The diamond industry’s most famous chart is the hungry crocodile, the ancient reptile’s jaws wide open, reflecting both a predicted shortage of gems and the inevitable price rises that will come with it.
Rough price forecasts are a key input into modelling diamond mining cash flows. Gemdax discusses the divergent price trends of different rough diamond productions at the Natural Resources Forum.
Watch the talk – http://naturalresourcesforum.com/companies/gemdax/
The recovery in diamond prices is leaving out the smallest and lowest-quality gems. For the smallest diamonds, prices are down 15 percent this year, data compiled by Bloomberg show. That compares with an average 7 percent increase for all stones.
Standard Chartered Plc is demanding more loan protection from clients in the Indian and Belgian diamond trade as the bank seeks to tighten standards, according to people with knowledge of the new policy.
A century of first-hand experience in the art of managing markets is helping diamond producers accomplish what the rest of the mining industry has been unable to during the commodity collapse: shut down supply.
De Beers, the one-time world diamond monopoly, is bowing to market forces.
The Anglo American Plc unit, still producing about 30 percent of supply, is said to have lowered prices almost 10 percent last month, and is plowing tens of millions of dollars into an advertising push to spur jewelry sales. That’s after two reductions in its annual output target, by a total of as much as 15 percent, failed to halt an accelerating slump in prices of the uncut gems.