Cheaper Diamond Prices?
Russia's largest diamond producer, Alrosa will stop all rough diamond sales to the worlds largest diamond producer, DeBeers, by 2009. At the moment, Alrosa sells almost all of its production to DeBeers. The European Commission has effectivley stopped the monopoly as it believes it is an unfair advantage.
Because DeBeers controls most of the worlds supply of diamonds, it can keep the prices artificially high. Alrosa, with 20% of the worlds supply of diamonds, will have to find new buyers which means increased competition.
With more diamond auctions being held to find new buyers and so increased competition at production level, this will ultimately lead to a fall in the price of diamonds.
However, with prices expected to fall only 5% over the next few years, a girl's best friend is still a good investment ;-)
posted by The Diamond Chicks at 9:45 PM
0 Comments:
Post a Comment
<< Home