Diamond Market Update

We have many clients who want to buy a big diamond but have been waiting until the price bottom out due to the recession.  For months, I have been telling them this is the bottom and they can expect to see polished diamond prices moving up shortly.

I am not the only one with this belief.  Yesterday, Robert Gannicott, CEO of Harry Winston Diamonds noted that rough diamond prices have improved by at least 61% from the prices at the lowest part of the market, during the first quarter of this year.  Harry Winston owns part of the Diavik diamond mine in Canada’s Northwest Territories in addition to its high-end jewelry stores.  Even with the dramatic increase from the low, rough diamond prices in the quarter ended October 31 were about 9% lower than the same period in 2008 and 13% below the highs in the summer of 2008.

What is remarkable about the increase in rough diamond prices is that polish diamond prices have been flat for most of the year.  Most diamond mines closed for months at the start of 2009 and this allowed the excess rough and polished diamonds in the pipeline to be sold until demand was more aligned with supply.

The mines have been producing for months and the cutters are back in operation.  The demand for polished diamonds for the Far East and India is on the upswing and the US holiday season is in full swing.  In the months ahead, demand is expected to match and exceed supply, implying rough and polish prices will be moving up in the near term.

Comments

[Search Engine Optimisation]

Information is so valuable as My father is a diamond merchant and i am also going to join that industry.Thanks for sharing

[Loose diamonds]

Indeed demand of diamond in far east has improved and diamond industry will rock again

[Gledwood]

Have you ever bought diamonds online?... how can you trust that you actually receive what you pay for? and that it really is a natural diamond, and of the advertised quality? and hasn't been heat-treated/anything?

Please RSVP: I'm fascinated to know!

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Denny’s Reply:

We sell diamonds every day to clients all over the country and internationally. The keys are buying only GIA graded diamonds and working with a company you can get to know via email and phone conversations. Our clients get to examine the diamond before they purchase and with the GIA Diamond Grading Reports, you can match the plot map of inclusions and often the laser inscription to assure the diamond is natural and has no treatments. I would be happy to discuss this topic with anyone who would like to give us a call at 888-477-8385.

[cavin]

As recession brings down prices of all the prestigious things.Many people are really waiting to buy or tread in diamond market.I personally feel the prices of polish diamonds are going to bottom out here and they will take the up word trend.

[Video Converter]

Why will the price of the diamond move up in the near term? There are so many people want to buy diamonds. It is really a surprise.
The mines have been producing for months and the cutters are back in operation.

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Denny's Response

It is the very fact that there are so many more people, especially in China and India, wanting to buy diamonds that the demand still tends to be greater than the supply, which is what increases price.

[Aine Ireland]

Many thanks for the information. With both diamonds and gold prices increasing the time is basically now. I was hoping for a fall but from your comments above there is only one way things are going. I wonder if this would be true for all gem stones like sapphires?

[Engagement Rings]

I wonder how manufactured diamonds will impact prices over the coming years. Diamonds created in a lab are very similar to the real diamonds and should cost a fraction of real diamonds. I would love to hear anyone's views on this. Thanks for sharing.

[Nicolas]

Market is going up and boost also by the Internet way of bying diamonds with less margin.

[Ladies Engagement Rings]

Will an ordinary person be able to buy diamonds any day? I hope that day will come soon,when diamond prices will go down.

[Diamond Engagement Rings]

Hi can you please post the latest updates in diamond market!!
Would really love to know more !!
Thank you

[Tmoodytime]

In the past decade how has the diamond market been affected? I've heard that diamonds (particularly smaller) have declined from what they were ten years ago due to the release from the Russian mines and elsewhere. Is this true or was it just a rumor?