Oppenheimer says US crisis affecting supply of quality diamonds

Says larger diamonds although consistent in demand
Oppenheimer says US crisis affecting supply of quality diamonds

As reported by the Mining Weekly, quoting De Beers Chairman Nicky Oppenheimer opined about the changes economic scope and the effect it would have on the diamond industry. The US being the larger contributor, accounting for 50% of the global diamond jewellery market worldwide, has affected the overall environment with its recent subprime mortgage crisis. The crisis is leading to cheaper quality of diamonds to flow into the markets in order to fill in the demand gap and address price conscious purchases. The larger and more expensive diamonds although remain unaffected. Of is contribution of the 50%, the presence of lower-quality, cheaper diamonds are a concern but the parallel continuing demand for the better-quality diamonds have helped maintain growth in Asia. He said the world jewellery market is displaying a mixed profile, witnessed by the De Beers’ stores. The Canadian dollar has lowered sales of DeBeers' business in that country while, the weakening the rand in South Africa has helped De Beers, which sells its diamonds in U.S. dollars. Overall, according to Oppenheimer the present economic volatility is not a favourable one.

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