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.
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.
-
Is it time to ride the recovery in emerging markets?Interview What's the outlook for emerging markets? Gustavo Medeiros, head of research at Ashmore Group, gives his analysis and reviews progress in developing economies
-
Could the Enterprise Investment Scheme cut your tax bill?The Enterprise Investment Scheme is tax-efficient and potentially lucrative. Taking a chance on the scheme could trim your family’s IHT bill, says David Prosser
-
'Ride the recovery in emerging markets': Gustavo Medeiros of Ashmore Group tells MoneyWeek
Interview What's the outlook for emerging markets? Gustavo Medeiros, head of research at Ashmore Group, gives his analysis and reviews progress in developing economies
-
What is the Enterprise Investment Scheme and should you have one?
The Enterprise Investment Scheme is tax-efficient and potentially lucrative. Taking a chance on the scheme could trim your family’s IHT bill, says David Prosser
-
The alcohol industry is suffering as consumers sober up – is it still worth investing in the sector?Changing consumer tastes are rocking the alcohol industry, but the best players are adapting their strategies. Buy them while their shares are still cheap
-
A strange calm in creditCorporate bond markets remain remarkably relaxed, with yields that offer little compensation for risks
-
The City's big bet on green finance fails to pay outOpinion Insurers and banks are backing away from “green finance”, and there is not much sign of the green boom we were promised. That’s a problem for the City
-
Why is English football thriving – and can it last?What has gone so right for English football? The national team has found its feet; the Premier League is swimming in money and profits are soaring
-
Six top investment trusts for smaller stocksLiquidity constraints mean investment trusts are best placed to seize the juiciest opportunities
-
Could colour diamonds add a sparkle to your portfolio?Diamonds of various shades never go out of fashion, says Chris Carter
