Will retailers respond to weakness in the market by reducing diamond prices to consumers? Jewelers in South Africa approached by the Mineweb site were keeping mum on whether they have benefited from lower prices and if so, whether they would pass those reductions onto consumers.
"Lower retail prices could certainly help reduce inventory levels, thereby giving prices some much needed support. Although about 135 million carats of diamonds were produced by miners around the world last year, consumer demand and the value placed on diamonds is still firmly driven by their perceived rarity. So if you are buying diamonds this festive season, go big. After all, PriceScope data shows only the average prices of large, rarer stones from 4 carats to 99 carats have held up, currently trading 30 percent higher than their recessionary lows."