|
|
Global Precious Metals and Minerals Industry Trends
Source: DataMonitor 1
Gem quality diamonds and industrial diamonds combined represent a 50% share of the world’s global precious metals and minerals market. Therefore, trends in the diamond industry can be proxied through an analysis of the market for precious metals and minerals. As you can see from the chart above, the industry is growing steadily, at an average annual growth rate of 16.3% between 2002 and 2006. The market value is steadily increasing each year. The market continues to grow through time, but at a slowly decreasing rate. This could be explained by the accumulation of diamonds as they are purchased. Unlike other precious metals and commodities that are traded and exchanged, diamonds are not liquid and rarely change hands once they are purchased as a finished product by the consumer.
Market forecasts anticipate that by 2011, the global precious metal and minerals market will be valued at over $77 billion. This would represent an 87.7% increase from 2006 at an average growth rate of 13.4% 2. The trend seems to predict that percentage growth will be high immediately following the current year and will slowly decrease, while still remaining positive over time. (see chart below)
| Global Precious Metals and Minerals Market Value ($ Billions) | ||
| Year | $ Billions | % Growth |
| 2002 | 22.4 | - |
| 2003 | 23.4 | 4.30% |
| 2004 | 26.7 | 14.40% |
| 2005 | 33.9 | 27.00% |
| 2006 | 41 | 21.00% |
| Compound Annual Growth Rate 2002-2006 | - |
16.30% |
source: DataMonitor, 2007 |
||
| Global Precious Metals and Minerals Market Value Predictions | ||
| Year | $ Billions | % Growth |
| 2006 | 41 | 21.00% |
| 2007 | 48.1 | 17.30% |
| 2008 | 55.2 | 14.80% |
| 2009 | 62.3 | 12.90% |
| 2010 | 69.4 | 11.40% |
| 2011 | 77 | 10.90% |
| Compound Annual Growth Rate 2006-2011 | 13.40% | |
| source: DataMonitor, 2007 |
All evidence points that the global diamond market is expanding, and it will continue to do so at least for the next 5 years. This is good news for both countries and firms, as there is plenty of room to gain when markets are increasing. However, what this data does not show is the qualitative changes in the global diamond industry, which are immensely important and will be discussed in the Social & Political section.