Diamonds are starting to sparkle again, says Rachel Millard in The Daily Telegraph. The sector has been hit hard by Covid-19. The value of diamond imports to India, where the vast majority are cut and polished, collapsed from $1.5bn in February to just $1m in April. Yet prices have since recovered and the polishers are busier than ever. Diamond sellers have a Christmas sales surge to thank, say Thomas Biesheuvel and Yuliya Fedorinova on Bloomberg.
The industry had been in “the doldrums” for five years as wealthy shoppers splurged on luxury travel. Yet the virus has knocked out that competition. Still, some fear that the re-opening of the leisure industry later this year could mean the recovery proves a flash in the pan. Annual diamond jewellery sales are worth $80bn worldwide.
The diamond market faces a long-term challenge from artificial gemstones. They are chemically identical to natural diamonds and indistinguishable without specialist equipment. Industry giant De Beers has met the problem head-on.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
In 2018 it began selling synthetic diamonds for the first time, hoping to brand them as a cheap and cheerful but inferior product to the “real” thing. Early indications are that that strategy is working, says Millard. The premium a buyer pays for a natural diamond over a lab-grown one has widened of late. A natural diamond costs roughly $1,465 compared with $600 for an artificial equivalent.
-
Find tomorrow’s Asian giants while they are still smaller companiesOpinion Nitin Bajaj, portfolio manager of the Fidelity Asian Values trust, picks three Asian companies to invest in.
-
AI will maintain Moody’s market lead, says Stephen ConnollyOpinion Veteran data provider Moody's has adapted well to the modern world, and is one of Warren Buffett’s longest-held investments
-
Is BlackRock World Mining gearing for a recovery?Opinion After a frustrating year, BlackRock World Mining is positioned for growth and to capitalise on the sector's recovery
-
Should you limit exposure to US tech stocks?An end to the AI boom would shake both US funds and global trackers. Here’s one way to trim exposure to US tech stocks
-
The mystery of America’s gold and why an audit mattersHow much gold does the US actually have? Dominic Frisby explains why it matters
-
Art vs AI: artists’ uprising takes on the botsAI performs impressively, but it’s all based on human work that was taken without payment. The government thinks this is fine. Copyright holders beg to differ
-
The benefits of a stock bubbleOpinion We tend to think of stock bubbles as bad things but, as the dotcom craze shows, good things can come from them, says Matthew Lynn
-
Why CEOs deserve a pay riseOpinion The CEOs of big companies often come under fire for being grossly overpaid. But the truth, as per some economists, is the opposite. Do they merit a pay rise?
