IDEX Online Research: Polished Price Declines Decelerating, 1 Ct -1.1%

(IDEX Online News) – Polished diamond prices were largely stable in September, according to the IDEX Online Polished Price Index. Overall, average prices increased 0.1 percent during the month compared to August; however, from start to end, prices declined 0.6 percent.

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

Source: IDEX Online Research

 

Two price increases in September – ahead of the Bangkok Gems & Jewelry Fair, the other during the Hong Kong Jewellery Fair – helped push up the average September figure.

Year-over-year, prices in September declined 6.5 percent. Although a decline, the rate of decline in diamond prices is decelerating, possibly signaling a turnaround in price trends – though it is still too early to say.

Source: IDEX Online Research

Round cut 1 carat diamonds lost 1.1 percent of their price in September compared to August, and 11.5 percent year-over-year. Round cut diamonds lost ground on a year-over-year comparison, however compared to August, 2 and 5-carat rounds increased modestly, providing further proof that at the end of the tunnel we can see a glimmer of light.

Source: IDEX Online Research

Fancy cut diamonds continue to outperform rounds. Average prices of 1 carat Princess cut diamonds increased 5.1 percent in September compared to August and an impressive 10.7 percent compared to September 2011.

Two carat Princess cut goods gained 1.6 percent month-over month and 8.1 percent year-over-year.

Although the Hong Kong show did not provide the sharp U-turn hoped for by many, some interest existed in the market, as seen with demand for Princess cuts. That said, overall demand is still subpar, and the wholesale loose sector of the industry is still waiting for an awakening in demand from China.

Outlook

The short-term outlook remains cautious, with an eye to fourth quarter demand to start showing soon. This is expected to start in China in October, and spread to the U.S. later in the year.

Long term, demand continues to increase, outpacing supply and leading an increase in prices of polished diamonds.

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.