Diamond prices in 2011 illustrated by a diamond index
Diamond prices are based on many factors. But basic economics tell us it’s a matter of supply and demand. The supply of diamonds is quite steady, although there are some possibilities on the horizon in the form of synthetic diamonds. The demand for diamonds on the other hand is booming by growing countries like China and India.
In a recent article we mentioned a few reasons why 2011 was an excellent year for the diamond sector in Antwerp. To better illustrate these numbers we’ll show you a graph and give some extra information further explaining the progress we made in 2011.
Impressive growth mid 2011
A Diamond Index is based on many factors. The data of the graph below is based on data of over 75% of the global market of diamonds. The graph shows the evolution of diamond prices from February 2011 until January 2012. There is an explosive growth from May through June, with a small dip afterwards. Overall diamond prices have grown significantly year over year.
There is a large variety in diamonds based on the 4 C’s: carat weight, cut, colour and clariy. But there’s also a major difference between polished and raw diamonds for example. Below we give some more information on the main contributors to the market of cut diamonds dubbed the diamond drivers.
Round diamonds from 1 carat to 2.5 carat are the most popular
The round diamond cut ramains the most popular diamond cut, while the Princess cut takes second place by a fair margin. We’ll also discuss the most popular diamond sizes. The 1 carat through 1.5 carat bracket is the most popular, this can be explained partly by the large demand of this size for diamond jewellery and loose diamonds for custom-made jewellery, as wel as 1-1.5 carat diamonds being a safe investment and an ideal size to embed into objects like clothes and other luxury goods.
The 2 carat to 2.5 carat bracket is also very popular, as is the 1.5 carat to 2 carat bracket. Diamonds smaller than 1 carat and larger than 2.5 carat, however, are either too rare or too small for common applications.