Rough diamond prices ‘will rise’
Monday, September 20th, 2010
The head of one diamond supplier has predicted prices will rise next year if a double-dip recession does not take place.
The price of rough diamonds is likely to increase if fears regarding a double-dip recession are abated, one leading industry figure has claimed.
In an interview with Bloomberg, Johan Dippenaar, chief executive officer of supplier Petra Diamonds said there is the potential for the market to have a "very firm" end to 2010.
"If the nervousness of a double-dip recession dissipates, then we expect to see some increase in prices at the beginning of next year," he remarked.
The company today (September 20th) posted its preliminary financial results for the year to June 30th, recording a record profit after tax of $70.2 million (£44.9 million).
It revealed group revenue for the 12-month period climbed from $69.3 million to $163.7 million, while gross production of diamonds was up six per cent to 1.16 million carats.
Mr Dippenaar praised the firm's performance over the year, adding the outlook for the diamond market is positive.
