Commodity Online
According to a RAPAPORT news article, De Beers remains optimistic about the future prospects of the diamond industry during 2009, and is expecting the Christmas season to be "in line with if not better than last year". Speaking in Israel at the second of the company's series of town hall meetings with the industry, Gareth Penny, De Beers managing director, observed that the diamond sector may be on its way out of the downturn, but with "great caution".

He reasoned that consumer confidence is rising, polished prices are stable, demand for De Beers rough has improved in the past few months and the diamond mines have resumed production. "We have returned to more normal levels where rough and polished [are] better aligned in the market", Penny told the audience of concerned diamantaires.

As a result, he added, the company is "not pessimistic" about Christmas, especially since the 2008 season was so weak. Nevertheless, Penny gave the impression that while things have improved, real, sustainable growth will be more evident down the road — in the fourth quarter of 2010.

The diamond industry has been encouraged by a surge in demand for rough diamonds in the past month, with the De Beers Diamond Trading Company (DTC) sight in June rising about 70 percent from May's sight, to an estimated value of $425 million. Compared with June 2008, however, this estimated sight value was down 39 percent.

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