Rough diamond prices may surge more than 25% this year driven by “almost insatiable” demand from China , India and the US, Gem Diamonds Ltd. said, Bloomberg reported.



“Most people in the industry continue to be surprised by the voracious appetite from the Chinese consumer for diamonds,” Chief Executive Officer Clifford Elphick said in an interview with Bloomberg.



“I would be surprised if we don’t achieve plus 25%.”



De Beers, the largest diamond miner by sales, said last month it may raise output by 21% to full capacity by the end of 2012 to meet “extraordinary” demand from China and India.



Global prices of rough diamonds gained 26% last year, surpassing pre-recession highs, according to data compiled by WWW International Diamond Consultants Ltd., the report said.



The US remains the biggest market for diamond jewelry, buying about 38% of the total last year, De Beers said.



“Prices have continued to rise substantially,” Elphick said by phone. “Demand is almost insatiable. The American consumer is coming back with much greater confidence, Chinese demand is extremely strong and India demand is very strong.”



Price gains are also underpinned by a long-term decline in output as the world’s largest mines are exhausted.