As the $US declines, South Africa with large Gold and Diamond holdings hasn't got that luxury and its currency value is increasing strongly.
An Australian company CRD was complaining that the
the Rand increased by 28% in the first half while sales revenue declined 22%. (Rand 8.01=$US1)
A year ago, the Rand was R11.15 =$US1. It is worse now and the latest is R6.60=$US1
While there is a good demand for diamonds, the revaluation of the Rand is much faster than the increase in diamond prices and this ought to squeeze profits and could close down mines.
Gold is caught in the same South African trap. If the revaluation becomes more severe due a lack of trust in the $US then the closure of SA mines could increase gold and diamond prices.
Suggest that the Rand be watched; diamond and gold investments in South Africa may not be necessarily be that good.
Gerry
NDC
namakwa diamond company nl
