Market Comment

News: Happy New Year. Diamond markets quiet and sentiment cautious due to seasonal lull and general uncertainty. Polished prices continue to decline. 1 ct. RAPI -1.5% in Dec. and -10.7% in 2022, but 0.30 ct. RAPI +1.2% in Dec. after sharp decline in supply during the year. Midstream ended 2022 with high inventory. Manufacturers maintaining low polished production, cutting prices to offload less-popular goods and to raise liquidity. Sightholders hoping De Beers will reduce rough prices at Jan. 16 sight to stimulate demand and ease manufacturing profit concerns. Muted expectations for Jan. 22 Chinese New Year. Israel Dec. polished exports -39% to $161M, rough imports -33% to $142M. Fancies: Fashion driving demand for elongated Ovals, Emeralds and Radiants. Goods with medium and short ratios are weak and declining in value. Slow market for 0.30 to 1.20 ct. diamonds. 1.25 ct. and larger, F-J, VS-SI categories stable. Supply shortages of well-cut fancies supporting prices. Oval is leading shape, followed by Radiant, Emerald, Pear, Cushion and Marquise. Retailers offering broader product ranges as consumers seek alternative cuts. Excellent shapes commanding premiums. Oversizes trading at higher prices than usual. Off-make, poorly cut fancies illiquid and difficult to sell.