Welcome to StockForums.info!   

Advertisments:


Thinking of Diamond Stocks?

Australian markets only: ASX

Thinking of Diamond Stocks?

Postby hanoch76 » Sat Feb 09, 2013 9:12 am

I was told not to buy any Diamond stocks because there is a huge diamond company in U.K where they compete with every diamond company that emerges and they lower their price to the point where the other diamond company that recently emerged goes bankrupt. I understand this is an uneducated statement made but what is a good reply to such statements?
hanoch76
 
Posts: 46
Joined: Mon Oct 29, 2012 9:49 pm

Thinking of Diamond Stocks?

Postby jukka » Sat Feb 09, 2013 9:17 am

I would suggest not to buy them but here are some facts about diamonds:

1. 130 million carats are mined every year.
2. They are the hardest known natural material.
3. The word diamond comes from the ancient Greek word for "invincible" or "untamed".
4. About half of all diamonds come from central and southern Africa.
5. Other major diamond producing companies include Canada, India, Russia, Brazil, and Australia.
6. A blue diamond sold for about $8 million last year.

The following are some of the major diamond mining companies and jewelry retailers:
Harry Winston Diamond Corporation (HWD), Mountain Province Diamonds Inc. (MDM), Anglo American PLC (AAUK), Rio Tinto plc (RTP), BHP Billiton plc (BBL), Signet Group plc (SIG), Tiffany & Co. (TIF), Blue Nile Inc. (NILE) etc.

Although your friend is NOT very true but it is also a fact that almost everywhere in Diamond industry they are real cheap growth stocks and are not on this list of beta and gamma companies. Therefore, you can follow his advice because this way or the other Diamond stocks are not in demand for the time being.
jukka
 
Posts: 42
Joined: Wed Oct 03, 2012 5:09 am


Return to Australian Stock Picks

 


  • Related topics
    Replies
    Views
    Last post
cron