NEW YORK (Commodity Online): After a decade of Indian and Chinese demand driving up Gold prices, it seems as though the same is about to happen again-only this time, it will be diamond prices that will benefit from the rising purchasing power of the middle-class.

A new report by Bain & Company states that “A doubling in the ranks of the Chinese and Indian middle classes by 2020 will drive much of the demand surge, with their combined market share projected to reach 30 per cent by the end of the decade, up nearly half from its current levels and nearly equal to the share of the US”.

India's net rough Diamond imports in November totals close to $10.2 billion, a a more than 42% jump from November 2010 as per data released by GJEPC. The average value of gross imports in November was $104.09/carat compared to $69.90/carat in November 2010.

The Bain report goes on to add that even though the US still remains the single biggest market,the most rapid growth is being seen in Asia, primarily the jewelry demand from the China region which has propelled to account for 10% of global diamond market.

Bain expects that to achieve market expansion, “the industry will have to improve transparency and improve the method of valuations”

Miner Anglo American meanwhile sees demand from India and China together with West Asia to account for 40% of global diamond demand within 2015