1990s: Diamond Index Indicates Profit Margins in Diamond Markets
The HRD Diamond Index which reflects actual diamond prices charged by Belgian dealers — rather than theoretical asking prices — showed a remarkable stability in 1997, despite the tumultuous events which took place on both the Russian and Australian fronts. Surprisingly, the drop in the price of smaller diamonds was insignificant — considering that much lower prices were paid for the raw material. Just noting the five point drop in small full cuts and three point drop in melees from January to the end of 97, indicates that manufacturers of these goods have vastly increased their profit margins. On the other hand, manufacturers of larger goods were not able to pass on the increased cost of raw material. From the outset of the year, the index shows virtually no increase in the polished prices of half carat and above categories despite the increased cost of larger rough to manufacturers.