Bloomberg reported Singapore Diamond Exchange Pte Ltd said it expects diamond prices to rebound as mining companies struggle to keep pace with demand.
As quoted in the market news:
A slowdown, driven by the debt crisis inEurope, has hurt demand, Acting Chief Executive Officer Shlomo Tidhar said in an interview today, without giving a timeframe for the recovery in prices nor the amount that they may gain. Tidhar told reporters later that prices may improve from September.
The average price of so-called top-quality 1 carat diamonds has dropped 12 percent this year, according to the Rapaport Diamond Trade Index, which rallied 22 percent last year and 14 percent in 2010. Prices may recover in 2013 as supply lags behind demand, BMO Capital Markets said in June.