Russia has recently announced that trillions of carats of diamonds were discovered in Siberia under the ancient meteorite crater.
According to the market analysts the amount of diamonds revealed will be enough to secure sustainable supply for the next 3000 years and equals that of the whole world put together. The politics were hiding the amount of diamonds Russia actually possessed for more than 40 years and diffused the information only now creating a large room for bayous amongst the leading news publishers as well as industry professionals about whether or not this discovery is going to revolutionizes the industry.
Will this information revealed by Russian government impact the prices for diamonds?
Will the costs of extraction be reasonable enough for the price of diamonds to remain competitive?
What will be the overall influence of this discovery on the market?
The answers to this questions may be easily found due to the fact that the diamonds discovered in Russia are actually not gemstone diamonds meaning that they are not used for making jewelry. Therefore, the luxurious market will not be influenced substantially by the resent events in Russia and thus the prices for the jewelry we buy will remain the same and will not become any cheaper. This is the bad news for those expected this resent event to help them buy an engagement ring cheaper next year. However, regarding the industry in general and diamond tools manufacturers in particular the news have been treated well. The emergence of new competitor here will definitely bring misbalance to the market and effect the prices significantly. The question is when does Russia plan to start extracting the massive stock they have got? The main Russian extracting company Alrosa has already announced its intention to start working in the meteorite crater 700 miles in diameter. The company has been non for being long in the industry and doing the same job in Yakutia before, however, as experts say, the Yakutia diamonds’ mine is “merely as a rabbit hole” comparing to new diamonds in Russia.