Polished Diamond Prices Declined in 2014

Rapaport reported that polished diamond prices sunk in 2014 as a result of lower demand from China and decreased liquidity. For the year, the RapNet Diamond Index for 1-carat, laboratory-graded diamonds sank 8.7 percent.

As quoted in the market news:

Reduced bank credit, tight profit margins due to high rough prices, and grading delays at the Gemological Institute of America (GIA) all contributed to squeeze cash flow among manufacturers. Banks reduced their credit to the industry and are demanding more stringent reporting and business practices from the trade.

Inventory levels remained high across the diamond distribution chain in December and polished suppliers lowered their prices in an effort to increase turnover and raise cash.

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