Vol 2.5 "Ice in Ice" April 21, 2003

Dear Friends,

It’s 10:06AM, April 21st, 2003. Yesterday was Easter or middle of Passover
or perhaps just a regular run-of-the-mill Sunday, depending on your beliefs.
I spent the morning and early afternoon with my mom, dad, sister, her hubby,
my nieces, Todd (a buddy of mine) and my wife. (Honey, if you’re reading this
I didn’t list you first cause I always save the best for last). We went to
one of those ‘cattle call’ buffets at a major hotel where they set one price
and allow you to go back to the trough as many times as you like. I always
consider an ‘all you can eat’ as the finals of the Poker World Series between
me and the establishment. They are betting your stomach can’t hold as much as
you think; you’re betting that they set the flat price at least one dollar too
low.

At yesterday’s eat-off the bar was set pretty high; $53.00 a head,
children were half that. It was going to be hard to put away over $53.00 of
food at one sitting but if I was to stand a chance I was going to need a game
plan. ABSOLUTELY no bread, pasta or rice! I had to hit them in their
wallets. Oysters, caviar, shrimp, smoked salmon, prime rib, chocolate covered
strawberries, crepes, eggs benedict! By my calculations five round trips with
full plates should declare me the winner. I kept saying to myself ‘pace
yourself, Fred, pace yourself. You can do it! The food isn’t going
anywhere’.

After my third plate I could see chefs whispering on walkie talkies ‘we’ve
taken a hit at the eggs benedict station; repeat, we’ve taken a hit at the
eggs benedict station. We need reinforcements!’ My God! I was clearly out
-manned and being double teamed! But I dug deep, I went to that special place
all great athletes go when they need just a little something extra to pull
them through’I eased my belt to the final notch!

As plate five was cleared away I sat there with pride, that feeling of
exhilaration only someone who has been in triple overtime can know, when you
are declared the victor and the spoils of a game well-played are yours. I
was, I was, I couldn’t breathe! My wife drove me home and tucked me in bed
where I promptly took a nap.

I hope everyone had a great Sunday yesterday. In closing I’d like to give
ya’ll a sneak peek at next month’s article of the month ‘Ice in Ice’.

Talk to you soon,

Fred

Ice in Ice

One thousand miles north of the U.S border in Lac de Gras, Canada a remarkable
thing has been going on since 1998. They are mining diamonds, and I’m not
just talking onesies and twosies but bucket fulls! On any given day, Ekati
(first ever Canadian diamond mine) will sift 10,000 tons of Kimberlite (a rock
formation in which diamonds are formed) to obtain a sack of 10,000 carats of
diamonds (about 4 ½ pounds) valued in excess of one million dollars. What’s
even more amazing is where they find these diamonds. They are buried in ice
two-thirds of a mile down chilled to a very uncomfortable 70° below zero. At
a cost of 600 million dollars BHP Diamond Corporation (Broken Hill
Proprietary, an Australian outfit) broke ground with a team of 500 people who
live and work on the frozen tundra working in shifts (two weeks on and two
weeks off) 365 days of the year including Christmas. To give you some idea
how big a diamond find this is, let’s put it into perspective. Every year 30
billion dollars worth of diamonds are mined worldwide. That’s every mine from
every country in the whole world to get to that 30 billion. This one little
mine is currently producing 3 million carats a year at a value of ½ a billion
dollars. So what, you say? Here’s what, only one company is on line right
now but there are 260 companies that have staked claims on 100,000 square
miles (larger than Texas). They’ve found 136 Kimberlite pipes with five
already having enough diamonds to mine. Think about it; if there’s only one
mine in production (Ekati Diamond Mine); one main Kimberlite pipe being used
(named Panda, how cute); imagine what will happen when the other mines come on
-line! Next year, Diavik Diamond Mines Inc. will be in production and at
their peak they will be able to produce six million carats a year (twice that
of Ekati)! With most of these mines’ life expectancy being 20 years, that’s
over 6 billion dollars worth of diamonds to be produced from each single
location. Before this decade is out, 12% of the world’s diamonds will be
coming from Canada.

What it means to you

Nothing! The Canadians, as well as all the foreigners they are letting mine,
don’t want to see the price of diamonds fall. It’s not in their best
interest. They are going to do what’s been done for the last hundred years;
allow certain amount to the market and hoard the rest for future consumption.
What’s the point then? You can rest assured that your great, great, great,
great grand children will have diamonds to wear when it comes time for them to
go diamond shopping.

Diamonds will never become extinct.

The founder and president of Diamond Cutters International, is one of the worlds top diamond experts, as well as a three-time Guinness Book record holder in jewelry design.
Fred The Diamond Guy
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