Gem sales hit record high

Gem prices are set to rebound now that values have hit bottom, according De Beers, as sales reach a record high.

The world's biggest diamond producer forecasts a positive year ahead for the sector. The holiday season saw softer than expected sale, admits De Beer, but CEO Philippe Mellier believes that the industry is set for a turnaround, as both cutters and polishers restock.

"We should see a slight rebound," he told Bloomberg, noting that polished and rough prices have both bottomed out.

Indeed, values for rough diamonds dipped in the final three months of 2014, thanks to tightened credit from lenders. Sales, though, climbed 3 per cent in 2014 to reach a record total of $81 billion.

Sales in the US jumped 7 per cent, while China, the second biggest diamond market in the world, saw sales rise 6 per cent.

"The US may be mature but it is still our biggest market," Mellier added in De Beers' latest market report.

"There are two kinds of purchase – the first-time buyer ahead of marriage and then repeat purchases. The older you are, usually the more affluent you are and then the bigger the diamond – for anniversaries, birthdays. It is a virtuous cycle and is very important to us."

The company launched the famous slogan "Diamonds are Forever" in 1939, a saying that has gone on to inspire a Bond theme and evidently still inspires consumers today. Indeed, 80 per cent of engaged couples in the US buy a diamong ring, notes Mellier.