IDEX Online Research: Polished Diamond Prices Nearing Pre-Crisis Levels
March 02, 11
(IDEX Online) – Prices of polished diamonds increased dramatically in February, rising 1.5 percent compared to January and 8.5 percent year-over-year, according to the IDEX Online Polished Diamond Price Index. The rise brought average prices to 4 percent short of their record level in August 2008.
Emphasizing a mixture of optimism and retailers willingness to yield to wholesalers’ pressure, the average price increased by about 2.9 percent between February 1 and February 28, the sharpest price increase since the recovery cycle began nearly a year ago.
At the end of February, the IDEX Online Polished Price Index stood at 124.5. The Index peaked at a record 128.9 during August 2008, just as the global economy was about to drop into a major recession.
Source: IDEX Online
Several factors drove the price increases. Continued pressure by manufacturers to increase polished prices to maintain their margins have finally succeeded; a need to finally renew inventories after the decent holiday season, growing in emerging markets – mostly China, continually rising rough diamond prices and the upcoming Hong Kong trade show for which expectations are high.
Prices Up for All Sizes of Polished Diamonds
Prices of 1-carat, 4-carat and 5-carat goods rose on average more than 2 percent in February compared to January. Year-Over-year, 3 carat goods climbed the most, 24 percent on average. Other large items were not lagging far behind, with prices of five caraters growing 16 percent, four caraters adding 13.6 percent to their price and 1 carat goods increasing by 10.4 percent.
Source: IDEX Online
Outlook
On March 1, the IDEX Online Index jumped to 124.8, up 0.3 points from the previous day and it appears ready to maintain the trend seen in February of steady price increases.
The full analysis of the polished diamond prices is available to IDEX Online Research subscribers and IDEX Online members here. Click here for more information on how to subscribe or become a member.