According to ALROSA's annual review of the investment diamond market, the demand for such stones continues to grow and is least susceptible to market fluctuations.
At a meeting with investment bank analysts and financial companies, the mining company’s representatives explained that the ruble price index for investment diamonds (MDIAMR2), calculated by the Moscow Exchange, has grown by 30% since its launch in 2022.
"Considering the emerging shortage of rough diamonds, the price for investment diamonds today is at an extremely attractive level for potential investors. We estimate the potential for value growth of this asset as very high," said Sergey Takhiev, Head of the Corporate Finance Department at ALROSA.
ALROSA noted that the luxury goods market grew by 8% - 10% in 2023 and reached a record volume of 1.5 trillion euros, and in the medium term, the diamond market will be affected by the increasing shortage of natural stones. According to the company, larger diamonds show a higher yield than smaller stones, since their supply is very limited.
"The range of diamonds larger than 5 carats, as well as fancy color diamonds, are the most suitable for investment. For comparison: the yield of diamonds weighing more than 10 carats for the same period was 44%," said Elena Sukhoveyeva, head of the ALROSA Diamond Exclusive program.
Theodor Lisovoy, Managing Editor, Rough&Polished
