Diamond market would almost double by 2020
A bright future for the diamond industry fuelled by the ongoing appetite of China and India for the gem, predicts Boston-based Bain & Company. In its latest report, “The Global Diamond Industry – Lifting the Veil of Mystery,” the company predicts a growth of more than 6 percent a year over the next decade, which would hold up prices even through periods of volatility and could be supported by additional demand for diamonds as investment.
According to Reuters, the supply-demand is more than favourable to producers, but concerns do exist:
Some are already fretting that the difficulties in securing new supply – only about 1 percent of kimberlite pipes discovered to date have been economically viable – could make the price of diamonds too high, forcing consumers to look at alternatives.
The diamond industry has been on the news extensively over the past month due to changes such as the exit of the Oppenheimer family from De Beers after almost eight decades, and last week’s BHP Billiton’s announcement that it is reviewing its diamond business, which includes two large diamond mines in northern Canada, for a potential sale of all or parts of the business.