Global polished diamond prices fell in December on both a monthly and yearly basis, according to the IDEX Polished Diamond Price Index.

 

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Global polished diamond prices dropped by 3.3 percent in December compared to November 2014, while prices were 3.5 percent lower in December 2014 compared to December 2013.

 

With consumer demand uncertain in both developing and mature markets, diamond prices are likely to languish near term.

 

After peaking in July last year, polished diamond prices have seen some ups and downs, falling sharply for three months, then rising in November, followed by a sharp fall in December, as the graph below illustrates (red circle).

 

 

On a year-to-year comparison, global polished diamond prices have been bouncing around for the past several months.

 

On a month-to-month comparison – December 2014 versus November 2014 – polished diamond prices dropped by 3.3 percent.

 

At the end of December, the IDEX Index stood at 125.6, down abruptly from 132.2 at the beginning of the month.

 

Overall, polished diamond prices fell more than 3 percent in December on a month-to-month basis, 1-carat diamond prices fell by a meaningful 5.2 percent.

 

On a year-to-year comparison, diamond sizes of 1-, 1.5- and 2 carats posted a decline while other sizes above and below these key sizes were higher in December 2014 versus December 2013.

 

Outlook: Too Much Uncertainty

With diamond demand soft in both mature and developing markets, there is nothing to fuel higher prices. Jewelry sales in the US market, which is by far the world’s largest consumer of polished diamonds, have bounced around significantly since mid-year, and are growing much more slowly than other retail product categories. Other global markets are also showing similar trends.

 

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