RAPAPORT… The diamond industry is emerging from the Covid-19 crisis, says Rapaport Senior Analyst Avi Krawitz, who has identified five trends shaping the market in 2021.
Polished diamond prices rose 1.7% in the first quarter and the momentum continued through April and May, Krawitz noted in the quarterly Diamond Trends Webinar that broadcast on May 12 and 13. The increases were driven by the retail recovery in the US and China, as well as supply shortages emerging because of the spike in Covid-19 cases in India, he observed.
Supply volatility is expected to continue in the second half of the year as the Gemological Institute of America (GIA) releases its backlog of goods, but then shortages may arise due to current restrictions on manufacturing, he explained. The other four developments include a restructuring of the rough market, digital innovation, renewed competition in the luxury market, and an emphasis on sustainability, particularly environmental issues.
The full webinar can be viewed below:
Image: A natural rough diamond. (Shutterstock)
Rapaport Webinar: Five Steps Toward Recovery
The Bottom Line
- Polished diamond prices increased 1.7% in Q1 2021, driven by retail recovery in the US and China and supply shortages from India.
- Supply volatility is expected to persist due to GIA's backlog clearance and ongoing manufacturing restrictions.
- Key market trends include rough market restructuring, digital innovation, renewed luxury competition, and a focus on environmental sustainability.
More Stories
Brilliant Earth Sales Exceed Guidance
Brand’s diversification into more fine jewelry drives revenue increase.
Petra Sees Glimmer of Light Amid $20M Lifeline
Advance payment for future diamond inventory provides near-term liquidity to run business.
Can Diamonds Learn from Watches? Yes, But
Rough Notes: In many ways, timepieces had an easier job recovering from their crisis.
