This content was first published on IGR – Italian Gemological Review no. 6 in 2019. The information provided here is therefore current as of the original publication date.
Confirming our outlook, cut diamond market in 2018 was characterized by a positive trend, probably accelerating in comparison with the approximately 2% growth registered in 2017.
In spite of the difficulties of financial markets, the rising labor and rough costs, 2018 resulted to be a year of stability for diamonds. A 2% growth of overall sales is accompanied by a surging demand for diamond jewelry. The slight decline of the first months of the year was partly due to output reduction plans operated by the main mining companies after the production highs of 2017. In this framework selling prices remained under control. 2019 is predicted a year of increased demand for luxury goods and consequently for diamond jewelry even though negatively affected by uncertainty about the trade war between the US and China.
The outlook may vary from country to country. China should experience a 6% GDP increase with a robust request from Millennials while strong fundamentals of U.S. economy are expected to support the leadership of the country as the strongest consuming market. Indian producers continued to gain market shares last year accounting for more than 90% of global polished diamond manufacturing by value, improving the performance on larger stones. However some seasonal difficulties happen to cloud Indian exports as financing remain a problem for smaller companies.
If the diamond scene is steady, the winds of change are blowing in the background. Digital technology day by day is improving marketing efficiency across the diamond industry, while the lab grown diamonds are kicking to gain market shares supposed to range in between 5 or 10% of value in 2030. A threat to the perception of value De Beers intends to fight through its synthetic Lightbox aggressive pricing strategy.
By Sergio Sorrentino, published on IGR – Rivista Italiana di Gemmologia n. 6, Spring 2019.
