Engagement Ring

MARKET OVERVIEW: WHAT DIAMONDS ARE US CONSUMERS BUYING TODAY?

A market overview published by diamond research and data firm Edahn Golan reveals some interesting trends about consumer diamond purchasing habits in the US. Their analysis is based on a presentation given on October 20, 2016 at the Bharat Diamond Bourse in Mumbai on behalf of NPD, a retail metrics research firm in the US.

 

For example, in 2015, based on data collected from nearly 4,000 specialty jewelry retailers in the US, the total value of sales of natural polished diamonds was $14.98 billion. 3.67 million carats of diamonds were sold at an average value of $4,078 per carat. The total cost of polished diamonds purchased by American specialty jewelry retailers was $8.71 billion, averaging $2,370 per carat, meaning an average retail margin was 42%.

 

When comparing the trading activity during the first seven months of 2016 to the January–July period in 2015, total cost of goods purchased by retailers fell 8.6% to $3.97 billion, and the average value of wholesale purchases softened 0.6% to $2,421 per carat.

 

At the same time, the total value of polished diamond sales declined by 7.1%, and the volume of sales fell 8% to 1.64 million carats.

 

Another interesting trend is the shape and size consumers prefer. According to Edahn Golan, round-shape diamonds represent more than 71% of all diamonds sold. Trailing this cut is princess and then far behind are ovals and cushions.

 

A third trend is the number of branded diamonds purchased by consumers, which has increased from less than 5% share of total diamonds sold by specialty retailers in January 2015 growing to more than 7% in recent months.

 

Finally, sales of lab-grown diamonds have increased by 230% between January 2015 and January 2016.

 

For the full article click here

 

 

By Edahn Golan

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