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The Great Diamond Shortage That Never Was Is Likely Coming Soon

  • Two separate reports see market flipping to deficit in 2021
  • News can’t come too soon for industry squeezed by oversupply
De Beers Diamond Sales Falter as Small Stones Struggle to Sell

Photographer: Chris Ratcliffe/Bloomberg

For more than 15 years, the diamond industry has been telling the world about a looming shortage of gems. Instead, demand has been stubbornly underwhelming, and the miners have done a wonderful job of digging more and more stones.

But the pain may soon be over for an industry that’s being squeezed by oversupply. In two separate reports this week, analysts set out forecasts of a tightening market in the next few years, with diamond supply falling into deficit in or around 2021.