De Beers, the world’s largest diamond producer, said sales are climbing this year and mines in Botswana probably will resume production next week.

“Sales have been steadily increasing since the end of last year,” spokeswoman Lynette Gould said in an e-mailed statement dated yesterday. Cash flow was positive in March, and the Johannesburg-based company is “optimistic” about meeting annual goals, she said.

De Beers suspended mining in February at a joint venture in Botswana that produces a fifth of global diamond supply and said it would borrow $500 million from shareholders. The worst recession since World War II has sapped demand for jewelry, spurring Rio Tinto Group and other mining companies to reduce production and payrolls.

The Debswana venture, which is 50 percent controlled by Botswana’s government, expects to resume production at its Jwaneng, Orapa and Letlhakane mines on April 15, Gould said. The venture produced 32.3 million carats in 2008.

Diamond prices fell 7 percent in the first quarter after slumping 9.2 percent in 2008, according to a PolishedPrices.com index. Tiffany & Co., the world’s second-largest luxury-jewelry retailer, reported a 76 percent plunge in fourth-quarter profit last month after holiday sales shrank in the U.S. recession.

Source: www.bloomberg.com

The diamond industry does not exist in a bubble. This was proven when the famed jewelry store Tiffany in New York City lowered their diamond prices.

According to a New York Times report, even De Beers, which managed to maintain the high prices of diamond jewelry by restricting its supply, is feeling the economic crunch. Last year. The powerful diamond supply asked its workers in Botswana to have an extended Christmas vacation. This only means that there is more supply than demand, which would in turn cause the prices of diamonds to decrease.

The situation may look bad at this, looking at the dry facts. In the United States, the retail sales for diamond jewelry dropped to around 20 percent last year. The United States holds around half of the world’s diamond demand.

This is definitely a complete turnabout from the previous stature of the diamond industry. The price of and the demand for diamonds did not experience any drastic downturn for more than 20 years. Experts say that the demand for diamonds in major countries in Asia have not yet experienced any significant decline, although this is predicted to change after the recession begins to take its claw out in the said region.

However, experts say that this can be a good time for buyers to take advantage of the situation. Buying diamond engagement rings or any type of diamond jewelry will be easier at this point, experts say, due to the decreased in the price. Owners of diamond pieces should not let go of their diamond pieces just yet, even with the fear of constant decrease in prices.

Experts say that once the economy stabilizes, the demand for diamonds may return to normal, hence changing the price of diamond pieces yet again. Meanwhile, those looking at diamonds as an investment should considering buying diamonds now, especially if they have the means and they do not plan to part of their pieces in the near future. The New York Times reports that while the industry is definitely suffering now, its long-term fundamentals are very good, which means consumers have no reason to worry.

Diamonds are known to be the hardest known mineral in the world. It is also a noted symbol of elegance, class, and beauty. This isn’t exactly surprising, since diamonds were many things to many cultures several centuries ago. In different cultures and in different countries, diamonds meant many things-they were considered holy, divine, in possession of mystic powers. Just the same, diamonds represent something else today. Let’s take a look at how diamonds were viewed before, and how they are considered now:

• Diamonds were previously connected with the divine and the unattainable. For example, the Greeks once believed that diamonds were actually tears from their gods while the Romans considered diamonds as parts of stars that have fallen from the earth. This may seem like merely an excuse to qualify the beauty of diamonds, but they reflect who these people view beauty.

• Today, diamonds are considered as a symbol of love and eternity. After all, they are the made materials used for engagement rings. Thanks to its strength (it isn’t the hardest materials on earth for nothing) and its durability (it is known to survive for several years, even centuries), it represents eternity in a relationship or a marriage. Of course, using these diamond rings doesn’t really help couples remain together forever, but diamonds surely make a great symbol of love.

• Because of its cost, diamonds also represent class and show one’s status in society. These stones are not cheap, so anyone wearing them is considered to be of importance in society. This is why the press always takes note of the diamonds celebrities wear during formal and important functions and events, something particularly true in the entertainment industry. Celebrities always make sure that thy wear their best pieces in events such as the Oscars, the Grammys, and the Golden Globes.

There is no denying that diamonds symbolize many things to many people, and they figure prominently in each and everyone’s lives, regardless how they are used. This only goes to show the diamonds will continue to be significant for years to come. Definitely, the song rings true: diamonds are forever

If you have a significant other in your life and have made the decision to purchase a ring for her as a surprise, there are some tips to keep in mind so that you “get it right” — so that you purchase a ring that really were suit her tastes and desires.

Continue reading Choosing the ring without her knowing →