Rapaport Weekly Market Comment
Sep 2, 2021 11:00 AM By Rapaport News
Dealers return from Las Vegas optimistic for holiday season. Good orders at JCK, Luxury, Antique and Couture shows signal positive sentiment among US independents. Major retailers did not attend but are seeing momentum online and in-store. Signet Jewelers 2Q revenue +101% to $1.8B, profit of $225M vs. loss of $82M a year earlier. Chow Sang Sang 1H sales +69% to $1.4B. Sustainability emerges as key branding and sales point. Brilliant Earth prepares Nasdaq IPO as 1H sales +78% to $163M, profit of $11M vs. $200K a year ago. Rough trading strong after De Beers sight; not enough polished to meet demand. Belgium July polished exports +23% to $710M, rough imports +147% to $927M.

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: Upbeat trading at Las Vegas shows. Serious buyers present despite low attendance overall. Strong sales of round, 1 ct. and larger, E-I, VVS-SI, 3X diamonds. Fancy shapes also moving well. Positive demand for expensive items featuring high-quality melee. Traders optimistic about holiday season. US consumer confidence down in August amid concerns about Delta virus strain, according to The Conference Board.

Belgium: Market quiet during vacation period and ahead of upcoming religious holidays. Stable demand for 1 to 2 ct., G-J, VS-SI, 3X diamonds. Stones above 2.50 ct. also selling well. Customers buying in response to specific needs rather than for inventory as prices remain high. Rough trading strong.

Israel: Activity muted as Covid-19 spike continues and Jewish High Holy Days approach. Few Israelis able to attend Las Vegas shows because of travel restrictions. Good sales of 1 ct., G-I, VS-SI, 3X stones.

India: Trading stable. Scarcities supporting market as demand cools. Steady interest in round, 0.50 ct. and larger, G-I, SI goods. Fancy shapes moving well, especially ovals, pears, princesses and radiants. Rough expensive and in short supply amid summer closure of Antwerp market. Polished production limited; rough resale providing better margins than manufacturing. Reports from Jaipur Jewellery Show positive.

Hong Kong: Sales improving following slow summer season. Demand shifting to smaller sizes. Good movement in 0.30 to 0.80 ct., D-I, VVS-SI1 categories. 1 ct. market retreating due to high prices and greater availability. Low appetite for 2 ct. and larger. Local retail picking up; revenue from jewelry, watches, clocks and valuable gifts grew 27% year on year in July. Border closures continuing to support domestic Chinese spending.

Financial Data
Metals
Gold $1,827.00 +0.02%

Silver $24.73 +0.08%

Platinum $1,017.07 -0.07%

Palladium $2,369.91 -0.33%

Currencies
Euro $1.19 -0.08%

Pound $1.39 -0.01%

Yuan($) 6.46 +0.09%

Rupee($) 73.01 +0.08%

Stocks
Signet Jewelers $74.89 -3.96%

Chow Tai Fook HKD 16.20 -1.46%

Chow Sang Sang HKD 11.62 -1.36%

Titan INR 1,869.60 -0.04%

Richemont CHF 104.80 -0.66%

LVMH €648.70 -0.66%

Swatch Group CHF 266.60 -0.82%

Anglo American GBX 2,991.50 +2.77%

Petra Diamonds GBX 1.77 +3.75%

Lucara Diamond CAD 0.70 0.00%

Gem Diamonds GBX 64.30 -2.43%

Rapaport Weekly Market Comment
Sep 30, 2021 10:30 AM By Rapaport News
Diamond market cautious after slow Sep. trading. Some softening in 0.30 to 0.70 ct. goods; 1 ct. and larger firm. US-focused dealers upbeat for 4Q holiday season as jewelry sales maintain momentum. US consumer confidence down following end of Covid-19 relief money and resurgence of Delta variant. China Oct. 1 Golden Week begins amid concerns about economic slowdown and government crackdown on tech wealth. Chow Tai Fook plans 2,000-store international expansion by 2025. Cutters operating at high capacity ahead of Diwali break. GIA continues to see five-week backlog at Mumbai lab. Rough market uncertain ahead of next week’s De Beers sight as prices on secondary market weaken.

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: Slow week with many 47th Street dealers away for Jewish festivals. Trading expected to improve as fourth-quarter holidays approach. Jewelers anticipating strong November-December engagement season due to pent-up wedding demand. July polished imports up 115% at $1.73 billion; polished exports up 34% at $1.16 billion.

Belgium: Market quiet as Jewish and Indian traders return from respective holidays. Dealers expect activity to pick up in coming weeks before India’s Diwali break. US orders steady. China demand cautious. Rough sentiment mixed.

Israel: Activity limited; many taking vacation over eight-day Sukkot festival (September 20 to 28). Dealers focused on filling US holiday demand. Good orders for 1.50 to 2 ct., G-J, VS-SI diamonds. August polished exports up 84% at $345 million, with rough imports up 205% at $235 million.

India: Sentiment mixed in Mumbai. Suppliers to Hong Kong and China struggling. Those to US doing well. Dossiers below 1 ct. sluggish; some traders increasing discounts. Manufacturers submitting large volume of polished for grading. Factories scheduled to close for two weeks over Diwali (November 4). August polished exports rose 69% to $2.05 billion, and rough imports increased 143% to $1.21 billion.

Hong Kong: Wholesale trading quiet. Local dealers shut from Sep. 19 to 21 for Autumn Moon Festival and now preparing for fourth quarter. Very low expectations for Golden Week retail sales as tourist traffic remains limited due to Chinese border and travel restrictions. August revenue from jewelry, watches, clocks and valuable gifts up 28%. China retail outlook muted as analysts at Goldman Sachs predict economic slowdown.

Financial Data
Metals
Gold $1,759.12 +0.38%

Silver $22.53 +1.18%

Platinum $998.19 +0.76%

Palladium $1,988.38 +1.42%

Currencies
Euro $1.16 +0.22%

Pound $1.36 +0.38%

Yuan($) 6.45 -0.12%

Rupee($) 75.54 -0.39%

Stocks
Signet Jewelers $82.05 -4.04%

Chow Tai Fook HKD 16.44 +1.48%

Chow Sang Sang HKD 11.62 -1.36%

Titan INR 1,869.60 -0.04%

Richemont CHF 101.30 +0.15%

LVMH €633.90 +0.35%

Swatch Group CHF 245.10 0.00%

Anglo American GBX 2,991.50 +2.77%

Petra Diamonds GBX 1.69 -0.29%

Lucara Diamond CAD 0.63 0.00%

Gem Diamonds GBX 59.00 +4.98%

Rapaport Weekly Market Comment
Oct 14, 2021 10:30 AM
Rising expectations for US holiday season as retailers see strong sales momentum. Major jewelers carrying good inventory and hoping to capitalize on shipping delays affecting electronics and appliances. Signet Jewelers raises 4Q forecast, agrees to buy Diamonds Direct for $490M. LVMH 3Q jewelry sales +125% to $2.5B, buoyed by Tiffany acquisition. China outlook cautious after drop in domestic tourist spending during Oct. Golden Week. Chow Tai Fook 2Q sales +56%. Rough market quiet amid price concerns and shortages. Alrosa Sept. rough sales -12% to $289M. Rio Tinto invests in Angola’s Chiri exploration project. Sotheby’s Hong Kong garners $50M, but top lots fail to sell.

Fancies: Market robust. Prices high and stable. 1.20 to 3.99 ct., F-J, VS-SI is hottest category and seeing shortages. 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 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 improving as retail jewelers prepare for holidays. Pent-up wedding demand fueling robust engagement-ring sales. Steady orders for 1 to 2 ct., F-K, VS-SI, 3X diamonds. Larger sizes also moving well for bridal. High price levels making it hard for dealers to source goods they can resell at a profit.

Belgium: Polished trading quiet amid decline in Chinese demand. US orders driving activity; stable market for 1 ct., G-J, VS-SI diamonds. Fancy shapes and fancy colors improving as consumers seek unique pieces. Secondary rough market slower, with fewer goods available and concerns growing about profitability.

Israel: Suppliers optimistic for the holiday season. Dealers looking for merchandise but struggling to find lucrative opportunities. Buyers pushing for higher discounts; sellers holding firm due to steep rough costs. Solid interest in 1 ct., G-J, VS2-I1, RapSpec A3+ diamonds. Weaker demand for 0.30 to 0.50 ct., D-H, IF-SI items.

India: Manufacturers maintaining high production levels to fill US holiday orders ahead of Diwali break (beginning Nov. 4). Good liquidity among large exporters. Profit margins tight due to expense of rough. Smaller cutting units finding it difficult to buy rough on secondary market. Gem & Jewellery Export Promotion Council (GJEPC) opens first International Gem & Jewellery Show in Dubai.

Hong Kong: Trading down amid weak consumer sentiment. Quarantine rules continue to limit retail sales as luxury tourist shoppers remain unable to visit. Informa Markets replaces November show with online event. Chinese market cautious following coronavirus surge, power shortages and real-estate crisis.

Financial Data
Metals
Gold $1,768.90 -0.21%

Silver $23.37 +0.08%

Platinum $1,049.67 -0.51%

Palladium $2,010.43 -0.93%

Currencies
Euro $1.16 -0.05%

Pound $1.37 -0.16%

Yuan($) 6.44 -0.06%

Rupee($) 75.06 +0.31%

Stocks
Signet Jewelers $86.48 -0.31%

Chow Tai Fook HKD 18.40 +11.92%

Chow Sang Sang HKD 11.62 -1.36%

Titan INR 1,869.60 -0.04%

Richemont CHF 109.90 +1.20%

LVMH €664.80 -0.36%

Swatch Group CHF 251.00 +0.28%

Anglo American GBX 2,991.50 +2.77%

Petra Diamonds GBX 1.70 -1.16%

Lucara Diamond CAD 0.63 0.00%

Gem Diamonds GBX 60.20 +3.61%

Rapaport Weekly Market Comment
Oct 21, 2021 10:40 AM
Jewelers optimistic for the holiday season. Polished demand outpacing supply, but inventory levels rising and buyers concerned about price increases. Approximately 1.7M stones valued at $7.5B on RapNet. Supplier prices firm due to high rough costs. Strong memo sell-through. De Beers sees robust rough demand at $490M Sep. sight; 3Q production +28% to 9.2M cts., sales volume +18% to 7.8M cts. Alrosa warns of rough shortages, says 10% price hike drove 3Q revenue +59% to $938M. India Sep. rough imports +24% to $1.7B. De Beers’ Lightbox to sell loose lab-grown stones to consumers. Chow Tai Fook testing synthetics brand. Rapaport Auctions sells $8,867,863 (80% by lot and 82% by value).

Fancies: Market robust. Prices high and stable. 1.20 to 3.99 ct., F-J, VS-SI is hottest category and seeing shortages. 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 cuts popular and commanding premiums. Steady orders in China helping the market. Off-make, poorly cut fancies illiquid and difficult to sell.

United States: Business steady as jewelers prepare for the holiday season. Some concern retailers won’t have enough merchandise to match demand. Dealers struggling to find stock that can resell at a profit. Good appetite for 2 to 3 ct., F-J, VS-SI diamonds. Stones below 1 ct. relatively weak. Well-made fancies strong.

Belgium: Polished trading stable. Growing worries about softening Far East market. 1 ct., F-H, VVS diamonds moving well, with focus on US bridal lines. Fancy colors slower than before. Rough trading robust as stones garner steady premiums on the secondary market.

Israel: Positive sentiment despite relatively low activity. Focus is on US market, with increased orders for 1.50 to 2 ct., G-J, VS-SI stones. 3 to 5 ct. fancy shapes also performing well. Dealers finding it hard to acquire the right items at reasonable prices. Buyers starting to travel again, seeking diamonds in India and Hong Kong.

India: US supporting the market as retailers ready holiday offerings. Solid demand for 0.50 to 1 ct., G-H, VS-SI diamonds. High rough prices limiting manufacturing levels even with Diwali break approaching (beginning Nov. 4). Traders expecting longer down time than usual for factories because of thin profit margins. Buyers reluctant to purchase polished for inventory. Local jewelry sales picking up ahead of wedding season.

Hong Kong: Brisk trading ahead of fourth-quarter festivities and Chinese New Year. Demand up for 0.30 to 0.80 ct., D-I, VVS-SI goods; 1 ct. also strong in both rounds and fancies. Retail improving as coronavirus situation eases. Mixed outlook for peak season, with gold jewelry outperforming studded pieces.

Financial Data
Metals
Gold $1,794.27 +0.18%

Silver $24.03 +0.32%

Platinum $1,008.32 +0.41%

Palladium $1,881.02 +2.48%

Currencies
Euro $1.16 -0.09%

Pound $1.38 +0.14%

Yuan($) 6.40 +0.05%

Rupee($) 75.05 -0.22%

Stocks
Signet Jewelers $87.26 -4.44%

Chow Tai Fook HKD 15.42 -2.28%

Chow Sang Sang HKD 11.62 -1.36%

Titan INR 1,869.60 -0.04%

Richemont CHF 113.30 -0.74%

LVMH €664.30 -0.11%

Swatch Group CHF 247.40 -0.80%

Anglo American GBX 2,991.50 +2.77%

Petra Diamonds GBX 1.59 -2.45%

Lucara Diamond CAD 0.62 -4.62%

Gem Diamonds GBX 62.60 -0.63%

Rapaport Weekly Market Comment
Oct 28, 2021 10:30 AM By Rapaport News
Indian suppliers filling final orders ahead of Diwali break. Manufacturing slowing before the festival with factories closing from Nov. 4 to 22. Robust US jewelry sales stimulating diamond trade. High expectations for the holiday season. De Beers research shows sustainability ranks alongside price and design in consumer considerations when buying jewelry; Insight Report estimates 2020 global rough sales -20% to $11.1B, production -18% to 114M cts., polished demand -15% to $23B, diamond-jewelry demand -14% to $68B. Petra Diamonds FY1Q revenue +48% to $115M. India appeals to Alrosa for rough supply to help small cutters. The Rapaport Group wishes all our friends a happy Diwali.

Fancies: Market robust. Prices high and stable. 1.20 to 3.99 ct., F-J, VS-SI is hottest category and seeing shortages. 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 shape commanding premiums. Steady orders in China helping the market. Off-make, poorly cut fancies illiquid and difficult to sell.

United States: Jewelers upbeat ahead of holiday season. Consumer confidence improving as spread of Covid-19 delta variant eases. Nearly half of consumers planning vacation, signaling gradual return of travel and experience economy, according to Conference Board. Dealers and wholesale jewelers busy filling orders, with strength in bridal. Good demand for 1 to 1.50 ct., G-H, VS-SI diamonds.

Belgium: Positive sentiment driven by steady US orders. Market more influenced by demand than supply factors, despite shortages of select categories. Good appetite for 1 to 2 ct. sizes; buyers focused on sourcing 3X stones. Some softness in 4 to 5 ct. diamonds. Fancy shapes above 1 ct. selling well.

Israel: Dealers seeing strong orders but frustrated by high replacement cost. Widening price gap between bulk inventory purchases and specific orders. Some suppliers losing sales because of inventory shortages. 1 to 2 ct., G-J, VS-SIs in demand. 0.30 to 0.50 ct. also selling, helping to ease the price decline from previous weeks. Growing concern about high rough prices.

India: Stable trading ahead of Diwali break, which begins Nov. 4. Polished production slowing as factories wind down for the festival. Mumbai market to shut until Nov. 9; Surat until Nov. 22. Steady demand for 1 to 3 ct., D-H, VS-SIs; 3 ct. strong in H-J. Lower colors weak. Buyers placing strong emphasis on excellent cuts. Rough dealers looking for goods but are cautious due to high prices.

Hong Kong: Market gradually improving. Steady orders for 1 ct., D-J, VS-SI diamonds. Fancy shapes also selling well, with good demand for pear, emerald, and heart shape, 1 to 2 ct., D-H, VVS-VS stones. Rising expectations for Christmas retail sales. Jewelers seeing strong interest in engagement ring and bridal collections due to pent-up wedding demand. Some caution over economic situation in mainland China.

Rapaport Weekly Market Comment
Nov 4, 2021 10:30 AM By Rapaport News

Diamond industry confident for holiday season. US trade upbeat amid steady retail orders. Indian suppliers take Diwali vacation. Dealers focusing on sales; buying has become difficult due to expensive rough and increased competition from large manufacturers selling direct to retailers. Polished prices stabilizing as buyers complete holiday orders. 1 ct. RAPI -0.2% in Oct. US polished imports +118% to $1.8B, exports +64% to $1.2B. Consolidation continues as JBT reports number of jewelry businesses down 2% to 23,984 in 3Q. Rough market stable ahead of next week’s De Beers sight. Letšeng 3Q average price -28% to $1,589/ct. The Rapaport Group wishes all our friends a happy Diwali.

Fancies: Market robust. Prices high and stable. 1.20 to 3.99 ct., F-J, VS-SI is hottest category and seeing shortages. 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 shape commanding premiums. Steady orders in China helping the market. Off-make, poorly cut fancies illiquid and difficult to sell.

United States: Buoyant retail demand, with bridal segment driving the market. Jewelers taking goods on memo and seeing strong sell-through. Steady demand for round, 1 to 3 ct., G-I, VS, 3X diamonds. Fancy shapes also selling well. Suppliers with large inventory offering higher discounts to cash buyers. Smaller companies offering long payment terms to secure deals. Dealers struggling to replace sold inventory at profitable price points.

Belgium: Positive sentiment as suppliers fill orders for US and European holiday season. High end robust ahead of GemGenève show and Geneva auctions. Steady demand for 1 ct., G-I, VS-SI, RapSpec A3+ diamonds. Rough trading resilient. September polished exports jump 32% to $691.5 million, rough imports flat at $838.6 million.

Israel: Business stable. Dealers struggling to find the right goods at reasonable prices. US holiday orders driving activity. Diamond Exchange hosts United Arab Emirates (UAE) Economy Minister to discuss setting up free-trade zone and improving relations with UAE.

India: Market closes for two-to-three weeks due to Diwali. Mumbai businesses on vacation until November 9; Surat factories to return around November 22. Reports of strong domestic jewelry sales on Dhanteras, an important gold-buying occasion. September polished exports rise 22% year on year to $1.91 billion, rough imports up 24% to $1.67 billion.

Hong Kong: Wholesale activity picking up ahead of holidays and Chinese New Year (February 1). Steady demand for 1 ct., F-H, VS2-SI2, 3X diamonds; 0.50 to 0.70 ct. also moving well. Fine cuts in short supply. Good market for fancy shapes, especially in higher clarities. Local retail improving as coronavirus situation eases and government distributes consumption vouchers. Hong Kong hard-luxury sales up 16% to HKD 3.18 billion ($408.5 million) in September.