Gold and oil prices are the highest they have been in years. The stock market — despite its recent instability–is still in five digits.

So what will happen to the price of polished? Thanks to De Beers, diamond prices have been less volatile than many other commodities. But will that last?

Indications are that diamonds will appreciate as much as inflation, as they have in the past. Despite its recent statement that it wants to sell off half its stockpile, De Beers is unlikely to do anything to hurt the market. Before they will sell anything, they will make sure there is demand first. In fact, the next sight is expected to be very small, even after the record sight a few months ago.

Chances are diamonds will not get any cheaper in the next Millennium. As new mines in Canada and elsewhere come on stream, overall rough supply could increase, but hopefully so will worldwide demand. In polished, we already see an increase in demand in the 3/4 carat and up better goods up to three carats. In the lower end, the full cuts and melee sizes are strong. Indian dealers complain of a chronic shortage of goods and say their prices are rising steadily.

If De Beers did lower prices of some categories at last month’s sight—as they seemed to indicate—no seller seems willing to admit it.