Diamond trading is once again starting to regain traction, according to the latest data from diamond group Rapaport.
Its latest report revealed that polished prices were stable in May despite “minimal” trading, with business limited to online platforms.
The latest RapNet Diamond Index for 1-carat diamonds also rose 0.2% during the month, but has dropped 8.3% since the beginning of the year.
According to the group, the slowdown in jewellery retail is affecting the rest of the market. While jewellery stores have reopened in many US states, foot traffic remains down and riots over police brutality are “also creating concern”.
It noted that Hong Kong has seen a return of diamond trading, with some demand stemming from China, though concerns are reportedly mounting over renewed protests following the latest Chinese security laws.
Nonetheless, Rapaport said that markets in India are partially active again, while bourses in Belgium and Israel are operating under new health and safety guidelines.
In addition, the report said that the diamond industry is beginning to rethink its marketing message, moving to “highlight diamonds as a symbol of values and emotional connections as people emerge from isolation”.
It cited that the Natural Diamond Council (NDC), formerly known as the Diamond Producers Association (DPA), has an opportunity to “re-engage with younger consumers in an authentic and dynamic manner that is appropriate for today’s tough market conditions”.
Rapaport said: “Jewelers have enough inventory to satisfy short-term demand, at least until the holiday season.
“They are expected to focus their promotions on bridal, as well as classic diamond jewelry like solitaire necklaces and tennis bracelets.”
It added: “Manufacturers are trying to reduce supply. Miners’ inventories have grown during the shutdown as rough sales have slumped.
“Mining companies are offering more goods on their digital platforms as travel restrictions remain in place. Some are relocating their sales to Antwerp while southern Africa and India remain on lockdown.”