Working to promote their own diamond products made from the highest quality raw materials

The fact that prices for rough diamonds will increase in the short term will not be doubted by almost all professional participants of the diamond market. However, no one dares to give an accurate forecast - how the price will grow depending on the quality of the raw materials. Analysts and representatives of large companies prefer to limit themselves to general formulations, like recently expressed by representatives of Rio Tinto that "between 2008 and 2016, the demand for diamonds will significantly exceed the supply." Meanwhile, the polished diamond market in the second quarter of 2008 has already shown a curious trend: the prices for large diamonds with high characteristics increased sharply (from 10% to 15% for stones of excellent grade with weight from 1 to 3 carats and above), and small diamonds remained Practically unchanged. Looks like,

There are at least three serious factors suggesting that in the foreseeable future it will be possible to observe an exponential increase in prices - but only for large-scale high-quality raw materials, but the fate of the "Indian product" seems unenviable. Among such factors are the following:

- The processes of vertical integration in the industry continue to develop, practically all major producers of raw materials: De Beers, ALROSA, Rio Tinto, Harry Winston Diamond Corporation (formerly Aber Diamond Corporation), Leviev Group are working to promote their own diamond products made from the highest quality raw materials controlled They deposits, so the supply of this raw material on the market decreases;

- the share of small-sized low-quality raw materials in the section of current extraction of the main indigenous deposits increases;

- Dealers working with the "Indian goods" created a huge speculative bubble - an uncontrolled runoff, roughly equal to the world's annual production of raw materials of this class. Lobbyist efforts of dealers allowed to get bank loans for these diamonds, and money went to branches that are more attractive than lapidary. Analysts of financial markets give a rather negative forecast for the development of leading US banks for the second half of 2008 - their shares are falling rapidly against the backdrop of soaring oil prices and depressing information from the US labor market. Of course, this process can not but affect the banks of India and South-East Asia, forced like their American counterparts to get rid of "bad" loans and unreliable assets. Therefore, the probability that in the autumn the diamond pledge will be thrown out on the market and the prices for "

Against this background, events in the Russian diamond market are very noteworthy. ALROSA is in no hurry to hold a traditional auction for diamonds weighing more than 10.8 carats, obviously waiting for the moment when prices reach another historic high. And on May 26, 2008, Russian President Dmitry Medvedev signed Decree No. 848 "On Amendments to the Regulations on the Diamond Fund of the Russian Federation ...". Changes are made only in two sub-items, but their meaning significantly changes the practice of trade in rough diamonds in Russia and reflects the main trend of the global diamond market for a sharp rise in price of high-quality raw materials.

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