Prices of smaller goods, below one carat, continued to rise in December after increasing in November, responding to rising demand in the consumer market. Larger goods, however, which suffered from price declines in November, experienced a long-awaited revival, rising 1-1.5% in December, according to the Mercury Diamond Global Tracker™ (MDGT™). The MDGT™ index averaged 109.45 in December 2018.
A sharp drop in demand and a rise in inventories characterized trade in December. Polished diamond traders around the globe were feeling blue after retail sales of diamond jewelry failed to meet expectations.
As the year draws to a close, we at Mercury Diamond stopped to take a look at the state of polished diamond prices over the past year. We noticed that prices have been lingering for some time and decided to look at what some of the other diamond indexes in the market show. No surprise here, we all show pretty much the same scenario.
Familiar with the relationship status ‘It’s Complicated’?
That is a good two word description of the diamond jewelry holiday selling season so far. As you may recall, diamond jewelry sales were sluggish during the 2017 holiday season, but ended with a last-minute rush by consumers. That happened during the last two weeks of December.
Prices of smaller goods recovered in November, responding to rising demand. Larger goods, however, suffered from further price declines. The Mercury Diamond Global Tracker™ (MDGT™) averaged 110.1 in November 2018, down 1.30% from October. Polished diamond price increases are a typical cyclical trend in November, as holiday season purchases drive demand.