Diamond Market Activity and Analysis - Page 7 of 8

The diamond market explained. Using our research, detailed data, and knowledge of the diamond industry, we put it in context with clarity.

What is the Diamond Market?

It is the collected set of activities that result in a piece of jewelry set with a diamond adorning a person. It covers a wide range of activities, and requires a wide range of disciplines to continue and develop. And yet, it is a relatively small industry that generates less than $100 billion in global retail sales.

Why is There a Diamond Market?

It is human nature to desire to adorn jewelry. Diamonds have succeeded to catch the attention of many thanks to their exceptional beauty, but there is more to this picture. The successful use of marketing since the early 1940s has had a large contribution.

Since the dawn of humanity, people have sought to adorn themselves. The desire to look good and decorate ourselves is set deep into our DNA. Be it a simple string of small shells or flowers, or an elaborate crown full of details and complex workmanship, we want it.

Of all the components that can be set in a decoration, diamonds reign supreme. Thanks to their sparkle, shine, rarity, and overall beauty, diamonds have always been coveted. It is that desire that the diamond market serves. It is the reason that a multi-billion dollar exits – to serve a human desire.

What Are the Components of the Diamond Market?

The foundation of the market comprises:

  • Exploration
  • Mining
  • Rough diamond sales
  • Diamond polishing
  • Polished diamond wholesaling
  • Jewelry making
  • Retailing
  • Consumer demand

For a deeper look into this topic, please see below:

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What is the Price of a Diamond?

What is the price of a diamond? Diamond polishing

Not too long ago, I posted a question on Twitter, asking people what they thought was the average price of a diamond. Specifically, I wondered how much, in informed people’s opinion, was the average wholesale price per carat of polished diamonds. Just for fun, pick a figure before reading on, and keep it in mind. In response to my question, …

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Sight Okay, Retail Not at All

Sight Okay, Retail Not at All - Gem Diamonds

De Beers finally got the message and lowered Sight prices. Retail sales were worse than previously stated and the future does not look bright.

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Sightholders Begin New Contract Period Cautiously

Smallish Sight Expected as Sightholders Begin New Contract Period Cautiously

On Monday, 84 Sightholders and two  will begin attending the first Sight of the new contract period – but quite cautiously. The Sight is not expected to be very large, around $400 million, because Sightholders opted to start the contract by scheduling fewer goods for the upcoming Sight. The first Sight of the 2015-2018 Global Sightholder Sales (GSS) contracts will …

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Jewelry Expenditure Rises amid Stunted Growth, Millennials Stepping Off the Plate

Jewelry Expenditure Rises amid Stunted Growth, Millennials Stepping Off the Plate

According to a new survey of the US consumer market, even though Americans increased fine jewelry and watch purchases in 2014, the rate of growth declined. This reaffirms other indicators that while 2014 was a year of growth, it was a stunted growth. According to the 2014 Mid-Year Consumer Expenditure Survey, in the period between July 2013 and June 2014, …

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Rethinking the Diamond Model

Rough diamond sorting - De Beers

Sometimes, connecting figures in ways in which they are not usually put together can highlight a great truth – a truth hiding in plain sight. Most people who follow the diamond industry already are familiar with the following figures. Yet what they disclose in this context is perhaps new and may require rethinking the diamond model.

“Less for More” Turns into “More for Less”

More for less diamond jewelry

After the 2008 financial crash, a De Beers research study found that consumers continued to spend during the holiday season, but more cautiously. They bought fewer items, yet were willing to spend more per item – if it had long lasting value. They called this trend “less for more,” and consumers were indeed willing to buy nice diamond jewelry items. …

Refusals, Strops, Contracts and Conspiracies – A Rough Market Review

Refusals, Strops, Prices, New Contracts and Conspiracies – A Rough Market Review

In a way, there were no surprises this past week, and that in itself should be a surprise. De Beers offered a large rough diamond supply to its clients – at slightly higher prices – and the market just could not digest it, leading to many refusals. Why did the miner offer so many goods in an overloaded market? Why …

Jewelry Purchases, the Education Factor

Jewelry Purchases, the Education Factor - Featured Edahn Golan

Because education is an important factor in creating the ability to generate higher earnings, it is not surprising that people that have not graduated from high school spent the least on fine jewelry purchases and watch buying when comparing expenditure by education. Based on the latest consumer expenditure survey of US households, those that have not graduated from college spent …

The US State of the Jewelry Market Report

US Market report jewelry diamonds consumer expenditure

Millennials spend more on jewelry than any other age group Age group between 25-34 spent 28% more than average household Consumers are buying more jewelry but at a lower price-per-piece Fine jewelry sales in the US reach $68.8 billion Watch sales reach $9.13 billion, increasing 7.7% Buying season spans throughout the year, with sales during traditional holiday season dropping 1.2% …