Diamond Veteran Believes Demand-Supply Forecast May Be Overblown

Finance and Trade
22/04/2016 09:51

Diamond industry veteran John Bristow, who has more than 30 years experience in the trade with De Beers and other miners, believes the widely held belief that demand for rough will outstrip supply in the coming years may not come about. Bristow believes the diamond market works efficiently, and that the current over-supply will be replaced by a well balanced market in 18 months, according to a report on miningmx.com.

Despite the fact that there have been no discoveries of large-scale diamond deposits in recent years, he is not convinced that the diamond market will give way to an enormous supply deficit – a long-held view in the sector. “Diamonds are really behaving like most other commodities in their pricing, especially as cheap credit has dried up,” he said of banks reducing their lending to diamond manufacturers.