De Beers, the world’s largest diamond producer, expects demand for diamond jewellery in 2013 to be primarily supported by the emerging markets of China and India.

“Demand for diamond jewellery in the key markets of the US, China and Japan grew, albeit at a slower pace than in 2011,” De Beers said in its statement of annual results for the year ended 31 December 2012, released last week.

The company, part of Anglo American group, said that overall sales in 2012 dropped by 16 per cent to $6.1 billion, citing macroeconomic uncertainty and difficult trading conditions as factors causing the drop in demand. However it is more positive for 2013, for which it predicts “moderate growth”.

Of note is the firm’s Forevermark brand, for which stores licenced to retail these diamonds, which been inscribed with a unique identification number indicating they meet De Beers’ high standards of quality, ethical integrity and provenance, grew by 40 per cent  to more than 900.

“Forevermark continued to grow strongly in 2012, particularly in the core markets of China, Japan, India and the US, and was launched in two new licensee markets - Canada and the UAE,” said the firm.

According to De Beers, the rough diamond manufacturing sector closed 2012 with high levels of inventory, particularly in the higher-end categories of diamonds, and faces continued pressure in terms of midstream liquidity.

“In the medium to long term, industry fundamentals are expected to strengthen as diamond production plateaus and demand continues to increase,” the firm concluded.

In a recent media report by The Telegraph, Japanese bank, Nomura, told the publication that the prospect of flat diamond pricing has set a floor for the valuation of listed diamond companies.

“After this correction, we believe that there is limited downside in the equities. Diamond exposure for the long term, either through Anglo American, or our favoured pure plays Petra Diamonds or Harry Winston is, in our view, worth investigating,” said Nomura at the end of last month.