Buying a diamond: price increase from 2016

Buying a diamond: price increase from 2016

Are you planning on surprising your loved one with a spectacular gift, for example, a diamond for her birthday, then the following information can be rather useful. From this year on, the price of a diamond will rise yearly with about 6 percent, and this until 2020. The main cause is the increasing demand for diamonds in Asian countries, such as China, India and Japan. But also the current offer of diamonds has a significant impact on the price. This coincidence results in a price increase that will dominate the diamond world in the near future.

China exceeded Japan in 2011 as the world's second largest buyer of diamonds (after the United States) and, combined with India accounts, for about 20 percent of the global demand. This could amount to 28 percent in 2016. A lot of Chinese people adore extreme luxury and love to show this off. Buying an exclusive diamond for themselves or as a gift is a true hobby. Both colourless and coloured diamonds are very popular.

Buying a diamond has never been so expensive. But the cause does not lie solely with the ever-increasing demand. Also the declining offer is a major reason why the price of diamonds will rise yearly with 6 percent. Since hardly any new mines are being discovered, fewer diamonds are becoming available on the market. Supply falls, which makes diamonds more exclusive and consequently makes prices rise. The Diavik Diamond Mine (Canada), the last discovered diamond mine, started production in 2003. Rio Tinto, one of the most important players in the diamond world, owns a 60% stake in this mine but to fulfill the growing global demand of today, this is not sufficient.

Buying a diamond as an investment or set in a beautiful piece of jewellery, is possible at BAUNAT at any price. BAUNAT offers a wide selection of diamond jewellery set with colourless and/or coloured diamonds, for every occasion and within everyone's budget.

Author: Thomas vanden Bogaerde

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