After polished diamond prices declined sharply in September, they took an additional step downwards, though it was not particularly significant. The Mercury Diamond Global Tracker™ (MDGT™) averaged 111.55 in October 2018, down 0.17% from September. While demand for loose diamonds remains slow, we believe traders hardened their stance on price as much as possible in anticipation of rising demand.
According to a National Retail Federation (NRF) forecast, 22% of Americans intend to buy jewelry during the winter holidays. That is a nice figure, but it represents a decline from the 23% that were forecasted to buy jewelry during the winter holiday period of 2017. Not a large decline, even within the statistical error, yet worth noting.
A slowdown in trade in most diamond centers is having an impact on prices of many items. The market is suffering from an oversupply of small goods that is having an effect on financing, rough diamond purchases and, of course, prices as the market is heading to Diwali.
Demand is falling and dragging prices down with it, leading to a decline in trade. That is the central theme of the recent past. Miners, countries and traders are all reporting a decline in activity. A worrying trend throughout the diamond pipeline.
Polished diamond prices declined sharply in September, eroding all the gains made during the year. The Mercury Diamond Global Tracker™ averaged 111.74 in September 2018, down 1.85% over August. This is the deepest monthly price decline since May 2015, when prices plunged more than 4%. Polished diamond trade was very limited during the month due to a series of Jewish and Hindu holidays.