Africa
Diamond prices firm as Dubai banks fill funding gap
Gem Diamonds expects firm prices this year after they rose at its first auction of 2015 last week.
A model holds an 8.41-carat pear-shaped internally flawless fancy vivid purple-pink diamond at Sotheby's auction house in central London September 29, 2014. REUTERS/Stefan Wermuth
By Silvia Antonioli
After a 4 to 5 percent decline in prices late last year, Gem Diamond's prices for its larger diamonds rose by 4-5 percent at its first auction of 2015 last week, Elphick said.
"The first sale this year has been very encouraging," he added. "It's too soon to say that the prices are rising again but we are seeing a firmer market than we had anticipated."
He is more optimistic than he was last month, when the company said weakness in diamond prices could continue into early 2015.
"I think it takes a while for the liquidly situation to improve and diamond manufacturers are mostly family companies who require some time to switch bank," Elphick said. "But this is resolving."
(Editing by Susan Thomas)