Market Comment

News: Sentiment mixed as Mastercard reports US Nov./Dec. holiday jewelry sales -5.4%, general retail +8%, e-commerce +11% and in-store +7%. Consumer confidence up in Dec. amid improved outlook for inflation and employment. Diamond trading slow due to end-of-year break and market uncertainty. Cutters maintaining low polished production after 2022 inventory buildup, anticipating cautious post-holiday demand. China slow as Covid-19 outbreak stifles recovery; lockdowns expected to lift for Jan. 22 lunar festival. Belgium 3Q rough imports +8% to EUR 1.8B, volume -30% to 11.7M cts., National Bank of Belgium reports. Rapaport wishes everyone a happy, healthy, ‎prosperous and peaceful New Year.‎

Fancies: Fashion driving demand for elongated Ovals, Emeralds and Radiants. Goods with medium and short ratios are weak and declining in value. Slow market for 0.30 to 1.20 ct. diamonds. 1.25 ct. and larger, F-J, VS-SI categories stable. Supply shortages of well-cut fancies supporting prices. Oval is leading shape, followed by Radiant, Emerald, Pear, Cushion and Marquise. Retailers offering broader product ranges as consumers seek alternative cuts. Excellent shapes commanding premiums. Oversizes trading at higher prices than usual. Off-make, poorly cut fancies illiquid and difficult to sell.