The demand for natural diamonds has fluctuated over time, but in recent years, there has been an overall trend of increasing demand, particularly in emerging markets such as China and India. This increase in demand has been driven by factors such as economic growth and rising incomes, which have led to an increase in the number of people who can afford to purchase diamonds.
However, the supply of natural diamonds has not increased at the same rate as the demand. Diamond mines are limited in number, and the process of extracting diamonds from the earth is expensive and time-consuming. In addition, the vast majority of the world's diamonds are produced by just a few countries, including Russia, Botswana, and Canada, which can make the supply of diamonds vulnerable to geopolitical and economic instability in these regions.
As a result of these factors, the demand for natural diamonds has outstripped the supply, leading to an overall increase in the price of diamonds.
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