De Beers warned Wednesday that global diamond production will decline from 2020, which could push prices of the stones higher and make jewelry more expensive for consumers.
A dearth of major new diamond finds means that production might not keep up with ever-increasing demand from the US, China and India, the diamond cartel said, according to the Associated Press.
“Unless major new discoveries are made in the coming years, supply can be expected to decline gradually from 2020,” De Beers said, forecasting a tough road for the US$85 billion a year industry.
Existing mines in Botswana, South Africa and Namibia are becoming depleted and the need to dig deeper has made operations less profitable, it was quoted as saying.
De Beers said exploration has now turned to Angola, the Democratic Republic of Congo, Zimbabwe, the Siberian Arctic and Canada. The last major mine discovery came a decade ago in India.
Demand from the US, and China and India will likely create a seller’s market in the future.
“Even under scenarios of volatile or weaker global economic growth, demand for diamonds is expected to show positive real growth in the next decade,” De Beers was quoted as saying.
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