Investing In Canada

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Canadian Diamond Stocks: Diamonds from Canada Not Just a Girl’s Best Friend.

Tuesday, September 29, 2009

Canadian Diamond Stocks: Diamonds from Canada Not Just a Girl’s Best Friend.

Whenever someone mentions the word diamond there are two immediate images projected: the bright eyed look of a woman opening an engagement ring box, or the negative connotations of the infamous blood diamond.  There is however a new image beginning to gain ground and it is due in part to some of the recent discoveries in the north of Canada.
It is no secret that there are diamonds in Canada. Over the past number of years if you went to a jeweller and asked for a certified Canadian diamond there is no question, you would be paying a premium.  Canada has become a preferred destination for diamond mines due to the stable political and social environment, excellent transportation systems, and highly developed mining technologies and infrastructure.  It’s no wonder that Diamond Investing News recently reported Canada is “the next diamond Mecca.”

Diamonds are not just for her anymore; ever think about investing in Diamonds? Ever think about investing in Diamonds in Canada? Well, if you haven’t maybe you should. There are loads of diamond mines in Canada and the overwhelming majority are located in the North. Over the past few weeks there have been some major new diamond finds made, most notably the 2 cores drilled by Peregrine Diamonds Ltd (TSX:PGD). Since the find was announced, Peregrine Diamonds stock price has gone from under $1 to $4.65 within a week.

Diamond stocks can be explosive when a find is made. Some of the other better know diamond stock names include the following:

Mountain Province Diamonds Inc. (TSE:MPV)

Stornoway Diamond Corp. (TSE:SWY)

Diamond Fields International Ltd. (TSE:DFI)

There is also a maze of diamond stocks on the Canadian Venture Exchange, but in a high risk asset field you may want to stick to something with better coverage.

At lease with most stocks listed on the TSX you will find some analysts providing insight into many of these companies. From the brief analysis that I did, I found that Mountain Province Diamonds (TSE:MPV) has the highest ranking and reputation with analysts. Also, don’t be surprised to find that some of the major investors in any of the above companies are other major mining companies. If a discovery is made they may try to buy up a significant portion of the company before you have a chance to blink. I suppose it pays to be an insider.

For more information about Diamond Stock Investing I suggest searching for free newsletters on the subject where you can get your feet wet with the latest information on the topic.

1 comment:

The Rat said...

I haven't invested in diamond stocks at all but I can say that I agree with your post in that it is interesting that Canadian diamonds are becoming increasingly popular worldwide.

I bought my wife's engagement ring at a Charm outlet and the diamond came from a northern canadian mine and it is a very nice cut. I'm pretty sure Rio Tinto, a multinational organization, is the parent organization of Diavek mines up north.