Wednesday 7th December 2016

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Chris Berry looks at diamonds and their longer-term potential

Diamond prices dropped last year but a new Zimtu Research report from Chris Berry puts a longer perspective on supply and demand. Despite the global slowdown, GDP forecasts encourage optimism for both Western and emerging markets, he notes. ALROSA predicts a 5% cumulative annual growth rate in demand up to 2024, contrasting with a 1% CAGR in supply. The challenge to meet demand hasn’t been helped by an overall drop in diamond exploration spending, now roughly half of 2007 levels. That lack of spending could in itself help raise prices, he points out.

Berry provides a clear overview of the industry, introducing the geology, the vertically integrated giants, and some of the explorers, the cutters and polishers, and the retailers that contribute to the trade in a commodity whose emotional appeal is probably matched only by gold.

Download the nine-page report.

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