MOSCOW, July 23. /TASS/. The average global prices of jewelry grade raw diamonds will surge from $125 per carat in 2024 to $189 per carat, prompted by the stable demand for the jewelry and the limited supply in coming years, the Kept audit and consulting firm said in its presentation.
High raw diamond inventories applied pressure on the prices of raw and cut diamonds but the limited supply in coming years may result in more than 50% price upsurge, the company said in its presentation.
No dramatic consumption growth is expected in the short term and it will remain at the level of about $80 bln for two-three years to come, Kept Partner Igor Korotetsky said.
"Since production volumes, according to forecast, will continue to decline accordingly, the supply of jewelry grade raw diamonds will respectively drop also within some midterm," he noted. "Accordingly, we have the stable demand for jewelry. We have the limited supply in years to come. They [raw diamonds] may accordingly have the price increased by about 50% in two-three years," Korotetsky said. The expert does not rule out some "black swans" to emerge that will influence the market but if the offer is limited and the demand remains stable, then the price per carat may eventually end at about $189.
The diamond industry has resources at present that may be enough for about 72 years against the current annual mining of about 110 mln carats, Korotetsky said. This level depends on technologies and feasibility of diamond mining, he noted.
"It turns out when looking at current technologies and viability, the global reserves are somewhat smaller. They turn out to be about 1.7-1.9 bln carats and this stands at 17 years and not at 72 thus far," the expert said. Such global forecast is made on condition that no greenfields come on stream, he added.