Bank of America: Diamond Prices to Go Up 15% in 2022
In an interview with financial news website MarketWatch, quoted by IDEX Online, Jason Fairclough, head of EMEA metals and mining research at Bank of America, said the organization expects diamond prices to rise 15% this year amid shortening supply of rough.
“We see the fundamentals remaining price-supportive short term; we expect global supply to peak at 114m carats in 2023,” Fairclough said in the interview.
According to Bank of America, diamond supply is now the lowest it’s been since the financial crisis of 2008. The bank added that the US currently accounts for half of global demand. The driving forces behind diamond price rise are the sanctions on Russia over its invasion of Ukraine, which “have resulted in acute shortages of rough, especially smaller goods.” The bank also cited China’s zero-tolerance policy on Covid,” which has impacted luxury spending.