My perception of the diamond industry is that it is probably doing a little bit better than most of the other commodities. The only reason is that it’s a very different market. So if you look at the bulk commodities … those guys are dependent on infrastructure growth, development in the countries where they are doing their production ... So where the economies start to diminish, you cut back on infrastructure, you cut back on the major projects ... De Beers [production cutting] strategy is probably right as the world economy is down. They have to ensure that they are not flooding the market with product, which drives the prices down and obviously affects their own profitability ... The days of mining companies just putting production onto the market, whether its diamonds or any other precious or base metal, I think those days are over for a while. The mining companies are going to look at low cost, high quality diamonds to put onto the market and slow down on the inefficient and high cost production.
Tony Zoghby, mining analyst and partner at Deloitte, interview with Rough & Polished