The IDEX Polished Price Index, published by IDEX Online, “declined steadily throughout April,” falling 2.2% monthly-over-month. The polished diamond Index rose 5.67% in January and 4.14% in February.
The Index reached a peak in March, then fell “more dramatically than at any other point in at least the last three years.” Its average value through April was 153.3, compared with 156.77 in March and 151.77 in February. Month-to-month diamond prices plunged 2.2% in April – the biggest monthly drop for at least four years. This follows four months of record increases, with a 6.2% peak in February. The Index fell 3.3% in March.
Overall, year-on-year diamond prices for key sizes “rose substantially during April,” but less than March for goods of all sizes.
According to IDEX’s analysis, “uncertainties over the war in Ukraine, sanctions on Russia and soaring inflation in the US have, collectively, had a more severe short-term impact than coronavirus.” it must be noted that Alrosa, which supplied almost a third of the world’s rough diamonds before February 24, “is now effectively barred from direct trade with many countries.” In addition, US and EU sanctions “may yet be extended to cover polished as well as rough, which would worsen an already difficult situation for manufacturers in India.”
Read the full analysis here
