NEW YORK--(BUSINESS WIRE)--The Rapaport Group has today released an important article, “Rough Bubble Bust” by Martin Rapaport. It is available at http://www.diamonds.net/Docs/Alerts/Rapaport_RoughBubbleBust_112415.pdf.
The article details how and why rough diamond prices have been manipulated to artificially high unsustainable levels, and the negative impact this is having on the profitability, liquidity and viability of the diamond trade. The fact that rough prices are significantly higher than resultant polished prices is reducing De Beers’ sales and profits. De Beer’s suspension of purchases and payments for Botswana diamonds is also having a negative impact on the country.
“The rough diamond distribution system is collapsing as De Beers and other mining companies attempt to force unsustainable artificially high rough diamond prices on the diamond trade. Rough prices are higher than polished prices, which have come down to realistic levels due to the downturn in the global economy. The mining company’s refusal to lower rough prices is destroying the diamond trade, creating severe financial losses, illiquidity, supply shortages and the loss of tens of thousands of jobs. De Beers must immediately inject liquidity into the diamond trade by reducing rough diamond prices 30-50%. There is no justification for rough prices higher than polished diamond prices. Without a viable, profitable and sustainable diamond trade distributing their diamonds, De Beers diamond mines are worthless,” said Martin Rapaport, Chairman of the Rapaport Group.
About the Rapaport Group: The Rapaport Group is an international network of companies providing added value services that support the development of fair, transparent, competitive, and efficient diamond and jewelry markets. Established in 1978, Group activities include the Rapaport Price List - the primary source of diamond price and market information. RapNet.Com is the world’s largest diamond trading network with daily listings of over 1 million diamonds valued at more than $8 billion. Diamonds.Net information website, Rapaport Magazine, Rapaport Grading Laboratories, Rapaport Trading Services. The Group supports over 20,000 clients in 118 countries and employs 220 people with offices in New York, Las Vegas, Antwerp, Ramat Gan, Mumbai, Surat, Dubai and Hong Kong. Additional information is available at www.Diamonds.net.