Diamond prices were stable in August, which is traditionally a slower period for the trade, according to a Rapaport press release. Upbeat activity at the Las Vegas shows reflected the robust US market that has been driving demand, it noted. Retail jewellers are having a strong year, spurring optimism across the supply chain.
The RapNet Diamond Index (RAPI™) for 1-carat diamonds edged up 0.1% during August and has increased by 11.3% since the beginning of the year.
RapNet Diamond Index (RAPI™)
| August | Year to date Jan. 1 to Sep. 1 | Year on year Sep. 1, 2020, to Sep. 1, 2021 | |
| RAPI 0.30 ct. | -1.4% | 0.4% | -0.2% |
| RAPI 0.50 ct. | -0.8% | 0.8% | 4.8% |
| RAPI 1 ct. | 0.1% | 11.3% | 18.2% |
| RAPI 3 ct. | 0.2% | 6.8% | 16.9% |
© Copyright 2021, Rapaport USA Inc.
Diamond trading slowed in early August when dealers in Belgium and Israel took vacations. The spread of the Covid-19 Delta variant brought new restrictions and injected some caution into the market.
Rapaport noted that activity picked up during the Las Vegas shows even though visitor traffic and exhibitor numbers were lighter than usual. Many major suppliers and buyers did not attend, but those who did reported good business.
Popular items are proving scarce, it pointed out. Buyers are struggling to find the right goods at profitable prices. Inventory levels are rising but include a growing percentage of stones with black inclusions, milky hues or medium to strong fluorescence. Such stones are more difficult to move.
High rough prices are squeezing profit margins, though premiums softened on the secondary market during August, Rapaport said. De Beers kept its prices unchanged following several hikes in previous months.
Less rough is coming to the market than earlier in the year despite manufacturers maintaining steady production. There remains a backlog of goods at the GIA’s India labs, where the turnaround time for grading is more than a month. The backlog is expected to ease when the Indian market shuts for the Diwali festival in early November.
Supply shortages will likely remain an issue at least until then as jewellers and dealers prepare for the holiday season. Expectations are rising for the important fourth-quarter selling period, especially since the Las Vegas shows signalled that jewellers need goods, Rapaport said.