Diamond Prices Stable in May

Jewelers Navigating Changing Retail Environment

Jun 5, 2017 5:00 AM By Rapaport

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RAPAPORT PRESS RELEASE, June 5, 2017, New York… Polished diamond trading was sluggish in May, with dealers waiting for this week’s Las Vegas shows to get better deals and assess the pulse of the market. Suppliers held prices firm for new polished production they hoped to sell in Las Vegas, but were willing to reduce prices on leftover old stock. Buyers avoided making large inventory purchases before the show.

The RapNet Diamond Index (RAPI™) for 1-carat, GIA-graded diamonds declined 0.3% in May and was down 1.7% since the beginning of the year.

© Copyright 2017, Rapaport USA Inc.

The Rapaport Monthly Report – June 2017 notes that rough diamond prices firmed 1% to 2% during the month, with De Beers and Alrosa limiting supply, and manufacturers raising polished production. Rough prices increased an estimated 4% since the beginning of the year.

Chinese demand has been supporting the market as consumer spending in mainland China improves, while US demand has been restrained ahead of the Las Vegas shows. US jewelers are also adapting to a changing consumer environment, which is impacting their inventory requirements.

Disappointing first-quarter sales at Signet Jewelers and Tiffany & Co. highlighted shifts in the retail environment and a slowdown in jewelry demand. The major jewelers noted a highly promotional environment as department stores tried to win back customers and independent jewelers were liquidating at deeper discounts. Consumers are increasingly looking for better deals online and avoiding crowded shopping malls.

There is opportunity for savvy independent jewelers to gain market share. Jewelers that are investing in social-media marketing and innovation and adapting to changing consumer needs are doing well. Those stuck in the old way of doing business are struggling.

Diamond companies that can demonstrate an ability to add value to such jewelers in this changing marketplace will have a successful show, setting themselves up for the end-of-year holiday season.

The Rapaport Monthly Report is available at store.rapaport.com/monthly-report.

Rapaport Media Contacts: media@diamonds.net
US: Sherri Hendricks +1-702-893-9400
International: Gabriella Laster +1-718-521-4976
Mumbai: Priyanka Vaidya +91-97699-38102

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 – Rapaport Diamond Trading Network. www.RapNet.com has daily listings of over 1.3 million diamonds valued at approximately $8 billion. 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, with over 15,000 members in 95 countries and daily listings of over 1.3 million carats valued at approximately $8 billion; 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 a year. Additional information is available at www.diamonds.net.

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Tags: Diamond prices, diamond trading, jewelers, las vegas, Rapaport, Rapaport Monthly Report, Rapaport News, RAPI, RapNet, RapNet Diamond Index, retail, Signet Jewelers, Tiffany & CO.