Given the choice and the money, which would you prefer: a holiday in the south of France or a new diamond? In the grip of winter, the idea of gently sipping a Grand Cru Bourgogne in the Mediterranean sun sounds better than the allure of cold, white jewellery, regardless of the occasion (or even the love).
According to a Morgan Stanley report, “doing stuff” trumps “getting things”. Experience beats ownership, especially to a Covid-19-blighted society where life is temporary. This is one of the reasons why the bank thinks the much-anticipated recovery in the diamond market may have limited upside.
On the face of it, the diamond market is storming back. De Beers recently hiked high-value rough diamond prices, the stones it sells to polishers and cutters, by around 10%. Its sales in 2021 are $2.5bn, the most since 2018, and are estimated by Goldman Sachs to comprise 6% of Anglo American’s 2021 earnings before interest, tax, depreciation and amortisation. (Anglo owns 85% of De Beers).
Its CEO, Mark Cutifani, has told finweek in the recent past that glittery statements of affection for one’s relevant other will be a certain person’s preferred antidote to the gloom of the past 18 months.
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