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.
Diamonds could very well represent the next safe haven for investors, much like gold and silver, as investors flee the financial markets for more secure investments.
The diamond industry has been having a unique year.The top jewelry sales time is just around the corner, and not till that milestone is over and the numbers are crunched will companies be able to conclude on the successes and failures of 2008.
The Diamond industry is heading to Hong Kong with high hopes that strong Far East demand will sustain high price levels. The diamond industry concerned that economic hardships in the US will dampen holiday jewelery demand, as Christmas is when jewelers realize the majority of their annual sales.
Canada’s diamond production is on the rise. According to a report issued by the Mining Association of Canada, production rose 28 percent to 17 million carats in 2007.
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.
Despite cautions of the US economic downturn, in 2008 De Beers has been able to boost rough diamond prices by 16 percent on the back of strong demand. De Beers’ marketing unit The Diamond Trading Company (DTC) has reached this 16 percent increase through incremental raises throughout the year.
Diamond values held steady in July, after rapid inflation earlier in the year. Weak consumer demand in the US, coupled with fear that the recession will spread globally put the lid on prices. Diamond values are still up 15 percent compared to a year ago.
Prices for polished diamonds stabilized in July. For full news, click here
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