Red-Hot Resources

"Luck is not chance, it’s toil; fortune’s expensive smile is earned.”

Thursday, January 25, 2007

Time for Diamonds to Shine

The “4 Cs” of diamonds are cut, color, clarity and carat. To this I would add one more “C” – China.

True, the United States, with just 5 percent of the global population, generates 28 percent of global GDP, and consumes about 51 percent of all global diamond jewelry by value.

But China is coming on strong. In the latter half of 2006, China's refined diamond imports jumped 194 percent year on year to 147 million U.S. dollars, according to the Shanghai Diamond Exchange. For the full year, China's imports and exports of diamonds hit a record high of 610 million U.S. dollars in 2006, jumping 44.4 percent year on year.

Rising wealth in Asia is fueling demand for the $70 billion diamond jewelry industry. The global diamond jewelry market will probably expand 6 percent to 7 percent, in line with last year's growth.

Asians are high-end consumers. Mark Aaron, a Tiffany spokesman, said, "Diamonds continue to be Tiffany's strongest category around the world." Jewelry with at least one diamond accounted for 43 percent of its sales last year, he added.


Check out my new gold and energy blog at