A month ago, diamond prices had plunged by 35% due to excess supply amid weaker exports to the US which is facing recessionary pressures. Dinesh Lakhani, director (global business) of Kiran Gems, the largest diamond manufacturer in India, said, "The inventory has almost been liquidated. The supply-demand position has improved which has pushed up polished prices. The sales of diamonds in the US, though slow, is still moving."
