RAPAPORT... PRESS
RELEASE, November 24, 2015, New York … The Rapaport Group has today released an important article “Rough Bubble Bust” by Martin Rapaport. It is available at
http://www.diamonds.net/Docs/Alerts/Rapaport_RoughBubbleBust_112415.pdf.
The article
details how and why rough diamond prices have been manipulated to artificially
high unsustainable levels and the negative impact this is having on the
profitability, liquidity and viability of the diamond trade. The fact that
rough prices are significantly higher than resultant polished prices is reducing
De Beers sales and profits. De Beers suspension of purchases and payments for
Botswana diamonds is also having a negative impact on the country.
“The rough
diamond distribution system is collapsing as De Beers and other mining
companies attempt to force unsustainable artificially high rough diamond prices
on the diamond trade. Rough prices are higher than polished prices, which have
come down to realistic levels due to the downturn in the global economy. The
mining company’s refusal to lower rough prices is destroying the diamond trade,
creating severe financial losses, illiquidity, supply shortages, and the loss
of tens of thousands of jobs. De Beers must immediately inject liquidity into
the diamond trade by reducing rough diamond prices 30-50%. There is no
justification for rough prices higher than polished diamond prices. Without a
viable, profitable and sustainable diamond trade distributing their diamonds,
De Beers diamond mines are worthless,” said Martin Rapaport Chairman of the
Rapaport Group.
Rapaport
Media Contacts:
media@diamonds.net
International:
Gabriella Laster
+1-718-521-4976
U.S.:
Sherri Hendricks
+1-702-893-9400
India:
Manisha Mehta
+91-97699-30065
About the Rapaport Group: The
Rapaport Group is an international network of companies providing added value
services that support the development of fair, transparent, competitive and
efficient diamond and jewelry markets. Established in 1978 Group activities
include, the Rapaport Price List - the primary source of diamond price and
market information. RapNet.Com is the world’s largest diamond trading network
with daily listings of over 1 million diamonds valued at more than $8 billion. Diamonds.Net
information website, Rapaport Magazine, Rapaport Grading Laboratories, Rapaport
Trading Services. The Group supports over 20,000 clients in 118 countries and
employs 220 people with offices in New York, Las Vegas, Antwerp, Ramat Gan,
Mumbai, Surat, Dubai and Hong Kong. Additional information is available
at
www.Diamonds.net.