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Rapaport Weekly Market Comment
Nov 12, 2020 10:30 AM
By Rapaport News
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Sentiment improving as US consumers gain confidence following Biden election win. China strong with robust Singles’ Day sales. E-commerce driving growth as jewelers invest in multi-channel platforms and adjust to remote selling strategies. De Beers values 2019 diamond jewelry demand +0.7% at $79B; estimates 1H 2020 US sales -40%, China -45%, India -30%. Christie’s Geneva sells $37M (89% by lot). Sotheby’s brings in $52M, with 14.83 ct., fancy vivid purple-pink Spirit of the Rose diamond going for $26.6M ($1.8M/ct.). Alrosa 3Q profit -44% to $99M. Lucara finds 998ct. rough; HB Antwerp to polish stone. The Rapaport Group wishes all our friends a happy Diwali.
Fancies: Reduced inventory supporting prices for select fancy shapes. Ovals and Pears strong in 1.50 to 2 ct., G-K, VS-SI categories and 3 to 5 ct. SIs. Princesses improving. Excellent cuts and nice shapes in demand and selling at premiums. Rising orders in China helping the market. Dealers hoping for increased sales of fancy-shape engagement rings as consumers seek alternative designs at lower cost. High availability of fancies below 1 ct. Off-make, poorly cut fancies illiquid and difficult to sell.
United States: Optimism as holidays near and election uncertainty abates. Retailers preparing inventory and starting promotions. Spike in online sales expected. Bridal moving well; single-stone engagement rings and eternity bands driving the category. High-end goods outperforming commercial qualities and maintaining prices amid shortages of 4 ct.+, D, IF diamonds. Wholesalers struggling to source matching 1 to 2 ct., G-H, VS-SI pairs for earrings, which are popular gift items.
Belgium: Short week due to Armistice Day public holiday. Dealers cautious amid government lockdowns to curb rise in Covid-19 infections. European jewelers concerned about weak consumer confidence due to second coronavirus wave. Suppliers with the right goods selling at firm prices. Focus is on US demand. Rough market stable following De Beers sight.
Israel: Trading slightly slower than in previous weeks as US clients complete seasonal orders. Hong Kong and Europe weak. Improvement in 0.70 to 1.50 ct., I-M, SI-I2 diamonds as lower colors offer more attractive price points. Widening gap between top-quality and lesser categories as more inventory becomes available. Buyers showing preference for 3X, no fluorescence, no brown, green, milky (BGM) goods.
India: Steady polished trading. Dealers prepared to accept smaller margins in favor of greater turnover volume. Foreign buyers relying on Mumbai-based brokers to source goods due to travel restrictions. Manufacturers finalizing orders and settling payments before next week’s Diwali break. Factories minimizing vacation to make up for lost production time during lockdown earlier in the year. Good gold jewelry demand ahead of the festival.
Hong Kong: Emphasis on e-commerce as online sales surge for 11/11 Singles’ Day. China retail strong. Hong Kong jewelers sluggish due to lack of tourist traffic. Signs of loosening cross-border restrictions, with move to create travel bubble with Singapore. Difficult to find top-quality 1 ct. stones. 0.30 to 1 ct., K-L, SI and lower selling well in China.
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Tags:
Rapaport News
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