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

Wilkerson Testimonials | MSG Jewelers

Wilkerson Takes the Worry Out of Closing

MSG Jewelers has always treated its customers like family. When owner Mike George decided to retire and close the doors of his St. Louis, Missouri jewelry store, he selected a company to manage his going-out-of-business sale that treats its customers like family, too. That’s why he chose Wilkerson. “Wilkerson was able to do all the things that we needed,” says George. In the end, the bittersweet store closing was so much easier with Wilkerson at the helm. From marketing to pricing to inventory, Wilkerson does it all. “It’s a package deal,” says George.

Promoted Headlines

Most Popular