GREY:SWYDF - Post by User
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Select_Investoron Jan 18, 2013 1:41am
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Post# 20854809
More good news: Diamond ... Best good friends in 2
More good news: Diamond ... Best good friends in 2 This article is a must to read: https://stks.co/cIUP
Some extract from this article:
Diamond ETF: An Investor's Best Friend in 2013?
For those who are looking to take advantage of the interesting situation developing in the diamond and gemstone market in 2013:
- GEMS has also seen even greater levels of outperformance against ETFs that mine for precious metals like gold or silver, suggesting that trends could be lining up for GEMS and the diamond industry as we get further into 2013
- This is because of some bullishness in the overall diamond space and a growing imbalance in the supply demand picture
- This has been further compounded by rising demand in enormous emerging markets, specifically China and India, which are just now starting to develop an appetite for participation in the diamond market both from a jewelry and an investment perspective.
- After all, some estimates suggest that China and India account for just over 12% of global diamond demand now, but that they could account for nearly 50% of demand by 2025. Clearly this could be a huge new source of fresh demand even if we see flat growth in the rest of the world.
- Global demand is increasing 5.9% annually through 2020, but supply is only moving higher by about 2.7% a year over the same time period. Add in the extreme difficulty in finding new supplies—some believe that ‘peak diamond’ has been reached already-- and the lack of new mines coming online, and investors could see a continued bullish trend in the space this year.
- The firm (Harry Winston (HWD)—which will soon be called Dominion Diamonds—) has already stated that it is considering diamond mining acquisitions, so this move could give them some added capital to explore this avenue. This could be another positive move for the industry as well, as it could signal a new M&A trend that may put a modest premium on some of the smaller players in the space, especially if it appears as though some acquisitions are imminent
2013: a very good year ...