Recent studies project a further increase of the diamond prices for the coming decades. This anticipated price increase is mainly triggered by the combined effect of favorable supply and demand trends:
Increasing demand in emerging markets such as India, China, Brazil and Russia
These newly developed countries are characterized by an exploding economy and prosperity, resulting in the creation and/or extension of a social layer: middle class. The rapidly growing middle class and their growing purchasing power have a direct upward effect on the pricing of diamonds on the world market.
Decreasing supply due to limited natural resources and a depleting mining capacity
The global mining of diamonds strongly decreases in comparison to previous years. For the current operational diamond mines, it’s certain that the operating costs will structurally increase, because exploitation and digging activity is forced to descend to deeper layers. And if new diamond mines would be discovered, operating costs will be higher, due to the fact that these new mines will be most probably located in hardly accessible geographical areas.
In conclusion, due to this favorable supply and demand trends, diamond prices are most likely to increase over time.
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