Diamonds Lose Their Lustre, For Now

At a time when consumers are under lockdown and economic operations are limited to what have been deemed essential, there is no room for luxury. A reality reflected in the current state of the diamond industry.

- David McKay

In a world boiled down to “essentials”, it’s easy to see why the anguished cries of celebrities “trapped” in their multi-million-dollar holiday homes has become faintly risible, deeply contemptible at worst.

So, too, the need to indulge in luxuries. Even were your local jewellery store open for business, it would seem somewhat off-message to be paddling down there to participate in a bit of high-end retail therapy.

That’s why the world’s diamond sector is back where it started 2019: in the doldrums.

Mines are largely closed, or on limited production schedules, while stockpiled rough diamonds are gathering dust in the workshops of India’s Gujarat region – which cuts and polishes 80% of world production – following lockdown restrictions imposed by Prime Minister Narendra Modi.