High prices boost Gem Diamonds

Gem Diamonds reported a full-year pre-tax profit of £33.9m yesterday, up 39 per cent from 2009. The global diamond mining company expects to see rough diamond prices rise in 2011 because of greater demand from China and India. However, its stock fell 4.6 per cent to 248p yesterday on concerns over the impact of the earthquake and tsunami in Japan, a major market for diamonds.