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Gold/Mining/Energy : Trump's 12 Diamond Picks, Discussions Limited -- Ignore unavailable to you. Want to Upgrade?

To: bob who wrote (1187)	8/23/1998 7:28:00 PM
From: Gabriela Neri	Read Replies (1) \| Respond to of 2251

Ask Heir Shindler.

To: bob who wrote (1187)	8/23/1998 7:58:00 PM
From: George J. Tromp	Read Replies (1) \| Respond to of 2251

I separate Gold immediately from diamonds in comparative terms., first because all ounces of gold in any shape or form when melted will still be one ounce of gold. In absolute terms one ounce of gold is an ounce of gold. There is no distinction between quality and size. Diamonds values extrapolate in price because of size and rarity. People have assumed because the Asian currency problems., that Diamonds would weaken in price. The CSO umbrella will prevent collapse of that market. Recently Alrosi signed on again., 1Bil producer to market thru the CSO., and are looking to sign a 3 year agreement. Are things so bad in Japan., not for the rich and famous., note Tiffanys Fine Jewelers increase in sales up 30% for their Japanese franchise and their intent on developing 4 new stores out West. There has been some dumping of diamonds by Koreans., of late., but I think this has pretty much been factored into the share prices. I think the recent moves by DeBeers is evidence that they feel diamond prices and markets will be very viable over the course of the next several years., many untapped markets other than Japan and Indonesia., recent announcements of Diamontaries in China and Israel speak positively for the industry in the future. DeBeers marketing campaign is budgeted as well to increase markets not placate existing markets. Of particular importance will be the upcoming agreements with BHP for part of Ekati production., and Abers willingness to retain or negotiations on marketing their stones as well., whether inside or outside the CSO. Most future producers., Southernera., Diamet., Aber., Rex., Mountain Province values will be determined on cash flows and project economics. As far as Russia., when has there never been a crisis unfolding.? The large gem stone niche still encompasses a large fraction of value of total carats produced., but as well amounts to around 10% of all diamonds produced globaly. The top tier gem quality producers., are Nambia., Angola., Sierra Leone. Angola will be suffering the effects of export embargos to the US courtesy of Bill Clinton. The diamond leakage evidenced around 4mil carats by the Russians will in all liklihood dry up as reported by Rhombouts. If one took a microscopic viewpoint at new producers such as Diamet., Aber., which would account for 10 or 12% production by 2005., say 12Mil carats., probably about 1.5% of those stones will be large high gem quality over .75 carats. which BTW is the exact area that DeBeers is targeting in their marketing campaigns. AS well a common sense point., is when is the last time you have seen them advertise., the fine points of large gem quality diamonds.? Simply put., they dont have to., the demand has always been significant. Most of DeBeers production and marketing involves stones in the 1.0 carat and below category. They routinely travel to bourses and purchase large stones from independants., so my theory is to own companies that fit the niche enviroment of the strongest portion of the market. Bob., I could talk endlessly for hours on the topic., but time and space constraints make this impossible. Growth stocks are alive an well in this industry., if one looks under all the rocks. Sincerely George J. Tromp

To: bob who wrote (1187)	8/23/1998 8:31:00 PM
From: kidl	Read Replies (1) \| Respond to of 2251

Bob, I was tempted to answer earlier but hesitated. Now that two replies have been posted, I would like to add my thoughts (briefly): Reading between the lines of your post, I assume you are referring to a world wide depression. If this becomes reality, which I doubt, gold, real estate, art and last but not least diamonds will be the only currency of value; forget stocks and cash. Assuming you, just like me, are not old enough to have experienced a real depression, read up on history or better yet, talk to your parents / grand parents. I have and I know how cash and stocks turned into useless paper over night and how those with tangible assets came out of it smelling like a rose. FWIW kidl