De Beers sees Asia sales boost

Diamond giant De Beers says gem sales in Asia will help offset lower US demand caused by the credit crisis.

"If somebody said they weren't concerned about the States, they'd be smoking something," Jonathan Oppenheimer, head of the chairman's office at De Beers and a director of its Diamond Trading, said in New York.

"There may be a balance in terms of the US being similar to last year, maybe a little bit weaker, and China picking up some of the slack, India picking up some of the slack."

Global demand for diamonds is increasing and supply is static, he said.

Continued demand, especially for high-value, gem-quality stones, has helped De Beers weather the slowing economy this year.

But the US accounts for about half of the world's diamond-jewellery sales.

"There is more real money at the top end, and the credit crunch is going to hurt the guys who would buy at the bottom end a little more," Oppenheimer said.

"I suspect a continuation of the top end being favourable."