Diamond prices bounce back 40%
Milan - Diamond prices are now above pre-crisis levels after a 35% to 40% rise so far this year, helped by increased scarcity and an emerging role as an investment, the executive director of jeweller De Beers said.
"Diamonds are more scarce than before the crisis. And there are three markets where demand is very strong: China, India and the United States," said Stephen Lussier in an interview in Friday's Il Sole 24 Ore.
"The US still represents 40% of global demand," he said, adding that Americans had rediscovered diamonds as a form of diversification investment.
"As an investment, diamonds are more similar to art. You need to know what you're buying," Lussier said.
However, unlike gold, 99.5% of diamonds still end up in jewellery, he added.
Unlisted De Beers, the world's largest diamond producer, is 45% owned by global miner Anglo American [JSE:AGL].
Lussier said De Beers' diamond production, which had fallen during the financial crisis, has increased by 10% to 15% this year and the group will run at full capacity by 2012.
"helped by increased scarcity" - that only means they held back more diamonds in order to drive the price up. we all know how this business works, and the fact that it works this way makes it a rotten investment for me, period.
Very, very, very good news. I am doing work for people building diamond plants for mines world wide and they nearly stop 100% in there building production. Hopefully the orders, for new plants, will come in and my client will get busy again.
I mined it myself and it stay the prettiest precious stone that there is. Prettiest is not the right word. Love or something stronger comes to mind.lol.