What effect is the global credit crisis having on diamond prices??

[startech]

Hi,

Seeing the large swings in in the global financial markets in recent weeks has made me start to wonder what effects it has had on the diamond market.

As someone who is looking to purchase a diamond soon, I''ve seen that my home currency (Aussie dollar) has fallen in value against the US dollar and UK pound in the last three months by around 30 percent! Personally, this means I''m going to have to save a lot more to get the stone I want

As an aside, what is the main currency which diamond dealers use to value their trade? Is it the US dollar?

 

[strmrdr]

Date: 10/12/2008 1:51:20 PM
Author:startech
Hi,


Seeing the large swings in in the global financial markets in recent weeks has made me start to wonder what effects it has had on the diamond market.


As someone who is looking to purchase a diamond soon, I''ve seen that my home currency (Aussie dollar) has fallen in value against the US dollar and UK pound in the last three months by around 30 percent! Personally, this means I''m going to have to save a lot more to get the stone I want

As an aside, what is the main currency which diamond dealers use to value their trade? Is it the US dollar?

yes US dollar
No one really knows what is going to happen.
They are going to try and hold prices as long as possible but there may not be a strong enough player to pull it off long term.

 

[Beacon]

I am also interested in this. I wonder what will happen.

Most commodities are falling now but maybe diamonds are ok. I have noticed good prices paid at recent auctions for diamonds, high quality ones. I don''t know why diamonds should be resisting the downdraft but maybe some people see it as a safe haven? On the other hand, lots of talk about more estate stuff coming on the market as people are running out of money.

US$ is rising and that would impact your purchase in your home currency.

 

[Dancing Fire]

i think diamond prices will head south in the coming yrs b/c of the global crisis.