Diamond purchasers are more than just lovers of the blinding brilliance of these perfectly polished stones, they are investors in a commodity that is said to trump coal sales this season. These diamond collectors are coming from the usual
diamond acquiring markets of Western Europe and Asia, but are now being accompanied by a growing demand from the Middle East and Russia.
A new trend is emerging with these diamond connoisseurs as they think of their purchase as more than a new piece of jewelry, rather a true investment in something valuable. Since bids at diamond auctions are largely driven by the financial and sentimental value of the purchase, prices naturally move upward.
This season has seen the most successful totals of diamond investment since 2008. Diamond value was not severely affected by the downturn of the global economy and the industry did not suffer the way other similar industries did. What we are seeing today is defined as growth and not recovery. The value of diamonds continues to grow and stones are selling today for almost three times more than they would have sold just a few years back.
Another factor that is driving sales is the deliberate regulation of diamond trading that is being enforced by certification houses. The Sierra Leone blood diamond saga that spanned through the 1990s prompted the emergence of diamond certification houses and has turned the diamond business into a fully regulated industry.
The security of conflict-free certified diamonds allows diamond investors to purchase large quantities with a quiet conscience.For the first time in years, demand may surpass supply in the industry.
Diamond prices are expected to continue their rise, with growth rates projected at 12% to 16% per year.
