So why aren’t a wave of early investors pouring into diamond stocks? Why aren’t the bars around Bay Street abuzz with talk of new diamond investments? Only five years ago, the combined market capitalisation of the larger Canadian diamond miners — Dominion Diamonds, Mountain Province Diamonds and Stornoway Diamonds — was C$2.8 billion.
The answer is that while diamonds may have been “a girl’s best friend” for Marilyn Monroe, if you were an investor in the diamond mining space, it’s been anything but fun, in fact for many it turned into a nightmare.
What did investors miss? This is an incredibly important question to answer if they are not to make the same mistake again.
