Regal Imports News
I present you with two diamond pricing graphs. The first one is from Rapaport. It traces the three-month performance of one carat natural diamonds. As you can plainly see the decreasing price of these brilliant cut diamonds is levelling off. The second chart is from Idex, and it traces the performance of all natural diamonds for the month of October. Again, you can easily see that the decreases are flat lining!
Well! What a pleasant surprise! ... At last! For the first time in 18 months, diamond prices are leveling off. Are diamonds going to hit their lowest price point right before Christmas? I’m not a sooth-sayer but it certainly feels like it.
Diamonds are one of the only products that deflated during this most recent inflationary period. It seems logical that they are due for a reversal. What I can say, for certain, is that over the last few months, I have been feeling much more optimistic.
When other commodities were becoming much more expensive, diamonds bucked the trend and lost a goodly percentage of their value. Retail caution, during this period of diamond deflation, has led to a cut back in buying downstream, this should end as diamonds start on a gradual path to recovery.
The Indian cutting industry have initiated a plan to assist in the diamond recovery process. Miners and manufacturers have agreed on implementing a moratorium on the purchase of all diamond rough for the months of November and December.
Many retailers are promoting the idea that now is one of the best times to purchase a natural diamond. I think they are correct, and the time is right for some positive sentiment and promotion.
I am not the only one feeling good about diamonds right now. Avi Krawitz feels that in the next few months, diamond manufacturers, wholesalers and retailers will work their way through their excess inventory. He states that demand will return because the buying public “ultimately seeks value, authenticity and meaning in their jewelry and luxury purchases.”
Public recognition of the existence of laboratory grown diamonds spread very quickly, however, they appear to be dying on the vine. In September, Edhan Golan stated that laboratory grown diamonds had broken another record!! “One carat rounds fell below $200 in wholesale trade”.
It won’t take the consumer much time to, once again, prioritize the emotional and luxury propositions presented by natural diamonds. As consumers become more informed, they will discover more truths about the differences between natural and mass-manufactured products.
In summary, natural diamonds are one of the most regulated and transparent of any natural mineral. They have managed to maintain and retain their long-term legacy as an accurate descriptor of the term ‘precious.’
So, with all this good news, I hereby eliminate all negative thoughts from my personal diamond world and declare that the future really does not look too bad!
And that is the Regal Imports News for November and I thank you very much for watching.