About the Index:
The Zimnisky Global Rough Diamond Price Index was created to consolidate reliable rough diamond price information and publish current respective price changes of rough diamonds on a weekly basis in the form of an index.
Given the highly concentrated state of the diamond mining industry and the relatively opaque nature of rough diamond trading, reliable, easily-assessable indicative rough diamond price information has historically been difficult to source. The intent of the Index is to track, analyze, and disseminate current aggregate rough diamond price fluctuations for use by a range of diamond industry participants.
The proprietary index methodology primarily incorporates price data from rough diamond transactions in the primary market, e.g. sales via long-term contract, tender, and auction by commercial miners. The Index also includes a minor sensitivity to polished diamond prices, given that miners utilize the polished market as a factor when determining contract pricing of rough. In addition, the Index includes a minor sensitivity to stand-alone diamond mining equities, as the relative liquidity that equities provide can imply the current profitability and revenue generation ability of diamond miners, which is directly influenced by the current rough diamond market.
Given the nature of natural diamond production, the variance in quality of stones produced, or the product mix, can impact global rough diamond prices on an average price-per-carat basis. The Index strives to represent as accurately as possible current price changes reflected in the average rough diamond transaction valued on a per carat basis in U.S. dollars. The Index value does not directly represent the price of a 1-carat rough diamond, but the percentage change in the average value of a rough diamond transaction relative to the initial Index value, at a given point in time.
The Index is based on an initial value of 100 using data starting on April 4, 2004. The Index is updated on a weekly basis, typically on Saturday. Retroactive revisions to index data are made on a quarterly basis typically after public miners release official quarterly sales figures.
Discretion is used in the calculation of the Zimnisky Global Rough Diamond Price Index (the “Index”), and thus the accuracy of the Index as a proxy for rough diamond prices cannot be guaranteed. Index information is strictly to be used for informational purposes and is not investment advice. Paul Zimnisky holds zero accountability for any and all financial losses or otherwise from use of the Index.