Peter,
I saw some discussion of this in the on-line version of the London Financial Times. The article also reported on lower fur sales resulting from the Asain financial problems. I think the report stated 17% of former DeBeers site sales went to Asian buyers. Virtually no turnout from them at the last event. The same with Russian fur sales but I think the figure was formerly 21% Asian buyers.
My guess is the 15% annual increase in prices for better quality stones, as once projected by DeBeers, will not happen. One interesting prospect, however, is that with Korea, Japan and other countries now running the money presses virtually 24 hours per day, Western countries my have to follow that example to help sustain the world's financial systems. That will lead us into that part of the economic cycle which place greater emphasis upon holding tangible assets (gold, diamonds, real estate, collectables, etc.) as opposed to
financial assets which can't hold their value against a rising flood of paper money.
Just my personal speculation, but we could see diamond values going down in the short run only to appreciate significantly in the long term (compared to paper money, that is).
This is all so very interesting to watch, and, as an investor, it adds real drama to events unfolding so very far away.
...and a very merry Christmas and a happy Hanukkah to all...
ValuePro |
