(IDEX Online News) – In February, the IDEX polished diamond price index saw a slight rise. The Index began the month at 120.2 and ended at 121.1.

 

The rise last month followed a similar one in January.

 

 

Diamond Prices Show Multi-Month Decline

 

Polished diamond prices have declined since the middle of last year. The index is at its lowest point for four years as the graph below illustrates.

 

 

The graph of polished diamond prices since January 2013 shows a 9.4-percent decline to-date.

 

On a month-to-month basis, February's global polished diamond prices saw a decline of 0.3 percent over January.

 

 

On a year-over-year basis, February's average price showed a 2.0-percent decrease.

 

 

Diamond Prices by Size Decrease

 

On a month-to-month basis – comparing prices during February 2017 to January 2017 – there were four declining categories and two risers. Diamonds of 0.5 carat, 1.0 carat 1.5 carats and 2.0 carats slipped, while 3.0 caraters and 4.0 caraters increased.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

On a year-over-year basis, there were five decliners and one riser. While the 4.0-carat category rose, all the others declined, as can be seen in the graph below.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Over the longer term, the general trend is that 4-carat stones have shown the most price volatility, although 3-carat diamonds have displayed the steepest year-over-year decline since mid-2015, as the graph below shows. From December 2015 onwards, there has been relative price stability in 1-carat, 1.5-carat and 2-carat stones.

 

 

Outlook

 

Polished prices have continued a downward path seen from mid-2016. Meanwhile, rough prices are increasing due to strong demand, thereby putting pressure on profit margins which are already very thin.

 

The second De Beers sales cycle of 2017, held in February generated provisional sales of $545 million, following the first Sight of the year in January which posted sales of $729 million. Although the February sale was lower, it nonetheless shows continuing robust demand for goods which is a surprise given the decline in polished prices.