- Coloured diamonds are indeed rare; so much so that for every 10,000 carats that are mined, a mere one carat may possess fancy colour.
- Gareth Penny, ex Managing Director of De Beers was quoted in 2010 as saying that “if we continue to diamond mine at this rate we shall run out within 20 years”.
- Most mines are past peak performance; mining firms are actually cutting back in production to extend the life time of their mines.
- Over the past 25 years more than 12,000 kimberlite deposits have been discovered throughout the world and less than 1% has contained enough diamonds to become economically viable. (Source Petra diamonds)
- Out of 170 diamond mining companies there are only 25 in production. (Source Bloomberg)
- Diamonds have “the best fundamentals” said Evy Hambro, who manages the $6.6 billion World Mining Fund in London for Merrill Lynch. “The gap between supply and demand is much greater compared to other commodities’. (Source Bloomberg)
- ICBC-S (Industrial & Comercial Bank of China). Chairman Jiang Jianqing said "Diamonds are a special investment product and have a distinct function other investment products cannot match".
- At the Ellendale mine in Australia, which is the world’s largest producer of yellow diamonds, the mine on average only produces in the region of 20,700 carats of fancy yellows a year and the number of intense and vivid yellows are considerably less.(Source Telegraph)
- Raising capital and to fund new deposits to build new mines will likely be challenging...
- Due to their rarity and beauty, coloured diamonds have been in demand for thousands of years.
- Demand from India and China is expected to rise 20% each year for the next 5 years, catching up with America as a major importer of polished stones. (Source De Beers)
- Tiffany & Co in 2010 agreed a 25% price increase for yellow stones from their supplier in order to incorporate yellow diamonds in their own jewellery range. (Source Tiffany & Co)
- Institutions and sovereign nations are purchasing diamonds as a store of wealth and a hedge against economic uncertainty and market volatility.
- “Diamonds could very well outperform base metals in the coming years” said Andrew Ferguson, who manages $313 million at New City Investment Managers in London. “Given the huge increases in demand and the imbalances in supply, I expect good returns.” (Source Bloomberg)
- “Investors are snapping up diamonds as hard assets in order to hedge their portfolios. Many investment consultants are recommending diamonds as “must have” assets for a secure investment portfolio.” (Source Diamond Investment Forecast, Jan. 2010)
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