RAPAPORT PRESS RELEASE, 5 September 2023, Las Vegas… The diamond market weakened in August as economic challenges persisted and synthetics increased their market share. The likelihood that G7 governments will soon impose stricter source disclosure rules to squeeze out Russian goods also created uncertainty.
The RapNet Diamond Index (RAPI™) for 1 carat diamonds fell 4.7% in August. The 0.30 carat RAPI also fell by 4.7%. Both were the worst performances since the peak of the Kovid-19 crisis in April 2020.
The index for 0.50 carats plunged 8.6% – the biggest drop for any month since RAPI records began in 2005 – and 3 carats fell 2.1%.
The market was even tougher for stones of lower colour and clarity than the RAPI, with the declines reflecting weak retail sales in the US and China, as well as competition from lab-grown stones. The industry is approaching the holidays with trepidation.
Round shapes lost more value than fancy shapes. Fancy shapes usually trade at a discount to rounds, but at the time of publication the Pears price list was matching rounds in seven categories. The square cushion market cooled as production increased and demand fell.
Indian manufacturers maintained polished production at around 40-50% of capacity. Submissions to the Gemological Institute of America (GIA) fell, prompting the laboratory to lay off around 20% of the workforce at its Carlsbad, California headquarters.
Supply of rough fell in line with weak demand for polished. De Beers’ August sales fell 42% year-on-year to $370 million. Okavango Diamond Company earned $48.5 million in the same month, down 55% on July.
Both retail and wholesale trade in China remained sluggish as the country’s economy slowed. Exhibitors at the upcoming Jewellery & Gem World Hong Kong show are expecting relatively subdued trading. India’s domestic jewellery market saw a rise in sales of polished under 1 carat as the wedding season got underway.
