Rapaport Magazine
Economics

Global Diamond Demand

October 2007

By Rapaport
RAPAPORT... Antwerp

• 1 to 7 points: Everything’s moving. Rough goods in this category went up too much and polished did not keep pace with it. As typical U.S. market goods, piqués don’t follow the same trend.
• 20 to 50 points and 3-grainers: K-M colors are a little soft across the board. • 1 carat is pretty strong across the board. No availability in clean goods. Moving faster than 2-caraters in SI+, H+ goods.
• Fancy shapes: SI+ are strong, as is demand for 50-pointers+ in pears and hearts, but not so much in princess.
• Rough: The sky’s the limit!


China

• 10-per-carat, good make, VS+/H-I, are selling at approximately $630 to $660.
• 6-per-carat, good make, VS+/H-I, are selling at approximately $830 to $870.
• 4-per-carat, good make, VS+/H-I, are selling at approximately $1,040 to $1,080.
• 3-per-carat, good make, VS+/H-I, are selling at approximately $1,250 to $1,350.
• 10-per-carat, good make, VS+/I-J, are selling at approximately $560 to $610.
• 6-per-carat, good make, VS+/I-J, are selling at approximately $780 to $830.
• 4-per-carat, good make, VS+/I-J, are selling at approximately $920 to $1,200.
• 3-per-carat, good make, VS+/I-J, are selling at approximately $1,150 to $1,250.
• -1 point, SI/G-I, are selling at approximately $190 to $230.
• -2 points, SI/G-I, are selling at approximately $270 to $310.
• 3 to 7 points, SI/G-I, are selling at approximately $320 to $380.
• 10 points, SI/G-I, are selling at approximately $400 to $480.
• 15 points, SI/G-I, are selling at approximately $530 to $590.


Hong Kong

• Demand for large stones dominates. Stones of 5 carats and larger in all colors and clarities are very hot.
• Recent increases in the K-M prices in the Rapaport List might create some shifts in demand from the Indian buyers during the September show. But, overall, show exhibitors are expecting good results.
• Demand for 1-carat sizes remains stable but 2 carats are still weak.
• Setting sizes in Indian goods are beginning to be more in demand and should see an improvement, especially after the September show as jewelry manufacturers get new orders.
• Dossiers are moving well. 30 pointers, which were weak, are finding a new lease on life. 50 points and larger are still in good demand.


India

• Rupee appreciation has led to a temporary halt on transactions, with traders in a wait-and-watch mode. There are shortages of goods across the board,
especially for collection goods.
• SI category is slower compared to better goods and lower piqué goods.
• There is very good movement across the board in -2 and melee category.
• Movement is stable for stars.
• 0.08 to 0.18 carats in VS1+ and I1-I2 are moving well.
• 1/5 and 1/3 sizes are moving well for lower-quality goods, mainly I1.
• 0.50 carats are stable overall, with better movement for SI category.
• 0.70 to 0.99 carats are moving more slowly than they used to and shortages for collection goods persist.
• Demand is stable for 1 carat+, with premium sizes doing very well in better-quality goods.
• Movement is average for 2 to 2.99 carats, with shortages in 2.60 carats+, VS+/I+.
• Demand is very good for 3 carats+ and shortages persist.
• In fancy shapes, marquise is selling very well and rough is commanding a premium due to shortages in supply and less production. Demand for princesses is comparatively weaker.


Israel

• Demand is high for clean goods and better F+ colors.
• Fancy colors in all sizes are popular.
• Demand is good for 1 carat, with decreased interest in 2 carats.
• 6 carats+ is hot.
• 2.5 carats+ pears and marquises are in demand, with good movement of 0.50- to 1.50-carat hearts.


Japan

• Summer is gone, but no major movements are observed in the market.
• Larger stones are drying up in the market.
• As the yen is strengthening, diamond buying by foreigners has subsided.
• Japanese jewelry manufacturers are moving toward
traditional Asian materials such as coral, jade, pearls.


Russia

• ALROSA’s 24th international rough diamond auction sold all 131 lots offered, consisting of 17,000 carats, for $38.4 million. The largest diamond weighed 229.11 carats and 12 were larger than 50 carats.
• Jewelry consumption in Russia increased 27 percent in the second quarter of 2007 compared to the same period in 2006, the World Gold Council (WGC) reported.


U.S. Retail

• Earrings sell well, especially solitaires; pendants and bracelets follow.
• Carat size is usually 1 carat to nearly 2 carats, but starting size can be three-quarters of a carat.
• VS-SI for clarity, colors E-H, are less in demand among the more price-conscious.


U.S. Wholesale

• Large rounds and princesses are in strong demand, but rounds are doing better.
• Small melees are doing very well.
• Modest demand exists for ovals.
• Some demand exists for yellow diamonds, half carat to 2 carats, in fancy yellows and pinks.
• Rough supply is tight, but keeping pace with demand.

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

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