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20 June 2011
» Record Polished Prices, Soar Ahead of HK Show
(June 20, 11, 10:22 Edahn Golan)
(IDEX Online News) – The IDEX Online Polished Diamond Price Index set a record Monday, crossing 142.25, the highest level the Index reached since its introduction in July 2004.
Diamond prices have been rising sharply in the first half of the fiscal year, especially so in the second quarter, as the graph below shows.
Polished diamond prices are rising as rough diamond prices continue to increase and consumer demand is unabaiting. The strong rally started in early March, ahead of the Hong Kong March show, which was later described by many participants as "fantastic."
Prices continued to rise until the Basel show, pausing on the first two days when traders felt that the show is not matching their expectations. That quickly changed when a day later rough diamond prices at the DTC Sight were hiked, sending polished prices up again.
Since March, prices continued their upwards movement, as traders are reassured again by good business at the recent Las Vegas trade fair.
Last week De Beers once again hiked prices of their rough, leading some traders to buy polished on a speculative basis, anticipating further growth of polished prices.
Next week the June Hong Kong trade fair will open and the conventional wisdom is that business will be good there too, as the Chinese and Indian markets are on a steady and continues growth path.
The industry views these trends as positive signs for a successful November-December holiday season, and therefore expects prices to keep rising for another few months.