The Kimberley Process introduced the certification of diamonds. Each and every precious stone must have a certificate guaranteeing it is not from a conflict zone. However, at the latest meeting, the prospect of expanding the KP was raised.

The process has been primarily concerned with diamond production. However, the trading and cutting of diamonds may be brought under its wing – and even smuggling of other gems such as emeralds.

The industry has got its act together at a very good time. The diamond market is experiencing a shortage of diamonds – a shortage that will continue for many years. Analysts believe that demand for diamonds will grow by 5% a year for the next 10 years – and output is not keeping up with demand.

The International Diamond Exchange (IDEX), which tracks polished diamond prices, said that solid demand for polished diamonds in virtually all global markets in October continued to push prices higher.

However, despite a year-over-year price increase of 3.2% and a month-over-month price gain of 0.1% most two-carat and smaller diamonds posted flat or lower prices.

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