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Diamond Market Cautious Ahead of Holidays
1ct. RAPI +1% in October
Nov 3, 2020 5:17 AM
By Rapaport
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RAPAPORT PRESS RELEASE, November 3, 2020, Las Vegas… The diamond market continued to improve in October as holiday orders picked up. Supply shortages helped buoy prices of 1-carat and larger stones. However, the positive sentiment of the previous month weakened due to a rise in global Covid-19 cases and uncertainty surrounding the US election.
The RapNet Diamond Index (RAPI™) for 1-carat polished diamonds rose 1% in October and was up 2.9% from the beginning of the year.
| RapNet Diamond Index (RAPI™) |
|
October |
Year to date
Jan. 1 to Nov. 1 |
Year on year
Nov. 1, 2019, to Nov. 1 2020 |
| RAPI 0.30 ct. |
-2.3% |
2.8% |
10.7% |
| RAPI 0.50 ct. |
-0.5% |
14.2% |
17.7% |
| RAPI 1 ct. |
1.0% |
2.9% |
3.0% |
| RAPI 3 ct. |
1.8% |
-1.3% |
-1.1% |
© Copyright 2020, Rapaport USA Inc.
The RAPI index stabilized toward the end of the month as more goods became available and because prices had increased substantially since the start of the pandemic. Buyers shifted to lower-color diamonds (I to L), which had seen less of a price hike than D to H. This was particularly true for 0.30 to 0.50 carats.
Manufacturers raised polished production after the Indian government eased its Covid-19 restrictions. Larger factories are operating at an estimated 70% to 90% of capacity. Cutters are planning a shorter vacation than usual over Diwali — which begins November 14 — as they work to meet holiday demand and make up for time lost during the lockdown.
Rough buying increased in the third quarter and continued climbing at a slower pace during October. De Beers sales for the quarter rose an estimated 10% year on year to $917 million, with the September sight up 57%.
The mining companies are still expressing caution and will likely adopt a more measured approach once holiday orders have been filled and the polished supply balance has been restored.
Expectations are mixed for the holiday season. Spending projections are lower than last year. Retailers began their promotions early to avoid overcrowding among last-minute shoppers. Jewelers with a strong digital presence are doing well as e-commerce continues to support the retail market and drive growth.
For in-depth diamond price, supply and demand data and analysis, 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 for diamond prices in 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 Rapaport gemological services in India, Israel and New York; and Rapaport Trading and Auction Services, the world’s largest recycler of diamonds, selling over 400,000 carats of diamonds a year. Additional information is available at www.diamonds.net.
Image: A Forevermark engagement ring. (De Beers)
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Tags:
De Beers, diamond, diamonds, Diwali, Jewelry, Rapaport, RAPI, RapNet, US elections
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