De Beers upbeat on gem sales prospects

LONDON – South Africa’s De Beers said last week that diamond sales were set to sparkle this year as consumers rediscover a taste for luxury after a soft patch caused by war in Iraq and the SARS virus.

The upbeat outlook came as the group reported a 2,2 per cent increase in sales of rough diamonds in the six months to June from the same period of the previous year to US$2,98 billion (N$17,88 billion). Global diamond jewellery sales grew by between seven and eight per cent in the six months to June when valued in dollars, De Beers said in a statement.”Consumer markets report good growth in retail sales of diamond jewellery during the first half of 2004 compared with the same period last year, which was affected by war in the Middle East and the SARS virus.”With positive macro-economic indicators and increased levels of confidence, the trade is optimistic that the strong consumer demand will continue through the second half and expectations are that retail sales for the year as a whole will be comfortably ahead of 2003,” the group said.Stronger demand allowed De Beers to raise rough diamond prices by an average of 14 per cent in the first half of 2004 from the same period of the previous year.Interim pre-tax profits rose by a third to US$513 million (N$3 billion)dollars, while net earnings increased by 26 per cent to US$341 million (N$2 billion).De Beers, founded in 1888, produces more than 40 per cent of the world’s diamonds in terms of value from mines in South Africa, Namibia, Botswana and Tanzania.The Diamond Trading Company, the retail arm, sells around two thirds of the world’s annual supply of rough diamonds.Anglo American now owns a 45 per cent stake in De Beers, the Botswana mining company Debswana about 10 per cent and the Oppenheimer family the remainder.-Nampa-AFPGlobal diamond jewellery sales grew by between seven and eight per cent in the six months to June when valued in dollars, De Beers said in a statement.”Consumer markets report good growth in retail sales of diamond jewellery during the first half of 2004 compared with the same period last year, which was affected by war in the Middle East and the SARS virus.”With positive macro-economic indicators and increased levels of confidence, the trade is optimistic that the strong consumer demand will continue through the second half and expectations are that retail sales for the year as a whole will be comfortably ahead of 2003,” the group said.Stronger demand allowed De Beers to raise rough diamond prices by an average of 14 per cent in the first half of 2004 from the same period of the previous year.Interim pre-tax profits rose by a third to US$513 million (N$3 billion)dollars, while net earnings increased by 26 per cent to US$341 million (N$2 billion).De Beers, founded in 1888, produces more than 40 per cent of the world’s diamonds in terms of value from mines in South Africa, Namibia, Botswana and Tanzania.The Diamond Trading Company, the retail arm, sells around two thirds of the world’s annual supply of rough diamonds.Anglo American now owns a 45 per cent stake in De Beers, the Botswana mining company Debswana about 10 per cent and the Oppenheimer family the remainder.-Nampa-AFP