Diamond Sales Just Took a Nosedive, and Here’s Why

De Beers’ CEO calls it a “temporary slowdown.”

The parent company of De Beers reported a decrease in diamond sales, and it’s tracing the problem to India.

CNN Money reports that “sales of rough diamonds dropped to $418 million from $476 million over the past month,” as reported by De Beers parent Anglo American.

The source of the problem is a new policy in India, according to the company. The country recently banned its two largest currency notes, the 500-rupee and 1,000-rupee bills.

The change was meant to make life difficult for people involved in money laundering and tax evasion in the largely cash-based society. But it also caused Indians to put off buying many big-ticket items.

Bruce Cleaver, CEO of De Beers, stated: “The trade in lower value rough diamonds is experiencing a temporary slowdown as a result of the demonetisation program in India.”

India’s market for diamonds is among the fastest-growing worldwide.

Read more at CNN Money