Diamond Prices Rise
Diamond prices rise on mines depletion, growing demand
Rough diamond prices were expected to continue climbing “across the market” this year, LSE-listed Gem Diamonds (LSE:GEMD) said recently.
The Clifford Elphick-led company said in an interim management statement that its price index showed increases in every sale since the September 2011 market correction. The index was up by 7% on the year.
“Gem Diamonds anticipates rough prices across the market to continue increasing into the second quarter, and despite the relatively thin volumes being traded in the polished market in high-end goods, prices in these goods, both in the polished wholesale market and high-end branded auctions are expected to improve further,” the company reported.
A recent report prepared by market research firm Bain & Co for the Antwerp World Diamond Centre also stated that diamond jewellery prices were likely to rise on the back of increased demand from Indian and Chinese consumers, with demand for diamonds, in carat terms, possibly increasing by 6% a year to Y 2020.
However, the report pointed to the supply of diamonds only increasing by 2.8% a year, adding extra buoyancy to the price. It was also noted that financial speculation might influence the anticipated price increase for diamonds and the depletion at the mines.
Gem Diamonds reported that the sales value of rough diamonds increased by 46% to $24.3-m, despite the amount of carats sold falling by nearly 28.5%, to 23 200 ct for the period from 1 January to 15 April 2012.
GEMD: 194.90 Up 2.30(1.19%) 11:35 a EDT 7 August 2012
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Paul A. Ebeling, Jnr.
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster’s Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.
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