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Market News | Alrosa Expects Investment Diamond Prices to Rise
According to ALROSA, demand for investment grade diamonds continues to grow and is the least sensitive to market fluctuations. In 2023, this figure will grow by 8-10% and reach 2023 due to the extreme shortage of diamonds and the growth of the global luxury goods market. This is a record amount of 1.5 trillion euros.
The positive outlook for this market segment is influenced by the trend of increasing wealth worldwide. In China and India. In the medium term, the growing shortage of natural diamonds will also affect price dynamics: world production is expected to decline from 160-170 million carats in 2004-2008 to 112 million carats in 2023. I did it.
"Unfavorable economic conditions due to the increase in interest rates by global central banks in 2023 affected the dynamics, which led to an increase in financing costs and a decrease in diamond purchases by the cutting sector while maintaining a high level of reserves. Prices for rough and polished diamonds. Accordingly, the average price of rough diamonds decreased from $159 in 2022 to $130-139 per carat in 2023-2024," said Sergey Takhiev, Head of the Corporate Finance Department at ALROSA.
The abolition of value added tax (VAT) on diamond purchases from Russian banks in 2022 has significantly increased the diamond investment market in the Russian Federation.
, calculated on the Moscow Exchange. At the same time, large diamonds bring in more profit than smaller ones, since their supply is very limited, the report notes.