De Beers: Rough prices to continue to rise

We publish courtesy of: National Jeweler

 

Mumbai–Diamond Trading Co. (DTC) Managing Director Varda Shine told Reuters that rough diamond prices will keep climbing in 2011 due to increased demand from the world’s largest diamond-consuming market, the United States, as well as a growing desire for diamonds in India and China.

But prices won’t climb as steeply as they did in 2010, she said. De Beers previously reported that rough diamond prices shot up 27 percent last year after a significant decline in 2009 due to the global economic crisis and subsequent drop in demand.

In the same interview, Shine, who heads De Beers’ rough sales and marketing arm, said that diamond jewelry demand in the United States is expected to increase a modest 5 percent this year as the employment situation improves and the American economy resumes growth.

In the world’s second-largest market for diamond jewelry, Japan, demand is expected to decline slightly as the nation struggles to recover from the devastating earthquake and tsunami that ravaged it last month, she said. Increases in demand for diamond jewelry in China and India are expected to balance out any declines in Japan.

Shine also noted that demand for rough is expected to outpace supply in the next five to 10 years due to the lack of new mine finds and continual growth in India and China.

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