US Diamond Trade to Rise with Trump Presidency

The BHB Group reports rough diamond prices recovered from 7 year lows in 2016.

The BHB Group is forecasting a more optimistic future for the multi billion-dollar diamond sector, with prices estimated to rise for polished as well as rough diamonds.

"The price of rough stones improved in 2016 from a decline to its lowest point in seven years," said Lee Donsen at The BHB Group.

"We believe that towards the end of the year, diamond prices could increase by as much as 5 percent per annum," added Donsen.

As Asian buying of diamonds stalls, Indian diamond cutters, who refine the majority of the world's precious stones, are staking their bets that Donald Trump's presidency will contribute to the growth of their largest market - the U.S.

With the hope that Trump's presidency will enhance the U.S. economy, India anticipatesthe growth of their exports to the U.S. to reach an increase of 10 - 15 percent to 15 percent.

Last year India's international exports increased by 12 percent with the import of rough diamonds increasing by more than 30 percent of the same number of months to meet the increased demand for polished stones. The U.S. is currently India's biggest diamond export market.

Many top jewelry suppliers anticipate an increase in employment and a rise in spending as a result of Trump's presidency forecasting more jobs and higher spending, especially in the luxury goods sector. Such a recovery in the U.S. will see dramatic price increases for the diamond industry.

On the flip side of the coin, call for luxury goods in China has decelerated largely due to a weakened yuan and the implementation of the nation's anti corruption policy.