James, "To me Diamonds spell Death,
It's been a going racket for 50 years
but the remaining days are numbered."
I think you are a number of decades short on your estimate. I certainly don't disagree it's an artificial market, a fraud of shorts. Diamonds are plentiful. It's only that the supply reaching the market is limited. The only reason for being in or near the business, is to bet that supply will remain sufficiently restricted to maintain prices. It probably will, because new demand is always being created and old sources squashed. Look at the new Chinese market for increasing sales, and the so-called "blood diamonds" being removed from the market as and example of limiting supply. You can also look at De Beers new add campaign, the "three diamond" pendant T.V. adds, tennis bracelets and the like for increasing demand.
And who cares about industrial grade? So much is produced by the Argyle mine in Australia, no one else can compete. That end of the market is already dead, and has been for many, many years.
"I'm just passing on
a friendly word of caution."
So, why would one so very knowledgeable as you, a person who cares very little about investing in the diamond business, go out of his way to such a little used forum as this to grace us with your opinions? |
