Lucara optimistic about natural diamonds in the market

Lucara Diamond operators of Karowe Mine are optimistic the natural diamond prices will remain positive, as major brands take decision not to market labgrown stones. In the company’s first quarter results announcement, Lucara says the decision will support the natural diamond market as it expects a division between the natural and lab-grown diamond market.

“e longer-term market fundamentals for natural diamonds remain positive, pointing to continued price growth as demand is expected to outstrip future supply, which is now declining globally,” said President and Chief Executive Officer of Lucara, William Lamb. e new development comes on the backdrop of sales of lab-grown diamonds increasing steadily through 2023 and into first quarter of 2024 with many smaller retail outlets increasingly adopting the lab-grown diamonds as a product. e company’s optimism is also anchored on improving fundamentals around supply and demand as many of the world’s largest mines reach their end of life. “In the short-term, De Beers, the largest diamond producer by value reduced their production guidance by up to 3.0 million carats, for 2024, to assist with stabilizing the diamond market.”

In addition, the company also highlights the G7 sanctions on the importation of Russian diamonds greater than one carat that went into effect at the beginning of March and some trade delays were noted in the industry. “e new procedures require all rough diamonds larger than 1.0 carat to be processed through the Antwerp World Diamond Centre for validation of point of origin. e company sees this as a short-term support for diamond pricing as this, together with the reduction in production volumes from De Beers, will result in lower volumes of higher value goods being available in the market.”