Rapaport plans diamond trading platform to underpin value
The polished diamond market will soon have a price-setting mechanism to put a floor under prices, says chair Martin Rapaport
Diamond miners are dealing with falling prices and demand for their rough product, but dealers are searching for a way to support the value of cut and polished diamonds. Rapaport Group, and its chair Martin Rapaport, specialists in the polished diamond sector, plan to set up a trading platform for diamonds to underpin their value as the Covid-19 virus wreaks havoc on global markets, economies and individuals caught up in unprecedented worldwide response to curtail its spread.
Manufacturers and dealers are facing a severe liquidity crunch as sales to China and Hong Kong have stopped because of the coronavirus. Rapaport repeatedly stressed on Thursday that diamonds are more than just a luxury item, as they are a store of value that could be unlocked during difficult times like the current ones.