Forecasted industry fundamentals point to an environment favoring higher diamond prices over a period of at least the next four years.

The discount of gem-quality lab-created diamonds relative to natural diamonds has doubled from 11-20% a year ago to 28-40% today.

Paul Zimnisky, an independent diamond industry analyst, estimates supply will fall 3.4% to 147 million carats.

2017 has been a year of excess inventory shifting from the upstream segment of the diamond industry to the mid-stream segment.

With global diamond demand forecast to grow at approx 3.5% annually over next five years, a supply gap down the line seems inevitable if forecasts hold.

Over the last nine years 66 record-breaking and other noteworthy diamonds were recovered, and 61 of those have been found within the last five years.

Here we are little more than half way through 2017, and industry fundamentals are not necessarily negative, but signals are mixed with a subdued tone.

Independent diamond industry analyst and consultant Paul Zimnisky has published a report on global rough diamond prices in the 10 years since the global financial crisis.

The top 10 largest mines in the world by value produced are estimated to represent 58% of global production.

From February 15th to March 13th, a market-cap weighted aggregation of diamond miners in U.S. dollars including ALROSA Joint-Stock Company, Petra Diamonds Ltd, Dominion Diamond Corp, Gem Diamonds Ltd, Lucara Diamond Corp, Stornoway Diamond Corp, Firestone Diamonds Plc, and Mountain Province Diamonds Inc, was down 14.3%.

As the diamond industry marks its foray into 2017, Q1 demand for rough has been stronger relative to Q4 2016 and also relative to a year ago.

The esoteric diamond industry has never been more interesting to observe and challenging to predict.