Last year was bad for diamonds due to the global economic crisis, but the shiny stones are now making a comeback.
According to industry executives, the stones that diamond buyers are picking up range between ¾ carats to just three carats, which are commonly used in engagement rings.
Better than expected sales to China, Japan and India, coupled with large scale shutdowns in Africa, Canada and Russia assisted in emptying diamond inventory, makes it seem as though there is renewed demand in the market.
Diamonds took a major pounding last year during the global economy crash and commodity selloff.
Prices for rough stones fell as much as fifty percent around the world.
Luxury and discretionary spending took a nose dive bringing the demand for these pretty things to a near halt.
Major global mining companies reduced their production as much as ninety percent while cutting their labour force by almost twenty-five percent.
Thanks to the bridal market and the need for engagement rings, the worst may be behind us and planned closures of some of the biggest mines in the world have been called off.
The demand for larger luxury stones hasn’t returned yet except for Asian tourist areas.
It can be said that diamond buying season is between Thanksgiving and New Years Day since forty percent of global diamond sales annually are made here, so miners, designer and retailers have their hopes up for the next few weeks.