Polished Diamond Price Index Stable - May 2019

This price report was written just as the Las Vegas gem and jewelry shows opened, with anticipation and excitement. However, diamond manufacturers and dealers participating in the shows said that while they were not expecting to realize higher prices, they were hoping that sales would finally pick up again. Of course, throughout the course of this calendar year, the diamond market has been uneventful and price developments across the board have remained rather flat. This can be observed, once again, in the Polished Diamonds Price Index for May 2019 that began at 123.55 and ended at 123.19. Like in the previous months of the year, price changes were minimal, except for rounds of three carats plus, where some price volatility occurred. 

Looking at the graph above, one can see that in the long-term, diamond prices continue to gradually but very slowly decrease since reaching a peak in mid-2018. Traders at the Las Vegas shows expressed optimism as to the increase in demand for half carats and up but had no proof or data to back that optimism up, yet. 

On a year-over-year basis, the month of May 2019 doesn't compare well to the same month in 2018. Five out of the six size categories reported underperformed. Diamonds of a carat and a half to two carats did somewhat better but that was offset by the dismal market performance of the three and four carat categories. The price reduction of the three-carat category is relatively recent, while like in previous months, the dramatic lower prices paid for four-carat stones continue to stand out, as is demonstrated in the graph below. Like in April, no other size category suffered such volatile a change.

• 0.5 carats = -4.3%
• 1 carat = -0.8%
• 1.5 carats = +0.5%
• 2 carats = -1.1%
• 3 carats = -6.0%
• 4 carats = -22.4%

Of course, when compared to the data of the previous month - April 2019 - diamond prices showed very little movement or changes. With the Las Vegas show starting as this report is written, expectations are the market will slowly pick up.  

Outlook

Like in the four previous months of 2019, it was difficult to generate any significant news about diamond price developments in May. Like in April, the diamond market was slow and performed not better than in earlier months.

However, the month May generated some important industry news headlines. The statements made by representatives of the US State Department following their meetings with industry leaders of the US gem and jewelry industry will have far-reaching effects and a long-term impact on the industry at large. The US State Department has made it crystal clear that it wants the gem and jewelry industry to provide transparency about the provenance of all materials used in fine jewelry and to provide verifiable, credible information about its sourcing. This includes diamonds. At JCK Las Vegas, Sarine, GIA and Alrosa locked into that requirement and each presented their programs to trace a diamond's origin.