We’ve recently spent a lot of time talking about China as an emerging luxury market. We haven’t been able to say enough, really. The increased consumption of luxury goods in China is having a real and important impact across many products and services in the luxury industry. Demand has suddenly spiked, and we are wondering if this increase will mean what economics guarantees it will mean: prices will rise.Demand by Chinese and Indian brides for diamonds has helped to lift the global price of diamonds by 44 per cent. Wasn’t it Sade’s song… It’s A Diamond Life? We think this is very apt. The increase in diamond prices in addition to the increase in gold prices globally is really upping the total retail price if you want some chic ‘bling’ in your life, regardless of where in the world you’re purchasing. While we are still excited that global luxury brands are spreading their wings and doing very well, we had not thought this all the way through. We recently speculated that a new level of super-elite luxury might start to emerge as the luxury market increases in size… could diamonds and gold soon fall into this category? Time will tell…
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