Editor’s Note
As gold reaches record highs, market attention is shifting to diamonds. Analysts warn that raw diamond prices could surge by up to 40%, potentially triggering a sharp rise in the cost of finished jewelry. This article examines the factors behind this anticipated rally and its implications for consumers and investors.
Following the surge in gold prices, the sparkle of diamonds is also set to intensify. Due to global bullish trends, the prices of gold and silver have currently reached all-time high levels. Now, there are concerns that diamond prices may also see a sharp rise. It is believed that in the coming days, the price of raw diamonds could increase by nearly 40 percent. If this happens, the prices of finished diamonds and diamond jewelry could also see a significant spike.
Jewelry enthusiasts may now be forced to limit their hobby. It is important to note that currently, the global demand for raw diamonds is 8 to 8.5 million carats per year. However, on the supply front, only 7 to 7.2 million carats of raw diamonds are currently available. In such a situation, the price of raw diamonds has already increased by up to 35 percent in the last 6 months. It is believed that over the past 20 to 25 years, the extraction of raw diamonds has accelerated significantly, which is why most diamonds have already been extracted from mines that previously yielded them. Now, extracting diamonds from these mines requires more effort and money.
Currently, Zimbabwe holds the world’s largest remaining diamond reserve. This is only because, due to restrictions by the World Diamond Council, Zimbabwe’s diamonds are banned from being sold in the international market. According to one estimate, Zimbabwe has such a large diamond reserve that its mines could yield 1.5 million carats of raw diamonds annually.
A shortage in the supply of raw diamonds could also create a crisis in countries like India. India holds the top position globally in diamond cutting. Surat handles the largest volume of diamond cutting work in the world. Experts say that if the supply of raw diamonds decreases, its price could surge even more, which could lead to a sharp increase in the price of finished diamonds. Additionally, a shortage in the supply of raw diamonds could create an employment crisis for people engaged in diamond cutting work.
