The price of diamonds has gone up since 2009 and it seems it will only continue to increase. Round diamonds are some that have seen an increase in their worth, which is one thing that makes them a good investment for new diamond buyers or people that may already have diamonds. Rough diamonds have also increased in value. With higher demand for rough diamonds comes higher prices.
Here are a few of the reasons for high demand:
In India it is extremely easy to take out a loan for diamonds. Banks in India lend and lend which leads to higher prices. With more and more people trying to get the same rough diamonds, this also leads to an increase in prices.
China has a lot more people than the U.S. which means there are likely a lot more people in China with more money to spend on pricier diamonds. China and India have about 2.5 billion people while the U.S. has about 310 million people. More people with more money equals higher prices as well. This also means more people will be trying to get diamonds which also drives the prices up.
The price you can sell a diamond for is not determined by the U.S. economy but by the world economy. If diamonds can be sold for a higher price in China then the diamond is sent there instead of the U.S. More diamonds are going to China than the U.S. because diamonds go wherever they can fetch the highest price. In order for the U.S. to have diamonds of comparable quality, the price the consumer has to pay increases. In 2007 the U.S. imported about $7 billion worth of diamonds but that number decreased to about $3.5 billion in 2012. China, however, went from about $4 billion to $7.13 billion.
Investment is also a factor in the high prices of diamonds. At least two companies in the U.S. have bought billions of dollars in diamonds as investments. With all these diamonds being bought as investments it takes diamonds away from others by shrinking the supply pool of diamonds. Investors usually buy diamonds that are colorless and about 5ct. Diamonds over 10ct are usually bought by people that live in countries with unstable governments. With the companies investing in diamonds it further reduces the amount of quality diamonds available to the average buyer.
All these factors lead to the increase in diamond prices since 2009, which is what makes buying diamonds today a great investment. With the price only going up, buying at today’s prices will save you money later and give you a great investment that will only increase in value. So if you are looking to buy today, call Midtown Jewelers to see how their experienced jewelers can help you get the perfect diamond at the best price.