Rapaport Magazine

Global Diamond Demand

May 2007

By Rapaport


• Demand is good. Some shortages in clean goods in VS and up across the board in colors, sizes and shapes.
• Larger stones in 3 carats and up are doing well.
• The prices for 2-caraters are picking up slowly.
• SI, piqué goods in 30, 40, 50 and 70 are weaker.
• Fancy shapes in VS-SI in the better colors are very strong.
• It’s been confirmed that growth is resuming in sales of rough and trade in general.


The majority of goods selling in the market are:
• 10-per-carat, good make, VS+/H-I, selling at approximately $620 to $660. • 6-per-carat, good make, VS+/H-I, selling at approximately $830 to $870.
• 4-per-carat, good make, VS+/H-I, selling at approximately $1,040 to $1,080.
• 3-per-carat, good make, VS+/H-I, selling at approximately $1,300 to $1,400.
The market also accepts:
• 10-per-carat, good make, VS+/I-J, selling at approximately $550 to $580.
• 6-per-carat, good make, VS+/I-J, selling at approximately $780 to $830.
• 4-per-carat, good make, VS+/I-J, selling at approximately $900 to $950.
• 3-per-carat, good make, VS+/I-J, selling at approximately $1,250 to $1,350.
• Small goods in 0.01 to 0.02 carat and 0.04 to 0.07 carat in VS-SI are in good demand.
• 0.25 to 0.50 carat in G-H/VS are in very good demand.
• Fancy shape demand increased for pear, oval and princess shapes in 1 carat up in J-K/ VVS-VS with good make.

Hong Kong

• Large stones, especially 5 carats, are in very strong demand with 3-caraters also moving well.
• 2-carat sizes weaker, but can be sold if prices are attractive.
• Demand is normal for 1 to 1.50 carats but there is oversupply in 1-carat sizes.
• 0.50 and larger with GIA dossiers are in demand, especially 0.80+.
• Smaller pointers are weak.
• 1/5 to 1/10 for the China market continue to be in high demand.
• Demand is good for 1/100 to 1/200 and smaller Indian goods.
• Fancy cuts in good models are moving well in all sizes.


• Trading activity improved toward the end of March but buyers say they do not have enough choice to make a good selection. The main concern for the polished market is the volatile tendency of the dollar, which has put brakes on polished sales. Demand is still strong for
-2 in the range of $200+ category. There is an extreme shortage of goods in this category.
• Movement is better in VVS-VS/I+ in the stars category.
• Activity is good in melee goods in I2+/I+.
• Movement good in 0.08 to 0.18 carats in the $300 to $450 range and demand is good in the 1/6, I1+/I+ category.
• Movement is good in 1/5, 1/4 and 1/3 in piqué goods. Movement is also good in 1/5, SI1+/H+.
• 0.50 carats have better movement in I1-I2/I+ and VVS/H+ goods.
• 0.70 carats are in good demand but 0.80 carats+ are difficult to source in most categories.
• 0.90 carats are in very strong demand with supply shortages in the SI1+/I+ category.
• 1 carat is in good demand for collection and piqué goods but there are shortages for premium sizes.
• 2 carats have average movement in collection goods.
• 3 and 4 carats in good demand; some shortages in supply.
• 5 carats+ in very strong demand with extreme shortages.
• Demand is strong for princesses, marquises and pears in collection goods across the board.


• Demand is good for big stones, particularly 6 carat+.
• Pear and heart shapes in big sizes 3 carat+ are faring particularly well.
• Overall demand is strong for fancy colors in 3 carat+ as well as fancy color pears 1 carat+.
• Demand is slow for small sizes, but strong for 10- to 50-point square shapes.
• Supply is good for low colors J-L from Hong Kong in VS1+.


• The market in general is weak. Indian buyers got active when the yen weakened.
• As the bridal market continues to lag, pointers are weak.
• The Platinum Guild International’s (PGI) “Propose Again” campaign is being very well received.
• Demand for larger sizes of 3, 5 and 10 carats is strong. Larger stones are becoming scarce.
• It is suspected that high-color, better-quality-material stones — smalls, melees, stars — are being shipped to Hong Kong to be set in jewelry in Mainland China and then exported to the U.S.


• Smolensk Kristall sales in the first quarter of 2007 grew 49 percent year-on-year to reach a record $96.9 million.
• ALROSA sold 83 out of 85 offers of rough, worth more than $18 million, in its 21st special-size diamond auction, which ended March 23.

U.S. Retail

• Bridal and solitaires go larger, moving from one-half carat to 1 carat, with additional demand for one-and-a-half to 2 carats.
• Compound centers are strong.
• Yellow gold is getting more popular with customers 35 and older.
• Round, radiant, Asscher and emerald cuts do well in the Midwest.

U.S. Wholesale

• Trading activity has slowed.
• Polished prices are uneven.
• Rough prices fluctuate.
• Bigger and better goods are mixed.
• 3-caraters and up are hot.
• Stones below 1 carat are better.
• Fancies are stable across the board.
• 2- to 3-carat fancies are weaker.
• Princesses continue to get calls.
• Cushions are healthy.
• Asschers, emeralds and radiants are even.
• Pears and ovals continue to grow.
• Hearts and marquises are typically sluggish.
• Fancy colors remain in demand.

Article from the Rapaport Magazine - May 2007. To subscribe click here.

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