The diamond supply in the world is coming to an end, according to De Beers, the world's biggest miner of the gem.
Approximately 130 million carats (26,000 kg (57,000 lb)) of diamonds are mined annually, with a total value of nearly US$9 billion, and about 100,000 kg (220,000 lb) are synthesized annually.
Des Kilalea, a diamond analyst at RBC Capital Markets, has said that owing to the moderated output, diamond prices could rise by at least 5 per cent a year for the next five years.
Historically diamonds were found only in alluvial deposits in southern India.
India led the world in diamond production from the time of their discovery in approximately the 9th century BC to the mid-18th century AD, but the commercial potential of these sources had been exhausted by the late 18th century and at that time India was eclipsed by Brazil where the first non-Indian diamonds were found in 1725.
Surat will most definitely be feeling this pinch in the next few years, since they depend almost totally on De Beers for their diamond supply. Traders in the city have recently signed a pact with Russia's Alrosa which would allow importing directly from that country. Surat has the largest diamond polishing network in the world, and they polish almost 90% of the world's diamonds. Most of those diamonds are imported.
Botswana leads the world in rough diamond production, with 27% of total production by value (as of 2006) — followed by Russia (18%), Canada (12%), South Africa (11%) and Angola (11%).
Africa produces 65% of the world's diamonds.
Although five of the top seven diamond-producing countries are in Africa, most of the world's diamonds are polished elsewhere. India, the world leader, employs more than 800,000 people in diamond polishing.