"More of the same" continues to be the dominant sentiment of the diamond industry with the “wait and see” and "play it as it goes" emerging as the prevailing attitudes. This is not by choice.
Round diamonds are the most common and sought-after diamond shape in the world. Last week we stated that diamonds are polished into a variety of shapes and that the choice of shape is mostly one of taste, best use of the pre-polished rough diamond, and, occasionally, color. Historically, diamonds were polished only into rounds, and for good reason.
Dark Clouds Overhead
All large sales periods – the November-December holiday season, Valentine’s Day, Chinese New Year, Hong Kong and Basel trade shows – were disappointing to diamond traders. Worse, looking forward, sales projections by chain stores in the US, Hong Kong and China are poor. Most are reluctant to replenish their inventories and are adopting a “playing it as it goes” policy.
Crystal Clear – Shape (general)
Diamonds are polished into a variety of shapes. The choice of shape is mostly one of taste, best use of the pre-polished rough diamond, and, at times, color. Most call a diamond's shape "cut." However, since January 2006, the term “cut” has referred to the proportions of the diamond, its Cut Grade, and the term ”shape” has since been the term for the form or contour of diamonds.
MAJOR EVENTS – WEAK MARKET SENTIMENT
Two major diamond-marketing events have taken place over the course of the last two weeks - the Baselworld trade fair and the De Beers Sight (De Beers’ rough diamonds sales event). Both occurred under a cloud of weak market sentiment.