Diamond prices declined in June amid falling sales and rising inventories, underpinned by weak demand, according to a recent study published by Rapaport.
The RapNet Diamond Index (RAPI) for 1-carat goods (round, D to H, IF to VS2 diamonds) fell 3.6% in June, but the decline was less pronounced than in May. Meanwhile, RAPI for 0.30-carat diamonds fell 6% in June; the index for 0.50-carat diamonds fell 4.8%, and prices of 3-carat stones went down 2%.
At the same time, the number of diamonds registered on RapNet rose 6% between April 1 and July 1, and now stands at 1.67 million. Indian manufacturers have reduced output but continued polishing to keep workers employed and maintain access to rough supply and credit lines.
Synthetics continued to pose threat to the natural stones and will likely do so throughout 2024. Year to date, De Beers recorded a fall in rough sales by 20% year on year to $1.95 billion, as some sightholders refused boxes that would result in losses.
“Rapaport believes synthetics will dominate the US bridal segment in 2024, accounting for over 50% of engagement-ring purchases. However, the synthetic bridal market will collapse in 2025 as their very low prices will make them unsuitable for engagement rings. Natural diamond demand will come back strong as consumers return to traditional engagement rings whose value is appropriate for the gift of marital commitment,” the statement says.
Theodor Lisovoy, Editor in Chief, Rough&Polished
