A private research company said that manufacturers of low-quality jewelry diamonds from the next year will increase world production by 10-15 million carats.
The Equity Communications commentary to the 2013 Diamond Report, received by Rough & Polished via e-mail, says that low-quality jewelry manufacturers, such as Rio Tinto and mine operators in Zimbabwe, have completed development projects that will ensure this growth. The message does not list these projects.
Equity said that for diamond mining, there was a period of increasing production, which will last until 2018. Prior to this, over the past four years, global diamond production remained stable at around 124 million carats per year as a result of the global financial crisis.
According to Equity, which does not provide exact figures, the average cost of carat produced in the world of diamonds decreased last year - for the second time since 2002. The decline is due to a drop in the prices of high quality diamonds, as well as an increase in the production of low-quality diamonds.
"If we look at the dynamics of prices for 2012, producers of high-quality and expensive diamonds, such as Botswana or Canada, are not in a very good position, as luxury goods markets have lagged behind the active and successful 2011," declares Director of Equity Communications Tinashe Takafuma (Tinashe Takafuma).
"Meanwhile, producers of less expensive and quality diamonds - such as Russia and Zimbabwe - are showing good results. We associate this with the growing need for affordable jewelry in the fast-growing markets in India and China. "