Diamonds no longer a girl's best friend? There's been a drastic decline in global sales
Diamond prices have fallen by 18% since its peak in February 2022.
Pink diamond on pile of white diamonds. Image: 123rf.com
Motheo Khoaripe speaks to Peter Major, mining expert & director of mining at Morden Corporate Solutions.
Listen to the interview in the audio player below.
Diamonds sales in South Africa and globally have experienced a decline recently.
According to the Global Rough Diamond Price Index, rough diamond prices have fallen 18% from their peak in February 2022.
The precious mineral is currently at 6.5% lower for the year-to-date.
The diamond industry experienced an upsurge during the COVID-19 pandemic, largely due to people having extra cash to splurge on luxury items such as jewelry.
Things have however gone sour, with the likes of diamond company De Beers reporting lower rough diamond sales in the last few years.
Speaking to Motheo Khoaripe on The Money Show, Peter Major, mining expert & director of mining at Morden Corporate Solutions says people can no longer afford to spend money on expensive items.
He says there's more of an interest in other minerals such as gold and copper.
"The average citizen, he's probably never been as rich as he was back, i think it was in the early '70s. That was when the purchasing power parity of the average American peaked." - Peter Major, director of mining - Morden Corporate Solutions
"Diamond production is at a near all-time high, but sales are not near an all-time high, and the prices are definitely not near an all-time high." - Peter Major, director of mining - Morden Corporate Solutions
"...not like you're seeing in gold and copper, and other metals and minerals that people have a much higher desire for than diamonds." - Peter Major, director of mining - Morden Corporate Solutions
"I think they're a girl's best friend, as long as she doesn't have to pay for it. That's the problem, not enough men are willing to go out there an pay the prices it takes to make a lady happy." - Peter Major, director of mining - Morden Corporate Solutions
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