For more than 15 years, the diamond industry has been telling the world about a looming shortage of gems. Instead, demand has been stubbornly underwhelming, and the miners have done a wonderful job of digging more and more stones.
But the pain may soon be over for an industry that’s being squeezed by oversupply. In two separate reports this week, analysts set out forecasts of a tightening market in the next few years, with diamond supply falling into deficit in or around 2021.
The diamond business is currently going through something of a mini-crisis. Equities have tumbled amid a slump in prices for cheaper stones, hit hard by too much supply, feeble demand and a weak currency in India, where nearly all the world’s diamonds are either traded or manufactured into jewelry.
Read more about the tightening diamond market on the Bloomberg website online HERE