To all collectors, to all enthusiasts, to all women who have diamonds on their fingers or ears that are as brilliant as they can’t be: the price of diamonds (and therefore their value) will increase. This was stated in an interview with the weekly «il Mondo», Eli Izhakoff, president of the World diamond council, the organization that brings together the big players in the sector, from Ruth Batson (American gem society) to Robert Gannicott (Harry Winston), Lawrence Ma (diamond federation of HK-China) or Avi Paz (World federation of diamond bourses). The demand for diamonds from India and China will (or rather, is) increase the prices of diamonds. «The diamond communities in Belgium, Israel or New York are not disappearing, but adapting to the new reality, on the one hand, by starting or participating in new production initiatives in countries such as China and Botswana; on the other, continuing to deal with diamonds at home, but focusing on those business niches where they are able to be competitive: diamonds of the highest quality, unique pieces on which the labor cost component is less relevant”, explains Izhakoff in interview. And if the USA remains the first country for purchases of diamond jewelery (over 25 billion dollars), the rich people of Beijing and Shanghai spend 8 billion dollars on solitaires and necklaces. «Demand in Asia is decidedly strong. Furthermore, if it had not been for Asian demand, after the global financial crisis at the end of 2008, the sector would not have recovered at the speed with which it recovered: the sharp decline in the Western European market as well as in North America was compensated by jewelry and diamond buyers from China as well as India. That’s why yes, I think I can say that this new rush for diamonds can be compared to that of the 40s and 50s when a significant portion of societies with high spending power developed in Western countries”, claims the expert. Although, in truth, the price of rough diamonds fell in 2012 and in the first quarter of 2013, it is also estimated by 15 or 20%. Yet De Beers just revised its prices up by 3%. «The fact is that, despite the effects linked to the global recession, all indicators say that any declines will be temporary. in fact, forecasts say that, in the next ten years, the production of uncut diamonds will grow at a rate of around 3% on a global scale. While the demand for processed stones will rise by more than 6%. Thanks precisely to Chinese and Indian demand.
Furthermore, there is Japan: «The Japanese market has lost part of its luster after the golden years between 1980 and 1990, but it has never disappeared: it remains fourth and would indeed have remained in second position had it not been for the amazing growth of China and India, which have brought to the table a population ten times that of Japan.”
But a danger looms over the boom: there are more and more “adulterated” stones. «Treated stones but also synthetic diamonds. The problem is now twofold. Let’s be clear, we are not talking about illegal stones, at least as long as the consumer is aware of purchasing non-natural stones. However, total transparency is necessary at every level of the distribution chain.” In short, buy only if you are sure and with certification.
