Diamond days are over as Petra slows mining warning prices for the gems have swung even lower
Petra Diamonds is unsure how many gems it will be able to mine this year and warned prices have swung even lower.
The group, which has mines in South Africa and Tanzania, has ditched its previous production guidance of 3.8m carats.
It is in the process of winding down its operations to a minimum in South Africa, where a three-week lockdown began on Thursday to halt the spread of coronavirus.
Celebrity sparkle: Kylie Jenner models diamond necklaces. Petra Diamonds said prices were ‘severely depressed’ and claimed a number of buyers were putting in low, ‘opportunistic’ bids
It had to close its most recent diamond auction three days early.
It said the prices were ‘severely depressed’ and claimed a number of buyers were putting in low, ‘opportunistic’ bids.
Petra warned last month the coronavirus outbreak had hit demand in China, which is a huge market for diamonds.
The industry is struggling with a toxic cocktail of oversupply, an economic slowdown in China even before the pandemic, and social factors such as falling marriage rates, which all mean there are more diamonds in the market than people want to buy