Rough and polished diamond sales in 2020 fell 15% amid the coronavirus pandemic. This is reported in a report published by the consulting company Bain & Company and the World Diamond Industry Center, writes Forbes.
What’s with the market
The main decline occurred in the first and second quarters of last year. The contraction in the diamond market has been fueled by “lockdowns, travel and tourism restrictions, and general economic uncertainty,” experts say.
However, against the backdrop of massive store closings, diamond retail sales went online, which helped support the market.
The report also notes that diamonds were able to partly recoup the fall thanks to consumers who could not spend their funds on travel and directed them to buy jewelry.
As a result, demand almost recovered in the fourth quarter, “and this culminated in the holiday season.”
Earlier in January, Bloomberg reported that global diamond sales had moved to rapid growth after years of stagnation.
The agency noted that the sector is booming again due to stalled travel, as consumers are investing in other purchases – including jewelry.
The authors of the report note that the diamond market “proved to be resilient in the face of the economic downturn as consumers continued to see the value of the market for themselves.”
For example, sales of polished diamonds in the US and China in the fourth quarter grew by 5-10% (15-20% y / y).