The $65 billion global diamond market is reeling. The price of polished gems dropped by an average of 31 percent since an August peak as the worst recession since World War II deterred buyers of luxury items like necklaces and earrings, according to diamond data company www.PolishedPrices.com. Antwerp, the world’s biggest gem trading hub, has seen exports drop as much as a third. De Beers, the largest diamond producer, slashed output by 91 percent.
People are not buying earrings, bracelets, things they can do without if they want to tighten their belts, they are still buying rings for weddings, engagement.
Wholesale diamond prices have dropped about 20 percent to 25 percent from their highs around June last year.
At the cheapest end of the market, Internet retailer Amazon.com Inc. is selling a platinum ring with a 0.5-carat diamond for $1,675, down from a list price of $3,425. The gem’s clarity is SI1 or SI2, meaning there are slight defects that normally can’t be seen by the naked eye.
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