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Rapaport Weekly Market Comment
December 29, 2016
Dec 29, 2016 11:00 AM
By Rapaport News
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U.S. consumer
confidence jumps to 15-year high in December with rising expectations for 2017.
Retail stores struggle with cautious holiday season spending, while mobile drives
strong ecommerce growth. Amazon reports record holiday sales, including 10,451
carats of diamonds. Hong Kong sees Christmas tourist rush but luxury spending
restrained ahead of Jan. 28 Chinese New Year. Diamond trading quiet with Indian
manufacturing slow due to demonetization liquidity crisis. The Rapaport Group wishes
everyone a happy, healthy, prosperous and peaceful New Year.
Fancies: Fancy-shape
demand improving with shortages of fine-quality, large Pears and Ovals.
Cushions making strong comeback. Princess and Emeralds slow following seasonal
orders from large U.S. jewelry chains. Some demand for big diamonds, but buyers
extremely picky. U.S. demand steady, Far East weak. Large 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 quiet as wholesalers and dealers take vacation between Christmas and
New Year. Verdict still out regarding holiday jewelry sales as slow(ish) season
salvaged by last-minute shopping rush. Strong dollar discouraging tourist
spending, but rising consumer confidence expected to boost domestic sales.
Belgium:
Polished and rough trading very quiet with most
dealers on vacation during the Christmas to New Year period. Antwerp bourses
closed until January 9.
Israel:
Diamond
trading quiet with many dealers taking vacation over 8-day Chanukah holiday.
Businesses focused on structuring finances to meet new tax requirements. Tax
Authority extends deadline to February 28 for voluntary disclosure of assets, inventory
and unpaid back taxes. Dealers optimistic about U.S. demand in 2017.
India:
Polished
trading slow. Some improvement as Antwerp-based Indian dealers travel to Mumbai
during Belgium vacation period. Domestic buyers cautious with tight liquidity
resulting from government demonetization policy. Chinese buyers shifting to lower price points. Polished
inventory reduced with very little new supply as manufacturers kept production
low after Diwali.
Hong
Kong: Retail
relatively busy over Christmas to New Year period. Notable rise in tourist
traffic but Chinese visitors spending less time and money in Hong Kong than
previous years. Gold demand subdued despite low price level. Retailers
preparing for Chinese New Year with positive expectations in Mainland China.
Dealer trading quiet as large retailers already completed their Chinese New
Year purchases.
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Tags:
Rapaport News
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