Market Comment

News: Round prices declining; fancies down less sharply. Manufacturers switching to cheaper, smaller goods. De Beers lowers 2024 production plan to 23M-26M cts. from 31.9M cts. in 2023; demand slow and rough prices stable at July sight. India removes 2% equalization levy on rough, with “safe harbor” rule simplifying tax for overseas miners. US retailers buying selectively and focusing on memo. Sluggish inventory replacement by brands and large jewelers. LVMH 1H watch and jewelry sales -5% YOY to $5.6B. Swatch Group 1H watch and jewelry sales -14% YOY to $3.7B. Birks FY sales +14% to $135M. Luk Fook fiscal 1Q diamond jewelry same-store sales -52% YOY. AWDC names Karen Rentmeesters permanent CEO.

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.