The mood in the diamond market is hesitant and there is a strong feeling of anticipation in the air. It’s hardly surprising when you consider the recent publication of a decrease in round polished diamond prices, coupled with Indian factories having reduced their production levels to reflect demand and rumours making the rounds that De Beers and Alrosa are set to reduce their prices.
Christmas is almost upon us. For those in the diamond and diamond jewellery industry, this is usually the busiest time of the year. Yet figures from key markets this week tell a different story.
The diamond market is quieter than hoped-for at the moment. Sales of polished diamonds in the run-up to Thanksgiving in the US proved disappointing and this has led to a decline in polished prices.
The diamond sector has a Volatility Index. Unlike the S&P 500 VIX (Volatility Index) it cannot be accurately measured. But it is very much felt in the gut feelings of diamantaires and it can become a fear factor.
Rough diamonds are selling if their price is correct. The conversation amongst Sightholders this week is that De Beers’ pricing of last week’s sight boxes has been a disappointment. Sightholders refused around 25% of their allocated boxes.