Unless you’ve been living under a rock, you know that the current political climate is affecting just about every market in some way or another. When the pot gets stirred this hard, the tides are bound to change dramatically. The diamond market is definitely in a moment of flux, and if you’re an investor, then it’s important that you know what to expect. So far, it looks like the diamond market, just like the stock market, is seeing a huge resurgence. It’s too early to tell just how big the wave may be, but regardless, it’s imperative that diamond investors stay ahead of the curve. Here is how the current political climate is affecting the diamond market.
Rough Diamond Market
So far it looks like we’ve seen the most dramatic spikes in value with rough diamonds. This has not trickled into the retail, polished market just yet, but as a general rule, the shift always starts in the rough trade. In fact, De Beers just had their first sale of the year and it is the biggest diamond sale the company has had in at least a year. They sold $720 million worth of rough diamonds, and that is certainly a good omen.
India’s Economic Situation
Due to radical changes in the Indian economy, the country where 90% of the world’s diamonds are polished, polishing costs have reduced significantly. However, due to the instability of the current economic situation in India, it is almost impossible to predict how things will change over the course of the year.
Polished Diamond Market
Considering the huge boon for rough diamonds this January, the polished diamond market fell under last year’s sales. According to Rapaport, 1-carat polished diamond sales were down 6.8% since last year. That said, the diamond market has been suffering quite a bit lately in general, and the rough diamond market always starts turning around first. So, if you are a diamond investor, there’s a good chance that your assets are about to start appreciating very, very soon. However, if you’ve been planning on investing in another diamond or two, and weren’t sure when to pull the trigger, the clock is ticking. Tick tock. Tick tock.