Market Comment

News: Weak polished demand leads to further decline in rough market. De Beers July sales -36% YOY to $410M, 1H revenue -21% to $2.8B, earnings -83% to $85M. Falling prices making for buyer’s market. US discretionary spending low. Federal Reserve raises interest rates 0.25 basis points, aiming to reduce inflation to 2% from 3% in June. American consumer confidence +6% in July, Conference Board reports. Concerns about major manufacturers going into synthetics. Antwerp shuts for summer break. Okavango July sales of $107M ($151/ct.) are its highest this year. LVMH 1H jewelry and watch revenue +11% to $6B after reopening of Tiffany NY flagship. US places sanctions on new Alrosa CEO Pavel Marinychev.

Fancies: Fancy-shape market slower than before but better than rounds. Prices dropping but not as fast as rounds. Longer Ovals, Pears, Radiants and Cushions fetching higher prices than shorter stones. Goods with medium and short ratios weak. Marquises improving. 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.