While the diamond industry suffered during the Covid-19 crisis, it still managed to keep its sparkle. Lockdowns, travel restrictions and economic uncertainty pushed diamond jewelry sales down by 15 percent in 2020 with most of the decline happening in the first and second quarters. But faced with store closures, diamond retail sales pivoted online, and benefited from consumers who could not spend on travel or experiences choosing diamond jewelry instead. Demand returned during the fourth quarter, culminating in a strong holiday season across the globe.
The industry proved its resilience in the face of an economic downturn as consumers continue to see its value. The boost was driven by holiday jewelry sales, particularly in the US and China, which saw a 5–10 percent and 15 percent –20 percent rise in the fourth quarter, respectively, year-on-year. Diamond jewelry is expected to perform better than the global personal luxury market in 2020, with only a 15 percent drop compared to a 22 percent decline in luxury.
Rough diamond production continued its downward trend, falling to 111 million carats. After peaking at 152 million carats in 2017, rough diamond production has declined by about 5 percent per year. In 2020, production decreased by 20 percent compared to 2019 levels. Notwithstanding changes, the mix of diamonds remained largely constant, with medium and large diamonds accounting for 25 percent of production volume in carats but around 70 to 80 percent in value in US dollars. [Read more…] about Brilliant under pressure: Global diamond market shows resilience in an unprecedented year
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