Market Comment

News: Prices falling, with India under pressure from low sales and rising supply. US sellers doing better as they are not over-inventoried. Dealers and jewelers buying on demand only. Sluggish trading at June Hong Kong show, with low dealer attendance. Chinese consumer confidence in diamonds waning; lack of sales impacting manufacturers. Hong Kong’s TSL warns of heavy FY losses amid weak Chinese diamond demand. Luk Fook estimates 30% to 40% increase in FY profit, reflecting lower exposure to mainland. De Beers June sales -31% YOY to $315M as some sightholders reject loss-making boxes. Okavango June sales -34% YOY to $67M. EU extends sanctions sunrise period to Mar. 2025 and adds grandfathering rule.

Fancies: Fancy-shape prices weaker following strong demand last year and overproduction by manufacturers. Pears slower than other shapes. Market for Ovals not as hot as it was. Elongated shapes still preferred. Goods with medium and short ratios harder to sell. Supply shortages supporting prices for Marquises. Well-cut fancy-shape diamonds hard to find and commanding premiums. Oversizes trading at higher prices than usual. Off-make, poorly cut fancies illiquid.