Although gold is the traditional gift for Chinese New Year, more and more Chinese are preferring diamonds as evidenced by gem sales last year which reached $160 million during the second half.
According to diamond mining and supplier group Petra Diamonds Ltd., global prices of diamonds have been falling during the past six months, reaching about 9 percent year on year by the end of 2014.
However, the number of Chinese people investing in diamonds has been increasing, with a single thought that eventually, as demand grows, diamond prices will hike back up.
Diamond sales reached 1 billion yuan during the second half of last year. Sales of large stones, particularly between two and five carats, hiked 40 percent, as the Lunar New Year approaches. The Chinese New Year has always been the season for jewelry gifting.
According to recent statistics from De Beers group, the world's biggest diamond conglomerate, diamond supply will stagnate over the next five years, and eventually begin to dry in 2020.
All across China, newly wed couples are buying diamond rings.
Managing director at Chow Tai Fok Jewellery Group Kent Wong anticipates that China's demand for gold and diamond is likely to increase between 12 and 15 percent in the next few years.
Shanghai's Shenmei Jewellery Co. manager Ma Juan said, "consumers need to be clear: Is their goal to buy diamonds to be worn and enjoyed or for investment? The conditions for each may be very different."
Ma's advice to jewellery buyers: "If you find something pleasing on the eye, then buy only if you wish to hold onto it for a long time."