Diamonds have had a good year so far. The prices big mining groups charge for rough diamonds rose by an average of 7% in the first half of 2014. And the long-term outlook is bullish. Production has stalled in recent years, after dropping from a record 180 million carats in 2005.
There has not been a major diamond mine discovery since the late 1990s, which implies that supplies will start dwindling in 2018, reckons Bain, a global management consultancy. Demand should grow by around 5% a year over the next decade.
America remains the biggest diamond market. It [...]