Rough Diamond Value is Falling Since Mid 2014

Rough Rapport index has been falling since mid 2014. Many of the large diamond players such as Debeers and Petra had to lower their prices by 10%, Alrosa, the largest diamonds producer in the world lowered their prices by 16% in September.

This fall in prices comes primarily from a slowing Asian market, pressure from Indian buyers, and first and foremost from over production from mine to market by these large mining companies.

Average-Best-Price-For-Top-Quality-1-Carat-Diamonds-2015-06-02-chart

Regardless of the falling market, we anticipate prices to stabilize within the next 2 quarters, ultimately, the rough diamonds market will recover, and investments in rough diamonds or any precious commodities are still much safer than stocks, which are only backed up by useless paper.

Gold has been picking up steam recently, due to the volatile stock markets in Asia, and will most certainly keep climbing as the Chinese real estate markets slowly implodes in the near future.

Rough Diamond Prices on a Downwards Trend For the Last Few Weeks

With some of the largest mining companies slashing their prices by 10% and more, and the pressure on these companies from the Indian market to keep prices low, prices are going down.

This softer market is unlikely to remain for the long term as demand in Asia is expected to pick up within the next 6 months. Despite the lower global production in 2014, most of the major producers like Russia and Botswana’s productions have increased.

Rough Diamonds will always remain a strong commodity on the global market and despite fluctuations in value like all other commodities,  the core value of the asset will always be strong.