Headlines

Diamond Prices Rise in June

Published

6 years ago

July 3, 2018

INSTORE Staff

(Press Release) NEW YORK — Diamond market sentiment was positive in June after the Las Vegas shows demonstrated robust U.S. jewelry demand. Suppliers held polished prices firm amid shortages in some categories and as high rough prices squeezed manufacturing profit margins.

The RapNet Diamond Index (RAPI) for 1-carat diamonds increased 0.8 percent in June. Prices strengthened in the second quarter, continuing the positive momentum seen since January. RAPI for 1-carat rose 3.4 percent in the first half of 2018 and was up 0.5 percent from a year ago on July 1. INSTORE RapaportChart2

Stable US and Chinese demand is supporting the market. Larger brands and innovative independents working to improve the buying experience in-store and online are gaining market share. Jewelers that are unable to change the way they engage with customers are losing out.

Retailers require less inventory from polished suppliers due to increased efficiency and are relying more on memo. There is a shift to using technology in-store, giving jewelers access to a larger virtual inventory that lets them provide customized service to millennial consumers. Savvy diamantaires are allowing jewelers to tap into their stock online, providing high-resolution images and detailed provenance of their supply from mine to market.Manufacturers and dealers are aligning their inventory with retailers’ needs, resulting in slightly lower stock levels than this time last year. The number of diamonds listed on RapNet fell 4 percent year-on-year to 1.34 million stones as of July 1.

Mining companies are also supplying less rough, selling lower volumes at higher average prices. De Beers’ rough sales fell 1.5 percent to $2.89 billion in the first half, according to Rapaport calculations, with prices up an estimated 3 percent to 4 percent.

Trading is expected to slow in July and August as dealers in New York, Belgium and Israel take their annual vacations. There is optimism for the second half as jewelers and diamantaires adjust to a changing marketplace.

This Third-Generation Jeweler Was Ready for Retirement. He Called Wilkerson

Retirement is never easy, especially when it means the end to a business that was founded in 1884. But for Laura and Sam Sipe, it was time to put their own needs first. They decided to close J.C. Sipe Jewelers, one of Indianapolis’ most trusted names in fine jewelry, and call Wilkerson. “Laura and I decided the conditions were right,” says Sam. Wilkerson handled every detail in their going-out-of-business sale, from marketing to manning the sales floor. “The main goal was to sell our existing inventory that’s all paid for and turn that into cash for our retirement,” says Sam. “It’s been very, very productive.” Would they recommend Wilkerson to other jewelers who want to enjoy their golden years? Absolutely! “Call Wilkerson,” says Laura. “They can help you achieve your goals so you’ll be able to move into retirement comfortably.”