Diamond Demand Hits $82B High - De Beers

RAPAPORT...Global consumer demand for diamond jewelry grew 2% to anall-time record of $82 billion in 2017 amid a strong US market and a recoveryin greater China, De Beers reported Thursday.US demand rose 4% to $43 billion for the year as the keymarket enjoyed a strong economy and robust consumer confidence, the miner said.The nation was the leading driver of global growth for the fourth consecutiveyear, and represented more than half of total demand. The phenomenon of consumers buying pieces for themselvesexpanded to 33% of all US diamond-jewelry purchases, fueling the overallincrease, it added. "People around the world are spending more on diamondjewelry than ever before, and it's encouraging to see consumers in the US, theworld's largest and most mature market, leading the way," said De Beers CEOBruce Cleaver. Demand in mainland China increased 3% in local currency, andgrew 1% in dollar terms to $10 billion, De Beers said. That came from animprovement in economic conditions in the second half of 2017, as well as a20-year high in consumer confidence, the company added. The Hong Kong diamondmarket also recovered amid stronger local demand and a revival in spendingamong tourists from the mainland.Demand in India, Japan and the Gulf declined by alow-single-digit percentage in dollar terms due to economic factors, as well asthe impact of regulation and exchange-rate fluctuation, the company continued.Demand increased in other markets around the world. "The outlook for 2018 demand growth remains positive in mostof the main diamond-consuming countries, based on solid world economicprospects, positive consumer sentiment and continued investment from thediamond industry in category marketing," De Beers said.Image: Kwangmoozaa/Shutterstock