Forecast diamond production of the year 2017

Now that the year is half way, it is time to pick up the production forecast for 2017 and analyze the figures in depth. The diamond production in 2017 is estimated at 142,3 million carat, worth 15.6 billion dollars. This would indicate an increase of 11.5% in carat compared to last year and an increase of 9.9% in the total value generated. These numbers confirm that diamond as an investment in a diversified portfolio is still very interesting. Let’s look in detail at the predictions for the 3 most important players on the world market. 

Botswana

The commotion around diamonds from Africa has been tempered a bit now that African countries work together to guarantee a conflict-free and certified diamond as an investment. De Beers, which almost has a world monopoly on diamonds, moved its sorting and sales activities from London to Gaborone in 2013, making Botswana the core of the company. The Jwaneng mine in Botswana is number 1 for those who are interested in diamond as an investment. It is expected that it will produce 15% of the total global diamond value.

Russia

If you choose for diamond as an investment, it is also very likely that it was produced by Russia. The Russian diamond production is dominated by ALROSA, which is owned for 58% by national and regional Russian governments for. The praised Jubilee mine of the company is expected to produce 9% of the total global diamond value in 2017. ALROSA has 11 mines, all together accounted for 27% of global diamond production.

Canada

Another big player on the diamond market is Canada. The Canadians are probably even the most active nation in the global diamond market. The country houses five large diamond mines with state-of-the-art infrastructure. Two of them, Gahcho Kué and Renard are the newest world class. Three of the top five players in the diamond industry, namely De Beers, Rio Tinto and Dominion Diamond, own their own equity in Canada. Gahcho Kué and Renard are estimated to produce 500 million dollar extra carat this year.

Diamond as an investment remains popular and profitable. In recent years, these precious stones have also proven to be a reliable investment that is resistant to inflation, currency fluctuations and failures of banks or financial institutions. Would you like to know more about diamonds as an investment and our personal approach? Please contact the experts of BAUNAT DIAMONDS.

Author: Inge de Wee

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