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The rising price of diamonds

21 November, 2014 10:29

The price of diamonds has risen enormously over the past few months. This can be explained by the following graph, showing the declining Euro to Dollar rate.

Because diamonds are traded worldwide in American dollars, a decline in the Euro to Dollar rate also increases the prices of diamonds for the European market. Thus, the graph below shows that as the euro falls, the prices of diamonds increase.

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