Diamond Forecast 2020

 
12.12.2019 | Diamonds | Industry News | Investment

As 2020 commences and with it the turn of a brand new decade, we’d like to share our predictions for diamond, precious stone, and high jewelry trends for the upcoming year.

Dehres has held its position as a pioneer within the industry for thirty-five years.  Our expertise in mining, sourcing, manufacturing, purchasing, and selling to, both, private and corporate clients give us a comprehensive and well-rounded understanding of the current situation. Our founder, Ephraim Zion, a significant industry leader, and staff elaborate.

2019 Recap

The year 2019 was characterized by challenges for the diamond and luxury industries due to economic uncertainty, political instability and a precarious geopolitical situation. Economy wise, we have witnessed various fluctuating stock markets, sharp volatility in share prices and financial turmoil that resulted in huge losses for the various equity fund management companies. The worsening trade conflict between the U.S. and China, as well as, protest movements across Hong Kong and other European and Latin American countries reduced consumer confidence.

All these factors weighed heavily in terms of consumer demand and undermined customers’ confidence. This resulted in a slowdown in the luxury market and caused some oversupply and softening of diamond prices in certain categories.

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Looking up in 2020

However, looking towards this year 2020 we are optimistic about improvements in inventory levels. Mine supply and manufacturing cuts leave us witnessing various shortages in the higher end sector of the market. This could help lift prices back to a steady equilibrium, which we hope will continue to rise in the second half of the year. Ultimately, we feel that we have reached bottom and are already seeing signs that prices are beginning to strengthen.

Signing phase 1 of the trade deal with China and the US this month is expected to create a positive sentiment in the business world and hence consumer confidence, which is so essential in supporting and sustaining the consumption of luxury products in general and diamonds, in particular.

 EMERALD DIAMOND TENNIS BRACELET

 

The Outcome

In early January we’ve found ourselves lacking inventory for certain high quality and large stones. This shortage is extremely promising to us especially seeing how their prices are already increasing in order to match the increasing demand and depleted supply.

Consequently, we believe that Q1 and Q2 of 2020 present themselves to be the perfect time to purchase such higher-end diamonds. Specifically, we recommend investing in larger diamonds with high to medium color and clarity, prior to their expected rise in price.

We also advise purchasing fancy color diamonds. Diamonds, especially those of high quality, are one of those rare luxury goods whose value won’t diminish over time. This is especially true for fancy color diamonds. Their minimal supply, which is continues to dwindle with the closure of Argyle mine, in addition to increasing demand (171% rise since 2005) make them good long term investments.  As an added bonus, their magnificent beauty is unmatched and can be worn and admired by your friends and family.  

C-MIX

Finally, prices of yellow diamonds have been at an all-time low but a number of events have us anticipating a positive shift; namely, the appearance of the 128 carat Fancy Yellow Tiffany diamond worn by Lady Gaga at last year’s Oscar’s, which quickly went viral for being the 3rd most expensive piece of jewelry worn at the event. From our own experience, we’ve also noticed many choosing yellow diamonds for engagement rings.

Diamonds are beautiful symbols of love that are everlasting. They’re romantic gestures that mark monumental moments with those dear to us. And yet, they are also so much more than that. As a portable means of storing wealth with the potential of growing it, too, diamonds will always remain a strong asset by your side. Thus, we are optimistic about where the industry is headed in 2020.





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