(IDEX Online News) – Once again, global polished diamond prices rose sharply in July, continuing a trend that began earlier this year. The IDEX Online Global Polished Diamond Price Index hit a new record level of 146.7 for July, based on average prices during the month.

 

Polished prices in August appear to be even higher, with the IDEX Online Index at over 147 during the first couple of days of the month.

 

The full analysis of the polished diamond prices is available to IDEX Online Research subscribers and IDEX Online members here.

 

Here are highlights of prices for polished diamonds during July:

 

·        The IDEX Online Global Polished Diamond Price Index averaged 146.7, a record level well above any prior periods.

 

·        Polished diamond prices were up by 5.6% compared to June, based on the average prices for both months.

 

·        Prices rose 2.2% between July 1 and July 31. At the beginning of the month, the IDEX Online Index stood at 144.2; it finished at 147.4 at the end of the month.

 

·        Polished diamond prices were up a dramatic 25.0% versus July of 2010.

 

·        Prices of polished diamonds one carat and smaller showed the greatest gains during July. This is notably different from prior months, when price increases were driven mostly by larger diamonds.  

 

·        Polished diamond prices were up 21.9% for the first seven months year-to-date in 2011.

 

·        The IDEX Online Index stood at over 147 at the beginning of August, and it has shown no signs of retreating.

 

The graph below summarizes polished diamond prices based on the IDEX Online Polished Diamond Price Index for the past twenty-four months.

 

Source: IDEX Online

 

Polished Diamond Price Outlook: How High Is Up?

As long as rough diamond prices continue to rise, and as long as consumer demand remains strong, IDEX Online Research believes that polished diamond prices will continue to increase.

 

As long as demand at the consumer level remains strong, diamond prices are headed higher. However, we urge caution: price cycles are like ocean tides – they rise and they fall.

 

Polished diamond prices historically rise rapidly early in a recovery cycle – which began near the end of the first quarter of 2010 – and then increase at a slower pace, in line with the long term annual increase of 3-4%. We haven’t seen any moderation in the pace of price increases, but it will likely come one day.

 

The full analysis of the polished diamond prices is available to IDEX Online Research subscribers and IDEX Online members here. Click here for more information on how to subscribe or become a member.