London-listed diamond junior Botswana Diamonds (LON:BOD) forecasts a cheerful future for the diamond market, despite it sliding into the red in the six months to the end of December with a pre-tax loss of over US$327,000.
In its annual ranking of countries in terms of political risks for mining investment, the mineral industry advisory firm Behre Dolbear, has ranked Australia, Canada, Chile, Brazil and Mexico as the top five nations in which to locate mining projects.
Chinese investors are turning their focus to emerging economies as they look to expand their demand for commodities and switching away from Australia and Canada, which are getting too expensive.
India is hoping to bury the hatchet with its historical rival Pakistan, at least enough for both sides to benefit from a massive iron ore deposit in Afghanistan.
“Sentiment towards gold is as low as it has been for many years, possibly since the rally started. ... For virtually the first time this cycle, buying gold is a contrarian trade.”
The 30% tax on iron ore and coal producers passed by the Australian government may raise the prices of those commodities but will also shrink margins of steelmakers, analysts say.
A sharp decline in India’s polished diamond trade in February after an import tax started to be collected. India exported $1.44 billion worth of polished diamonds in February, a 53.7 percent drop compared to February 2011.