Diamond prices rose for some categories in November, according to the Rapaport Group. Pre-holiday demand and a drop in polished production halted the negative trend of the past eight months.

The RapNet Diamond Index (RAPI™) for 1-carat diamonds — reflecting round, D to H, IF to VS2 diamonds — edged up 0.1% as a price increase for IF to VVS1 goods cancelled out a decrease in VVS2 to VS2 prices. The index rose 1.6% for 0.30-carat stones and 1.4% for 0.50 carats, but fell 0.3% for 3 carats.

\r\nInventory of round, D, internally flawless diamonds in 0.30-, 0.50- and 1-carat sizes declined sharply, leading to higher prices. \r\nTrade sentiment improved as US wholesalers saw stable holiday demand. Sales of VS2 to SI2 diamonds were steady, but prices were mixed. The hottest items were 1.50-carat and larger, F to H, VS2 to SI2, 3X diamonds, especially in oversizes. Elongated fancies with excellent makes were moving. Select diamonds were hard to find, while less-desirable goods built up in inventories. Indian retail demand supported the market for smaller diamonds. \r\nIndian polishing factories reopened gradually after Diwali, Rapaport informed. De Beers reduced rough prices by 10% to 15% at its December sight to stimulate demand, but sightholders said the goods remained unprofitable. Prices at tenders are now around 10% cheaper than at De Beers. \r\nTraders were uncertain whether the improvement would continue beyond the holiday season and at what point India’s polished production would return to normal levels. The US stock market rallied after Donald Trump’s election as US president, boosting expectations for luxury spending. \r\nThe industry focused on category marketing, recognising that the current cycle of collapse and recovery was unsustainable. Trade bodies in Antwerp, Dubai and India initiated talks over a $65 million fund to support the Natural Diamond Council (NDC), and De Beers launched a holiday campaign featuring the “A Diamond Is Forever” tagline, it noted.