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Rapaport Weekly Market Comment
July 28, 2016
Jul 28, 2016 11:00 AM
By Rapaport News
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NY jewelry
shows quiet. Better goods stable but market sentiment weak. Dealers cautious
ahead of summer vacations in Belgium and Israel. Low expectations for next
week’s Mumbai show as gold jewelry sales decline after price surge (+28% in
Rupee for 2016). De Beers 1H revenue +8% to $3.3B, underlying earnings +5% to $379M.
Petra FY sales +1% to $431M. LVMH 1H jewelry & watch sales +4% to $1.8B.
U.S. government guarantees Barclays Bank $125M loan facility for Botswana
manufacturing. Chow Tai Fook plans to supply diamonds to U.S. retailers as
China jewelry sales slow. Rapaport to offer guaranteed 100% natural, untreated,
melee diamonds for sale at August 9-18 auction.
Fancies: Markets slow with some weakening of
prices. Ovals and Pears doing well. Cushions supported by specific orders.
Emeralds selling with improving large-stone demand. Princess and Hearts slow.
Top quality fine-cut fancy shapes OK but buyers are extremely picky. Overall
fancy shape prices relatively soft. U.S. demand supporting market for
commercial-quality fancies, especially for sizes under 1 ct. Far East fancy
demand weak. Buyers are very selective and insisting on excellent-shape
proportions. Significant price differentials between excellent- and average-cut
fancies. Off-make, poorly-cut fancies illiquid and very hard to sell, even at
very deep discounts.
United
States: Focus on NY
Jewelry week but activity slow. JA, Luxury and Antique shows more about
networking than trading. Jewelers trying to differentiate themselves to profit
in weak market. Color diamonds and specialty items gaining attention. Dealers
concerned as summer quieter than usual. Steady demand for 1 to 2 ct., G-H,
VS-SI diamonds.
Belgium: Polished trading relatively busy with
suppliers closing deals before three week vacation (August 1 to 22). Dealers
happy to take a break as global trading expected to slow until September.
Steady demand for 1 to 2 ct., H-J, VS-SI diamonds. Premiums rising for 3X over
2X. 3 ct. weak. Rough trading stable during De Beers sight week.
Israel: Polished trading quiet due to summer
slowdown and sluggish global demand. Dealers preparing for vacation with Israel
Diamond Exchange to close August 15 to 28. Dealers hoping “Blue & White
Fair” on August 2 will improve activity. Demand for 1 ct., D-H, VS-SI slightly
softer. Small stones weak with some suppliers shedding melee inventory amid rising
concerns that synthetic melee will gain market share.
India: Polished trading slow. Buyers
selective and uncertain about prices. Few foreign buyers in Mumbai as U.S.,
Israel and Belgium seasonally quiet. Steady demand from major U.S. retail
programs. Low expectations for IIJS show (August 4 to 8) as gold demand
stumbles. Steady demand for 1 ct., G-H, VS-SI, 3X goods. Stars and melee weak
amid concerns synthetics will have long-term market impact. Rough demand and
manufacturing levels stable.
Hong
Kong: Dealer
sentiment mixed with some noting slight improvement this week. Chinese demand
stable. Hong Kong retail sluggish. Larger jewelers cautious and seeking new
revenue streams as retail sales continue to slump. Gold jewelry sales weak
after 2016 gold price rally. Gem-set jewelry sales stable. Steady demand for 1
ct., H-J, VS-SI, 3X diamonds.
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Tags:
Rapaport News
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