Mining

Best companies to invest in short term 2015

Consulting services We are known for our best companies to invest in short term 2015 perspective. We cross boundaries with our clients to create value. 3a Growth Perspectives amid Short-Term Challenges.

In this year’s edition, we take a comprehensive look at the year’s major developments along the diamond value chain. We focus on the reasons for the recent drop in rough and polished prices against the background of continued but slowing growth in the macro economy. As in previous years, we start with key developments along the value chain and a review of recent economic fundamentals that are the long-term drivers of diamond jewelry demand and prices. We look at the long- and short-term factors influencing prices to better understand the recent declines in polished and rough-diamond prices and expectations for their recovery. We compare 2014 results with the results of previous years and review the market to date in 2015, which has been marked by demand uncertainty and price declines. We also provide an update on the long-term outlook for the diamond industry through 2030.

The 2030 supply-demand outlook is based on long-term macro-fundamental factors and incorporates the effects of the recent decline in demand from China. China while continuing to grow in the US. Despite a generally solid performance in 2014, the second half of that year and the first half of 2015 have been characterized by a degree of uncertainty in the diamond industry. The Greater China diamond jewelry market appears to be in turbulence in the short term.

By now, the three largest retailers have posted significant year-over-year drops in diamond jewelry sales driven by the stock market crash and continued consumer uncertainty. In 2015, the diamond industry suffered the ripple effect from the mild decline in consumer demand for diamond jewelry that started in 2014 in Greater China. We believe that regular circulation of diamonds through the pipeline should be restored as soon as the midmarket and retail segments clear their excess inventories. This time, however, the market should return to its long-term growth trajectory more quickly than is the historical norm because of positive macroeconomic fundamentals. Amid industry turbulence and continuing pressure on the market, mid-market companies are being forced to reevaluate their business models. At the moment, the segment is not robust enough to cushion against short-term fluctuations in the diamond jewelry retail market. As in past years, the industry faces key challenges: sustaining long-term demand for diamonds in developed markets and among a new generation of consumers, and boosting demand from other sources than jewelry and aesthetic use.