Sadly, the answer is NO. Polished diamond prices are rising. Only rough diamond prices are falling.
Supply of polished diamonds has dropped by 80%. Global retail sales have dropped by only 30%. It is simply SAD: Supply and Demand.
Surat in India polishes 90% of the world’s diamonds and is currently in its 4th Lockdown.
Over the past months, Garry has purchased more than $2 million worth of diamonds to tide us over.
|Rough diamonds are cheaper. Polished diamonds cost more. Which would you rather?|
Articles in reliable news sources note that diamond prices are falling. But that is only true for rough diamonds.
Diamond mining is continuing during the pandemic. But the Indian government stopped importing rough diamonds to protect its banking sector. They want diamond cutters to clear out excess inventory and reduce their bank loans.
The chart from RapNet™ shows prices of polished diamonds have increased recently. Smaller diamonds turn over faster and so it only took a few months for supply shortages and prices to rise.
Holloway Diamonds have projected our needs for the next 6 months and stocked up. We’ve been hiding them in our stash of toilet paper!
What will happen in 2021 will depend on unknowable factors:
- a vaccine could stabilise prices
- miners selling cheap to stay afloat
- more lockdowns causing more price rises
So here is some good news – diamonds are traded in US$’s The Aussie Peso is at a 2 year high! So now is the best time to buy!