5 replies to this topic

[barry]

Reuters and South Africa's Mining Weekly report this morning that DeBeer's is poised to further increase diamond rough prices in 2005 after significantly increasing prices by approximately 15-20% in 2004 and setting record sales for the year.

The world's biggest diamond producer, De Beers, is expected to have raised sales by 4.7%, to $5.76-billion, in 2004 thanks to higher prices and growing demand, these analysts said.

This was the average forecast of five analysts surveyed by Reuters, whose estimates ranged from $5.74-billion to $5.8-billion, compared to last year's $5.5-billion.

De Beers, 45%-owned by diversified mining group Anglo American, announces its 2004 results tomorrow.

"I think (the year) will definitely be better than consensus; we have already seen how well other luxury goods groups have done," said a fund manager.

Last week, Italian jeweller Bulgari said it met its 2004 sales forecast thanks to a 10.5% jump in the Christmas quarter.

De Beers said last month it expected global demand for diamonds to have grown at least 5% to 6% in 2004 and will focus on driving jewellery sales higher again this year.

"In 2002, we saw a 2% increase in consumer demand worldwide, in 2003 a 4% increase, and in 2004 we are hopeful of seeing a figure of 5% or 6%, or even higher," said Gareth Penny, managing director of De Beers' Diamond Trading Company (DTC).

DTC, De Beers marketing arm, said last August it had raised rough diamond prices by an average of five percent after recording a 7% rise in sales during the first six months of the year.

The August hike followed price increases of 3% and 5% in January and March, respectively.

This will certainly translate into higher diamond prices at the consumer level this year.

[nightmare]

quelle surprise!

[ben]

Life will certainly get even tougher for the smaller cutters out there with no downstream channel... would hate to be in their shoes. However, every industry goes through this and the diamond industry is way overdue.

Just my 2c... Barry, thanks for the posting!

[barry]

ben, on Feb 10 2005, 05:47 PM, said:

Life will certainly get even tougher for the smaller cutters out there with no downstream channel... would hate to be in their shoes. However, every industry goes through this and the diamond industry is way overdue.

Just my 2c... Barry, thanks for the posting!

What would Ben Franklin have to say about this?

[Princess Tess]

How about:

"Do not anticipate trouble, or worry about what may never happen. Keep in the sunlight." -Benjamin Franklin

Princess Tess

[ben]

LOL

Couldn't have said it better myself...

- Ben