Chuck:
Agreed. Oil is controlled at various points along the distribution chain. Oil, in contrast to diamonds, is a necessity in today's world -- here in the North it keeps most folks from freezing. Thus it is more akin to controlling the supply of food or water. There is zero life-threatening need for hi-quality natural diamonds.
Admittedly there may be unrelenting industrial demand for diamonds; but natural industrials are neither scarce, necessary, nor expensive.
Bottom line, the supply-demand equation of oil vis a vis diamonds is vastly different.
The gold market, like diamonds unfortunately, may also be an illusion. Nevertheless, no modern-day alchemist has been able to duplicate gold. Furthermore, it has it's mystique as crisis currency.
Certainly De Beers is priced low, or so it seems. For a longer-term holding (I'm not a day trader) I want evidence of some bold new undertaking by De Beers. A venture, related to diamonds perhaps, but totally devoid of third world influence and the natural diamond industry. They have a great distribution system in place, I'll admit that. Now tell me they are developing something like the worlds first undetectable synthetic diamond, and I'm on board.
Do you know anything about the artificial diamond industry? Just a thought that might lead to a better bet.
Ciao, Ted |
