The abrupt jump in prices for large-size and high-quality rough diamonds has triggered heated polemics in the professional medium. Key mining companies’ representatives point to the following unbiased reasons: the necessity to switch over to underground mining substantially contributing to cost increase and the shrinking share of high-quality rough in the current mining pattern due to depletion of major primary deposits.
Almost all professional diamond marketers have no doubts that rough prices will continue to rise in the near future. However, no one is ready to give an accurate forecast as to the extent the rough quality will push the prices up. Analysts and spokesmen of large companies confine themselves to general enunciations similar to the one recently expressed by the Rio Tinto representatives that “between 2008 and 2016 the demand for diamonds will significantly exceed their supply.” Meanwhile, the polished diamonds market displayed a peculiar trend: large high-quality diamonds sharply rose in prices (from 10% to 15% for the excellent grade stones of 1 to 3 carats and above), whereas prices for small diamonds were virtually left unchanged. It looks like this time diamond dealers have taken the lead and one cannot but agree there is some logic in this strategy.