engagement – The Diamond Certification Laboratory of Australia (DCLA)

Diamond Prices Firm After Supply Declines

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™)
	December	4Q 2020	FY 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%

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

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:

Hardness
Toughness
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

More Brides Buying Their Own Engagement Rings

US women increasingly buy engagement rings for themselves, and spend more on them than their partners do, De Beers said Monday in its annual Diamond Insight Report.

The proportion of engagement rings financed solely by brides rose to 14% in 2017 from 11% in 2015 and 7% in 2013, according to the report. The trend reflects growth in female purchasing power, one of several social changes impacting the segment De Beers refers to as “commitment jewelry.”

During the four years ending 2017, grooms’ average outlay on engagement rings dropped 13%, while brides’ spending rose 19%, De Beers noted. In 2017, brides who reported buying the ring themselves shelled out an average of $4,400, while grooms spent $3,300, the company said.

“This emphasizes that growing purchasing power among women is a factor to be reckoned with in the commitment space, and not only when it comes to self-purchasing of diamond jewelry,” the company noted.

The 2019 Insight Report focuses on how consumers view love and diamonds amid changing attitudes to relationships. While marriages rates have declined in the US and engaged couples are waiting longer to tie the knot, “love remains a constant,” and consumers are buying diamonds in a wider variety of ways to symbolize it, De Beers explained.

Commitment jewelry — diamond engagement rings, and diamond wedding bands or rings for women — has retained its important place in the market, with just over 70% of US brides acquiring a diamond engagement ring.

However, the global value of men’s gifts of diamond jewelry to women before or after a wedding now exceeds the value of the engagement- and wedding-ring market. Women in the US who cohabit with their partners now account for 10% of the female diamond-jewelry market. Meanwhile, more than 70% of people in same-sex relationships view diamonds as important for celebrating life’s special events, the report continued.

Those four trends — commitment jewelry, “love gifting,” cohabitation and same-sex couples — are the focus of this year’s edition of the De Beers research. Consumers are still attracted to diamonds as an emblem of love, but are approaching the product in new ways that mirror those contemporary modes of living, the company argued.

“While diamonds are still seen as the ultimate symbols of love, the diamond industry must focus on continuing to offer jewelry, brands and retail experiences that meet the modern consumer’s desire for individual products and experiences that reflect their own unique love story,” said De Beers CEO Bruce Cleaver.

Source: Diamonds.net