(IDEX Online News) – Prices of polished diamonds depreciated in April, losing 1.5 percent month-over-month and 4.8 percent year-over-year, according to the IDEX Online Polished Diamond Index. The index averaged 133.1 in April.

 

The full analysis of the polished diamond prices is available to IDEX Online Research subscribers and IDEX Online members here.

 

April is traditionally a slow trading month among polished diamond wholesalers, and the month's softening prices can be, at least partially, attributed to that.

 

 

 

The Index declined despite rough diamond prices edging up and financing in the wholesale trading centers continuing to be an issue. Buyers' resistance to higher polished diamond prices, especially in the Far East, has a negative impact on polished diamond prices, mainly rounds, despite the economic need among manufacturers to increase prices.

 

In the 21 months since the diamond price index peaked in July 2011, the index declined 9.3 percent.

 

Compared to April 2012, the IDEX Online Polished Diamond Index declined 4.8 percent in April 2013. This is the tenth consecutive month that the index has declined year-over-year.

 

 

 

Apart from 4-carat rounds, the index declined for all key-size rounds on a year-over-year basis. On a month-over-month basis, the price index for 0.5-carat to 3-carat round goods declined in April as compared to March. Only the large 4- and 5-carat round diamonds increased.

 

Princess shape diamonds increased by a large single-digit on a year-over-year basis. However, compared to March of this year, the index for 1, 1.5 and 2-carat Princess shape diamonds declined during April, especially the 1-carat goods that enjoyed a revival in recent months.

 

Outlook

The short-term outlook remains lackluster. U.S. retailers are protecting price points and are resisting price increases, despite the recent decline in gold and platinum prices.

 

In the long-term, we remain confident that polished diamond prices will increase when consumer demand turns around and growth resumes, and as rough diamond supplies decreases.

 

The full analysis of the polished diamond prices is available to IDEX Online Research subscribers and IDEX Online members here. Click here for more information on how to subscribe or become a member.