The Rapaport Group reported in its communiqué dated January 7, 2010 that that polished diamond prices went up by 10.3% in 2010 following a decline of 7.6% in 2009. It reported that prices for 0.50ct increased by 4.1%, 1.0ct by 12.3% and 3ct by 24.6%. Prices at Rapaport Melee Auctions also increased by 57%.
Rapaport estimates that average prices for rough increase by about 21% in 2010.
US holiday sales meets expectations and dealers hope that the positive demand will extend to the Far East in view of the coming Chinese New Year on February 3, 2011. Cutters concerned mining companies may raise rough prices following strong 4Q rough sales. Israel’s 2010 polished exports +48% to $5.8B, rough imports +51% to $3.8B. Investors start 2011 bullish as Dow reaches two-year high (11,722.89)
The group also reported that:
1) Large, high quality diamonds did well in 2010, as did small, inexpensive diamonds.
2) With more than 600,000 cutters, India now dominates diamond production, assisted by easy banking credit and a powerful local jewelry market that is growing at about 25 percent a year.
3) Diamond producers’ stockpiling and cuts in production created shortages that resulted in speculative pricing and reduced manufacturer profits.
“While the U.S. recovery will take time, the global diamond markets are well positioned for growth in 2011,” said Martin Rapaport, chairman of the Rapaport Group. “The trade is advised to enjoy the ride as long as interest rates remain low, avoid speculation and maintain liquidity.”
Note: Last year we sold a number of 1ct and above solitaire diamonds to be set as wedding and engagement rings. Our clients have been calling us expressing their appreciation.