Diamond Gems Weekly - September 9.
There’s something about a short-term fix that is oddly appealing. It provides comfort, restores belief and confidence that everything will be alright. It’s short-term satisfaction even though we know it may not last.
That’s kind of how I view the diamond market at the moment. Major rough sales were cancelled in August-September to give manufacturers an opportunity to reduce their polished inventory levels, and there is a sense that the market is stabilizing as the fourth-quarter holiday period approaches.
But will the temporary restriction of supply re-align the market in a sustainable way? We have seen this movie before.
>>> I explore this question in the latest video on my YouTube channel: Withholding diamond supply only works if it is accompanied by…
>>> Rapaport reported a Slow Diamond Market in August, with its flagship 1-carat RAPI price index now down 18.3% since the beginning of the year. Polished inventory levels grew 4% between July 1 and September 1, the company said.
>>> Meanwhile, India’s trade bodies – the Gem & Jewellery Export Promotion Councill (GJEPC) and the Bharat Diamond Bourse (BDB) – urged the industry to look on the bright side in a letter sent to their members. They’re seeing reduced polished inventory resulting from limited rough supply, lower manufacturing and strong August sales, among other factors. Again, I ask, is it cyclical or sustainable?
>>> As for this week, I’m keeping my eye on the VicenzaOro show taking place from September 6 to 10, as well as The international Watch and Jewelry Guild Miami Show from September 9 to 10. Christie’s is hosting its Jewels Online auction through September 11. And in terms of announcements, it doesn't get much more impactful than Signet Jewelers, scheduled to report its fiscal 2Q results on September 12.
So, in the words of the GJEPC and BDB, there’s much to look forward to. Let’s hope these developments signal a long-lasting positive upturn.
Image: Entrance to the VicenaOro show. (Credit: VicenzaOro).
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