Some diamond mines in the world were at the last phase of their existence. Take the Argyle Diamond Mine of Rio Tinto, for instance. It stopped production following operation for about 40 years. It has affected rough diamond supply volumes globally. High rainfall prevented usual mine operations and impacted rough diamond supply. Those kinds of factors do not affect the arrival of lab grown diamonds to the market because of their origin.
The rise in rough diamond rates and polished diamond prices happened at the same time. People pay a premium price at not only diamond tenders but also outside market situations for more market share. It is likely to affect profit margins if the trend continues next year.
Since September 2021, the diamond trade in China has been slower as compared to the first quarter of this year. However, diamond retailers in China are confident about the trade picking up in the present season. The New Year season in China is likely to be a good one as far as the diamond trade in China is concerned. Besides, people in China feel that the first quarter of 2022 will be a good period for the diamond trade.
The rates of polished diamonds have long been stagnant; the sudden increase in the prices by around 15% is likely to shake up customer confidence.
Diamonds with fancy cuts are doing great in the United States of America and some parts of India. South India and North India see fantastic sales figures for diamonds with fancy shapes, whereas the trade in West and East India is picking up as well. As for the sales of fancy-shaped diamonds, both nations are in an excellent zone.
Skilled labor is still a challenge because many people shifted industries in the pandemic. It continues to pose a bigger issue as cutting and polishing professionals should get used to handling smaller diamonds.
The requirement for polished melee diamonds with no certification is solid in December 2021 because lower-end products are in demand in the US.
There has been a steady upward trend for the requirement for diamond rings and other pieces of diamond jewelry since July in India.
Customers in India gravitate towards diamond jewelry pieces with multiple functions.
Customers do not mind spending 10% more on diamond jewelry but want immediate shipment of products. Given the incongruent nature of supply and demand, it also poses a big issue for manufacturers and retailers.