Diamond Dealers See Falling Rough Prices


June 18, 2001

Diamond Dealers See Falling Rough Prices

Concerns among diamond dealers about falling rough diamond prices increased last week as sightholders reported prices for some ranges of larger rough sizes were cut by 5% at last week's sight, or diamond sale, the Financial Times reports. In addition, Ascorp, the company with sole marketing rights to Angola's diamonds, lowered its prices by 5%. Argyle, which mines Australian diamonds, and BHP, which mines Canadian diamonds, are both under pressure to lower rough prices as well.

Demand for diamonds has slowed in the last few months due mostly to the U.S. economic slowdown and uncertainties about the effects of the recent changes at De Beers. Prices have already fallen for most sizes of polished diamonds, but until recently, rough prices remained stable.

- by Julia M. Duncan