The diamond market continued to stabilise in November as holiday shopping began and lower rough supply reduced midstream inventories, according to a Rapaport press release. Prices of rounds increased across all major categories for the first time this year.
Rapaport reported that the RapNet Diamond Index (RAPI™) for 1-carat stones rose 0.8% during the month. The 0.30-carat RAPI increased 0.3%, while the 0.50-carat category saw the strongest performance with a 1.2% rise. The index for 3-carat diamonds increased 0.1%. However, discounts off the Rapaport Price List remained high.
US dealers’ pre-holiday buying boosted the market. Retailers saw brisk sales over the Thanksgiving weekend. Diamond demand in mainland China remained slow. Hong Kong’s luxury market rebounded as tourists returned.
Rough trading was sluggish as manufacturers sought to reduce rough and polished inventories. India continued its two-month voluntary freeze on rough imports, which is scheduled to end on 15th December. Factories in Surat extended their Diwali vacations due to weak demand. De Beers garnered just $80 million at its October sight — the lowest since the peak of the Covid-19 crisis in 2020 — after allowing 100% refusals.
The number of diamonds on RapNet has decreased 4.3% since 1st July, reflecting seasonal demand trends and the drop in polished production.
Provenance became increasingly important as the natural-diamond industry competed with synthetics for consumers’ dollars. European Union member states, including Belgium, considered a proposal for banning Russian diamonds amid the war in Ukraine. The other Group of Seven (G7) governments are also likely to introduce sanctions on Russian stones in early 2024.
The Kimberley Process (KP) remained unable to tackle these issues; the November plenary meeting ended without a final communiqué due to disagreements over how to deal with Russia.
Consumers’ preferences for low-budget items will play a role this holiday season. However, as Martin Rapaport said in his 21st November consumer alert, some retailers are overcharging for synthetics. The holidays are off to a decent start, but the outcome for the industry will depend on whether or not consumers choose the real product.
