Dont Let Your Diamond Engagement Ring Come As A Nasty Surprise

Published on 04/05/10

Online retail jeweller Diamond Manufacturers warns that double digit growth in rough diamond prices could send jewellery prices sky high.

The diamond industry is very volatile where supply and demand is concern as there is hardly stability between the both. This creates a situation with either too many goods in the market with not enough buyers, or - the current and most frequent situation - a lot of buyers but not enough goods for a fifth of these buyers. When this happens, diamond prices skyrocket.

A lack of bank lending led to a stagnation in the trade in rough diamonds, which are typically bought by sight holders and manufacturers on credit. Since March 2009, however, rough diamond prices have risen by 55-60%, helped by many suppliers cutting production by as much as 50% in response to the credit crunch.