Venetia diamond mine in South Africa is the largest diamond mine in the country, and also one of the largest diamond mines in the world. It is owned by the world's largest diamond company De Beers with the production of more than 3 million carats per year.
The first few months of 2013 weren't were good in terms of production for Venetia diamond mine because of
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| Rough diamonds. In the last few years there has been a reduction in rough diamond production. |
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.
The long term outlook for diamond market still remains positive even despite certain pointers which suggest slowdown in diamond trade in the first half of this year. The temporarily slowdown might happen because of slow-growing U.S. diamond market, where last year sales were somewhat disappointing.
The rough diamond prices still lack stability and most expect this to last until the second half of the year, of course if global market manages to avoid yet another major recession.
The entire diamond industry wants to see higher rough diamond prices because they guarantee higher profits. The bottom has been passed for rough prices last summer but it will certainly take some time before U.S. market shows higher demand.
The best move to increase the rough diamond prices seems to be restricting their sale, and the final outcome of this tactic will depend on world's largest rough diamond sellers- De Beers and ALROSA.
The growing demand for diamond jewelry in Asian market also gives good long-term outlook for global diamond industry. The rapid growth of Asian diamond marker should also contribute to further growth of diamond prices, both rough and polished.
The fast-growing demand for diamonds in Asia should also give big boost to stagnating U.S. diamond market and lead the global diamond industry to the road of recovery.
The market analysts believe that diamond prices will rise in the next four years, being primarily driven by the strong demand for luxury goods in China, India and Middle East.
Bloomberg analysts predict that the average price of rough diamonds will likely rise 9% to $145 a carat next year, 1.4% in 2013 and 4.8% in 2014.
Since many major market analysts believe that the prices of gold will start to decline with the start of 2013 buying diamonds seems to be the next logical step for major investors, especially as there is an expanding middle class in China and India.
The Middle East diamond market also seems to be expanding. Diamonds were for instance together with gold the most traded non oil goods in United Arab Emirates in 2011, with Emirate traders importing $1.11 billion worth of diamonds through July 2011.
Emerging nations continue to drive the demand for diamonds, both rough and polished. According to the Rapaport Diamond Trade Index the prices of high-quality diamonds have increased 23% in 2011, the highest gain in the last five years, and they are expected to grow even further in 2012.
China and India are expected to account for more than 40% of global diamond demand by 2015. Asian diamond market will grow at a rapid pace, giving investors an almost a safe bet to make profits.
When thinking about diamonds most people turn to the image of exquisite and expensive jewelry but diamonds can be also considered as the investment, especially in times of economic woes like this is the case today.
The diamonds of good and excellent quality will always hold their value so you don't need to worry about losing money on them. This is because diamonds have their unique status and extreme appeal, and these two factors help retain diamond's value.
Diamonds are global merchandise and are therefore not affected with an economic situation in certain region or in certain country. This also means that diamonds can be sold in any country, anywhere in the world, without losing their value.
Another big advantage when investing in diamonds is the fact that there are no maintenance costs. People often prefer investing into the real estate forgetting that real estate has big maintenance costs and is also being taxed. When you look at it from pure economic reasons it makes much more sense to invest in diamonds than real estates. The only actual upkeep with diamonds refer to insurance costs.
However, before investing in diamonds you need to make sure to buy "the real thing" or in other words make sure to first have your diamond appraised by professionals such as GIA (Gemological Institute of America). Diamond appraisal and diamond certificate belong to must to category when buying quality diamonds.
Diamond appraisal and diamond certificate are two completely different things, appraisal just states diamond's worth while certificate has more comprehensive information about diamond such as its color, clarity, cut, weight in carats, shape, dimensions, etc.
Based on diamond certificate jeweler or gemologist can determine the actual value of any diamond.
If you have extra money and plan to make a significant investment make sure to give a thought or two about investing your money in diamonds. Diamonds are a very stable commodity and a nice pick for serious investors.
The US economy is certainly not at its very best but this didn’t cause the stagnation of US diamond market. On the contrary, even despite relatively high prices, there is a constant demand for round, 0.75-carat to 2.00-carat, F-H diamonds.
Fancy colored diamonds are also becoming increasingly popular, mostly because it is very difficult to find enough high end fancies for the richest clientele as they are always in short supply.
Christmas is not that far away and this is traditionally a peak time for diamond sales in United States. It is expected that U.S. retail sales for the Christmas season 2011 could increase by 3 percent compared to 2010.
On the global level there have been several reports about very weak trade of polished diamonds from Belgium, Israel and India because of the extremely cautious economic environment marked by price uncertainties.
China is expecting to see significant sale rise in October 2011 because National Day Golden Week holiday begins on October 1. It is also expected that by end of this year diamonds will experience decrease in prices and this is the main reason why Chinese retail buyers weren't going for large inventory purchases.
The last quarter of 2011 will decide whether the year 2011 will receive good final grade for global diamond industry. Many experts expect it to be better than the previous year but with the global economic uncertainties there is still plenty of uncertainty in the air.
