Rapaport Weekly Market Comment

Sentiment positive as holiday sales gain momentum. Consumers continue to focus on meaningful gifting. Travel spending gradually returning. Manufacturers raising production after Diwali break amid shortages of better-quality RapSpec A3+ diamonds above 1 ct. De Beers Nov. sight -7% to $430M. Rio Tinto takes full ownership of Diavik mine. Chow Tai Fook 1H revenue +79% to $5.7B, profit +60% to $470M. Birks Group 1H revenue +48% to $67M, profit of $791K vs. loss of $2M. Indian government to require GJEPC membership for rough imports and exports. The Rapaport Group wishes all our friends a happy Thanksgiving and a successful holiday season.

Fancies: Market robust. Prices high and stable, supported by supply shortages. 1.20 to 3.99 ct., F-J, VS-SI is hottest category and seeing scarcities. Retailers offering broader product ranges as consumers seek alternative shapes. Dealers report increased sales of fancy-shape engagement rings. Rise in orders for Ovals, Pears, Emeralds, Princesses, long Radiants and Marquises. Ovals and Radiants closing price gap with Rounds. 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: Trade optimistic during peak selling period. Steady bridal sales as America anticipates 2022 wedding boom. Jewelry among strongest categories at department-store chains. Good demand for round, 1 to 3 ct., G-I, SI1-SI2 goods. Melee market buoyant; merchandise in short supply. Upward trend in oval and cushion, 2 to 3 ct., G-H, VS diamonds.

Belgium: Uncertainty returns amid European Covid-19 wave. Government tells citizens to work from home four days a week. US and Chinese holiday demand supporting market. Dealers struggling to buy at desired prices. Stable appetite for 1 to 2 ct., G-H, VVS2-SI, 3X diamonds. 0.50 to 0.70 ct. items also moving well.

Israel: Positive sentiment as dealers fill US orders. Holiday buying strong compared with past two years, but finding the right inventory is difficult. Steady market for commercial goods. 0.30 to 0.50 ct., D-G, SI2-I1 diamonds selling well. Far East demand improving for round, 2 to 5 ct., L-M, IF-VS goods.

India: Manufacturing resumes following Diwali break. Cutters’ profit margins squeezed under pressure from high rough prices. Some shortages evident due to Diwali production lull and seasonal demand. October polished exports rose 45% to $2.56 billion as sector met US holiday orders ahead of Diwali; rough imports up 2% to $1.38 billion.

Hong Kong: Holiday buying supporting the market. Strong sales of round and fancy-shape, 1 ct., D-I, VS2-SI2, 3X stones. Local retail positive amid economic recovery and improvement in Covid-19 situation. Continued hopes that borders will reopen. Chinese consumers showing interest in 2 to 5 ct., G-H, VS, 3X goods. Yellow diamonds moving well on mainland.