Rapaport Weekly Market Comment
Jul 8, 2021 10:30 AM
Polished trading seasonally slow due to US summer vacations. Market optimistic for holiday season. Steady demand, shortages and high rough costs supporting prices. 1 ct. RAPI +2.7% in June. Cutters under pressure to raise production but concerned about rough valuations ahead of De Beers’ July 12 sight. Kimberley Process reports 2020 global rough production -32% to $9.24B, volume -23% to 107.1M cts., average price -12% to $86/ct. Belgium May polished exports +161% to $555M, rough imports +362% to $664M. Titan Company 1Q revenue +117%. Birks Group FY sales -16% to $116M. Alrosa launches provenance program using nanotechnology for diamond tracking.

Fancies: Market robust. Prices firming across most sizes and categories amid shortages and growing fancy demand. Retailers offering wider product ranges as consumers seek alternative shapes. Dealers seeing increased sales of fancy-shape engagement rings. Rise in orders for Ovals, Pears, Emeralds, Princesses, long Radiants and Marquises. Ovals and Cushions closing price gap with Rounds. Oversizes trading at higher prices than usual. Excellent cuts popular and commanding premiums. Steady orders in China helping the market. Off-make, poorly cut fancies illiquid and difficult to sell.

United States: New York trading slower due to long July 4 weekend and traditional summer lull. Fewer memo calls for single stones, in line with seasonal expectations. Buyers selective amid high price levels. Supply shortages and good retail sales driving dealer optimism. Steady orders for 1 to 2 ct., G-J, VS-I1 diamonds.

Belgium: Stable demand across most categories. Some international buyers in Antwerp again. Dealers frustrated by delays at Gemological Institute of America (GIA) and by general supply scarcities. Concerns emerging over trade’s ability to maintain price levels during seasonal downturn. Rough market robust ahead of next week’s De Beers and Alrosa sales.

Israel: Positive sentiment even as US orders taper off during summer break. Dealers looking for goods but struggling to find the right items at attractive prices. Solid demand for 1 ct., G-J, VS-SI, RapSpec A3+ diamonds. Fancy shapes continue to climb. Mixed mood in the rough sector; stable orders filling shortages, but high prices prompting restraint.

India: Sentiment improving as strong US and Chinese demand continues. Steady interest in round, 1 ct., G-J, VS2-I1 diamonds. Fancy shapes moving well. Surat manufacturing levels below capacity due to Covid-19 restrictions and high rough costs. Traders seeing scarcity of polished. GIA labs still experiencing delays due to coronavirus measures and increased grading submissions.

Hong Kong: Local Covid-19 situation getting better. Hopes high that China border will reopen at end of July and enable tourist shoppers to return. Mainland jewelers implementing promotions to stimulate sales during seasonally quiet period. Polished dealers not budging on discounts since goods are in short supply. Solid market for 0.30 to 0.80, D-J, VS-SI, 3X diamonds.

Rapaport Weekly Market Comment
Jul 15, 2021 10:30 AM By Rapaport News
CAUTION: Rough prices surging out of control with some secondary market premiums over 10%. No assurance that polished prices will follow rough price increases. Manufacturing profit margins under pressure as De Beers raises prices 5% at July sight. Rough prices have increased an estimated 20% in 2021 with 1-carat polished only up 11%. Polished trading steady. US and Chinese demand supporting the market. Inventory rising for goods below 1 ct., but shortages remain for select items. De Beers and Diacore buy 39.34 ct. blue rough from Petra Diamonds for $40M ($1M/ct.). Private bidder pays $12.3M ($121,326/ct.) in cryptocurrency for pear, 101.38 ct., D, FL diamond at Sotheby’s.

Fancies: Market robust. Prices firming across most sizes and categories amid shortages and growing fancy demand. Retailers offering wider product ranges as consumers seek alternative shapes. Dealers seeing increased sales of fancy-shape engagement rings. Rise in orders for Ovals, Pears, Emeralds, Princesses, long Radiants and Marquises. Ovals and Cushions closing price gap with Rounds. Oversizes trading at higher prices than usual. Excellent cuts popular and commanding premiums. Steady orders in China helping the market. Off-make, poorly cut fancies illiquid and difficult to sell.

United States: Active trading despite two-week summer vacation period. Larger wholesalers and dealers filling orders and seeing strong sell-through rate on memo. Some smaller companies struggling to compete. Good demand for round, 1 to 2 ct., G-J, VS-SI diamonds. 2 to 3 ct. ovals and emeralds hot. Retail jewelers upbeat amid surge in gift-giving occasions after last year’s cancellations.

Belgium: Positive sentiment and steady movement of 1 to 2 ct., D-H, VS-SI2 goods. 3 ct. slightly weak. Dealers looking for international exposure at trade shows again after past year’s focus on local market and online trading. Fancies selling well; steady demand from European jewelers. More goods becoming available as rough market maintains strength from beginning of the year.

Israel: Polished activity seasonally slow. Many US buyers on vacation. Prices firm amid supply shortages, solid demand and high rough costs. Fancy shapes increasing in price, particularly in H-I colors. Robust market for ovals and pears. Princess cuts making a comeback. Polished exports rose 69% to $1.71 billion in first half; rough imports grew 165% to $1 billion.

India: Market maintaining upward trend amid strong US and Chinese demand. Steady movement in rounds and fancies 1.50 ct. and larger. Lower clarities (I1 and below) are popular. Ovals and pears selling well. Rising concerns that price bubble could lead to hard landing. Some companies reportedly in financial difficulty. Rough expensive as manufacturers seek goods to fill inventory gaps. Surat production at estimated 80%.

Hong Kong: Wholesale seeing seasonal lull. Chinese investment demand focused on gold rather than diamonds. Solid interest in 1 to 1.50 ct., D-M, SI diamonds, especially in lower colors (J-M). Very little movement in 3 ct. and larger. Hong Kong retail improving as government gets virus under control. Continued hopes that border with mainland will reopen and enable buyers to visit.

Rapaport Weekly Market Comment
Jul 22, 2021 10:30 AM By Rapaport New
Market upbeat despite summer lull and high rough prices. Dealers filling orders, spurring confidence for holiday season. US jewelry sales +108% in June, Mastercard reports. Luxury jewelers make strong recovery. Richemont 1Q jewelry maisons’ sales +132% to $3B. Polished prices firm amid supply shortages and consistent demand. Miners drastically reduced rough inventory in 1H; manufacturers raised polished production. De Beers, Alrosa 1H rough prices +14%. De Beers 2Q production +134% to 8.2M cts., sales of 7.3M cts. at $135/ct. Alrosa 2Q production +22% to 7M cts., sales of 11.4M cts. at $96/ct. Belgium June rough imports +187% to $1B. Industry mourns passing of Willie Nagel.

Fancies: Market robust. Prices firming across most sizes and categories amid shortages and growing fancy demand. Retailers offering wider product ranges as consumers seek alternative shapes. Dealers seeing increased sales of fancy-shape engagement rings. Rise in orders for Ovals, Pears, Emeralds, Princesses, long Radiants and Marquises. Ovals and Cushions closing price gap with Rounds. Oversizes trading at higher prices than usual. Excellent cuts popular and commanding premiums. Steady orders in China helping the market. Off-make, poorly cut fancies illiquid and difficult to sell.

United States: Optimistic mood amid steady wholesale and retail business. High-end jewelers doing well. Consumers enjoying stock-market wealth boom and savings from Covid-19 lockdowns. Dealers making good sales but struggling to buy. Large fancies in demand; strongest category is 2 ct., H-M, SI. Melee robust but experiencing shortages since manufacturers shifted to certified diamonds in the past year.

Belgium: Dealers busy filling orders before three-week summer vacation. Bourses to close August 2 to 22. Steady US, European and Chinese markets driving activity. Demand spread across broad range of goods. Large stones above 10 ct. slightly slow. Rising concerns about rough prices.

Israel: Polished trading upbeat. Dealers looking for goods locally as travel to other sourcing centers remains limited. Finding the right certified stones proving difficult. Steady market for 1 to 1.99 ct., G-H, VS-SI, RapSpec A3+ diamonds. India manufacturing restrictions and high rough prices supporting polished valuations.

India: Positive sentiment amid strong US and Chinese demand. Local retail improving. Steady movement in 1 to 2 ct., G-I, VVS-VS2. Supply scarcities continue, but more certified diamonds becoming available as GIA releases more goods to the market. Rough prices prompting concerns about manufacturing profitability. Factories operating at 70% to 80% of capacity.

Hong Kong: Trading relatively slow. Stable interest in 0.30 to 0.80 ct., D-I, VS-SI2, 3X categories; 3 ct. sluggish. Low expectations for next week’s gem and jewelry shows. Chinese buyers limited to online and local sourcing since border remains closed. Luxury shoppers absent from high-end Hong Kong malls. China retailers focusing on summer promotions. Pure gold jewelry outperforming diamonds.

Rapaport Weekly Market Comment
Jul 29, 2021 10:30 AM By Rapaport News
Diamond market quieter as Belgium and Israel trades take vacation. Sentiment positive and prices firm. Dealers seeking opportunities and gaining confidence to buy at higher price levels. US retail recovery driving demand. Polished inventory rising following high-volume 1H rough purchases. RapNet listings exceed 1.5 million diamonds for first time since March 2020. Supply shortages persist due to India production delays. Alrosa buys Gokhran rough to fill supply quota, raises prices estimated 7%. De Beers 1H revenue +138% to $2.9B, earnings of $267M vs. loss of $214M, price index +14%, July sight valued at $510M. LVMH 1H jewelry and watch sales +205% to $4.7B, profit of $935M.

Fancies: Market robust. Prices firming across most sizes and categories amid shortages and growing fancy demand. Retailers offering wider product ranges as consumers seek alternative shapes. Dealers seeing increased sales of fancy-shape engagement rings. Rise in orders for Ovals, Pears, Emeralds, Princesses, long Radiants and Marquises. Ovals and Cushions closing price gap with Rounds. Oversizes trading at higher prices than usual. Excellent cuts popular and commanding premiums. Steady orders in China helping the market. Off-make, poorly cut fancies illiquid and difficult to sell.

United States: Market doing well despite summer lull. Strong demand for fancy shapes, with radiant and elongated ovals, 1 to 2.50 ct., F-I, SIs the best category. Fancy colors also improving. Jewelers selling more than average for this time of year, with movement across a diverse range of goods. Some concern that Covid-19 Delta variant will disrupt retail momentum.

Belgium: Trading slower as summer vacation period begins. Bourses to close August 2 to 22. European luxury houses make strong recovery, with breakout 1H jewelry sales. Rough market calmer than two weeks ago. Alrosa and De Beers goods still selling at healthy premiums on the secondary market.

Israel: Reduced activity due to summer break; suppliers maintaining firm prices. Buyers slowly adapting to higher price levels, but some caution remains. Dealers competing for goods to fill orders amid shortages in some categories. US demand driving the market, with good appetite for 1 ct., G-H, VS-SI diamonds.

India: Mumbai trading mixed, with major exporters doing better than small and midsize companies. Steady US orders; Hong Kong and China slower. Local demand improving ahead of upcoming festivals. Large-scale manufacturers raising polishing production, but scarcities persist due to high rough prices, labor shortages, and delays at the Gemological Institute of America (GIA). Volatile rupee-dollar exchange rate adding uncertainty.

Hong Kong: Wholesale market seasonally slow. Steady demand for 0.30 to 1 ct., D-J, VS-SI2 diamonds. Goods above 3 ct. weak. Hong Kong International Jewellery Show (July 25 to 29) very quiet despite organizers’ promotional efforts; Chinese buyers limited by travel restrictions. Lack of tourists also hurting luxury retailers.

Rapaport Weekly Market Comment
Aug 5, 2021 10:30 AM
Diamond trading quiet amid summer lull and uncertainty over Covid-19 Delta variant. Dealers preparing for Vegas show, but travel restrictions will limit international presence. US supporting the market, with steady orders and good memo sell-through. Polished prices firm despite increase in inventory; 1 ct. RAPI +3.1% in July. Rising expectations for holiday season. Rough market stable after recent price hikes. Rio Tinto 1H diamond revenue +13% to $160M, profit of $5M. Sarine 1H sales +61% to $36M. Jewelers of America appoints Robert Moeller as chairman. Sam Sandberg named president of Plumb Club. Diamond Dealers Club of South Africa elects Molefi Letsiki as chairman.

Fancies: Market robust. Prices firming across most sizes and categories amid shortages and growing fancy demand. Retailers offering wider product ranges as consumers seek alternative shapes. Dealers seeing increased sales of fancy-shape engagement rings. Rise in orders for Ovals, Pears, Emeralds, Princesses, long Radiants and Marquises. Ovals and Cushions closing price gap with Rounds. Oversizes trading at higher prices than usual. Excellent cuts popular and commanding premiums. Steady orders in China helping the market. Off-make, poorly cut fancies illiquid and difficult to sell.

United States: Sentiment positive. Dealers struggling to find goods because of high prices. Steady appetite for round, F-I, VS-SI diamonds with no black center, but not enough clean goods to meet demand. Ovals, radiants and pears selling well in 2 carats and higher. Estate jewelry market strong, with dealers seeking old mine and European cuts. Industry preparing for Las Vegas shows amid Covid-19 Delta wave.

Belgium: Slow activity due to summer break. Some dealers still filling orders, mainly from US and Asia. European market cautious; local retail slow amid virus outbreaks. Rough demand robust despite high prices at Antwerp tenders.

Israel: Market quiet with many dealers on summer vacation. Some uncertainty due to sudden surge in coronavirus cases. Further slowdown expected as tighter restrictions to be enforced next week. Many planning to attend JCK Las Vegas show despite mandated quarantine on return. Polished trading steady in line with global recovery.

India: Diamantaires upbeat but rising concerns that upward trend may not be sustained. US demand supporting the market. Steady interest in 0.30 to 0.70 ct., D-G, VVS-VS, 3X diamonds. 1 to 2 ct. goods selling well. Shortages of SI-and-lower rounds and fancies. Manufacturers raising polished production but high rough prices impacting margins.

Hong Kong: Wholesale and retail markets improving as Covid-19 outbreak eases. Steady demand for 0.30 to 1.50 ct., D-J, VS-SI2, EX-VG diamonds. Some movement in 2 to 3 ct., G-K stones. Last week’s Hong Kong International Jewellery Show very slow; few sales take place, but exhibitors welcome opportunity to meet potential clients. Chinese market relatively slow; emphasis on e-commerce as spread of Delta variant on the mainland raises concerns.

Financial Data
Metals
Gold $1,746.15 -3.30%

Silver $23.86 -5.41%

Platinum $978.34 -3.09%

Palladium $2,623.83 -1.18%

Currencies
Euro $1.18 -0.64%

Pound $1.39 -0.33%

Yuan($) 6.48 +0.25%

Rupee($) 74.26 -0.08%

Stocks
Signet Jewelers $63.10 +2.10%

Chow Tai Fook HKD 14.88 -1.33%

Chow Sang Sang HKD 13.10 -0.76%

Titan INR 1,787.75 -0.64%

Richemont CHF 115.95 +0.52%

LVMH €697.40 0.00%

Swatch Group CHF 304.20 +1.91%

Anglo American GBX 3,287.50 +0.52%

Petra Diamonds GBX 1.71 -2.61%

Lucara Diamond CAD 0.73 -1.35%

Gem Diamonds GBX 63.80 +1.92%

Rapaport Weekly Market Comment
Aug 12, 2021 10:30 AM By Rapaport News
Sentiment positive despite seasonal slowdown. Dealers filling orders but struggling to replace goods at current price levels. Polished prices firm even as inventory rises. Buoyant US retail driving the recovery; July jewelry sales +83%, reports Mastercard SpendingPulse. Overseas exhibitors frustrated by restrictions preventing travel to Las Vegas shows. Manufacturing profit margins under pressure following recent rough price hikes. Alrosa sells $334M of rough in July. Gem Diamonds 1H sales +41% to $104M, Letšeng mine average price +10% to $1,886/ct. Lucara Diamond 2Q revenue of $46M vs. $8M last year, profit of $6M. US June polished imports +93% to $1.6B, exports +139% to $1.2B.

Fancies: Market robust. Prices firming across most sizes and categories amid shortages and growing fancy demand. Retailers offering wider product ranges as consumers seek alternative shapes. Dealers seeing increased sales of fancy-shape engagement rings. Rise in orders for Ovals, Pears, Emeralds, Princesses, long Radiants and Marquises. Ovals and Cushions closing price gap with Rounds. Oversizes trading at higher prices than usual. Excellent cuts popular and commanding premiums. Steady orders in China helping the market. Off-make, poorly cut fancies illiquid and difficult to sell.

United States: Good retail sales making for upbeat trading. Dealers preparing for JCK Las Vegas show (August 27 to 30), although most Belgian, Indian and Israeli diamond suppliers unable to attend due to travel restrictions. Strong memo sell-through across full range of sizes. Steady demand for 1 to 3 ct., G-J, SI-I1 goods as government stimulus supports mid-market jewelry spending. Suppliers struggling to replace inventory as prices keep rising. Fancy colors moving well.

Belgium: Business quiet during summer vacation period. Some companies disappointed they can’t attend JCK show due to unsuccessful US entry applications. No national pavilion at fair amid travel uncertainty. Rough trading steady.

Israel: Dealers enjoying robust US demand as holiday selling period approaches. Retailers buying for inventory, boosting optimism among suppliers. Bourse activity more subdued than in previous weeks as Covid-19 cases rise; possibility of fourth lockdown. July polished exports +68% year on year but showing slower growth than in second quarter.

India: Trading has cooled amid summer break in some overseas markets. Steady US and Hong Kong orders; strong appetite for lower-value diamonds under 0.20 ct. Customers willing to pay more to secure goods as travel restrictions limit buying options. Emeralds and pears moving well. Surat manufacturing units gradually raising production ahead of holiday season.

Hong Kong: Stable market with shortages in select categories of polished. Sellers offering minimal price flexibility. Dealers focused on specific items; good demand for 1 ct., D-J, VS-SI2, 3X diamonds. China retail steady as consumers continue to spend locally instead of traveling. Larger jewelers expanding mainland store networks amid positive outlook for fourth-quarter sales. Hong Kong luxury retail struggling due to lack of tourists.

Rapaport Weekly Market Comment
Aug 19, 2021 10:30 AM By Rapaport News
Dealers optimistic about US market ahead of next week’s Las Vegas shows. Low visitor traffic expected. Buyers who do attend will be looking for goods and testing price levels. Foreign suppliers unable to go but watching for signals about trends and holiday prospects. Polished prices stable despite seasonal slowdown. Buyers resisting higher prices; sellers holding prices firm due to steep rough costs. Rough market robust. Stable supply anticipated at Aug. De Beers sight. Alrosa 2Q profit $412M vs. $4M in 2020. Rapaport Breakfast and Social Responsibility Conference taking place at JCK on Sunday, August 29. Register here. Rapaport Magazine publishes special Social Responsibility issue.

Fancies: Market robust. Prices firming across most sizes and categories amid shortages and growing fancy demand. Retailers offering wider product ranges as consumers seek alternative shapes. Dealers seeing increased sales of fancy-shape engagement rings. Rise in orders for Ovals, Pears, Emeralds, Princesses, long Radiants and Marquises. Ovals and Cushions closing price gap with Rounds. Oversizes trading at higher prices than usual. Excellent cuts popular and commanding premiums. Steady orders in China helping the market. Off-make, poorly cut fancies illiquid and difficult to sell.

United States: Market upbeat in anticipation of Las Vegas shows. Steady flow of advance requests to view goods. Some hoping absence of overseas exhibitors will boost opportunities for locals. Recent price growth making sourcing difficult. Solid demand for round, F-I, VS-SI, 3X diamonds. Fancy shapes moving well, especially ovals and elongated cushions. High-end jewelry brands doing well.

Belgium: Trading quiet; many dealers still on vacation. Rough in short supply ahead of next week’s De Beers sight.

Israel: Steady overseas demand lifting sentiment during seasonally quiet period. Optimism for US holiday season. Some companies attending Las Vegas shows; many not going due to new Covid-19 travel restrictions. Fourth local coronavirus wave raising concerns amid talk of possible lockdown in September.

India: US and Hong Kong orders supporting the market during summer lull. Polished production at 70% to 80% capacity, but manufacturers concerned about high rough prices. Dealers awaiting feedback on JCK; most Indians unable to attend. Good demand for dossiers in G to M colors. 1 ct. diamonds also selling nicely.

Hong Kong: Business improving. Steady interest in 1 ct., D-I, VS2-SI2, 3X goods. Suppliers maintaining stable discounts for 1 to 3 ct. sizes despite growing inventories and mixed demand. Pears, hearts and emeralds moving well. E-commerce spending buoyant during recent Qixi love festival. Local Hong Kong retail recovering slowly as government gets pandemic under control, but economic activity still sluggish.

Financial Data
Metals
Gold $1,791.20 -0.32%

Silver $23.84 -0.86%

Platinum $1,048.31 -0.02%

Palladium $2,498.93 -0.01%

Currencies
Euro $1.18 -0.10%

Pound $1.37 -0.21%

Yuan($) 6.48 +0.18%

Rupee($) 74.14 +0.18%

Stocks
Signet Jewelers $75.30 +1.92%

Chow Tai Fook HKD 14.72 +0.41%

Chow Sang Sang HKD 11.62 -1.36%

Titan INR 1,869.60 -0.04%

Richemont CHF 103.50 -0.10%

LVMH €622.10 -0.35%

Swatch Group CHF 263.00 +1.11%

Anglo American GBX 2,991.50 +2.77%

Petra Diamonds GBX 1.69 +0.42%

Lucara Diamond CAD 0.69 +3.76%

Gem Diamonds GBX 64.80 +0.78%

Financial Data
Metals
Gold $1,813.14 -0.18%

Silver $23.91 -0.36%

Platinum $1,009.68 -0.53%

Palladium $2,413.42 +0.15%

Currencies
Euro $1.18 +0.04%

Pound $1.38 -0.00%

Yuan($) 6.46 +0.02%

Rupee($) 73.03 +0.13%

Stocks
Signet Jewelers $79.20 -1.12%

Chow Tai Fook HKD 15.76 +6.49%

Chow Sang Sang HKD 11.62 -1.36%

Titan INR 1,869.60 -0.04%

Richemont CHF 101.00 -1.17%

LVMH €626.80 +0.29%

Swatch Group CHF 258.20 -1.30%

Anglo American GBX 2,991.50 +2.77%

Petra Diamonds GBX 1.70 -2.41%

Lucara Diamond CAD 0.70 -1.41%

Gem Diamonds GBX 65.00 +1.56%