Positive price forecast for diamond: still the best investment

  • A price decrease?
  • Supply and demand
  • Strong price/quality ratio of BNT Diamonds

A price decrease?

In the period 2012 – 2015 the diamond price decreased by approximately 9 percent. The American credit rating agency Moody’s explained this decrease partially by the declining growth of new economies such as India and China. The delay of investments from private investors in that period resulted in less orders for polished diamonds, creating an oversupply on the producer side. This oversupply lead to the implementation of a price decrease by a. o. De Beers, the biggest diamond producer, to compensate loss in turnover. Other producers were forced to follow this trend to be able to compete on the international market.

Supply and demand return to balance

After a difficult 2015, the industry registered a slight recovery in 2016. As the supply decreased, the diamond prices stabilised. Rapaport, the branch organisation for the diamond industry, reported an increase of 1.4% in the 1 carat GIA-index in the first quarter of 2016, a trend that continued last year. Those who invest in diamond at the right moment, will make the best investment.

De Beers and Alrosa expect the demand for diamond will already exceed the supply in 2017 and 2018 with respectively 1% and 2%. This shift in supply and demand will create a significant supply shortage by the end of 2018. The economic consequence is a price increase within 6 to 12 months, when the supply shortage will become concrete on the producer side.

A price increase (with certain volatility) is expected for rough diamond in 2017. After which in 2018 a substantially upward price movement is foreseen.

Strong price/quality ratio of BNT Diamonds

BNT Diamonds is based in Antwerp, at the world centre for diamond trade. Already for years, we buy our diamonds directly at the source. Thanks to our extensive expertise and unique philosophy regarding price/quality ratio we are the ideal partner for the best investment in diamond. For more information, contact us.

Read more:


Author: Daan Deruyter
Source: BAUNAT

With this article, BAUNAT strives to inform you thoroughly about investing in diamonds. No investment can be guaranteed to be without risk or fully according to your expectations. That is why we recommend to research the risks and aspects of investing in diamond properly to ensure that you make the right choice for your portfolio.


Most popular