Polished diamonds prices fell 8.7% in 2014
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Polished diamond prices fell in 2014 as demand in China slowed and liquidity dried up, with polished 1-carat prices dropping 8.7%, according to the RapNet Diamond Index (RAPI).
For the year 2014, 0.3-carat diamonds also declined 6.5% and 3-carat diamonds dropped 6.6%. Only 0.5-carat diamonds increased, by a marginal 0.1%.
In December, 1-carat laboratory-graded diamonds fell in price by 1.1%, 0.30-carat diamonds dropped 3.5% while 0.5-carat diamonds declines 1.8%. Price for 3-carat diamonds fell 2% during the period.
Rapaport said that reduced bank credit, tight profit margins due to high rough prices, and grading delays at the Gemmological Institute of America (GIA) all contributed to squeeze cash flow among manufacturers.
The report also pointed out that banks reduced their credit to the industry and are demanding more stringent reporting and business practices from the trade.
Rapaport said inventory levels remained high across the diamond distribution chain in December and polished suppliers lowered their prices in an effort to increase turnover and raise cash.
