Demand for diamonds softens
Demands are forever, sung Shirley Bassey 44 years ago. But as James Bond returns to cinemas in SPECTRE, demand for the stones is softening, according to new reports.
The dip in demand has been attributed to both a credit crunch within the industry and falling interest in jewelry in China, the second biggest market in the world. Companies are responding by lowering production levels: for example, Anglo American Plc was relying on diamonds to make up for the shortfall in other assets such as platinum and copper, and has therefore cut production. The company, which owns 85 per cent De Beers, has seen the subsidiary’s output fall from the expected 34 million carats this year to 29 million. De Beers makes up more than one third of Anglo’s earnings.