The diamond market is pouring into the East
The United States has been regarded as the emerging frontier of the diamond market. It is the American dream land, mass consumerism and new money. However, the US economy is lagging behind the eastern high growth markets, India and China. Although US demand for diamonds has declined after the global economic crisis of the past decade, the market is actually soaring in the east, and China's demand for diamonds may reach the same level as in the United States within a decade.
De Beers has long been the world's diamond monopoly, at one point on the concentration of 95% of the world's diamond supply. They buy diamonds from Africa and India, and distribute diamonds on a limited basis through specific channels and retailers. In an interview with the Financial Times this month, De Beers Managing Director Garreth Penny said: "We now see that China is growing fast, [is] a double-digit compound annual growth of five years."
However, it seems that the surge in the Chinese diamond market is not solely due to the robust performance of the local economy and the stock market. Many of which are related to Chinese wedding culture and tradition. According to Penny, 20 years ago, Chinese brides rarely receive diamond engagement rings. Today, however, about 50% of married couples in Beijing, Shanghai and Guangdong buy
The growth of China's diamond market is significant because in 2009 China accounted for only 6-7% of the global diamond market, Accounting for about 40%. De Beers predicts that by 2016, China's demand will more than double.
A similar trend has also been observed in India today: "The diamond jewelry business has been growing at a rate of around 15% when [just gold jewelry] has grown negligible." India's diamond and jewelery market has been rising, Of similar activities. According to the latest data, only in May 2010, India's polished diamonds exports increased by 73%, while the total number of polished diamonds, From nearly $ 1.8 billion last year. India has long been marked as the main hub for diamond cutting and polishing, and in the world produced 11 diamonds in 9 diamonds. In addition to India, Hong Kong and Dubai are also becoming major trading areas.
It will be interesting to see how the balance of power between the diamond trade centers will change over the next decade. While the diamond industry has recovered from the global economic meltdown of the past decade, many of the issues that the diamond industry has to deal with over the next decade, particularly the decline in future diamond supply. According to Penny, "the big mines that were discovered in 10, 20, 30 years ago are not being replaced today, and according to the data there, we see some noticeable declines in diamonds."