Canadian Gems as Stocks (Part 1)

Canada and South Africa may be literally poles apart, but they have common stocks in one important though relatively unknown aspect: the abundance of natural diamond deposits. South Africa has been a traditional source for these widely coveted gems, but it is Canada that has made the most admirable strides in recent discoveries and new commercial production. Most diamond deposits do not have working lives of more than 3 decades (Kogel, 2006), and hence the spectacular new finds of Canada are most impressive indeed.

Industrial diamonds are of far less values than the ones used for gems, so the conversion to synthetics for industrial applications should not worry investors unduly. Trends in natural diamond production have been remarkably stable, so the financial outlook for the industry in the face of growing demand is very attractive.

The race between Canada and South Africa for a leading spot in world diamond production takes a new hue when we consider the prospects of Canadian stocks with mining rights in the African continent. The combination of frontier mining skills with trans-continental reserves makes for a winning combination. That is why, the stocks of Canadian companies with diamond interests in South Africa, deserve particular attention.

These Stocks Are Forever!

Diamonds, like other mineral resources, are ubiquitous in modern life. They represent some of the most stable investment options that can be found anywhere. The mining industry straddles all phases of economic development, having built original empires with as much aplomb as it supports the latest developments in the most advanced countries.

Natural reserves of diamonds add significantly to the stocks of advantaged nations. The United States for example, has no indigenous source for natural diamonds and is entirely dependant on imports from other nations.

Natural diamonds can only be formed at such extremes of temperature and pressure that they are singularly rare, and amongst the most precious materials on earth in terms of weight. The unique combination of hardness and beauty make natural diamonds irresistible in terms of demand as objects of adornment.

The extraordinary natural and psychological properties of diamonds lead to new applications periodically, which offset the transfer of some consumption to synthetic materials. Probes in to deep reaches of outer space for example, require windows made of transparent diamonds, which alone can withstand the harsh conditions in the universe, and allow infra-red light waves to pass through as well. Similarly, technology has been developed to form diamonds for inheritors from the cremated ashes of deceased humans.

Canadian Gems as Stocks (Part 2)