Rapaport Comments on De Beers' Rough Diamond Price Cuts

Martin Rapaport, chairman of the Rapaport Group, released an article that praises De Beers’ decision to “reduc[e] rough diamond prices sufficiently to enable increased sales of rough diamonds and a resumption of diamond manufacturing activity.”
Late last year, Rapaport put out a note outlining why today’s low rough diamond prices are a problem and lambasting those he sees as responsible — namely major diamond miners and banks.
Rapaport’s most recent article states:

In the event that De Beers continues on a responsible path, we expect a healthy diamond market to emerge. Polished prices will adjust to the realities of polished demand. There may be some short-term corrections as a return to normal supply levels confronts relatively weak global demand, but we expect the markets to settle down quickly as long as the supply side of the equation remains consistent and profitable. China and the rest of the world will improve and enter new periods of growth and development. As long as the diamond dream is kept alive demographics will support consistent demand. In our view the mid to long term growth outlook for the global economy is positive and the same is true for diamond prices and markets.
In conclusion, we are not out of the woods yet, but we are headed in the right direction and it looks like the worst may be over. 2016 has the potential to be a great year for the diamond industry as profitability and responsibility returns to the diamond supply chain.

Click here to read the full note from Rapaport.