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by Will Purcell

The diamond and specialty minerals stocks box score on Friday was a poor 75-110-115 as the TSX Venture Exchange fell nine points to 886. Rough diamond prices, unchanged last week, continue to form a clear top according to Paul Zimnisky's global rough diamond price index. Prices are about 0.5 per cent lower than their multiyear high, set during early August, pointing to an end of the big rally that pushed them 40 per cent above a 12-year low set at the nadir of the COVID-19-induced lockdown of the diamond sector in early spring of 2020.

Of course, veteran diamond investors will recall the heady days of early 2011, just after the Great Recession, when prices bubbled upward amid surging demand and limited supply. Prices are still about 15 per cent below that peak, as supply quickly caught up to demand and the 2010s were largely a lost decade with slowly sagging rough prices, despite rosy predictions to the contrary. (While diamond promoters are again their ebullient selves, their overenthusiastic price escalators, evident for the past 15 years in economic studies, have yet to reappear.)

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