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by Will Purcell
The diamond and specialty minerals stocks box score on Friday was a mediocre 96-93-111 as the TSX Venture Exchange fell one point to 903. Rough diamond prices rose 0.3 per cent last week, according to Paul Zimnisky's global rough diamond price index, but remain 0.5 per cent below their 10-year high, set one month ago. While prices have essentially been flat since early July, they are up nearly 30 per cent in the past year and are up 40 per cent since they careened over the COVID-19 cliff in early spring of 2020.
Despite the sharp, relentless climb through the last seven months of 2020 and the first six months of 2021, rough prices are up just 11.6 per cent over the past five years -- a rate barely matching inflation. Worse, they remain over 15 per cent below their record highs set in early 2011. With rough diamond prices struggling to keep up with inflation, diamond miners are finally getting the message that building price escalators into their studies is promotional hyperbole.
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