Indian Diamond Industry Has A Good Holiday Sales SeasonJanuary 04, 11
The shortage of polished is a factor that worries some, however. One insider noted that rough diamond inventories in India were probably much higher than that of polished diamond.
The lack of skilled labor is still a main cause to the low production and until there is a major restructuring in the wages the industry pays, this labor shortage is going to persist, the source said.
An added factor is that with the rise in prices in the Rapaport list, sellers are more inclined to hold on to their goods as they foresee stronger prices in the near future, given the persisting shortages.
With the holiday season over, however, demand will also slack off and industry watchers say it remains to be seen what the composite effect of all these factors is on polished prices in the weeks ahead.