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Holiday Demand Uplifts Diamond Trade
1ct. RAPI rises 0.5% in November
Dec 1, 2020 6:20 AM
By Rapaport
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RAPAPORT PRESS RELEASE, December 1, 2020, Las Vegas… Diamond market sentiment improved in November amid rising expectations for the holiday season. A recovery in China and robust sales during India’s Diwali festival also lifted the mood.
Polished prices are stable for 1-carat and larger goods. The RapNet Diamond Index (RAPI™) for 1-carat stones edged up 0.5% in November.
| RapNet Diamond Index (RAPI™) |
|
November |
Year to date
Jan. 1 to Dec. 1 |
Year on year
Dec. 1, 2019, to Dec. 1 2020 |
| RAPI 0.30 ct. |
-2.9% |
-0.2% |
2.2% |
| RAPI 0.50 ct. |
-2.6% |
11.2% |
13.2% |
| RAPI 1 ct. |
0.5% |
3.4% |
3.5% |
| RAPI 3 ct. |
2.5% |
1.1% |
1.6% |
© Copyright 2020, Rapaport USA Inc.
The holiday season began with strong e-commerce activity as the pandemic pushed consumers to shop online. Digital spending on Black Friday rose 22% year on year to $9 billion, according to Adobe Analytics. The spike in Covid-19 cases in the US and lockdowns in Europe have dampened expectations for in-store traffic during the peak shopping period.
Indian jewelry retailers saw the release of pent-up demand over Diwali. In mainland China, major jewelers are seeing double-digit growth. Hong Kong remains weak as the slump in tourism continues.
Polished trading slowed in late November as dealers in India and Belgium took vacation during Diwali. Indian factories have returned to operating at an estimated 70% of capacity. The lack of manufacturing during the festival has left shortages of select goods. Rough sales have stabilized; De Beers sold $450 million worth in November. The company’s year-to-date sales fell 25% to $2.3 billion.
Suppliers are focused on filling last-minute US holiday orders but are having difficulty replacing sold inventory due to scarcities in popular categories. There is continued strength in lower-color goods and improving demand for ovals, cushions and emerald shapes as consumers seek unique designs at lower price points.
The industry’s focus is on retail, but uncertainty remains due to the spread of Covid-19. Companies with strong e-commerce and social media programs are doing well; those that rely on in-person selling are struggling. Dealers and manufacturers are staying cautious since inventory requirements will likely drop in the coming year.
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: Woman tries on diamond ring. (JCK Events)
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Tags:
De Beers, diamonds, Diwali, e-commerce, Jewelry, Rapaport, RAPI, RapNet
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