Japan's Polished Diamond Imports Hit Record Low

Japan imported $36.42 million worth of polished diamonds in August, a 20.6 percent decline compared to August 2008. August is traditionally the country's slowest month of the year in terms of polished diamond imports, and this year was no different. However, this was the first time that imports fell below $45 million a month in over a decade.

The low imports, the lowest in at least 11 years, came just as Japan voted out the long ruling Liberal Democratic Party (LDP), as the country is looking to chart a new course, including an economic one. Not only that the country has been suffering from a decade long recession, it has also lost its taste for diamond jewelry.

In terms of volume, the decrease in imports was 21.8 percent year-over-year, dropping to 138,548 carats at an average value of $262.84.

India, source of 114,993 carats (-16.1%) worth $20.2 million (-10.9%), was Japan's leading supplier of diamonds with 83 percent of the supply by volume and 55.5 percent of imports by value.

Imports from China and the U.S. grew dramatically compared to last year, rising in value 40.4 percent and 63.9 percent respectively.