Prices of the most popular polished diamonds declined once again in November, contrary to what should be a period of stable, if not rising prices. Overall, polished diamond prices remained flat in November for the fourth consecutive month, according to the Mercury Diamond Global Tracker™ (MDGT™), an index of polished diamond transaction prices. The steady prices, following an extended period of price declines, are a welcome sign of stability for the global diamond industry.
Slowly but surely, the tide is turning. For decades, the diamond industry feared the idea of diamonds serving as an investment. Some will say that such attempts in the 80s led to major loss of value and erosion in the perception of diamonds, but most simply wanted to see diamonds as a symbol of love and no more. Diamonds as a component in jewelry sold for a good margin. However, a series of recent initiatives shows how the market, the investment world, and even the industry are starting to accept the idea that diamonds are much more than just something pretty. They have financial power.
On the brink of Thanksgiving, the event that signals the start of the important holiday shopping season, everyone is busy making it happen. However, at the close of November, it seemed that while the industry is optimistic, prices only inched up slightly, demands improved in a very narrow band of goods, and storeowners are not yet reporting any breakthrough in consumer demand.
Polished diamond prices remained flat overall in October for the third consecutive month, according to the Mercury Diamond Global Tracker™ (MDGT™) , an index of polished diamond transaction prices. The steady prices, following an extended period of price declines, are a welcome sign of stability for the global diamond industry.
There are many ways to examine the diamond industry. If you are a regular reader of my articles, you know that I have broken it down from many angles. In all of them, I looked at the industry from the perspective of an insider. As someone active in the diamond industry, I see it from my perspective, especially in the up- and mid-stream, as well as from the perspective of someone active in the high-end polished diamond investment side. I try to understand my clients, and make sure they get good value for their money, and as such, it makes sense to examine the industry from another perspective – that of an outsider.
On one hand, the diamond market is showing clear improvements in activity and demands. However, at the same time, prices of polished diamonds are at a three-year low, and demands are still mostly flat. There are some increases in demand, but in Israel there is a single notable drop in demand.
The diamond industry has quieted down this week, as the Indian center went on its Diwali holiday vacation. Diwali, one of the most popular Hindu holidays, celebrates the victory of light over darkness, good over evil, knowledge over ignorance, and hope over despair. It is an important holiday, and businesses close for at least five days.
Polished diamond prices were practically flat overall in September, according to the Mercury Diamond Global Tracker™ (MDGT™), an index of polished diamond transaction prices. The steady prices, which follow a months-long period of moderating price declines, are a positive sign of stability. Polished diamond prices have been continuously declining for the past three years.
Recent changes in demand for polished round shaped diamonds in key sizes highlight some interesting trends, anomalies and problems in the wholesale sector of the diamond market. A look over the past year reveals that ahead of the holidays, there is not only increased demand, as expected, but shifts in taste as well.
September was dominated by two events – the upcoming holiday season, and the Hong Kong Jewellery & Gem Fair. The upcoming season is starting to have a positive impact on the diamond industry, and the levels of demand are rising in the US. The Hong Kong trade fair went better than expected, yet traders were left with the following question: are we actually turning a profit, considering the cost of rough diamonds, and the achievable polished prices?