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Diamond Solitaire Rings: Why Now is the Time to Buy Yours
One of the things that makes diamonds so valuable and sought after is the fact that they are rare. Experts are predicting that this rarity value will increase in coming years due to a combination of depleted supply, increasing demand in the Asian economies, and tightening of lending practices by banks. People who expect to get engaged in the next few years might be wise to buy those diamond solitaire rings now.
Rough diamond production hit its peak in 2006, and when prices fell in 2012, mining companies cut their production. Diamond miners are expected to increase their supply by 4.8% through 2018, but by 2019 the world supply will begin to decrease. Miners must work harder to get the few rough diamonds that are left in current veins, and there are very few new mines scheduled to open. This will make the supply of diamond solitaire rings much smaller.
The economic downturn that hit the United States and Europe in 2008 affected the diamond market in those areas, but the economies of China and India are continuing to grow. Middle class Asians are beginning to adopt the Western custom of giving diamond solitaire rings to celebrate engagements, and this increased overall world-wide diamond sales almost 2% in 2012. As the middle class continues to grow in these areas, demand for luxury items such as diamond solitaire rings is expected to grow with it, but with supply expected to decrease, prices are certain to go up.
To further complicate matters, banks that have traditionally financed the diamond industry have tightened their rules, making it more difficult for diamond traders to find funding. Alternative sources may be difficult to locate because most lending institutions require better performance and financial data than the industry is used to providing. Despite rising demand and dwindling supply, a lack of financial backing may cause smaller diamond firms to have trouble filling orders for diamond solitaire rings.
Future of Diamonds
The Global Diamond Report of 2013 predicts that mining companies will need to operate more efficiently in the future, and that smaller businesses involved in cutting, polishing or marketing diamonds will be squeezed out of the shrinking market. Retailers will have difficulty finding stones of sufficient quality for items like diamond solitaire rings, and some firms have already formed partnerships with mining companies in an effort to ensure supply. Some investors will have the capital to turn the decreasing supply of diamonds to their advantage. If you think you will be in the market for a diamond engagement, wedding or eternity ring in the next several years, contact Juno Jewelry to find out how to secure a unique piece of jewelry at today's prices, before the market goes up.