Stable DEMAND FOR DIAMONDS IN 2005
The world#39;s largest supplier of diamonds, the company De Beers, said the other day that due to the increasing demand for diamonds in the United States, the company expects strong demand for its products this year. The company De Beers, majority-owned by mining giant Anglo American, after the presentation in February, its annual report, said that 2005 will be more favorable for diamond otorasli than the previous two. In 2004, sales of rough diamonds increased by 3% to $ 5.7 billion. De Beers, controlling about half of the world#39;s supply of diamonds, do not state clearly whether they will force up prices this year.
It has been said that they are considering raising prices, but do not know how much. In 2004, De Beers raised rough diamond prices three times, only about 14%, and once this year by 3%. Analysts say that this was done to compensate for the falling value of the dollar relative to other currencies.
The company said that of the seven mines in South Africa, only two are profitable, and warned of possible reductions in staff. CEO, Gary Ralph, said the company hopes to begin delights in Angola this year, to continue research in Russia, where they also hope to start production. He also said that there was a conflict between the company#39;s business strategy proposed by De Beers and the South African law, which requires that the processing of some of the diamonds mined in the country took place, and imposes export duty as a deterrent.
