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by Will Purcell
The diamond and specialty minerals stocks box score on Friday was a mediocre 82-97-121 as the TSX Venture Exchange rose 11 points to 993. Paul Zimnisky's global rough diamond price jumped 0.3 per cent last week, putting it even with a multiyear high reached in mid-October. Weekly tweaks to the recent data have wiped out most of the slight decline following the now 18-month-long post-COVID-19 rally. While that strong rally is etched in granite, Mr. Zimnisky's tweaks have worked toward extending it. Previously, the index had shown a sharp peak in early August and a 1-per-cent drop since then.
In the longer term, nothing material has changed, with prices higher than at any time since early 2011, when a brief bubble capping a 20-month-long rally following the Great Recession sent prices about 15 per cent higher than today. At that time, diamond promoters were as bubbly as the prices, as they expected the rally to go on indefinitely. In fact, all the studies and dream sheets had significant escalators built into price assumptions based on expectations that rough would outstrip inflation by at least 2 per cent annually.
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