What are the main reasons for the upward movement of prices in the coloured diamonds market over the last thirty years?
A. The coloured diamond market has developed from a specialty area of interest to one of the most important collectibles markets in the world. Connoisseurs are attracted to the durability, beauty and rarity that coloured diamonds have to offer. Investors are interested in coloured diamonds because over the last thirty years, prices have doubled in value on average every seven years and they have been shown to hold their value during recessions and economic downturns. Price movements in the coloured diamonds market are based on supply and demand. It has been reported that for every ten thousand carats of diamond mined, only one carat will be a fancy coloured diamond. This extreme rarity coupled with the gradual, consistent increases in demand are the main factors behind the rise in prices. In addition, major sources of supply for coloured diamonds are expected to decrease over the next decade at a time when demand for coloured diamonds continues to rise. The main buying segments in the
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