Cut back the supply of rough diamonds on the worldwide market.
That’s the message the World Federation of Diamond Bourses (WFDB) is putting out to diamond mining companies.
WFDB president Avi Paz said the move is needed to safeguard the industry and the value of diamonds from the economic crises.
“In this period of economic uncertainty, the stability of the world diamond industry is of vital importance to the world economy and to the international banking system,” Paz said.
“The quantity of rough diamonds that is marketed worldwide greatly affects the stability of the industry, and in particular the industry’s global bank debt. Mining companies can enhance stability at this point in time by reducing the volume of rough diamonds they are supplying to the market. Such action is imperative and necessary not only for the diamond industry, but also the rough-producing countries, the global banking system, and the diamond mining companies themselves.”
During tough economic times, diamonds are seen as an investment. However, too much supply can devalue them, creating further turmoil in the industry.
The WFDB has 26 member diamond bourses around the world.
