The Conversation (0)
A brief overview of diamond price developments, supply and demand, and significant market movers.
The cautious attitudes seen throughout the first quarter of 2012 continue to overshadow the diamond market, and there is still resistance to making large purchases.
Part of the problem appears to stem from the price of rough diamonds, which is rising despite low profitability and liquidity for cutters. Polished prices are reportedly failing to keep pace with the price hikes of rough diamonds.
The diamond market is still recovering from the negative sentiment that resulted from investigations into tax evasion and money laundering in Israel and protests in India in response to new taxes.
April was also a month that saw many market participants taking breaks from business in connection with Passover and Easter.
In May, uncertainty about the economic standing of the EU countries and China seems to be setting the tone for continued cautious attitudes. Polished prices and demand remain stable in the US as the summer wedding season still lies ahead, and there has also been some positive demand coming from the Far East.