Ever since the pandemic of Covid-19 started, all the assets are declining in value.
There was no exception for diamonds as well. In 2020, global diamond production fell by 20% while sales declined by 15%.
Yet not everything was so bleak for the diamond market in 2020.
In China, local retailers gained new customers due to travel restrictions. E-commerce retailers gained revenue due to the increased number of online purchases.
The looming question is what the future of the diamond market is.
What will happen after the global pandemic ends?
What Have We Learnt During 2020 About Diamond Market?
There are several things that 2020 has changed.
For starters, the approach of both retailers and buyers has changed.
As mentioned, many e-commerce retailers profited because they responded dynamically to consumer demand for diamond jewelry.
They adapted to the new reality and found a way to stay competitive and sell their product.
But what else has 2020 brought to the diamond market?
Diamond Mining – Environmental Impacts
This is something diamond miners and producers will definitely have to consider.
Despite the global pandemic, one of the seriously discussed matters during 2020 was environmental issues.
The pandemic also increased people’s general appreciation of health.
Therefore, since diamond mining has an environmental impact, something will have to change. All leading diamond miners are developing sustainable technologies that reduces negative impacts.
Several jewelry manufacturers prefer using lab-made diamonds with the understanding that they have a reduced impact.
If diamond producers want to remain competitive, they will have to find new mining technologies and reduce negative effects.
Tracking Diamond Provenance
Since the value of diamonds is larger than the value of any other gems on the market, it’s perfectly understandable that buyers are hesitating to pay larger amounts of money for diamonds without knowing that they are purchasing an ethical product.
Moreover, they want to ensure that they are not purchasing a stolen product.
Therefore, in our belief, one of the trends that is inevitable when it comes to diamonds is a document that will enable you to track your diamond’s history.
This document should contain the diamond’s trail from mine to store.
This change is already taking place, gaining attention since Tiffany & Co., one of the largest jewelers in the world, started providing source information for all its diamonds weighing 0.18 carats and above.
Currently several companies are creating traceability platforms, among them are Tracr, Sarine, and Everledger.
New Retailer – Buyer Trend
Currently, the world’s largest consumer diamond market is the USA, mainly due to the high demand for diamond engagement rings for women.
The second and third largest markets are China and India, followed by Japan.
However, we can see that this global order is about to change.
Since we can notice many South Asian millennials being interested in diamonds and making excessive purchases, looks like this particular region will overcome Europe when it comes to diamond consumption.
Besides South Asia, the Middle East recently showed a larger interest in the diamond market.
On the other hand, thanks to the Panama Diamond Exchange jewelry center, it’s expected that the South American region will have a larger share in global diamond sales.
Despite the global economic crisis, diamond retailers showed they are capable of coming up with something innovative and keep the industry alive.
That is the key thing to maintain and increase the price of your product.
Based on everything above said, there is good reason to believe that the diamond industry will change but remain the popular.