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Annual Report and Accounts 2011

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The Diamond Market

Although current economic uncertainty may continue to impact on diamond pricing in the short term, there is a positive long term outlook for the rough diamond market due to inherent production constraints which suggest that supply will struggle to keep pace with demand.


Many of the world's major diamond mines are in decline and cannot maintain previous high levels of output. Whilst some new mines are coming on stream in the next few years, there is nothing of significant size to make up for this shortfall and there have been no important new discoveries since the early 1990s.

Meanwhile, demand for diamonds continues to rise, in both established and new markets. The fastest growing new consumer markets for diamonds are China and India, both of which are recording double digit growth year-on-year.

Market facts:

  • Diamond market performed very strongly in FY 2011 – prices reached all-time highs in H2; since Period end, rough prices have adjusted downwards due to global economic uncertainty
  • Robust market underscored by firm retail demand, causing shortfalls in certain categories
  • Liquidity in pipeline continued to improve in FY 2011 and added further confidence to rough market
  • Exceptional growth seen in prices of smaller gem diamonds in line with trend to use them across luxury goods, especially watches
  • Global diamond jewellery market grew +8% in 2010
  • US remains dominant market accounting for 38% of worldwide consumption
  • China and India continued exceptional growth in 2010, up +25% and +31% in local currency respectively
  • Far East (China, Hong Kong, Taiwan, India and Gulf) expected to account for ~40% of global demand by 2015

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