Diamond industry tendencies 

Diamond prices are exceeding the pre-pandemic levels. 

Sounds like good news, right? The past two years have been a serious challenge for the entire diamond industry. However, despite the tough conditions, it survived, proving to be truly brilliant. Let’s look at the industry’s recovery, the consequences of COVID and possible options for the future. 

The status quo of the diamond industry

According to the annual report of Bain & Co. and the Antwerp World Diamond Center, the diamond industry experienced significant growth in 2021. The revenue increased for 62% in the segment of diamond mining, for 55% in cutting and polishing, and 29% in diamond jewelry. All these parameters exceeded the pre-pandemic levels.

In 2022, the market is expected to demonstrate higher growth than during the pre-pandemic period and return to its historic growth pace by 2023–24. The demand for rough or polished diamonds and diamond jewelry is on the rise. 

Rough diamond production

During the pandemic, the production at many deposits was temporarily halted. In order to support the market, some major mining companies adopted so-called price-over-volume strategy, reduced sales volume and accumulated record-high reserves of stones. Despite the fact that the market started to recover in the second part of 2020, rough diamond sales were still pretty low.

The supply started to gradually rebound in 2021. Production volumes were increased and pulled from inventories to satisfy strong demand from cutters and polishers. Nevertheless, the supply still did not meet the demand. As a result, at the end of 2021, the upstream inventories hit historically low levels. 

Although the production is expected to rise, it is unlikely to return to the pre-pandemic levels. 

However, demand growth and supply scarcity lead to an increase in prices on rough diamonds and therefore diamond jewels. 

Today diamonds are a reliable investment, as well as the best way to express your feelings and emotions. If you want to acquire a diamond that would meet your requirements in the best way, use our Mad Advisor service. Our professionals will answer all your questions, as well as help you choose the perfect stone.

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