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Rapaport Weekly Market Comment
November 10, 2016
Nov 10, 2016 11:00 AM
By Rapaport News
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Great
changes in America as Trump victory to have major impact on political, social
and economic conditions. Diamond and jewelry sector will benefit as new
policies create a more prosperous middle class and greater numbers of wealthy
consumers. Indian government cracks down drastically on cash by eliminating 500
and 1,000 rupee notes. Jewelry and gold sales surge as consumers dump currency.
Titan Company 2Q sales +2% to $824M, profit +24% to $27M. Blue Nile to be sold
for $500M to Bain Capital and Bow Street as 3Q sales -4% to $105M, profit -35%
to $1.3M. U.S. Sep. polished imports +33% to $2.2B. Sarine to introduce
automated color and clarity grading next year.
Fancies: Fancy-shape market stable. Curved
fancy shapes improving. Princess, 0.50 to 1 ct. waking up for U.S. holiday
season. Large sizes getting some interest, but buyers are extremely picky.
Fancy shape prices relatively soft in a buyer’s market. U.S. demand supporting
market for small-to-medium size, commercial-quality fancies. (H-J- SI2-I2). Far
East fancy demand weak. 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: Polished
trading soft but prices firm for 0.70 to 1.25 ct., H-J, SI, RapSpec A2+
qualities. Memo suppliers demanding quick returns before Thanksgiving. Some
trading activity in New York but focus shifting to Christmas retail promotions.
Jewelry market sentiment mixed after Trump election victory.
Belgium: Positive mood with steady demand for 0.30 to 0.90 ct., H-J,
SI diamonds. 1 ct., H+, VVS+ softer. Fancy shapes stable with improving demand
for 1 ct. and larger Emeralds, Pears and Cushions. Rising demand for high-end,
investment-quality diamonds. Manufacturing profit margins tight with steady
rough demand during De Beers sight week.
Israel: Markets stable. Manufacturers challenged by low profits with
high rough prices and scarce supply. Dealer prices firm with steady U.S. demand
ahead of Thanksgiving. Good Far East demand for 0.30 to 0.50 ct., G-J, VVS-SI,
RapSpec2 diamonds as jewelers prepare for Chinese New Year.
India: Market shocked by new currency regulations as government
cracks down on black markets. Consumer rush to buy gold and jewelry after
government cancels 500 and 1,000 rupee notes. Currency may be deposited in
banks until Dec. 31. Trading quiet as businesses slowly return from Diwali
break. Factories still closed with workers expected to return Nov. 21.
Hong
Kong: Trading
relatively quiet. Dealers filling specific orders with little buying for
inventory. Retailers preparing for Chinese New Year with trading slower than
previous years. Steady demand for 0.30 to 0.50 ct., G-H, VS-SI diamonds.Hong Kong retail sales weak with Sep.
jewelry, watch and luxury gift sales -12%. China jewelry market stable with
strong online sales expected on Singles Day (11/11).
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Tags:
Rapaport News
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