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Vol. 29, No. 4 Winter, 2011 |
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Vol. 29, No. 4 Winter, 2011 |
Cap Beesley Talks
We finally caught up with the always outspoken and never shy C.R. "Cap" Beesley.
Gemstone Forecaster: In 2006, American Gemological Laboratories (AGL) was
acquired from Cap Beesley by Collectors Universe. In 2009, AGL was purchased and
re-privatized by Christopher P. Smith, who had been Vice President of the
laboratory while under CU ownership. Have you settled your legal issues with
Collectors Universe?
Cap Beesley: Yes, Alleluia
its finally done!
Do you have a relationship with AGL?
CB: In my opinion, you never cut your umbilical cord to something you have
created. I will always have an historical relationship with AGL.
GF: Any plans to start a new lab?
CB: Many individuals and dealers have requested that I reopen a laboratory.
There have also been offers of significant private funding for a new venture. My
current interest is to avoid the wholesale lab business that is often associated
with trade nepotism. I am interested in cultivating a unique set of lab services
that caters to the population of gemstone buyers who value truth and accuracy in
gemstone information.
GF: Few know you have been a major collector for decades, any plans for a Beesley gem museum?
CB: I have always had an active interest in museums and presenting gem and
mineral information in unique venues. As a board member of Yale's Peabody
Museum, that interest has reached new levels of expression working with one of
the finest groups of individuals that still appreciate the foundational purpose
of the museum experience; namely, to document scientific information, educate
the general public and ignite the imagination of a broad range of visitors and
observers. There are other parallel plans to develop museum concepts that will
document my extensive field experience with the United Nations Mineral Branch in
unique locations around the world. Hopefully, others will build on this body of
scientific data and use our information to expand the scope of gemstone
exploration and understanding.
GF: Are you involved in any private ventures?
CB: My current activity is focused on assisting individuals and particularly
groups to make wise gemstone acquisitions based on an assessment of the value
and the potential of exceptional material. I am also interested in exploring new
dimensions of the gem market in order to develop short and long term strategies
consistent with client objectives. In some cases this requires providing
information in formats that are generally beyond the scope of the current
population of gem labs.
GF: Collectors with old AGL grading reports, with your signature, consider them
collectors items. Any advice for today's collectors?
CB: I understand the challenge and I am empathetic with their plight. Standards
are not trustworthy if they are a floating target. I would suggest that they
contact the "new" AGL and request a translation between the original grading
terminology and the changes that have been implemented since my departure from
AGL. In fact, I would suggest all gem buyers request from every lab a disclosure
statement that identifies the tolerances applicable to each grading category in
any document for both colored stones and diamonds. It is important for all gem
buyers to clearly understand the issue of grading tolerances since they are
closely tied to value. For example, the GIA grading tolerance for color in
diamonds is plus or minus one grade
a little known fact among gemstone
consumers. Don't be shy
you are signing the check!
Forecaster readers are aware of the grading changes. See
http://www.preciousgemstones.com/gfsummer11.html#1
-EDITOR
GF: What happened with the 74 Carat North Carolina Emerald and the GIA?
CB: One of the outstanding projects of last year was the opportunity to
participate in the planning stages of bringing the largest emerald ever found in
North Carolina and North America to the marketplace. After several
consultations, the 310 carats emerald crystal found on the Adam's Farm in Hiddenite, NC was cut into an unusual shape weighing 74.66 carats and
subsequently treated with polymer by Jerry Call, an ex-GIA staff member turned
entrepreneur and gemstone cutter. The level of enhancement pushed the limits of
moderate. I subsequently suggested we recut the stone to emulate the Catherine
the Great Emerald that coincidentally was on the cover of the April 2010
Christie's Catalog and categorize the two stones as the Emperor and Empress.
In
order to establish and maintain a chain of custody the stone was submitted to
the GIA for documentation of weight, measurements, image and confirmation of the
presence of a clarity enhancement agent. To my amazement the GIA report was
returned with a comment indicating the following "no indications of clarity
enhancement." As a professional courtesy I took the stone back to the GIA, New
York lab to point out the error. The gemologist informed me that
the enhancement statement did not mean there is no enhancement agent in the
material.
According to her explanation, the comment indicates that whatever is
present in the stone is having no effect of the visual appearance of the gem.
Stunned, I gently indicated that in this case, that conclusion was absolute
nonsense and that when the polymer was stripped out of this emerald the
difference would be significant. I explained that my only interest was to
prevent GIA from being embarrassed by their superficial interpretation. She
promptly dismissed my overture to re-examine the stone and arrogantly suggested
the discussion was over. Subsequent cleaning of the emerald confirmed my
interpretation which was carefully documented with both video and photographs
before, during and after the cleaning process. I characterized this exchange as
both inexcusable, unprofessional and a sad commentary on the capability of the
GIA to recognize enhancements even when confronted with a gemology 101
interpretation.
GF: Are you concerned with the laboratory situation today since you left AGL?
CB: The forgoing illustration is a glaring indication of the gemological
arrogance that can infiltrate even the best intentions of a gemological
organization. Personally, I was concerned about the laboratory situation when I
first organized the "original" AGL. I saw a significant need and designed a
series of systems and procedures to meet those needs. Unfortunately, the
situation has become even more convoluted as I observe the lab process from the
outside. The attempts at harmonization by a group of non-decision makers are
shallow overtures that cater to sellers' interests at the expense of the buying
public. For example, the TE terminology that has been adopted by many of the
labs is totally bogus and misleading. It describes what is actually clarity
enhancement as "TE" or "Thermal Enhancement" suggesting that "fracture healing"
is an obscure byproduct of the heating process rather than the intentional
closure of surface reaching fractures by the addition of healing agents and heat
to improve clarity.
In addition, the unwillingness of gem labs to identify the types of fillers in
emeralds, as well as, rubies and other gems is equally inexcusable. The
technology exists to identify fillers, but the will to protect consumer interest
in these matters is nonexistent. Even country of origin has turned into a
fiasco. Groups like the GIA insisted for years that country of origin calls were
both impossible and inappropriate. Now, the GIA has entered the fray with lots
of financial motivation and ICP-MS instrumentation that requires a brain trust
to operate and little experience to make these complex assessments. Based on
reported performance from experienced dealers, the GIA has only succeeded in
polluting the significance of country of origin.
I believe that a meaningful independent regulatory commission should be
implemented as the first order of business to correct these abuses. It should
include a wide range of professionals that extend beyond the typical industry
and gemological think tank approach that tends to operate at the mercy of the
trade and associated financial interest.
GF: Any response to the Al Jazeera "hit piece" where four year olds and the
elderly are virtual slaves to the government?
CB: The Al Jazeera video that was replayed in the national media was as
misguided as the decision to implement the Burma embargo. The video image of
children hammering rocks on a rock pile in Mogok is bogus beyond belief. As a
regular observer in Burma of their culture, traditions and the impact of the
ill-advised embargo, I can attest that the facts that should have been part of
this regulatory process have fallen through the cracks. Mogok families,
especially women and children are not involved in forced labor as depicted in
the Al Jazeera video. Mogok families don't have nannies, au pairs or western
style daycare centers to park their children while mommy and daddy are pursuing
their careers.
The Burmese people have a tradition called "Kanasay" that allows women and
children to freely collect and sell gem material that they find in the streams
outside the main washing areas. The idea that there is forced labor is nonsense.
The embargo has had a devastating effect on the very people that it was intended
to help protect. All this occurs while the Chinese government systematically
persecutes and attempts to destroy the Tibetans and other cultures in mass under
the same watchful eye of the detached bureaucrats that implemented the Burma
embargo. The inconsistency of U.S. policy in Burma verses China is unfortunately
tied more to financial interest rather than humanitarian concerns. It's an
example of the proverbial fox going after the chicken with the broken wing. The
embargo should be withdrawn without hesitation.
For those who want to see the Al Jazeera piece:
http://www.youtube.com/watch?v=yeYDQ2fqBcY
GF: Ralph Esmerian was sentenced in Manhattan federal court to six years in
prison for wire fraud, bankruptcy fraud, and concealment of assets. What is your
opinion of what happened to Ralph Esmerian?
CB: Ralph Esmerian was one of the great gentlemen of the gem business. His
family is tied to an outstanding generational tradition of exceptional gemstone
expertise. He was a significant and faithful supporter of science, museums and
consumer protection initiatives. His recent challenges represent one of the most
unfortunate situations that I have witnessed in my 40 plus years in this
industry. In my opinion he gambled on the success of Fred Leighton, signed onto
agreements with high priced attorneys, Wall Street sharks and was caught in an
economic downturn of devastating proportions. I think, he began making decisions
that were inconsistent with who he was personally and now has paid a high price
for a series of poor choices. This is a sad situation that did not have a happy
ending. Personally, I can think of a number of people in this industry that
actually belong behind bars and Ralph isn't one of them. However, he is
resilient, creative and I think the lessons he has learned from this experience
will help him emerge from this situation stronger than ever.
GF: Thank you, Cap.
Hong Kong Christies-November
China and the rest of Asia bought $82.7 million worth of goods at the Christie's
Hong Kong Magnificent Jewels sale. This was a new record for the most ever at a
jewelry auction in Hong Kong. A 26.41 Kashmir sapphire sold for $3.8 million or
$143,000 per carat. It had an AGL report stating Kashmir-no heat. A pair of
25.38 and 23.12 carat matching cushion Colombian emerald earrings sold for $4
million, or $83,000 per carat. The emeralds had an AGL report stating no clarity
enhancement.
Christie's Geneva-November
The entire sale generated revenues worth $61.37 million. A gem 8.11 carat, oval
Burmese ruby was estimated at $2 million to $2.5 million. It sold for slightly
over $2.2 or $271,000 per carat. The gem was red and had an AGL stating Burma-no
heat:
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A rare and unusual 10.67 fancy gray diamond, SI1, was estimated at
$120,000-200,000. It sold for $1.19 million or over $111,000 per carat, a world
record price for a gray diamond. It was graded by GIA.
Sotheby's New York-December
A 22 carat rare fancy intense pink diamond, VS2 had been expected to sell for
about $13 million but failed to sell. It is unclear why this stone did not sell.
Some speculated the grading report was wrong and others blamed the economy.
Also, the 10.37 Burma Rose ruby did not sell it. The estimate of $1.5 million
and $3 million was too high. Although a beautiful electric magenta stone, the
color is not worth $150,000-$300,000 per carat estimate. Only reds get this
price, Sotheby's. Come on:
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On a positive note, a 16.40 Kashmir sapphire beat estimates when it went for
just under $1.6 million or $97,000 per carat. It was bought by an Asian
collector. It had an AGL document stating Kashmir-no heat.
Skinner Fine Jewelry-December
A rare star Burma ruby and diamond ring smashed the auction pre-sale estimate of
$15,000 to $20,000. Whomever put this low estimate doesn't know Burma star
prices. The 28 carat oval cabochon star ruby was extraordinary in size and
color, and brought $242,500. It was accompanied by an AGL report stating the
ruby is natural, Burma origin:
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An 8.40 Kashmir sapphire sold for $369,000 or almost $44,000 per carat. It had an AGL stating the sapphire is natural, origin Kashmir:
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Liz Taylor Auction
Christie's Elizabeth Taylor sale expected to bring in $20 million. It shattered
the Duchess of Winsor's record of $50 million in 1987 by bringing in $120
million. Her famous 33 carat diamond from Richard Burton sold for $8.8 million
to South Korean Daniel Pang. Burton paid $300,000 in 1968.
Victoria's Secret Fantasy Treasure Bra
The $2.5 million aqua-colored Fantasy Treasure bra was worn by supermodel
Miranda Kerr. It was created by Long Island's London Jewelers. The lingerie
features 3,400 hand-placed gems, including 142 carats of diamonds plus pearls,
citrines, and aquamarines. The two main yellow diamonds are over 14 carats and
two large white diamonds are over 8 carats each.
The price of these bras has steadily declined over the past few years. The most
expensive bra was $15 million in 2000. In 2005, the price was $12.5 million. For
the past five years the prices have declined. The price tag his year is the
first increase in many years from $2.0 million to $2.5 million. Of course, no
one has ever bought one of these bras.
http://www.youtube.com/watch?v=v9jUlUolgr8
International Gemstone News
Chinese Investors Look for Sparkle
Wall Street Journal
By Stephen Bell in and Jason Chow
November 17,2011
Pink diamonds have found a new best friend: China's rich.
Worried that traditional investments like stocks and bonds are losing their
sparkle, wealthy Chinese are buying the gemstones to showcase alongside fine
wines and contemporary art.
Their interest is driving up prices of Australian pink diamondsthe world's
rarestand supporting returns that have outstripped the Dow Jones Industrial
Average and Hong Kong's Hang Seng over the past decade.
An index of pink-diamond prices more than doubled between 2000 and 2010,
according to Gemdax consultants. That compares with the 63% return on the Hang
Seng and 6.2% for the DJIA.
"I see it as an investment, but unlike shares, I can wear it," said Doris Kwan,
a Hong Kong-based consultant, who bought a pink-diamond necklace in April at a
private sale in Taiyuan, a city in China's northern Shanxi province. "I'm not
going to put a gold bar on my body."
Other colored diamonds also are hot: A record was set on Wednesday for the sale
of a yellow diamond. The Sun-Drop diamond was sold for 11.2 million Swiss
francs, or $12.4 million, at a Sotheby's auction.
The wave of interest is prompting a major shake-up of the jewelry industry, as
traders who once catered to Hollywood stars and scions of oil wealth from the
Middle East are now expanding in Asia. Store openings and private displays are
rising in Hong Kong and mainland China, and jewelers also are seeking to tap
institutional investors for funds.
The world's largest jeweler, Chow Tai Fook, is gearing up for next month's
listing in Hong Kong in one of the biggest initial public offerings of the year,
with plans to raise up to $3.5 billion.
London-based Graff Diamonds is planning a $1 billion listing sometime next year
in Hong Kong because the company wants to be close to its fastest-growing
market, according to a person familiar with the situation.
Hong Kong's Doris Kwan recently bought this pink-diamond necklace at a private
sale in Shanghai.
Graff owns a 25-carat pink diamond renamed Graff Pink, which it bought for $46
million at Sotheby's, making it the most expensive diamond ever sold at an
auction.
Pink diamonds, produced almost exclusively at Rio Tinto PLC's Argyle mine in the
Kimberley region of Western Australia, are so rare that only a few dozen of the
gemstones are offered annually for sale.
For every colored diamond, there are at least 10,000 colorless, also called
white, ones. This scarcity has helped underpin prices: Recent auctions of pink
diamonds have fetched more than $1 million a carat, with an average price 20
times more than their colorless cousins.
In addition, pink diamonds may not be forever. The Argyle mine is due to finish
operations in 2019, and Rio Tinto estimates there may be only 500 quality
diamonds left to be unearthed.
As investments, however, colored diamonds are trickier than white diamonds
because their rarity makes them more difficult to value. White-diamond prices
are set by the Rapaport Diamond Report, but experts rely on prices struck at the
big auction houses to value colored ones. Also, the market is far less liquid
than that for white diamonds, which turns off some buyers.
Last month, Rio announced the results for this year's invitation-only tender of
55 pink diamonds weighing a combined 47.6 carats. Of 11 heart-shaped pink
diamonds included in the tender, the largestweighing 1.31 caratswas sold to
Chow Tai Fook.
Queensland-based jeweler John Calleija bid for four stones at the tender and
only secured one, while one of his associates was only successful with four bids
out of 40. "My phone has been running hot," Mr. Calleija said. "The prices were
the highest that I've seen."
Mr. Calleija's clients have traditionally involved A-list actors and
celebrities, including the late tenor Luciano Pavarotti. But recently he showed
a collection of pink diamonds worth $26 million to a select group of 30 Chinese
billionaires at a Hong Kong private club.
While some are starting to question whether the market is running too hot, Ms.
Kwan isn't among them. She spent 135,000 yuan ($21,000) on her necklace,
featuring 0.8 carat of pink diamonds in a floral design surrounded by small
white diamonds. "I'd sell all my stocks, everything else, before my diamonds,"
Ms. Kwan said.
First Gold, Now Diamonds
The Motley Fool
By Padraig O'Hannelly
November 8, 2011
Again, you should always take possession of the gemstones and diamonds you buy.
We would never recommend putting assets into diamond funds. Like gold, you want
possession of your goods. - EDITOR
With diamonds being promoted as the next big investment, new funds are popping
up to take advantage.
Diamonds were in the news again last week, with the announcement that Anglo
American is to pay $5.1 billion to buy out the Oppenheimer family's 40% interest
in De Beers.
But it's fair to say that the shiny gems have been attracting more interest as
an investment over the past couple of years, as investors seek out safe havens
amid the turmoil.
An investor's best friend
And safe havens have been hard to find, with even the traditional investment of
gold seeing significant falls on occasion. For those willing to look further
afield, 'alternative investments' such as wine and violins have sometimes seemed
attractive, but the risks involved in buying such 'emotional assets' are huge.
Joining the list are diamonds which, like most other alternative investments, do
not pay a dividend. As Warren Buffett said of gold, "it doesn't do anything but
costs you charges and stares at you".
But unlike gold, each diamond is unique, and its value is based on a complicated
consideration of factors such as colour, clarity, inclusions, and so on, and the
fashions and preferences vary over time. This makes it difficult to establish a
definitive index of diamond value, although there are benchmarks such as
Rapaport Group's RapNet Diamond Index (RAPI) and the Polished Prices Index.
It should also be noted that, according to the Polished Prices Index, the stones
lost 22% of their value during the 2008 financial crisis, and are down 16% since
August. So while diamonds may be 'alternative', they are not entirely
uncorrelated with other investments.
Enjoying exposure to diamonds
Probably the easiest way to buy into diamonds is to buy shares in a diamond
miner, and there are plenty on the London market: Petra Diamonds, Gem Diamonds,
Firestone Diamonds, Namakwa Diamonds, Paragon Diamonds, Diamondcorp, Stellar
Diamonds and Botswana Diamonds.
All of these shares have seen better days, which of course does not necessarily
make them a buy, but Tony Reading's recent article on Petra Diamonds will give
you a flavour of what's on offer. Buying a diamond miner also means buying the
risks and opportunities related to that specific company and management.
Another option is to buy the stones themselves, but when you consider the likely
spread between the buying price and the selling price, the complexity of valuing
each diamond, and the depth of your knowledge compared to the knowledge of the
seller, you might like to reflect on whether this approach is a good idea. How
sure can you be that you're buying right?
Diamond funds
In recent years, and especially in the past year, a number of diamond funds have
been established to capitalise on the growing interest.
And given the uniqueness of each stone and the inefficiencies in the market, a
skilled management team should, in theory, be able to bring some value to a
fund.
The easiest fund for UK-based investors to buy is Diamond Circle Capital, the
first publicly listed fund to invest in diamonds. It is run by Diapason
Commodities, but its website provides no information without logging in.
Rapaport Group, run by industry veteran Martin Rapaport, is planning to
introduce a diamond investment fund aimed at the financial community. It is
expected to start with around $10 million, increasing to more than $100 million.
"Diamonds are going to track exponential growth of wealth in developing
markets," Rapaport is reported as saying. "Chinese demand for diamonds is simply
fantastic, so is Indian."
Diamond Asset Advisors, established in Switzerland at the start of 2011, along
with Harry Winston Diamond Corporation, is planning to raise $100 million by the
end of 2011 to launch a diamond fund, with another $150 million expected to be
invested during 2012. The fund is targeting an annual return of 12% after fees.
The Novel Diamond Fund, based in Hong Kong, targets a 20% return from its
investment in coloured diamonds. Jim Rogers is among the directors.
Also focusing on coloured diamonds is the Sciens Colored Diamond Fund, which
intends to "take advantage of arbitrage opportunities available due to the
extreme opacity and inefficiency in the pricing of coloured diamonds". It
employs three strategies: short-term trading, improvement of diamonds, and
holding as prices rise. High net worth individuals will need at least $2 million
to participate, while institutions will need to put up a minimum of $5 million.
The Malta-based Diamond Capital Fund counts insurance entrepreneur Clive Cowdery
among the founder investors in its $20 million fund, launched this summer. It
will trade as well as just hold diamonds.
Cayman Islands-based KPR Capital's diamond fund was launched in March 2009,
targets a 10% return, and applies a hedge-fund style 'two-and-twenty' fees
structure. Minimum investment is $250,000.
Fusion Alternatives, another fund targeting high net worth individuals, was set
up by former senior managers at the Rapaport Group. Its fund specialises in
investment grade polished diamonds.
The Global Diamond Fund: Not much information on this, but on general principles
I'd avoid any company that does not have full contact details on its website,
and whose site is hosted by Yahoo!
So a very mixed bunch, not for the faint-hearted, and mostly not for the average
man in the street.
The nature of diamonds probably makes them unsuitable for a physical
exchange-traded fund, but can it be long before more accessible funds become
available to the mass market
and what would that mean for valuations?
Illegal mining on the rise, funding criminal groups: DAS
Colombia Reports
by Sara Crust
October 5, 2011
Illegal mining is on the rise in Colombia, and is often operated by criminal
groups, according to a study conducted by Colombia's intelligence agency DAS.
DAS estimated that 50% of the country's mines are illegal.
According the newspaper El Espectador, the group with the most control over the
unlawful mining industry is the leftist guerrilla organization FARC, the study
said. The ELN and neo-paramilitary groups are also known to operate mines.
The mines are used to generate cashflow for additional illegal activities,
including drug trafficking and terrorism, DAS said.
The problem is most severe in the Bolivar, Guainia, Risaralda, Tolima and Valle
departments. The illegal industry's most heavily excavated minerals are first
gold, then silver, coal, coltan and emerald.
DAS urged the government to take action "because it is causing serious
consequences for the country in terms of security, economy, environment and
social stability."
In failing to address the proliferation of illegal mines, the Colombian
government is forgoing a "strategic asset," DAS argued. "The country faces a
dynamic regional economic impact resulting from mining, which has the potential
to become a matter of strategic importance to national development"
Because the mining is carried out outside of the legal parameters for natural
resource excavation, operators need not comply with environmental regulations.
The government should therefore "establish a policy to consider the
environment... in promotion of a sustainable excavation process that generates
resources for communities in mining areas."
However, shutting down mines creates complications. High unemployment in many
regions has led community members to earn a living by working in the illegal
mines.
For example, in the eastern department of Guainia, many indigenous communities
work for guerrilla groups in exchange for small payments in gold. According to
the study, the guerrillas collect a tax of 10% of the communities' daily
production.
DAS cited a recent closure of a FARC-operated mine in the San Romualdo Canyon,
in the western Colombian department of Tolima, which left nearly three thousand
people homeless.
As gemstones rise in popularity, prices also look up
Republica Katmandu
October 16, 2011
It's not just the increase in the price of the yellow metal that has been
driving away customers from jewelry shops but a surge in the price of precious
as well as semi-precious stones has also caused a slump in the demand of jewelry
pieces studded with gemstones.
Gemstones have witnessed a rise of 10 to 15 percent in price in the
international market largely due to swelling demand in China and India.
There are several forces driving the price rise - strongest being the surging
demand from fast growing economies, particularly China and India. People in both
the countries have a fascination for colored stones, some of which are believed
to bring good luck. Another contributing factor is the rise of the Yuan against
the dollar, the denominating currency for gemstone prices, followed by supply
shortage.
The price of high quality gemstones such as rubies has gone up by 50 per cent
this year and has doubled in the past two years in the global market.
"Gemstones have lately become expensive by 10 to 15 percent in the local market
due to an increase in the price in the international market."A large amount of
gemstones available in the market are imported from India and China and since
the demand has surged in these two countries, a consequent price rise is being
seen in the local market as well," said Ravi Shrestha of Asri Jewelers in New
Road.
Precious gemstones such as ruby, emerald and sapphire among others available in
the local market come from places such as Burma, Madagascar, Sri Lanka,
Thailand, China and Africa, among others.
Tej Ratna Shakya, president of Nepal Gold and Silver Dealer´s Association,
"People were not so fond of gemstones earlier but with gold becoming expensive,
people are switching over to precious and semi-precious stones due to the
security reasons." People are attracted to stones such as ruby, emerald and
diamond."More people are today attracted to diamond jewelries and the demand for
diamond is growing at 10 percent," Shrestha told Republica.
Burma News Updates
Clinton Offers Path to Ease Myanmar Sanctions, Hails Opposition's Suu Ky
Bloomberg
By Daniel Ten Kate
December 2, 2011
U.S. Secretary of State Hillary Clinton laid out a path to ease sanctions during
a trip to Myanmar as she aimed to embolden reformers trying to roll back five
decades of military rule.
Clinton met separately with Myanmar's president, Thein Sein, and its most
prominent dissident and democracy icon, Aung San Suu Kyi, during her three-day
visit, telling both that the U.S. stands ready to lift punitive measures if the
government builds upon moves to grant greater political freedoms. Suu Kyi, who
Clinton called an "inspiration," said the visit may pave the way for a "new
future" in Myanmar.
"I am cautiously hopeful," Clinton told reporters in Yangon yesterday before
departing. "Reformers both inside and outside the government have our support,
and it will increase as we see actions taken that will further the hopes and
aspirations of the people."
Clinton's visit may help ease the international isolation of Myanmar, one of
Asia's poorest countries, where Internet and phone usage is sparse and cash is
required for most transactions. Thein Sein has released hundreds of political
prisoners, eased censorship and started a dialogue with Suu Kyi since his
junta-backed party won an election last year to end five decades of military
rule.
"This will be the beginning of a new future for all of us provided we can
maintain it," Suu Kyi said before embracing Clinton yesterday on the veranda of
the lakeside home, where she spent 15 years under house arrest. "Because of this
engagement, our way ahead will be clearer and we will be able to trust that the
process of democratization will move forward."
U.S. Assistance
Clinton said the U.S. would provide assistance to groups providing microcredit,
health care, English-language training and help for land-mine victims. The
programs will cost the U.S. $1.2 million, according to an administration
official who briefed reporters on condition of anonymity.
Clinton's "confidence-building measures" may help reformers come forward, said
Derek Tonkin, a former U.K. ambassador to Vietnam, Thailand and Laos and now
chairman of Network Myanmar, a U.K.-based group that promotes reconciliation.
"There are probably many people sitting on the fence, wondering what they ought
to be doing," Tonkin said of reform-minded members of the government. "What she
has done is very important. The longer this process is maintained the more
likely that the changes that we've seen will be sustained and in due course be
irreversible."
Market Access
A political breakthrough would allow U.S. and European companies greater access
to a market of 62 million people who are dependent on neighbors China, India and
Thailand to grow one of Asia's smallest economies. Those countries poured more
than $25 billion into ports, power plants and pipelines to capitalize on
Myanmar's rich natural resources and strategic location on the Indian Ocean.
U.S. sanctions against Myanmar, formerly known as Burma, have been tightening
since 1988, when President Ronald Reagan suspended aid and banned arms sales
after soldiers killed about 3,000 student protesters, according to an estimate
by Human Rights Watch. A series of congressional acts and presidential orders
since then have banned imports, restricted money transfers, curbed aid money,
frozen assets, prevented engagement by the World Bank and other agencies and
targeted jewelry with gemstones originating in Myanmar.
Easing Sanctions
Before President Bill Clinton banned new investment in 1997, boycott threats
prompted U.S. companies such as PepsiCo Inc., Levi-Strauss & Co. and Apple Inc.
to leave Myanmar. Chevron Corp., based in San Ramon, California, is one of the
few U.S. businesses operating in the country, having obtained a 28.3 percent
stake in a gas field and pipeline that stretches to Thailand through its 2005
purchase of Unocal Corp., which made its investment prior to the 1997 ban.
Clinton told Thein Sein that the U.S. would loosen restrictions on engagement by
the World Bank and the United Nations, she told reporters on Dec. 1. Other
measures leading toward an end to sanctions, including an upgrade in diplomatic
relations, would occur if Myanmar takes additional steps, such as releasing more
than 1,000 political prisoners still behind bars, she said.
"We agreed that an important test of the government's stated commitment to
reform and change will be the unconditional release of all prisoners of
conscience," Clinton said after meeting with Suu Kyi.
Thein Sein told Clinton that his government would release more political
prisoners, sever military ties with North Korea and seek new ways to ease
violence with ethnic groups seeking more autonomy, according to a U.S. official
speaking on condition of anonymity.
Political Freedom
At a Dec. 1 dinner with Clinton, Suu Kyi said the U.S. should support reformers
in Myanmar's government and encourage officials who are still unsure to join
them in fighting hardliners opposed to more political freedom, the official
said.
Yesterday, Clinton and Suu Kyi strolled through the yard in front of her
two-story paint-chipped house, where dozens of local and foreign journalists had
gathered. During their meeting, Suu Kyi acknowledged opposition in some parts of
the U.S. to engagement with Myanmar, and made the point that it was important to
listen to voices inside the country, the U.S. official said.
Suu Kyi, 66, will run in an election for the first time after her party voted to
rejoin the political process on Nov. 18. Last month, she said Thein Sein was
"very genuine in his desire for the process of democratization."
The Nobel laureate called for international agencies to help improve health and
education in Myanmar. She also said her country aims to maintain "good,
friendly" relations with China.
"If we go forward together, I'm confident that there will be no turning back
from the road towards democracy," Suu Kyi told reporters in a 10-minute joint
appearance with Clinton. "We are not on that road yet, but we hope to get there
as soon as possible with the help and understanding of our friends."
Burmese gem emporium to be held in November cancelled
Mizzima
November 3, 2011
The annual Burmese Gem Emporium held each November has been cancelled, said an
official from the Myanmar Gems Enterprise. This year, successful gem sales were
held in March and July.
The official declined to say why the gem sale was cancelled, but traders said
some gem traders from foreign countries had not made full payment. "For gems
sold in the previous gem emporium, less than half of the money has come in. The
traders in foreign countries have not made full payment," said a gem trader from
Mandalay who sold jade in the emporium in July.In May, the Chinese government
increased the tax on gems from Burma from 10 percent to 30 percent, and the
demand from Chinese traders is falling, according to traders.
In the gem emporiums, buyers must make a partial payment upon purchase and make
the total payment within three months. A record value of US$ 2.8 billion in gems
was sold during the emporium held in March. In the emporium in July, US$ 1.5
billion in gems were sold. Traders said China's gem traders couldn't buy Burmese
gems at competitive prices because of the increased tax rate. Moreover, because
of the strong kyat, gem traders said they are placed at a disadvantage."There is
no gem market as large as China's gem market. We have to rely on it.
We cannot
rely on other markets. If they do not buy, the jade trade will be dull," said a
gem-mining businessman in Mandalay.In Burma's gem emporiums, jade is the most
purchased item. On average, a total of about 5,000 gem traders from China, Hong
Kong, Japan, Thailand and Korea visit the gem emporiums each year. Most of the
visitors are Chinese.
After the former Burmese junta suppressed the 2007 Saffron Revolution in
September 2008, the U.S. enacted the legislation - JADE Act of 2008 - banning
the import of gems from Burma.Since 1964, the Ministry of Mines has held a gem
emporium each year. From 1992 to 2003, two gem emporiums were held each year.
Since 2004, three gem emporiums are held annually.
The first gem emporiums were held in the Inya Lake Hotel in Rangoon. Since 1993,
emporiums were held in Rangoon at the gem museum on Kabaaye Pagoda Road and the
Convention Center on Min Dhama Road. Starting in November 2010, the Maniyadanar
Hall in Naypyitaw has hosted the gem emporiums.
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