Large Diamonds Holding Value as Prices for Smaller Gems Slump

Bloomberg reported that according to Gem Diamonds Ltd. (LSE:GEMD), large diamonds are holding their value even as smaller stone sell for less.
The company recently released its results for the first half of 2015, recording lower revenues than in the year-ago period.
As quoted in the market news:

Prices for Gem Diamonds Ltd.’s stones that are larger than 10 carats have fallen about 3 percent in the first half of this year, Chief Executive Officer Clifford Elphick said by phone on Wednesday. That compares with declines of about 30 percent for smaller gems.
“The big stones seem to be holding up their value,” Elphick said.
The London-based company has mines that produce both large and small diamonds. Prices have slumped in the past 12 months as traders, cutters and polishers suffered from a credit squeeze and weaker-than-expected jewelry demand. De Beers, the biggest producer, has responded by cutting output and allowing its customers to defer pre-agreed purchases.
“This is really going to have a big impact,” Elphick said. “We’ve seen some indications at the bottom end that things are starting to turn.”

Click here to read the full Bloomberg report.