This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

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

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs