Investors: More Info Here
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Investors: More Info Here |
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Diamonds
Diamonds may be “a girl’s best friend” but they may be an even better friend for investors. Since 2001, diamond prices have increased rapidly. This was due primarily to increased demand associated with greater marketing spending and depleted stocks. The surge in rough prices was also a result of other factors including lower finance costs, a polishing over capacity, a weak US$, active encouragement for consumer spending and definite supply shortages in many diamond categories because of production difficulties. Since mid 2003 diamond prices for rough stones have increased to a greater extent than those for polished stones, creating a price squeeze on diamond cutting and polishing factories. The demand for diamonds is generally measured in relation to the manufacturing capacity and the demand for jewelry going forward. At present, there is a manufacturing over-capacity. In the short to medium term there will be insufficient natural rough diamonds available to keep all the manufacturing facilities operational. The world diamond jewelry demand is estimated to be growing at an annual rate of approximately 5.3% per annum over the forecast period. Over the next five years the outlook for diamond prices remains positive, with prices for both rough and polished, rising at an average annual rate in excess of 5%. Thereafter, the market is expecting a slight short-term correction in rough prices and the current moderate growth of polished prices to continue. This will partly close the gap that has opened up between rough and polished over the past two years. The market expects margins in the polished pipeline to continue to be squeezed. In mineralogy, diamond is an allotrope of carbon, where the carbon atoms are arranged in a variation of the face-centered cubic crystal structure called a diamond lattice. An allotrope is each of two or more different physical forms in which an element can exist. Graphite, charcoal, and diamond are all allotropes of carbon. Most natural diamonds are formed at high-pressure high-temperature conditions existing at depths of 140 to 190 kilometers in the Earth’s mantle. Diamond is renowned as a material with superlative physical qualities; in particular, diamond has the highest hardness and thermal conductivity of any bulk material. Those properties determine the major industrial application of diamond in cutting and polishing tools. Diamond has remarkable optical characteristics. Because of its extremely rigid lattice, it can be contaminated by very few types of impurities, such as boron and nitrogen. Combined with wide transparency, this results in the clear, colorless appearance of most natural diamonds. Small amounts of defects or impurities (about one per million of lattice atoms) color diamond blue (boron), yellow (nitrogen), brown (lattice defects), green (radiation exposure), purple, pink, orange or red. Diamond also has relatively high optical dispersion (ability to disperse light of different colors), which results in its characteristic luster. Excellent optical and mechanical properties, combined with efficient marketing, make diamond the most popular gemstone.
*Past performance, future projections and past mining operation life expectancies are not a guarantee of future results. All rates of return and past results provided herein are for historical comparison purposes only. Investments involve financial risk of loss and may not be suitable for all investors.  About Us Gold Silver Copper Diamonds Lithium Investors Contact Us
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