Smart in Every Way

How is the diamond price doing in Singapore?

  • What was the situation like in Singapore in 2014?
  • How has that now changed?
  • Which new developments will have a major impact on the future?

Singapore boomed as a sales market for the Antwerp diamond in 2014. That was according to the Antwerp World Diamond Centre, representative of the Belgian diamond sector’s interests. At the time, the AWDC also predicted that the turnover realised in the Singaporean jewellery market would increase by 3% per year for many years to come. What has changed since 2014? What does the future have in store for the diamond price?  

What was the situation like in Singapore in 2014?

The number of luxury brands which opened a store in Singapore rose exponentially for years. Singapore used to be a geographical link between the Antwerp diamond companies and the Indian market. Large quantities of rough diamonds have been exported to Singapore itself from Antwerp since 2009, accounting for a total value of $283 million between 2008 and 2014.

Singapore became an ever-growing sales market during this period, as a result of its growing middle class. The jewellery market in particular was largely responsible for the rising diamond price.

How has that now changed?

The projections for the Singaporean population have changed since 2014. This is because the growing middle class has largely stagnated. The biggest problem? Employment. The combination of a globalised economy and the weakening of local employment has resulted in the average Singaporean with a high diploma now finding it harder to find a suitable position. Expats are adding to this problem too: they work for less money and in lower positions than the local population is prepared to do.

Jewellery, and certainly those of great value, are not particularly high on the list of priorities in an economic climate like this. However, diamonds as an investment are seen as a smart move, by way of defence against economic problems.

Which new developments will have a major impact on the future?

The local importance of the investment diamond has been accurately illustrated by the launch of the world’s first fully digital diamond exhibition. Investors can buy blocks with various different diamonds as a package via the Singapore Diamond Mint. These packages are subject to standardised prices with fixed values. This evolution can help the middle class, upper middle class and higher class to kick the local economy back into shape.

Where can I invest in a reasonable diamond price myself? What happened to the diamond price globally last year? Ask BAUNAT DIAMONDS’ diamond experts for advice for your investment.

Author: Maxine Schepens
Source: BAUNAT

With this article, BAUNAT strives to inform you thoroughly about investing in diamonds. No investment can be guaranteed to be without risk or fully according to your expectations. That is why we recommend to research the risks and aspects of investing in diamond properly to ensure that you make the right choice for your portfolio.

START TO INVEST See our selection of loose diamonds

Related

Most popular