Surati diamond and jewelry experts are reporting a definite increase in customer demand for yellow and white gold jewelry, a demand which is threatening to overtake customer demand for loose diamond and diamond set jewelry.

According to various Surati diamond and precious gemstone experts, retailers and manufacturers, the new trend has mainly to do with the marked increase in loose diamond and precious gemstone prices since January. 2011, an increase that has apparently deterred the everyday consumer from shopping for diamond set jewelry pieces as well as loose diamonds. Reportedly, loose polished diamond prices are at an all time high, increasing in the last six months by up to seventy percent compared to last year’s loose diamond price projections. The increase can be attributed to the global recession which has influenced the price of such luxury commodities as loose diamonds and diamond jewelry pieces, or it may be attributed to a decrease in polished diamond production and output as diamond manufacturers and polishers are reporting difficulties in meeting customer demand for high quality, natural diamonds

In contrast, gold prices have remained reasonably low this last quarter, a fact which has sparked customer interest in gold jewelry pieces and has prompted an increase in customer demand for gold jewelry. Generally speaking, gold prices, as well as diamond prices, are determined by two major factors: the mineral’s or precious alloy’s rarity and customer demand for said alloy or mineral. As diamonds are a rarer natural resource, diamond prices are commonly higher than gold prices. However, an increase in demand for gold similar to the one we are seeing now that diamond production is down and diamond prices are up, may prompt a significant spike in gold prices, which may result in an increase in gold prices, causing a balance of sorts in terms of diamond and gold prices, effectively leveling the field between the two luxury commodities. Indeed, diamond manufacturers and retailers around the world are counting on such a balance In order to avoid losses in loose polished diamond and diamond jewelry sales. However, if polished diamond sales do not go up next quarter, the end result may be a flooding of the loose diamond market in 2012, which may cause a decrease in diamond prices, and could account for additional losses to diamond conglomerates all over the world.