Analysis and Studies - Products analysis
Diamonds Industry Analysis
December 20th 2021
The diamonds industry was impacted too by the Covid-19 pandemic, and data demonstrate this. Predictions also point out that such consequences will be seen in the years to come.
As it may be guessed, lockdown measures made it difficult for artisans to work on the cutting and polishing of the diamonds; at the same time, the known supply chain slowdown and border closures contributed to the suffering of the industry.
As it could be predicted, luxury goods during pandemic suffered drop in demand, which brought considerable drops in sales. Significant data are reported below:
India, considered to have the highest concentration of polished diamonds, saw raw diamond imports fall to $1 million in April from $1.5 billion in February. Polished diamond exports also fell by 26% year on year (from $2.18 billion in August 2018 to $1.64 billion in August 2020).
Then, the RapNet Diamond Index (RAPI) shows that the price of one-carat diamonds was down 13.1% year on year, and the cost down 9.5%.
In African countries the situation is even worse. As of April 2020, exports had almost ceased in Guinea, with diamond exports falling dramatically to 39,494 carats in the first quarter of 2020 from around 270,000 carats in the first quarter of 2019. Cameroon had likewise not exported any diamonds since the lockdown began.
Zimbabwe saw a 50% drop in price, instead, mostly due to the fact that regular purchasers no more had money to buy. Exploitative and opportunistic buyers aroused, which purchased the goods at a low price and would resell them at higher price once pandemic is over.
Having said this, it may be a risk to engage in a relationship with a business that operates in this industry. For some aspects, as well, it can be a great opportunity, above all with an eye on the future.
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