Why the Market for Large Diamonds Is in Freefall

Individuals who previously stored illicitly obtained wealth in diamonds are no longer able to do so with such ease, a director of an Antwerp-based diamond company noted "It's [an issue] all over the world, but it's more pronounced here in Hong Kong." There's a direct connection between the compliance challenges and the price of large diamonds, he insisted US sanctions against certain individuals who previously bought diamonds have taken some important clients out of the market, another diamantaire said.

Lucara Diamond Corp., another big-stone specialist, has unearthed 12 diamonds above 300 carats since commissioning new X-ray-transmission technology at its Karowe mine in Botswana in 2015, it reported in April "We've heard from competent people that there are more large, D-flawless diamonds on the market," said Faerber, who noted slower sales by some GemGenève exhibitors due to the situation "Prices of diamonds have been falling so steadily over the last few years that people don't view it as an asset class anymore," he said.

Better marketing is one partial solution, as consumer demand is currently out of kilter with the huge quantities of large diamonds coming out of mines, Dehres's Zion argued. . Source