IDEX Online Research: Polished Prices Soften 0.2% in November

(IDEX Online News) – Polished diamond prices softened in November as the wholesale sector of the pipeline sought a steady footing during the first half of the 2011 holiday season. The average asking price of polished diamonds was 0.2 percent lower in November as compared to October, according to the IDEX Online Polished Diamond Index.

The full analysis of the polished diamond prices is available to IDEX Online Research subscribers and IDEX Online members here.

The Index started at 142.7 at the beginning of November, slipping to 139.3 during the month.

The slip represents a moderating in the decline from prior months. November was the fourth month of consecutive price declines after they peaked in July when the month-over-month price increase was 5.6 percent.

The current price declines are viewed therefore as an easing of the inflationary price that has built up in the post-recession recovery period.

Underscoring this, year-over-year, polished diamond prices in November rose by 19.3 percent.

Source: IDEX Online

The price of key diamonds sizes changed differently during the month. Half carat, one-carat and three-carat diamonds declined 2.1 percent, 0.7 percent and 1 percent month-to-month price, respectively.

Five-carat diamonds posted a solid price increase of 2.1 percent in the period.

Outlook

American retailers are reporting that jewelry sales in the holiday season to-date are better than expected and much better than in 2010 holiday season. Coupled with decreasing rough supplies and increasing demand from new markets, diamond prices are likely to continue their rise in the long-term.

In the short- to mid-term, prices may fluctuate, impacted by worries over Europe’s economy, bank financing, exchange rates – especially the Indian Rupee vs the U.S. dollar and normal cyclical shifts in demand.

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.