Diamonds Popular in Chinese Jewelry
Prices for polished diamonds have gained 9.5% this year alone, and look poised to gain further as producers struggle to keep up with demand from the Indian and Chinese jewelry markets, according to retailer Harry Winston Diamond Corp. The Chinese market is accounting for much of the gains, as this market is now consuming the whole spectrum of diamonds as opposed to only the high-end goods that were popular two years ago. This is putting pressure on American buyers, who are also seeing increased demand. US purchasers are racing to secure stones and are willing to pay higher prices to maintain their supply.
Last year the US accounted for 38% of global demand for diamond jewelry, while China and Japan were at 11% each and India followed with a 10% share. However, demand in India and China grew by 25-30% last year, while demand in the US only grew by 7%.