Despite cautions of the US economic downturn, in 2008 De Beers has been able to boost rough diamond prices by 16 percent on the back of strong demand. De Beers’ marketing unit The Diamond Trading Company (DTC) has reached this 16 percent increase through incremental raises throughout the year.
Diamond values held steady in July, after rapid inflation earlier in the year. Weak consumer demand in the US, coupled with fear that the recession will spread globally put the lid on prices. Diamond values are still up 15 percent compared to a year ago.
Last week ended on a very exciting note for diamond giant De Beers. The official launch of the Snap Lake Mine, Northeast of Yellowknife, and the Victor Mine, in Northeastern Ontario, took place over the weekend.
Diamonds represent the crème de la crème in luxury, with most gem quality diamonds finding their place in the jewelery boxes of wealthy Americans and Europeans. The slowdown in the US has left diamond exporters around the world holding their breath, hoping that demand for the luxury good would weather the economic storm.
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