Source: CCTV.com

10-10-2008 12:39

Despite booming sales in gold, demand has not spread to other luxury products. In fact, they seem to taking their share of a battering from ailing global markets. Diamonds, for example, are seeing a slide in demand.

Diamonds are seeing a slide in demand.

According to an analyst from the Royal Bank of Canada demand from the United States, Europe and Japan accounts for seventy percent of the total market for diamonds. And shrinking demand in these countries means it is now a buyer's market for diamonds. Prices are set to fall by more than 20 percent.

Meanwhile, the processing industry for the sparkling gem is also seeing soaring debt. Now at 15 billion euros, that's three times the figure from just 8 years ago. And the future seems equally bleak a survey in the United States suggests that consumers with annual salaries of more than 100 thousand US dollars are now cutting back on how much they spend on luxury items. And that, unfortunately, includes the budget for jewelry.

Editor:Xiong Qu