The Current Diamond Market

The Current Diamond Market

Here’s a look at the diamond market per the report presented by Rappaport.

The diamond market is experiencing a slow with subdued demand from the US as jewellers are cautious in their inventory purchases amid a slowdown in engagement ring sales. There is hope that the upcoming Vegas shows will boost activity for the second half of the year. At the same time, niche suppliers remain optimistic for GemGenève as European luxury sales remain robust. Kering’s first-quarter revenue is up 2% to $6.6 billion, boosted by the outstanding jewellery sector. The rough trade is cautious ahead of the May sight, and De Beers’ first-quarter production remains flat at 8.9 million carats, with sales volume up by 23% to 9.7 million carats. Letšeng’s first-quarter sales dipped 30% to $37 million, with an average price decline of 22% to $1,431 per carat. In other news, the US has imposed sanctions on 52 entities for funding the Hezbollah terror group via diamond and luxury sales.

Regarding fancies, fashion drives an appetite for elongated ovals, emeralds, and radiants. However, goods with medium and short ratios are weak and declining in value. The market for 0.30 to 1.20-carat diamonds is slow, while 1.25-carat and, more prominent, F-J, VS-SI categories remain stable. There is a shortage of well-cut fancies supporting prices, with the oval shape being the leading one, followed by radiant, emerald, pear, cushion, and marquise. Retailers offer a broader product range as consumers seek alternative cuts, with excellent shapes commanding premiums. Oversizes are trading at higher prices than usual, while off-make and poorly cut fancies must be more balanced and easier to sell.

Diamond Dealers in the USA

In the United States, the sentiment is down amid lower demand, with retailers focusing on memo supply to avoid owning inventory during uncertainty. However, there is a particular interest in fancy shapes selling well, particularly elongated ovals, emeralds, and cushions, while fancy-colour diamonds remain steady. Signet notes an engagement ring gap ahead of the summer wedding season, but it expects a bridal turnaround from the fourth quarter.

Diamond Dealers in Belgium

Belgium is experiencing quiet trading with fewer deals than usual for this time of year. Sluggish demand for 1 to 2-carat, G-J, VS-SI stones is due to dulled engagement ring sales since Covid-19. Dealers are preparing for the GemGenève show with optimism for the high-end segment, while rough buying is slow ahead of the following week’s De Beers sight. Many categories are selling at a discount on the secondary market.

Diamond Dealers in Israel

In Israel, activity is limited over the Independence Day holiday, with caution due to muted US and Chinese markets. Dealers have focused on the US market ahead of the June 1 Las Vegas shows, but demand is selective, with dealers needing more urgency and reducing purchases to a minimum. There is a widening price gap between bulk inventory purchases and specific trades.

Diamond Dealers in India

India is concerned about the decline in bulk orders, with low expectations for the coming months. Dealers are focused on specifics, cherry-picking top-quality goods, while the melee market has fallen from a month ago. There is optimism for China despite the sluggish recovery, with small- to medium-sized manufacturers maintaining low production levels and reduced rough demand ahead of the following week’s De Beers sight. Large sight holders are gaining market share and streamlining sales via a robust online presence.

Dealer trading has slowed in Hong Kong since the initial boost from reopening the Chinese border in February, with Chinese buyers cautious due to economic uncertainty on the mainland. Chinese jewellery manufacturing remains below capacity, and Hong Kong retail is boosted by improved tourist traffic but still below pre-pandemic levels.

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