Following the current global economic slowdown, inventories are expected to return to normal working levels and supply is anticipated to decline further exacerbated by the recent closings of various mines and the suspension of diamond exploration as a result of the 2008-10 financial crisis. As a degree of normalcy returns to the marketplace, demand will drive diamond prices higher for the better part of a decade. De Beers recently stated that “new Asian demand will accelerate the depletion of the world’s existing diamond mines” and the supply shortfall “will become much accentuated over the next fifteen years.”
Polished diamond prices have fully recovered from the economic crisis and are now at all time high levels and price increases of at least five percent (5%) per annum are now forecast for the next five years. As a result, an anticipated gap of approximately $7.0-10.0 billion is expected to emerge between supply and demand and laboratory-created diamonds are expected to grow into a $1.5 billion to $2.0 billion market segment during that time.
The diamond industry anticipates a multi-billion dollar market opportunity for laboratory-created or “cultured” diamonds within five years. Scio Diamond’s single-crystal cultured diamonds are ideally suited for use in jewelry products requiring the highest quality gemstones. In addition to producing large solitaire stones, Scio Diamond’s cultured diamonds will be grown in matched color sets ranging in polished sizes from 5-points (.05 carats) to over 1-carat. The diamonds are best targeted at the following high quality cut diamond gemstone segments:
High-end gemstone jewelry
- High-quality matching goods of varying sizes
- Large white and fancy-colored solitaire diamonds
- Matched color and clarity diamond sets
Precision sizes and matched size diamonds
- Highest quality melee diamonds
- Bulk high volume jewelry manufacturing
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