Diamond Prices Decline in July

RAPAPORT PRESS RELEASE, August 6, 2024, Las Vegas… Diamond prices dropped sharply in July amid slow retail sales and an oversupply in India. The seasonal summer slowdown also had a negative effect on sales. 

The RapNet Diamond Index (RAPI™) for 1-carat goods — reflecting round, D to H, IF to VS2 diamonds — slid 7.3% in July, the heaviest monthly decline for that size since December 2008. The 0.30-carat RAPI went down 8.9%. The index for 0.50-carat diamonds fell 7.9%, and prices of 3-carat stones decreased 5.8%. 

SIs saw gentler declines than the RAPI categories, reflecting US demand. Prices for round, 1-carat, D to H, SI diamonds fell 3.2%. 

Weak sales led to an increase in polished inventory. The number of diamonds on RapNet rose 2% in July for a total of 1.7 million and jumped 9% between April 1 and August 1. 

Indian diamond manufacturers reduced their production in July to realign their inventory with current demand. It will take six weeks before these cuts impact inventory levels. 

Rough demand was sluggish. De Beers allowed sightholders to refuse goods at its July sight and offered 30% buybacks for certain categories. Sales were under $200 million, insiders estimated. 

Luxury brands bought fewer diamonds than in previous years, creating weakness in high-end goods. LVMH’s jewelry and watch sales declined 5% year on year to $5.58 billion in the first half of 2024. Slow US bridal demand put pressure on Tiffany & Co., according to LVMH. 

Sales in China remained weak due to the slow economy and due to shoppers shifting away from diamonds as an investment. Consumers with money preferred to spend at overseas tourist destinations rather than domestically. 

India’s jewelry industry expects the India International Jewellery Show (IIJS), which runs from August 8 to 13, to signal strong domestic demand ahead of Diwali. However, expectations for the September Jewellery & Gem World (JGW) Hong Kong show are low amid sluggish Chinese demand. 

Media Contacts: [email protected] 
US: Sherri Hendricks +1-702-893-9400  
International: Avital Engelberg +1-718-521-4976  

About the RapNet Diamond Index (RAPI™): The RAPI is the average asking price, in hundred dollars per carat, of the 10% lowest-priced round diamonds in each of the top 25 quality categories (D-H, IF-VS2, GIA-graded, RapSpec-A3 and better) offered for sale on RapNet® (www.rapnet.com). Additional information is available at www.rapaport.com.  

About the Rapaport Group: The Rapaport Group is an international network of companies providing added-value services that support the development of ethical, transparent, competitive and efficient diamond and jewelry markets. Established in 1976, the group has more than 20,000 clients in over 120 countries. Group activities include Rapaport Information Services, providing the Rapaport benchmark Price List for diamonds, as well as research, analysis and news; RapNet, the world’s largest diamond trading network, with daily listings of over $8 billion; and Rapaport Trading and Auction Services, the world’s largest recycler of diamonds. Additional information is available at www.rapaport.com.