Higher-range rough diamond prices will remain robust in 2008, with demand outstripping supply for the foreseeable future, says World Federation of Diamond Bourses president Ernie Blom.

"We should see very strong prices," Blom, also a founding member of the World Diamond Council, tells Mining Weekly.

He points out that the current supply shortfall will last for the foreseeable future, propping up prices.

He declines to give a 2008 price percentage prediction.

Former top-rated diamond analyst James Allan, now a partner at consultancy firm Allan Hochreiter, expects 5% across-the-board price increases, he too highlighting the supply shortfall and saying that prices are likely to reflect this.

Blom notes that world number-one supplier De Beers has already upped prices by 3,5% across the board this year, which is expected to be an industry precedent.

Continued junior diamond listings signify a strong market for diamonds.

Allan notes the likelihood of a slowdown in demand from the US because of negative news on growth and jobs, but increasing demand from India, China and the Middle East is poised to offset this.

Currently the US accounts for 55% of global diamond jewellery sales, but Blom says that Indian and Chinese consumption is becoming increasingly important.

While not close to the US currently, Blom has "no doubt" that Chinese and Indian demand will reach US levels in time.

Polished Prices forecasts a "reasonably strong year", putting the average price rise over 2007 at 7%.

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