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Diamond Market More Optimistic

RAPI for 0.30ct. Recovers

Dec 3, 2019 5:00 AM   By Rapaport
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RAPAPORT PRESS RELEASE, December 3, 2019, Las Vegas … Sentiment in the diamond industry improved amid rising expectations for the holiday season. A rallying stock market fueled optimism as the Dow average climbed 3% in November, and anticipation of a US-China trade deal helped as well.

Polished prices firmed, supported by reduced supply and steady US and Chinese demand for RapSpec A3+ diamonds below 1 carat. The RapNet Diamond Index (RAPI™) for 1-carat stones fell 0.5% during November, while RAPI for 0.30-carat improved significantly.

RapNet Diamond Index (RAPI™)
November Year to date
Jan. 1 to Dec. 1
Year on year
Dec. 1, 2018, to Dec. 1, 2019
RAPI 0.30 ct. 5.3% -9.0% -12.6%
RAPI 0.50 ct. 1.6% -6.1% -7.6%
RAPI 1 ct. -0.5% -5.2% -6.3%
RAPI 3 ct. 0.2% -16.1% -17.9%
© Copyright 2019, Rapaport USA Inc.

Polished inventory declined, resulting in shortages of RapSpec A3+ diamonds. There remains a large volume of lower-quality goods, mainly brown, green and milky (BGM) and fluorescent stones. Since buyers are insisting on nonfluorescent or faint goods, diamonds with fluorescence are selling at deeper discounts. The November Rapaport Research Report highlights opportunities to market fluorescent diamonds, as consumers aren’t bothered by the issue even if the trade devalues these stones. 

Manufacturers reduced polished production in the third quarter and closed factories over Diwali, contributing to the inventory drop. Demand for 0.30- to 0.50-carat goods also picked up as jewelers in China prepared for the Chinese New Year. The number of 0.30-carat, D-H, IF-VS2, RapSpec A3+ diamonds on RapNet has declined by over 50% since its peak at the beginning of June. 

Cutters are now raising production to compensate for shortages and for jewelers’ expected restocking orders after the season. Rough demand has improved, with De Beers’ 5% to 7% price cuts helping raise manufacturing profit margins. 

The focus has shifted to retail. Initial reports of Thanksgiving weekend sales have been positive, particularly regarding online and mobile channels. Jewelers have taken a lot of goods on memo to diminish their inventory exposure. In this environment, dealers can add value by matching the right diamond with the right person at the right time, place and price.

To learn more about the market, 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 issues affecting the diamond market. It presents exclusive analytics of diamond prices for a variety of categories, based on sales and inventory data from RapNet® – The Diamond Market. 

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® – The Diamond Market. www.RapNet.com has daily listings of approximately 1.4 million diamonds valued at about $7.6 billion. 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, with over 18,000 members in 97 countries and daily listings of approximately 1.4 million diamonds valued at about $7.6 billion; Rapaport Laboratory Services, providing GIA and Rapaport gemological services in India, Israel and Belgium; and Rapaport Trading and Auction Services, the world’s largest recycler of diamonds, selling over 500,000 carats of diamonds a year. Additional information is available at www.diamonds.net.

Image: Diamond on a ring setting on GIA color grading scale book (Shutterstock)
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Tags: De Beers, diamonds, jewelers, Jewelry, Rapaport, RAPI, RapNet, RapNet Diamond Index
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