China to become largest diamond buyer by 2016
As China all set to become the largest gold consumer in the World, Diamonds are also expected to play a major contribution.
According to Antwerp World Diamond Center, China will overtake the United States to become the Antwerp's biggest destination for diamonds exports by 2016.
Antwerp, the world's biggest hub for diamond trading, exported a total of 9.28 million carats of both polished and uncut diamonds to China with a total value of $5.09 billion in 2011.
The diamond center's transaction volume, which includes exports and imports, reached $60 billion in 2011, with four out of every five uncut diamonds coming from Antwerp.
The Center said the noticeable growth in demand coupled with rising interest in the gemstone as an investment product for Chinese consumers will drive the rise in diamond imports in the country.
The upward trend will continue and will lead China to become the biggest destination for diamond exports by the end of 2016, without citing figures, it said.
China briefly overtook the US to become the world's biggest diamond consumer in 2008, when the US was caught up in the global financial meltdown, but dropped back to second position when the crisis waned.
In 2011, the US was the biggest consumer of polished diamonds, accounting for 36 percent of total world demand, followed by China with a market share of 12 percent and India with 11 percent.
World Gold Council projected that China will overtake India to become the world's top consumer of the precious metal this year because of rising demand for gold as jewelry and as an investment.
The Antwerp center plans to set up a "polished desk", either in Shanghai, or one of China's other heavily industrialized cities, to sell diamonds to jewelry companies.
The plan came after last October's cooperation agreement on diamond financing between the center and the Industrial and Commercial Bank of China Ltd, the country's biggest lender.
The diamond boom has also prompted the Chinese bank to decide to open up a branch in Antwerp. That may happen within the next six months.
Source: BullionStreet
Newsletter
News Articles
Recent News
18-05-2012
National Bank of Greece Had Negative Equity at Year End
National Bank of Greece, the oldest Greek commercial bank, saw its financial condition so damaged by the crisis that it was operating with negative shareholder equity at the end of last year.
The bank revealed its precarious financial...
18-05-2012
Forget Greece, China Biggest Risk to Global Economy: Faber
Forget Greece, which is an "insignificant" economy, it is China that poses the biggest risk to the global economy, Marc Faber the editor and publisher of the Gloom, Boom and Doom report told CNBC on Friday.
"I think the biggest risk is...
18-05-2012
Fitch Cuts Greece As Leaders Spar Over Euro Membership
Greece’s credit rating was downgraded one level by Fitch Ratings on concerns the country won’t be able to muster the political support needed to sustain its membership in the euro area as leaders began campaigning ahead of the second...
18-05-2012
Santander Among 16 Spanish Banks Downgraded By Moody’s
Banco Santander SA (SAN) and Banco Bilbao Vizcaya Argentaria SA, Spain’s biggest lenders, were cut three levels by Moody’s Investors Service, which cited a recession and mounting loan losses in downgrading 16 of the nation’s banks....
18-05-2012
Obama, Hollande Meet For First Time Before G-8 Summit Convenes
President Barack Obama meets today with France’s new Socialist president and self-described “normal” guy in a test for U.S.-French relations as Obama tries to shape European economic and military commitments.
The late morning...
