Diamond is an allotrope of carbon arranged in a crystal structure and is one of the most challenging elements ever known. The thermal conductivity of diamond is the highest, and this the primary reason it is utilized in industries. The reason diamond is the most mesmerizing form of jewelry is its slightly misshapen octahedral shape and lustrous properties. The age of a standard natural diamond is 1 to 3.5 billion years which is a fabulous time to consider.
The diamonds have a high value in the market and even costs millions of dollars. The demand for the diamond is pretty firm and stands strong among other jewelry markets. The global diamond market’s average turn is immense, and nowadays, the global diamond market is booming. There are plenty of reasons behind this Global diamond market is booming, and the global diamond market was worth approximately 80 billion dollars in 2019.
However, there was plenty of times when the global diamond market was stagnant and depressed. Still, this period is the rolling time of the diamond market and is getting some remarkable responses. From a humming start, the revenues of the diamond market are very loud and clear. There are tons of reasons behind this industry’s boom; however, the most crucial ones are mentioned below.
Reasons behind why the Global diamond market is booming
- During COVID-19, the global diamond market suffered a lot, which is very prominent as millions of crises were running at that moment of the cuban link chain. The covid-19 hit down the diamond market’s reputation and revenues as there were millions of tight restrictions and economic crises at that particular moment. But the diamond market survived somehow by rendering online services, which also cut the costs of traveling and consulting with different agents. The online stores saved the diamond market from a massive crash.
- Covid-19 pandemic hit down the market by 15 to 20%, but the online market’s sales were immensely boosted by 20%, and an improvement was seen by almost 13% compared to 2019. Moreover, the global diamond market’s stagnancy did not last that long; even during the economic crisis, people understood the diamond market’s value.
- One of the primary reasons for the boost of the diamond market globally is the holiday jewelry sales; the countries mainly affected by these sales are the US and China. A considerable increase was not iced in the sales by almost 19% during these sales; from luxury spending, diamonds evolved into investment during the lockdown and pandemic. Many of them used their recyclable income in buying the diamonds, which later turned out to long term assets.
- Work from home not only made people learn about the mechanism of the Diamond chain cheap market, but it also ends up investing in this market. The money previously spent on other entertainment resources is now supported in assets as a long-term investment. Moreover, plenty of people have dived into this market during the pandemic and are even generating enough funds to run a livelihood from this.
- The global market is too hot and is expected to perform even better this year; the diamond market’s annual turnover was depressed at an amount 0f 79 dollars for a very long time, which is why the balloon of the market busted and made some sparkling revenues.
- The diamond market is familiar with booms and doldrums; you must expect the unexpected in this market. Many of the market participates are still in dilemma that whether this boom will take hold or not. The doldrums of diamond of needs are seen In some of the adverse economic crises. But this time, many market participants claimed that they would seek to recover the losses they had faced in the stagnant period of the market.
- India is the only leading marketplace where 99% of diamonds are cuts and polished; due to an immense rise in the market, India has imported almost 1.9 billion unpolished raw diamonds in order to fulfill the stocks demanded by the global diamond market. The price of rough diamonds as Global diamond market is boominghave been restored to the pre-pandemic prices and the price is hit down to normal. It is now more easy to afford by the low scale business of cutting and polishing
- The other crucial reason for the rapid rise of the global diamond market is that during the pandemic, the sales were almost postponed, but it was challenging for the mainstream players to withstand the storm. The time was utilized in the betterment of the alignment of these diamonds, which was according to the customers.
- The market participants innovated new technology during the time of the pandemic; the advancement is the technology of creation of diamonds which is very efficient in terms of time management. New approaches were noticed by the end of the pandemic, which led to a partnership of the mainstream and midstream participants. New designs and patterns were launched in the global diamond market; in a nutshell, each player from the worldwide diamond market was united to overcome the market’s doldrums.
Future aspects of the global diamond market
- The year 2021 is the growth premise of the global diamond market; the evolution of the worldwide diamond market’s growth from exponential to the trajectory is pretty exceptional. However, the conducted survey concluded a rise in even rough diamonds from 8 to 10%, which has led to an increase in rough diamonds.
- Inventories of rough are not limiting as there are millions of crates of only wild in companies’ dockyard. At the same time, India imported almost 1.9 billion rough diamonds just to cut and polish.
- However, nothing is evident and prominent in the global diamond market. Many severe economic crises in the past revolved around the worldwide diamond market. The 2009 double-dip was an unforgettable time span for the diamond market. But the market is expected to perform impressively in the upcoming four years.
- The damage that has been dealt with in the past few years due to the global market dip is reported to be covered in the second quarter of this year. Moreover, developed countries will reach an exceptional in terms of diamond market, as these countries have already claimed the losses they have faced.
- There are plenty of factors that will determine the global diamond market’s future; however, the most crucial ones are government policies, customer responses, and GDP. The government policies will narrate the growth of the worldwide diamond market as it is the most critical aspect that can boost or stunt the market’s development.
- From the surveys, it is concluded that the future outcomes are fruitful. The rough diamonds have been restored to the pre-pandemic level, which has made it easy to afford for the low-scale cutting and polishing businesses. The end benefits the diamond market only.
- The outlook of the market is positive at this particular time; moreover, many participants have claimed that they will recover their losses faced them in the past. There will be exceptional growth in the market in the upcoming weeks as the Global diamond market is booming.
Final verdict
Diamond is one of the prettiest elements for jewelry; however, during the lockdown, plenty of people have thoroughly learned the mechanism of the global diamond market, forcing them to invest in this market. From lavish spending and showcase material, it has evolved into a long-time asset in terms of investment. There were plenty of doldrums in the diamond market, but still, it survived and withstood the storms. The rebound of the market this time seems robust and permanent; however, we cannot predict the future as there were also adverse conditions like the double-dip recession of 2009.
I hope you understood the reasons mentioned above and the future aspects of the global diamond market.