Zimbabwean ‘Blood Diamonds’ Back on the Market
Diamond prices have largely recovered from the 2008 global economic crisis, but the industry is still not back to pre-2008 levels of demand.
Diamond prices have largely recovered from the 2008 global economic crisis, but the industry is still not back to pre-2008 levels of demand.
Diamond mining firms looking to cash in on higher prices and increased demand for stones are starting to ramp up production. The one major company that is curtailing operations, De Beers, is cutting production 5 percent per year for 5 years to increase mine life.
As the diamond market slowly returns to pre-crash levels companies looking to increase profitability are calling upon their countries to change tax codes to be more favorable to the diamond market. Other countries that are looking to capitalize on mineral wealth are imposing new tax regulations on mining operations to benefit their nations.
Ahead of the JCK Jewelry Show in Las Vegas, new US sales and demand numbers look promising. Imports of both rough and polished stones rose, as well as increased sales numbers from Tiffany & Co. Also, a wrap up of news from diamond mining companies, including the deal between Petra Diamonds and De Beers.
The days of De Beers dominance of the worldwide diamond market may be over as Alrosa, Russia’s diamond giant, is the new King. Anglo-American may be looking to publicly list De Beers in London and Botswana, as well as selling shares of the under-performing company. Healthy sales numbers from world production centers and increasing imports to the US are making for a strong 2010.
A $490 million deal between Russian Diamond giant Alrosa and Indian firms strengthens India’s diamond industry. Companies such as Rosy Blue and Diamond India, headquartered in Surat, India are responsible for 90 per cent of the global polished diamond output.
Diamonds are a must-have in investment portfolios. With prices set to rise in 2010, treasure the rocks.
Though there are clear signs of a financial recovery around the world, at what price would there be a recovery for roughs? Is the `new-normal' daunting for the diamond industry?
Can the diamond market look forward to a complete recovery by end-2010? There are some in the sector who express confidence that the worst is over, and that prices for uncut as well as polished, have bottomed out. 2010 looks good, they say. Yet there are others who differ in opinion.
Russian Prime Minister Vladmir Putin pledged on Friday $1 billion in state support for diamond miner Alrosa to help it ride out a steep global dip in demand for gemstones. For full story, click here
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