Wednesday, July 21, 2010

Jewelry Biz- Bahia Emerald In Play

There is plenty of news out there in jewelry land this week.
The Dodd-Frank gold provision would require that companies using gold as well as the minerals coltan, cassiterite and solframite file annual reports with the Securities and Exchange Commission (SEC) regarding the source of those materials. According to JA, compliance with the gold provision would likely require that companies hire a third-party firm to audit and validate their gold-sourcing reports.

If a company's gold or minerals did originate from one of the 10 African countries included in the bill, then that company would have to show what steps they took to trace their materials back to their source. The provision also dictates that materials information be placed on a company's Web site for public review.
Jeweler to the Stars, Neil Lane is partnering with Kay Jewelers for a collection of bridal jewelry
The US Federal Court rejected an anti-trust deal for De Beers
In a drive to end antitrust and monopoly claims brought against it, De Beers reached a $250 million settlement over price fixing of gem quality diamonds and in 2005 established a $272.5 million fund for indirect purchasers of its diamonds.
and the story that I'm all over right now is
Tussel over 840 pound emerald back in court
Los Angeles--The long-running dispute over who owns the 840-pound Bahia Emerald rough that was unearthed back in 2001 could be resolved by the end of the month.
Multiple people claim ownership of the gemstone. According to an Associated Press report, it was discovered in Brazil and valued at $400 million and then traveled through New Orleans, Idaho and Las Vegas before being seized by authorities.
Thomas, a gem trader, claimed he is the rightful owner of the emerald because he purchased it for $60,000 from the Brazilians after it was first discovered back in 2001, media reports said.
Can someone please tell me how an object that sold for $60,000 can be valued at $400,000,000 a mere nine years later?
And finally,
Gold Coin Sellers Angry By New Tax Law
Amendment slipped into Health Care Legislation would track, tax coin and bullion transactions
So every time a member of the public sells more than $600 worth of gold to a dealer, Piret said, the transaction will have to be reported to the government by the buyer.

Pat Heller, who owns Liberty Coin Service in Lansing, Mich., deals with around 1,000 customers every week. Many are individuals looking to protect wealth in an uncertain economy, he said, while others are dealers like him.
With spot market prices for gold at nearly $1,200 an ounce, Heller estimates that he'll be filling out between 10,000 and 20,000 tax forms per year after the new law takes effect.
Well it's certainly good to know that the Federal Government is getting their hands on yet another thing to tax!
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2 comments:

Laguna Beach Trad said...

RE: conflict gold provision

I wonder if China, which is currently penetrating Africa for resources, has similar regulations hampering its firms' efforts?

Belle de Ville said...

Oh yeah Trad...as if there are any restrictions on China...only in some alternative universe.

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