Who Owns Most of the Diamonds in the World?

The ownership of diamonds involves a complex global journey, transitioning through various entities from their subterranean origins to their final acquisition. This market is characterized by multiple points of transfer, reflecting stages of extraction, processing, distribution, and consumption. Understanding who owns most diamonds requires examining the supply chain, as control shifts from large corporations to a network of businesses and, ultimately, to individual consumers and investors.

Ownership at the Source: Mining and Initial Sales

At the very beginning of the diamond supply chain, ownership resides primarily with a handful of large mining corporations. These entities invest substantial capital in exploration, extraction, and initial sorting of rough diamonds. De Beers Group, for instance, along with its partners, produces approximately one-third of the world’s rough diamonds by value. Another major player, Alrosa, is the world’s largest diamond producer, responsible for about 90 percent of diamonds mined in Russia.

Other significant companies in this upstream segment include Rio Tinto, Petra Diamonds, Lucara Diamond, and Arctic Canadian Diamond Company. These companies effectively control the initial global supply of rough diamonds from the moment they are unearthed. They manage vast mining operations across several countries, including Botswana, Canada, Namibia, South Africa, and Russia.

Once extracted, these rough diamonds undergo initial sorting and categorization based on their quality, size, and shape. The mining companies then transfer ownership through specific sales mechanisms. De Beers primarily sells its rough diamonds through its Diamond Trading Company (DTC) to a select group of approved buyers known as sightholders, typically via ten organized sales events annually.

Alrosa also utilizes long-term contracts with its clients. Other producers, such as Petra Diamonds, often use auction platforms to sell their rough diamonds, particularly for larger or unique stones. These initial sales represent the first major transfer of ownership, moving the diamonds from the mining companies into the hands of the next stage of the supply chain.

Ownership in the Supply Chain: Trading and Manufacturing

After their initial sale by mining companies, diamonds enter the midstream of the supply chain, where ownership becomes more fragmented among numerous trading and manufacturing entities. Major global diamond trading centers, often referred to as bourses or exchanges, facilitate this transfer. Key hubs include Antwerp in Belgium, Mumbai in India, New York in the United States, Dubai in the United Arab Emirates, and Tel Aviv in Israel.

In these centers, rough diamonds are acquired by manufacturers and traders, who then oversee their transformation into polished gems. This process involves precise cutting, polishing, and sometimes cleaving, requiring specialized skills and technology. Approximately 90 percent of natural diamonds are cut and polished in India, largely due to lower labor costs, while higher-value stones may be processed in Belgium and Israel.

These manufacturing companies hold significant inventories of both rough and polished diamonds. Their ownership continues until the diamonds are sold to wholesalers, jewelry designers, or directly to retailers. The midstream segment encompasses cutting, polishing, and wholesale activities.

Many of these midstream businesses are family-owned. Their role is to bridge the gap between the concentrated ownership at the mining level and the dispersed ownership at the retail and consumer level. They acquire diamonds primarily through long-term contracts, tenders, or direct purchases from other traders.

Ownership by End-Users and Investors

The largest segment of diamond ownership rests with end-users and investors. Once diamonds are cut, polished, and set into jewelry, they become personal property. The vast majority of diamonds are purchased by individuals as jewelry. While each individual holding may be modest in value compared to corporate inventories, the collective worth of diamonds held by the general public is immense.

This widespread ownership is particularly prevalent in the United States, which accounts for approximately 53% of the global consumption of polished diamonds. Other significant consumer markets include China and India, where demand for diamond jewelry has been steadily growing. These purchases are often influenced by cultural preferences, fashion trends, and consumer purchasing power, reflecting diamonds’ role as luxury goods.

Beyond personal jewelry, diamonds are also acquired by institutional and private investors as an asset class. Investment-grade diamonds, characterized by exceptional quality in terms of cut, color, clarity, and carat weight, can be part of diversified portfolios for high-net-worth individuals. While the resale of diamonds can be complex due to valuation challenges, some investors view them as tangible assets.

Additionally, famous or historically significant diamonds are often owned by museums, royal families, or private collectors who acquire them for their rarity, provenance, and artistic significance rather than primarily for investment returns. These unique stones represent a specialized niche within diamond ownership. This final stage shifts ownership from the corporate supply chain to a decentralized network of individuals and specialized collectors.