IDEX Online Research: Polished Diamond Prices Remain Depressed in January

(IDEX Online News) – After falling sharply in early December 2014 and trending lower for the remainder of that month, polished diamond prices remained depressed in January 2015, according to the IDEX Index of Polished Diamond Prices. Diamond prices have not fallen to the current level since early 2011.

Polished diamond prices soared from very low levels in early 2011, peaked in July of that year and then weakened through mid-year 2012. At that point, polished diamond prices stabilized, and held mostly steady through early 2014.

In the first half of 2011 unprecedented demand from China and India, mostly a result of new jewelry store openings (China) and a shift from gold jewelry to diamond jewelry (India), resulted in a sizzling market and a price bubble. Once demand cooled, prices softened in November 2012.

By mid-2014, it appeared that polished diamond prices were finally rallying higher. However, in the third quarter of last year, prices suddenly weakened significantly. Polished diamond prices remained depressed in January 2015, with the IDEX Index at 124.4 for the month, a level we have not seen since February 2011. The graph above illustrates polished diamond prices for the past four years, with record peak prices in July 2011.

After being mostly flat in 2013, polished diamond prices appeared to be moving higher in the first half of 2014. However, in the third quarter of 2014, they began dropping; falling to a level we have not seen in about four years. The graph above provides a detailed close-up of polished diamond prices on a monthly basis for the past two years.

To see the full IDEX Online Polished Price Article, click here