Background information about the profitability of diamonds

The below data & figures are the result of extensive market research & financial analysis provided by Bain & Company and the Antwerp World Diamond Centre (AWDC). These data & figures confirm the anticipated price increase for diamonds.

Depleting mining capacity

It's unlikely that a significant new deposit will be discovered and commercially developed in the next ten years. The best and easiest deposits have already been found. The last major mines were discovered more than 20 years ago.

In total, explorers have sampled fewer than 7,000 kimberlite pipes worldwide. Of all these finds together, only 15% have held diamonds and just 1% (about 60) have held enough of them to justify building a mine. If a new mine should be build, know that it takes up to 13 years to start the production of a mine.

Worldwide jewellery demand

During the past decade India and China became the largest jewellery markets.

The GDP per capita, a reliable indicator of the demand for diamonds, supports the previous statement. The GDP growth is strongest in China and India, and these countries are considered as the driving forces for the worldwide diamond
consumption in the coming years.

Middle class is expanding rapidly in both China and India, with a corresponding increase in demand for diamonds.

Millennials have not yet reached their peak spending years, while baby boomers have moved beyond theirs. Diamonds have a very positive image in this generation.

In short

Natural diamonds are a finite resource that require enormous effort to mine. It is very unlikely that a new, economically viable supply of diamonds will be discovered. Aside from depleting supply, the demand for diamonds is expected to rise due to the growth of developing countries and the coming of age of the millennial. Both factors create a very positive outlook for the diamond industry. This does not mean that an investment in diamonds entails no risk. As for all commodities, the value of diamonds can change over time due to socio-economical changes. However diamonds have shown a great ability to recover and have proven to be very crisis resistant.

Next step : step 2 History of diamond prices
Contact our experts For more information