Harry Winston Rallies as Diamond Prices May Rise

Harry Winston Diamond Corp. gained the most in more than two weeks after the diamond miner and jewelry retailer said demand for safe-haven investments will help lift diamond prices.

Harry Winston rose 98 cents, or 7.5 percent, to C$14 at 4:10 p.m. in Toronto Stock Exchange trading, the biggest one-day gain since Sept. 10. Shares of the Toronto-based company plunged 17 percent yesterday after the U.S. House of Representatives failed to pass a $700 billion bank-rescue plan.

A dearth of significant new mines also will lift diamond prices when the world's financial markets stabilize, Chief Executive Officer Robert Gannicott said yesterday in an interview in New York.

Global supplies of rough diamonds are unlikely to meet expected demand as purchases rise with wealth in Russia, the Middle East and elsewhere in Asia, Gannicott said.

To contact the reporter on this story: Choy Leng Yeong in Seattle at clyeong@bloomberg.net.

To contact the editor responsible for this story: Kevin Orland at korland@bloomberg.net.

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