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Diamond Price on the Market

Introduction

The year 2012 is a major phase in the market of diamonds. The future of diamond shows that the demand and supply gap will get wider. In the years to come the demand for the diamonds will keep on increasing and the supply will reduce. Among the countries, the most demand of diamonds in by USA, followed by European countries, Japan, Indian and China are also among the demanding nations of diamonds in the world. The largest suppliers of diamonds in the world carried out an analysis that the demand of diamonds will increase by 33% in the years to come but due to the slow growth of diamonds will not be sufficient to fulfill the increasing demands of the world. It has also been predicted that the prices of the diamonds will be increasing by 55% from 2008 onwards.

Discussion

The demand for diamonds will be increasing at a faster rate in the next ten years. Many of the producers of diamond are doing researches in order to find new mines of diamonds to erase the gap between demand and supply. There are several factors that affect the demand and supply of diamonds all over the world. Diamond is considered a luxury item in terms of economics. The gap between demand and supply will increase the prices of diamonds in the future. The decrease in supply will lead towards an increase in the demand and increasing the prices that will result in setting up a new equilibrium price.

Diamond is a scarce natural resource that can deplete therefore as the growth of this natural resource decrease the prices will tend to rise when the people demanding diamonds will increase more than its suppliers. Recently Russia has been able to discover new diamonds ...