Polished Prices Stable

Certified polished diamond prices were stable in April although trading remained weak. India is under pressure as the new protectionist 2% polished diamond import tax has drastically reduced polished imports and exports. Demand in the consumer markets was stable but wholesalers and retailers continue to maintain low inventory levels. Buyers are focused on commercial-quality diamonds. There is continued improvement in demand for fancy shape diamonds. Price conscious consumers are moving to fancies as their prices are much lower than rounds. Price differentials encouraged cutters to manufacture rounds instead of fancies in 2011, resulting in a current shortage of fancies.

In April, the RapNet Diamond Index (RAPI) for 1.00 ct. polished diamonds fell 0.2%. The 0.3 ct. category increased by 0.4% while 0.5 ct. rose 0.5%. RAPI for 3.00 ct. diamonds increased 1.2%. During the first four months of the year, RAPI for 1.00 ct. diamonds fell 2.9% and was at about the same level as it was one year ago.


source: rapaport.com