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Press release content from Business Wire. The AP news staff was not involved in its creation.

Rapaport Press Release: Diamond Prices Firm After Supply Declines

January 5, 2021 GMT

LAS VEGAS--(BUSINESS WIRE)--Jan 5, 2021--

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.

 

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%

© 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.

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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.

For in-depth diamond price, supply and demand data and analysis, subscribe to the Rapaport Research Report here.

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View source version on businesswire.com:https://www.businesswire.com/news/home/20210105005437/en/

CONTACT: Rapaport Media Contacts:media@diamonds.net

US: Sherri Hendricks +1-702-893-9400

International: Alex Shine +1-718-878-5138

Mumbai: Prashant Bhojani +91-97694-66855

KEYWORD: NEVADA UNITED STATES NORTH AMERICA

INDUSTRY KEYWORD: BRIDAL NATURAL RESOURCES LUXURY RETAIL MINING/MINERALS

SOURCE: Rapaport USA Inc.

Copyright Business Wire 2021.

PUB: 01/05/2021 04:35 AM/DISC: 01/05/2021 04:35 AM

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