De Beers Says Diamond Prices Not Likely to Rise Soon


May 25, 2006

De Beers Says Diamond Prices Not Likely to Rise Soon

Current conditions in the diamond industry indicate that diamond prices will not rise again soon, though De Beers has not ruled price increases out if retail demand increases, De Beers chairman Nicky Oppenheimer said at a press conference yesterday.

Speculation follows De Beers' move to increase diamond prices by 2% at the beginning of 2006, according to the South African newspaper Business Day. Global retail demand is currently strong, but high interest rates are affecting diamond cutters' ability to pay off debit and make a profit, Oppenheimer said.

Still, Oppenheimer said his outlook for the industry was optimistic. "Retail appears to be satisfactry and, against that, you feel confident about the future," he told reporters.



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