Brokerage firm Yorkton Securities has released its second review of the world’s diamond industry. (The first was published in 1993 in the midst of the Northwest Territories diamond rush.)
The review addresses what the company calls “widely held misconceptions about the diamond industry.”
One such misconception is that the world diamond market is in danger of imminent collapse. That view is based on the theory that new Western mine production, combined with Russian selling, can no longer be absorbed by the Central Selling Organization and other purchasers.
Yorkton makes the case that the Russian threat is a transitory one, that diamond production is on the decline, that stockpiles are nearly depleted, and that new diamond mining operations are a long way off.
Excluding Russian sales from the stockpile, global demand for gem diamonds currently exceeds newly mined supply, Yorkton says.
The brokerage house points out that markets are growing in Asia and that those in the U.S. remain strong. As to whether there will be a market in the future to buy all the newly mined diamonds, Yorkton’s prediction is affirmative.
It goes on to predict that after a lacklustre period of another 12 to 24 months, the proverbial light will be visible at the end of the tunnel.
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