Gold is skyrocketing – what about the Diamond market?

What is the predictable trend for diamond prices this year and into the foreseeable future?

Let’s look at the data available so far. Diamond rough prices at DeBeers rose 15-17% in June this year. BHP (Canadian diamonds) rough rose 10-15%. Bloomberg published reports that diamond prices are outperforming gold in increases. At the end of March this year, the Rapaport diamond price list, a well- known wholesale price list, increased its polished diamond prices for .50 ct to 3 carat and small diamond prices increased a whopping 20-30%. . Rapaport diamond price lists are increasingly being used as merely a guideline; premium and good quality diamonds sell well over the published prices. Good VS and SI clarity diamonds are up more than 25% over last year.

Even so, the increase in diamond polished prices is not keeping up with rough diamond prices.

Diamond demand is driven by overseas markets in India and China. There will be 11 million marriages in China in 2011 and 10 million in India. Demand for diamonds in India is up 31%, 25% in China and only 7% in the US. Clearly the diamond market is not driven by the North American market. At the Hong Kong jewellery show this spring, diamond traders could not keep up with demand, selling out their entire inventory!

So with global markets in flux, gold and precious commodity prices skyrocketing and demand for diamonds clearly increasing, we can predict even higher prices for diamonds in the future. Demand and foreign markets will increasingly drive up the prices for these rare and precious gems. So if buying diamonds is in your future, sooner is better than later.


Michele La Vie

La Vie Diamonds


Creating Precious Lifetime Memories

www.laviediamonds.com & www.laviediamonds.tel

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