Connect with us

Press Releases

Rapaport: Diamond Prices Slid in August

mm

Published

on

Suppliers are optimistic about the holidays.

(PRESS RELEASE) NEW YORK — Diamond prices remained under pressure with slow trading during the August vacation period.

Liquidity and profitability tightened during the summer, but suppliers are optimistic that trading will improve ahead of the fourth-quarter holiday season.

The RapNet Diamond Index (RAPI) for 1-carat diamonds fell 0.6 percent in August and declined 3.8 percent since Jan. 1.
As the Rapaport Monthly Report – September 2017 notes, polished inventory is rising, with steady manufacturing and sluggish demand as dealers prepare for the holiday season. Liquidity concerns deepened following reported defaults by manufacturer InterJewel and wholesaler Ankur Diamonds.

Manufacturers are under pressure, as rough prices rose an estimated 3 percent in the first half of 2017 and polished inventory levels continue to rise. The number of diamonds listed on RapNet has risen 22 percent since January to 1.44 million on Sept. 1.

Rough trading slowed in August after a robust first half, with De Beers boxes selling at low average premiums on the secondary market. Rough demand is expected to slow in the coming month due to the tight manufacturing profit margins and possible oversupply of polished. Indian cutters brought forward their pre-Diwali purchases, since the festival is earlier than usual this year, on Oct. 19.

Suppliers are hoping the September Hong Kong Jewellery & Gem Fair will spur stronger polished trading. Chinese buyers are pushing for higher discounts as they prepare for the Oct. 1 National Day. Dealers are trying to hold prices firm in anticipation of stronger demand as retailers purchase their holiday inventory.

Advertisement

Improved earnings at Signet Jewelers and Tiffany & Co., along with increased industry marketing budgets, have raised expectations for the holiday season. Attention is focused on De Beers’ branding and the Diamond Producers Association’s generic campaigns to stimulate demand and higher polished prices.

The Rapaport Monthly Report can be purchased at store.rapaport.com/monthly-report.

Advertisement

SPONSORED VIDEO

Wilkerson Testimonials | C. Aaron Peñaloza Jewelers

Wilkerson Paves the Way for the Future

After serving the San Antonio, Texas community for decades, C. Aaron Peñaloza Jewelers closed its doors earlier this year. Aaron and Mary Peñaloza, the store’s owners, chose Wilkerson to handle their retirement sale. “In the first six days, we did six months’ worth of business,” says Aaron. “In the first three weeks, we did a year’s worth of business.” Mary Peñaloza says Wilkerson’s ability to tailor the sale to their store’s requirements really made it all so much easier. “They are professionals,” she says. “They know what they’re doing. They have a plan, but they will listen to you and adjust that plan to your needs.”

Promoted Headlines

Most Popular