Caution is the word of the day when it comes to diamond prices at the moment, but if you will be needing a quality diamond for an upcoming jewelry design now may be the time to look. The latest rough sales have shown increases in prices so that means as they exit the cutting houses the prices for polished diamonds will rise as well. The markets for diamond jewelry remain soft and uncertain even with that rough sale prices rose.
As amateur jewelry designers begin buying higher valued gems like diamonds caution is advised. Be sure who you are dealing with, be sure to ask for full disclosure of the gemstone for enhancements and source. Beginners should never be scared away from trying to do diamond designs but they need to ask for resources and information about how to buy wisely
In its monthly price report released Tuesday, Rapaport said that polished diamond prices remained firm last month.
The RapNet Diamond Index (RAPI) for 1-carat GIA-graded diamonds rose for the fourth consecutive month, albeit very slightly (0.3 percent). Compared to a year ago, however, 1-carat diamond prices remain depressed, down 8 percent.
Prices for 0.30-carat and 0.50-carat diamonds also were up in February, 0.4 percent and 0.7 percent, respectively.
The RAPI for 3-carat diamonds slipped 1 percent.
Rapaport noted in its report for February, “Midstream Inventory Replenishment,” that the upturn in polished prices is due mainly to shortages in select categories of better quality diamonds, not growth in demand for diamonds at the consumer level. Retail demand in the Far East remains weak and dealers are looking to the United States for “encouragement” as sales here are steady, but jewelers remain cautious. There are lingering concerns about the economy and the volatile stock market, and there’s also the fact that consumers tend to be more frugal during election years, the report noted.
On the rough side of the market, both Rapaport and De Beers said that it continues to show signs of recovery as excess inventory, which kept manufacturers from buying in the second half of 2015 and caused them to cut back on production, works its way through the pipeline.
De Beers reported Tuesday that preliminary results for its second sales cycle of the year indicate that it moved $610 million in rough diamonds, up from $545 million in the first sales cycle of the year and more than double the $248 million in rough it was selling at the end of 2015. READ MORE…
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