Rough diamond supply

The effects and causes of the decreasing rough diamond supply.

25 February 2016|Diamonds Investment

“There haven’t been any new big mines discovered during the past 20 years and the current mines are all ageing. So when we look at the next 10 years, there’s no doubt demand is going to outweigh supply” – Varda Shine, former CEO of De Beers Diamond Trading Company (DTC)

In 2013 there were 3 major diamond sources: first there is ‘the Orapa mine’ in Botswana and ‘the Marange field’ in Zimbabwe. These are the largest sources in terms of value of carats produced: actually USD 1.9 Billion. Further, there is ‘the Argyle mine’ in Australia, which is the largest producer of Natural Fancy Color Diamonds.

99 Percent of all mined diamonds are used for industrial purposes and only 1 percent is good enough to be used for retail jewelry.  Unfortunately the current mines are all ageing, and there haven’t been any new big mines discovered during the past 20 years, which means that the supply of qualitative diamonds is decreasing.

In contrary to the decreasing supply, the demands are growing intensively, especially in China and India. This is why analysts say there’s no doubt that demand is going to outweigh supply.

The scarcity of the diamonds will not only drive demand for jewelry, but also demand for investment in diamonds. Investing in diamonds features many benefits for an investor: as a tangible asset, it carries an unmatched concentration of wealth. This is why it is very important to learn more about this interesting trend.

Van Eyck Jewelry hosts many presentations about investment in diamonds in different forums. Last week we collaborated with ‘IP Global’, an international luxury property management. If you would like to know more details about or next seminar, don’t hesitate to email us at info@vaneyck-jewelry.com.

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