If you're looking for a diamond, industry analysts predict that costs will climb in the near future as a result of President Biden's executive order on Friday, which prohibits the import of Russian diamonds, caviar, and vodka in retaliation to the country's invasion of Ukraine.
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However Russia is the world's greatest diamond supplier by volume, accounting for almost one-third of the rough diamond market. This may come as a surprise to some. The government-backed mining firm Alrosa, which controls mines across Siberia's Yakutia region, supplies nearly all of Russia's diamonds. The mining corporation is owned by the Russian government, which owns a 33 percent share.
Because the United States accounts for over half of all worldwide diamond consumption, there will very certainly be some shortages.
However, not everyone expects a price reaction right away. According to industry analyst Edahn Golan, demand isn't skyrocketing right now. "There is no danger of a shortage or of producers (diamond polishers) rushing to buy or overpaying," says Edahn Golan Diamond Research & Data Ltd. founder Golan. "Although demand for diamond jewelry has grown dramatically in the last two years, rising inflation and gas prices, as well as recent global events, may have an influence on consumer demand in the United States."
More Americans are getting engaged with diamond rings and purchasing diamond jewelry, if the past year is any indicator. In 2021, sales of diamond jewelry in the United States are expected to reach a new high of $100 billion, representing a 51 percent rise over the previous year.
If the prohibition is kept in place for a long time, Zimnisky believes it will encourage investment and the development of new diamond projects in Canada, Brazil, and Australia.
Big mining firms such as De Beers and Rio Tinto still have a significant diamond inventory in the United States; you may just have to pay a little more.