The sale of diamonds during the pandemic grew rapidly due to lack of travel.

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Worldwide diamond sales started to row after a period of stagnation: retailers have been preparing for enormous contracts these past few years. Because of the pandemic diamonds were left without similarly expensive competition – such as travel or expensive restaurants, while the internet allowed people to purchase jewelry remotely.

According to the Bloomberg agency, diamond sales worldwide started to quickly recover after several years of stagnation.

There are rumors that the mining company De Beers is preparing to sign a $600 million contract for the shipping of raw diamond. The deal has not yet concluded, but if it does it’s set to become the largest raw diamond auction in three years. Despite De Beers raising their prices by 5%, the demand for diamonds has not vanished.

The rise in demand on key US and Chinese markets continued in the fourth quarter of 2020. The demand for raw diamond at the end of 2020 was surprisingly robust and stable. The same stability is expected in the first quarter of 2021. Market participants aim to fill the dramatically waning supply, depleted from festivities in Europe and the Chinese New Year.

The pandemic, strangely enough, initially hurt the growth, but now helps it. Over the course of several years, the diamonds’ competition in the luxury market included travel. Because right now due to COVID and quarantine such travel is largely stagnant, and consumers instead spend their money on other things – such as online shopping.

People not only learned to work remotely, but shop online, for diamonds as much as anything else. Before money was spent on travel or expensive dinners, but now part of those markets went over to diamonds. Online sales have almost doubled over the past year and reached almost 20% of all purchases, according to an analytical report by Bloomberg.

Currently it is uncertain whether the present demand boom will sustain. According to Bloomberg, certain participants already worry that the market is overheating. This may, for example, precede a bubble in 2021. Over the course of the last five years the ready diamond demand stayed around $80 billion. Today, with worldwide vaccination, other luxurious products are becoming accessible again, thus forecasting external problems in the future.

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