No Price Peaks Expected for Diamonds Due to Supply Constraints

May 3, 2010 - PRLog -- Enlarge  

 

When asked a similar question about other minerals, the number of participants who believed that supply constraints would cause new price peaks was higher – for copper 23.0% responded in the affirmative, for gold 21.73%, for silver 12.83%, for nickel 11.56%, for platinum 9.75%, for zinc 9.32% and for coal 8.90%.



Asked about the effect the financial crisis has had on exploration and development activity, some 55% of those questioned said they thought it had severely cut exploration and development activity. Another 38.42% responded that the crisis had ‘somewhat cut exploration and development activity’, while 5.66% thought that the economic crisis ‘had little impact on exploration and development activity’. Less than 1% thought that there had been no impact on exploration and development activity.



As for commodity prices over the next two years, 64.09% of respondents thought there would be a slight rise, while 19.07% expected a substantial rise. Another 14.60% expected commodity prices to remain substantially the same, while 2.23% expected a fall.



The survey also found that almost twice as many mining companies (333) say they will increase exploration budgets as those who say budgets will remain the same or decrease.



Since 1997, the Fraser Institute has conducted its annual survey of metal mining and exploration companies to assess how mineral endowments and public policy factors such as taxation and regulation affect exploration investment. Survey results represent the opinions of executives and exploration managers in mining and mining consulting companies operating around the world.



Last year’s survey presented a gloomy outlook for the mining industry. This year the outlook is much more optimistic, with almost twice as many mining companies saying they will increase exploration budgets as those who said their budgets will remain the same or decrease. The majority of respondents also expect mineral prices to increase over the next two years, with 64 percent forecasting a moderate rise and 20 percent predicting substantial increases.



“As economic recovery takes hold, we’re seeing greater optimism from the mining industry in terms of new explorations and long-term projects,” said Fred McMahon, coordinator of the survey and the Institute’s vice-president of international policy research.

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The Israeli Diamond Industry organizations
Behind the Israeli Diamond Industry are a group of vital and dynamic institutions. Each one is responsible for a different aspect of the industry’s activities.