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Diamond Market
Canadian Diamond Market
Articles of Interest



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With increased consumption and supply shortages anticipated, the future potential for profit in the diamond industry will likely surpass expectations. Forecasts suggest that new demand from Asia and the Middle East will drive consumption to exceed production as early as late 2007. However no new major mines are scheduled to begin production anywhere worldwide.

Canada could potentially host several more economically viable diamond deposits, yet remains relatively under-explored. Diamonds North recognizes the potential associated with discovering Canada's next diamond mine and is positioned to seize that opportunity.

Some important facts on the diamond market and Canadian diamond production are listed below:

? Global sales of diamonds are expected to grow 50% by 2010; therefore supply shortages are expected around 2007 1

? Diamond jewelry sales were strong in 2004 totaling US$61.5 billion worldwide. An increase of 8.7% from 2003. 2

GRAPH

The United States, which is the world's largest diamond jewelry market, accounted for more than half of all sales, grew by 8.2% to US$31.5 billion. 2

? The most significant growth occurred in the Middle East and Asia. The Indian market increased by 19% and the Chinese market again grew strongly and steadily by another 11%, following 8% in 2003. 2

? A new diamond tradition is emerging in Asia: the diamond wedding ring, which has achieved an acquisition rate of 1% for married couples in the 25 largest cities. 2

? With a total 2004 value of C$1.92-billion, diamonds are Canada's largest exported item to the E.U, somewhat ahead of wood pulp at C$1.4-billion. 2

? World natural diamond production for 2004 is estimated at 156 million carats with a value of US$11.8 billion. 2

? Production in South Africa is diminishing as many mines are being depleted and more expensive to operate. In addition, increased value of the local currency is also putting pressure on South African production. Currently five out of seven mines in South Africa are operating at a loss and are in danger of closure. 3

? Demand for rough diamonds is expected to increase annually by 7% rising from the current US$11.4 billion to US$16 to 18 billion by 2012. But in contrast, rough diamond production is anticipated to remain flat with annual sales estimates between US$9.5 to 13 billion. 4

1 Diamond Registry
2 De Beers' Diamond Trading Company
3 Globe and Mail -- July 26, 2005
4 Haywood X-Report а
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