PRESS RELEASE, October 5, 2011, New York: Certified polished diamond prices fell in September as dealer trading softened and concern rose about the global recovery. The diamond industry closed a weak third quarter that reflected liquidity difficulties in the cutting centers and ongoing volatility in the financial markets. Economic and political developments continue to fuel caution.
In September the RapNet Diamond Index (RAPI) for 1.00 ct. polished diamonds fell 4.5 percent to 99.57. The 0.50 ct. category declined by 4.5 percent to 36.47, and 3.00 ct. dropped 0.9 percent to 168.04.
The third quarter of 2011 has been one of decline for diamond prices following a positive first half of the year: RAPI for 1.00 ct. diamonds fell 8.6 percent, while 0.5 ct. stones declined 7.5 percent, and 3.00 ct. diamonds dropped 5.8 percent.
According to the just released Rapaport Research Report, “Third Quarter Jitters”, polished trading is now being driven by retail demand to satisfy current orders, with limited trading among dealers. Stretched Indian liquidity continues to impact trading with those cash-strapped Indian suppliers willing to discount. Similarly, rough dealer trading is at a near standstill with De Beers goods being offered at deep discounts. While Chinese demand for diamonds and diamond jewelry continues to drive growth, the European debt crisis will have an impact globally.
[componentheading]About the RapNet Diamond Index[/componentheading]
The RAPI is based on the best asking price in hundred $/ct. for the top 25 quality 1 ct. round diamonds (D-H, IF-VS2, RapSpec-2 and better) with GIA, HRD or AGS grading reports offered for sale on RapNet – Rapaport Diamond Trading Network. The RAPI is provided for various sizes. www.rapnet.com has daily listings of over 700,000 diamonds valued over US$5 billion and 6300+ members in over 74 countries.
[componentheading]About the Rapaport Group[/componentheading]
The Rapaport Group is an international network of companies providing added value services that support the development of free, fair and competitive global diamond markets. Established in 1978, the Rapaport Diamond Report is the primary source of diamond prices and market information. Group activities include publishing, research and marketing services, internet information and diamond trading networks, global rough and polished diamond tenders, diamond certification, quality- control, compliance, shipping, and financial services. Major activities of the group include the development of markets for Fair Trade Diamonds and Jewelry as well as the creation of diamond futures markets. Additional information is available at www.rapaport.com.