The big risk for rough diamond sales during the second half of 2003 is that the US recovery could abort, De Beers Managing Director Gary Ralfe said on Monday.
De Beers, 45% held by Anglo American, is set to have its seventh sight of 2003 in August and there will be three smaller sights before the end of the year, Ralfe said.
“Of course, things can go wrong due to a fall in US consumer confidence for economic or political reasons,” he said.
“Lower US consumer confidence will impact on sentiment and expectations for
Christmas 2003 sales. The Christmas period is when 40% of diamond jewellery
sales take place,” he said.
However, despite the risk posed by the US economy, Ralfe said, De Beers remains bullish for its full financial year.
“Right now rough diamond sales remain strong,” he said. – I-Net Bridge