Turkey diamonds Turkey shuts door on 'blood diamonds'

Diamonds from the conflict areas of Africa, brought to public attention by the movie ‘Blood Diamond,’ will no longer be allowed to be brought to Turkey.

As of August 14, 2007 Turkey has been included in the Kimberley Process Certificate Scheme, which prevents the trade in conflict diamonds. The diamonds that are not perceived as ‘clean’ according to the data bank established in Belgium will not be allowed to be brought to Turkey

MUSTAFA KUTLAY    ISTANBUL - Hürriyet

Brought to public attention with the movie ‘Blood Diamond' staring Leonardo Di Caprio, conflict diamonds from Africa will no longer be allowed to be brought into Turkey. As of August 14, Turkey has been included in the Kimberley Process Certificate Scheme, founded under the leadership of the Republic of South Africa in order to control the international rough diamond market, said Osman Saraç, chairman of Istanbul Gold Exchange (İAB). The number of countries in the Kimberley Process has increased to 47. 

Gold Exchange the authorized trader

The İAB has been assigned as the authority for the import and export of rough diamonds, said Saraç. 

The İAB is entitled “to conduct the import and export transactions of rough diamonds within the framework of the Kimberley Process Certificate Scheme, to supervise whether the presented certificates meet the minimum standards pertaining to the Kimberley process, to obtain approvals under the surveillance of the export authority of the participant country, and to issue a certificate.” 

The Foreign Ministry, Turkish Treasury and Istanbul Gold Exchange have been working to get the Kimberley Certificate for a long time, said İAB presidency consultant, Ramazan Şanto. Rough diamonds could enter Turkey very easily through illicit ways, said Şanto. 

“One would not recognize rough diamonds on sight. Conflict diamonds could enter Turkey easily even in matchboxes. However, thanks to the Kimberley Process Certificate, the entrance of conflict diamonds to Turkey is forbidden now.” 

What is Kimberley Certificate? 

The Kimberley Process Certificate Scheme, formed under the leadership of the Republic of South Africa with the “Interlaken Declaration” dated November 5,2002, aims to control the diamond market and to prevent illegal trade in conflict diamonds. Within the framework of this scheme, the trade in diamonds that are not documented in accordance with the designated principles is not allowed, and no diamond is imported from, or exported to, a non-member of the scheme. The European Union, the United States and Turkey are among the 47 members of the Kimberley Process. 

After submitting a preliminary participation application on May 31, 2003, Turkey became an official member on August 14, 2007 at the end of legislative and technical procedures. 

Kimberley prevents De Beers from bringing diamonds to Turkey 

Turkey's absence in the Kimberley Process up to now resulted in some problems, said Şanto. “A while ago, a very famous diamond cutting expert from De Beers wanted to bring a special diamond to display at a conference in Turkey. However, it was foreseen that there might problems taking the diamond out of Turkey, as the country was not included in the Kimberley Certificate. Therefore this diamond could not be brought to Turkey,” said Şanto. 

The movie brings the illegal trade to public attention 

The Hollywood production “Blood Diamond” brought the illegal diamond trade to public attention. In the movie, set against the backdrop of civil war and chaos in Sierra Leone, diamond hunter Danny Archer (Leonardo Di Caprio) and South African Solomon Vandy (Djimon Hounsou) finds a very rare pink diamond. The movie tells the story of diamonds extracted under inhumane conditions in conflict regions and sold to the world from a region where child soldiers are pushed to armed conflicts. 

Turkey ranks third in world gold market 

ISTANBUL – Anatolia news agency 

The Turkish gold market leaped ahead of the United States gold market for the first time in the second quarter of 2007 and became the world's third largest gold market, said Murat Akman, Turkey general manager of World Gold Council (WGC). 

Compared to the second quarter of last year, Turkey's gold demand increased by 14 percent to a record high of 52.2 tons in gold jewelry, and by 5 percent to 20.5 tons in investment, again a record high for the second quarter, said Akman. 

China, India, the Middle East and Turkey experience the highest increases 

Demand for gold jewelry rose by 37 percent to a record $14.5 billion in the second quarter of 2007 compared to the same period last year, according to WGC data. 

The increase was experienced most in the gold markets of China, India, the Middle East and Turkey. 

Factors such as the normalization of fluctuations in gold prices, the consumers' accepting the gold prices, which saw a 6 percent increase compared to the same period last year, and strong economic performance in significant markets resulted in increased demand in the second quarter of 2007. 

Gold demand increased unexpectedly in many markets during the second quarter of the year, said WGC CEO James Burton. Gold sales on the basis of the dollar have doubled in four years, he added. 

Gold sector has no concerns on uncertainty 

The Atasay firm, which has attracted a lot of attention with a promotional scheme it initiated six months ago, offering solitaires in 36-month installments, is about to initiate another noteworthy campaign now. 

“There is always demand for gold during election processes and periods of political uncertainty. The sector has no concerns on uncertainty. The political agenda currently is not affecting our consumer profile much,” said Atasay Kuyumculuk CEO Cihan Kamer. 

Within the scope of “Altıncı Günde Altın Fırsatlar – Golden Opportunities in the Sixth Day” campaign carried out by Atasay Kuyumculuk for its 70th anniversary, the company will offer a 25 percent discount for its gold and diamond products on the sixth day of every month starting October. (The title of the campaign is based on word play since “altı” means six, and “altın” means gold in Turkish.) The products with “smiling face” will be on offer with a 25 percent discount and six-month installment for those that use credit cards valid at Atasay stores, said Atasay Mağazacılık (the sales branch of the firm) Managing Director Haldun Ulutürk. In addition to this, the company will offer the opportunity to pay in six installments. For the launch of the campaign all products of the previous season will be offered at a 25 percent discount from August 18 to September 2. The scheme will be implemented in the 124 stores that Atasay has in Turkey. 

Jewelry exports of the gold sector, which was $595 million in 2002, rose to $1.17 billion in 2006, said Kamer, at a press conference related to the promotional scheme. A growth of almost 100 percent has been attained in four years, said Kamer, adding that Atasay's jewelry exports also rose by 12 to 16 percent. 

Compared to the first quarter of last year, gold jewelry sales to domestic customers increased by 13 percent while the sale to tourists rose by 10 percent, and to the oversees market by 10 percent, said Kamer. 

In 2007, an increase by 30 percent in dollar terms, and 15 percent in terms of tonnage was witnessed. The difference between those two derived from price increases, said Kamer. The largest share of Turkey's gold export goes to the United States, said Kamer, adding that United Arab Emirates, Dubai, Switzerland, Italy and Germany follow the U.S. on the list respectively. 

The share of gold jewelry in total exports shifted in the range of 1.25 percent to 1.68 percent between 2002 and 2006. Turkey's diamond market experienced a 14 percent growth in 2002 and 15 percent growth in 2006, Kamer said. A 10 percent growth is expected in gold jewelry exports for 2008. 

Atasay to open new stores 

Jewelry designed and produced by Atasay reaches five million women in 62 countries via eight offices around the world, said Kamer. With an addition of 22 more stores by the end of 2007, Atasay aims to have a total of 124 stores in Turkey. The company aims to open stores in New York, Tokyo, Milan, Moscow and Shanghai by 2010, reaching a total of 50 stores. 

Commercial products with high design value are produced in China while value added products are being produced in Turkey, said Kamer. 



Atasay has attained great success with the sale of solitaires in installments campaign, and 50,000 sales have taken place, said Kamer, adding that works to form sub-brands are ongoing. Atasay is currently negotiating a partnership with a company in India, which is deemed as the world's largest gold sector. 

Currently, Atasay has stores in New York, Milan, London, Dubai, Mexico City, Hong Kong, Guangzhou and Moscow. 

Turks cling to ‘solitaire diamonds'