What happened in the diamond market in 2017?

  • What were the general trends?
  • Which records were broken?
  • What about buying diamond online?
  • What are the projections for 2018?

With the new year around the corner, it’s the perfect moment to evaluate the past year. Lots of thing happened on the diamond market, but what exactly? And how can we use these trends to make predictions for 2018?

What were the general trends?

The prices for yellow diamonds stagnated last year, with a strong counterweight of the blue and pink diamonds. In 2017, there were record-breaking amounts at auctions and general price rises on the diamond market. The demand for both colours continues to rise, while there are hardly any new finds. At the auctions, existing items were sold instead of new ones.

The investment diamond in particular turned out to be popular in 2017. The value of diamonds as an alternative raw material investment appears to break through worldwide, that’s why diamonds with high investment values ​​in particular did well in the diamond market.

Which records were broken?

A total of nine world records for diamond prices were broken at auctions. Five of them were prices per carat, the remaining amount was for the price per stone. Many of them were coloured diamonds. The records also reflected the rising interest in the diamond market from growing economies such as China. Two record breakers, a blue and a pink, were sold in Hong Kong.

What about buying diamond online?

Buying diamond online was also on the rise in 2017. In 2016, online diamond store Blue Nile was sold for  $ 500 million, this year followed R2Net, the owner of the James Allen website, for  $ 328 million. These purchases prove the boom in e-commerce and show that the diamond industry is not lagging behind in digitization. Especially buying diamonds online and then visiting them in the physical store or vice versa are popular methods.

Buying online diamonds may remain taboo for some, but the past year proves that online and offline have a nice interaction.

What are the projections for 2018?

Projections for 2018 are difficult. The diamond market has been enjoying the intrinsic value of raw materials for years, but other factors have emerged in recent years. Especially the rise of e-commerce and the popularity of coloured diamonds make it difficult to make a substantiated projection for the upcoming year. The Global Diamond Industry Report predicts a stable increase for rough diamonds until 2030, but says little about changes in the market of polished diamonds.

Which trends were still visible in 2017? Which projections can the diamond expert make? Get advice on your diamond investment from the experts at BAUNAT DIAMONDS.

Author: Inge De Wee
Source: BAUNAT

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