Rapaport Weekly Market Comment
Aug 13, 2020 11:18 AM

Sentiment improving after relatively good trading in July-August. Shortages supporting prices. Fewer dealers active in the market. Suppliers with the right goods that meet selective demand gaining market share. Manufacturers considering higher rough purchases as they assess 4Q inventory requirements. Rough buying limited due to travel restrictions and inflated De Beers and Alrosa prices. Alrosa July rough sales -86% to $23M. Sarine 1H profit of $1.2M vs. loss of $2.8M a year earlier, revenue -0.5% to $22M. Hong Kong 2Q polished imports -45% to $2.2B, exports -47% to $1.7B. GIA to provide full color and clarity grading for synthetics. ABN Amro to cease Hong Kong diamond lending.

Fancies: Reduced inventory supporting prices for select fancy shapes. Strength in Ovals and Pears, 1.50 to 2 ct. goods in I-K and VS categories and 3 to 5 ct. SIs. Rising demand for fancies in China helping the market. Excellent cuts and nice shapes in demand. Dealers hoping for improved sales of fancy-shape engagement rings as consumers seek alternative designs at lower cost. High availability of fancies below 1 ct. Off-make, poorly cut fancies illiquid and difficult to sell.

United States: Stronger retail sales stimulating demand for select polished diamonds. High end doing well, with stock-market wealth boosting spending. Bridal segment strengthening. Stable demand and firm prices for 1 ct., G-H, SI diamonds, with shortages of nice makes. Liquidity tight and suppliers giving longer payment terms to loyal buyers. High gold prices influencing estate jewelers and pawnshops to reevaluate inventory.

Belgium: Market very quiet with many dealers on summer vacation. Bourses closed until end of August. Major manufacturers and dealers cautious about the rough market. Rising concerns about credit shortage when demand improves for contract goods from De Beers and Alrosa.

Israel: Some traffic in the bourse despite usual August summer lull. Sentiment slightly improved as dealers have made some sales and depleted inventories of in-demand goods. Less desirable diamonds available in large volumes. Manufacturers interested in buying rough again because of scarcities, but concerned about limited access to viewings and high prices as De Beers and Alrosa have not lowered prices during the downturn.

India: Trading stable, with dealers trying to fill orders before Jain festival of Paryushan (August 15 to 22). Improving US and Chinese demand for 0.30 to 1 ct., D-I, VVS-SI, RapSpec A3+ (3X, none) diamonds. Fancy shapes doing better, particularly ovals and cushions. Mumbai-based diamantaires frustrated by delays at customs in Bharat Diamond Bourse. Surat operations starting to open again as coronavirus restrictions ease. Rough and polished shortages fueling short-term optimism.

Hong Kong: Dealer market slow amid continued caution about Covid-19 and quiet summer season. Local retail weak due to lack of tourism. Steady interest in 0.80 to 1 ct., D-G, VVS-VS diamonds (3X, none) for engagement rings supporting the trade. Chinese buyers focused on 1 to 2 ct., D-J, VS-SI goods, with sellers maintaining prices amid supply shortages in the category in Hong Kong.

Rapaport Weekly Market Comment
Aug 20, 2020 11:18 AM
Polished market improving as governments ease Covid-19 restrictions. Dealers emphasizing digital trading. US and China driving demand for select categories. Uptrend in 0.30 to 0.89 ct. SIs. Suppliers staying firm on prices as dealers struggle to fill orders. Cutters consider increasing production as expectations rise for holiday season. Alrosa 2Q profit -98% to $3.6M. Tiffany extends traceability program to include where cutting, grading and setting took place. Gary Schuler replaces David Bennett as chairman of Sotheby’s jewelry. Rapaport A3 Diamond Specs changed to exclude faint fluorescence.

Fancies: Reduced inventory supporting prices for select fancy shapes. Ovals and Pears strong in 1.50 to 2 ct., G-K, VS-SI categories and 3 to 5 ct. SIs. Very fine fancy cuts selling at a premium. Rising orders in China helping the market. Excellent cuts and nice shapes in demand. Dealers hoping for improved sales of fancy-shape engagement rings as consumers seek alternative designs at lower cost. High availability of fancies below 1 ct. Off-make, poorly cut fancies illiquid and difficult to sell.

United States: Market active in specific categories. Jewelers insisting on memo supply and avoiding inventory buying. Shortages supporting prices as dealers compete for goods to fill orders. Steady demand for 1 to 3 ct., G-I, VS-SI diamonds. Estate jewelry improving in the secondhand market. Rising interest in fancy yellows.

Belgium: Bourses to remain closed until end of August due to summer vacation. Dealers starting to return from holiday amid increasing demand from US and China. Monthly polished exports reach $580 million in July, up from $469 million in June but down 35% from $898 million year on year. Rough imports 30% below previous year at $376 million.

Israel: Steady memo orders from US driving cautious optimism. Shortages supporting prices of select popular categories. A lot of less-desirable diamonds available. Dealers looking for specific goods are not finding supply. Indian manufacturers maintaining firm prices. Large stones improving in commercial quality ranges, with solid demand for 3 to 5 ct. SIs.

India: Fewer dealers active due to Paryushan Jain festival, which ends over the weekend. Rising demand for rough, with prices firming on the secondary market. Factories operating at 30% to 50% capacity. Businesses gradually increasing operations as government eases restrictions. China and US orders picking up. Some mulling shorter Diwali vacation if improvement continues. Local jewelers gradually reopening but refraining from buying new inventory.

Hong Kong: Sentiment positive as government manages to contain third wave of coronavirus infections. Social distancing measures still in place. Steady orders from China, with focus on 1 to 2 ct., D-K, VS-SI (VG+, no fluorescence). Dealers optimistic for fourth-quarter holiday season after months of pent-up demand. Hong Kong luxury retail continues to struggle. Many stores closing, citing high rent and labor costs.

Metals
Gold 1,925.69 -0.16%

Silver 26.50 -0.38%

Platinum 926.05 +0.69%

Palladium 2,161.36 -0.41%

Currencies
Euro $1.18 +0.32%

Pound $1.31 +0.37%

Yuan($) 6.91 -0.11%

Rupee($) 74.25 +0.14%

Indices
S&P 500 2,901.52 +0.01%

FTSE 100 7,432.42 -1.11%

Hang Seng 27,906.59 -0.91%

Shanghai 2,725.25 -0.46%

Sensex 38,645.07 -0.12%

Stocks
Tiffany & Co. $127.03 +0.81%

Signet Jewelers $15.60 +13.29%

Chow Tai Fook HKD 7.63 +1.19%

LVMH €402.65 -0.33%

Petra Diamonds GBX 2.60 -3.70%

Rapaport Weekly Market Comment
Sep 3, 2020 11:31 AM By Rapaport News
Positive sentiment as the trade adapts to the Covid-19 selling environment. Polished prices firming due to shortages. 1 ct. RAPI +3.2% in Aug. Manufacturers seeing better profit margins after De Beers and Alrosa reduced rough prices. Polished production increasing but coronavirus restrictions still limiting Surat factories. Rough trading steady. Momentum likely to continue through October as retailers prepare holiday inventory. Signet Jewelers 2Q sales -35% to $888M, loss of $82M. Macy’s highlights strong jewelry category. Belgium July polished exports -35% to $580M, rough imports -30% to $376M. RapSpec A3 Diamond Specs changed to exclude faint fluorescence.

Fancies: Reduced inventory supporting prices for select fancy shapes. Ovals and Pears strong in 1.50 to 2 ct., G-K, VS-SI categories and 3 to 5 ct. SIs. Very fine fancy cuts selling at a premium. Rising orders in China helping the market. Excellent cuts and nice shapes in demand. Dealers hoping for improved sales of fancy-shape engagement rings as consumers seek alternative designs at lower cost. High availability of fancies below 1 ct. Off-make, poorly cut fancies illiquid and difficult to sell.

United States: Bridal supporting the retail segment as jewelers start to plan inventory for holiday season. Supply shortages leaving dealers struggling to replace better-quality goods they have sold. Solid demand for 1 to 3 ct., G-I, VS-SI, RapSpec A3 diamonds for engagement rings. Scarcity of rounds and ovals stimulating interest in emeralds and princess cuts. Strong market for 5 ct., D, IF diamonds among high-end jewelers.

Belgium: Dealers back from vacation with more optimistic view of market than one month ago. Focus is on European customers starting to prepare for the holiday season. Polished shortages stimulating rough trading as manufacturers gradually raise production levels. De Beers and Alrosa goods selling at a premium on the secondary market. GIA considers shutting Antwerp lab.

Israel: Trading restrained due to lack of supply as dealers try to fill orders. Prices firm, including for less popular goods such as those with medium blue fluorescence. Current polished production not enough to fill scarcities. Stable interest in 1 to 2 ct., D-H, IF-VS2 diamonds.

India: Steady demand from US and China fueling positive sentiment. Momentum expected to continue until Diwali (November 14). Local jewelers not buying, as retailers still only partially open. Certified goods moving better than non-certs. Surat market back open but manufacturing at 30% to 60% capacity. Rough trading busy and showing better profitability following De Beers’ August price corrections.

Hong Kong: Market confidence rising as government continues to ease Covid-19 rules. Demand from China driving activity, but limitations on delivery and foreign currency payments are making cross-border trade difficult for dealers. Luxury retail remains slow due to slump in tourist arrivals. Chow Sang Sang sales down 33% to $828 million in first half, profit down 66% to $27 million. Increase in orders for fancy shapes and fancy-color diamonds. This year’s September show has been canceled after initially being postponed to November.

Financial Data
Stocks
Tiffany & Co. $114.05 +0.76%

Signet Jewelers $18.28 -2.25%

Chow Tai Fook HKD 7.63 +1.19%

Chow Sang Sang HKD 8.45 +0.96%

Titan INR 1174.55 -1.13%

Richemont CHF 66.64 +0.15%

LVMH €424.00 +0.89%

Swatch Group CHF 216.20 +0.65%

Anglo American GBX 1979.80 +2.19%

Petra Diamonds GBX 2.07 +11.77%

Lucara Diamonds CAD 0.54 0.00%

Gem Diamonds GBX 37.00 +1.37%

Metals
Gold 1,943.33 -0.82%

Silver 26.87 -1.12%

Platinum 949.43 -2.51%

Palladium 2,377.64 -0.76%

Currencies
Euro $1.18 -0.09%

Pound $1.30 +0.03%

Yuan($) 6.77 +0.25%

Rupee($) 73.64 +0.12%

Rapaport Weekly Market Comment
Sep 24, 2020

Polished prices firm amid shortages and improving holiday orders. Trading restrained due to continued rise in Covid-19 cases. Jewelers preparing 4Q marketing with emphasis on e-commerce strategies to drive growth. Retailers pushing dealers for memo. More manufacturers insisting on cash deals. Steady rough buying during sight week as Surat cutters try to increase production and fill polished supply gaps. De Beers reduces prices by 5% to 10% for rough below 1 ct. Dominion gains $46M at first sale since March. US July polished imports -50% to $806M, exports -25% to $868M. Rapaport offices will be closed on Monday, September 28, due to Yom Kippur.

Fancies: Reduced inventory supporting prices for select fancy shapes. Ovals and Pears strong in 1.50 to 2 ct., G-K, VS-SI categories and 3 to 5 ct. SIs. Princesses improving. Excellent cuts and nice shapes in demand and selling at premiums. Rising orders in China helping the market. Dealers hoping for improved sales of fancy-shape engagement rings as consumers seek alternative designs at lower cost. High availability of fancies below 1 ct. Off-make, poorly cut fancies illiquid and difficult to sell.

United States: Steady demand for select categories of polished. Bridal segment robust and seeing solid interest in 1 to 2 ct., G-I, VS-SI diamonds. Fancy shapes also improving. Many retailers taking items on memo, and some beginning to build inventory for the holiday season. Suppliers with the right goods and strong relationships doing well.

Belgium: Focus on local dealer demand and filling US orders. European buyers restrained. Prices firm and shortages apparent in popular categories such as 0.30 to 0.90 ct., G, VS2. Scarcity of both goods and suppliers influencing large-stone market. More polished expected to become available next month as manufacturers gradually raise production. Busy rough trading following De Beers price cuts.

Israel: Bourse activity slow due to country-wide lockdown over Jewish holiday period. Dealers concentrating on US market but restrained by supply shortages. Some orders for lower-quality items due to lack of better makes. Rising interest in fine-cut fancy shapes.

India: Challenging market as Covid-19 cases continue to increase. Polished demand stable after initial growth spurt from economy reopening. Large manufacturers raising production to fill US holiday orders before Diwali break, but operations limited due to worker restrictions. Dossiers and 1 ct.-plus certs doing well. Some improvement in jewelry sales amid stable gold price.

Hong Kong: Gradual improvement as business restrictions ease. Increasing market for large stones in fancy colors and fancy shapes. Dealers careful to obey tax and customs rules after Chinese government crackdown on diamond smuggling led to arrest of 121 people. Expectations for good retail sales in mainland China during October 1 Golden Week. Hong Kong jewelers suffering from lack of tourists.

Rapaport Weekly Market Comment
Oct 1, 2020 11:31 AM By Rapaport News
Trading quiet due to Chinese and Jewish holidays and Covid-19 uncertainty. Expectations low for Oct. 1 Golden Week Hong Kong retail sales. Global brands focusing on China and e-commerce as mainland luxury shoppers limit travel, impacting seasonal sales at Hong Kong, New York and London flagships. Government crackdown on diamond smugglers ensures level playing field for legitimate traders looking to capitalize on Chinese demand. Lower midstream inventory supporting polished prices. 1 ct. RAPI +2.3% in Sep. Orders improving but concerns rising about shipment delays during the pandemic. Rough robust during De Beers sight and achieving steady premiums on the dealer market.

Fancies: Reduced inventory supporting prices for select fancy shapes. Ovals and Pears strong in 1.50 to 2 ct., G-K, VS-SI categories and 3 to 5 ct. SIs. Princesses improving. Excellent cuts and nice shapes in demand and selling at premiums. Rising orders in China helping the market. Dealers hoping for improved sales of fancy-shape engagement rings as consumers seek alternative designs at lower cost. High availability of fancies below 1 ct. Off-make, poorly cut fancies illiquid and difficult to sell.

United States: Positive momentum as jewelers prepare for the holiday season. Bridal driving demand as the industry looks to capitalize on “For Moments Like No Other” fourth-quarter advertising campaign. Some looking to buy inventory but focus is on memo calls. Steady interest in 1 to 2.99 ct., G-H, VVS-VS goods. Commercial-quality melee also selling well due to orders from large jewelry manufacturers.

Belgium: Dealers optimistic amid continued upturn since end of lockdown. Solid US demand for dossiers. Increasing shift to parcel goods due to shortages of certs. A lot of inquiries without mazal as buyers take time to assess prices and potential resale value. Large-stone segment tough. Rough market active. De Beers boxes selling at around 3% to 4% premium.

Israel: Polished trading quiet with businesses closed for the Jewish holiday period. National lockdown also limiting activity. Restrictions expected to continue for at least two weeks to contain alarming rise in Covid-19 cases. Focus on filling US orders. Not a lot of new goods on the market.

India: Market improving. Steady demand for round, 1 to 5 ct., I-L, VVS-VS diamonds. Growing interest in melee. Ovals, emeralds, pears and cushions moving well. Shortages supporting trade as production remains at estimated 60% capacity. Suppliers maintaining firm prices. Some concerns about buyers missing payments.

Hong Kong: Short week due to October 1 Mid-Autumn Festival. Lack of tourism is weighing on retail. Hong Kong sales of jewelry, watches and other valuable items down 38% at $318 million in August. Local consumer sentiment improving as Covid-19 rules loosen. Stronger expectations for Chinese demand as mainland shoppers continue spending domestically.

Rapaport Weekly Market Comment
Oct 8, 2020 9:00 AM By Rapaport News
Diamond market sentiment improving ahead of holiday season. Polished prices stable. Strong bridal category supporting the trade. Some jewelers buying for inventory but main focus is on memo. Selective demand has left dealers struggling to fill orders due to scarcity of stones in specific categories. Manufacturers trying to raise production after robust rough buying at lower prices in Aug.-Sep. Covid-19 restrictions limiting operations and trading activity. Sotheby’s raises $39M (77% by lot) at HK Magnificent Jewels; sold oval, 102 ct., D, FL diamond for $15.7M ($153,285/ct.) in special online auction. Rapaport Auctions sells $7M in Sep. (84% melee and 80% single stone lots sold).

Fancies: Reduced inventory supporting prices for select fancy shapes. Ovals and Pears strong in 1.50 to 2 ct., G-K, VS-SI categories and 3 to 5 ct. SIs. Princesses improving. Excellent cuts and nice shapes in demand and selling at premiums. Rising orders in China helping the market. Dealers hoping for increased sales of fancy-shape engagement rings as consumers seek alternative designs at lower cost. High availability of fancies below 1 ct. Off-make, poorly cut fancies illiquid and difficult to sell.

United States: Rising expectations for the holidays. Jewelers focusing on commitment jewelry and seeing steady sales of engagement rings and eternity bands. Other segments like silver and fashion jewelry lagging. Solid dealer interest in 1 to 2.50 ct., G-I, VS-SI goods. Retailers mainly working off memo. Some larger chains making inventory orders, stimulating demand for melee. Some improvement in cushions, ovals and emeralds.

Belgium: Market quiet. Many Jewish diamantaires taking vacation during the religious holidays. Trading selective. Suppliers focused on EU are doing well. Other markets slow because of travel restrictions. Steady demand for 1 to 4 ct., H+, VS-SI goods. European retail sluggish due to lack of tourists.

Israel: Very little activity in diamond exchange during seven-day Sukkot festival. Business limited amid nationwide lockdown to curb Covid-19 infections. Protests adding to uncertainty. Dealers and memo houses mainly sourcing supply for US clients.

India: Demand improving ahead of US holiday season. Suppliers struggling to fill orders due to shortages and shipment delays. Manufacturers raising production to close supply gaps before Diwali (November 14). Large factories operating at 60% to 70% capacity in keeping with social distancing rules. Smaller businesses able to work at higher capacities. Retail jewelers gaining confidence for Diwali as consumers get used to new in-store protocols.

Hong Kong: Wholesale trading slow during Golden Week (October 1 to 7). Retail activity in line with low expectations as tourist traffic from China remains restricted. Mainland sales growing but still an estimated one-third below last year’s holiday levels.

Financial Data
Stocks
Tiffany & Co. $118.41 +0.37%

Signet Jewelers $20.83 -0.38%

Chow Tai Fook HKD 7.63 +1.19%

Chow Sang Sang HKD 8.34 -1.30%

Titan INR 1255.20 +0.08%

Richemont CHF 62.52 +0.45%

LVMH €411.90 +1.15%

Swatch Group CHF 219.80 -1.26%

Anglo American GBX 1950.40 +3.54%

Petra Diamonds GBX 1.75 +3.07%

Lucara Diamonds CAD 0.50 0.00%

Gem Diamonds GBX 39.50 +1.28%

Metals
Gold 1,924.45 +1.60%

Silver 25.20 +5.41%

Platinum 888.29 +2.32%

Palladium 2,444.05 +2.52%

Currencies
Euro $1.18 +0.49%

Pound $1.30 +0.82%

Yuan($) 6.71 -1.13%

Rupee($) 73.22 -0.11%

Financial Data
Stocks
Tiffany & Co. $118.96 +0.24%

Signet Jewelers $21.84 +3.80%

Chow Tai Fook HKD 7.63 +1.19%

Chow Sang Sang HKD 8.34 0.00%

Titan INR 1228.85 -2.22%

Richemont CHF 63.02 0.00%

LVMH €416.75 -0.36%

Swatch Group CHF 218.70 -0.41%

Anglo American GBX 1941.20 +0.58%

Petra Diamonds GBX 1.65 -0.48%

Lucara Diamonds CAD 0.50 -1.00%

Gem Diamonds GBX 38.40 -0.78%

Metals
Gold 1,893.75 -0.36%

Silver 23.99 -1.02%

Platinum 855.83 -0.62%

Palladium 2,348.61 -0.18%

Currencies
Euro $1.17 -0.39%

Pound $1.29 -0.66%

Yuan($) 6.73 +0.25%

Rupee($) 73.45 +0.20%