Leibish & Co.: Updated 2015 Diamond Market Outlook

At the end of 2014, Resource Investing News (RIN) spoke with Yaniv Marcus, investment strategist at Leibish & Co., about his 2015 diamond market outlook. He made a number of positive predictions, noting that rough prices would likely “continue to grow at a rate of 3 to 5 percent a year,” also stating, “we’re definitely going to see continuous strength in prices for fancy colored diamonds.”

With 2015 now nearly at the half-year mark, RIN got back in touch with Marcus to see if his forecasts have been accurate thus far. Interestingly, the diamond market has not had as easy a time as expected in 2015, with lower prices being a key issue.

Explaining what’s going on with diamond prices, Marcus said that one problem is funding. “I think that financing to the industry has been drying up, a lot of banks have been coming out of this industry,” he said. As a result, he believes “that in the short term it’s a little bit softer for the colorless goods. In terms of the fancies, prices are holding steady. We’re seeing market resistance because of the pressure of prices going up, and buyers are not willing to pay.”

That said, he emphasized that as a company, Leibish & Co. focuses on the long-term picture. “Every once in awhile there’s a bump in the road, and we continue to develop,” he said. To combat today’s challenges, the company has been doing things like developing its jewelry line and focusing on educating market participants about the investment potential of fancy colored diamonds.

Watch the video below for more diamond market insight from Marcus.

Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.

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Expect Higher Diamond Prices in 2015: Leibish & Co.