Diamond trading slowed in July as US dealers closed for the two-week summer break. Economic and geopolitical uncertainty fueled caution, leading to a decline in polished prices, diamonds.net says in a press release.
The RapNet Diamond Index (RAPI™) for 1-carat goods fell 2.6% during July but remained 4.6% higher than at the beginning of the year.
Manufacturing centers were quieter due to high rough prices and reduced polished demand. US dealers stayed resilient despite economic concerns, receiving steady short-term memo orders from jewelers.
US disposable income was under pressure. Consumer confidence dropped as inflation rose to 9.1% and the Federal Reserve hiked up interest rates by 0.75 percentage points in July. Yet jewelry retail continued to improve compared to 2021. June jewelry sales were up 16% year on year, according to Mastercard. European luxury brands reported stellar first-half results. Chinese jewelry performance decreased due to ongoing Covid-19 disruptions and economic weakness.
Concerns mounted over rough supply. Global rough sales were down since March following US and European sanctions on Alrosa and restrictions on Russian banks. Alrosa’s absence has spurred demand for non-Russian production; De Beers and Rio Tinto saw significant growth and higher prices in the first half. De Beers’ rough price index ended that period 28% above 2021’s first-half levels.
Polished inventory remains high. The record volume indicates that the lack of Alrosa goods has yet to impact the polished market. Strong rough buying in the first quarter made for enough polished to satisfy demand in the subsequent months.
The polished sector may start feeling the absence of Russian supply later in the third quarter, as Alrosa’s post-sanctions production will not be available. Short-term expectations have declined due to economic caution and the drop in polished demand. Sentiment is weak and the trade anticipates a slow third quarter, but there is optimism for the holidays, diamonds.net notes.
Alex Shishlo for Rough&Polished
Exclusive
Dmitry Fedorov: I want our jewelry to be displayed at a museum in the future
Dmitry Fedorov is the founder of the eponymous jewelry house. His main focus is the creation of Orthodox-inspired premium luxury jewelry of high artistic merit. He told Rough&Polished about his journey in the jewelry industry, about choosing the ‘Orthodox...
28 october 2024
Responsible business practices ‘no longer optional’, says WDC President Feriel Zerouki
The president of the World Diamond Council takes time out of her busy schedule to tell Rough&Polished readers about the critical work of the WDC. Zerouki, the first female present of the body, which includes all the important industry organizations among...
14 october 2024
James Campbell: Botswana Diamonds optimistic as it enters uncharted territory of using AI for mineral exploration
London-listed Botswana Diamonds has expressed optimism about the company’s use of artificial intelligence (AI) to scan the exploration database in Botswana to look for new mineralised deposits. Company managing director James Campbell told Rough...
07 october 2024
Artur Salyakayev: For me, happiness is freedom to make my ideas happen and create valuable products
Artur Salyakayev is an art entrepreneur, founder of the International Jewelry Academy (IJA) and the INCRUA jewelry company. He has initiated and developed successful projects in jewelry industry and services sector. He is also a leading expert...
30 september 2024
Paul Zimnisky: China key for sustained recovery in demand for natural diamonds, prices
The curtailing of upstream and midstream natural diamond production in the past months is starting to have an effect on prices, according to the New-York-based independent diamond and jewellery analyst and consultant, Paul Zimnisky. He told Rough & Polished’s...
23 september 2024
