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Independent diamond industry analyst and consultant Paul Zimnisky has published a report on global rough diamond prices in the 10 years since the global financial crisis.
Paul Zimnisky said “this year marks 10 years since the onset of the global financial crisis. In 2007 the first signs of a collapsing sub-prime mortgage bubble in the U.S. were seen, although rough diamond prices were not impacted until the fall of 2008, just shortly after achieving record high prices in summer 2008. As the global economy crashed, rough prices bottomed out in the beginning of 2009 before making new all-time highs in the summer of 2011, highs that have yet to be retested.”
Over the last decade the diamond industry has been wrought by historically high volatility. A surge in demand for diamonds from the economic and social liberation in China along with other emerging economies that consequentially benefited, was followed with overt speculation by industry players that left the industry oversupplied when the growth tempered. Banks lending to the industry consequently reigned in liquidity, some leaving the business altogether, further exacerbating the situation.
The upstream segment of the industry responded by curtailing supply, reducing prices, implementing a marketing campaign and increasing transparency attempting to restore profitability and confidence to its customers and their lenders. The proactive response by the miners showed signs of success as industry-wide inventories returned to more normal levels and supply/demand balanced. However, just as the recovery was underway India demonetized its highest denomination
bank notes, directly impacting the largest base of manufacturers in the industry.
“Today the diamond industry continues to navigate internal challenges, such as the advancement of lab-created alternatives, with an arguably more challenging structural backdrop of generational shifts in consumer preferences. However, the inherent allure of diamonds has existed for centuries, and the resilient diamond industry has an impressive track record of survival,” said Zimnisky.
The report in its entirety can be viewed here: www.paulzimnisky.com/10-year- quarter-by-quarter-recap-of-rough-diamond-prices-since-global-financial-crisis
About Paul Zimnisky Diamond Analytics:
Paul Zimnisky is an independent analyst and consultant, and publisher of the imnisky Global Rough Diamond Price Index, specializing in global diamond supply and demand. His work has been used globally by institutional investors, management consulting firms, private and public corporations, governments, and universities. More information can be found at www.paulzimnisky.com.
Disclaimer:
The views expressed in this report are strictly that of Paul Zimnisky and are based solely on observations, discretionary analysis and opinions. Paul Zimnisky has made every effort to ensure the accuracy of information provided, however, accuracy cannot be guaranteed. Information in this report is strictly for informational purposes and should not be considered investment advice. Consult your investment professional before making any investment decisions. Paul Zimnisky does not accept culpability for losses and/ or damages arising from the use of content in this report. Third party use of content in this report is only permitted with the permission of Paul Zimnisky.
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