The head of a
diamond trading group has said that the downturn in the economy of
America, the world’s top consumer of
diamonds, may exacerbate his members
debt burden and he welcomes a move by
De Beers to trim supply in the coming months.
Avi Paz, president of the
World Federation of Diamond Bourses, recently issued a statement asking diamond producers to reduce supply during the current economic turmoil to stabilise the sector. He appreciated the action taken by diamond giant De Beers, which controls around 40 percent of the market, to cut back the amount of unpolished
gems at its next two sales due to reduced demand.
He also said that De Beers were obligated to buy the
unpolished diamonds on offer at periodic sales. However in the current economic climate, they might find it difficult to sell all the processed material to
jewellery makers and end up with
increased debt burdens .
Link to this page
Copy and Paste the following HTML into your page.
