DIAMOND PRICE LAID BARE

6th February 2015 By: Darlene Creamer

DIAMOND PRICE LAID BARE

Diamond price weakness will continue until new sources of liquidity are found, say Liberum Capital mining analysts Ben Davis and Richard Knights. The share price of London-listed Gem Diamonds fell sharply after Petra Diamonds announced it was experiencing weak pricing and the analysts are encouraging investors to look beyond current negativities, given that diamonds have the advantage of being the most consolidated of all world commodities. To soften the illiquidity blow, De Beers is allowing its sightholder customers to defer 25% of their allocation and Alrosa is expected to follow suit.