National Jeweler online published this editorial recently. I thought it interesting enough to share in light of the economy and people not thinking that diamonds are selling during these times.
Obviously they are:
Moscow--The head of Russian diamond mining giant Alrosa told Bloomberg Television that diamond prices are climbing faster than expected and could create a price bubble, just as they did prior to the financial crisis in 2008.
In a recent interview, Fyodor Andreev said the Russian diamond miner increased its rough prices by 5 percent at the end of 2010, and prices are up another 10 percent just a few months into 2011. In total, rough prices are now 8 percent higher than they were before the economic crisis hit in the fall of 2008, he said. (Bolding mine as I think this is crucial!)
He told Bloomberg that continually climbing rough prices, which sometimes top prices of polished gems, are a “dangerous signal” that the market will see another price bubble.
News of rising rough diamond prices--as well as an increase in polished prices--have been creating a buzz in the industry for a few months due to increased demand from both emerging markets, such as China and India, and recovering markets, such as the United States.
Last month, IDEX Online reported that De Beers rough distribution arm, the Diamond Trading Co. (DTC) increased prices at least 4 to 8 percent at its latest sight. And earlier this month, IDEX Online reported that polished diamond prices had recovered to near pre-economic crisis levels.