Lack of Financing May Hinder Diamond Market Growth

Consultancy Bain & Co. said in its annual diamond industry report that although supply-demand fundamentals for the gems remain strong, market growth may be hindered if companies can’t gain access to financing.

According to a Reuters summary of the report, the firm sees demand for rough diamonds growing 4 to 5 percent a year for the next decade.

As quoted in the market news:

‘The economic peaks and valleys that the global diamond market experienced over the last few years are steady, at least for the time being, but the industry cannot afford to get too comfortable,’ said Olya Linde, lead author and a Bain partner.

‘Macroeconomics, along with other factors – financing, marketing challenges, undisclosed synthetic diamonds, environmental concerns, social awareness, and even country-specific preferences – stand in the way of an easy, straight path to sustained diamond industry growth over the long-term.’

Click here to read the full Reuters report.