AWDC's Fischler Sees Polished Rising 5-10% in 2014

(IDEX Online) – Prices of rough diamonds may rise by 5 to 10 percent this year due to recovering demand for jewelry in developed and emerging markets, according to Antwerp World Diamond Centre (AWDC) President Stephane Fischler.

And rising polished prices are likely to boost rough prices even more, he said.

"We have already had an increase in rough prices in the first quarter. They could gain up to 5 percent more by the end of the year," Fischler told Reuters. There is a "healthy outlook" for rough diamond prices this year, he added.

Market players, including the major producers, De Beers and Alrosa, reported good demand for polished goods in the first quarter of 2014.

The world's largest retail diamond market, the United States, will see growth of 4 to 8 percent annually in its jewelry market for the next four years, according to Equity Communications.

China, the second-largest diamond market, will also post a rise in its wedding jewelry sales as the disposable incomes of growing middle classes rise.

Meanwhile, Fischler said he had "very good hopes" of a resurgence in European demand and said Latin America is already emerging as a market with good demand potential.

And Africa could become a significant buyer of polished diamonds in the long term, he said. "Don't discount Africa 20-30 years from now. Of course, they're starting from a very low base so 7-10 percent (annual growth) doesn't mean much, but there is an emerging middle class in Africa and this market will develop."