October Certified Polished Diamond Prices Down on Low Demand

Rapaport reported that prices for certified polished diamonds sank 1.7 percent in October because trading volume did not meet expectations for this time of year. Retailers in the United States have been delaying holiday inventory purchases in part due to price uncertainty, while pre-Diwali demand in India was weak.

As quoted in the market news:

The Rapaport Monthly Report – October 2013, “Price Uncertainties,” noted that polished prices softened in October due to weak global demand and tight market liquidity. U.S. retail buyers are delaying inventory purchases for the holiday season amid persistent price uncertainty and diminished consumer confidence. The political stalemate in October over the debt ceiling weakened retailers’ Christmas expectations.

Indian diamond traders faced uncertainty prior to the Diwali festival that began on November 1 amid unconfirmed reports that the government may raise the import duty on polished diamonds from 2 percent to 5 percent. Initial reports about Diwali signal a slump in gold and diamond jewelry demand. Liquidity in India’s manufacturing sector is tight due to low profit margins and high rough prices with weaker domestic demand throughout 2013.

Click here to read the full Rapaport report.