Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
“As the fifth-biggest consumer of diamonds, a stake in a diamond mine would be interesting,” the CEO of Swatch Group, Nick Hayek told the Finanz und Wirtschaft newspaper on Saturday.
The world’s largest watchmaker, which apart from cheap and cheerful Swatches, also owns luxury brands Breguet, Blancpain, Glashütte (pictured), Omega and Tiffany & Co, said demand for watches studded with diamonds has increased explosively and the desired quality are only available in small quantities.
According to IDEX research global polished diamond prices rose sharply during the second half of June, and are showing no signs of a pull-back.
IDEX Online Research said at the beginning of July as long as rough diamond prices continue to rise, and as long as consumer demand remains strong, polished diamond prices will continue to increase. Earlier this year, the researcher said that the price surge might moderate later in the year but that there is no sign of that happening yet.
Hayek also told the German paper that the company will struggle to meet its 2011 sales guidance of $8.6 billion if the franc remains at high levels.According to Bloomberg the Swiss central bank said on Wednesday policy makers are “very concerned” about recent currency developments after the franc appreciated to a record against the euro.
Unlike commonly believed the name Swatch is not a conflation of Swiss and watch but a contraction of “second watch” a term coined by Nicolas Hayek because when first introduced in 1985 Swatches were marketed as casual, relatively cheap and almost disposable completely unlike traditional Swiss timepieces.
Image is of the Lady Serenade Karree by Glashütte Original.
2 Comments
Wilieengelbrecht
Let me know when you are ready to talk i have a diamond mine and investors will be great.Willem Engelbrecht 0826860348
Jamesglover
We have several diamond mining properties to develop with an investor. The site is West Africa. if interested contact me.
Contact: Jay Glover, Project Director
Telephone: 713-842-3308
email: [email protected]