The price of diamonds reported a mixed month in August, as polished inventory increased with steady manufacturing and sluggish demand.
The RapNet Diamond Index (RAPI) – from the Rapaport Group – found the price of 1-carat diamonds fell 0.8% in August, while the price of 0.30-carat was flat. The price of 0.50-carat and 3-carat polished diamonds both increased 0.2%.
The report said diamond markets are conservative with buyers selective and price-sensitive, while manufacturing profits are under pressure as polished production increases before Indian factories close for Diwali on 30 October.
Steady rough demand is enabling mining companies to reduce inventory built up over the last year. This is expected to slow over the coming months as polished inventories are set to increase, although the number of unique diamonds listed on RapNet rose 21% since the start of the year.
The report added that the trade is “deeply concerned” about weak diamond demand following slow trade during the summer.
It advised that large investments in marketing are required to boost consumer demand during the upcoming holiday season.