diamond prices

extract from latest Harry Winston (Canadian diamond miner)

"As we progressed through the third quarter, overall sales strengthened on a consistent basis. There are now some signs that the worst of the global economic downturn is over, although consumer demand for high-end luxury products remains uneven geographically," Harry Winston chairman and CEO Robert Gannicott said on a conference call with analysts.

On the mining side of the business, Gannicott said rough diamond prices have been rising steadily since the spring and are now only about 13 per cent off their highs of last year.

"Although we would expect jewelry sales to grow only modestly through 2010, mine supply will remain constrained as mines pass their production peaks and no new major sources of supply appear to replace them," he said.

"This implies continuing price rises in the near term, increasing in velocity as the U.S. economy recovers."

Diavik, of which Harry Winston owns 40 per cent, is expected to produce 7.8 million carats of diamonds next year.