Rough diamond prices have to fall sharply for the middlemen who connect mines with jewellery stores to stay in business, a leading commentator on the market has warned.
Martin Rapaport, chairman of the Rapaport Group, which provides pricing information to polishers, cutters and traders, said: “Rough diamond prices have to come down by something very significant, like 20 or 30 per cent, to inject profitability into the middle market,” he said. “If you kill your customers, you’re not going to have a business.”
He accused De Beers, one of the world’s largest suppliers, of “milking the cow and not feeding it”.