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    Apr 09

    untitled-101.jpgThe prices of diamonds are frequently driven by the clarity, color and weight of the stone. Round diamonds seem to have become more valuable in just the last few years. Consumers who are purchasing diamonds with an eye toward investment will find that round diamonds may be an excellent investment in the coming years. In addition, consumers who have purchased round diamonds in the past may want to have their stones re-appraised in order to make sure they have an appropriate amount of insurance to reflect the changing values of round diamonds.Round diamonds are not the only types of diamonds which may soon see a price increase. In the last few months the prices of rough diamonds have increased. Statistics indicate that the prices of rough diamonds have increased by an average of 10% over the last year. For larger diamonds, those which are more than one carat, the increase is even greater. In some areas, the prices for larger rough diamonds have increased 30% or more. One of the reasons for this is the fact that the demand for diamonds larger than one carat has grown beyond the demand for ‘average’ size stones.

    Since the price of any good, including diamonds, is driven by supply and demand, the prices of such diamonds have been on the rise. There has been a strong increase in consumer wealth in countries like China, Russia and India recently as well as an increase in the demand for large diamonds. As some of the older diamond mines around the world are beginning to reach the end of their production lives, the combination of supply and demand have led to the increase in prices of diamonds.

    Exploration and the production of kimberlites in Canada has increased over the last ten to fifteen years; however, even these large deposits do not seem to be sufficient to keep up with the overwhelming demand for large diamonds around the world.

    China, in particular, is leading the demand for diamonds. Many believe that the increase in marketing tactics along with more of a Western influence in the country has led to the rise in demand for diamonds across China. In the past, diamond rings had no place in the Chinese wedding culture but that has definitely changed in the last few years. Estimates indicate that diamond wedding rings comprise approximately one-third of all diamond purchases in China; a number which has already grown by an astounding number in the last year alone. While just a few years ago almost no brides were married in China using diamond wedding rings, today approximately 40% of all women in China are presented with diamond wedding rings.

    It is estimated that this number will only increase in the coming years as more and more Chinese brides begin to yearn for the significance of a diamond ring when they are married. Hong Kong, in particular, has become the scene for a rising demand for diamonds in Asia. As is the case with most trends in Asia, the popularity of diamonds is expected to continue fanning out across the continent.

    untitled-121.jpgThe rise in the demand for diamonds is not limited to China. There has also been a strong increase in India as well, where the growth rate has exceeded 25% in the last year. It is believed that the prices of diamonds will continue to increase through 2015 as the demand for diamonds continues to rise around the world, especially in countries where diamonds have traditionally not held a strong role. The rise of the middle class in India combined with the fact that diamonds are increasingly coming to be viewed as a status symbol in India, has largely led to the growth of the demand for diamonds in India.

    The rise in diamond prices is not necessarily bad news for consumers. While a piece of diamond jewelry may cost more today than it did even a year ago, the fact that diamonds are increasing in value means that consumers are able to enjoy a lovely piece of jewelry as well as the knowledge that they are purchasing something that is a good investment.

    Historically, jewels have appreciated at about the same rate of inflation as money. While other types of luxury items have a decided shelf life, that is not the case with diamonds. The marketing line that a diamond lasts forever really is the case.

    The rising prices of diamonds have even led to some speculation that diamonds may be coming back as exchange traded instruments. Although it has been some time, this would not be the first time that diamonds were traded.
    As the supply of diamonds continues to become scarcer as the demand for diamonds continues to heat up, it is expected that diamonds will continue to be a good investment.

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    One Response to “Prices for Diamonds on the Rise as World Demand for Diamonds Increase”

    1. Esta Says:

      I would like a ballpark figure as to the price of a high quality, good color and life, good depth 2.50 carat diamond platnum set ring would have cost in 1968? thank you for your answer

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