Research group Frost & Sullivan declared that it has taken a gloomier view than other diamond industry commentators in forecasting a long downturn in commodities demand and SA’s diamond production dipping until 2011. For full story, click here
Here at diamond investing news, we have been following how the financial crisis has been impacting the industry. For a brief summary over the past few months, it was not until the end of September that dropping revenues became an issue to diamond industry participants.
Diamond prices have held their own this year, despite the markets impetuous downward spiral. Prices of top gems have been keeping the finances rolling while mid grade mass consumed diamonds sales slumped. Now, as the crisis deepens, Diamond prices are under pressure.
The summer market lull has made its mark on July diamond sales in Asia. Japanese polish diamond imports took a marginal 0.9 percent rise to hit $73.96 million. Hong Kong reported July retail sales were flat, with jewelry among the worst performers. July diamond imports from India fell 14.7 percent to $25.56 million. Imports from Belgium rose 8.8 percent to $22.9 million.
Buying diamonds for jewellery is a common practice, but investing in them and trying to turn a profit is not for your average folk. Diamond investing is a little bit tricky, especially for those who have started investing in precious metals, and then take the leap to diamonds, assuming that they behave in the same fashion. Once someone decides to take the leap, they are in for one heck of a ride.
Diamonds represent the crème de la crème in luxury, with most gem quality diamonds finding their place in the jewelery boxes of wealthy Americans and Europeans. The slowdown in the US has left diamond exporters around the world holding their breath, hoping that demand for the luxury good would weather the economic storm.
As with most investments there are risks and rewards associated with commodity investing, often in lock-step. Many investors hire experts to manage their money rather than doing the investigation required to increase the chances for success. But...
Wednesday, May 27, 2009