re: new daimond find and so on
If the new daimond new is relievable and their strategy to explore and can transfer to production and sale. The company should reasonable further.
Global Diamond Demand
In 1983, worldwide diamond Jewelry sales were $20 billion, today that figure is over $60 billion. Demand for diamonds globally continues to outpace the available supply. In the US, retail sales of diamond jewelry grew by 8.2 % in 2004 to $31.5 billion. That is an increase of $2.4 billion over 2003 sales, a sum equal to roughly 50 % of the countries annual engagement ring sales. This is the ninth consecutive year of growth in retail diamond sales. Fueled by strong sales in the U.S., which accounts for 50 % of the world market, total world diamond sales grew 8.5 % in 2004.
In China, where sales were $1.235 billion in 2003, experts predict the market will grow by at least 15-20 % per year. China should overtake Japan in the next few years and it is estimated that Shanghai will become a sizable trading center in the world's diamond processing and trading field. By then, in Shanghai alone sales revenue of diamonds and jewelry will come to US $3 billion- $5 billion, and the number of people engaged in the industry will rise to 100,000.
Because of the growing demand for diamonds and the limited supply, experts and retailers claim that wholesale prices are already up by a third since 2003 and De Beers raised prices three times at their diamond tenders in 2005.
According to James Picton, an analyst with WH Ireland, rough diamond demand is expected to grow 50 % by the year 2012. Prices will rise by one-third, he predicted, or the market would simply face a shortage of $3 billion, equivalent to the combined annual production of Russia and Botswana. (22) Retail diamond demand is expected to grow by at least 5 % a year over the next decade as new buyers from Asia purchase diamonds. That means that a mine equivalent to $500 million of diamond production must open every year for the next ten years to meet the increasing demand from consumers. Because it takes eight to ten years to get a mine into full production, a significant increase in exploration must occur to meet the increasing demand for diamonds.
