The story associated with promoting palladium to the jewelry market was continued. As reported earlier, the results of a comprehensive research performed with participation of the Platinum Guild International and Palladium Alliance International as independent consultants under the auspices of the International Platinum Group Metals Association served the basis for a decision to develop and implement palladium jewelry sales. Major activities within the first stage of this operation will be aimed at the markets of China and the U.S.A. These activities will be led by Mining-and-Smelting Combine Norilsk Nickel, the world’s largest palladium producer, aided by major producers of this metal from the Republic of South Africa (Anglo Platinum, Impala Platinum and Tonmin) and the U.S.A. (Stillwater Mining Company). The program is targeted at a clear and explicit palladium positioning as a jewelry brand, which is to be done in cooperation with designers, manufacturers and sellers of jewelry.  In the opinion of the program initiators, this will permit to set up a stable and growth-promising market. 
One should remember that earlier, the greater part of commentators were positive about the NorNickel idea when its discussion started, although MJP General Manager Denis Adamski, for instance, was doubting the future of palladium as a jewelry brand. During the month passed since breaking the news, its discussion spread to foreign mass media (see the related news review).  
Demand for palladium in 2009 may exceed its supply for the first time in five years. The automotive industry and jewelry manufacturers were the major driving force of this demand. This was reported by Bloomberg with reference to the forecast made by Societe Generale. Investbank believes that these industries will switch over to palladium leaving aside the more expensive platinum. In 2008, the market is expecting an excess of 810,000 troy ounces of palladium against 691,000 ounces last year. According to Interfax, UBS also raised its price forecast for this metal in the current year by one third, up to $465 per ounce from $350 per ounce expected by the bank in January. In the opinion of UBS, consumers will also be switching over from platinum to palladium due to the NorNickel program aimed at broadening palladium jewelry sales. From the start of this year, the palladium price went up by 21%, while that of platinum rose by 33%.
According to the materials of the Russian Cabinet of Ministers, the Russian Federation Government  decided at its session on April 10, 2008 to submit to the State Duma a bill cancelling the monopoly right of Almazyuvelirexport, a government-owned foreign trade amalgamation, for exporting platinum group metals.
As reported earlier, this limitation contradicts the existing world practice of exchange trade, which puts the Russian producers and mining-and-smelting entities engaged in platinum and platinum group metals (PGM) business into unequal competitive conditions in the world markets and does not permit them to pursue a completely adequate pricing policy consistent with current fluctuations in the world commodity markets.
However, the applicable legislation preserves the regulation – excessive at the time when Russia is moving to join the World Trade Organization (WTO), - under which the organizations having the right to export platinum and PGM from the Russian Federation may do that only through Federal State Unitary Enterprise “Foreign Trade Amalgamation “Almazyuvelirexport.”
Cancelling the one-channel export pattern will permit to bring the platinum and PGM export practice into compliance with the requirements of the WTO and the regulations of the Russian anti-monopoly legislation, as well as to provide equal competitive conditions in the world precious metals market for the Russian foreign traders.
The necessary state supervision over and coordination of platinoid export will be maintained, as with other precious metals, by a system of tariff regulating measures, as well as by an export licensing procedure and a special pattern of state and customs control.

On March 23, the Krasnoyarsk plant of non-ferrous metals named after V.N. Gulidov (Krastsvetmet) celebrated its anniversary. It was 65 years ago in Krasnoyarsk when platinum and palladium were extracted from Norilsk slime. The anniversary celebration was widely covered by the Krasnoyarsk mass media, but it went unnoticed by the federal press.
To commemorate the 65th anniversary, the Krasnoyarsk plant of precious metals named after V.N. Gulidov invited journalists for an excursion. The plant experts showed to their guests the silver and gold smelting workshops, the rooms where jewelry is made, and the safe-room for keeping finished products.
The last place to be visited by journalists was the jewelry workshop, the “Vremya Goroda” reported. Alexander Shuvakov, Jewelry Production Director, said that gold chains accounted for 90% of the total output. There are over 150 machine tools at the plant to make them, including some machine tools manufactured in 1994 and some most up-to-date machinery.  The remaining 10% of products include rings, necklaces, pendants, earrings and jewelry pieces with precious gems.

American company Tiffany & Co. of all foreign manufacturers and sellers of jewelry is invariably attracting attention of Russian mass media.
According to RosBusinessConsulting, this manufacturer of jewelry and exclusive gifts raised its net profit by 20% making up to $304 million in the fiscal year of 2007-2008 ending on January 31 as against $254 million in the last fiscal year. During this period, Tiffany sales were up 15% bringing $2.9 billion vs. $2.5 billion in 2006. These data were furnished by the company in its financial report.
Net earnings of Tiffany in the fourth quarter declined 16% to $118 million ($0.91 per share) compared with $140.5 million ($1.09 per share) in the fourth quarter of the prior fiscal year. The company’s sales for the mentioned quarter rose to $1.1 billion, up 10% over the similar indicator in 2006 fixed at $959 million.
Tiffany & Co. believed these altogether successful financial results were due to its current operation and strengthening its positions on international markets.
 According to “The Vedomosty” daily citing “The Wall Street Journal,” Tiffany’s sales in the United States increased 4%, while abroad they rose 21% due to the weaker dollar and sales growth in Great Britain and some Asian countries. The company warned about possible sales decrease in the U.S.A. in the first six months of the year. However, investors met the news positively, and the price of company shares after the report had been published went up 10% reaching $42.65.
The Tiffany results demonstrate the dualism of the jewelry retail market.  In recession periods, the more affluent clients continue to buy, while the middle class and people, who are purchasing too expensive things just to stand out in the crowd, start saving. During the last few years, jewelry suppliers counted on demand from the second category of buyers, so their sales dropped in the worsened economic environment. For instance, in February the Neiman Marcus stores saw a 7.3% drop in sales, while at Nordstrom the sales decreased by 5.8%.
Tiffany and other companies possessing large international networks are better off. This year, Tiffany will open 20 stores outside the U.S.A. – almost three times as many as at home. However, analysts believe that Tiffany’s network should achieve sales growth in the U.S.A. and Japan in the first place because 77% of sales fall on these countries.
Nevertheless, even in the face of temporary difficulties, there are no problems awaiting Tiffany in the future, RosBusinessConsulting reports. For instance, Doug Fleener, President of Dynamic Experiences Group, a consulting company, noted that Tiffany would recover quickly. “They will be the first to bounce back,” he added.  Tiffany’s world famous brand and the appeal of Tiffany jewelry to tourists visiting the U.S.A. all bode well for the company. Even more so that in 2012 there will be opened an enormous trade centre in New York, which will also house one of Tiffany’s stores. “When the new Trade Center is up the company’s sales will start growing rapidly,” said Joanne Podell, executive director for Cushman & Wakefield.

Several times the press informed about Adamas of Moscow getting ready to buy the Chelyabinsk-based Fianit Jewelry Company, which was part of the Mizar Group. The representatives of the Moscow company turned out to be the source of this information. Fianit includes a small jewelry production line and a jewelry network, the largest in Chelyabinsk, where Adamas has already opened two stores, the “RBC daily” reminds. Fianit also has its stores in Kurgan, Nizhni Novgorod and Yekaterinburg. Pavel Sidorenko, Marketing Director of Adamas, told to the “RBC daily” that his company was auditing the Chelyabinsk network and after the results would be ready, they would decide on the amount of this deal. So far, it has not been disclosed, but according to expert estimates, it may reach $15-20 million.
However, later Semyon Mitelman, a co-owner of Fianit, repudiated the information about possible sale of his company and negotiations with Adamas. According to him, there were repeated offers to sell Fianit, but no talks were held.
“On more than one occasion we received offers to sell the company from large-scale players of the jewelry market, but we have not held any negotiations with anyone,” Mr. Mitelman said. In his opinion, the information about possible sale of his network was part of an action to decrease the price of Fianit. “Some people name figures, according to which Fianit is valued at $15-20 million, although this amount is clearly marked down,” he noted. Meanwhile, Adamas is insisting it is negotiating the acquisition of the Chelyabinsk retailer with Fianit owners, the “Kommersant-Urals” says.  “Maybe Mr. Mitelman wants to keep this in secret so far. The talks are going on with one of the Fianit owners,” Pavel Sidorenko told to the publication.

The world’s priciest “Diamond Crypto” smartphone was made at the Moscow workshop of JSC Ancort Company under the guidance of Peter Aloisson, an Austrian designer. Now the owners of already humdrum Vertu phones, so far considered prestigious, have an alternative – “a handset” worth almost one and a half million dollars, the “Express-Gazeta” says.
It took eight months to make this masterpiece of jewelry art. All the metal parts of this phone are cast of platinum with pink gold inserts, while its side panels are made of ebony. The navigation key is produced in rose gold and carries 28 diamonds.  All in all, there are 50 diamonds on the phone body.
The handset supports SMS, MMS and Internet. The model operates Windows ÑÅ, it has a TFT display and can memorize 4,000 telephone numbers. Apart from that, programmers managed to reach an unsurpassed level of protection from any attempts of outsiders to interfere with its contents.