Report: Diamond Prices to Rise 6% per Year till 2020

A new report by a Canadian financial services provider predicts that the market price of rough diamonds will rise consistently until the end of the decade, Mining.com reports. The Bank of Montreal Capital Markets report anticipates that for every year between now and 2020, diamond prices will rise by 6% annually.

Furthermore, the BMO report states that the diamond industry will not resume production levels seen in 2007, when diamond mining peaked globally and 160 million carats of rough diamonds were extracted from the ground. BMO based its conclusions on the fact that new mines are not being discovered at rates that they were in the past, and that currently actively mines are beginning to show signs of reduced production, as the easily available stones near ground level are extracted, leaving behind the deeper, harder-to-reach material.

The report notes that rough diamond prices have risen 9% so far this year, and they expect the 6% annual increase to take effect from 2014.

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