Diamond Price Fell by 12% in Five Years?

Luxury goods come down from the altar; It is hard to find buyers of private planes; The gold prices drop sharply...Now, even the shimmering diamonds also encounter the Waterloo. Oversupply and weak demand, what happened to the expensive commodity markets around the world?

The market prices of diamonds have been going a long and slow down, which is becoming a nightmare of diamond manufacturers.

Petra Diamond Company announced on July 27, this fiscal year (as of June 30) revenue fell by 10% to $425 million year on year, and the price-off of diamonds also affects their sales.

De Beers, the world's largest diamond supplier expected last week that their company profit might fall by 23% to $360 million year-on-year in the first half of this year. De Beers has to adjust their full-year production target again at the same time, which also reflects the demand for original stones is extremely weak. The diamond market is active during the period of the financial crisis, and at that time, consumers thought diamonds would be safe investment products. After the peak, the market price of diamonds began to drop slowly for five years, which is a disaster for diamond manufacturers.

Over the past five years, because Chinese demand for diamonds became weak, diamond price fell by 12%. The following is IDEX (International Diamond Exchange) diamond prices index charts, which comes from BI:

DE beers has previously mentioned that Chinese retailers have more diamond inventory than they previously thought.

In addition to diamonds, almost all the expensive goods encounter the Waterloo recently. Gold prices appeared “flash crash” last week, decreased by $60 just within two minutes, and all silver, platinum, palladium and other precious metals also slump.

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