Market Comments 12/19/2013

United States: Wholesale trading has quieted as orders have started to slow before Christmas. There are some last minute deals going through but in general, wholesalers are readying to close through next week’s holiday period. Dealers note that a lot of goods have been sent to retailers on memo and there is some expectation that goods will be returned in January. Diamond dealers and jewelry wholesalers reported disappointing sales during the Christmas selling season with polished diamond prices buoyed by shortages in the market. There is steady demand for SI goods in most sizes and good demand for unique fancy shape and fancy color diamonds.

Belgium: Polished trading has slowed after a relatively busy period and is expected to remain quiet in the coming weeks as businesses close for Christmas and New Year. There is stable demand for 0.30-carat to 0.90-carat, VS-SI goods and relatively strong demand for fine-cut, triple EX diamonds. Rough trading has improved slightly following the De Beers December sight but is also expected to quiet down during Christmas.

China: The wholesale diamond market is stable with good demand for 0.30-carat to 0.50-carat, G-H, VS-SI, triple EX diamonds. Dealers note a slight slowdown during Christmas, before the Chinese New Year rush for goods. There are mixed expectations for the Chinese New Year retail season that begins on January 31, as economic growth in 2014 is poised to remain about in line with 2013.

Hong Kong: Polished trading has quieted in the past week as dealers expect activity to improve in January ahead of the Chinese New Year. Some businesses have scaled down operations during the Christmas period, which has affected turnover within the trade. Some note that dealers are holding large inventory while sales have been sporadic. 

India: Polished trading has improved from last week and buyers note a shortage of desirable goods in the market due to low-level manufacturing in November. Buyers report that there is a shortage of diamonds suitable for the local market in the ranges of 0.30-carat to 3-carat, J-M, VVS-SI2. There is good demand for dossiers, particularly for 0.30-carat to 0.50-carat, VS-, diamonds. There is a steady stream of overseas buyers in the market while domestic demand has improved slightly during the ongoing wedding season. Rough trading improved after the De Beers sight with sellers raising their prices slightly and Indian goods gaining better premiums on the secondary market. 

Israel: Sentiment has improved as some dealers note that sales during the Christmas selling season were better than previously thought. There is good demand for dossiers and for large stones in sizes 3-carat to 5-carat and rising investment demand for special diamonds above 10 carats. Suppliers are starting to shift their focus from the U.S. to the Far East ahead of the Chinese New Year. Rough trading has also improved from previous months.