
The Great Diamond Glut: Miners Stuck with Gems Worth Billions - dpflan
https://www.bloomberg.com/news/articles/2020-06-07/the-great-diamond-glut-miners-stuck-with-gems-worth-billions
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peter_d_sherman
>"The five biggest producers are probably sitting on excess inventories worth
about $3.5 billion, according to Gemdax, a specialist advisory firm. The
figure could reach $4.5 billion by the end of the year, or about one-third of
annual rough-diamond production.

“They’ve tried to restrict rough-diamond supply to protect the market and
protect value,” said Gemdax partner Anish Aggarwal."

Observation: What the diamond producers are doing, that is restricting supply,
in an effort to keep prices high, seems to be a pattern that occurs across
multiple economic domains.

For example, banks sometimes sit on large amounts of empty houses that they
won't currently sell -- that is, until the appropriate market demand (and high
enough prices) are present to justify those sales...

