Rapaport released its new RapNet Diamond Index (RAPI) on 5 December 2023. The diamond market continued to stabilise in November as holiday shopping began and lower rough supply reduced midstream inventories. Prices of round diamonds increased across all major categories for the first time this year.
RAPI for 1-carat stones rose 0.8 percent during the month. The 0.30-carat RAPI increased 0.3 percent, while the 0.50-carat category saw the strongest performance with a 1.2-percent rise. The index for 3-carat diamonds increased slight by 0.1 percent. 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 had its two-month voluntary freeze on rough imports, which ended on 15 December. Factories in Surat extended their Diwali vacations due to weak demand. De Beers garnered $80 million at its October sight — the lowest since the peak of the Covid-19 crisis in 2020 — after allowing 100 percent refusals.
Provenance became increasingly important as the natural-diamond industry competed with synthetic diamond businesses. 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.
According to Rapaport, consumers’ preferences for low-budget items will play a role this holiday season. However, 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.
18-12-2023
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