Demand Grows for Diamonds in China

Prices for diamonds in China are increasing between 30% and 40% because brides-to-be in China are demanding that their men give them a diamond if they want to get married. �The demand growth has added pressure on the industry to find and mine more diamonds, especially in Australia,� said Kevin Tomlinson, director of natural resources for Williams De Broe in London.

This week, China revised gross domestic product (GDP) figures from 2004 pointing to larger gains than originally thought. For year 2004 China ranked No.7 in the world (behind Italy) at $1.6 trillion. On December 20, China revised its 2004 figures ahead 16.8% to $1.98 trillion, or slightly below France at No.5. But analysts say China is underestimating its total weight to hide the nations real strength. If China included Hong Kong in national figures, it would jump to No.4, replacing the United Kingdom.

China measures its GDP with service sector returns, agriculture and manufacturing whereas nearly 70% of the United States economy is based upon consumer spending.
According to Hu Yanni, of CSC Securities Co Ltd, consumers in China are not yet willing to spend their money on nonessential consumption, because they feel more pressure to spend on necessities, he told Chinas Interfax.