Is it true that diamond prices have come down 33%?

[Allisonfaye]

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?

 

[whatmeworry]

There is a nice chart on the homepage of Pricescope that shows historical prices (you have to scroll down the page). Yes, they have come down somewhat.

 

[stone-cold11]

probably not 33%, depending on when the benchmark the price at, size, also online will see less decrease in price as there is less mark-up to begin with.

 

[FB.]

Diamond prices have dropped considerably since last year, but it depends partly on currency movements, too.
The price of diamonds is on the move all the time, but price moves are not generally dramatic.

During the last few months diamond stocks seem to have slightly reduced, so prices have begun to recover a bit.

 

[Garry H (Cut Nut)]

The chart on the lower left of the home page is made from real listings of real for sale diamonds that appear on the many vendors from Pricescope. It is real.

You will see that only 3ct plus diamonds dropped a lot - but they also rose a lot just before - under 1ct has not moved any more than the strength or weakness of the US$

 

[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%.

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.

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.

Live long,

 

[diagem]

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,

I unfortunately believe the answer is yes....

 

[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,

 

[rudd.crux]

This chart will show u the details of the diamond prices in last couple of Months Courtesy: diamondse.com

 

[diagem]

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,

Ofcourse you are correct (if) its seemed to sound ethnic...
Didnt think about or mean to touch or attempt to make it an ethnic issue..., Mia culpa....

But I am pointing out to the Indian bank(s) financing systems and models which for sure offer tools for attempts made at monopolizing the Diamond price structure.
I dont realy believe it will work..., but I do identify an attempt...

The financial models practiced in India are not commonly used in other parts of the world's Diamond centers.

This system is easily abused and taken advantage of.

eta: And it is an Indian financial system

 

[Paul-Antwerp]

Thank you for the clarification, Diagem.

 

[diagem]

Paul...,

Whats your take on this issue?
Or you still think they are my assertions?

 

[diagem]

Date: 7/3/2009 8:56:34 AM
Author: Paul-Antwerp
Thank you for the clarification, Diagem.

BTW..., I went back to the above attached link to make sure its clear.

I notice it was made clear previously...

"The Indian banks are pushing/financing dealers and manufacturers to purchase Diamonds (only)."


I hope I didnt touch a touchy subject on your behalf.....

 

[diagem]

Date: 7/3/2009 9:15:00 AM
Author: DiaGem
Paul...,

Whats your take on this issue?
Or you still think they are my assertions?

by: Rapaport news, Market Comments 7/10/2009

"Caution:.....Rough price bubble developing as Antwerp reports further 10% price increase at BHP tenders. Recent rough price increases appear unsustainable and may be fueled by too much Indian bank credit."