The IDEX Polished Diamond Price Index - June 2019

As expected, in June, polished prices remained flat for the most part, showing a slight decline of less than half a percent. Reports from diamantaires who participated in the Las Vegas gem and jewelry shows and the June Hong Kong fair, readily admitted that polished diamond sales had been disappointing, with prices or larger goods remaining under significant pressure. Looking at developments in a broader perspective, it is clear that, especially in the diamond trade's leading market, both jewelry manufacturers and retailers are hesitant to take risks and are therefore keeping their diamond purchases to a minimum.

As in earlier months, diamond prices continue to decline very slightly, as demonstrated by IDEX's Polished Diamonds Price Index for June 2019 that began at 123.13 and ended at 122.52. Among the price categories analyses and reported, the - mostly negative - excitement was observed in rounds of two carats and up, where prices continued to be volatile.

From the graph below, it is obvious that diamond prices in general continue to be relatively stable, showing an overall decrease of 1.5% over the 4-year period.

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In June, overall price developments were rather uneventful. Price developments in rounds remain few and sporadic, with prices of stones in sizes under 2 carats remaining subdued. The important 1.00-1.24 carat group, a significant market gauge, remained stable, showing a 0.6% decline compared to the previous month. 

On a year-over-year basis, June 2019 continued the trend that was recorded throughout the first half of 2019. Like in May, five out of the six size categories continued to underperform, with some categories declining even further than in May. As during previous months, prices of polished diamonds of two carats and up continue to be volatile when compared to other sizes. 

• 0.5 carats = -5.0%
• 1 carat = -1.0%
• 1.5 carats = +0.4%
• 2 carats = -1.9%
• 3 carats = -5.7%
• 4 carats = -2.4%
• 

Diamond prices, as was relayed in the numerous conversations and by the presentations held at the above-mentioned industry trade shows, will only improve as consumer desire for natural diamonds, as opposed to their lab grown counterparts, will be rekindled.

Outlook

Looking back at the first half of 2019, diamond price developments were rather flat and there are few indicators of how the second half of the year will fare.

At the same time, the diamond, gem and jewelry market in general is subject to geo-political developments, such as the ongoing trade war between the US and China. On a positive note, a delegation of Jewelers of America (JA) members made its annual advocacy visit to Washington, D.C., meeting with key US lawmakers to discuss trade and tax concerns. They also explained to legislators that the newly imposed tariffs would have a negative impact on jewelers, especially those that import jewelry products and materials from China. Recently, U.S. Trade Representative (USTR) has listed $300 billion in Chinese products that could be subject to tariffs of up to 25 percent when imported into the U.S. These products include stones and jewelry such as natural and cultured pearls, diamonds, other gemstones, gold and silver jewelry parts and gold necklaces.