De Beers’s production cut

De Beers, the world’s largest diamond producer, reduced first-quarter output by 91 percent, as the world economic slump cut demand for luxury goods.

According to Anglo American Plc, owns 45 percent of De Beers, production reduced to 1.08 million carats from 11.8 million carats a year earlier. Anglo also said platinum output fell 5.8 percent to 404,000 ounces and they are idling platinum operations and reduced coal output in response to lower anticipated demand.

About half of the world’s diamonds are retailed in the U.S., where recession has fold up consumer spending on goods from cars to jewelry. An index published by researcher Polished Prices stated that diamond prices remain 30 to 40 percent lower than a year ago and fell about 16 percent in the past six months.

According to an analyst at Nedcor Securities in Johannesburg, Johann Pretorius, who advises buying Anglo shares, De Beers’s production should be considerably higher for the rest of the year.

debeers_905ct-round-brilliant-ring
This De Beers platinum ring, the rock, is D-color, the most desireable grade on the diamond color scale. This De Beers diamond engagement ring is a flawless stone and round cut. This diamond ring weighs just a little more than 9 carats. Its price is set at $1.83 million.

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