Price weakness in precious stones
Diamonds - recovery possible in 2013
Diamonds are also covered by the general turmoil in the commodities markets. The medium-term trend is positive, however.
Diamonds are also the investor's best friend?
In gold or silver, it is very easy to determine the price per ounce, it establishes the stock market problems. For diamonds, the situation is more complicated and complex. The price depends on the size of the stones, the color of purity, from the ground and on various other factors. So you can not just say that one carat will cost a certain sum. However, one can make a difference if it is cut and polished diamonds or rough diamonds.
In particular, the cut stones are currently suffering under the market conditions. They are widely regarded as a symbol of wealth and luxury. These are two properties that meet in the current market situation is not requited love all over. According to the market currently shows a clear price weakness as demand remains too weak.
The pricing of the polished stones is based on the short-term situation in China and India. For example, in China gifts of any kind just put under the microscope, because there are always a suspicion of corruption. Here you have to wait, how do the authorities. In India, stressed the weak rupee business. In recent months, the rupee has lost 15 percent of its value. The importation of diamonds make them expensive, this leads to a limited demand. In addition, especially those suffering from the diamond dealer situation, have accumulated the debt in U.S. dollars.
The next Prices vary greatly, but also the behavior of large diamonds from Alrosa and De Beers corporations. Depending on how they bring their production to the market, there may be an oversupply, which would push prices even further, or to a renewed rise in the price, if the companies cut back their offerings. The youngest diamond auctions of industry giants ran slow, buyers did not have as much interest as before.
For the experts at RBC, the price weakness in the diamond sector continue until 2013. This is the sector in the short term on the negative side. In the medium term, however, analysts are bullish set. One expects a recovery in demand from China and India, which can drive the market. If the market start, the supply of rough diamonds soon become scarce - with corresponding consequences for the price.
