|
|
Market Comments 12/27/2012
Dec 27, 2012 6:00 PM
|
|
|
Caution: Automatic Jan. 1 U.S. tax hikes may significantly reduce diamond demand… News: U.S. holiday sales disappoint as consumer confidence slides on stalled budget talks. Final effort to beat fiscal cliff deadline expected but inevitable tax hike will reduce 2013 jewelry demand. MasterCard Advisors SpendingPulse reports Nov./Dec. retail sales +0.7% vs. +2% in 2011. comScore says online sales +16%. Diamond trading quiet as U.S. and Belgian markets close for Christmas break and Indian manufacturing cautiously resumes after Diwali. Israel and other markets focusing on Far East Chinese New Year demand. The Rapaport Group wishes everyone a happy, healthy, prosperous and peaceful New Year.
Fancies: Fancy market steady. Smaller sizes selling well with good demand for 3/4's. Lower fancy shape price points attracting price sensitive buyers. Demand for Princess replacing Cushions. Improving demand for fancies at attractive price points encouraging manufacturers to shift production to fancy shapes. Extreme price differentials between excellent/fine and average cut fancy shapes. Caution: Prices for green, grey and brown tinted diamonds 10-15% below non-tinted. Green tint often indicates Marange origin.
Global Markets
United States: Wholesale diamond trading is quiet with most businesses closed between Christmas and New Year. There are still mixed reports regarding the holiday wholesale season with many waiting for January returns before giving a final assessment. Nice-make, princess cuts in SI qualities are in demand and difficult to source. Retailers report relatively flat sales compared to last year. While there is some optimism for a better year in 2013, the stalled fiscal cliff negotiations are weighing down confidence amid concern that higher taxes will result in tighter jewelry spending.
Belgium: Trading is quiet with most businesses closed between Christmas and New Year and bourse services officially closed during the week. Many Antwerp-based Indian dealers have traveled to Mumbai for the period. There is steady demand for 0.50-carat to 3-carat, G-H, VS2 goods and the same sizes in D-F, SI1 categories, as well as good demand for nice-make fancies. Rough trading is weak due to the season but also as dealers and manufacturers are concerned about high prices and their subsequent potential to profit in the first quarter of 2013.
Israel: Trading is stable in Ramat Gan with the focus shifting from supply to the U.S. toward the Far East for the Chinese New Year. There is a sense that December was better than expected even as trading remains below levels seen in previous years. Demand is strong for nice-make, triple EX goods, which are difficult to find. There is also relatively strong demand for princess cut diamonds. Traders are optimistic the market will improve in 2013.
India: Polished trading was restrained as most foreign buyers remained away during the Christmas season. There is some demand for small size goods from visiting Indian buyers based in Antwerp and stable Far East demand for dossiers. There is relatively good demand and short supply of SI- clarity stones. Domestic jewelry demand is steady due to the ongoing wedding season. Rough trading has yet to pick up as sufficient supply and weak demand continue to define the market. Manufacturing remains at below capacity.
China: Jewelers are working to boost year-end sales with promotions and discounts amid rising competition from online retailers. Wholesale diamond buying remains cautious and dealers are still avoiding large purchases. While sales growth cooled in 2012, many expect new government stimulus plans will boost consumption in 2013. Demand is concentrated on the traditional Chinese goods in the category of round, 0.30-carat to 1.10-carat, D-H, VS-SI, GIA-certified stones, with rising interest for fancy shape and fancy color diamonds.
Hong Kong: There has been some improvement in wholesale diamond demand but concern about the global economy – particularly the U.S. fiscal cliff – continues to diminish confidence to buy diamonds. Jewelry retailers note improved sales during the Christmas shopping season, including for better quality diamond jewelry.
|
|
|
|
|
|
|
|
|
|
Tags:
|
|
|
|
|
|
|
|
|
|
|