'Revenge spending' and supply reduction could save diamond industry: analysts

Image credit:  Tiffany


(cbc.ca) - The last thing the global diamond market needed as prices finally began to rebound in January after a dismal few years was a global health pandemic. Health and travel restrictions have forced a number of the world's largest diamond mines to slow production. The Ekati mine in the Northwest Territories suspended operations on March 19, becoming the world's largest producing diamond mine to close because of the pandemic. As the world braces for what some predict will be a global recession, discretionary spending could drive the demand for diamonds down even further, and bring the North's resource-dependent economy with it. But diamond analyst Paul Zimnisky says he has hope the industry will rebound by the end of the year.