Hot luxury goods market makes diamond investors take notice

Hot luxury goods market makes diamond investors take notice
By: Elisabeth Lawrence

As investors are discovering, the market for diamonds has never been hotter. At the retail level, LVMH Moet

Hennessy Louis Vuitton saw a 16 percent increase in sales of watches and jewelry in 2005. The typical luxury

goods customer spends close to $50,000 each year on such goods, and the luxury market is expected to continue

their upward growth trend.

Hollywood celebrities are adding their luster to the diamond market. When they shine, there's more than their

star wattage at work. As evidenced on the Red Carpet, award winners and runners-up alike are adorned with jewels.

Geena Davis, star of ''Commander-in-Chief,'' was recently seen on the Red Carpet in an Escada dress accessorized

with ruby earrings surrounded by 14 carats of diamonds. But women aren't the only stars who add sparkle to

diamonds. Trendsetter and leading man Jamie Foxx often shows up to Hollywood galas wearing his favorite diamond-

studded watch.

Celebrities aren't only wearing diamonds; they're also designing and lending their names to jewelry lines. The

Paris Hilton Limited Edition Watches, for example, feature up to nine carats of diamonds and over 1,000 stones.

Abazias Diamonds (www.abazias.com), the exclusive online retailer of the Paris Hilton line, features three of the

watches: the Cotton Candy, Canary, and Pink in Love.

''Highly recognizable celebrity brand names - such as Paris Hilton - appeal to a very broad cross section of our

customer base,'' says Oscar Rodriguez, CEO of Abazias Diamonds. He adds, "Abazias showcases over 70,000 diamonds

online, and our quality and variety of stones combined with our incredible pricing makes Abazias peerless in the

marketplace."

Diamond trading and mining are trending upwards. Analysts are projecting that the world's largest diamond

merchant, De Beers' Diamond Trading Company, will rack up $6.6 billion in sales during 2006. In addition, news

reports indicate that mining operations around the globe are gearing up for record production.

In Venezuela, for example, President Hugo Chavez has formed the National Mining Corporation, which will take back

underutilized mines and increase production in that country. At the same time, Australia and Canada are drawing

investors for mineral exploration. In Africa, Namibia's stable government has paved the way for mining

investments by offering mineral royalties, and is optimistic that the 28 percent diamond production increase

during 2004 will be repeated.

Increases in diamond imports also bode well for investors. In China, for example, imports increased by 11 percent

in 2005.

Here in America, new sales markets are increasing the demand for diamonds. Men's jewelry sales are up a reported

20 percent, and as a result, an increasing number of fine jewelry manufacturers are introducing or expanding

their men's lines. The next time the Red Carpet is rolled out, expect to see Hollywood's male elite sparkle - and

maybe even outshine - their female co-stars!