Analysts predict a decline in the value of rough diamonds in 2017 due to an increase in supply as a result of new mines entering the Canadian market and the expansion of existing mines.
According to a report by Rapaport News, three mines are expected to enter the rough-diamond market early next year: Firestone Diamonds’ Liqhobong mine, Stornoway Diamond Corporation’s Renard mine, and the Gahcho Kué deposit, owned by De Beers and Mountain Province Diamonds. Combined, it is estimated these projects will produce approximately 7.1 million carats per year.
Kieron Hodgson, an industry analyst, predicts global production in 2017 may increase by 2.5 per cent to 130 million carats.
“With the new production coming on in early 2017, there may be certain categories that come under pressure, such as lower-value, commercial goods,” said Hodgson in the report. “Lower-value rough diamonds are more susceptible to price declines because they are more vulnerable to the impact of synthetics.”
