Polished diamond prices surge in first half 2011
NEW YORK, July 6, 2011 – Certified polished diamond prices maintained their strong uptrend in June as U.S. buyers fought to keep pace with Far East competitors, Rapaport said. While some price resistance is apparent, the outlook for the second half of the year remains strong.
The RapNet Diamond Index (RNDI) for 1.00ct diamonds rose by 7.4 percent in June to 109.17, 0.50ct increased by 13 percent and 3.00ct grew by 8.2 percent. The RapNet Composite Index increased by 8.4 percent to 179.96 during the month.
During the first half of 2011, the RNDI for 1.00ct stones increased 34.3 percent, with 0.50ct up 37.2 percent and 3.00ct up 31.6 percent. The RapNet Composite Index™ rose by 32.5 percent during the past six months.
Rough prices continue to rise and Rapaport estimates that average rough prices have increased by about 30 to 35 percent in the first half of the year.
According to the just released Rapaport Research Report entitled “Half Way There,” diamond prices were buoyed by Far East demand as Chinese and Indian buyers set the tone at recent trade shows in Las Vegas and Hong Kong.
At the same time, U.S. retailers continue to increase their inventories as they begin to prepare for the end of year selling season.
The first half of 2011 proved to be a positive period for the diamond industry, but dealers are concerned that the pace of growth might not be sustainable as rough prices may be overheating.
Furthermore, the U.S. economy continues to be sluggish and may be entering a more difficult period as the Federal Reserve ended its quantitative easing program.
