THE DIAMOND
MARKET
Market Information
Few big companies regulate the production process and control the increase of price in the long term.
The market quotations of the main diamond mining companies. There are three main companies that hold 70% of mining market:
The Anglo-American (the majority share owner of De Beers), Al Rosa and Rio Tinto.
Where diamonds come from
Diamonds can be especially found in some Earth regions, in unknown and wild places that hide beautiful treasures.
The most important diamond mining countries are:
The natural diamond, the hardest stone in the world, has a lot of applications beyond the jewellery. 80% of mined diamonds are used to create utensils for cutting and/or abrasive ones and only 20% of them have the required characteristics to become a gem or a jewel.
Rough Diamonds Offer
Several mines that currently provide 29 million carats per year, will be completely depleted by 2030.
Real Previsions
Producers’ previsions are always too optimistic compared to reality. The graphic shows: actual rough diamond production VS announced plans in the last years, in millions of carats.
Where is the added value created?
Natural diamond production has a long added value chain, that is completed in the last phase when diamond jewels are sold:
- The mining amounts to 14,8 billions of dollars;
- Cutting and polihing amounts to 20,7 billions of dollars;
- Indeed, jewelry retail amounts to 72,1 billions of dollars.
Rough Diamonds Demand
The diamond jewelry market leads the growing demand for rough diamonds in the USA, China and India.
Global Demand 2016, Polished Diamonds
The growing demand for diamonds
6 pillars:
- Economic growth of global GDP;
- Wealth growth in China and India;
- Increase in advertisement investments by the main diamond producers;
- Increase in on line jewels purchases;
- Increase in buying diamond jewels by women;
- Diamond is used as engagement ring everywhere.
Growth of the middle class’ purchasing power in the East and in the West
Demand/Offering Balancing
Mid-term prospects highlight a growing demand for rough diamonds between 1% and 4%, it is based on firm basis, especially in the USA and the growing middle class in Asia. Significantly, China and India are adapting themselves to the Western style and uses.
On the contrary, the diamond offer should remain stable tending to a decrease in the long-term.
The growing demand on the offer, in addition to the mines closures, will lead to a very strong increasing of natural diamond prices and to production of synthetic diamonds.