Diamonds, Fine Wine Hit by Global Slowdown

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Aug. 18 (Bloomberg) -- On today’s “Single Best Chart,” Scarlet Fu examines luxury items hit by China’s anti-corruption policies. She speaks on “Bloomberg Surveillance.” (Source: Bloomberg)

Luxury goods has spread to the highest quality diamonds and fine wines.

If we call it up, you can see the purple line tracks fine wine prices.

Down about 31%. the white line, the price for top quality diamonds down.

The yellow line, lower quality smaller diamonds.

It has rallied over the past two years.

The reason why, one reason, chinese government policies aimed at discouraging ostentatious behavior.

If you are one of the 87 million communist party members, you are careful about what you buy.

Now, you only get polished diamonds.

A polished diamond is not the highest quality grade.

Something that needs to be dressed up a little bit more.

China is the second largest diamond market.

China overtook france as the number one market for fine wines.

Is diamonds the be all, end all?

Gold and jade are traditionally the preferred gems over diamonds.

They are trying a marketing campaign to encourage people to look at diamonds in the same way americans do.

Is this a quirky observation or does it state to some sort of larger comment about luxury?

You cannot flow capital out of china and what they would do is consume things that presumably had valuable -- add value.

Interesting.

Speaking of stores of value, he has been stored in the ecuadorian embassy.

Julian assange, i have lost track how long he has been hiding in the four walls of the embassy.

That is a lot of watching of

This text has been automatically generated. It may not be 100% accurate.

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