Commodities : Diamond
Diamond demand :
The diamond is part of the category ‘precious metals’. It has several uses:
- Industrial: The industry uses much the diamond because of its hardness and its thermal properties.
- Jewelry: Diamonds are used for making jewelry.
Last year, worldwide sales of diamonds accounted for 20 billion dollars (15.3 billion euros).
Diamond supply :
Concerning the production, in 2005, the world diamond production was of 173.5 million carats and the four main producers were Russia, Botswana, Australia and the Democratic Republic of Congo, which together produce a little more than 73% of the world production.
Diamond Evolution :
The price of diamond is very dependent on market conditions. In fact, diamond is part of the luxury sector and in poor conditions, diamond sales fall heavily. Thus, the consulting firm Tacy Consultant, had already estimated that its share in world demand for rough diamonds would fall from 60% in 2009, the global recession weighing on the market for luxury goods.
Then, there are the characteristics of a diamond that determines its value. The value of a diamond depends on four key criteria of quality, the 4C’s: color, purity, size and weight in carats. More colorless, pure, with a size close to perfection, or weighted in carats a diamond is, the more it is rare and valuable.