Excess capacity of manufacturing infrastructure, plus excess capacity of manufacturing, plus excess capacity of financing, minus production demand, equals price of production decline! This is the rule we need to remember, as it not only applies to today’s diamond market - it is also a rule to live by.
As stated here time and again, an excess of bank financing leads to both excess in rough diamond buying and excess in manufacturing capacity. The combination of these with apparently a lack of caution on the part of several manufacturers led us to where we are today.