RBC Capital: Diamond Prices to Decrease 10% by 2010
October 26, 08
Predicting “disappointing” Christmas sales in the U.S., RBC Capital Markets lowered on Friday its diamond price forecast by 10 percent for the next two years.
“Diamond prices will remain under pressure for at least the next 12 months,” Bloomberg quoted the brokerage firm.
According to the IDEX Online Average Polished Diamond Price Index, prices decreased 1.6 percent in the past 30 days after declining 0.5 percent in September. On an annual basis, however, prices increased 10.9 percent.
Despite the gloomy RBC forecast for the diamond industry, the global polished diamond markets were “a relative oasis of calm and tranquility amid a roiling sea of turmoil,” said IDEX Online analyst Ken Gassman.
The decrease in prices in the past two months occurs against the backdrop of yo-yo global stock and commodities prices.