Market Comment

News:

Industry reflecting on positive Las Vegas shows for 2 ct. and larger diamonds. High-end jewelers placed orders at fairs. Small diamonds seeing upward price correction following inventory drop and as brands capitalize on low valuations. May RAPI: 0.30 ct. +2.1%, 0.50 ct. +0.9%, 1 ct. -0.3%, 3 ct. -0.5%. Botswana reportedly seeking Gulf backing for De Beers bid. Petra’s Finsch mine suspends production. Russia bans word “diamond,” carat weights, and color and clarity grades for synthetics. Alrosa launches diamond promotion program. Chow Tai Fook FY revenue +5% to $12B, profit +52% to $1.2B. Pear modified brilliant, 31.62 ct., fancy-blue, VVS1 diamond sells for $8.4M ($265K/ct.) at Christie’s NY.

Fancies:

Long fancy shapes such as Ovals, Marquises and Emeralds doing better than rounds in 2 ct. and larger. High-quality Marquises, long Radiants and long Cushions in short supply. Marquise most expensive fancy shape. Long Cushions easy to sell and trading at 20% to 25% premium over square ones. Antique cuts and styles hot. Solid US market for elongated Ovals of good shape and quality in D-I, VS-SI categories. Very well-cut fancy shapes difficult to find and commanding premiums. Fancies with bad proportions illiquid.