The industry reports forecast dominant trends and features that are likely to influence the diamond business globally, not just for the way ahead but for several years. These features and trends tell us how they talk to each other for the industry to respond and how the results and prices will be dictated for the years to come.
Diamonds are just like Gold and other luxury items. They are predominantly used in jewellery due to its excellence and shine. Just like other luxury products, investors buy and hoard across the world giving the investors an opportunity to earn good profits when prices fluctuate in the market.
You may be buying diamonds as an additional piece of jewellery or for investment purposes, it is good to keep up with the industry trends before you take the plunge.
Price Volatility with Increased Sales
The industry watchers have been taken by surprise by the consumer demand, because diamond jewellery has not only remained strong, but has only increased in comparison to the past years.
Emerging Markets Generating Increasing Growth
Emerging markets like Asia and particularly China and India contribute to the continued growth at higher levels than it was previously assumed. The US markets will also expand, however the European countries are expected to have subdued demand and growth.
Millennials Becoming The Dominant Face Of The Market
Millennials are now the dominant participants in the consumer space for diamonds. United States, China, Japan and India when combined, represent 45 percent of the total retain value of diamond jewellery. Ethical issues now drive the consumers who demand to know about the origin of the diamonds they buy, and the industry will have to respond appropriately.
Retail Industry Compete To Drive Innovation
Smartphones are altering the retail space by driving online sales. Industry reports state that buyers surf online but purchase offline. The industry expects that the online and offline platform will integrate in the coming years which will drive sales exponentially. Again, millennials are attracting all the attention.
Rough Production – Its prediction and value
Rough diamond trading has been difficult in the past, as the mines go deeper the complexity and cost to operate will go higher thereby increasing the value of diamonds. The forecasts predict that the costs of the mines will continue to rise the producers will have to focus on cost reduction with improved productivity. The good news is that the rough diamonds production will remain stable and steady for the coming decade.
Production Of Synthetic Diamonds At Lower Costs
The production of synthetic diamonds over natural diamonds has ignited several debates in the market. Nonetheless, industry reports highlight that while the current consumer demand is negligible, the capacity to produce synthetic diamonds will continue to expand and over time the value and cost of synthetic production will come down.