Diamond prices are expected to rise in 2007 according to Philip Kenny, Chief Executive of Firestone Diamonds, A UK based diamond mining exploration company.
He explained that global supply is falling �significantly� below demand due to diminishing stock piles of De Beers and a shortage of new mines appearing.
He indicated that this will mean prices are likely to rise in 2007 even though there has been a softening of prices this year (2006)
�There is a broad consensus that there will be a shortfall in supply (in 2007),� he said in a telephone interview. �In recent years the shortfall was made up by De Beers selling down stockpiles, but now they are just selling what they mine.�
There are no major mines expected to come on line in 2007 and current diamond production is steady from the current mines in Africa and South America etc.
�It�s very difficult to find an economically viable diamond mine, and a lot of suitable locations are climatically or politically difficult places to work � like Angola or Northern Russia,� Kenny pointed out. He went on, �The fundamentals on prices weren�t the same five to 10 years ago; the price forecast was not as bullish as it is now,�
However this may be offset by a potential backlash when the movie, �Blood Diamonds� is release soon.
De Beers are quite likely to go into overdrive on their Diamond Promotion Campaign for the next few years to keep diamond prices maintained.
Jack UkaniAdministrator
Email :
jitesh_ukani2005@yahoo.com
