• During the period from January 2003 and December 2012, prices of one-carat diamonds rose by almost 68 percent. Prices of three-carat diamonds rose by about 146 percent and prices of five-carat diamonds rose by almost 164 percent.
  • Over the past 12 years, high-grade natural diamonds have outperformed the leading stock indices by as much as 170 percent, or on average 14 percent per annum.
  • Diamond prices have increased at a rate that is consistently higher than the rate of inflation. An international study published in Financial Research Letters in 2012 showed that annual returns for white and colored diamonds between 1999 and 2010 stood at 6.4 percent and 2.9 percent above inflation.
  • Diamond price indices have shown low and stable correlations with the traditional financial markets, and also have exhibited low correlations with precious metals, even when the metals exhibit high correlations with one another.
  • Diamonds have shown themselves to be less volatile that other precious commodities. According to Bain and Co, between 2004 and 2011, while the annual price volatility of silver stood at 37 percent, platinum at 27 percent and gold 19 percent, with diamonds annual price volatility was only 9 percent. 
  • Indications are that the positive performance of diamond prices over the past decade will not only persist, but most probably accelerate. Simply stated, demand for polished natural diamonds is expected rise at a rate that is significantly higher than the potential increase in the supply of rough diamonds. 
  • Prices of natural diamonds are forecast to rise strongly over the remainder of the decade, as the result of demand outpacing supply. According to Bain & Co., while demand for polished diamonds will expand by 6.4 percent in terms of value annually over the next decade, largely due to rising demand from newly affluent Chinese and Indian consumers, rough diamond supply will only grow at a compound annual rate of 2.0 percent globally. 

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