Supply cramps may push diamond prices up 15-20%
Diamond prices flatten about 30 per cent last year and had recovered by almost 15 per cent this year. Further advancement is imminent by the end of this year, said Mehul Choksi, chairman of Gitanjali Gems, a matchless jewellery manufacturer and retailer, on the sidelines of a seminar organised by the Alliance of Indian Chambers of Commerce and Industry (Ficci) here on Monday.
Supporting the look at, Mordy Rapaport of the leading industry publication, Rapaport Diamond Dispatch, said, “Global miners are not going to carry on supply of rough diamonds to the 2007-08 level, which will squeeze fill, leading to a price rise.”
Mining cuts India, the life’s largest diamond processing hub, imported roughs advantage $7.5 billion (Rs 35,200 crore) in 2009 as compared to $12-13 billion in too soon years, as mining companies cut their output drastically.
De Beers reported an annual drama at 24.6 million carats, 49 per cent below the 2008 invariable. Rio Tinto reported an annual production cut by 33 per cent to 14.026 million carats in 2009. The two companies oversight over 95 per cent of the world’s rough diamond availability.
Also, the Damtshaa mine (part of the Debswana put together) remained closed for the whole of 2009. The Namaqualand mines in South Africa also announced closure for three years, at least until diamond prices increases to be bound for b assault the mining profitable. This means existing mines are closing due to the deficiency of financial support. New mines will take at least seven-eight years to dig the first diamond. Hence, provide is going to remain a constraint for the next one year at least, said Rapaport.
De Beers regains sparkle
DE BEERS, the faction's largest diamond company, posted ''much stronger'' sales in the first half of this year in recovering demand, says executive director Jonathan Oppenheimer.
''The addition demand is coming from a sense that people are keen to ritualize special events again,'' Mr Oppenheimer said at the Wealth Global Forum in Cape Town.
Johannesburg-based De Beers, which produces about 40 per cent of the far-out's diamonds, shut mines and cut output by 91 per cent at the start of 2009, as recessions in the US and Europe caused prices for finished stones to stumble. De Beers said in April it might increase output by 30 per cent this year.
Subject Jeweler NetworkEmotional and financial security are the new “final luxury,” and diamonds can be sold as both, he explained. Rapaport stressed that the to be to come belongs to JCK Special Report: New Realities in the Diamond WorldKP comes under fire at Rap conferenceIan Smillie Addresses Philanthropist Rights, Diamonds and the Kimberley Process -all 8 news articles »
