Out of stock diamond

Last year, when the diamond industry plunged, billions of dollars worth of gems were lying in safes. However, sales of this luxury item are skyrocketing.
According to the Bloomberg At the time when the Covid-19 epidemic broke out last year, the global demand for diamonds plummeted unceasingly. The volume of raw diamonds in inventories swell, making big manufacturers extremely concerned.

However, in the past few months, intermediaries cutting, polishing and selling diamonds have massively purchased raw gemstones. The inventory is sold cleanly. Therefore, the leading diamond producers in the world such as De Beers or Alrosa PJSC started to increase their prices. The dizzying change took place at diamond grinding centers in India and Antwerp (Belgium). Unable to travel, wealthy consumers around the world are willing to spend money on luxury goods. De Beers said it sold 13.5 million carats of diamonds in the first quarter, nearly double the amount of gems it mined in the first three months of the year. Bloomberg that difference shows that inventories of the world’s largest diamond producer are plummeting. Demand for diamonds increased sharply after a long period of being affected by Covid-19. Photo: Bloomberg. Meanwhile, inventories of Alrosa – the Russian diamond maker – fell 60% in the six months to the end of March to 12.8 million carats. This is the lowest level in the past 3 years. Manufacturers are simultaneously increasing the price of diamonds. De Beers pushes prices up from the end of 2020 and earns $ 1.6 billion from three sales of rough diamonds earlier this year. “Alros and De Beers will free up inventory in 2020 without affecting diamond prices. The prospects are bright this year, ”said Liberum Capital analyst Ben Davis. However, the diamond industry still faces many risks. In India, the diamond industry faces a threat of stagnation due to the impact of the second Covid-19 wave. Manufacturing in India may not be enough to meet the needs of Chinese and American customers.