The Value of a Diamond
Each diamond is unique – a gemological marvel formed billions of years ago under extraordinary heat and pressure.
Celebrating meaningful moments – emotion, gratitude, attachment, commitment, and love. Diamonds are universally admired, appreciated and desired.
The modern diamond market grew out of the major diamond mine discoveries of the 1870s in South Africa and was effectively managed as a monopoly until 2001. Today, Botswana, Russia, and Canada are the world’s top three diamond producing countries by value respectively. Ninety-nine per cent of natural diamonds are used in jewellery, with only one per cent used for industrial purposes.
Arctic Canadian Diamond Company Ltd. mines rough diamonds from the Ekati Diamond Mine, located in Canada’s Northwest Territories. Ekati is Canada’s first surface and underground diamond mine and is renowned for the premium gem quality diamonds it produces.
The value of a rough diamond is
calculated using four criteria:
The Diamond Market
Worldwide production of rough diamonds in 2020 amounted to approximately 108 million carats, at an average price of US$86 per carat, for a total market of US$9.2 billion.
The long-term outlook for the diamond market remains positive, with demand expected to outpace supply starting in 2019. World diamond jewelry demand in the next 10 years is forecast to grow at an average annual rate of about 3% to 4%, in real dollars. On the other hand, rough diamond supply volumes will rise in 2017, then plateau and fall off from 2020 onwards. This forecast reflects fundamental supply and demand factors rather than short-term fluctuations or unforeseeable long-term macroeconomic shifts.
The international diamond jewelry market is large, amounting to approximately US$80 billion at retail in 2016. China, India and the US are expected to continue being major diamond jewelry consumers, driving rough-diamond demand.
Global diamond jewelry demand was flat in 2016. The US continued along its growth path. However, demand in India was hit by demonetization in the fourth quarter offsetting some of this growth. China and Hong Kong also saw weaker demand in US dollar terms as a result of weaker macroeconomics and a weaker currency.