No doubt the commodities have seen recently a sharp decline in price (do you remember oil at 150 US/bbl and gold at 1.600 US per oz or iron, or copper?). Yes, there are problems brewing in China (perhaps brewing is an understatement in face of the stock markets sharp decrease of the last few days) and Europe stagnates at best (but anyway this was never a major diamond market) and the Middle East is suffering . On the bright side, the US has shown a solid growth.
I have just read a post by Ben Moshinsky at the Business Insider claiming “The price of diamonds is collapsing”. The main arguments used are anecdotal and as such can be easily contradicted, starting a never ending, fruitless argument. I don’t like the use of one sided view “analysis”, pushing a perspective (in this case, the end is coming) as the complete indisputable truth. I would like to see a complete analysis, a broad balanced perspective on available data ; isn’t that what we analysts are supposed to do?
Yes, diamond markets face plenty of threats: synthetics (I have heard about this since I started working in the industry) and stiff competition form other luxury/high end product categories, especially younger generations). Yet, diamonds still holds an allure as a symbol of status and love. Yes, diamond markets will survive and thrive in the future.