De Beers, the worlds largest miner of diamonds, believes the world's supply is running out and is reducing production in an attempt to extend the life of their mines.
CNN reported that rough diamond prices could rise 5 percent per year for the next five years, according to Des Kilalea, analyst at RBC Capital Markets.
De Beers expects a new Asian demand for diamonds, depleting the mines.
According to the Telegraph, De Beers produced about 48m carats in 2008 and will reduce that to 40m carats in 2011.
In the last two decades, the diamond industry has not been able to find any more mines as plentiful as the two largest mines in Africa, both owned by De Beers.
De Beers accounts for about 40 percent of the world's diamond sales.