RE: Re-post..From Stockbullz.com"I think I have picked up what will be a huge bull market: Diamonds!"
Hi
Over 50% of all diamonds sold are sold in the USA and most of those 50% are sold in the period between Thanksgiving and Christmas. Checked the US economy lately? Diamond sales rise and fall in balance with the worlds economy, especially the US's. Demand is manufactured (Diamonds are Forever), prices are artifically set (if one category, say -1.5ct are suffering slow sales they are advertised by the cartel), supply is regulated (contary to popular perception diamonds are not that scarce and can be manufactured virtually indistigushable from natures). And the advertising, regulation of supply is mostly done by De beers.
"I am no Diamond expert but I did a little research and it turns out that Diamond Mining is the most profitable of any type of mining. Diamond mines, when found, are more valuable than even uranium mines. And when compared to uranium, diamonds are a larger industry."
I'm no diamond expert either but I have done hundreds of hours of research on diamonds, how there found, where there found and why. And you know what? diamond mining isn't any more profitable than any other kind of mining. Mining is based on What/how much in the ground, how much is it gonna cost me to get it out and what can I sell it for. Mining is all about economics and some diamond mines are worth about $20 bucks a tonne and some $200 a tonne or a $1000 a tonne, no different than a gold mine or zinc / lead deposit. As for a diamond mine being more valuable than say a uranium mine that is nonsense, why would it be? Each would have to be taken on a case by case basis. Some uranium mines such as Camecos in Sask would be worth many many billions. Tahera is worth $500 million.
"In Canada, there are only about 40 listed diamond companies. This is not a huge number like uranium or gold but it still gives an investor a decent selection to choose."
There are +6000 known kimberlites in the world. Maybe 30-40 have ever been proven economical to mine. The chances to find a mine are very very small. Sure the rewards are big but a junior finding a mine is usually well rewarded but its easier to find a Pebble or Selwyn Pass or Red Dog or even easier to find the smaller deposits and the rewards are just as great finding one of them. As for a decent selection from which to choose I'll let him go ahead, I'll wait for indicator chemistry from each individual play and see if a company is worth investing in.
"Yes, I am quite sure that 2 or 3 or those companies will succeed but most will fail and eventually wither away."
I doubt even that many will succeed, odds are against it. And it'll take years and years of effort, usually much longer that other types of exploration.
"Diamonds are very hard to find but when they are found, it is a jackpot. Ekati and Diavik, the 2 largest mines in Canada right now have a value of over $11 Billion!"
So what? I can name many many deposits and mines that have more in situ value than that. And theres plenty of deposits and mines that have higher indicated in situ values as well. $5 billion is 7.6 million ozs at todays prices. So why are diamond mines more valuable than other mines? They aren't, they just contain something different thats all, and their much harder to find, much much harder.
"That means that upon a large discovery, there is certainly a lot of room to profit."
This can be said for almost any junior, I know a lot of juniors running around supporting miniscule market caps. Upon a discovery BOOM off goes their share price.
This post is just pure stupidity by somebody who knows very little about diamonds or investing. Its a pure fluff piece. And it wasn't worth posting and certainly not worth reposting.
ttfn
nopoo