Diamond costs plummet in July

Diamond costs dropped sharply in July amid sluggish retail gross sales and an oversupply in India, in line with Rapaport’s RapNet Diamond Index. The seasonal summer time slowdown additionally had a unfavourable impact on gross sales.

The RapNet Diamond Index (RAPI™) for 1-carat items, reflecting spherical, D to H, IF to VS2 diamonds, slid 7.3% in July, the steepest month-to-month decline for that measurement since December 2008.

In the meantime, the RAPI of the 0.30-carat, 0.50-carat and 3-carat stones declined 8.9%, 7.9%, and 5.8% respectfully.

Nevertheless, SI (Barely Included) diamonds noticed a “reasonable” decline of three.2% as a consequence of regular demand from the US market.

Weak gross sales additionally led to a rise in polished stock. The variety of diamonds on RapNet elevated by 2% in July for a complete of 1.7 million and jumped 9% between 1 April and 1 August.

Because of this, Indian diamond producers diminished their manufacturing in July to realign their stock with present demand. The report said that these cuts will take six weeks earlier than it impacts stock ranges.

Moreover, tough diamond demand was sluggish. De Beers allowed sightholders to refuse items at its July sight and supplied 30% buybacks for sure classes. Gross sales have been estimated to be below $200m (£156.7m).

The report said that luxurious manufacturers additionally purchased fewer diamonds than in earlier years, creating weak spot in high-end items. LVMH’s jewelry and watch gross sales declined 5% yr on yr to $5.58bn (£4.37m) within the first half of 2024.

In response to LVMH, sluggish US bridal demand had put strain on Tiffany and Co.

Gross sales in China additionally remained weak as a result of sluggish financial system and as a consequence of customers shifting away from diamonds as an funding. The report highlighted that buyers with cash most well-liked to spend at abroad vacationer locations relatively than domestically.

Lastly, India’s jewelry trade expects the India Worldwide Jewelry Present (IIJS), which runs from 8 to 13 August, to sign robust home demand forward of Diwali.