Market Comment

News:

Sentiment weaker as Indian inventory builds up and prices drop in 0.30 to 0.69 ct. rounds. Prices of 1 to 1.49 ct. stable to soft. De Beers sight sees low volumes and steady prices, with attention on sale of the company as talks reach crunch. Dubai Diamond Conference outlines vision for natural industry, focusing on investment-led growth. JGT Dubai show sees good trading despite lower foot traffic, with serious buyers attending. Kering 3Q jewelry revenue +12% YOY to $268M; jewelry brands continue to outpace diamond trade. Luk Fook fiscal 2Q retail sales value +8% YOY; Chow Tai Fook -0.5%. India prepares for Diwali, with sales offices to close for a week and factories for 15 to 30 days. 

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.