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Certified Diamond Prices Decline 1.8% in October
Nov 5, 2012 7:09 AM
By Rapaport
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RAPAPORT... PRESS RELEASE, November 5, 2012, New York: Certified polished diamond prices continued to decline in October as economic and political uncertainties have diminished holiday expectations.
Trading quieted toward the end of the month as Hurricane Sandy halted business in New York’s diamond market. There is some concern that the storm will impact holiday luxury sales along the East Coast as consumers focus on necessities during the recovery period and put holiday gift buying on hold.
In China, there was stable jewelry demand during the October 1 Golden Week but growth continues to slow and the holiday did not restore Far East consumer confidence. Diamond buyers suspect the market has not yet bottomed out. The volatile rupee and high gold prices continue to unnerve Indian dealers and consumers.
This week’s U.S. elections and China’s leadership transition have brought additional uncertainty to those respective markets.
In October, the RapNet Diamond Index (RAPI) for 1 ct. certified diamonds fell 1.8 percent. RAPI for 0.3 ct. stones rose 0.2 percent while RAPI for 0.5 ct. diamonds decreased 1.1 percent. RAPI for 3 ct. stones fell 1.4 percent. Trading remains cautious and budget-conscious diamond buyers continue to focus on commercial quality VS2-SI goods.
During the first 10 months of 2012, RAPI for 1 ct. diamonds fell 11.9 percent. RAPI for 1 ct. stones is down 13.8 percent from one year ago.
Copyright © 2012 by Martin Rapaport
Diamond cutters are finding it difficult to profit on their rough supply. They have curbed manufacturing and many small-to-medium sized factories in India are taking extended Diwali vacations. Rough prices at mining company tenders firmed slightly in October, while prices from the major contract suppliers remain comparatively high. A large influx of high-priced De Beers goods put additional pressure on the rough market. Trading of De Beers goods on the secondary market has been weak as premiums have slimmed and some boxes are selling at slight discounts.
Despite the declines, the mood among traders improved slightly in October, compared to the quiet third quarter period. According to the just released Rapaport Research report, “Mixed Sentiment,” dealers were spurred by hope that the holiday season will raise trading volume in the coming two months. Buyers are looking for goods but are watching prices as they are prepared to wait out the downturn before making larger inventory purchases again. The diamond market appears content to ride out the rest of the year with the hope that better prospects lie further ahead.
Read the Rapaport Research Report, “Mixed Sentiment”, at www.diamonds.net/reports or email: specialreports@diamonds.net.
Rapaport Media Contacts: media@diamonds.net
International: Shira Topiol +1-702-425-9088 <> U.S.: Sherri Hendricks +1-702-893-9400 <> Mumbai: Manisha Mehta +91-97699-30065 <>
About the Rapaport - RapNet Diamond Index (RAPI): The RAPI is based on the average asking price in hundred $/ct. for the top 25 quality 1 ct. round diamonds (D-H, IF-VS2, RapSpec-2 and better) with GIA 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 970,000 diamonds valued over US$6 billion and 7700 members in 80 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.
Martin Rapaport (Publisher) grants limited permission to use copyrighted data appearing in this press release in and in conjunction with journalistic copy, reporting or articles concerning diamond pricing and information in graph or data presentation format only. The following credit notice must appear alongside, underneath, or in close proximity to any use of the copyrighted data: “Used with permission of Rapaport USA, Inc. Copyright © 2012 Martin Rapaport. All rights reserved.”
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Tags:
Rapaport, Rapaport
RapNet Diamond Index
RAPI
Diamonds
Diamond prices
De Beers
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