Market Comment

News: Hong Kong loose-diamond show exceeds low expectations amid steady overseas traffic and shortages of sought-after items. Few Chinese buyers, as diamond demand has barely improved. Jewelry show reflects mainland appetite for gold, gemstones and pearls. Impact of US tariffs on China and Canada uncertain. Polished prices stable amid lower inventories, with 1 ct. RAPI +0.2% in Feb.; 0.30 ct. RAPI +3.7% amid strong market for D-E, IF-VVS1 goods. Feb. rebound reflects shortages more than demand. US and Indian retail stable. Major Signet shareholder Select Equity Group calls to sell the company. Alrosa 2024 revenue -26% to $2.7B, profit -77% to $215M. US postpones “country of mining” requirement indefinitely.

Fancies: Large fancy shapes doing better than rounds. Prices stable overall, and firm for 3 ct. and larger diamonds. Better stones are hard to find. Solid US interest in elongated Ovals with good shape and quality in D-I, VS-SI categories. Elongated Emeralds, Radiants and Pears in 2.50 to 2.99 ct. sizes trading at significant premiums. Oval and Pear, 0.30 to 0.49 ct., F-I, VS diamonds in demand. Ovals 5% to 10% more expensive than Pears in US market. Supply shortages supporting prices for Marquises. Square Cushions slow. Very well-cut fancy shapes difficult to find and commanding premiums. Off-make, poorly cut fancies illiquid.