BEN HIRSCHLER, London | Friday 7.15pm
DIAMOND giant De Beers is expected to report record 1999 sales of uncut stones on Monday, with business through its London-based Central Selling Organisation topping $5-billion for the first time.
Analysts polled by Reuters forecast sales of $5,0-billion to $5,3-billion compared with actual 1998 sales of $3,34-billion, an 11-year-low for the CSO, which controls 60% to 70% of the trade in rough, or uncut, diamonds.
This year’s bumper sales reflect continued strong demand from the United States, a turnaround in Asia and rebuilding of stocks by cutters who are hoping for a millennium boom in diamond jewellery demand.
”It’s been a stonking good year,” said Jack Jones, mining analyst at CIBC World Markets in London. ”Last year De Beers was restricting diamonds to the market and this year there has been a remarkably strong flow helped by a strong US retail market and recovery in Asia.”
Shares in De Beers were last trading up 4% on the day in Johannesburg at R186 amid optimism about the sales figures.
Analysts are divided as to whether sales will continue to grow in 2000 after the expected 54 percent leap this year. Despite encouraging early indications for Christmas demand in the key US market – which accounts for nearly half the world’s sales of polished stones – most expect sales to dip back below $5 billion next year. — Reuters