Before your grandchildren buy their first diamond, most mines will be closed. By the time your granddaughter says “yes” accepting a diamond ring, most diamonds will come from the secondary market.
MART DIAMONDS in cooperation with The Fancy Color Research Foundation (FCRF), an international research foundation dedicated to the evaluation of colored diamonds, has analyzed trends in the natural diamond market. “According to data from the world’ s largest mines, the last diamond will be mined in less than 60 years. This moment will mark the beginning of a new chapter in the global diamond market.” – comments Marcin Marcok, expert on the gems market and owner of MART DIAMONDS
The end of the epoch of uncut diamonds
Currently, forty mines generates 90% of the global diamond production, but only 13% of them has deposits which are rich enough to allow extraction for longer than 40 years. Within the next several decades, 98% of diamond mines will cease to exist. The legendary Karowe mine in Botswana, the origin of the world’s second largest diamond, is expected to be exhausted in about 20 years.
Today, the Earth’s crust is perfectly studied in the scope of mineral resources. It is known that in the near future, there will be no new mine that could reverse the market trend. Small deposits will be exhausted by the end of this century at the latest. Even a discovery of a large source would not affect the current situation. In this case, output will not meet the growing demand from investors.
Nevertheless, we cannot assume that the changing situation is a big surprise for the industry. In the new reality that awaits us the second-hand market will become the greatest active mine. The changes will affect not only approach to product sourcing but also conditions of its distribution.
“A new profession will emerge on the market – broker of pre-owned diamonds, and the market will open to an unprecedented scale, mainly due to jewellery brands hich will have to purchase diamonds from the society in order to maintain production” – adds Marcin Marcok, owner of MART DIAMONDS.
The depletion of resources and the limited number of stones available in the market will certainly lead to higher prices. Already today the numbers of middle class and very wealthy buyers are growing much faster than the pace at which stones are extracted. It is predicted that even low-quality diamonds are likely to see an unprecedented increase in value. The news about the last extracted diamond will reach us in 60 years at the latest. However, the prices will soar much earlier, according to analysts.
“The rarest stones will still be the most desired. Even today, the demand for pink diamonds is so high that their average price increase goes up 12% year by year. Significant mines of colorless diamonds will also be closed within the next decade. Therefore, it is beyond any doubts that the scenario of sharp increases in the prices of all diamonds will become a reality in the coming several decades” – points out Mr Marcok.
Together with the expected surge in demand, the value of your diamonds may also increase unbelievably. More money in consumers’ wallets and the decline in supply will lead to a situation in which next generation will be able to sell their grandmother’s ring with a Fancy Vivid Yellow diamond at a price dozens of times higher than its original price!