Polished diamond prices increased in November, despite a slowdown in trading as Indian liquidity dried up and manufacturing shut down for Diwali.
The latest RapNet Diamond Index (RAPI) from the Rapaport Group sentiment improved as the month began, with stock markets rallying to record highs on Thanksgiving weekend (28 Nov) and the dollar strengthened after the surprise election of Donald Trump as US President.
The price of 1-carat, GIA graded, increased by 0.5% when compared with the previous month, while the price of 0.30 and 3-carat diamonds grew 0.5% and 1.2%, respectively. Meanwhile, 0.50-carat diamonds were the only category to record a decline – falling 1%.
The report said polished diamond buying is restrained as Hong Kong jewelry sales plunged and China remains weak with jewelers requiring less inventory. US retailers are also managing with lower stock as pre-season third-quarter inventory was below last year’s levels.
Rapport said, with relatively positive expectations for the holiday period, retail inventory is projected to diminish in December.