Emotions play into diamond market

Diamond Investing News reports diamond prices are set by supply and demand as well as emotions.

Market sentiment directs prices by inciting dealer’s actions. If dealers think that values are going to go up, they buy at higher prices. If they think values are going to go down, they sell at lower prices or hold. The downfall with the market sentiment’s leverage on prices is that trader bias can lead to excessively volatile market conditions that fail to take into account underlying fundamentals.

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