Posted by: FAD in De Beers on
Sep 02, 2009
De Beers held its biggest sale so far this year in August as diamond prices improved, RBC Capital Markets said, citing cutters and polishers it didn’t identify, Bloomberg reported. De Beers probably sold diamonds worth as much as $475 million at its seventh sale, analyst Des Kilalea said in a note to clients dated yesterday. That brings [...]
Posted by: FAD in De Beers on
Jul 28, 2009
The world’s largest diamond producer, De Beers, has reported a 99-percent drop in net profits for the first half of 2009 to just $3 million after demand for luxury goods was hard hit by the global recession. The diamond giant, which has a 50/50 partnership with Government in Debswana, made $316 million in the same period [...]
Posted by: FAD in De Beers, Botswana on
Apr 09, 2009
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” [...]
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
Posted by: FAD in recession, diamonds, De Beers on
Mar 13, 2009
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.
