(
I-Canada-News.Com, June 14, 2013 ) Ontario, Canada --
Mercantile Diamond Group, Inc. looks at the diamond market with the following executive summary as explained in the Rapaport Magazine.
"Global demand is growing at a pace we have never seen before," says President of De Beers.
Diamond investors have a lot to be confident about these days, while the rest of the world is in turmoil. Especially with Rio Tinto’s recently released market research spanning across the industry’s news circuits including an important industry forecast from the President of De Beers, the legendary diamond company.
It’s not a question anymore if there is a true diamond shortage in the world. The real question is how long can current supplies keep pace of the current global consumption?
Global Demand Will Outpace Supply
As the world’s diamond supply depletes, for both Natural Fancy Colored and White diamonds, demand for diamonds continues to soar, especially from emerging markets in China and India. This increase in demand and restricted supply has industry players and opportunists sounding the alarms.
“Global diamond demand is forecasted to be growing at a pace that we have never seen before,” said Varda Shine, the Chief Executive Officer (CEO) of the Diamond Trading Company (DTC), driven by growth in Asia and coupled with tighter supplies in the absence of any new big diamond mines.
“When we look at the next ten years, there’s no doubt demand is going to continue to outweigh supply,” said Shine.
U.S. Continues to Buy Diamonds
But it’s not only demand from China and India that has analysts scratching their heads - the U.S. market “surprisingly” continues to buy at an accelerated level Shine told Rapaport.
The U.S. is still one of the largest diamond buying countries in the world.
“We had predicted the U.S. consumer demand growth in mid-single digits. We are still collecting the final data, but it looks like that in 2011, the demand grew by double digits, a number that we haven’t seen in many years,” she explained. (Editor’s Note: We are expecting similar growth through 2012!)
According to Ms. Shine, there have been no new discoveries of major diamond mines over the past 20 years and all the current mines are aging, creating a shortage.
“When we look at the next ten years, there’s no doubt demand is going to outweigh supply,” she said.
The United States is still the world’s biggest retail market for diamonds, but demand from India and China is growing. A weaker rupee currency in India has dampened of late, but analysts say growth is still strong at between 12 and 20 per cent, compared with 30 per cent growth in previous years.
“I’m encouraged by the structural trends in the industry,” said Oliver Chen, an analyst with Citigroup in New York. “Supply of diamonds is growing at low – to mid-single digits and demand is growing at 7 to 15 per cent, which is a nice structural trend for the long-term pricing of diamonds.”
BOILING OVER
Quoted from Rapaport by By Ettagle Blaue)
The Christie’s and Sotheby’s Geneva auctions continue the high totals that have marked sales during the past year.
Recession? Greek default? Euro-zone crisis? Not in Geneva, The spectacular results achieved during the three days of jewelry auctions on May 14, 15 and 16 might have been an indirect response to the economic distress being felt in Europe and around the world. Whatever the reason, bidders competed with enthusiasm and dollars. Buyers showed no fatigue in the face of a combined total of 1,137 lots offered by Christie’s and Sotheby’s. When the dust settled, the two houses racked up a staggering total of $22,025,570 for two Magnificent Jewels auctions and two single-owner sales.
In spite of enormous interest from private clients, members of the trade were active buyers throughout the Geneva sales, picking up many of the top ten lots at both houses. In many instances, they were willing to pay well over the estimates to secure top-quality, fresh-to-the-market goods.
COLORED DIAMONDS AT AUCTION
To view a table of "Colored Diamonds at Auction" as tabulated by the Rapaport Magazine, go to
http://www.emailwire.com/publications/Colored-diamonds-auction--Rappaport-Diamond-Report.jpg .
Disclaimer:
This report is based on information available to the public. The information and any statistical data contained herein has been obtained from sources we believe reliable, but we do not represent that they are accurate or complete and should not be relied upon as such. The material contained herein is for information purposes only.
About Mercantile Diamond Group, Inc.
Mercantile Diamond Group is the publisher of The Mercantile Diamond Analyst -- a quarterly report written by some of the best technical people involved in the science of Natural Colored Diamonds. It includes major auction and private sale results worldwide, as well as topics of interest to anyone contemplating an investment in Colored Diamonds.
To subscribe to the report, go to
http://www.mercantilediamondgroup.com or contact us at the telephone number or e-mail listed below. Please allow two weeks to receive your first report copy.
Mercantile Diamond Group Inc.
David Metcalfe
416-679-1550
info@mercantilediamondgroup.comSource:
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