Diamond price to stay strong

THERE is significant potential for world diamond prices to stay high as the rough diamond market continues to struggle to keep up with demand, according to listed Australian gemstone producer, Namakwa Diamond Company.

Addressing the Africa Downunder conference in Perth, Namakwa Chairman, Karl Simich, said growing economies were demanding much higher volumes of diamonds than had historically been the case. “There is a level of wealth emerging in China and India and we are seeing the demand from these external sources growing quite significantly in terms of rough diamond purchases,” Simich said.”Namakwa expects further increases in the rough diamond price as the long-term shortage of rough gemstones continues to impact and as major producers cut their client lists.”Simich forecast demand for rough diamonds to grow from US$9 billion to around US$14 billion (N$89,6 billion) annually over the next 10 years, compared to current yearly market values of around US$8 billion.He said the increasing shortage had also contributed to the long-term price trend for diamonds matching and currently exceeding the long-term gold price growth.”There is a level of wealth emerging in China and India and we are seeing the demand from these external sources growing quite significantly in terms of rough diamond purchases,” Simich said.”Namakwa expects further increases in the rough diamond price as the long-term shortage of rough gemstones continues to impact and as major producers cut their client lists.”Simich forecast demand for rough diamonds to grow from US$9 billion to around US$14 billion (N$89,6 billion) annually over the next 10 years, compared to current yearly market values of around US$8 billion.He said the increasing shortage had also contributed to the long-term price trend for diamonds matching and currently exceeding the long-term gold price growth.