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What’s hot in the world of diamonds?

Published by MarlowsDiamonds at Apr 08, 2022
What’s hot in the world of diamonds?

Here at Marlows, diamonds are what we do, so here is a round-up of some of the most important news in the diamond industry over the past couple of months. The Global Diamond Report 2013

The third annual report from Bain & Company (in association with the Antwerp World Diamond Centre) on the global diamond industry has been released. This year's report looks closely at the diamond value chain and trade diamonds' route to market.

A few of the keys points include:

The next four years will see a reasonably balanced market for rough diamonds.

After that, supply is expected to decline as mines get depleted.

Mining companies are likely to focus on operational excellence and investing in technology to improve productivity.

There will be a growing demand for diamonds with more and more companies and individuals investing in mining assets and cutting and polishing operations.

There may have been somewhat of a decline in the rough diamond market recently, but we've seen sales grow, enabling us to go from strength to strength over three generations. We have plenty of optimism in the diamond value chain and expect our business to grow even further. Synthetic stones are not seen as any true competition to us as we believe the experience of purchasing and owning a diamond is special in customers' hearts. The quality lasts a lifetime and the tradition to hand down diamond jewellery through generations still remains.

Investors likely to turn to diamonds

In addition to the Bain & Company report, an assessment of the diamond market by Citigroup Global Markets suggests that the diamond industry might be a strong choice for financial investors in the coming years.

This is because of a decline in production from mines in Russia and Canada and an increase in demand from China thanks to the development of a habit by engaged Chinese couples to buy diamond rings. Stats show that 62% of engaged couple in Shanghai now buy diamond rings compared to 33% in the 1990s.

There was a steep fall in gem prices in 2011 but it is believed that prices are beginning to stabilise.

Another reason for prices levelling out could be due to the melting of the De Beers stockpile. De Beers essentially acted as a monopoly in the industry for much of the 20th century, drip-feeding diamonds into the market, but this practice has now ceased. However, it's predicted that this has reduced a so-called 'buffer effect' on the industry so when a shortage in mined diamonds occurs, the price will likely be forced upwards.

This supports our belief that the diamond experience is precious, and should production decline further, diamonds will become even more treasured. Now is definitely the time to be buying diamonds, both for investors and at a retail level. Diamonds are still a girl's best friend.

This month we read a blog that suggested that a diamonds' worth is nothing but a marketing ploy and that they aren't worth as much as people pay for them. We couldn't disagree more. Aside from the fact that mining diamonds is an incredibly laborious process with literally tons of of dirt moved per single carat, and that only around 1 in 15 million diamonds is 3 carat, the fact remains that much of the value of the diamond is also placed in how much it is loved by the individual. It's a treasured memory, no matter how much it ages or how much it cost.

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