Jul 292012
 

I posted a comment a few months back about diamond prices dropping, based on the official RAP price list.  We are seeing that prices are continuing to drop, which is bad news for diamond sellers.  The amounts of the drop that we are seeing is not massive like you might see on the stock market but a few % drop here and there do add up in the diamond trade.

A diamond that a few weeks ago may have traded for $5,000 might now be $4,700 today.  In times like this a lot of dealers just keep their inventory close to them, refusing to sell due to the loss they will incur if they do sell.  You see this type of thing int he stock market also, where sellers who own a stock fall in love with it and never sell – as they ride the price drops all the way to the bottom.