The FINANCIAL -- Luxury group
Compagnie Financiere Richemont SA said Friday it believes the
fundamentals of the luxury jewelry and watch-making business are
"sound," after diamond miner De Beers SA said it expected lower demand
for diamonds this year.
De Beers, the world's largest producer of rough diamonds, said Friday it expects 2012 to be uncertain and wouldn't see a repeat of the price and consumption growth in the first months of 2011.
According to London Stock Exchange, in January Richemont, whose Cartier maison is one of the world's largest buyers of jewelry diamonds, said sales at its jewelry division rose 25% to 1.36 billion euros for the three months ended Dec. 31, 2011.
"From our perspective, the business was very strong through to Christmas and, whilst we do not give forecasts, we believe the fundamentals of the luxury jewelry and watch business are sound," a Richemont spokesman said Friday.
Earlier this week Swatch Group AG (UHR.VX) said it expected diamond prices to remain high during 2012.
Swatch was badly hit by the surging price of diamonds, as the company nearly quadrupled its purchases of diamonds to 300 million Swiss francs in 2011 from CHF85 million in 2010.
"As long as there is so much liquidity in the world, everybody invests in gold and diamonds. Gold and diamond prices will unfortunately not go down," Swatch Chief Executive Nick Hayek said Tuesday.
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