GREY:VAALF - Post by User
Post by
mukh6on Oct 01, 2010 11:40am
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Post# 17517709
Sparkling Returns
Sparkling Returns- Written by:
- Martin Li- Investors Chronicle
The diamond price has been volatile since it peaked in mid-2008 but -true to the gem's reputation for being eternal - has recovered stronglyto near previous highs. With Asian demand booming, on top of the firstsigns of recovery from the US and expectations of a busy holiday buyingseason, the sector looks set to sparkle more brightly than ever.
The fastest-growing economies in the world at present are China andIndia - both of which are expanding at double-digit rates and haveimportant diamond industries. India is already a major cutter andpolisher of diamonds and China is developing a manufacturing centre,assisted by government fiscal incentives. Chinese diamond imports surged92 per cent to a record $577m (£365m) in the first half of 2010,according to the Shanghai Diamond Exchange. A spokesperson for theexchange says that Chinese jewellery demand is rising rapidly, buoyed bystable economic growth and increasing domestic consumption. Indeed,Adonis Pouroulis, chairman of Petra Diamonds, says that growing Chineseand Indian demand is "changing the diamond industry forever".