[miningmx.com] – THE price of diamonds suffered the biggest quarterly decline in more than two years as banks cut credit to the industry which forced cutters and polishers to sell more diamonds.
Bloomberg News cited data showing that rough diamond prices fell 6.9% in the last three months of 2014 which is the steepest drop since the second quarter of 2012. Diamond prices had advanced 30% in the past three years.
“The biggest thing really is the tightening liquidity,’ Ed Sterck, an analyst at Bank of Montreal told Bloomberg News.
“If you’re a cutter or polisher of rough whose available liquidity is being reduced you’ve got to adjust your inventory. Selling inventory to increase cash has the knock on effect of increasing the supply of polished diamonds.’
Click here to read the full article
