Market Comment

News:

$1B reported De Beers price tag reflects industry’s multiyear downturn. De Beers trims 1H underlying loss to $188M amid cost controls. Sentiment improving in India, stable in US, as supply tightens. US tariffs on Indian goods stay at 10%; Belgium, Botswana and Namibia secure 0% rate. No clear impact on prices or inventory. Round prices under 1 ct. improving, 1 ct. mixed. Demand for 2 ct. and larger steady, with rough hard to find and going to a small number of companies. LVMH (Tiffany, Bulgari) and Kering (Boucheron, Pomellato) report strong jewelry sales in US and Asia. Big stones boost Gem Diamonds: 1H sales +33% YOY to $59.5M, average price +38% to $1,395/ct.

Fancies:

Long fancy shapes such as Ovals, Marquises and Emeralds doing better than rounds in 2 ct. and larger. High-quality Marquises, long Radiants and long Cushions in short supply. Marquise most expensive fancy shape. Long Cushions easy to sell and trading at 20% to 25% premium over square ones. 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.