Forecasters are predicting that 2010 diamond exports in Botswana could be the richest ones since the country first discovered its diamonds in 1967. This is an incredible accomplishment since the diamond production in 2010 from Debswana mines is likely to be 30 percent lower than 2008. It's obvious that there has been a strong recovery in price for diamond markets.

Researchers have expected this growth since the diamond industry has rebounded quickly after the 2009 recession. Though rough diamonds have been rebounding for some time, the rebound has seen its highest growth in this last quarter period.

According to CEO Clifford Elphick, there were concerns that rough diamond prices were too far ahead of polished prices but now the concern is that polished prices need to catch up.   

 "The reports of strong diamond jewelery sales in the important US Christmas season, continuing growth in sales of diamond jewelery in Asia, specifically China and India and the fundamental supply demand imbalance, has meant strongly rising prices for rough diamonds and to a lesser extent polished diamonds," said CEO Clifford Elphick.

China recently became the second biggest diamonds consumer after the United States.  It took over what was once Japan's spot.
While analysts do believe that rough diamond prices will eventually decline as more products filter through the system, DeBeers, the world's largest diamond company, may prove them wrong wrong because it has just issued a policy that produces according to demand. It will keep stones in the ground when the market does not favor profitable production. 

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