(IDEX Online News) – It is not clear if this is the turnaround that polished diamond wholesalers have been wishing for, but diamond prices have clearly been moving upwards recently. In March prices improved by 1.8 percent on average compared to February, according to the IDEX Online Polished Diamond Price Index.

 

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

 

Compared to March 2012, prices of polished diamonds are still low, down 3.3 percent year-over-year.

 

 

After an extended period of price declines through 2012, in December prices increased as holiday sales proved better than expected. In January, prices sagged, but since then started to rise.

 

March’s month-over-month increase follows a flat February and a 1.1 percent decline in January.

 

The Hong Kong jewelry show in early March was the main boost behind the increase in prices in the first quarter of 2013. Solid demand for a wide range of goods, some subsequently suffering from shortages, led to the current upward movement.

 

By size, all key round shape diamonds increased during the month except 5 carats, which declined 1.5 percent compared to February. In contrast, while most sizes increased by about 1.5-1.8 percent, 4 carat rounds jumped 4.5 percent month-over-month.

 

 

Prices of fancy shape diamonds also improved in March. One carat Princesses increased 1.9 percent with 1.5-carat Princesses rising 3.2 percent compared to February.

 

Year-over-year, polished diamond prices in March decreased for rounds. Prices fell some 4 to 11 percent, depending on the item. Once again, Princesses bucked the trend, increasing 15.8 percent for 1-carat goods, 12.9 percent for 1.5-carat stones and 9.4 percent for 2-carat items.

 

 

Outlook

Polished diamond prices have drifted lower since their peak in July 2011. While it is just beginning, the recent trend may signal a turnaround; however, there is a still a need for caution. . The continued economic hardships in many of the diamond-consuming markets may continue to have a cooling effect on luxury spending in the short term. In the long term, we expect polished diamond prices to keep rising, reaching their historical annual growth of about 4 percent.

 

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.