Falling chinese demand drives diamond prices down

Falling Chinese demand is helping to drive down diamond prices.

Prices for the stones have suffered a sharp decline in China, India and other emerging nations. China's lowering interest is a significant factor in interest overall; it is the world's second-larged consumer of precious stones after the USA.

"Polished diamonds are trading at around $7,100 for one carat of a standard stone on the international market, 5 per cent lower than a year earlier," reports Nikkei.

Profitability among jewellerys and polishers is decreasing, adds Nikkei, althuogh domestic spending is beginning to rebound. Diamond prices are now at a five-year low and, although they rose slightly in 2015, they may drop again in 2016.