RAPAPORT...
Antwerp
• Since the Antwerp Diamond Center was closed for the August holidays and reopened only at the end of the month, no real trend could be seen at the time this report was being written.
China• The wholesale market is getting busy because preparation for the National Day Golden Week in October has begun.
• Olympic-themed jewelry, gold and silver bars, coins, figurines and decorative items are popular.
• Demand is good for round in 0.30 to 0.70 carats in D-G, VS.
• Demand is also good for round in 0.30 to 0.50 carats in I-J, VVS.
• Demand is strong for round G+, VS,
1/2-carat fine-make diamonds with Gemological Institute of America (GIA) certificates, especially triple EX goods.
• Demand is stable for larger, round stones in 1 carat+/VS+/H+, GIA-certified and fine make.
Hong Kong
• Demand continues for 10 carats and larger but is much slower for 3 to 5 carats.
• Demand is stable for 1-carat sizes and there is a shortage of VVS goods in all ranges. Demand is growing for SI in all colors.
• Demand is steady for fancy cuts in heart and pear shapes and moderate for princess cuts. Emeralds are weak.
• Demand is steady for 0.50 and larger, both in dossiers and uncertified goods.
• Demand for smaller sizes remains weak and is concentrated in specific sizes.
India• The 25th IIJS show in India concluded successfully, with big foreign participation.
• Local jewelers, diamond manufacturers and dealers had a good show overall and are looking forward to selling to newer markets outside of the U.S.
• Overall trading activity has been quite slow but domestic sales are steady for small goods. Large goods are weak, with buyers showing resistance to high prices.
• The market seems to be optimistic about domestic sales for the upcoming wedding and Diwali season.
Israel• Activity in Tel Aviv is slow through the August vacation.
• There is rising concern about the U.S. economy.
• Expectations for the Hong Kong show are low, given global economic conditions.
• High rough prices are keeping companies in limbo. They can’t sell expensive due to slow demand and they can’t sell cheap because they will lose out when buying again at higher prices.
• There is some demand for H-J colors in clean commercial goods out of India and the Far East.
• Strong fancy colors such as intense and vivid yellow are in demand.
Russia• ALROSA’s net profit over the first half of 2008 fell 41 percent to
$147 million against the same period of 2007, according to Russian accounting standards.
• The company’s revenue also fell by
6.8 percent to $1.28 billion dollars.
• ALROSA sold 654 rough diamonds weighing 10,300 carats worth
$31 million at its thirtieth auction in Moscow. One of the lots was sold at a record price of $65,000 a carat, while the selling price was on average 70 percent higher than the starting prices. The biggest stone auctioned was 41.27 carats.
Southern Africa• Trading was quiet through August.
• 40-pointers and up in VS clarity and H colors and better are in high demand and scarce, due to shortage of rough.
• Commercial goods in H-J colors and VS-SI quality are hard to find.
• 50-pointers and larger in K-M colors and SI clarity and lower are in surplus.
• Princess is in demand despite a slow market for fancies in South Africa.
U.S. Retail• Round is still the best-selling cut for engagement rings, but square, rectangular cuts, including Asscher, princess, emerald and cushion, are quite strong.
• The most popular carat weight in engagement rings is 2 carats.
• Most engagement purchases are SI1 clarity, followed by VS2.
• The top colors are H, followed by G.
• Platinum is still the top choice for settings, followed by 18-karat white gold and 14-karat white gold. Yellow gold is gaining ground, while palladium is getting play only in men’s bridal.
U.S. Wholesale• Better-quality diamonds under 2 carats, especially in premium sizes, are very much in demand and are more difficult to find.
• In some cases, buyers are willing to sacrifice some clarity or color in the face of high prices.
• Round continues to be the most popular shape, with Asschers decreasing in popularity.
• Sales of large stones have slowed slightly.
Article from the Rapaport Magazine - September 2008. To subscribe click here.