Diamond demand on the rise
CAPE TOWN (miningweekly.com) – The demand for diamonds is set to continue increasing this year, with demand outstripping supply and no new discoveries on the horizon, delegates at the Mining Indaba heard this week.
“There’s no significant rise in production and that will affect diamond pricing,” said Fusion Alternatives CEO Adam Schulman.
He noted that the diamond industry had been in transition over the last decade, shifting from a supply-controlled to a demand-driven industry, with no new world-class discovery having been made in the past decade.
Schulman said demand growth had exceeded production growth and stockpiles had diminished to minimum working levels.
“Short-term rough diamond price instability over the next six months will be caused by liquidity constraints within the diamond pipeline. This could present an opportunity for savvy investors,” he added.
Global demand for diamond jewellery had trended upwards since 2009, with strong demand in China, India, the Gulf and Turkey.
A boost in Internet sales of diamonds had also given the industry a new shine, with a steady increase in demand for global retail diamond jewellery. Schulman expected supply to be steady over the next few years.
Schulman, whose company specialised in diamond tenders, said the tender system was having an effect on the markets by giving noncore producers the opportunity to reach markets they were not able to before.
He added that the diamond market was very solid, with standardised acceptable pricing mechanisms becoming a lot more sophisticated and transparent.
The long-established trade of polished diamonds in centres like Mumbai, Amsterdam and New York had been supplemented by growth over the past decade in secondary “screen markets”.
An interesting and growing development had been the boost in recycling of jewellery, which was popular in India and the US.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation