Are diamond prices going up soon?

[slycatty]

My jeweler keeps telling me that diamond prices are going to go up soon, within the next couple of weeks. Does anyone know if that might be true?

 

[Karl_K]

prices are creeping up a bit:
https://www.pricescope.com/diamond-pricing-history-chart.asp
The rough market is going up but who knows when it will show up at retail.
My guess is no large jumps but will likely creep up for a bit baring something else happening to the economy then all bets are off.

 

[Garry H (Cut Nut)]

I agree with Storm

Supply based on current known resoures is less than global demand growth.

Longer term my guess is that rich world inflation will grow at less than 1/2 the pace of diamond prices over this decade (in US$).

The greater risk for US consumers is that diamonds move from being traded in US$''s to Euro or other than US$.

 

[Dancing Fire]

Date: 2/12/2010 4:47:49 AM
Author: Garry H (Cut Nut)

I agree with Storm

Supply based on current known resoures is less than global demand growth.

Longer term my guess is that rich world inflation will grow at less than 1/2 the pace of diamond prices over this decade (in US$).

The greater risk for US consumers is that diamonds move from being traded in US$''s to Euro or other than US$.

Garry...truth or myth about the Russians having a big pile of diamonds in the vault?

 

[Paul-Antwerp]

Your jeweler is right.

 

[Karl_K]

Date: 2/12/2010 5:03:29 AM
Author: Dancing Fire
Garry...truth or myth about the Russians having a big pile of diamonds in the vault?

truth, the gov has been buying up diamonds to keep them off the market.
They had a stockpile then sold it, now they are building one up again.

http://www.nytimes.com/2009/05/12/business/global/12diamonds.html

 

[Karl_K]

more about what is going on this year and next:
http://www.businessweek.com/news/2010-02-11/de-beers-may-boost-diamond-output-22-on-strong-price-growth.html

There is a very good chance of another bubble as they over shoot prices on the recovery in my opinion.

 

[Karl_K]

more:
http://www.forbes.com/2009/07/02/russia-diamond-hoarding-business-oxford.html

 

[Bosie]

Slycatty

In my opinion, sounds like the jeweler was trying to give you a sales pitch, "buy now before prices go up".
Will prices go up, who knows? The prices of diamonds don't move by the principals of supply and demand, they are manipulated by the big boys like DeBeers. It will depend, to some degree on world economies, recession recovery, jobs, consumer spending etc. Will these improve soon, no one knows. Best of luck.