Demand from India, China and the Gulf set to supersede US.
Recent figures have revealed that the market for diamond jewellery is expected to be driven by increased growth in India, China and the Gulf, says a report by The Jewel Hut.
Over the next four years, it is predicted the three areas will equal or surpass the market share of the US, which currently stands at around 37% per cent. In 2010, India and China’s market shares has increased to 31 and 25 per cent respectively.
However, demand is currently said to be outstripping supply, with worldwide reserves of diamonds at an all-time low. This new demand from the East means that supply and demand is set to become mismatched, and forecasts warn that the next few years will be a tricky balancing act.
Although diamond prices have already begun to reflect the imbalance between supply and demand, the view that diamonds are an investment which will increase or at least retain their value has ensured that customers are continuing to buy.