- With continued economic growth around the world and more demand for luxury goods and decline in the mining of diamonds, it is expected that the prices of high gem quality natural diamonds will increase by roughly 6% each year until 2020.
- While the overall health of the economy influences the prices of diamonds, in general this gemstone has gained value over the years. Data shows the prices of diamonds over the past ten years have increased by approximately32-33%, giving it an average of4% every year.
- De Beers no longer controls the largest supply of diamonds as their market shares have fallen from roughly90% in the 80sto close to30% now. This is good news because it shows that diamonds can hold its value even when its supply is not controlled by a large cooperation.
- While many pundits would suggest that diamond is not a good investment, it is not necessary true. If you get the diamond from a trusted source at fair price and it is a top gem quality stone, diamond is one of the best commodities you could own. People are not insane to invest billions of dollars in this alluring gemstone. However, it is a different story if you buy the gemstone at a 400-700% marked up price as is sometimes the case in big chain jewelry stores.
Detailed analysis:Determining the best price for a diamond is critical for investors and consumers alike. This rare and alluring gemstone has been around for years and, all this time, its price has been quite high. To understand diamond and how its market value has been over the past half century or so, it is important to have a good perspective of the worldwide diamond industry. The value of the diamond has always been high since it was discovered and the main factor that affects this is the demand for diamond jewelry. With continued economic growth in the world, the demand for diamonds is expected to have a positive increase in the future.
With increased demand for this unique gemstone over the coming years, eventually demand will be way higher than the growth of diamond production. This is due to the slowdown of current mines and the lack of discovering new mines for this mineral. With the increase in demand of diamonds, more and more companies have come to the realization that such demand would affect prices globally.
If compared to another mineral such as gold, diamond prices haven't fluctuated as much, but they have changed nevertheless. Surveys show that the price of diamonds over the past 8 years has increased by approximately 33%, giving it an average of 4% every year. The size of the diamond will highly affect the price of the diamond. You will find that large type of diamonds (weighing about three carats or more) will fluctuate more compared to the smaller diamonds (weighing 2.99 carat and below to 0.50 carats). When you look at larger diamonds, you will notice that they have gradually increased in price over the past fifteen years, more than doubling their prices. The 4 carat diamonds (most active type) tripled between the year 2004 and 2008. When you look at the changes in prices of the smaller diamonds (0.50 to 2.99 carat) you will notice that the change in price over the past years is smaller.
While the price you pay for diamonds may change from year-to-year, the unique beauty, appeal and luster of this amazing natural stone will likely remain as it is . . . unrivaled. You can learn more about diamonds on a personal level by visiting the experts at Pineforest Jewelry.