Allisonfaye
Brilliant_Rock
- Joined
- Oct 18, 2004
- Messages
- 1,456
I saw something on the Today Show the other day about what things to buy during this recession and they said diamond prices had come down 33%. Is that true?
I unfortunately believe the answer is yes....Date: 7/3/2009 6:15:24 AM
Author: Paul-Antwerp
Ditto all the above.
There are various sub-sections in the diamond-market, and they all have a different price-elasticity.
As said above, certain sizes went down in price considerably these last months, but they also went up enormously before that.
Also, higher cut-quality stones are better at maintaining their value.
With regards to news-reports, they often base their figures on the prices of rough diamonds, which is by far the most volatile section of the diamond-market. In that regard, I have some news hot from the press.
Yesterday, BHP-Billiton, one of the major rough diamond producers, announced a price-increase for their rough. In total, they increased their pricing by 50 to 60%.
And if I may add Paul..., weren''t the BHP tender results from Wednesday June 30 = rough dealers THEMSELVES overpaid (in my opinion) on their OWN offers..., mainly these offers were coming out of "heavily institutional financed" Indian manufacturers?
Trying to put this in perspective, they also adjusted their prices downwards in the midst of the crisis by about 45%. This means that they are now back to about 80 to 85% of the pre-crisis price-level.
In which I strongly believe are unsustainable and do NOT reflect polished market reality.
I tried starting a discussion, but no-one wanted to participate (yet.) https://www.pricescope.com/community/threads/are-indian-ice-cutters-creating-a-price-bubble-again.117671/
Even more perspective, there is general agreement in the trade that pre-crisis price-levels of rough, even with pre-crisis prices of polished, did not leave sufficient room for cutters to survive.
In the same way, there is general agreement now that the new BHP-Billiton-prices do not leave survival-room for the cutters once again.
Which brings us back to square one..., why are the Indian manufacturers vacuuming the rough market??? Are they trying to do the job no entity has control over anymore (eg DeBeers)???
Are we seeing evidence of industry (particular Indian) monopolization?
Live long,
Ofcourse you are correct (if) its seemed to sound ethnic...Date: 7/3/2009 8:31:43 AM
Author: Paul-Antwerp
Diagem,
I see your flaming 'smilies', and I want to distance myself from your assertions.
Reality is probably different from your simple ethnically based assessment. While our business is very global and multi-cultural, there is also too much blaming on other ethnic groups for things not going as one would like. I would prefer not to have this here.
Live long,
BTW..., I went back to the above attached link to make sure its clear.Date: 7/3/2009 8:56:34 AM
Author: Paul-Antwerp
Thank you for the clarification, Diagem.
by: Rapaport news, Market Comments 7/10/2009Date: 7/3/2009 9:15:00 AM
Author: DiaGem
Paul...,
Whats your take on this issue?
Or you still think they are my assertions?