Gem toasts diamond prices recovery

22nd Jan 2010 07:46

Diamond prices continued their ‘impressive’ recovery in the fourth quarter, though they still lag behind 2008 levels, Gem Diamonds boss Clifford Elphick said.The company said the important Thanksgiving Day to Christmas trading period in the US, still the biggest market for diamond jewellery, was reportedly a good one for diamond jewellery retail sales while there was also anecdotal evidence of strong demand from India and China.The company’s 70% owned subsidiary Letšeng Diamonds sold 26,294 carats of rough diamonds and achieved an average price of $1,894 per carat in the fourth quarter, versus the $1,710 achieved in the preceding quarter and the $1,308 seen in the first half of the year. Over the full year, Letšeng achieved an average price of $1,534 per carat.The company’s Lesotho mine recovered 19,957 carats of rough diamonds in the fourth quarter, down from 23,756 carats in the preceding quarter, taking the full year total to 90,878 carats.‘Prices for rough diamonds from the Letšeng Mine, which continues to produce some of the world's rarest large, top quality, top colour diamonds, have risen from an average of $1,017 per carat in Q1 2009 of to $2,070 per carat in December 2009,’ company chief executive Clifford Elphick said.‘The ‘medium to long term supply/demand equation for diamonds remains positive., especially at the top end of the market where Gem Diamonds is focused,’ Elphick added.