GREY:SWYDF - Post by User
Post by
ckruelon Jan 19, 2010 3:15pm
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Post# 16696320
bmo 2010 diamond forcast
bmo 2010 diamond forcastRough Diamonds
Diamond market shows marked recovery.
Due to the semi-annual reporting schedule of the majority of the rough diamond producers, price clarity through the fourth quarter can be difficult to ascertain. The sparse data that is available seems to indicate that the upward trend in rough diamond prices continues to be strong, while polished diamond prices are still struggling to keep up. BMO Research has been forecasting a modest correction in rough diamond prices through the next six months, but stronger-than-expected holiday season retail sales might in fact prompt diamantaires to gamble on a stronger U.S. recovery, precipitating another wave of rough diamond buying as we enter 2010.
The longer-term supply/demand picture for the rough diamond market remains one of constrained supplies while demand grows in line with a recovering global economy and expanding personal wealth in Asia. BMO Research forecasts a 20% shortfall in supply by 2020 resulting in increasing rough diamond prices.
BMO Research has not made