Rapaport Press Release: Diamond Prices End Year with Decline
LAS VEGAS--(BUSINESS WIRE)--Jan 3, 2023--
Diamond markets were quiet toward the end of December as wholesalers took vacation between Christmas and New Year. Major dealers were satisfied with the holiday season but remained cautious about their short-term prospects.
Polished prices continued to decline in most categories. The RapNet Diamond Index (RAPI ™ ) for 1-carat diamonds fell 1.5% during the month and 10.7% for the full year.
RAPI for 0.30-carat goods rose 1.2% in December. The volume of 0.30-carat, D to H, IF to VS diamonds on RapNet dropped around 60% during 2022, with the lower supply contributing to the price increase in November-December.
RapNet Diamond Index (RAPI ™ ) | ||||||||||
December | 4Q 2022 | 2022 | ||||||||
| RAPI 0.30 ct. | 1.2% | -1.9% | -7.7% | |||||||
| RAPI 0.50 ct. | -0.1% | -5.8% | -10.8% | |||||||
| RAPI 1 ct. | -1.5% | -8.0% | -10.7% | |||||||
| RAPI 3 ct. | -1.4% | -5.1% | -2.8% | |||||||
© Copyright 2023 by Rapaport USA Inc. |
The midstream held historically high inventory in December. There were 1.77 million diamonds on RapNet as of January 1 — the same as a year earlier but 46% more than on January 1, 2020. Suppliers reduced prices to offload less-popular goods and raise liquidity.
Manufacturers kept polished production low. That fueled concern for post-holiday restocking, as there have been fewer newly manufactured stones available than usual. Many expect De Beers to reduce its rough prices in January to stimulate demand, especially after prices on the secondary market decreased in the fourth quarter.
Polished trading was sluggish due to the seasonal lull, the lingering economic uncertainty, and the slowdown in China. Although China eased its Covid-19 lockdowns last month, another outbreak stifled the recovery ahead of the January 22 Lunar New Year.
US jewelry sales fell 5.4% year on year in November-December, according to Mastercard SpendingPulse. General retail grew 8% as consumers sought a mixture of gift products and experiences over the holiday period. Consumer confidence also rose as the outlook for inflation and employment improved, The Conference Board reported.
Jewelers are not rushing to buy, and the trade has muted expectations for the post-holiday inventory replenishment that typically occurs in January. After the continued price declines of December, dealers remain unsure whether market conditions will carry on the downward trend of 2022 or return to growth in the year ahead.
View source version on businesswire.com:https://www.businesswire.com/news/home/20230103005324/en/
CONTACT: Rapaport Media Contacts:media@rapaport.com
US: Sherri Hendricks +1-702-893-9400
International: Avital Engelberg +1-718-521-4976
KEYWORD: UNITED STATES NORTH AMERICA NEVADA
INDUSTRY KEYWORD: JEWELRY NATURAL RESOURCES LUXURY RETAIL MINING/MINERALS
SOURCE: Rapaport
Copyright Business Wire 2023.
PUB: 01/03/2023 08:56 AM/DISC: 01/03/2023 08:56 AM
http://www.businesswire.com/news/home/20230103005324/en