TOO MANY DIAMONDS

Otago Daily Times, Issue 21694, 12 July 1932, Page 8

TOO MANY DIAMONDS

The diamond kings of the world are facing a crisis caused by the almost complete lack of a',demand for their wares. More than £8,000,000 worth of diamonds for which no customer can be found lie in the vaults of the diamond merchants of London. The world stocks of unsaleable dianrn..ds total nearly £20,000,000 in value. If they wore dumped on the market to fetch the best price obtainable the slump in price would ruin every jeweller in the world. Sales of diamonds throughout the world in 1931 were smaller than in any year since the war. The normal demand is £12,000,000 worth. Last year fewer than £2,000,000 worth were sold. A famous dealer recently said that in the wonderful vaults of the Diamond Corporation’s offices in Charterhouse street, London, and in certain bank vaults are hoarded more diamonds than have ever been in London before. They arc beipg held there until conditions improve. "It is impossible to describe the havoc that would be caused if these held-up diamonds came on the market, * Ba.ul the diamond dealer. “ I estimate that all diamonds would lose 90 per cent, of their value. Jewellers have at least as many diamonds in stock as the corporation. Their stocks would be almost a dead loss.” The Diamond Corporation controls the output from the South African mines, which have been closed owing to the accumulation of unsold stocks. Diamond exports from Africa, valued at £12,000,000 in 1929. are estimated to have been ns low as f1',300,000 in 1931. There will be practically no production at all in 1932.