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.
Rough Diamonds Offer
Several mines that currently provide 29 million carats per year, will be completely depleted by 2030.
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.
Global Demand 2016, Polished Diamonds
The growing demand for diamonds
- 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
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.