How Are Diamonds Formed?
Diamonds that are mined today were born more than 1000 million years ago. Highly pressurized carbon formed this seductive and valuable mineral in the Earth at depths over 150 kilometers and temperatures greater than 10,000 degrees Celsius. In dramatic geological events within the Earth's core, melting fluids far underneath the Earth's surface was pushed violently to the surface, causing volcanic eruptions. These explosions created conical pipes filled with kimberlite or hardened volcanic rock. Once the original volcanic cone was removed by gradual erosion, the kimberlite pipes containing diamond is exposed. Diamonds are only accidental fragments brought to the surface of the Earth hidden within this kimberlite rock.
Our Diamond Pricing
Like gold, the diamond industry has had high expectations for diamond demand, primarily due to the vast emerging middle class in India, China, and Latin America. Sales have indeed increased dramatically in those regions.
This would indicate that prices for diamonds should be steady to slightly higher. Prices for bigger, higher-quality diamonds have indeed risen, but prices for smaller, more commercial stones have remained relatively flat or increased only modestly.
Our rough and manufactured diamonds offered wholesale prices will vary between 20% to 40% less than our competitors.
We maintain 100% transparency at pricing with our clientele.
Diamond Demand
Demand is dictated by macroeconomic trends, or put, the state of the consumer. Prices are affected by economic booms and by recessions, like those in 2001 and 2008-2009. While prices did drop during the last global recession in 2008-2009, rough and polished diamond prices increased again in 2010 and 2011.
Because diamonds are a luxury item, demand growth is expected to parallel GDP growth. Slower GDP growth, which is now the expectation for the next couple of years. What's hot in diamonds right now? Big ones. The most significant increase in pricing has been for larger stones of two carats and above. For example, between 2006 and 2010, prices for a polished one-carat diamond went up 5 percent a year, but prices for a three-carat diamond went up 10 percent, while prices for a five-carat diamond increased 17 percent.
Irrespective of the market scenarios, Makhafola minerals offers you a wide range of competitive prices.
Diamond Supply
It includes production levels and sales of stockpiles of diamonds. For example, when Russia and Australia brought large mines onto the market in the 1980s, supplies increased, and prices dropped.
On the supply side, the diamond industry has a problem similar to the gold business — known reserves are declining, costs are going up, and grades are lower.
Makhafola minerals price list is stable and transparent.
