IDEX ONLINE INDEX SHOWS POLISHED DIAMOND PRICES UP SLIGHTLY IN FEBRUARY
In its latest analysis of polished diamond prices published on IDEX Online, the IDEX polished diamond price index saw a slight rise. The Index began the month at 120.2 and ended at 121.1. A similar rise was seen on January.
On a month-to-month basis, February’s global polished diamond prices saw a decline of 0.3% over January. On a year-over-year basis, February’s average price showed a 2% decrease.
Since the middle of the year, polished diamond prices have declined, and the index “is at its lowest point for four years”. Since January 2013, there was a 9.4% decline to-date.
Diamond Prices by Size
Comparing prices during February 2017 to January 2017, “there were four declining categories and two risers: Diamonds of 0.5 carat, 1 carat, 1.5 carats and 2 carats fell, while 3 carat and 4.0 carat diamonds increased.
On a year-over-year basis, “there were five decliners and one riser”: the 4-carat category rose while all the others declined.
A long term analysis shows that “4-carat stones have shown the most price volatility, although 3-carat diamonds have displayed the steepest year-over-year decline since mid-2015”. From December 2015, “there has been relative price stability in 1-carat, 1.5-carat and 2-carat stones”.
IDEX says that “polished prices have continued a downward path seen from mid-2016” while “rough prices are increasing due to strong demand, thereby putting pressure on profit margins which are already very thin”.
The outlook quotes the results for De Beers’ second sales cycle of 2017 ($545 million) – lower than the first cycle, which raked in $729 million. “Although the February sale was lower”, says IDEX, “it nonetheless shows continuing robust demand for goods which is a surprise given the decline in polished prices”.