Global polished diamond prices rose sharply during the second half of June, and are showing no signs of a pull-back, according to Ken Gassman of IDEX Online Research. The price increases were driven by wide consumer demand and optimism among wholesalers.
Demand has been especially strong for polished diamonds smaller than one carat, as Asian buyers, mainly in India and China, are scooping up stones to meet the needs of a surging consumer markets.
Further, diamantaires were pleased with the results of the JCK Show in Las Vegas in June. Demand from U.S. retailers is picking up, and merchants are re-stocking their showcases. Despite the uneven economic recovery, most retail merchants are looking for a solid 2011 holiday selling season. As a result of this rosy forecast, merchants want to have ample merchandise to meet their customers’ needs.
Here are the pricing highlights for the month of June 2011 from the global polished diamond market, based on the IDEX Online Global Polished Diamond Price Index.
The IDEX Online Global Polished Diamond Price Index averaged 138.9 in June, a record level well above any prior periods.
The Index stood at about 145 at the end of the month, and has shown no signs of retreating.
Polished diamond prices in June were up by 5.2% over May, based on the average prices for both months.
Prices rose 9.1% between June 1 and June 30. At the beginning of the month, the IDEX Online Index stood at 133.6; it finished at 145.8 at the end of the month.
Polished diamond prices in June were up 15.4% for the first six months of 2011.
Polished diamond prices in June were up a dramatic 18.5% versus June of 2010.
Prices of polished diamonds under one carat as well as four and five carat diamonds rose at an above-average pace.
The graph below summarizes polished diamond prices based on the IDEX Online Polished Diamond Price Index for the past twenty-four months.
Polished Diamond Price Outlook: Up, Up & Away
As long as rough diamond prices continue to rise, and as long as consumer demand remains strong, IDEX Online Research believes that polished diamond prices will continue to increase. Earlier this year, we said that we thought the price surge might moderate later in the year. There is no sign of that happening yet. However, we urge caution: price cycles are like ocean tides – they rise and they fall.
Polished diamond prices historically rise rapidly early in a recovery cycle – which began near the end of the first quarter of 2010 – and then increase at a slower pace, in line with the long term annual increase of 3-4%. We haven’t seen any moderation in the pace of price increases, but it will come one day.
