James Sanders of London Diamonds shares his thoughts on the diamond market and how it has rebounded despite a global crisis and will continue to do so heading into 2022.
Despite several global situations which could have caused very serious concern for almost every market worldwide, the diamond market has rebounded well and looks set to remain strong throughout the new year.
The COVID-19 pandemic has had a devastating impact on many industries. Countries that have managed to return fairly quickly to pre-pandemic levels and where the diamond market is strongest have seen a return to some normality, thanks, in most part, to the vaccination programme.
The diamond markets in both the United States and China have seen strong returns, and the sale of diamonds has become increasingly strong.
Table of Contents
Diamond suppliers struggle to meet demand
The giants of the diamond market saw their rough diamond sales top 2019 and 2020 levels, which is incredible when considering the roller coaster everyone has been on during these past few months.
Supply has not been able to keep up with demand, and understandably, prices are now increasing in the wholesale diamond market.
Retailers increase prices to capitalise on rebound
Diamond retailers will inevitably inflate the prices as a result of these increases. This is why it is more important than ever to work with a diamond business that provides an exceptional level of customer service whilst also providing diamonds at a fair price.
There’s no point paying over the odds for diamond rings to receive a sub-standard product and a service that leaves a lot to be desired. There is a history of these types of diamond scams within the industry, and that is something London Diamonds is trying to help improve by providing a bespoke service.
Polished diamond trading and emotional buying trends
Demand has risen in the diamond market across the board, including polished diamond sales. This has allowed retailers to store their existing inventory and refresh their stock after what was previously a more challenging market.
Perhaps the delayed weddings and the life-changing experience of COVID-19 has prompted more people to get engaged and, therefore, require an engagement ring or wedding jewellery. Diamond jewellery is also proving popular as a gift for oneself or to present as a gift to that special someone.
Whatever the reason for the surge in sales, diamond miners, producers and retailers are welcoming the rebound with open arms.
Online retail sales helping drive rebound
One area which has inevitably contributed to the diamond market rebound is online retail sales. The online jewellery shopping trend has accelerated during the pandemic, and this trend is set to continue in 2022.
There are plenty of continuing concerns for retailers in 2022 with the rise in inflation, tax rises, continued uncertainty over the pandemic and ongoing global supply chain issues.
But despite all this, consumers are still keen to spend, and it would seem many much prefer to do so now online. An online sales survey reported on Sky News suggests that people “favoured online shopping, with 34% stating they prefer it generally, 32% saying it is more efficient and 27% did not want to brave the weather.”
With more and more online retailers moving to enhance their online customer experience, the competition is moving away from the high street to online. Retail businesses seek more innovative ways to give their customers the very best experience.
Looking ahead and what’s in store for the diamond market
With the naturally mined diamonds and rough diamond market doing so well and polished dealers enjoying a reduction in inventory with increased buying, this is a good time to be a diamond jeweller.
As previously mentioned, prices are rising and will likely increase further. It remains to be seen how this will filter down to the high street retailers, but online and bespoke diamond jewellers who continue to buy from the wholesale market will always be able to obtain the fairest prices and provide a more tailored level of service.
Ethically sourced diamonds are, without a doubt, going to continue their trend in 2022. Consumers care more than ever where and how their diamonds are sourced and how that impacts the planet. Sustainability and ethics play an important part in how diamonds are now produced.
Ethical choices are another reason diamond businesses like London Diamonds only sell ethical diamonds and lab-grown diamonds. It’s important to be part of the solution and not the problem.
The diamond market has rebounded incredibly well, and with strong demand, should continue to remain robust over the coming months.
James Sanders London Diamonds is an entrepreneur and investor interested in AI, art and cryptocurrency. James Sanders is also MD of a London based business selling luxury diamonds and bespoke engagement rings without the inflated price tag.