Rapaport Press Release: Diamond Prices See Modest Increase

1ct. RAPI +0.8% in November.

LAS VEGAS--(BUSINESS WIRE)--The diamond market continued to stabilize in November as holiday shopping began and lower rough supply reduced midstream inventories. Prices of rounds increased across all major categories for the first time this year.

The RapNet Diamond Index (RAPI™) for 1-carat stones rose 0.8% during the month. The 0.30-carat RAPI increased 0.3%, while the 0.50-carat category saw the strongest performance with a 1.2% rise. The index for 3-carat diamonds increased 0.1%. However, discounts off the Rapaport Price List remained high.

RapNet Diamond Index (RAPI^™)
	Index	November	Year to Date Jan. 1, 2023, to Dec. 1, 2023	Year on Year Dec. 1, 2022, to Dec. 1, 2023
RAPI 0.30 ct.	1,404	0.3%	-5.2%	-4.1%
RAPI 0.50 ct.	1,938	1.2%	-27.4%	-27.5%
RAPI 1 ct.	5,977	0.8%	-20.7%	-21.9%
RAPI 3 ct.	22,114	0.1%	-10.9%	-12.1%
© Copyright 2023, Rapaport USA Inc.

US dealers’ pre-holiday buying boosted the market. Retailers saw brisk sales over the Thanksgiving weekend. Diamond demand in mainland China remained slow. Hong Kong’s luxury market rebounded as tourists returned.

Rough trading was sluggish as manufacturers sought to reduce rough and polished inventories. India continued its two-month voluntary freeze on rough imports, which is scheduled to end on December 15. Factories in Surat extended their Diwali vacations due to weak demand. De Beers garnered just $80 million at its October sight — the lowest since the peak of the Covid-19 crisis in 2020 — after allowing 100% refusals.

The number of diamonds on RapNet has decreased 4.3% since July 1, reflecting seasonal demand trends and the drop in polished production.

Provenance became increasingly important as the natural-diamond industry competed with synthetics for consumers’ dollars. European Union member states, including Belgium, considered a proposal for banning Russian diamonds amid the war in Ukraine. The other Group of Seven (G7) governments are also likely to introduce sanctions on Russian stones in early 2024.

Consumers’ preferences for low-budget items will play a role this holiday season. However, as Martin Rapaport said in his November 21 consumer alert, some retailers are overcharging for synthetics. The holidays are off to a decent start, but the outcome for the industry will depend on whether or not consumers choose the real product.