On Friday, the National Museum of Canada released its annual report on the world’s diamonds, and it was an illuminating look at how diamonds are made and how the price of the precious metals has affected the world.
“We’re seeing a surge in the supply of diamonds and that’s creating a demand that’s pushing prices up,” said John Friesen, senior vice-president of the National Museums of Canada.
“But there’s also a demand for those materials that are mined and they’re going for a higher price.”
The annual report noted that the price for an ounce of the world has risen by more than half since 2005, when the first estimate was released.
That was in part because the global economy had not recovered and there were shortages in some countries.
“A lot of people are going to need to look for that precious metal in places where they don’t have access to that,” Frieson said.
“And it’s going to be more difficult to find that material.”
The price of a diamond rose by an average of $100 in the past 12 months, according to the report.
But, the report noted, there were some countries that had seen a drop in the price, including China, where the price had been rising steadily.
The report also noted that there were more than 400,000 new diamonds being mined around the world every year.
It’s estimated that the demand for diamonds is expected to grow to $20 trillion by 2030, according the report, and the demand is set to rise even more.
Friesed said there are still some areas of the diamond world where diamonds are still difficult to obtain.
For example, in China, there are only two producers of diamonds that are certified, meaning there are about 10,000 mines and mines are producing at least 80 per cent of the country’s diamonds.
“The number of diamonds in China is actually decreasing, and they are trying to diversify,” he said.
Frieden said there is also a lot of uncertainty about how much demand there is for diamonds.
Many people are wondering if they will need to take a hike in their diamond consumption, he said, and that is creating a lot more uncertainty around demand.
“I think people are starting to worry about that,” he added.
The National Museum’s report comes as Canada has seen a spike in the demand of precious metals, including gold and platinum.
The number of gold and silver coins being produced in Canada rose by almost 40 per cent between 2016 and 2017, according a recent report by Statistics Canada.
Gold prices also have been soaring, rising nearly 2,000 per cent since July 2017.
And platinum prices have been climbing.
The country’s gold price index has increased by more.
The annual National Museities report noted the growing demand for gold and the need to diversified consumption of the metals.
The prices of diamonds have also risen.
In 2017, prices were about $1,700 a pound, up from about $800.
But in 2018, the price increased by about $400, up to about $5,000.
And by 2020, the prices were around $5 a pound.
“Demand for gold is still very high in the world,” Friedens said.
But demand for platinum and diamonds is still “very high” in Canada.
There are about 4,000 platinum mines operating in Canada, according Frieser, which has about 70 mines producing about 2,400 tonnes of platinum a year.
In the United States, the United Kingdom, and China, about 60 per cent or more of all the platinum produced in the country is produced in mines in Canada or China.
The gold market is “still in its infancy,” Frysen said.
And that’s due to a number of factors, including a lot that has happened over the past decade.
Frysens noted that gold prices have jumped in the United Sates, Canada, the UK, and Japan, where demand has been growing.
The demand for copper, he noted, is also growing, and he expects the market for copper to grow in Canada as well.
“You have to understand the supply and demand dynamic in the gold and copper markets,” he explained.
“We see the supply side of the business growing, the demand side growing and we are seeing that in our precious metals market.”
The demand is growing in the platinum market, Frieses said, because it’s “going to be a really good year.”
That’s why he’s optimistic about the demand growth in the precious metal market in the next few years.
“What we’re seeing is demand in the first two years is going to continue to grow,” he noted.
“That’s going for platinum, and then for gold, and for silver.”
Friesens said he hopes to see demand for the gold market grow in the coming years.