Demand For Diamonds Up, Pushes Costs Up Nearly Ten Percent

A report by a diamond industry analyst says that buyers can expect to pay as much as 10 percent more for diamonds this year. Demand for half-carat diamonds is unusually strong, and is outpacing the current supply. The wholesale price of a half-carat diamond will be about USD$2,500, and buyers can expect to pay more for the setting.

Worldwide demand for polished diamonds is expected to double by 2016, and is expected to outstrip mining production substantially. Mining production is expected to grow to about 20 million carats annually, or about 50% more than current production levels.

In addition to the cost of diamonds, consumers can also expect to pay higher prices for gold and other precious metals. Like diamonds, the supply of gold has not been keeping pace with demand. Investors are also buying gold as a hedge against inflation. Platinum, another metal growing in popularity for jewellery, is currently selling high and is expected to maintain its value into 2009.

None of this bodes well for the couples who are seeking wedding jewellery in 2008 and 2009.

Keywords: Wedding News, Weddingblog, Wedding

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