The second-largest luxury-jewelry retailer- Tiffany & Co agreed to buy the yellow diamonds mined at the mine of Gem Diamonds Ltd. Ellendale in Western Australia.
As the global economy recovered from recession, diamond prices have rebounded, after plunging in the first quarter of this year. And this purchase is one of the direct results of the economic recovery.
Within 10 percent of that achieved before the financial crisis in 2008 is the initial price, in a statement London-based Gem Diamonds said on 22nd, December. The contract, which formalizes an existing schedule, allows Tiffany to take Ellendale¡¯s output of so-called fancy yellow diamonds for the economic life of the mine, Gem remarked. Shares of Gem increased as much as 7.2 percent in London trading. It was analyzed as the biggest intraday gain in three weeks.
¡°Tiffany has some very exciting design initiatives beginning in 2010 that will require high quality yellow diamonds,¡± New York-based Tiffany¡¯s Chief Financial Officer James Fernandez said in his statement on the outlook of Tiffany & Co.

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Saturday, December 26, 2009