The largest diamond mining company Alrosa warned: economically viable global reserves diamonds may only be enough for the next 20 years. This conclusion is based on current production rates and commodity prices.
According to company experts, the total volume of profitable reserves is about 1.8 billion carats. Approximately 90 million carats are mined worldwide each year. This calculation gives us a figure of two decades. However, the situation is not hopeless. If production volumes continue to decline, as is happening now, then the resources will last for a longer period – from 50 to 60 years.
Geography deposits also changes. The bulk of available reserves today are concentrated in Russia. There are also significant volumes in Africa, especially in Botswana and Angola. At the same time, the role of other major players, such as Australia and Canada, in the global market has become minimal.
The downward trend in production has already become a reality. According to Alrosa’s forecast, this year the global diamond production volume will be no more than 105 million carats. This is the lowest figure in the last twenty years.
What does this mean for buyers and the market? There will not be a sharp shortage or disappearance of diamonds – they remain an integral part of culture and the economy. But a gradual reduction in supply creates the foundation for rising prices. Experts expect that a recovery in the value of diamonds may begin in the foreseeable future. This makes investing in them more meaningful, and buying jewelry is a decision for the future.
Source: @dprom
