GREY:SWYDF - Post by User
Post by
landlubberon Dec 11, 2010 3:52pm
553 Views
Post# 17834060
MPV, SWY leading the pack
MPV, SWY leading the pack
Canada's chance
Christmas could come early this year for Canada's diamond miners.
Inthe world's largest diamond market -- the United States -- upscaleretailers such as Tiffany & Co. and Harry Winston are seeing highersales as demand for $50,000 engagement rings rebounds.
Diamondsare also the new gold for an emerging upper middle class in China,India and Russia. And they offer a safe-haven instead of volatilecurrencies.
While Russia still has $1 billion worth of diamondsstockpiled from the global financial crisis, Moscow has said it doesnot have plans to start selling them into the open market.
Thatall adds up to good news for Canadian miners. In 2009, Canada was theworld's No. 3 diamond producer, mining $1.47 billion worth of roughstones.
RBC Capital Markets analyst Des Kilalea said at least twonew mines would likely be launched in Canada within the next fiveyears.
"There's a multitude of Canadian companies that arelooking," he said, listing explorers such as Peregrine Diamond inVancouver and Shore Gold in Saskatoon. "So it's likely to be a growingspace for Canadian investors."
He said Mountain ProvinceDiamonds in Toronto andStornoway Diamond of Vancouver are leading thepack, adding that bringing a new diamond mine into service takes morethan a decade.
China is seen overtaking the United States in thenext decade as the world's top diamond buyer, thanks largely to aswelling middle class.
https://www.thestarphoenix.com/Canada+chance/3961183/story.html#ixzz17q3I5LHJ