• 1 day Bitcoin Lives Up To Its Safe Haven Status In A Big Way
  • 1 day 14 Million People Will Lose Unemployment Benefits On December 31st
  • 3 days Why 12 Million American Millionaires Isn’t Good News
  • 4 days Big Oil Is Paying The Price For Investing In Renewables
  • 5 days The Banking Industry’s $35 Billion Gravy Train Could Disappear
  • 6 days Did Amazon Just Democratize Prescription Drugs?
  • 7 days The Private Space Race Just Got Very Real
  • 9 days Short Sellers Are Willing Big In This Turbulent Market
  • 10 days SpaceX Gets Go-Ahead To Send Humans Into Space
  • 11 days Saudi Arabia Lost $27 Billion In Oil Crash
  • 12 days China’s Big Tech Takes A Hit As Regulators Crack Down
  • 13 days Black Friday Could Be Retailers’ Only Hope
  • 14 days Why You Should Not Dump Your Stay At Home Stocks Just Yet
  • 15 days The Real Reason Why Uber And Lyft Stocks Have Soared Nearly 50%
  • 17 days Bitcoin Heads Towards $16,000 And No One’s Cashing In
  • 18 days Elon Musk’s $250 Tesla Tequila Is Already Sold Out
  • 19 days Will The San Francisco Wealth Tax Spark An Exodus Of The Rich?
  • 20 days The Fin-Tech IPO Of The Century Just Got Crushed
  • 21 days UK Bookies Report Largest-Ever Political Bet Ahead Of Election Results
  • 22 days Better Safe Than Sorry: 5 Alternative Investment Plays
Gold Prices Soar To Record Highs As Dollar Dips

Gold Prices Soar To Record Highs As Dollar Dips

Gold continued its upward climb…

COVID-19 Is Crushing Palladium Demand

COVID-19 Is Crushing Palladium Demand

The global platinum market is…

Russia Aims To  Become World's Top Gold Producer

Russia Aims To Become World's Top Gold Producer

Despite some disruptions caused by…

Mining.com

Mining.com

Mining.com

MINING.com is a web-based global mining publication focusing on news and commentary about mining and mineral exploration. The site is a one-stop-shop for mining industry…

Contact Author

  1. Home
  2. Commodities
  3. Precious Metals

Diamonds Are In The Rough

Diamond Markets

Rapaport published a report stating that diamond markets are under pressure as profit margins have tightened and the trade war with China has fueled uncertainty.

The international firm revealed that the RapNet Diamond Index, known as RAPI, for 1-carat+ diamonds fell 0.7% in May and is down 1.7% since the beginning of the year.

RAPI is the average asking price in hundred $/carat of the 10% best-priced diamonds, for each of the top 25 quality round diamonds offered for sale on the Rapaport Diamond Trading Network.

Stones weighing 3 carats saw the most dramatic change, with a 4% drop in May and a 9.8% drop since the beginning of the year.

If the trade does not change its business practices and adapt to new realities, the diamond industry will suffer 'extreme financial and regulatory disruption'— Rapaport

Diamonds of 0.30 carats sunk by 3.7% in May and 9.4% since the start of the year, while 0.50-carat rocks fell 1.7% last month and 2.9% year-to-date.

"There is good demand for 0.60- to 1.99-carat, F-J, VS2-I1 diamonds. Buyers are insisting on well-cut stones. Polished below 0.50 carats is slow due to excess supply, weak Chinese demand and tight Indian liquidity," the report reads. Related: Is This A Turning Point For Gold?

According to Rapaport, this state of affairs has pushed cutters to operate at lower capacity as they try to reduce inflated inventory, while manufacturers are rejecting high-priced rough stones that have made polished production unprofitable.

"De Beers and Alrosa are carefully managing production and price levels amid this year’s slow rough demand," the document states.

In the view of the firm's chairman, Martin Rapaport, if the trade does not change its business practices and adapt to new realities, the diamond industry will suffer "extreme financial and regulatory disruption."

By Mining.com

More Top Reads From Safehaven.com:

Back to homepage

Leave a comment

Leave a comment