Market Comment

News: Diamond trading very slow. Dealers cautious as prices continue to decline. Jewelers have curbed buying and lowered their short-term expectations due to economic uncertainty and synthetic-diamond competition. Manufacturers trying to diminish inventory by scaling back production, since demand is hard to stimulate in current market. Mixed sentiment at Las Vegas shows. Positive Luxury and Couture fairs reflect strong high end, but middle America under pressure from rising cost of living. Signet 1Q sales -9% to $1.7B. Christie’s NY sells $62M (97% by value); pear, 126.76 ct., D, IF diamond goes for $13.6M ($108K/ct.). Rough market weak; De Beers has reduced prices of 1 ct.+ rough by 5% to 10% at June sight. Rapaport partners with GIA and Okavango Diamond Company to list “Green Star” responsibly sourced stones on RapNet. 

Fancies: Fancy-shape market slower than before but better than rounds. Elongated Ovals, Emeralds and Radiants are strongest items. Goods with medium and short ratios weak. Demand for Cushions declining. 0.30 ct. doing well. Orders low for 0.70 to 1.20 ct. diamonds. VS-SI losing strength, except in 1.20 to 1.49 ct. Well-cut stones seeing supply shortages. Excellent shapes commanding premiums. Retailers offering broader product ranges as consumers seek alternative cuts. Oversizes trading at higher prices than usual. Off-make, poorly cut fancies illiquid and difficult to sell.