Press Releases

Rapaport: Diamond Prices Slid in August

Published

6 years ago

September 11, 2017

INSTORE Staff

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.

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.

When There’s No Succession Plan, Call Wilkerson

Bob Wesley, owner of Robert C. Wesley Jewelers in Scottsdale, Ariz., was a third-generation jeweler. When it was time to enjoy life on the other side of the counter, he weighed his options. His lease was nearing renewal time and with no succession plan, he decided it was time to call Wilkerson. There was plenty of inventory to sell and at first, says Wesley, he thought he might try to manage a sale himself. But he’s glad he didn’t. “There’s no way I could have done this as well as Wilkerson,” he says. Wilkerson took responsibility for the entire event, with every detail — from advertising to accounting — done, dusted and managed by the Wilkerson team. “It’s the complete package,” he says of the Wilkerson method of helping jewelers to easily go on to the next phase of their lives. “There’s no way any retailer can duplicate what they’ve done.”