IDEX Online Research: Polished Diamond Prices -1.1% in JanuaryFebruary 04, 13
(IDEX Online News) – Polished diamond prices softened in January after their moderate increase in December. Prices declined 1.1 percent following lukewarm demand for diamond jewelry in the holiday season and expectations that retailers will restock slowly.
The full analysis of the polished diamond prices is available to IDEX Online Research subscribers and IDEX Online members
The IDEX Online Polished Diamond Price Index averaged 132.9 in January, down 4.2 percent year-over-year and 1.1 percent compared to December. With the exception of the temporary increase in December, polished diamond prices have been on a moderate downward trend since August 2011.
Growth in demand for diamond jewelry during the holiday season was in the mid single percent in the
The expectation for a weak holiday season, and the lower demand prior to it, resulted in very limited trade all the way up the diamond pipeline, resulting in the recent price declines.
The disappointment from the holiday results are just. Consumers are fussy and choose to spend their discretionary income on non-diamond items at a growing rate. During a time of economic uncertainty, this is harmful. Therefore, while the overall economic mood is cautious, retailers and their suppliers need to find inroads to consumers' hearts.
This is possible, even in the current market. Year-over-year, the rate of price declines is slowing, as the following graph shows, indicating that consumers have the initial disposition to buy diamond jewelry. To support this trend, more marketing is needed.
By size, prices of round diamonds declined in all key weights in January compared to December, except for round half-carats. Year-over-year, polished diamond prices in January were down for all key round diamond sizes.
Continuing to generate interest for buyers by offering a lower price alternative, 1 carat Princess shape diamonds are beating the downward trend. Compared to December, the average price moved up 0.5 percent, increasing a very impressive 6.3 percent year-over-year.