Diamonds are the most popular engagement ring choice for couples in America. In fact, there is a diamond industry statistic that says that 95% of engagement rings contain diamonds.
However, do you know anything about the diamond industry? If not, this blog post will give you all the information you need to know so your business can succeed.
- Diamond Industry Overview
- Why are Diamonds Highly Regarded?
- Diamond Industry Statistics and Facts
- Which Companies are Dominant in Processing the Diamond Structures?
- The Value Chain of Polished Diamonds
- What About Industrial Diamonds?
- Is the Diamond Industry Growing?
- What About Lab-Grown Diamonds?
- Should You Invest in Diamonds?
- Final Thoughts
Diamond Industry Overview
The diamond industry is one of the most profitable industries in the world. It generates billions annually and employs over 600,000 people worldwide.
However, many people are unaware of what happens behind the scenes to produce all those beautiful diamonds that they see at their local jewelry store or on television.
Why are Diamonds Highly Regarded?
As you may already know, diamonds are highly considered in both the manufacturing and jewelry industries.
The main reason why diamonds are so highly regarded is that they have a lot of intrinsic value. Diamonds can be used to cut and drill other materials, which makes them extremely useful in a wide range of industries including construction or automotive.
Diamonds also shine brightly when exposed to ultraviolet light, making them great for industrial lighting purposes as well. Besides that, they’re also considered for their beauty and shine that lasts forever.
This is why this gemstone makes up for one of the most profitable industries in the world.
Diamond Industry Statistics and Facts
- Being the hardest mineral on earth, diamonds are the most popular gemstones that have ever been discovered.
- Diamonds can be found in all colors of the rainbow, although not every color is considered a real diamond. True diamonds are those transparent stones that appear to be colorless because they contain no hue or shade.
- In 2019, approximately 142 million carats of diamonds were mined throughout the world.
- Australia, Canada, the Democratic Republic of Congo, Botswana, South Africa, and Russia are among the top diamond-producing nations.
- The world’s supply is thought to be around 1.2 billion carats with Russia having the world’s greatest reserves, estimated to be 650 million carats.
Which Companies are Dominant in Processing the Diamond Structures?
More than 60 percent of the world’s mined diamond production comes from three countries: Russia’s Alrosa, De Beers from Luxembourg, and British-Australian Rio Tinto.
Mined diamonds are largely processed and sold at the world’s major diamond centers, including:
- New York
- Hong Kong
- Mumbai, and
- Tel Aviv.
Diamonds are not traded on a global market like precious metals. Nonetheless, since 1960, the worldwide diamond price has risen by more than tenfold to its current level. As a result, the diamond industry has grown considerably to produce an estimated $15 billion in annual revenue.
The Value Chain of Polished Diamonds
In terms of value, the diamond industry is highly concentrated. In fact:
- The top five producers account for about 75 percent of world production and 80 percent of global trade in polished diamonds.
- Diamonds become significantly more valuable after they are produced, refined, and sold. Rough diamond sales in 2019 had a global value of around $13.9 billion.
- The value of the diamond industry has increased by nearly two times since then, to 26.7 billion dollars after they were polished. The worldwide diamond jewelry market was worth approximately 79 billion dollars in 2019.
- With a 48 percent share of worldwide demand in 2019, the United States is responsible for half of the world’s polished diamond demand.
What About Industrial Diamonds?
A considerable percentage of diamonds are used for industrial purposes. Industrial applications include diamond tools that drill into hard materials, such as iron and steel, glass etching, gemstone cutting, and laser welding of metals to cut the need for arc welders at metal shops, among many more applications.
This is because nearly half of all the mined diamonds are unsuitable for use as gemstones. While there isn’t a clear-cut estimation of the industrial use of diamonds, rough estimates put it at billions of dollars annually.
Diamonds are an integral part of the United States economy and hold a significant role in many American companies. Therefore, they can be considered as important exports for the country.
So, while rough diamonds might be less glamorous, they are still highly considered for industrial purposes. It’s safe to say then that only a minimal amount of this gemstone goes to waste.
Is the Diamond Industry Growing?
The diamond industry is growing. In recent years, the demand for diamonds has been increasing as more and more people are able to afford them due to technological advancements that have made them cheaper to produce.
The worldwide diamond production increased by more than 20 percent from the year 2015 to 2016, with a total output of over 130 million carats in 2016 alone. This is only expected to grow further as new technologies are being developed and implemented into mining operations.
In conclusion, there is an increase in the demand for diamonds and a growth in the diamond industry as a whole.
What About Lab-Grown Diamonds?
It is important to note that lab-created diamonds are not the same as synthetic ones.
- Synthetic stones have completely different chemical and physical properties than real diamonds, they include carbonados and cubic zirconia among others.
- Lab-grown diamonds also cannot be distinguished from mined stones with a naked eye or in most cases even with a microscope. This, however, does not mean that you cannot get a lower price when shopping for lab-created diamonds.
- Indeed, some companies are already offering discounts on these stones without affecting their quality or appearance in any way. This is only possible because of the significantly reduced mining costs and smaller margins throughout the supply chain (fewer middlemen).
Should You Invest in Diamonds?
Whether for industrial or ornamental purposes, diamonds have been a favorite of many for generations. The high demand and value have encouraged the entire industry to expand beyond its initial boundaries.
While it is still impossible to predict what will happen in future years due to various circumstances that can influence prices, the above statistics can give you an idea of where the trend is headed.
You can definitely invest in diamonds to make a profit, but you should learn more about the industry and how it works to make the right choice.
There is no doubt that diamonds are beautiful and valuable. For some, the high value will be reason enough for an investment of their resources into this industry.
However, a more informed decision can lead to greater success in your endeavors with diamond investments.