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De Beers, the world’s largest diamond producer, recently increased the prices of rough products by around 5%, which bodes well for the industry clusters as the diamond industry regains its luster in 2021 as it surprised many at the speed of its recovery after a complete hiatus in the first half of last year.
The recovery was boosted by crucial holiday sales in the US and China as industry brokers held stocks, leading to strong demand, as polished diamond exports rose 43% in November 2020 compared to November 2019.
Experts believe that the inability to travel due to the impact of Corona has prompted people to invest that money in buying diamonds, and demand for diamond engagement rings has also increased during closures, especially among women. millennials. This price increase mainly applies to stones over 1 carat.
These increases came in an attempt to recover from the severe declines in the diamond industry at the start of the Corona outbreak, which prompted De Beers to immediately cut production, and thus supply declined before the return of demand at the end of July.
De Beers closed its tenth sales round with $ 440 million in December 2020, up from $ 426 million in 2019.
This scenario in the diamond industry appears to be similar to that following the 2008 financial crisis, when polished diamond prices rose 40% between 2009 and 2011 due to the disruption of supply chains.
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