Gold to Rise in 2012, To Drop After 2013, But Diamonds To Rise Much More

BMO Capital Markets released a report yesterday in which it states that diamond prices will rise for the next four years reflecting increased spending on luxury goods in China, India and the Middle East, outpacing supplies of the precious.

Average prices for rough, or uncut, diamonds will probably climb nine per cent to $145 US a carat next year, 1.4 per cent in 2013 and 4.8 per cent in 2014, then they may gain 2.6 per cent in 2015 and 3.2 per cent in 2016.

In addition, gold is expected drop for three years starting 2013, following a 19 per cent gain in 2012, according to the median of seven analyst estimates. (Ottawa Citizen report)