COVID-19 restrictions temporarily halt fancy color diamond trade
Due to the COVID-19 pandemic, for the first time since its inception in 2015, the Fancy Color Research Foundation (FCRF) will not publish the Fancy Color Diamond Index (FCDI) for Q1 2020.
The FCRF had concluded the quarterly data collection process from its data suppliers and learned that the volume of transactions conducted in this quarter was not sufficient to establish accurate market pricing data for the majority of fancy color diamond categories. Contrary to the great recession of 2008, this economic crisis is characterized by a complete logistical lockdown, with global restrictions that have caused retailers, shipping and other industry logistics to be completely blocked. Miri Chen, FCRF CEO explained, “This situation prevents the conveyance of diamonds from sellers to buyers regardless of fancy color market prices, while the index methodology is based on data compilation derived from a minimum volume of transactions per category. Under these circumstances, the FCRF advisory board has concluded that the integrity of our price discovery process is compromised, and has decided not to present pricing data for this quarter.”
FCRF Chairman Eden Rachminov went on to explain, “The unprecedented government restrictions, as a result of COVID-19, has brought fancy color diamond trading to a temporary halt. Cargo flights are not operating, logistical centers are closed and the stores at Place Vendome, New York and Hong Kong are on lockdown.” Mr. Rachminov added, “We are seeing orders in the pipeline that cannot be fulfilled due to these limitations. We fully expect trade to resume later in 2020 and the pricing data will be available when trade becomes possible again.”