Rapaport Press Release
Rapaport Research Report for August -- 'Tentative Trading, Seeking Stability'

RAPAPORT... Press Release, September 7, 2011, New York: Certified polished diamond prices fell in August as cautious buyers reacted to economic uncertainty and Indian suppliers faced tight liquidity. While trading is generally quiet during the summer months, dealers and retailers also delayed making large purchases while prices declined.

The RapNet Diamond Index (RAPI™) for 1.00 ct. diamonds fell 4 percent in August to 103.91. The 0.50 ct. category declined by 2.2 percent to 38.24 and 3.00 ct. dropped 5.4 percent to 371.58.

Rough trading in the dealer market was slow as Indian diamond cutters face liquidity issues. Premiums on mining company prices fell to near-zero with some goods selling at a discount. De Beers increased prices for some items, while BHP Billiton’s spot tender prices fell by 15 to 20 percent.

According to the just released Rapaport Research Report, “Tentative Trading, Seeking Stability,” diamond trading was weak in August following the strong growth period of the first half of 2011. Unease during the month was largely caused by rising concern about prospects for the global economic recovery. Lingering apprehension about U.S. debt, slow U.S. and European economic growth, volatile equity markets and low consumer confidence combined to reduce sentiment in the diamond market.

The downturn presents challenges for some and buying opportunities for others as Far East and Asian markets continue to offer real growth prospects. Trading levels are expected to rise in September as the Hong Kong jewelry show attracts Far East buyers stocking up for the upcoming holiday seasons.

Additional information about the state of the global diamond market is available in the just-released Rapaport Research Report, “Tentative Trading, Seeking Stability,” which can be found at www.diamonds.net/report or via email by contacting specialreport@diamonds.net.

Rapaport Media Contacts: media@diamonds.net.
U.S.: Sherri Hendricks +1-702-893-9400
International: Alissa Goren +1-718-473-0882
Mumbai: Mittal Kalsy +91-97699-30069

About the RapNet Diamond Index (RAPI): The RAPI is based on the best asking price in hundred $/ct. for the top 25 quality 1 ct. round diamonds (D-H, IF-VS2, RapSpec-2 and better) with GIA, HRD or AGS grading reports offered for sale on RapNet – Rapaport Diamond Trading Network. The RAPI is provided for various sizes. www.rapnet.com has daily listings of over 700,000 diamonds valued over US$5 billion and 6300+ members in over 74 countries.

About the Rapaport Group: The Rapaport Group is an international network of companies providing added value services that support the development of free, fair and competitive global diamond markets. Established in 1978, the Rapaport Diamond Report is the primary source of diamond prices and market information. Group activities include publishing, research and marketing services, internet information and diamond trading networks, global rough and polished diamond tenders, diamond certification, quality- control, compliance, shipping, and financial services. Major activities of the group include the development of markets for Fair Trade Diamonds and Jewelry as well as the creation of diamond futures markets. Additional information is available at www.Rapaport.com.

 

 

 



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