With the current situation of the globe, the diamond sector deals with new challenges. From older mines reaching their end to countries experiencing lockdown. What is the future holding for the diamond industry?
Will the present economic climate hinder diamond production and sales? What countries are most affected by diamond supply and demand? Is there pressure on the diamond sector?
As the diamond industry takes a turn from being stable to shaky, learn more about how it copes. Continue reading below to see how the market is doing. Find out how diamond producers are coping with the situation.
Dealing With Old and New Challenges
Even before, the diamond industry has been facing several ups and downs. Among common economic problems include political unrest and economic uncertainty. What is the real state of the diamond industry now?
- Weakening Demand from Key Markets
As countries go into lockdown, prominent diamond consumers are being affected. This means they can’t get the diamonds they want thus creating lower sales. China and the Hong Kong region are among the significant consumers of diamonds.
Around 14% of the polished diamonds are being routed to china while 35% of the exports from India go to Hong Kong. As the markets decline, this impacts the domestic diamond industry.
- Disruption on Diamond Import and Export
China is a big consumer and producer of diamonds. They export to the US, Southeast Asia, and related markets. Hong Kong being a global trading hub is also key to the movement of the diamond industry.
Belgium and the United Arab Emirates are also huge diamond trading locations. The US is the largest market for diamond jewelry buyers. As travel, import, and export are at limit worldwide, there is less activity for diamonds.
Market Trends for Diamonds in the Future
The economy is struggling in all parts of the world now and not only for diamonds. But things are being expected to have a gradual comeback. The biggest challenge for the diamond industry is the number of restrictions worldwide.
Producers have struggled in increasing proceeds and will continue to do so now. But this doesn’t mean the end for diamonds. There are sectors that have expressed support for diamond mines. This would mean more diamond deposits in the future if economic projects will appear.
Countries will want to create more jobs to drive economic growth. Diamond procurement and production might be among the solutions. Countries get the benefit and people find new jobs through the diamond industry.
