Recent figures suggest that the market for diamond jewellery in the near future is expected to be driven by increased growth in India, China and the Gulf.
These emerging Eastern markets have demonstrated significant growth in the past few years, with diamonds proving increasingly popular as both a luxury item and a long-term investment.
By 2015, it is predicted that India, China and the Gulf will equal or surpass the market share of the US, which currently stands at 35 to 40 per cent. In 2010, India and China were already up 31 and 25 per cent respectively.
However, with worldwide reserves of diamonds at an all-time low, this new growth in Eastern countries means the balance between supply and demand is set to become more mismatched than ever; forecasts warn that demand is likely to outpace lower levels of diamond supply for many years to come.
With diamonds only getting rarer, it’s likely that the value of diamonds will continue to ascend on a global scale in the same way that gold and silver prices have already, increasing the natural treasure’s worth in the long term.
Although diamond prices have already begun to reflect the imbalance between supply and demand, the view that diamonds are an ‘investment vehicle’ that has the potential to grow – or at least remain the same – means customers are continuing to buy.
When compared to the inflated prices of gold, diamonds also – for the time being – pose a more affordable alternative in an unsteady economy.
It is yet to be seen how the rising value of diamonds will affect the production and/or prices of popular jewellery brands, popular in both the East and West, which feature diamond-encrusted pieces in their collections. For now, however, fans of Pandora jewellery and the like need not worry.
Visit the Jewel Hut, one of the UK’s leading jewellery websites, today to view an extensive collection of diamond jewellery.