Effective with the January sight, De Beers has announced an average 3% jump in diamond prices.

“Most prices will rise with the average,” the company said.

A statement noted that “demand for diamond jewelry improved in [the second half of] 2003, and expectations are for healthy growth in 2004. In addition, the decline in the dollar over the last six months has had a significant impact, decreasing the price of diamonds to consumers in over 40% of the world and increasing the cost of mining.”

In an interview with the Financial Times, managing director Gary Ralfe said additional price increases should be expected this year.