Country With 2nd Largest Population is Enamored by Diamonds

Without a doubt, the western middle-class is still ahead of its Chinese peers in some respects. For example, 25 percent of all U.S households made $75,000 or more in 2010. The number of comparable households in China today is about three percent. But these statistics don’t paint the whole picture, when compared to actual numbers. Imagine this. With 1.3 billion people in China, one must multiply any percentage by a factor of four to compare with the U.S. In simple terms, when only six percent of Chinese households earn $75,000 or more, their country will equal the U.S in terms of luxury spending power at a certain basic level. Upon reaching 12 percent, China will double the US in that ability.

Luxury spending in China is equivalent to, or even surpasses, such spending in the West; today. Therefore, logically, it’s possible that any consumption trend of the growing middle-class in China, will lead to them influencing or even controlling a given market; even before the projected middle-class growth numbers are achieved. This remains especially true, as the World’s second largest populated country becomes enamored with diamonds, and ignites the growing popularity of gemstone investing in Asia; and other parts of the World.

As the global markets recover, and countries like China and India continue to thrive and grow, there be new economic opportunities and the prosperity that results, will bring forth more investors; with increased motivation and spending power. With that being said, things have already come to pass as Lawrence Ma predicted in his speech, back in 2006. Although interest in diamonds is relatively new for the Chinese, who have typically gobbled up gold to secure their cash, more and more are seeing that investing in diamonds is a smart move; for the market's apprehensive and uncertain investors. In fact, even the World Gold Council recently announced that China is poised to become the world's largest gemstone and gold buyer in 2012, surpassing investors in the United States, Europe, and India.