Karma Snack News Stream

The summer of 2010 brought the continued recovery of the diamond market. Like with most investments, if you can hang on during bad times, you will eventually see a good return on your investment. Even with the drop in the diamond market, it is expected good returns will be reaped. The market is recovering around the world and with the prices still low, many investors are buying diamonds for investment purposes. THE UNITED STATES DIAMOND MARKET The United States has increased its diamond imports. The import of polished diamonds has increased 44 %. This brings the imported carat total to 1.04 million. The price for a carat increased to $1294.69, which represents a 19% increase. Investors who have diamonds are holding on to their diamonds expecting the price to continue to rise. Other diamond investors are buying up quality diamonds while the prices are still low. Estate diamond sales are on the rise. THE INDIA DIAMOND MARKET India is competing with China to become the diamond polishing hub. There is a push for the government to not only invest in African diamond mining operations, but also to contribute to humanitarian aid as well. India doesn’t want to depend on China for rough supplies, so it is working on increasing its diamond mining capabilities. The India diamond industry is pushing for tax changes that will benefit the industry. The India government feels the changes are impossible to implement and prevent the diamond industry from paying taxes. A solution is still being worked on. THE CANADA DIAMOND MARKET A new royalty system has been put forth in Canada, which is in response to the new diamond mines that are in the planning stages throughout Canada. It is claimed there are mines that have the rare Type IIa diamonds. The most competitive diamond mining company royalty system is the one in place on Saskatchewan’s first diamond mine. Avi Krawtiz reported the following for Rapaport, “The new royalty regime introduces a 1 percent base royalty on the value of mine production, with an initial five-year holiday; a stepped royalty on profits of up to 10 percent, once the company’s capital investment is fully recovered; and full-cost recognition, including a 100 percent depreciation rate for capital costs and a processing allowance.” THE RUSSIA DIAMOND MARKET Diamond production by the mining company, Alrosa is expected to increase over the next 3 years. Due to the economy, Alrosa debt increased, so they accepted a large loan from a Russian investment company. They are looking into various options to raise capital. A new tax law in Angola would require diamond companies to use half their revenue for operational expenses and the other half to develop the community and pay taxes. When buying diamonds for investment, contact the Gray & Son’s Jewelry. They have been in the jewelry business for over 30 years. Gray & Son’s is based in Miami, Florida but does business throughout the world. They buy and sell diamonds, gold jewelry, and watches. Their jewelry and watch repair facility is among the finest in the world.