Diamond Prices Set to Double By 2020

Diamond prices are expected to rise as globaldemand almost doubles this decade, according toBain & Company’s latest report.

 

Commissioned by the Antwerp World Diamond Centre, the consultancy’s 2011 Global Diamond Industry Report argues that diamond demand (in carats) will grow more than six percent per year through to 2020 far outpacing the 2.8 percent annual supply.

 

The report said a doubling in the ranks of the Chinese and Indian middle classes by 2020 will drive much of the demand surge, with their combined market share projected to reach 30 percent by the end of the decade.

 

Bain partner Gerhard Prinsloo said even the most conservative growth scenario in the report forecasts a strong positive outlook for the US$60 billion diamond jewellery industry.

 

Other report findings include:

• By 2020, annual production will swell to nearly 175 million carats and surpass peak 2007 pre-crisis production levels. Thirteen new mines from previous discoveries may add up to 23 million carats by the end of the decade, although no new discoveries are expected in the foreseeable future

• A growing scarcity of high quality larger-carat polished diamonds (ie. those above two carats) points to disproportional increases in revenues in this segment. This segment typically represents five percent of diamond production terms of volume, but 50 percent of the sales value for producers

• Given an even more pronounced structural shortage for larger diamonds, retail chains will need to seriously reconsider their diamond sourcing strategy in the coming years.

• Family-owned diamond retailers, many of them fourth and fifth generation businesses, will continue to be hard hit, as specialised retailing chains continue to take market share.

“This report unveils much of the mystery surrounding the diamond industry,” said Ari Epstein, CEO of the AWDC.

 

“It paints a positive outlook and underscores the value of our continuing commitment to improved transparency.”

 

Nonetheless despite the predicted shortfall in world diamond supplies Bain & Co concludes that investment in diamonds is unlikely to become “significant for demand”.

 

“Even though diamonds may seem like an attractive investment, much like gold or silver, the difficulties with valuation, the absence of a spot market and the lack of liquidity make them largely unsuitable.”

Kim Kardashian's $2m Engagement Ring

People magazine reported Wednesday that reality star Kim Kardashian is engaged to her boyfriend of six months, New Jersey Nets forward Kris Humphries.

Following in the footsteps of her sister Khloe Kardashian who married a Los Angeles Laker, Lamar Odom in 2009 this uber-famous couple look set to hog the limelight as only Kardashians can. We are thinking of introducing a new unit of time in our office namely ‘a Kardashian’ to designate the average amount of time between mentions of a Kardashian somewhere in our vicinity. We have worked out that a Kardashian is about 15 minutes long.

Now to the exciting part: Kris Humphries, 26, gave Kim, 30, a 20.5-carat Lorraine Schwartz diamond ring!

TMZ reported the ring was valued at $2 million.

Plastic Fantastic

So what does the most powerful woman in the world wear on those secret missions with her superhero husband President Barack Obama? If we told you that Michelle Obama wears a plastic watch would you think that we were pulling your leg? Add Miley Cyrus, Michael Jordan, Phillip Seymour Hoffmann and Nicky Hilton to the growing list of celebrities sporting plastic watches and can see that this trend is appealing to a very broad audience. Fashion brands such as Guess, Fossil and DKNY are capitalising as are emerging brands such as Toy Watch and ECC. We will keep you posted as more of these fun models come out.

Paul McCartney’s $650,000 Engagement Ring

Is it any wonder that Nancy Shevell has a smile on her dial after receiving this divine ring from musical legend Paul McCartney? As he said himself back in the 60’s ‘money can’t buy me love’ but it seems that he’s given it a pretty good shot this decade with this perfect 5 carat monster setting his AMEX in arrears $650,000. Designed by McCartney and Jeweller Neil Lane, this ring is a simple art deco design that is lined with black onyx stones on the sides.  A beautiful choice.

10 of the hottest new celebrity rings

Presidential Candidate drops $500,000 at Tiffany's

Leading Republican presidential candidate Newt Gingrich and his wife Callista held up to $500,000 in jewellery debt with Tiffany & Co a probe by news site Politico has revealed. The information was contained in financial records filed with the clerk of the US House of representatives in 2006.

At that time the Gingrich’s declared assets of between $1 and $2.5 million dollars making their jewellery spend between 20% to 50% of their total assets. Were Newt to take the helm as leader of one of the most influential nations on earth, a jeweller like me can only wonder what the long term results would be on sales. As a-political as I endeavour to be, this candidate looks like a winner! If only Obama wasn’t so cool...