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• 50-pointers, cleanish, IF, VVS are in strong demand across the board.
• 50-pointers in VS-SI1, H+ are in strong demand.
• Demand is firm for 4-grainers+ piqué as buyers downscale in budgets and buy less expensive goods.
• Demand is strong for cleanish 4-grainers up to 6-grainers.
• Prices are stable for 4-grainers+ in VVS.
• 5-grainers in 1.20 to 1.50 carats, VS-SI
are commanding a strong premium of
at least 5 percent.
China
• The wholesale market is very busy because of preparations for the National Day Golden Week holiday retail season.
• Demand is strong for rounds in 0.15- to 0.70-carat G+, VS; 0.15- to 0.50-carat I-J,VVS and 1-carat+ VS+, H+.
• The SDE has introduced a 0.3 percent transaction fee on polished diamonds imported to China, starting October 1, 2008. The zero percent import tax and 4 percent value-added tax (VAT) for polished diamonds remain unchanged.
Hong Kong• 5 carats and larger are being neglected, but stones over 10 to 20 carats in top
qualities can still find buyers.
• 1-carat sizes in VS and SI in high
colors are moving well. G through I colors in VVS1- VVS2 are in very strong demand despite the market.
• Small Indian setting sizes are very slow due to the weak U.S. market.
India
• Local trading activity is quite slow overall owing to soft demand, weakening of the rupee against the dollar and a lot of resistance from buyers, locally as well as across global markets.
• Many Indian companies were gearing up for the Hong Kong Jewellery & Watch Fair and had good expectations for size goods. Overall, Indian
participation and presence seem to
be stronger in this year’s Hong Kong show, with Indian manufacturers
hoping to connect with new dealers and retailers to find alternate selling avenues to the U.S. markets.
• Liquidity problems seem to be
continuing in the local market. Big financial failures are expected to further reduce overall demand for luxury items, thus affecting the trade.
Israel• Activity has been slow in Ramat Gan as a longer-than-usual vacation period comes to a close.
• Business owners responded to the quiet market by extending their own vacations.
• Large stones are not moving, probably in response to the wealthy cutting back on their spending on expensive diamonds.
• 3 carat+ is trading at 10 percent less than two to three months ago.
• Sales have improved in 0.30 to 0.70 carats and prices are higher than in 2007.
Russia• Russia’s rough exports in the first half
of 2008 totaled 14 million carats worth $955 million.
• The export breakdown is as follows: European Union (EU), 10.4 million carats worth $711 million; Belgium, 8.2 million carats worth $530 million; Britain, 2.1 million carats worth
$181 million; Israel, 1.03 million carats worth $122 million and India,
1.6 million carats worth $47.5 million.
• Russia’s rough imports in the first half of 2008 totaled 73,000 carats worth $18 million. Most of the stones – 10,000 carats worth $14 million — came from Belgium.
South Africa• Trade is starting to pick up in
Johannesburg in preparation for the summer season and tourist buying.
• Minimal polishing is going on due to the shortage of rough supply.
• Polished dealers have stepped up their importing of polished because of the supply shortage.
• There is an oversupply of melee goods.
U.S. Retail• Round brilliant tops diamond
engagement sales, with square and
rectangular cuts coming in a distant second.
• 1-carat stones are currently the most popular choice, although it’s not uncommon to find customers
requesting 4-carat+ stones.
• Most engagement purchases are VS2, followed by SI1.
• The top colors are G, then H, then F.
• There is a trend back to platinum, though many customers are still choosing 18- and 14-karat white gold because of the price. Palladium is
getting increased play, both on its own and mixed with white gold.
• The average price for an engagement ring is $7,500, including stone and
setting, though many stores are
reporting a spike in engagement
rings in the $10,000 range.
U.S. Wholesale• Demand for D flawless is holding off at the moment.
• Fancies and pear shapes are selling well.
• Better 1- to 1.5-carat diamonds are stronger than in previous months.
• 3- to 4-carat demand has lessened.
• SI and below are extremely weak.
Article from the Rapaport Magazine - October 2008. To subscribe click here.