This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

China And India Emerging As Drivers Of Diamond Demand

China and India Emerging as Drivers of Diamond Demand

In the western world, diamonds have been intimately linked to weddings and engagements since De Beers famously coined the slogan “a diamond is forever” in 1947. To the dismay of those watching their wallets, that has also meant that the coveted gems enjoy a close association with February's unofficial holiday: Valentine's Day. Now, increasingly wealthy consumers in eastern markets, specifically China and India, are emerging as major drivers of diamond demand as they adopt the tradition of marking these occasions with diamond jewelry.

Wealthy Chinese and Indian consumers to drive demand

The 2012-2013 Executive Summary from Rare Investment, a company that focuses on exposing clients to fancy-colored diamonds and other rare jewel investments, notes that in the coming years, China and India will drive demand for all types of diamonds, from low to high end.

In China, demand will largely be the result of the country's growing number of billionaires. The report quotes investment bank Credit Suisse (NYSE:CS) as stating that “[t]he number of billionaires in Asia rose to 351 last year from 245 in 2010” — that's compared to 332 in North America and just 251 in Europe. And that increase in billionaires has been accompanied by a “trickle-down effect in wealth across the country,” meaning that as a whole the Asian nation is primed to consume high-end luxury products like diamonds.

Rare Investment's report also notes that “India, alongside China, has been identified as the fastest growing market in the world for luxury jewelry over the next five years.” In fact, Indian consumers' desire for diamonds may eventually outpace their demand for gold. That's a considerable feat considering the fact that India is widely known as a gold-hungry country.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 16,472.37 +200.36 1.23%
S&P 500 1,951.36 +27.54 1.43%
NASDAQ 4,707.7750 +80.6910 1.74%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs