Rapaport Weekly Market Comment
Oct 15, 2020 10:30 AM
Rising expectations for US holiday season. Retailers beginning early promotions and planning for longer 4Q selling period to avoid overcrowding among last-minute shoppers. Shortages supporting polished prices after manufacturing down by estimated 50% in 2020. Large volume of new polished expected to become available before year’s end following strong 3Q rough buying. De Beers Sep. sales +57% to $467M, Alrosa +28% to $328M. GIA launches four digital synthetic-diamond reports specifying 4Cs and growth method. New CIBJO guidelines say lab-grown diamonds should get “product specifications” instead of grading reports in order to preserve rarity of natural diamonds.

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: Positive sentiment as jewelers order goods for the holiday season. Steady memo calls as retailers limit owned inventory in the Covid-19 economy. Solid demand for rounds in 0.70 to 1.50 ct., G-I, VS-SI to satisfy thriving bridal market. Cushions and ovals also doing well. Shortages of stronger items leaving dealers struggling to replace merchandise they’ve sold.

Belgium: More caution than in previous weeks due to spike in coronavirus infections. Good European demand as limited travel prompts dealers to focus on the local market. UK, Germany and Italy are strongest centers. Online selling also robust. Rough activity stable after large De Beers and Alrosa September sales.

Israel: Business quiet as government extends lockdown beyond Jewish holidays to at least October 18. Orders steady in US but slow in Far East, particularly Hong Kong. Shortages supporting prices for certain categories, but large volume of goods expected to become available as production levels rise. Solid interest in 0.50 to 1 ct., D-H VS-SIs. Cushions and radiants improving and showing firm prices.

India: Trading stable, with steady demand for round, 1 ct., G-J, VS diamonds. Demand from local jewelers up as well. Polishing factories operating at around 70% capacity as manufacturers prepare for rise in holiday orders. Companies planning shorter Diwali break of five to seven days to boost sales. Good market for fancy shapes above 1 ct.

Hong Kong: Slow retail sales during important Golden Week shopping period due to slump in tourism and weak consumer sentiment. Mainland China more upbeat amid good local luxury spending. Tse Sui Luen warns of $5.2 million loss in fiscal first half as coronavirus-related restrictions ravage Hong Kong sales. Rising dealer demand for 1 to 2 ct., D-H, VVS-VS diamonds.

Financial Data
Stocks
Tiffany & Co. $122.19 -0.43%

Signet Jewelers $23.07 +1.23%

Chow Tai Fook HKD 7.63 +1.19%

Chow Sang Sang HKD 8.33 +1.83%

Titan INR 1228.80 +0.46%

Richemont CHF 62.64 +0.19%

LVMH €432.30 -0.07%

Swatch Group CHF 210.70 +0.10%

Anglo American GBX 1972.40 +0.89%

Petra Diamonds GBX 1.57 -0.76%

Lucara Diamonds CAD 0.50 +1.02%

Gem Diamonds GBX 37.50 -1.06%

Metals
Gold 1,919.27 +0.60%

Silver 25.01 +1.37%

Platinum 877.68 +0.07%

Palladium 2,407.10 +0.15%

Currencies
Euro $1.19 +0.27%

Pound $1.30 +0.81%

Yuan($) 6.66 -0.30%

Rupee($) 73.63 +0.22%

Rapaport Weekly Market Comment
Oct 22, 2020 10:30 AM
Sentiment improving as holiday orders and shortages support polished prices. Cutters planning brief Diwali break amid rise in production. US holiday shoppers expected to keep spending in line with last year at average of $998, says NRF. Jewelers with strong digital presence doing well. Fewer 3Q bankruptcies than expected as JBT reports US industry decline of 3% to 24,258 businesses. China strong. Chow Tai Fook 2Q mainland sales +21%, Hong Kong -52%. LVMH 3Q jewelry & watch sales -14% to $1.1B. Miners’ rough inventory increasing: De Beers 3Q production -4% to 7.2M cts., sales -11% to 6.6M cts. Alrosa 3Q revenue -4% to $589M, price index -7%. Chaim Pluczenik elected AWDC president.

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: Sentiment mixed. Rate of recovery varying according to type of goods and digital strategy. Pandemic has intensified split between omni-channel and offline retailers. Holiday demand rising. Emphasis on memo supply. Steady bridal sales ahead of engagement season. Dealers struggling to replace popular goods. Estate jewelry moving well.

Belgium: Government tightening restrictions as coronavirus infections rise. Concerns about impact on local diamond businesses. Travel restrictions preventing traders from sourcing goods. Sustained orders for 0.50 to 0.90 ct. and 1 ct., E-G, VVS-SI (3X) diamonds. Weaker demand for larger stones. Yellow and pink diamonds improving.

Israel: Market quiet despite lifting of nationwide lockdown. Bourse reopens trading halls with restrictions on capacity. Companies holding old inventory; fresh goods hard to source and selling fast. Steady demand for 1 ct., D-H, VS-SI diamonds.

India: Holiday orders from US and China driving business. Shortages supporting prices for 1 to 2.99 ct. diamonds. Polished production continues to rise. Manufacturers planning shorter Diwali break amid rush to fill seasonal demand. Growing interest in lower colors. Domestic sales up as Indian festival period approaches, signaling start of wedding season.

Hong Kong: Local market quieter than usual in lead-up to Chinese New Year. Luxury sales limited as tourism remains slow. Mainland demand improving as consumers shop domestically. Hong Kong-based jewelers seeing mixed results. Chow Tai Fook thriving in China but Luk Fook struggling. Strong spending outlook for affluent Chinese.

Financial Data
Stocks
Tiffany & Co. $123.54 +0.73%

Signet Jewelers $26.54 +7.93%

Chow Tai Fook HKD 7.63 +1.19%

Chow Sang Sang HKD 8.65 +2.13%

Titan INR 1241.70 +1.00%

Richemont CHF 63.00 +0.67%

LVMH €428.00 +0.19%

Swatch Group CHF 208.30 +1.02%

Anglo American GBX 1984.40 +1.69%

Petra Diamonds GBX 1.46 +4.14%

Lucara Diamonds CAD 0.48 -5.00%

Gem Diamonds GBX 36.50 +0.55%

Metals
Gold 1,900.07 -0.20%

Silver 24.21 -2.07%

Platinum 892.02 +0.57%

Palladium 2,364.37 -1.01%

Currencies
Euro $1.18 -0.11%

Pound $1.30 -0.31%

Yuan($) 6.70 +0.27%

Rupee($) 73.93 +0.33%

Rapaport Weekly Market Comment
Nov 5, 2020 10:30 AM
High voter turnout as US election reflects divided country. Rising expectations for holidays despite American election uncertainty and second round of Covid-19 lockdowns. Consumer spending expected to be in line with last year. Jewelers begin seasonal promotions early, with emphasis on e-commerce. Polished prices stabilizing as buyers complete holiday orders. 1 ct. RAPI +1% in Oct. Rough trading steady during De Beers sight, but demand slower than last month. Smaller goods weak. Hong Kong 3Q polished imports -32% to $2.7B, polished exports -2% to $2.8B. Rio Tinto’s iconic Argyle mine ends production, having recovered 825 million carats in 37-year life.

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: Sentiment mixed due to uncertainty about this week’s elections. Dealers concerned about potential impact of voting results on Manhattan businesses. Rising expectations for festive season. Retailers preparing for a spike in online sales. Wholesalers busy filling orders as stores plan final holiday collections and promotions. Bridal supporting the market with good demand for 1 to 2 ct., G-I, VS-SI diamonds.

Belgium: Confidence down due to rise in Covid-19 cases. Businesses remain open but not seeing much activity. Very little inventory buying. European jewelers and luxury houses have reduced their holiday expectations. Rough trading stable; focus is on larger goods for polished above 1 carat. Industry mourns the passing of Jacques Korn, former president of the Antwerp Diamond Bourse, and Prabodh Mehta of Antwerp-based Gembel Diamonds.

Israel: Dealers looking for the right goods. Business as usual for sought-after items, but trading in bread-and-butter categories is down. Focus on filling US orders and meeting specific China demand. Bourse seeing steady traffic but not many transactions. Improvement in lower-color, 0.30 to 0.89 ct. diamonds. Prices for D-H, IF-VS2 have softened since peaking in October. Rise in availability of 1 ct., I-M, IF-SI stones. Yoram Dvash elected chairman of Israel Diamond Institute.

India: Polished suppliers regaining optimism amid solid interest from the US and China. Wedding season stimulating local jewelry retail sector, but gold more dominant than diamonds. Rough trading stable during sight week. Manufacturing at 70% to 90% of capacity. Factories planning shorter Diwali break of three to five days rather than two weeks; festival falls on November 14. Polished inventory levels rising. GJEPC calls on government to reduce polished import duty from 7.5% to 2.5% in 2021 budget.

Hong Kong: Dealer market quiet as travel remains limited to local residents and requires two-week quarantine on arrival. Stores struggling due to lack of Chinese tourist shoppers and weak domestic sentiment. China retail positive. Steady mainland orders for 0.50 ct., G, VVS2 and 1 ct., G-H, VVS2-VS1 RapSpec A3 diamonds. Jewelers preparing inventory for Chinese New Year on February 12.

Financial Data
Stocks
Tiffany & Co. $131.15 -0.01%

Signet Jewelers $22.50 -3.93%

Chow Tai Fook HKD 7.63 +1.19%

Chow Sang Sang HKD 8.69 +2.24%

Titan INR 1253.50 +0.92%

Richemont CHF 69.04 +8.90%

LVMH €435.50 -0.29%

Swatch Group CHF 211.80 +0.76%

Anglo American GBX 1912.00 +2.76%

Petra Diamonds GBX 1.40 -1.96%

Lucara Diamonds CAD 0.54 +5.88%

Gem Diamonds GBX 35.80 +0.14%

Metals
Gold 1,874.60 +0.63%

Silver 24.02 -0.26%

Platinum 871.94 +0.19%

Palladium 2,481.18 -0.19%

Currencies
Euro $1.18 -0.19%

Pound $1.32 +0.68%

Yuan($) 6.61 -0.31%

Rupee($) 74.25 +0.33%

Financial Data
Stocks
Tiffany & Co. $131.17 +0.01%

Signet Jewelers $25.77 +4.76%

Chow Tai Fook HKD 7.63 +1.19%

Chow Sang Sang HKD 8.78 +0.80%

Titan INR 1305.40 +1.58%

Richemont CHF 75.46 -2.03%

LVMH €474.00 +1.10%

Swatch Group CHF 228.20 -0.61%

Anglo American GBX 2084.50 +1.71%

Petra Diamonds GBX 1.46 -3.82%

Lucara Diamonds CAD 0.57 0.00%

Gem Diamonds GBX 36.70 +3.09%

Metals
Gold 1,870.91 +0.28%

Silver 24.27 -0.09%

Platinum 873.33 +0.50%

Palladium 2,354.97 +1.34%

Currencies
Euro $1.18 +0.32%

Pound $1.32 -0.26%

Yuan($) 6.62 -0.17%

Rupee($) 74.64 +0.19%

Rapaport Weekly Market Comment
Nov 12, 2020 10:30 AM
Sentiment improving as US consumers gain confidence following Biden election win. China strong with robust Singles’ Day sales. E-commerce driving growth as jewelers invest in multi-channel platforms and adjust to remote selling strategies. De Beers values 2019 diamond jewelry demand +0.7% at $79B; estimates 1H 2020 US sales -40%, China -45%, India -30%. Christie’s Geneva sells $37M (89% by lot). Sotheby’s brings in $52M, with 14.83 ct., fancy vivid purple-pink Spirit of the Rose diamond going for $26.6M ($1.8M/ct.). Alrosa 3Q profit -44% to $99M. Lucara finds 998ct. rough; HB Antwerp to polish stone. The Rapaport Group wishes all our friends a happy Diwali.

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: Optimism as holidays near and election uncertainty abates. Retailers preparing inventory and starting promotions. Spike in online sales expected. Bridal moving well; single-stone engagement rings and eternity bands driving the category. High-end goods outperforming commercial qualities and maintaining prices amid shortages of 4 ct.+, D, IF diamonds. Wholesalers struggling to source matching 1 to 2 ct., G-H, VS-SI pairs for earrings, which are popular gift items.

Belgium: Short week due to Armistice Day public holiday. Dealers cautious amid government lockdowns to curb rise in Covid-19 infections. European jewelers concerned about weak consumer confidence due to second coronavirus wave. Suppliers with the right goods selling at firm prices. Focus is on US demand. Rough market stable following De Beers sight.

Israel: Trading slightly slower than in previous weeks as US clients complete seasonal orders. Hong Kong and Europe weak. Improvement in 0.70 to 1.50 ct., I-M, SI-I2 diamonds as lower colors offer more attractive price points. Widening gap between top-quality and lesser categories as more inventory becomes available. Buyers showing preference for 3X, no fluorescence, no brown, green, milky (BGM) goods.

India: Steady polished trading. Dealers prepared to accept smaller margins in favor of greater turnover volume. Foreign buyers relying on Mumbai-based brokers to source goods due to travel restrictions. Manufacturers finalizing orders and settling payments before next week’s Diwali break. Factories minimizing vacation to make up for lost production time during lockdown earlier in the year. Good gold jewelry demand ahead of the festival.

Hong Kong: Emphasis on e-commerce as online sales surge for 11/11 Singles’ Day. China retail strong. Hong Kong jewelers sluggish due to lack of tourist traffic. Signs of loosening cross-border restrictions, with move to create travel bubble with Singapore. Difficult to find top-quality 1 ct. stones. 0.30 to 1 ct., K-L, SI and lower selling well in China.

Rapaport Weekly Market Comment
Nov 19, 2020 10:30 AM By Rapaport News
Rising expectations for holiday season despite surge in Covid-19. US retail sales +5.7% in Oct. Digital driving growth in US and China: Walmart 3Q e-commerce +79% and Alibaba’s 11/11 Singles’ Day sales +26% to record $74B. Polished trading slow as Indian suppliers take Diwali vacation. Jewelers making final holiday orders. Steady demand for 1 to 2 ct., G-H, VS-SI goods in bridal category. Positive momentum continues in rough market. De Beers Nov. sales at $450M. Petra Diamonds FY revenue -36% to $296M, net loss of $223M. Alrosa cuts 2021 production plan to 30M cts. after reporting 30.6M cts. in inventory. Belgium Oct. polished exports -6% to $629M, rough imports +65% to $873M.

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: Dealers busy working to meet last-minute holiday demand and struggling to replace sold inventory as shortages of popular categories curb sales. Steady interest in 1 to 2 ct., G-J, VS-SI diamonds. Buyers not as focused on memo as before, instead completing more transactions as festive season peaks. Some concern that resurgence of Covid-19 cases may affect retail shopping.

Belgium: Market at a standstill with country on lockdown until December 13 and Indian diamantaires taking vacation for Diwali. Most suppliers have completed US holiday orders. Focus is on sourcing specific US and Chinese requests. Big-stone dealers doing well and seeing good demand for top-range 5 ct. and larger goods. More rough coming to market after sizable De Beers and Alrosa sales, fueling hope that dealers can fill shortages in certain categories.

Israel: Market cooling as bulk buyers complete their purchases for US holiday season. Dealers struggling to source goods while their primary polished suppliers in India are on vacation. Focus shifting to local market. Good activity during Rapaport single-stone auction. Stable demand for 2 ct. and larger rounds and fancy shapes. Sentiment weak across the trade amid significant downsizing due to Covid-19.

India: Very little activity with most businesses on Diwali vacation. Manufacturers taking shorter break to catch up on production time lost during lockdown. Factories likely to continue operating at around 70% capacity next week as rough from De Beers sight arrives. Suppliers also returning to fill final orders from US clients in time for Christmas.

Hong Kong: Polished trade improving during peak selling period but still well below previous years. Best-performing category is 0.30 to 1.50 ct., D-H, VS-SI, 3X. Retail sentiment weak as unemployment rate soars and travel restrictions prevent Chinese luxury shoppers from arriving. Mainland jewelers doing well and feeling optimistic for the season. Record Singles’ Day e-commerce sales boost retail outlook.

Financial Data
Stocks
Tiffany & Co. $131.43 -0.08%

Signet Jewelers $29.38 +2.30%

Chow Tai Fook HKD 7.63 +1.19%

Chow Sang Sang HKD 9.49 -0.11%

Titan INR 1365.15 +5.62%

Richemont CHF 75.82 +0.90%

LVMH €492.55 +0.80%

Swatch Group CHF 231.80 -0.26%

Anglo American GBX 2144.00 +1.13%

Petra Diamonds GBX 1.54 +1.45%

Lucara Diamonds CAD 0.52 -1.89%

Gem Diamonds GBX 45.60 +3.64%

Metals
Gold 1,823.63 -0.77%

Silver 23.39 -0.90%

Platinum 940.91 +0.98%

Palladium 2,331.59 -0.98%

Currencies
Euro $1.19 +0.43%

Pound $1.34 +0.35%

Yuan($) 6.57 -0.17%

Rupee($) 74.00 -0.30%