Rough Diamonds Prices Rise

The rise of the rough diamond price in recent weeks may cause those who are interested in diamonds as jewelry to become a bit alarmed.Could such luxury items such as the New York Citys Algonquin Hotels new drink, Martini on the Rocks, which includes the diamond of the drinkers choice being added to the martini after it has been made, be raised even further in cost than its already hefty price of $10,000 as the rough diamond price goes up?Could the rough diamond price increase also affect the cost of the diamond price of the average stone purchased for a wedding ring, or engagement ring?

Price Impact On The Average Consumer

While the rough diamond price may be on the rise, it not certain to have much affect on the polished diamond price in the marketplace.This is evidenced by the recent acquisition of large alluvial diamond areas in South Africa by the Company Rox Resources Limited.The companys director has stated that the purchase has been made with confidence of the mining of large tonnage of diamonds and the high diamond price that diamonds have historically held.While this might seem to point to a rise in the polished diamond price, what must be understood is that the buyers of the polished diamond market are fully aware that the growth of the polished diamond market is predicated on the current low polished diamond price.

Why Has The Rough Diamond Price Has Gone Up Then?

The DeBeers Diamond Trading Company (DTC) is the largest diamond company in the world, and has grown accustomed to setting market diamond price.In an effort to retain this control, the DTC has raised the rough diamond price in the beginning of this year, as they did in 2004.The problem that the DTC has overlooked this year, as should have been seen last year, is that there are so many more small diamond traders, a much larger system of small suppliers, and more direct mining competition on their own turf, such as the Rox purchase, that the DTC no longer can make the demands that they had been accustomed to once upon a time.To put it simply, the polished diamond price will not go up precipitously this year, as it did not in 2004, simply because the fragmented diamond market will not allow it.They will not allow an increase in polished diamond price simply because the DTC has temporarily raised the rough diamond price.Competition on the world market has ended the reign of the DTC in calling the shots on diamond price.

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