Diamond trade slow due to seasonal lull and
market uncertainty. US jewelry sales compensating for weakness elsewhere, but retailers
holding less inventory. New US tariffs on China imports to impact jewelers more
than diamantaires. Trade war affecting confidence as stock-market wealth
declines, with Dow -3% (August 1 to 7). Political protests creating concern for
important Hong Kong show. Yuan’s devaluation to CNY 7/$1 and rupee’s slide to
over INR 70/$1 raise costs of local China and India diamond buying. Tiffany
expands into India, with Delhi store to open in 2H. Titan Company 1Q sales +16%
to $737M, profit +11% to $51M. Jewelers of America elects Holly Wesche as new chair.
Fancies: Fancy shapes soft, reflecting slowdown in high-end demand. 3 to 8
ct., I-K, VS-SI1 moving better than rounds as dealers and consumers shift to
lower price points. Well-known brands are paying best prices, as are buyers
with specific requests. Ovals for fashion jewelry moving well, especially 1.50
and 2 ct., G-H, VS and H-K, SI2. Marquises and Princesses weak despite reduced
manufacturing. US sustaining market for commercial-quality, medium-priced
fancies under 1 ct. Chinese consumers seeking fancy shapes at better prices.
Off-make, poorly cut fancies illiquid and hard to sell, even at very deep
discounts.
United States: Slow summer trading. Buyers hesitant to
make large inventory orders as prices continue to soften. Stable demand for round, 1 ct., G-H,
VS-SI, RapSpec A3+ diamonds. Ovals doing well. Jewelry sales mixed,
with focus on bridal and selling to self-purchasing women. Jewelers planning
for holiday season and taking more goods on memo.
Belgium: Market very
quiet, with bourses officially closed and most dealers on vacation until August
19.
Israel: Traders preparing for next week’s summer
break, when bourse will close from August 12 to 22. Dealers reducing inventory
and credit lines amid trade war and diamond-market liquidity concerns.Low
expectations for September Hong Kong show due to political protests. Demand
focused on US market, with steady interest in 0.70 to 1.50 ct., G-H, VS-I1
diamonds. Rough sector quiet; buying and selling polished is yielding better
profits than manufacturing rough.
India: Little buzz for IIJS Mumbai show amid
reduced emphasis on diamond trading, as well as caution in jewelry sector due
to high gold price. Rupee depreciation (-3% this week to INR 71/$1) raising
costs for suppliers to domestic market but benefiting large manufacturers that
export. Small-stone cutters under pressure from drop in local demand. Polished
production well below capacity as manufacturers try to reduce stock and boost
liquidity.
Hong Kong: Trade war escalation and currency devaluation fueling uncertainty.
Protests impacting diamond activity. GIA dossiers steady, but stones above 1
ct. weak. Some concern that political instability will affect attendance at
important September show. Chinese tourist spending set to slow further after
yuan depreciation.
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