Budget diamonds left behind during diamond recovery
The lower-quality and smaller loose diamonds miss out on the broader diamond recovery
Recently Bloomberg released an article regarding budget diamonds to be left out while all other diamonds enjoyed recovery. The statistics in the graph show that the diamond prices for smaller loose diamonds went down 15% this year. While compared to the other polished diamonds it grew with an average of 7%. The reason for the recovery in the diamond market came after De Beers and Russia’s Alrosa PJSC cut supplies in 2015 to boost the sales numbers.
According to Johan Dippenaar, the chief executive officer of Johannesburg-based Petra Diamonds, the slump for gems smaller than three grains is partly due to stockpiling. Furthermore, consultant Gemdax shared that manufacturers are nowadays more interested in bigger and higher quality diamonds as those are sold faster. While furthermore there has been a slip of 18% last year due to the slowing down of demand by Chinese and a slow down at industry-wide credit crunch cut purchases. Due to all these negative influences on the diamond sale De Beers and Alrosa were prompted to hold back supplies in order to support the diamond prices.
This action created a recovery in the diamond industry, yet the recovery did not stretch over all the diamond types. As Bloomberg describes “among small diamonds, those classified as fine quality have this year outperformed so-called commercial stones, the poorer clarity varieties often off-white or brown in color.”
While you might think smaller stones take less time to cut and are therefore preferred by diamond cutters and polishers, it is actually faster to generate a profit from larger stones than smaller stones. Therefore many manufactures turned to bigger diamond types as its much faster to earn back on their investment.
Lastly, man-made diamonds affect the possibility of smaller diamonds to enjoy the recovery as smaller man-made diamonds can be more easily passed off as mined diamonds.
Published on October 24, 2016 by Diamond Registry
YOU MIGHT ALSO LIKE:
Check the education section for a detailed explanation of the 4 C's.
Learn more about the Diamond's Clarity, understand how the clarity affect the Diamond Prices.
Learn more about the Diamond's Color, understand how a different color can affect the Diamond Prices
Learn more about the Diamond's Cut, understand how the clarity tremendously affect the Diamond Prices
Learn more about the Diamond's Carat (weight), 2 Carat diamond, 3 Carat diamond or 4 carat diamond prices are depending many variables.
Check the loose Diamond Prices
Diamond Registry provides you with a diamond price list which shows an average of the current market pricing trends for wholesale certified loose diamonds.