Diamond prices fell in March as the spreading coronavirus led to a dramatic decline in the global economy, the Rapaport Group reported.
Diamond markets are under pressure and facing a severe liquidity crisis as jewelry retail, diamond manufacturing and trading shut down.
The RapNet Diamond Index (RAPI™) for 1-carat diamonds dropped 6.8% during the month and 8.7% in the first quarter.
Prices slumped amid slowing demand and increasing supply, Rapaport reported.
Manufacturers bought large volumes of rough between December and February, anticipating strong inventory replacement after a good US holiday season.