Boz,
Another inset entitled "Maybe an investor's best friend" says as follows:
"...until recently (Asians) have accounted for 40% of the world's demand..."
...
"If that weren't bad enough, the new mines in Canada are about to pour more of the stones out on a depressed world market."
"Paradoxically, this may have made shares in diamond mines a screaming bargain. For if there is today an oversupply of the stones, there may well be a dearth in the near future."
"De Beers spokesman Roger van Eeghen says some of South Africa's and Australia's mines are winding down, Russia's require new investment, and production from Angola and the Congo has been disrupted by war. The Canadian's will have no problem selling their 'quite nice' diamonds, van Eeghen adds."
The above is the only reference in the article to "recovery."
My only caveat about the above includes the question, how trustworthy is a De Beers spokesman when discussing the diamond market? Also, I don't think supply is the problem for the near future. It's demand, and I don't see that improving until Asian and European economies boom once more.
It might interest you to know that Forbes, in general, is optimistic about the world's economic future - shot term bumps in the road not withstanding
Hope this helps.
VP |
