Reasons You Should Purchase Canadian Diamonds

Canadian diamonds

mining industry began in the late 1980’s with two prospectors from British Columbia, Stewart Blusson and Chuck Fipke. With time, these miners were convinced that the Northwest Territories were prime diamond property and began research. According to Fipke, there was a trail of glacier that was heading to the Lake Lac de Gras 300 kilometres northwest of Yellow Knife. The patch of sediment found was full of Canadian diamonds indicators such as garnets and chrome diopsides. The area is a host to a 1.8 carat diamond and has since been the jewel of Canada. Given the wide range of diamonds that are available, there are a few reasons as to why you should purchase Canadian diamonds, as discussed in the following paragraphs.

Canadian diamonds

Profitability
Mining Canadian diamonds in Canada is the most lucrative diamond mining in the world. According to Bloomberg. For a one dollar sale of diamonds from the Northwest Territories, a 56% profit will be derived. Analysts suggest that the Diavik mine, which is in the Northwest territory, is more profitable averaging a gross operating margin of 82% compared to that of base metal mine, which is at 10%. The pipe from Diavik mine is thought to be the richest in the world. It is currently yielding 4.8 carats per ton, a large proportion of which are high quality gems. These lucrative gems form part of the Diavik mine, which began it operations sometimes back in 1998. Ekati and Diavik Canadian diamonds mines claim that they mine three of the world six richest pipes.

Efficiency
The ratio of diamond-producing kimberlites is also much higher in Canada. It is another factor you should look at when investing in diamonds or buying them. Reports indicate that 3.1 percent of the 540 kimberlites found in Canada prior to 2003 were worth mining. Comparing this with other deposits found around the globe ,which stand at 0.7 percent of the 6,395 kimberlites found across the globe that are worth mining. This means Canadian mines which produce Canadian diamonds are four times more likely to be successful and this is a reason for mining.

Pricing
Canadian rough, which makes Canadian diamonds, tends to have a much better color and buyers for the commodity are plentiful. This is why Canadian rough is more expensive that De beers. It is a factor that buyers like when purchasing these Canadian diamonds. The safety of the customer is also guaranteed, owing to dubious origins of some stones in Africa, Canada created a certificate of authenticity that guarantees that its diamonds have been mined, cut and polished locally. The country has spent a fortune in marketing the virtues of its trade mark called Canadian Arctic Diamonds in other regions such as Europe and Japan. Canadian stones, which are sold in Canada, are reportedly earning premiums of between 5-30 percent compared to other diamonds. That means a reasonable investment in the diamonds will earn a reasonable profit.

Originality
Canadian diamonds are laser inscribed with polar bears and maple leaves and bearing up to three certificates to authenticate them. Canada has a consistent supply of good quality rough at a time when major sources of supply are dwindling. This means that as demand for diamonds increase, it is expected that Canadian diamonds will continue to garner premium prices and this makes it a high quality stone to invest in.

Investors Advice
Because the cycle from exploration to production is long and announcements of progress from companies during this period are not made regularly, the share price will fluctuate. Speculation in the junior mining stock sector which is another form of investing in diamonds should be attempted when one has information.

All forecast show that from 2010, Canada has been mining about 20% of the global diamond output. The percentage accounts for the best quality stones in the most stable socio-political environment. Today, the diamond rough is rare and Canadian rough is essential for production of diamonds. It is expected to play a prominent role because output in other parts of the world is declining. New growth markets such as china will continue to drive demand forward at a time when supply restrictions mean that Canada is one of the only viable new sources for consistent diamond supply. These are enough reasons as to why you should purchase

Canadian diamonds

.

Speak Your Mind

*