Diamond sales at Debswana fall 49.2% as market downturn continues
In the first half of the year, Debswana sold diamonds worth $1.29 billion compared to $2.54 billion registered in the same period last year.
RBC Capital Markets, the corporate and investment banking arm of Royal Bank of Canada, has published a research report that concludes that despite the worsening global economic climate, the fundamentals for diamonds remain positive. Des Kilalea, Analyst, Global Mining Research at RBC Capital Markets commented: “While the world economy lumbers through one of its worst periods in modern history, with central banks reducing interest rates to stave off recession, diamond prices remain surprisingly firm. While the possibility of recession in the US might put the upward move under threat, the long-term prognosis is good, with supply of rough gems likely to fall short of forecast demand pushing prices well above inflation rates. The major beneficiaries will be producers of better quality and large gems. Here prices are likely to rise at well above inflation rates simply because the stones are in very short supply. (more…)
