Gutnick says diamond market starting to recover
Tuesday, 15/09/2009
The new owner of the Northern Territory's only diamond mine says demand for the gem has started to improve, after dropping significantly during the global financial crisis.
It's estimated there are about four and a half million carats at the Merlin mine, near Borroloola.
Owner Joseph Gutnick, from Legend International Holdings, says the general diamond price dropped by 30 per cent because people wanted cheaper diamonds.
He says there's still a long way to go, despite a slight improvement in demand in August.
"People don't spend money on diamonds, or they spend less money," he says.
"They were going to buy two-carat diamonds in good times, they buy one-carat diamonds now.
"But they always buy diamonds. It's a girl's best friend."
