adminThe Economic Times said increased spending on luxury goods in China, India and the Middle East will push up diamond prices over the next four years.
“The average price of rough or uncut diamonds will probably rise nine percent to $145 a carat next year, 1,4 percent in 2013 and 4,8 percent in 2014,” it said.
“The gem should gain 2,6 percent in 2015 and 3,2 percent in 2016,” said The Economic Times.
According to the publication, demand for the precious stones will outstrip supply by seven million carats in 2016.
The surge in demand is attributed to a growing appetite for the gems, particularly by countries in Asia.
“Global demand for diamonds will probably outstrip supply by seven million carats in 2016, compared with a shortage of one million carats this year,” The Economic Times said.
“You can see it in the Asian market, just walking around Hong Kong, demand for luxury goods is clearly very buoyant,” said the publication, highlighting that China and India will account for 40 percent of global demand by 2015.
The bulk of Zimbabwe’s gems are being imported by Indian and Chinese buyers, following a spirited campaign by the West to bar diamonds from Chiadzwa.
Zimbabwe has huge reserves of diamonds, mainly concentrated in the eastern part of the country, with some estimates putting these as able to account for 25 percent of global supply.
But Western countries are leading a campaign to ban the country’s gems on international markets, accusing Zimbabwe of human rights abuses.
However, the campaign is increasingly becoming futile as most of the importers of the country’s diamonds are from China, India and the Middle East.
The embargo also flies in the face of a recent green light Zimbabwe received from Kimberley Process and Certification Scheme to freely market her diamonds on international markets.
Anjin, Pure Dime, Marange Resources, Mbada Diamonds and Sino-Zim are exploiting the Chiadzwa gems. — New Ziana.
Online Reporter