Peregrine Diamonds Ltd. PGDIF

Synthetics

[peachbanana]

Nobody else seems to have mentioned this, so I thought I'd jump in.




Turning Chidliak into a diamond mine is going to be a race against the clock. At some point in the next decade or two, the demand for diamonds is going to exceed the supply by so much that consumers will be more willing to purchase synthetic substitutes -- and DeBeers would be foolish not to jump in with their own synthetics to claim a share of that market. Once they go over, 


(As a side note, I think the PGE spin-off might be how Friedland and friends get to explore other resources.)


https://elibrary.acbfpact.org/acbf/collect/acbf/index/assoc/HASH015e.dir/synthetic.pdf

https://www.bloomberg.com/news/articles/2015-03-05/diamond-miners-meet-in-private-to-discuss-rise-of-fake-gems

[peachbanana]

[Sorry; randomly pushed send too soon.] Basically, the end of that message was to say, once DeBeers crosses over, nobody will want a diamond mine. It's nice that they've formed a conglomerate (see Bloomberg article) to battle synthetic diamonds, but how long do you reckon it'll last... https://www.bloomberg.com/news/articles/2015-03-05/diamond-miners-meet-in-private-to-discuss-rise

[mill44]

It is all about the price. There is a threshold for everything. When you cross that, people are going to find substitutes. With diamonds, it is easier when it comes to industrial use. For personal use, they are more than objects, they are symbols. You can save a lot of money on the wedding just by showing up with a knock off to propose. So as long as the price is not prohibitive, diamonds will be

[Kodiboy]

Mill, with you its always the price :)

[mill44]

It's basic economics. If rice is scarce the price goes up. If people think it is too much, they start buying wheat instead. Wheat demand goes up, so does the price. Rice demand goes down, so does the price. Until a balance is achieved. Then you start over.