Rapaport Weekly Market Comment

Sentiment mixed following sharp rise in rough and polished prices. Rough selling at unsustainable premiums on secondary market, fueled by speculation and shortages. Further increases likely at De Beers sight. Alrosa to buy from Gokhran Feb. sale to fill supply gaps. US jewelry revenues +20% in Jan., according to Mastercard SpendingPulse. Rising concerns about retail slowdown amid high inflation, geopolitical tensions and stock market volatility. India Jan. polished exports +15% to $2.1B, rough imports -4% to $1.2B. Belgium Jan. polished exports +21% to $660M, rough imports +42% to $889M. Sotheby’s sets $48M estimate for 15.10 ct., fancy-vivid-blue, IF diamond at April auction.

Fancies: Market robust. Good demand across all sizes. 1.20 to 3.99 ct., F-J, VS-SI is hottest category and seeing scarcities. 0.30 to 0.99 ct. improving in VS and better clarities. Fancies below 0.30 ct. showing significant gains since Diwali. Supply shortages supporting prices. Retailers offering broader product ranges as consumers seek alternative shapes. Growing interest in fancy-shape engagement rings. Rise in orders for Ovals, Pears, Emeralds, Princesses, long Radiants and Marquises. Oversizes trading at higher prices than usual. Excellent shapes commanding premiums. Steady demand in China helping the market. Off-make, poorly cut fancies illiquid and difficult to sell.

United States: Dealers frustrated with lack of available goods, particularly in melee. Traders seeing some memo calls and interest in filling specific orders. Very little buying for bulk programs due to high prices. Good demand for 1.50 to 3 ct., J, VS1-I1, 3X diamonds. Large marquises hot. Retail jewelers upbeat about Valentine’s Day after strong January sales.

Belgium: Sentiment positive as value of inventory continues to rise. Dealers struggling to find profitable goods. Steady demand for 0.30 to 0.70 ct., G-H, VS-SI. Fancy shapes robust. US orders driving business. Far East relatively quiet. Rough sector booming ahead of next week’s De Beers sight.

Israel: Traders concerned about price speculation. Sold items proving difficult to replace as valuations keep increasing. Suppliers focusing on e-commerce amid ongoing Covid-19 Omicron infections. Strong interest in 0.01 to 0.29 ct. parcel goods. Rough prices climbing; secondary market seeing record high premiums.

India: Upbeat mood as US demand drives sales. Hong Kong and China slow. Both certified and non-certified stones in short supply. Smaller parcel goods hard to find. Steady orders for 1 ct., VS1-I2, F-K diamonds. Fancy shapes moving well. Rough scarcities limiting polished production. Larger manufacturers enjoying good liquidity and gaining market share.

Hong Kong: Polished trading down due to spike in Covid-19 cases. Wholesale resuming slowly after Chinese New Year. Retail weak due to pandemic and lack of tourist shoppers; China border remains closed. Mainland market gradually improving but seasonally quiet. Jewelers saw vibrant gold sales during lunar festival. Solid interest in 0.30 to 0.70 ct., H-J, VS diamonds, but buyers hesitant due to price levels.