Whilst some parts of the global markets are still working through the slumps of 2015, there’s certainly some positive vibes in the diamond sector for 2016. China was the hardest hit and still has some way to go to in terms of possibly over-buying and recovering from this but other areas in the diamond market are much more upbeat.
Review of 2015
The last 12 months saw the discovery of some major diamonds in mines across the world. The most important find was the 1,111 carat gemstone in Botswana. It’s the second largest diamond ever discovered and measures 65 x 56 x 40 millimetres. Only the 3165 carat Cullinan diamond was larger when first brought to the surface in 1905. In the same week, the same mine announced they also found a diamond weighing 813 carats and another at 374.
Fancy colored diamonds also held their own in 2015 with a rise of 5-6% in rough stone prices. Pure blue and pink ones have become particularly collectible with affluent buyers pushing the prices up.
The outlook for 2016
It seems the main prediction for diamonds in 2016 is higher prices through less availability of supplies. Once the Chinese New Year celebrations have taken place, when many diamonds are sold in China, supplies will start to become more scarce and this will be reflected in the prices.
It’s thought that the main upturn in values will be in the summer months. Inventories being held at polishers will be much diminished as they are sold to cash buyers during the second quarter and then set into jewelry such as engagement and wedding rings in Houston. Specialists will then sell and this will then affect every stage of the market chain. When this happens, rough stones will also rise in price as polishers look for new pieces to work on.
Some of the major mining companies are looking to increase production this year and to install new and improved equipment and machinery. This has led stock market experts to forecast that some mining firms are currently undervalued but with one in particular looking to increase production to 5 million carats a year instead of the current 3 million, the mining sector is definitely on the right track for a prosperous year which make shareholders happy.
It’s always important to note that markets can be volatile at any time and that expert advice should always be sought when investing any kind of funds. The diamond sector is no different and it’s impossible to know exactly how the year will pan out, but the signs are that after a slow beginning to 2016, by the time the end of the second quarter is upon us, things will be much improved and significant shifts will be seen. With the discovery of such important gemstones such as the one in Botswana, all eyes will be on the diamond mine companies to see if the earth is to yield any more similar-sized beautiful and rare examples of the hardest and arguably most stunning mineral in the world.