Diamond Prices Firm After Supply Declines

Polished diamonds

Diamond trading was seasonally slow in December as the industry’s focus shifted to retail and as diamantaires took their end-of-year break. Sentiment received a boost from strong holiday e-commerce sales, the distribution of Covid-19 vaccines, and the US approval of a $900 billion coronavirus stimulus package.

Polished prices firmed as supply declined due to limitations on diamond manufacturing during India’s lockdowns. The RapNet Diamond Index (RAPI™) for 1-carat diamonds rose 2.3% in December and 5.8% for the full year.

RapNet Diamond Index (RAPI™)
December4Q 2020FY 2020
RAPI 0.30 ct.0.4%-4.7%0.2%
RAPI 0.50 ct.0.8%-2.3%12.1%
RAPI 1 ct.2.3%3.8%5.8%
RAPI 3 ct.2.5%7.0%3.7%

© Copyright 2021, Rapaport USA Inc.

The industry began 2021 with a healthier supply-demand balance than it had at any stage in the past five years.

The volume of 1-carat diamonds on RapNet in the D-H, IF-VS range — the categories the RAPI measures — declined 24% in the second half of 2020. The top 10% of diamonds in that category were selling at an average of 32% below the Rapaport Price List on January 1, 2021, compared to 37% below on July 1, 2020. The lower discount suggests that demand is stronger relative to the available supply.

Manufacturers are raising polished production in anticipation of steady first-quarter orders as jewelers and dealers seek to replace inventory they’ve sold during the holiday period.

Jewelers with solid e-commerce programs had a good season. Many off-mall independents also did well, as consumers felt safer visiting stand-alone stores than crowded malls and were driven to support local community businesses following the Covid-19 lockdowns. Independents without an effective online presence struggled.

US jewelry sales for October 11 to December 24 fell 4.3% year on year, according to Mastercard SpendingPulse. Online jewelry sales grew 45%.

There is some optimism for the year ahead even as Covid-19 continues to disrupt business activity. To ensure growth, the trade must intensify its efforts to engage with consumers via storytelling and improved omni-channel platforms while keeping supply in sync with prevailing levels of demand.

Source: Diamonds.net

Insuring Your Certified Diamonds Is A No-brainer

CDI Diamond Jewellery Insurance

Your diamonds are possibly the most valuable item you own. Valuable not just in monetary terms, but because of their sentimental value. It might be your engagement ring, a wedding ring, a pendant gifted by a grandparent or even your favourite set of earrings. These items come with a strong emotional attachment and it can be devastating when they are lost, stolen or damaged.

So, you’d be amazed at the statistics – 40% of diamond owners don’t insure their pieces. They then get incredibly angry at themselves when it’s too late and they’ve lost their special piece for whatever reason. Within this group, one-third consider their engagement ring to be one of the most expensive items they own among other investments like their home and vehicle. Yet they insure their house and vehicle every year, but neglect to consider their diamonds.

The alarming part is how often people find themselves in situations where their diamonds are at risk. The statistics are an eye-opener and should serve as a reminder if you haven’t yet insured your diamonds properly.

In 2015, Australia had the fifth highest rate of burglaries in the world. In 2017, there were 225,900 recorded burglaries in Australia – one every three minutes. Add to this a 2010 study that showed jewellery was the third most common item stolen in a home burglary, behind laptops and cash – and you would have to agree it’s not worth the risk. Theft is more common than you think and no one is exempt from such bad luck.

It’s also important to remember that your diamonds are vulnerable and are susceptible to damage. There are three different classifications a gemologist uses when assessing stones to determine their durability:

  1. Hardness
  2. Toughness
  3. Stability

Hardness is assessed by how easily the diamond can scratch. Toughness is judged by how well the diamond can stand up to breakage or chipping. Stability is measured according to how well the diamond can stand up to thermal changes. It’s worthwhile finding out how vulnerable your diamonds are, or at least keep in mind they’re not invincible.

And of course, there’s the risk that you could lose your special piece. Everyone assumes it will not happen to them, but that is optimistic and you can never be 100% sure of this – at home, or while you’re on holidays.

Some insurance gets murky when you’re out of the country and holidaying overseas. You believe you’re protected until you fly to Bali or Hawaii and suddenly you’ve been robbed or left something in the hotel room and your special piece isn’t covered.

With Certified Diamond Insurance, you can trust you are covered the moment you walk out of the jewellery shop. Just as importantly, you’re free to have your piece repaired or replaced at your chosen jeweller – and we guarantee your replacement will be the same if not better than the original piece. You’ll pay no excess if you ever need to claim, and you’re covered worldwide and at home. Which means whenever and wherever you need to travel, your diamonds are safe.

Don’t make the mistake of assuming it will never happen to you. Cover yourself, protect your diamonds properly, and relieve the stress should anything ever happen.

Source: CDI

MOST DIVORCEES HOLD ONTO THEIR OLD ENGAGEMENT RINGS

diamond ring

63% of the women are still holding onto their old engagement ring while dating

A new survey by Worthy.com, an online auction marketplace for pre-owned diamond jewellery, has revealed some interesting trends among American women who have and are going through divorce.

According to the survey, conducted among 1,700 female participants from across the country, 78% are already in dating mindset before divorce papers are signed. Even more interestingly, 63% of the women are still holding onto their engagement ring, and dating. 68% of the women feel “scared, but also excited and hopeful, while 40% feel confident” when dating.

Diamond engagement ring
Diamond engagement ring

90% of the women said that values, emotional availability, lifestyle, marital status and sexual compatibility were top priorities in a new companion.

According to the most recent Wedding Report, released earlier this year and based on 6,792 survey samples collected from January 1 to December 31, 2018, couples’ spending on weddings went down 4%, totaling $24,723 on average. Although most categories went down, jewellery-related spending remained relatively unchanged from 2017.

Average spending on engagement rings went down only 0.4% year-on-year, averaging $3,388 in 2018. Average spending on wedding rings/bands for her went slightly down (0.9%), averaging $775 in 2018. Average spending on wedding rings/bands for him remained almost flat (-0.2%), averaging $454 in 2018.

Source: israelidiamond