Diamond Prices Plunge 40% Over 2 Years
Demand Collapses in China, the World's 2nd Largest Market
Once the most valuable among all gemstones, diamonds are now struggling. Experts point to the decline in China's marriage rate as a key factor behind this trend, drawing significant attention.
On the 23rd (local time), Hong Kong's South China Morning Post (SCMP) reported that as diamond demand in China has sharply decreased, the global diamond market is also undergoing a restructuring.
The media cited a recent research report from Bank of America (BOA), stating that wholesale diamond prices have dropped by about 40% over the past two years. Paul Zimnisky, a diamond consultant based in New York, USA, analyzed, "This is because China's diamond demand plummeted last year," adding, "The industry is feeling the impact seriously."
China's diamond market is the second largest in the world after the United States, with an annual value of $9 billion. However, recently, Chinese consumers no longer buy diamonds. The reason lies in the 'decline in marriages.' Since it is customary to gift a diamond ring to a partner when proposing, fewer marriages mean young couples are less likely to seek diamonds.
Additionally, as diamond prices have fallen, diamonds?once valued as luxury goods and even investment assets?are increasingly being neglected, according to analyses.
China's number of marriages is expected to fall below 6.6 million this year, less than half of the number recorded about ten years ago in 2013. Severe youth unemployment, economic downturn, and changes in attitudes toward marriage and life are cited as causes for the decline in marriages.
Meanwhile, the number of people seeking synthetic diamonds instead of natural ones is increasing. Thanks to technological advancements, lab-grown diamonds now rival natural diamonds in color and surface patterns. The price of synthetic diamonds is only about 10% of that of natural diamonds. This shift in consumer patterns is also contributing to the overall decline in diamond prices.
Last year, the global synthetic diamond market reached $15.3 billion, with China accounting for a staggering 95% of production. China is already the world's largest producer of synthetic diamonds. Regarding this, the media explained, "Synthetic diamonds account for 15-20% of total precious metal demand," adding, "In 2015, it was only around 1%. This represents a very rapid growth rate."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
