Value of Global Diamond Production Up 26.5% in 2011, Volume Declines

The total value of global diamond production was declared at $14.4 billion, compared with $11.39 billion in 2010 and $8.26 billion in 2009.

At the same time, the volume of production declined 3.4 percent to 124 million carats in 2011. This compared to 128.3 million carats in 2010 and 122.2 million carats in 2010.

The figures are in line with IDEX Online Research forecasts.

The KP figures show that global production is not growing in volume, however demand is driving up prices. Although the global diamond market is currently experiencing a decline in polished and rough prices, the long-term forecast is for global production to remain within a narrow range of 122 to 125 million carats  over the next few years with the value of production continuing to increase.

Botswana's production increased to 22.9 million carats, worth $3.9 billion. This was a 4 percent increase in volume and a staggering 50.9 percent leap in value. The increase may, however, reflect a new way De Beers and Botswana calculate the value of production.