The price of diamonds is finally coming back down to earth
The price of diamonds has the significant long-term impact on the luxury watches industry. After the major increase in diamond prices, during 2011, the price of diamonds finally decreases this year. According to the research group Rapaport, the price for one-carat diamonds dropped 13.7% in June, and the overall drop in prices during the first half of the year mounts up to 3.6%, while recording the sharpest fall in late May and throughout June.
The fall in the price of diamonds spreads all over the diamond market, which is typically less prone to the price fluctuations than any other market. Data analyzed shows that the asking price of diamonds has also dropped in June, and that the prices for one-carat certified diamonds fell 1.6%, prices for 0.3 carat diamonds fell by 1.2%, while the prices for half-carat diamonds fell 1.4%.
The reasons behind this market change most probably lay in the slowing demand in Far East and India, which is linked with monetary changes on Indian market and the recent fall of rupee. The banking crisis in Europe and hazy global economy are also affecting the prices. Of course, it is possible that the market simply corrects itself after the extreme increases we saw last year.
Author: Marina Milojevic
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