Diamond Demand Hits $82B High – De Beers

RAPAPORT…
Global consumer demand for diamond jewelry grew 2% to an
all-time record of $82 billion in 2017 amid a strong US market and a recovery
in greater China, De Beers reported Thursday.

US demand rose 4% to $43 billion for the year as the key
market enjoyed a strong economy and robust consumer confidence, the miner said.
The nation was the leading driver of global growth for the fourth consecutive
year, and represented more than half of total demand.

The phenomenon of consumers buying pieces for themselves
expanded to 33% of all US diamond-jewelry purchases, fueling the overall
increase, it added.

“People around the world are spending more on diamond
jewelry than ever before, and it’s encouraging to see consumers in the US, the
world’s largest and most mature market, leading the way,” said De Beers CEO
Bruce Cleaver.

Demand in mainland China increased 3% in local currency, and
grew 1% in dollar terms to $10 billion, De Beers said. That came from an
improvement in economic conditions in the second half of 2017, as well as a
20-year high in consumer confidence, the company added. The Hong Kong diamond
market also recovered amid stronger local demand and a revival in spending
among tourists from the mainland.

Demand in India, Japan and the Gulf declined by a
low-single-digit percentage in dollar terms due to economic factors, as well as
the impact of regulation and exchange-rate fluctuation, the company continued.
Demand increased in other markets around the world.

“The outlook for 2018 demand growth remains positive in most
of the main diamond-consuming countries, based on solid world economic
prospects, positive consumer sentiment and continued investment from the
diamond industry in category marketing,” De Beers said.

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