It may soon be an absolutely fantastic time to purchase diamonds and diamond jewelry since the world’s best known name in diamonds – De Beers – is planning on cutting the prices they charge for their brilliant diamonds.
Apparently this is all due to a mix of diamond production cuts and an increased demand for the precious stones.
De Beers could be reducing prices by up to 9%. Here’s what Bloomberg Business had to say on the announcement.
De Beers and other diamond producers are under pressure to cut supply and lower prices as traders, cutters and polishers struggle to turn a profit amid a squeeze on credit and languishing jewelry sales. De Beers had sought to support the diamond market by reducing production rather than prices.
“The industry is in a very precarious position, it could go either way,” said Kieron Hodgson, an analyst at Panmure Gordon in London. “De Beers have recognized that and responded.”
The industry remains stretched by a shortage of credit after last year’s decision by KBC Groep NV to wind down its Antwerp Diamond Bank, a source of finance for 80 years to cutters and polishers in the port city. Retail demand has also suffered amid a slowdown in China, the second-biggest market for the stones.
This isn’t the first time people have said it’s a great time to buy diamonds. There have been other times where the price of diamonds has caused people to start purchasing more – or at the very least, think about it.
Even back in January, the prices of rough diamonds were falling. Here’s what CNN Money had to say earlier this year:
Here’s what’s going on: Miners like Petra sell rough stones to companies that cut and polish them. But cutters and polishers are starved for cash. And their struggle to access the money they need to pay for diamonds is driving prices down.
So why not take a browse around the internet and pick up a nice piece of jewelry? You deserve it!