Tuesday, March 17, 2015
The middle market suffers liquidity constraints.
Compared to other commodity markets, the diamond sector has fared reasonably well recently: the price for rough stones has oscillated around 145 dollars per carat (ct) on average in 2014, with little volatility. In December and January it plunged, then partly rebounded in March, currently standing at 132 dollars per ct. For De Beers, one of the global leaders in this sector, 2014 marked the third-best annual revenue of the past decade. While most commodities depend on growth projections in emerging countries, nearly 70% of diamond demand remains sourced from developed markets, where the diamond sector focuses on brand awareness.