Sudden shortages have hit the world’s supply chain of specific products/items in the wake of Russia’s invasion of Ukraine. Such are wheat supply, oil, and other products used to come from Ukraine or companies sanctioned by world economies due to their association with the Russian Government.
Latest shortages are felt in the Jewelry Industry due to United States sanctions against one of the world’s largest Diamond Companies, i.e., Alrosa in Russia. Alrosa accounts for almost 30 percent of the diamond supply in the market.
Alrosa typically supplies small rough diamonds that are clustered around jewelry pieces. Due to this shortage, diamond cutters struggle to source diamonds and satisfy this demand; therefore, expect a rise of up to 20 percent, experts warn.
Once a dominant supplier of diamonds, De Beers cannot save the market, at least right now. Once upon a time, it was the market’s savior, using its stockpiles with the ability to control the market. Now, no more.
Unfortunately, this means your dream engagement ring will cost a bit more than usual or planned for, at least for now. But, this should by no means hinder you from acquiring the engagement ring you’ve been waiting for so long.
This market has always been innovative and would typically recover from setbacks. But now, it won’t be as easy because the only major supplier that could fill this gap is De Beers. They are working on an expansion to its significant mines in South Africa. And they could finish in a year or so if they pushed harder. But then, they don’t have the specialization of Alrosa. They won’t be able to produce the most popular varieties of gemstones (diamonds) that most of us can afford.
Affected diamond groups
The most affected type of diamonds for this shortage are small diamonds called stars and melee, used in most jewelry productions. They are primarily processed in India, the most prominent cutting place for small diamonds. Stars diamonds are also known as dust diamonds; they are the most petite, fully cut diamonds. Their size ranges from 0.009 and 0.021 carats. Melee diamonds are slightly bigger cut diamonds with sizes 0.07 to 0.15ct. 2.6mm – 3.5mm diameter.
What type of jewelry will this affect?
Small diamonds are the heartbeat of modern jewelry. It is improbable that you will find an excellent piece of jewelry without clustered diamonds. Clustered diamonds make everything perfect and look stunning.
Engagement Rings, Chains, Bracelets, and all types of jewelry that have modern designs will be affected and have their prices increased due to the scarcity of these diamonds.
High-end watches also primarily use dust diamonds and will experience the effect of this scarcity.
Dental Diamond Implants have also become a new trend amongst artists and celebrities in the United States. They also use small diamonds, which will fetch higher prices.
Beyond this information, we’ll be glad to write a more detail-oriented article focusing on everything about small diamonds, their history, and their uses in modern jewelry manufacturing.
Interesting!