If the last years were those of Gold, the decade to come will be the years of the Diamond.
The three main production companies of rough diamond – DE BEERS (South Africa), RIO TINTO ZINC ( Canada) and ALROSA ( Russia) – agree to say that the market for rough diamond was nearly on balance in 2010 with a demand equivalent to the production of about 135 million carats.
The consulting company, Bath and Company, mentioned in their last report that the demand will grow twice as fast as the offer to reach 247 millions of carats in 2020 compared to 175 millions of carats.
The world production increase will not be enough to fill the raising appetite of China, India, the Golf and soon of Brazil for precious stones and more particularly for diamond. The prices are thus going to grow inexorably.
Sergey VYBORNOV, President of the Russian ALROSA Company, is confirming this tendency by considering the explosion of the demand in China and in India (in China because of the fast development of the middle class and the number of millionaires pulling the expansion of the new markets for luxuries). To these markets a strong demand has to be added for the USA, the Golf and, in the years to come, the one to be foreseen in the emerging countries of Latin America like Brazil.
As an example the price of rough diamonds already increased by 29% in 2011. Consequently the prices of cut diamonds is in a sharp increase as indicated by the curve below.
Last minute information: DE BEERS is betting on a diamond shortage and might consequently plan to reduce their production to extend the life lasting of their diamond mines. The impact on the prices would be immediate particularly for the upper quality stones which are mostly investment diamonds.
To invest in diamond as a safe investment
- To invest in diamond presents numerous advantages as a safe investment, for inheritance and for a donation.
- It is the long-term investment which will become more valuable over the years: the diamond is not a commodity for speculation on a short or middle term basis but a real value which is increasing on a long term basis according to offer and demand volumes.
- A diamond investment does not provide an instant income but can add value to the original investment amount.
- The value of diamonds is not bound to that of the currencies: Diamonds are not used to guarantee currencies like Gold do.
- Excellent safe investment in period of disorder, diamond is universally accepted as a bargaining chip and as a hedge against inflation.
- Diamond is a discreet and easily transportable investment. The value compared to the weight is very high since one carat of diamond corresponds to 0.20 gram. The value of a diamond can represent one or several golden bars.
- The investment in diamond does not require any special management. Placed in a safe for security reasons diamonds are durable, unchanging and available at any time.
- What qualities of diamonds should be acquired as investment diamonds ? The selection of the 8 quality criteria. http://www.private-diamond-club.com/content/23-diamond-quality-criteria
- Under what form investment diamonds should be bought?
- Where to buy investment diamonds?
The Private Diamond Club of Antwerp is an expert in diamonds as a safe investment.
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