RAPAPORT PRESS RELEASE, July 7, 2020, Las Vegas… The global diamond market was uncertain in June due to the resurgence of Covid-19 and geopolitical tensions.
Polished prices firmed for select goods. The RapNet Diamond Index (RAPI™) for 1-carat diamonds rose 1.9% during the month, driven by investment demand for 1-carat to 1.10-carat, D, IF, RapSpec A3+ stones. Prices for lower colors and clarities were volatile.
| RapNet Diamond Index (RAPI™) |
|
June
|
2Q
Apr. 1 to Jul. 1 |
1H
Jan. 1 to Jul. 1 |
Y2Y
Jul. 1, 2019, to Jul. 1, 2020 |
| RAPI 0.30 ct. |
-0.5% |
-3.6% |
-6.6% |
-1.6% |
| RAPI 0.50 ct. |
1.1% |
-0.5% |
-5.4% |
-5.7% |
| RAPI 1 ct. |
1.9% |
2.3% |
-6.6% |
-8.7% |
| RAPI 3 ct. | -1.9% |
-7.4% |
-4.7% |
-9.5% |
© Copyright 2020, Rapaport USA Inc.
Sentiment was mixed as US retail gradually reopened following the
lockdown period. Steady bridal sales supported the market for 0.50-carat to
2.99-carat diamonds. There was also interest in jewelry for gifting purposes. China
continues to improve but there are concerns that clashes on its India border
will impact trade between these important diamond centers.
US consumers remain cautious. Unemployment is at 11.1% and some states
are shutting down again due to a spike in coronavirus infections. Jewelers are curbing
their inventory buying and have enough goods to meet third-quarter demand. They
remain focused on e-commerce. The major brands are investing in multichannel
platforms.
Dealers are limited to buying and selling online due to travel
restrictions. Most bourses have reopened but are seeing low activity. India has
extended its voluntary moratorium on rough imports through July as
manufacturers continue operating at significantly reduced capacity.
The decline in rough demand is putting pressure on mining companies.
Smaller producers are willing to drop prices to generate sales and raise liquidity.
De Beers and Alrosa are maintaining higher prices and are prepared to sell fewer
diamonds during the crisis. Manufacturers are seeing greater profitability in buying
rough via tenders than through contract sales.
The trade sees potential for improved demand in the fourth quarter and
hopes to gain market share in discretionary spending this holiday season. The industry
needs to develop a marketing message that taps into consumers’ values and the emotions
that diamonds evoke.
For in-depth diamond price, supply and demand data, subscribe to the Rapaport Research Report here. Rapaport Media Contacts: media@diamonds.net
US: Sherri Hendricks +1-702-893-9400
International: Alex Shine +1-718-878-5138
Mumbai: Prashant Bhojani +91-97694-66855
About the Rapaport Research Report: The Rapaport
Research Report provides subscribers with in-depth analysis of key themes
affecting the diamond market. It also presents exclusive analytics on diamond
prices for a variety of categories, based on sales and inventory data from
RapNet®.
About the Rapaport RapNet Diamond Index
(RAPI™): The RAPI is the average asking price in
hundred $/ct. of the 10% best-priced diamonds, for each of the top 25 quality
round diamonds (D-H, IF-VS2, GIA-graded, RapSpec-A3 and better) offered for
sale on RapNet® (www.rapnet.com). Additional
information is available at www.diamonds.net.
About the Rapaport Group: The Rapaport Group is an international network of companies providing
added-value services that support the development of ethical, transparent,
competitive and efficient diamond and jewelry markets. Established in 1976, the
group has more than 20,000 clients in over 121 countries. Group activities
include Rapaport Information Services, providing the Rapaport benchmark Price
List for diamonds, as well as research, analysis and news; RapNet, the world’s
largest diamond trading network; Rapaport Laboratory Services, providing GIA
and Rapaport gemological services in India, Israel and Belgium; and Rapaport
Trading and Auction Services, the world’s largest recycler of diamonds, selling
over 500,000 carats of diamonds a year. Additional information is available at www.diamonds.net.
Image: A polished diamond viewed through a loupe (Shutterstock).
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