Diamond prices fell over 2016, with sales down too in the last quarter
The average price of three carat diamonds fell 8.5% and one carat diamonds 5% over 2016, diamond trading company Rapaport said in its monthly report released on Tuesday. Diamond sales suffered in the fourth quarter following Indian Prime Minister Narendra Modi’s move on November 8 to eliminate high-value bank notes as part of a drive against corruption. "The policy wiped out an estimated 85% of currency in circulation, denting orders from local jewelers. Domestic Indian demand slowed as smaller dealers and manufacturers adjusted to the new laws, while larger export-focused manufacturers were relatively unaffected," Rapaport said. India’s move to eliminate 500 and 1,000 rupee notes from circulation contributed to the average price of half carat diamonds falling 4.8% and one carat diamonds falling 3% over the fourth quarter. But three carat diamonds appeared immune to India’s cash crunch, rising 1.4% over the quarter.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.