2005

Market Report

November 2005

Diamond prices are finally beginning to stabilize as rough dealers and cutters are beginning to realize that nothing can go up forever.

In our June Diamond Registry Bulletin, we quoted a young cutter telling his father to "put the goods in the safe, go on vacation and we’ll make tons of money" We thought that outlook too naïve and too unrealistic.

It seems, at least for the time being, that the only way the diamond industry can flourish is by serving the customers and giving them intrinsic value plus the sentimental value at a cost which is affordable to most people.

It seems to us that steady prices actually are healthier for the long run then spiraling increases and speculation.

We find that while prices have not dropped, stones are more available, both in rough and in polished, In the long run, prices will be determined by supply and demand and the holiday season. If the holidays go smoothly, prices will remain firm. Should the holidays be a disappointment, there may be a drop in prices.