 2007, to just over US$40/lb at the end of October 2008.

continue reading "Global crisis impacts Namibia’s mineral exports"

The world’s largest diamond company, De Beers, says it is putting in place a number of measures to lessen the effects of the global economic slowdown and will have to cut production if necessary

De Beers Botswana’s Public and Corporate Affairs Manager, Charmaine Muir-Revaka, says they are taking proactive steps to minimise short-term consequences of the crisis on itself and its partners.

“The focus of De Beers’ response to the current challenges includes engagement of our partners and clients to ensure that the actions we take individually position the diamond industry favourably now and in future,” Muir-Revaka says.

“We have also increased our advertising expenditure in the main diamond jewellery consumer markets in order to drive demand, especially in the Christmas season. If deemed the right thing to do, De Beers is also fully prepared to reduce production levels from its mines to bring these in line with prevailing demand for new rough supply for our clients.”

continue reading "De Beers looks to drive demand in US amidst crisis"

Major auction houses are advising people putting fine jewels and watches on the block next week to lower their reserve price — or secret minimum — as the global financial crisis takes hold, their top experts said on Tuesday.

The reality check, ahead of Geneva auctions kicking off on Sunday, comes after Impressionist and modern art works on offer at Christie’s and Sotheby’s fell short of the low end of their pre-sale estimates in New York last week.

“We’ve seen a readjustment of prices, 20 to 30 percent lower. We’ve called many owners of jewelry and watches and wine selling items next week in Geneva and asked them to adjust their reserve prices to what we think is the new level of prices,” Francois Curiel, international director of Christie’s worldwide jewelry department, told Reuters.

continue reading "Auction houses tell jewel owners to lower sights"

In what are probably both advance cautionary moves as well as a reaction to existing business difficulties, companies in the diamond industry have started to fire staff, cut back on purchases and even return goods to suppliers. The defensive actions take place when the industry should be seeing the fruits of its year long work as retailers enter the holiday selling season.

Diamond companies in Antwerp, Ramat Gan and New York are reacting to the financial crisis, by reducing expenses. At least two large companies based in Israel, both Diamond Trading Company (DTC) Sightholders, have fired employees. They are joining Mumbai headquartered companies that have been scaling back staff for a number of months.

A number of firms, wholesalers in Israel and in New York, are returning goods to suppliers. One of them, a medium size company with offices in the two centers, is asking to defer payments by 60-90 days, another is also currently facing large arbitrations.

Many companies are cutting back on marketing activities such as ad campaigns. In Antwerp, many traders are refusing to extend payments, eyeing with suspicion such requests from retailers as tale-tell signs of possible financial problems.

continue reading "Diamond Industry Starts Cutting Back, Bracing for a Tough Season"