Diamond prices in 2012 – Quick info

Despite the overall grim look for world economy in 2012 the prices of both rough as well as polished diamonds should remain firm this year. This is mostly because of the ever-growing demand from China and India, two of the world's fastest growing economies.

This year's macroeconomic outlook for United States isn't as bad as it was in 2011 and many analysts expect that this will result in bigger domestic diamond demand compared to previous year. U.S. consumer price inflation (CPI) in February for the jewelry sector already increased 6.4 percent. In United States, engagement ring and bridal market continues to drive the bulk of consumer activity.

The largest growth in diamond demand is expected in China, especially since Chinese plan to cut taxes on imported luxury items in the second half of the year which will no doubt make demand for diamonds even greater. In China there is currently much bigger demand for smaller and lower quality stones as more first-time buyers enter the market.

According to Goldman diamond prices would increase by around 5 percent for 2013 and 2014 which means that if you plan to invest in diamonds make sure to do it by the end of this year.

Diamonds are still very sought after merchandise and this was quite clearly shown at Basel show with demand for large fancy color and fancy shapes being much bigger than expected.