The Enduring Allure of Diamonds
Each diamond is unique – a gemological marvel formed billions of years ago under extraordinary heat and pressure.
The hardest natural substance on earth, diamonds signify the ultimate. For centuries diamonds have been used to mark the most important moments in people’s lives. Celebrating meaningful moments – emotion, gratitude, attachment, commitment, love. Diamonds are universally admired, appreciated and desired.
The modern diamond market grew out of the major diamond mine discoveries of the 1870s in South Africa and was effectively managed as a monopoly up until 2001. Today, Russia, Canada and Botswana are the world's top three diamond producing countries by value respectively. 99% of natural diamonds are used in jewelry, with only 1% used for industrial purposes.
2010 Diamond Market Overview
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International diamond jewelry market is large, amounting to nearly US$60 billion annually at retail with growing demand in emerging markets, particularly in India and China where the custom of giving engagement rings is increasing rapidly. |
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China is expected to become the world’s largest luxury market between 2014 and 2016. |
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Diamond jewelry demand in India is expected to reach US$6.1 billion by 2012, a 50% increase compared to the 2010 $4.2 billion market. |
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Demand for rough diamonds, and therefore their pricing, is based on pull-through from demand for the polished stones used in jewelry. |
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World demand for rough diamonds is expected to exceed world supply, leading to increased prices. |
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The world’s major diamond mines are moving to the end of their productive lives. |
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No new major mines in pipeline: Generally new discoveries take between seven to 10 years to reach production and currently no significant new supply of diamonds is expected to reach world markets over the next 10 years. |
| Sources: |
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IDEX 2009 Diamond Pipeline |
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Boston Consulting Group- China’s Luxury Market in a Post-Land-Rush Era |
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GJEPC-KPMG – The Global Gem and Jewellery Industry – Vision 20 |
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2009 Kimberley Process Scheme |
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