Diamond Demand Overtaking Diamond Supply

Published on 10/06/11

Demand for diamonds is overtaking supply, as the world’s major diamond mines cannot maintain historic production levels, and diamond-mining group Petra Diamonds CEO Johan Dippenaar believes that, as a result, a significant supply-demand deficit will emerge.

India-based trade facilitator the Gem and Jewellery Export Promotion Council states in its ‘Export of Gems and Jewellery Items During April 2010 to March 2011’ report that $28,2-million was spent globally on diamond exports during this time, compared with $18,2-million spent between April 2009 and March 2010.

Dippenaar says supply will remain tight as demand continues to grow, driven by the growth of emerging economies, such as China and India.

International network of companies serving the diamond and jewellery markets Rapaport stated in its ‘January 2011 Diamond Markets in Recovery Mode’ report that the polished-diamond trade in consumer markets in China increased by 92% from $300-million in 2009 to $577-million in 2010.