Market Comment

News: Polished prices increasing for round, 0.89 ct. and smaller, D-K, IF-SI1 goods, but discounts deep. 1 ct. stabilizing. US retailers paying high premiums for round and fancy, 2.50 to 2.99 ct., F-H, VS-SI diamonds with no center black. Melee improving. Inventories low. Manufacturers must keep production under control. Hong Kong loose-diamond show better than expected, with exhibitors closing sales on final two days. Some inquiries from Chinese buyers for small goods, though few of them attended. Jewelry show reflects shift to lighter-weight pieces as gold price keeps rising (+13% since Jan. 1 to $2,952/oz.). US tariffs likely to reduce China’s jewelry manufacturing.

Fancies: Large fancy shapes doing better than rounds. Prices stable or increasing for 2 ct. and larger diamonds. Better stones hard to find. Solid US interest in elongated Ovals with good shape and quality in D-I, VS-SI categories. Elongated Emeralds, Radiants and Pears in 2.50 to 2.99 ct. sizes trading at significant premiums. Oval and Pear, 0.30 to 0.49 ct., F-I, VS diamonds in demand. Ovals 5% to 10% more expensive than Pears in US market. Supply shortages supporting prices for Marquises. Square Cushions slow. Very well-cut fancy shapes difficult to find and commanding premiums. Off-make, poorly cut fancies illiquid.