Rapaport issues April 2011 Research Report “Positive & Cautious”
(NEW YORK) - Certified polished diamond prices rose in April but at a slower pace as caution set in amongst dealers seeking stability after concerns that trading may have over-heated in the previous month. Ongoing political instability in the Middle East and global economic uncertainty causing high inflation and volatility in commodities markets, have added to the cautionary mood.
In the just-released Rapaport Research Report “Positive & Cautious,” average asking prices on RapNet increased 2.4 percent during April 2011. Half caraters were up 3.5 percent, one carats up 2.4 percent and three carats remained flat. Prices of small, inexpensive diamonds at Rapaport Auctions continued to strengthen during the month. Average prices on RapNet were 19.6 percent above levels seen at the end of April 2010.
Rough prices continued to rise, particularly for large, top quality rough. Spot tender prices also increased although at a slower pace. Supply remains in line with 2010 as production grew by about 3 percent in the first quarter of the year. Manufacturers still appear to be speculating on rough by holding goods in inventory rather than filtering it through for manufacturing, resulting in polished shortages.
Dealers and manufacturers took a slight breather in April but have maintained a positive short-term outlook for the market. As a result, the slight lull may be a temporary calm before the storm as expectations are high for strong jewelry sales in May and positive Las Vegas shows. While trends in the dealer market in the past two months may justify the positive outlook, the same increases are still not evident at the consumer level, despite the apparent uptrend.