Since April 2009, the average wholesale price of 1-carat round diamonds rose by 12.3%. Not a whole lot, however this figure is somewhat misleading. Along the way, prices were as much as 82% higher than in April 2009, falling to just 6% above the April 2009 levels.
The Las Vegas trade shows – JCK, Couture, Luxury, and AGTA – were active and positive this year, a clear departure from past annual June trade shows held in Las Vegas. The annual pilgrimage to the city was engulfed with a positive expectation by diamond traders, American retailers, and jewelry wholesalers. While not an exaggerated optimism, or ungrounded feeling that everything is going to be all right, it was an understanding that demand is there, prices are right, and people want as well as need to do business.
Prices of most round-shaped polished diamonds increased in May, according to the Mercury Diamond Global Tracker™ (MDGT™). The few exceptions were the larger goods, 5-carats and above, and the thirds (0.30-0.39 carats). The rising prices continue the trend of firming up of the polished market. With the exception of a small decline in March, polished diamond prices have improved almost across the board in every month in the past six months. This is clearly a trend.
Last Tuesday, De Beers announced that it will be launching a new brand of fashion jewelry containing laboratory-grown diamonds (LGD). The initiative, called Lightbox Jewelry, had an immediate ripple effect, reverberating throughout the diamond pipeline, from miners to retailers. The magnitude of the announcement cannot be overstated. It is an earthquake.
A sharp drop in demand was reported in May, as the diamond market slowed down due to increasing supply, and buyers waiting to see the outcome of the Las Vegas trade shows next week.