We Predicted it Would Happen; Now it's a Fact - Mining Conglomerate Sells Due to Lack of Supply
Earlier this year, Rio Tinto, the mining company that owns the
Argyle Mine, also said it was looking into divesting its diamond
assets. The Argyle mine supplies 90% of the world's Pink diamonds and the vast majority of Champagne diamonds and when it closes, with it will go the world's largest supply of Natural Fancy Colored Diamonds.
Rio Tinto acknowledged that the market outlook for "the stones" is "very positive" however expansion in diamonds is difficult, given the lack of any major deposit discoveries in recent decades (Telegraph, 2012).
Harry Winston Secures Supplies - Bets on Rising Diamond Prices to Come
Harry Winston, luxury diamond retailer just bought the Canadian EKATI diamond operation from BHP Billiton and is betting on rising diamond prices to extend Canada's oldest diamond mine's life. According to Reuters, Winston is one of many jewelers who have gone into mining to secure access to the world's depleting diamond supplies.
Reuters reports the EKATI mine has a remaining seven years of production left. This is a clear cue to investors that rising diamond prices are inevitable. This global diamond shortage will have a detrimental impact on the already limited supplies of Natural Fancy Colored Diamonds, which account for 0.01% of the millions of diamonds mined every year. In the very near future, Natural Fancy Colored Diamonds may become so rare that to acquire one will be like winning the lottery.
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