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Las vegas diamonds

Possibility of a New Diamond Exchange in Las Vegas 

(December 18, '06, 4:58 Signe Katz found at idexonline.com ) 

The team from the World Jewelry Center project in Las Vegas is in Israel trying to drum up potential clients for its new jewelry complex set to open in 2010. Managing Director of the project, William Boyajian, said, “There is talk of creating a diamond exchange, a bourse, in the building, if it’s good for the industry and I’m leaning in that direction right now.” 

Ya’akov Almor, media liaison for the World Federation of Diamond Bourses (WFDB), said that a new bourse “is welcome, it all depends on the needs of the trade. The WFDB is always in favor of enlarging its base as long as there is a viable basis for its existence.”

Boyajian admitted that the new center may take away from other world centers but that he hopes the jewelry industry can see the advantages in having a world jewelry center in Las Vegas.

Boyajian is meeting with Israeli diamantaires to tell them about the benefits of buying a piece of the World Jewelry Center. The building will be composed of two structures; the 60-story tower for jewelry dealers and manufacturers with the top 12 floors reserved for residential condominiums, and a retail jewelry center that will hold approximately 60 retail stores. The offices are for sale with no option for leasing while the retail center will only be available for lease.

A strong draw for the jewelry industry, according to Boyajian, is the fact that the center will most likely be “a foreign trade zone.” For the industry, that means goods can move in and out of Las Vegas duty-free and could thus, be used as a distribution center. Duty would only apply to goods once they are sold.

Boyajian said he would like to see 10 to 15 quality Israeli firms buy properties in the tower over the next six months. He described interest from Israeli diamantaires as “good.” He said that so far, Avi Paz, president of the Israel Diamond Exchange, has signed a letter of intent to buy a property in the building. Shmuel Schnitzer, former president of the IDE, has also signed a letter of intent.

The World Jewelry Center plans to attract unique clients from the diamond, pearl, colored gem, and jewelry industries. To this end, the project will launch a multi-million dollar advertising campaign. The Center has been given one year by the City of Las Vegas to get 25 percent of the clients to sign letters of intent. In the first four months, the Center said it has signed on 15 percent of the number of clients they require to move ahead with the project.

Las Vegas is the fastest growing city in the U.S. with 40 million visitors in 2005. It is also the country’s largest convention market.