The Hallmark of Quality


Regal Imports News - JANUARY 2022

Rough and polished diamond prices are up and up sharply!

Rapaport calculates that rough diamond prices increased by 23% in 2021. They also estimate that well graded, top cut one carat polished diamonds increased by 5.3% in December and 17.4% over the full year of 2021, while three carat polished diamonds of the same quality increased 5.1% in December and 18.7% over the full year. Statistics from Edahn Golan conclude that overall polished diamond prices rose a whopping 23.2% last year.

I don't think it is necessary to list all the reasons that polished diamond prices are rising so dramatically, suffice it to say that I haven't seen such dramatic price changes in a long long time!

The polished price surge affects all sizes and qualities with the least increases happening in diamonds between 30 points and 90 points. Smaller diamonds under 15 points saw prices increasing by 5 to 10% in December alone. I predicted these increases in my last several broadcasts and I believe that we have still not seen the end of them.

Diamond wholesalers will have to increase their stock prices as they get a handle on the specifics of each change. At Regal Imports, we have been conservative and increased our pricing half way between what we calculate the changes to be. However, as we begin to replace sold inventory, we will have to make further changes to keep our pricing in line with new inventory.

I am not worried about the new prices slowing the pace of diamond sales. I think demand is strong and will remain so for the foreseeable future. I don't see this diamond boom as contrived in any way. It is simply a matter of supply and demand.

Retailers are generally very happy with diamond sales and are beginning the year building upon the success of last year. Demand is coming from all age groups as well as a pent-up demand for bridal jewellery. Engagement rings are returning to larger solitaire diamonds in simple and more traditional settings.

There has been a sharp rise in demand for laboratory grown diamonds. I do not see this as negative, particularly considering the type of boutique diamonds that we stock at Regal Imports. There is lots of room at the higher end of the diamond market for those consumers wanting top graded natural diamonds and there have always been other products in the jewellery market for those seeking jewellery that is, simply put, price sensitive. I see no conflict with the two products as long as consumers are completely informed.

The diamond industry has benefitted from shoppers purchasing closer to home and appreciating their health, families and the people around them. They have found a new appreciation for local business and craftmanship. Surprisingly, Internet sales are not as strong in jewellery as with other products. Consumers like the personal care that only a jewellery expert can provide.

Diamonds and diamond jewellery are going through a really good phase. Fine jewellery is presently, one of the highest-growth retail categories. I am as excited today as I have ever been and I see bright things ahead for our industry. This is not the time to hold back but to be creative, take more chances and grow with the flow.

Mel Moss