Diamond market will be at the pre-crisis level in two years, thanks to China

The demand for diamond for jewelry will be back to pre-coronacris level between 2022 and 2024. The demand is being driven mainly from China. This is what Bain research group writes, who conducted a study of the market on behalf of the Antwerp World Diamond Centre.

The sale of rough diamonds went down a lot last year because the crisis caused fewer jewels to be sold, for example because jewelry stores had to close. In order to support prices, diamond producers such as the Beers restricted production. By the way, in 2019, the sector was already struggling, partly due to oversupply and the advance of synthetic diamonds.

According to the researchers, Chinese diamond demand will be fully recovered this year, aided by the growing middle class in the country. They do point to risks to the diamond market, such as new lockdowns and economic recessions.