Martin Rapaport (Rapaport Group) released a comprehensive editorial entitled “Market Correction” that calls on the diamond trade to end unsustainable business practices, pointing at internal rather than external challenges as the main cause for the current state of affairs in the diamond industry. Citing the imbalance between high rough and low polished diamond prices, Rapaport calls on the banks, explicitly referring to the Indian government and banking sector, to stop financing unprofitable diamond manufacturing until polished prices rebound and profitability returns.
He urges the trade to prioritize the purchase of polished diamonds over rough, thus supporting polished prices and at the same time reducing the amount of new polished entering the market. In a response to recent Indian and Israeli companies listing their diamonds on RapNet at full Rapaport List prices, Rapaport encourages the industry to promote confidence in diamonds by supporting competition among buyers who provide transparent, firm bid prices.
Miners are advised to lay low and reduce pressure on the market, but Rapaport also warns that they should realize that strangling their customers and bypassing the middle markets will backfire in the long-term as they won't be able to sell their diamonds in the future.