Diamond demand to climb 4.5% this year — De Beers
De Beers, the world's largest diamond miner by market value, expects global demand for polished gems to rise by up to 4.5% this year, boosted by the US market recovery and an ever growing appetite for these precious stones in China and India.
Chief executive Philippe Mellier said despite the still frail state of the global economy, demand for diamond-based jewellery continues to grow.
"The largest global market for diamond jewellery is the United States and everyone knows they are taking off again," he said in an interview with AFP.
Several of the company’s latest decisions seem to signal De Beers is also bracing for a rough diamond demand rush. In January, the firm said it has not ruled out an expansion of its Victor diamond mine in Canada. In March, the firm —majority-owned by Anglo American (LON:AAL)— revealed it was looking to tap into the new markets, landing later a new diamond exploration license in Angola, the world’s fourth largest producer of diamonds by value, and sixth by volume.
De Beers is not the only one tooting the industry’s own horn. World’s largest diamond producer Alrosa is also anticipating a big jump in gems pricesdue to both reduced production in the medium term and increasing demand.
Rough diamond prices have, in fact, climbed 3% over the last few months and Bain & Company and the Antwerp World Diamond Centre (AWDC) predict prices for the gems will continue to increase at least until 2018.
Image by Africa Studio.