GLUT OF DIAMONDS.

Manawatu Herald, Volume XLVIII, Issue 3651, 14 June 1927, Page 1

GLUT OF DIAMONDS.

I'ear lest over-production of diamonds sliould cripple the industry lias led the Government of South Africa to introduce legislation embodying a measure of control. The Precious Stones Bill is described as a long overdue measure consolidating the differing laws of the four provinces, hut it contains a number of provisions designed to meet the serious difficulties created by the recent discoveries of alluvial diamond deposits at Lichtenburg, Port Nolloth, Namaqualand, and elsewhere. How serious the position in the diamond trade is as the result of these alluvial developments has been demonstrated by Sir Ernest Oppenheimer, who has given figures showing the effect of the Lichtenburg fields on the price of alluvial diamonds. In June, 11)25, the alluvial output of the Union was £170,000; last December it was £300,000; in February it had risen to £575,000. Last year alluvial production totalled £4,oo(l.tint) sterling ami the production of the mines was £8,000,000. All (his was bought by the Diamond Syndicate, which has been compelled to retain diamonds to the value of £1,000,000 over and above the ordinary stock. This showed that the world could not absorb the diamonds produced. During this year the estimated production of alluvial diamonds'is £7, 000,000; thus the accumulation, in the hands of the syndicate will be £4,000,000, instead of last year’s £1,000,000. Sir Ernest Oppenheimer pointed out that the syndicate could not continue to buy up diamonds on this huge scale in order to support the market. Therefore he regarded the Government intervention as absolutely necessary for the maintenance of the diamond industry.