Mumbai (Maharashtra) [India], October 22 : There is some bad news for diamond jewellery consumers in India and across the globe.
With the extraordinary increase in rough diamond prices by diamond mining firms in the previous nine months due to a prolonged supply scarcity and high jewellery demand, the costs of studded jewellery are projected to rise much further.
Industry sources said the diamond mining companies in the world including the largest players such as De Beers and Alrosa reduced the rough diamond production in the range of 20-25% following the coronavirus pandemic in 2020. Also, the closure of the Argyle diamond mine in Australia—operated by Rio Tinto—which accounted for 10% of the total rough diamond production in the world—dented the supply of the rough diamonds in the world.
In the first nine months of 2021, the shortage pushed up polished diamond prices by more than 10% and rough diamond prices in the range of 10-15%.
The demand for diamond jewellery in the world in 2021 is all set to rise up to 23% year on year, surpassing $90 billion worth of global sales. The two strong diamond consumer markets including China and U.S have seen a strong spike in the appetite for diamonds amind a recovery from the pandemic, which is driving the diamond jewellery sales.
The U.S accounts for about 45% of the global sales of diamond-studded jewellery. The diamond jewellery sales increased 50% in the first nine months of the year compared to the same period in 2019. The Chinese demand for diamond jewellery grew by 10%–China accounts for 20% of the global diamond jewellery sale in world.
The rough diamond supply will continue to be affected in the next decade with the mining companies scaling down their annual targets to keep up with the demand-supply ratio in the world.