Global Diamond Demand

RAPAPORT…

Antwerp

• J and SI2 down are in demand almost across the board, low-budget stones are moving well and Rapaport’s recent price adaptation is considered not strong enough.
• Piqué 1, 2 and 3 and darker colors are still 35 percent too low for some goods.
• Darker colors K-M, VS mainly, were selling in Hong Kong like hotcakes. D-F/ VVS can be found at high prices, but no darker is available, so prices of some darker outweigh that of better color ones.

China

• The majority of goods selling in the market:
10-per-carat, good make, VS+/H-I, are selling at approximately $620 to $660.
6-per-carat, good make, VS+/H-I, are selling at approximately $830 to $870.
4-per-carat, good make, VS+/H-I, are selling at approximately $1,040 to $1,080.
3-per-carat, good make, VS+/H-I, are selling at approximately $1,400 to $1,500.
• The market also accepts:
10-per-carat, good make, VS+/I-J, are selling at approximately $600 to $630.
6-per-carat, good make, VS+/I-J, are selling at approximately $780 to $830. 4-per-carat, good make, VS+/I-J, are selling at approximately $900 to $950. 3-per-carat, good make, VS+/I-J, are selling at approximately $1,250 to $1,350.
• 1/10 to 1/6, TTLB, SI and piqué 1 are also moving.
• Demand is increasing for 50 to 80 points, VS1-VVS/G-I, very good or excellent make.

Hong Kong

• 3 to 5 carats in virtually all colors and clarities and D-F colors are in very hot demand. Good makes are in demand. Demand for larger sizes is sporadic. It is not easy to find buyers willing to invest in more expensive stones.
• Demand is great for 1-carat sizes in a wide range of colors and clarities. Make tolerance is also wide.
• Strong sizes — 1.30+, 1.70+, 2.20+, 2.60+ — are being sought. Slight premiums are possible, but not much.
• Dossiers from 0.50 and larger are moving well. Make is important, but not crucial, if price reflects this.
• Pointers below 0.50 are in much slower demand.
• Indian smalls are slow, reflecting lower demand from jewelry manufacturers.

India

Markets are generally quiet due to the Diwali vacation break that began October 19.
• Stars and melees are very strong and are selling in all colors — browns, whites and yellows.
• Goods below 0.50 carats in lower piqué categories are moving extremely well.
• 0.70 to 0.99 carats are still very hot and discounts at that level bring their prices closer to the 1-carat range.
• 1 carat+ goods are easily available across the board, but premium sizes for better colors and clarity in I+/VS+ are hard to find.
• Demand for 2 carats is still slow, prices are stable and goods are easily available, except for premium sizes from 2.25 to 2.99 carats, where demand is stronger.
• Very good demand and shortages exist for 3 carats in VVS-VS/H+ goods.
• Fancy shapes from 0.90 to 1.50 carats are very hot, with biggest demand for pears, princess and marquise cuts. SI1+ / I+ matched pairs are hard to find. Demand is also strong for sizes 1/6 to 3/4.
• Fancy color diamonds, especially yellows, are in very good demand in rounds in 1 carat+ sizes.

Israel

• There is strong demand for 40-pointers to 1 carat.
• There is strong demand for fancy shapes, brilliants, rounds and princesses.
• There are shortages in I+, VS+ in parcels.
• Demand is slower for goods below 20-pointers.
• In the East Asia market, there is strong demand for rounds and fancy shapes in D-H/VS+.
• In India and the UAE, there is solid demand for I to M/VS in 1 to 10 carats. • There is steady demand for heart shapes, pear shapes, marquise, oval and emerald cuts, especially in 2.5 carats+.

Japan

• Demand for larger stones is moving upward, although slightly. Market is short of large stones.
• Pinks continue to be strong.
• Oversize pointers continue to pick up. As sizes get bigger, per-piece jewelry prices go higher.
• As jewelry merchandising for Christmas is targeting the younger generation, there is little hope for large, expensive stones to be added to the Christmas jewelry lineups.
• 4/4 grainers are soft, except for top qualities such as D/VVS1.
• Changes in the Gemological Institute of America (GIA) cut grading system are suspected as the cause of the soft 4/4 grainers, pushing market prices 10 to 15 percent downward.

Russia

• ALROSA’s 18th Special Sized Diamond Auction Results:
110 of 114 offers worth $23 million were sold.
794 diamonds totaling more than 13,400 carats were offered.
15 diamonds were larger than 50 carats, with the biggest one 125.72 carats.
• Results of the 19th auction, which began October 23, 2006, will be announced on November 22.

U.S. Retail

• Retailers can find the stones their customers want.
• Larger, fancy shapes can sometimes be hard to find.
• Big, colored diamonds catch on in sophisticated markets.
• High-end stores see diamonds starting at 1.50 to 3 carats.

U.S. Wholesale

• Trading activity is uneven.
• Polished prices are mixed.
• Rough prices remain stable.
• Smallest goods see healthy demand.
• Better goods, 3 carats and up, are in short supply.
• Fancies are generally doing well.
• Princesses and marquises are very strong.
• Pears are selling moderately well.
• Bigger and better hearts are seeing more requests.
• Asschers and emeralds are slower.
• Fancy colors are experiencing good demand.