It was an interesting year for the diamond market, production decreases at mines around the globe as retail closures and fractured supply chains weighed heavily on the diamond sector during this period of the ongoing pandemic. In order to soften the impact and to counter up the declines in mine output there was a drop in sales. In the second half of the past year there was an improvement in the demand fundamentals, although supply stayed depressed leading to the worsening of the diamond market’s underlying supply challenges.
Closure and staffing reductions related to COVID-19 worked to further reduce output by 20 percent. This is the lowest output since the 1990s. However, from June to December 2020 jewelry sales surged to grow and hit a record high. According to the diamond analyst, the shift seen in the past year is directly correlated to fear of currency devaluation. When lockdowns began to lift, there was resurgence in some diamond buying, especially during the holiday season of November to December, and a pick up in demand was recorded.
As far as wealth dislocation, people with money seemed to be doing quite okay, or even better, during the pandemic, while people without money have been the most impacted by economic conditions. Despite the recovery that took place for the diamond market in 2020, the impact of COVID-19 has weighed heavily on the sector. Companies should think of better ways to engage potential buyers and investors. As one of those heavily affected by the pandemic, retailers are expected to invest in their online presence in order to reach their clients that cannot physically visit their stores during the COVID-19 pandemic, thus offering a more macro view for future growth.
Mr. Mellier of De Beers once said, “We have to make sure that diamond remains a relevant luxury category”. He believes that diamonds will never lose their cachet, for no one will offer an iPad or an iPhone when one gets married, one will offer a diamond instead. Therefore it wouldn’t hurt to invest a bit in accessories that contain diamonds if one has the money to purchase them.
Ice Storm Gems is an online store that mainly focuses on diamond encrusted products. It offers a variety of watches, chains, rings, earrings, and bracelets for both men and women at a reasonable price. Considering the fact that they come from reputable brands and have diamonds on them this would be considered a good deal, especially if you are planning to invest them. Various items are categorized into different variations such as gold, brushed stainless steel, and fully iced out. This kind of variety ensures that customers can find what they want in the website.
