Market Comment

News:

Indian factories preparing for Diwali slowdown. Round, 0.30 to 0.89 ct. diamonds continue to soften following inventory increase. Demand for 2 ct. rounds stable, with SI2 slowing. Oval price drop halts as supply levels ease. Dealers that offer extra services to US retailers are selling better. Rupee weakness hurting margins in India. De Beers 3Q sales volume +71% YOY to 9.8M ct. after July price cut and recovery in small diamonds; consolidated sales value +4% to $731M. De Beers lifts 2026 production plan to 25M-28M cts. after taking full Gahcho Kué ownership. US Sep. overall retail sales +6% YOY to $745B; NRF forecasts US’s first $1T holiday season. Chow Sang Sang 3Q sales +3% YOY.

Fancies:

Long fancy shapes such as Ovals, Marquises and Emeralds moving well in 2 ct. and larger. High-quality Marquises, long Radiants and long Cushions in short supply. Marquise is most expensive fancy shape. Long Cushions easy to sell and trading at 20% to 25% premiums over square ones. Reports of demand for Princesses after long period of weakness; prices remain low. Antique cuts and styles hot. Solid US market for elongated Ovals of good shape and quality in D-I, VS-SI categories. Very well-cut fancy shapes difficult to find and commanding premiums. Fancies with bad proportions illiquid.