Market Comment

News: Decline in diamond prices intensifying due to high inventories. 1 ct. RAPI -4.7% in August; 0.50 ct. -8.6% in record monthly drop. Indian suppliers offering deep discounts and willing to take losses. GJEPC pushing for miners to reduce rough sales. Weak outlook for holiday season as synthetics take market share. Low expectations for Hong Kong show amid China economic slump. Industry discusses proposal for keeping Russian diamonds out of G7. GIA lays off 20% of Carlsbad employees. Gem Diamonds 1H revenue -28% to $72M, average price -21% to $1,373/ct. Martin Rapaport Webinar “Warning to the Diamond and Jewelry Trade” on Sept. 13 at 10 a.m. EDT (register here).

Fancies: Market slower than before. Prices falling, but less sharply than for rounds. Longer Ovals, Pears, Radiants and Cushions bringing higher prices than shorter stones. Goods with medium and short ratios weak. Prices of square Cushions falling amid low demand and high inventories. Marquise prices holding up following drop in supply. 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 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 hard to sell.