Connect with us

Headlines

Is This the Start of a Comeback for the Diamond Industry?

mm

Published

on

Smaller diamond producers have their doubts.

In the face of decreased worldwide demand for diamonds, Bloomberg explores the potential impact of recent big sales by the two world’s largest producers, De Beers and Alrosa PJSC, who consequently have the biggest influence over prices.

The article explains how both companies recently sold a combined $1 billion in diamonds, though the CEOs of two smaller diamond producers are expressing doubt that it portends good things to come. William Lamb, CEO of Lucara Diamond Corp., told Bloomberg that it will be “very difficult to maintain the current exuberance of the market.” In the same vein, Firestone Diamonds CEO Stuart Brown called January “a good start on that road to recovery” but cautioned: “Time will tell. You don’t get any prizes for being bullish in this industry.”

Earlier this year, De Beers slashed diamond prices in response to slowing demand in China, which led to a giant $540 million sale in January. Industry guru Martin Rapaport later advised De Beers to not overprice rough diamonds “that result in a sharp decline in diamond manufacturing, polished shortages and bullwhip effects that increase volatility and uncertainty.”

Read more at Bloomberg

Advertisement

Advertisement

SPONSORED VIDEO

Maximize Every Sale with Wilkerson

When it’s time to run a sale, whether it’s a retirement, going-out-of-business, anniversary or “we’ve got too much merchandise” sale, let Wilkerson handle the details. The Diamond Galleria did just that when they selected Wilkerson to run its liquidation sale. According to Sharon, their CPA, it was the right choice. “We could have done a going-out-of-business sale ourselves and done 30 to 40 percent of what we actually sold with Wilkerson involved,” she says. Seeing the strategies that Wilkerson puts in place for every sale was something that convinced her they had made the right move. “I would highly recommend Wilkerson to anyone considering this type of sale.”

Promoted Headlines

Most Popular