The diamond industry witnessed a bumpy run in 2012. The disagreements between the Democrats and Republicans in Washington have made consumers nervous about spending. As a result, one of the first casualties is demand for polished diamonds. This, combined with lower growth rates in two of the world’s key diamond markets (India and China), has resulted in pressure on the prices of polished diamonds.
However, things are expected to look up in 2013, with growth in demand from the middle class in India and China. Nevertheless, while there is an expected optimism about 2013, the year has started with many similar characteristics of 2012, including weak market demand and significant caution among industry players and consumers.
Also in this report:
- Supply and demand
- Key developments
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