Overall, in 2021, after a fall in 2019 and 2020 of 7% and 11%, respectively, rough diamond prices grew by 21%, says the 11th Global Diamond Industry Report: 'A brilliant recovery shapes up', jointly prepared by AWDC and leading consultancy agency Bain & Company.
Prices for polished diamonds, which declined by 3% and 5% in 2019 and 2020, respectively, increased only 9% year over year. By the end of 2021, both rough and polished prices were close to pre-pandemic levels and historic averages but still below their historic maximums (20% below for polished and 26% below for rough diamonds).
In 2021, it notes, revenue increased 62% in the diamond mining segment, 55% for cutting and polishing, and 29% for diamond jewelry retail—all rising above pre-pandemic levels (+13%, +16%, +11%, respectively), says the report.
It notes that for the first time in several years, there was no shortage in diamond financing.
Lab-grown diamonds continued to diverge into a separate, more affordable jewelry category. The segment saw continued demand growth and price decreases relative to natural-mined diamonds as lab-grown diamond supply increased and technologies advanced; the average polished lab-grown retail price declined to 30% and the average wholesale price to 14% of natural prices, down from 35% and 20% in 2020, respectively.
Demand for diamond jewelry and polished and rough diamonds is expected to grow through the first half of 2022, says the report.
Alex Shishlo for Rough&Polished
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