After suffering a persistent decline for over 18 months, the IDEX Polished Price Index has finally experienced a positive shift, going up 1.06% in November. This, according to IDEX Online, suggests that the diamond industry may be witnessing early signs of recovery, spurred by heightened consumer demand during the holiday season.
Several factors contributed to the rebound, including India’s voluntary ban on rough imports, supply chain constraints upstream, continued flexibility from miners, and a pre-Diwali surge.
0.5-carat and 3-carat diamonds saw increases of 2.0% and 1.6%, respectively, reversing a trend of decline since March 2022 and indicating a potential turnaround in prices. November’s rise follows a 1.6% decline in October, a significant improvement from the just over 3% drop in September, which marked the largest monthly decrease during the current crisis.
While month-to-month prices experienced a marginal 0.1% decline in November, the contrast with the 2.75% average from July to October suggests a potential turning point.
Year-on-year prices showed a slight improvement, with November prices down 19.9%, compared to 21.6% in October. Despite a mixed picture in month-on-month prices, the overall trend indicates potential stabilization, especially for smaller goods.
Read the full analysis here.
