IDEX Polished Price Index Hits Lowest Level Since 2008

(IDEX Online) - Polished diamond prices suffered yet another blow in August, as the IDEX Polished Price Index fell by 2.87 per cent to its lowest point since January 2008.

It has now lost 26.6 per cent of its value since its post-Covid peak in March 2022, just before we began to feel the full impact of Russia invading Ukraine.

The combined effects of the war, spiraling inflation and interest rate hikes have seen the Index fall month by month ever since. 

There was, however, a notable recovery in 4.0-cts goods during August, as average prices rose by over five per cent. 

August's 2.87 per cent drop was worse than the 2.57 per cent drop in July, but marginally better than the 3.04 per cent drop in June, the most severe of the current decline. 

Having said that, the August graph below does show a marked acceleration in the decline during the last week of the month. 

De Beers' rough sales slumped to just $370m during August, the lowest level since March 2020, when the pandemic forced the suspension of regular sights. 

Sentiment globally remains weak and GIA, the biggest grading lab, has laid off a fifth of the workforce at its HQ in south California, a stark indication of the ongoing downturn.

India is predicting a 15 per cent drop in overall gem and jewelry exports this year as consumers hold onto their cash.

The Index is still in steep decline. It levelled during Covid but climbed throughout 2021 and until March 2022 when the Covid bubble burst and Russia invaded Ukraine. The Index has been dropping ever since.

Month-to-month prices fell by 2.6 per cent during August, their second biggest drop of the current decline. In July they were down 2.9 per cent after a couple of months of less severe falls (down 1.7 per cent in June, 1.9 per cent in May and 2.1 per cent in April).

Year-on-year prices for August hit yet another low, down 20.1 per cent, slightly worse than 19.9 per cent in July. Prices were down 18.9 per cent in June and 18.1 per cent in May. Year-on-year prices have been in decline since April 2022 and have been below zero since December.

Polished month-on-month prices kept on falling in August, with the notable exception of 4.0-cts good, which were up by 5.5 per cent. Otherwise, they were largely in line with July, although 3.0-cts did see a recovery, from a drop of 1.5 per cent to one of just 0.4 per cent.

Year-on-year prices for August fell sharply again, in line with expectations. All goods up to 2.0-cts were down by 20 to 25 per cent on last year's prices, with the sizes shown below all faring slightly worse in August than during July. Bucking the trend were 4.0-cts goods, with a drop of just 1.4 per cent, compared to 8.2 per cent in July.

Prices for most sizes shown below kept on falling in August, as they have been for more than a year, with the notable exception of 4.0-cts goods, which saw a significant uptick.