What does the global diamond market look like? | BNT Diamonds

Who owns the largest diamond production globally?

22 Jul 21
  • What did the diamond market look like in the past?
  • How did it change over the years?
  • Which evolutions will the diamond market undergo in coming years?

For many, world famous diamond giant De Beers is still synonymous to total control over the diamond market. The diamond world, however, is constantly evolving. How did the market function in the past? What does the future hold?

What did the diamond market look like in the past?

For the bulk of the 20th century, De Beers reigned free in the global diamond industry. In the late 1800’s, Cecil Rhodes started the company in concert with the Central Selling Organization, now the DTC, with exclusive rights to suppliers. It gave them a large advantage over other diamond merchants, and one they would keep for a long time. Even though De Beers’ monopoly was subject to a lot of criticism throughout the years, it was responsible for the iconic position diamond holds today.

The establishment of the Russian Alrosa in 1992 and the opening of many new diamond mines across the globe ended De Beers’ monopoly for good.

How did it change over the years?

The 1990’s formed a crucial tipping point for De Beers. The fall of the Soviet Union weakened collaborations with Russia, as did the establishment of Alrosa. Around the same time, the Australian Argyle mine, the largest producer of coloured diamonds globally, left the De Beers group. New mines in Canada owned by other diamond industrials offered a new source of diamonds outside of De Beers’ control. Their market share plummeted from 85% to 65% and kept shrinking.

Even though De Beers is still one of the world’s leading powers in the global diamond market, it seems unlikely that they will ever regain their former position. With 23,8% of global diamond production, they now follow market leader Alrosa, which takes first place with 29%.

Diamonds mining and production

Which evolutions will the diamond market undergo in coming years?

For coming years, experts consistently predict increases in the global diamond production. Not only growing economies and increasingly affluent middle classes contribute to the appreciation, the use of diamonds for industrial purposes is also on the rise. As a result, experts predict a yearly production of 143,8 million carats by 2025, a staggering 9,8 million carats more than in 2017. And although the large Argyle mine is set to close in 2020, the diamond industry is constantly exploring new mining opportunities.

How can I invest in rare coloured diamonds? Which diamonds match my portfolio? Contact the diamond experts at BNT Diamonds for your perfect investment.

Fabienne Rauw
About Fabienne Rauw
BNT Diamonds Antwerp

Fabienne, manager of the German market is able to guide every client with finding the right jewel. She takes care of most of the German orders, but also takes other task on her plate. Thanks to her six years of experience at BNT Diamonds she acquainted well with the product and the marketing around it. Her degree in PR ensures that BNT Diamonds is well presented across all media channels. For anyone looking into a new investment opportunity, Fabienne is the perfect guide in this process. No question will be left unanswered, and she will help you every step of the way.

With this article, BNT Diamonds 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.