Monday, July 13, 2009
Diamonds Market
Overall Market
Global natural rough diamond production is estimated at around 160 million carats and US$12 billion per year at present. Rough (uncut) diamonds fall into the broad quality groups of gem, near gem and industrial. Typically, gem and near gem diamonds are used in jewellery whereas industrial diamonds are used principally for cutting and grinding purposes. Gem-quality diamonds account for over 80% of the value of the world diamond market.
Antwerp is the world's largest diamond trading centre with other key centres including Mumbai, Johannesburg and Tel Aviv. It is estimated that approximately 80% of the world's annual production of rough diamonds is under the control of the De Beers Group and other major diamond producers including Rio Tinto Group, BHP Billiton Group and Alrosa Group.
The Current Market
The diamond market has been less prone to the cyclical price fluctuations typical of many commodities, due both to its retail product nature and the domination of the market by De Beers, which has aimed to preserve an orderly market for diamonds through adjusting supply in times of over-production or economic recession. Since the Second World War rough diamond prices have shown an overall upward trend, with gem and near-gem diamonds generally showing the greatest increases.
The world production of diamonds in 2005 was estimated to be a total of approximately 160 million carats with around 70% of these being gem or near gem quality. In 2003, world demand for rough diamonds (US$9.5 billion) exceeded supply (US$8.2 billion), with the excess demand being satisfied from producers' existing stockpiles. This continuing excess of demand has lead to constant increases in diamond prices.
It is generally believed that the fundamental problem affecting the diamond market remains the low rate of replenishment of diamond resources. Despite more than US$500 million in diamond exploration spending in 2005, which is double that of 2002, there are currently no world-class discoveries to be turned into mines in the next 5-7 years. Fresh resources are running out and prices are increasing accordingly.
The projected shortfall in production versus demand has resulted in difficult trading conditions in the rough diamond market, and record price increases. Over the last three years, uncut diamond prices have risen by about 50%. The Diamond Trading Company or DTC, the sales arm of De Beers, raised its prices by 5% in August 2004; 3% in January 2005, then another 3% in June 2005 resulting in prices for 2005 being on average 9.5% higher than in 2004.
Global natural rough diamond production is estimated at around 160 million carats and US$12 billion per year at present. Rough (uncut) diamonds fall into the broad quality groups of gem, near gem and industrial. Typically, gem and near gem diamonds are used in jewellery whereas industrial diamonds are used principally for cutting and grinding purposes. Gem-quality diamonds account for over 80% of the value of the world diamond market.
Antwerp is the world's largest diamond trading centre with other key centres including Mumbai, Johannesburg and Tel Aviv. It is estimated that approximately 80% of the world's annual production of rough diamonds is under the control of the De Beers Group and other major diamond producers including Rio Tinto Group, BHP Billiton Group and Alrosa Group.
The Current Market
The diamond market has been less prone to the cyclical price fluctuations typical of many commodities, due both to its retail product nature and the domination of the market by De Beers, which has aimed to preserve an orderly market for diamonds through adjusting supply in times of over-production or economic recession. Since the Second World War rough diamond prices have shown an overall upward trend, with gem and near-gem diamonds generally showing the greatest increases.
The world production of diamonds in 2005 was estimated to be a total of approximately 160 million carats with around 70% of these being gem or near gem quality. In 2003, world demand for rough diamonds (US$9.5 billion) exceeded supply (US$8.2 billion), with the excess demand being satisfied from producers' existing stockpiles. This continuing excess of demand has lead to constant increases in diamond prices.
It is generally believed that the fundamental problem affecting the diamond market remains the low rate of replenishment of diamond resources. Despite more than US$500 million in diamond exploration spending in 2005, which is double that of 2002, there are currently no world-class discoveries to be turned into mines in the next 5-7 years. Fresh resources are running out and prices are increasing accordingly.
The projected shortfall in production versus demand has resulted in difficult trading conditions in the rough diamond market, and record price increases. Over the last three years, uncut diamond prices have risen by about 50%. The Diamond Trading Company or DTC, the sales arm of De Beers, raised its prices by 5% in August 2004; 3% in January 2005, then another 3% in June 2005 resulting in prices for 2005 being on average 9.5% higher than in 2004.
Tuesday, July 7, 2009
Pear-Shaped Sapphire Ring in Platinum
Two stunning pear-shaped sapphires, set in elegant platinum, make an ideal setting for your choice of center diamond.
Nouveau Ring and Band in Platinum
This classically crafted platinum engagement ring setting and matching wedding band feature sparkling pavé-set diamonds that elegantly highlight your choice of center diamond.
Six-Prong Ring in Platinum
This six-prong platinum setting is designed to beautifully complement your choice of center diamond.
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