Low expectations for next
week’s Hong Kong show, with fewer suppliers and buyers attending due to ongoing
demonstrations. Dealers hoping polished trading will improve as US holiday season
approaches. Rapaport calls for $1B industry-wide marketing campaign for engagement
rings, including $500M matching funds from mining companies. Signet 2Q bridal
sales -4% to $560M, Tiffany engagement jewelry -3% to $277M. CIBJO urges
jewelers to focus on environmentally conscious, gender-neutral Gen Z-ers (ages
15 to 25). Midstream inventory declined due to reduced manufacturing. Alrosa
Aug. rough sales -36% to $180M. Rapaport announces first Estate Jewelry
Auction, Nov. 3-7, in New York.
Fancies: Fancy shapes soft, reflecting slowdown in overall
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 highest
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: New York wholesale market quiet. Dealers struggling to
compete with Indian suppliers who are increasingly selling direct to retailers.
Some diamantaires diversifying into niche segments such as estate jewelry to
improve profit margins. Fashion jewelry growth stronger than bridal.
Belgium: Slightly better activity in both the rough and
polished markets, with some demand for 0.30 to 1 ct., G-J, VS-SI, RapSpec A3+. Pointer-size
fancy-yellow and fancy-intense-yellow stones also firmer. Buyers are selective
and pushing for higher discounts as they sense suppliers’ need to raise
liquidity and move inventory. Rough auctions stronger than last month, as
manufacturers require goods for the US holiday season before the Diwali break.
Israel: Mixed sentiment. Some US demand ahead of the fourth-quarter
selling season, but concerns remain about the Hong Kong fair. Fewer dealers
traveling to the show. Stable interest in 0.50 to 1 ct., G-J, VS-SI, RapSpec
A3+ goods. Faint and stronger fluorescent goods selling at notable discount to
nonfluorescent. Dealers looking for buying opportunities following 2019 price
declines.
India: Market for 0.30 to 0.40 ct. stabilizing
due to lower production. Buyers looking to fill specific requests rather than
build inventory. Fewer dealers than usual going to Hong Kong show due to
ongoing protests and drop in Chinese wholesale demand. Suppliers focused on 0.30
to 1 ct., D-H, VS-SI goods. Manufacturers maintaining low polished production
but starting to consider rough purchases before Diwali break, which begins on October
27.
Hong Kong: Political protests continue to impact wholesale and
retail business. Hope for busier trading during next week’s show, but few
expect successful fair compared to previous years. Stable demand for 0.30 to 1
ct., G-K, VS-SI1 diamonds, while buyers are pushing for deeper discounts on
SI2-I1 goods. Chinese buyers cautious, even as consumer spending on mainland
appears robust. Rising interest in colored gems amid shift to lower-budget
jewelry.
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