The new coronavirus also has a negative impact on the diamond sector. The continuing uncertainties about the economic implications have made traders and buyers more cautious.
That causes further price drops, after another bad year in 2019, reports market researcher Rapaport.
Because of the virus, sales in China, where public life came to a standstill in many places, have fallen sharply. This also ensures that manufacturers and dealers are confronted with severe liquidity problems.
Several trade fairs in Hong Kong and Switzerland, among others, were cancelled due to the virus.
The average price for a top-quality diamond of one carat (0.2 grams) fell by 1.6 percent every month in February, according to Rapaport based on the so-called RapNet Index. With “high-end” diamonds of at least 3 carats (RAPI 3), this is a price drop of 3.2 percent.
The sector was already struggling. Among other things, trade tensions between the United States and China and the continuing unrest in Hong Kong did not do the stone sales any good.
On an annual basis, prices fell from 1 March to 9.2 percent (RAPI 1) and 22.3 percent (RAPI 3) respectively.
However, that does not necessarily mean that all stones have fallen in value. Many factors are important when determining the value of diamonds such as colour, weight and the quality of the cutting.