Re: Price-prediction of Diamonds- Examination of Alrosa Anal
Karl,
Check the price of your groceries this week and imagine how many items will have gone up 55% by 2018. Considering past experience, I know that my groceries clearly cost about double of what I used to pay 8 years ago.
Your argument is in economic terms that the world will go through a decade of deflation. Let us all hope that this is not the case, considering that the world's population is continuing to rise and we will need economic expansion to simply feed more people.
Your comparison to real estate is invalid. Looking at the number of vacated houses in the US, it is clear that there was an over-supply. Alrosa's analysis clearly shows supply declining and struggling to get back to the same level.
Most importantly, you stating this analysis as rosy is not correct. It is good news for miners, but it is very bad news for all other actors in this business, ranging from cutters to wholesalers and retailers. However, we cannot simply dismiss it because it is bad news. We have to deal with it.
Live long,