<h3>Diamonds Are a Girl’s Best Friends</h3>
If anyone knows that fact it’s Tiffany…as in Diamond-buff Tiffany. The company just publicized their staggeringly juicy figures for fourth quarter earnings of $181.2 million ($1.41 per share) which is quite a step-up from the same quarter of last year which was $140.4 million ($1.10 per share).
Despite these great figures it seems like this trend is not worldwide, especially Japan. But that’s not all that surprising; diamonds are no doubt the last thing on the Japanese’s mind. Tiffany expected sales to drop in the country by 15 percent this quarter which will lead to a depletion of the company’s earnings forecast for the first quarter to $0.57 per share.
<h3>Disaster Hits; Diamonds Drop</h3>
News from other diamond companies was that Gem Diamonds may possibly merge with Lucara Diamond Corp. And despite what is going on, investment from Japanese companies in Thailand doesn’t look like it will decrease and may even increase in the near future as companies in Japan increase foreign investments following their earthquake and tsunami. Indeed, it has been confirmed that there will not be a depletion of investments in Thailand by the Japanese as the country is set to plough ahead on its long road to recovery, according to chairman and CEO of Japan External Trade Organisation (Jetro), Yasua Hayashi.
<h3>When Spending Pays</h3>
At the end of the day while it’s tempting to save monies following a disaster, the only real way to rebuild an economy is by spending. This, the Japanese government recognizes. It is set to actually “increase its budget spending” in an attempt to “kickstart [the] economic recovery.”
Perhaps sooner than they know it the Japanese will be out buying their favorite gems once more. The economy has to recover and once it does, diamonds could become the Japanese girl’s best friend again.
Sorry, comments are closed for this post.