The latest Rapaport Monthly Report indicates that diamond prices mostly decreased in October. The RapNet Diamond Index (RAPI™) for 1-carat diamonds fell 2.3% in October. The index dropped 4.3% in the first ten months of the year.
In addition, diamond markets were quiet in October with wholesale businesses closing for the respective Chinese, Jewish and Indian holidays. Trading slowed as larger US holiday orders were already filled. Market sentiment improved after the September Hong Kong show but polished trading remained sluggish and inventory levels relatively high.
The report speaks of an expectation of moderate US jewelry sales growth this Christmas, relative stability in China but weakness in Hong Kong, while reports signal steady gold sales in India during Diwali. Finally, holiday jewelry sales are unlikely to stimulate a sustainable rise in diamond trading and polished prices are expected to remain under pressure for the rest of 2016 and into 2017.
