THE DIAMOND TRADE.

Hawke's Bay Tribune, Volume XIII, Issue 199, 8 August 1923, Page 5

THE DIAMOND TRADE.

RUSSIA COVETOUS. SOUTH AFRICA AFFECTED. Amsterdam. July 24. Diamond merchants are greatly concerned on account of a threat which is being levelled at the trade generally by the Russian Soviet Government. It has been known for the last few years that very large quantities of precious stones had been seized by the Bolsheviks from the Royal Family and late members of the aristocracy. It has been impossible up to the present to form any idea of the sum of money represented by these seizures, as it is not known how many of the emigres succeeded in getting their jewellery out of Russia.

£85,000,000 IN DIAMONDS. Information is now to hand that the Soviet Government holds diamonds alone to the value of £85,000,000. which it is anxious to turn into cash. The diamond market is so bad to-day that De Beers who control the world’s sup51y, have long ceased to mine any more iainonds in South Africa, relying sole-, Iv on stocks to supply the very small demand which exists. The possibility that the Soviet will launch all these precious stones on to the market is causing something in the nature of a panic, for the present value of the diamond has only been kept up by very judicious manipulation of the markets on the part of De Beers. If these diamonds suddenly flood the world the value of the stones will drop very considerably. The Soviet Government is reported to have put a pistol to the head of De Beers, who are the most interested people, giving them the opportunity of buying if they wish to preserve the fictitious value. Th© alternative proposal is causing the panic. Well-informed men in the diamond trade here are of the opinion that De Beers will be forced to meet Russia in this matter, as the quantity of the stones held is sufficient to swamp the world for many years, and render their control a very unprofitable undertaking. A prominent merchant who has just returned from Kimberley, says that conditions there are very bad indeed. De Beers* works having closed, thousands are thrown out of employ ment.