Market Comment

July 4, 2024

News: Markets weak, with inventories rising and prices falling. June RAPI: 0.30 ct. -6%, 1 ct. -3.6%. Sales declines have outpaced Indian production cuts. GJEPC rules out import freeze; will focus on stimulating demand. US dealers only buying for specific needs, even at lower prices. Summer lull in trading centers. Synthetics gaining market share. Rapaport believes synthetics will account for over 50% of US engagement-ring purchases in 2024 but will collapse in 2025 as prices slide. China demand slow, with retailers selling goods back to the market. Rough sector sluggish. Alrosa buys Degdekan gold mine. Richemont names Louis Ferla CEO of Cartier, Catherine Rénier CEO of Van Cleef & Arpels.

Fancies: Fancy-shape prices weaker following strong demand last year and overproduction by manufacturers. US buyers more selective about quality of SIs, rejecting black centers and short ratios. Elongated shapes still preferred. Fancies with medium and short ratios harder to sell. Supply shortages supporting prices for Marquises. Cushions slow. Very well-cut fancy shapes hard to find and commanding premiums. Oversizes trading at higher prices than usual. Off-make, poorly cut fancies illiquid.

United States: 

Trading seasonally quiet. Market slow but sentiment better than in India. Global uncertainty causing concern, but pockets of demand exist: Steady memo orders for round, 3 ct. and larger, G-J, VS-SI, 3X diamonds with no fluorescence. Smaller traders struggling, as larger dealers are skipping intermediaries and selling straight to retailers.


Business slow. Mood low amid global industry slump. Rough market sluggish. Some demand from big brands for larger stones.


Market at standstill amid global downturn and US summer lull. Dealers lack confidence in market and prices. First-half polished exports down 31% year on year at $1.18 billion, rough imports up 1% at $559.9 million.


Deep concerns about market situation and uncertainty about future. Inventory rising and prices falling. Arrival of goods from China has increased oversupply. Manufacturers reducing activity but still producing polished to keep workers active and maintain access to rough supply and credit lines.

Hong Kong: 

Chinese retail demand weak as consumers choose to buy gold instead of diamonds. Market seasonally slow, with overseas dealers traveling to home countries for summer. Foreign companies downsizing Hong Kong offices amid high costs and low sales. Cautious expectations for improvement in fourth quarter, but activity unlikely to return to previous levels. Retailers discounting to attract consumers.


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