Diamond Follows Gold in China, India
Source: Commodity Online (12/6/10)
"India, China are the centers of the future diamond industry on all fronts."
According to Vasant Mehta, ex-chairman, Gem and Jewelry Promotion Council, the apex trade body in India, India and China are the centers of future diamond industry.
"As the world moves into a new era post the crisis, there are many aspects that have changed fundamentally. Key to this is the shift in focus. While the U.S. still remains a large diamond jewelry consuming center, there can be no doubt that India and China are the centers of the future for the diamond industry on all fronts. There are those who keep closely monitoring the developments in both these countries as if the two are in a race," Mehta said.
Mehta said there are many Indian companies which are already developing ties, cooperation and relationships with China on many fronts.
Diamond sales soared from US$230 million in 1995 to US$1.2 billion in 2007. Many agree that if current trend is to continue China will soon overtake the U.S. as the largest diamond consumer market, in a matter of years.
Diamonds were first connected with luxury, but now consumption is becoming more habitual. Diamonds were first in China connected with luxury but now diamond consumption is changing from luxurious to more habitual consumption. India is the top diamond cutting country because of its skilled, cheap labor force, but China is catching up.
According to De Beers, India and China will account for 20% of consumption in 2016.