2008

Even in Recession, Diamond Demand Will Outstrip Supply

May 2008

In a recent interview, Ori Temkin, chief executive of diamond polisher Steinmetz predicted that diamond demand will exceed supply in the next few years.

As one investing newsletter noted, many investors are nervous about diamonds because of the weakness of the U.S. economy. But strong demand from India, Middle East and China is increasing prices for "larger and better quality" diamonds. And it notes this will probably increase, especially with electricity shortages in producing economies.

"For this reason," writes investor Garry White, "I now like diamonds even more … A perfect storm is brewing on the commodity front over the next 5 to 10 years. If the world keeps up its insatiable demand for commodities, then watch out. There won’t be much left of anything."