RapNet Diamond Index (RAPI) falls 4 percent in August
NEW YORK, September 8, 2011 – Certified polished diamond prices fell in August as cautious buyers reacted to economic uncertainty and Indian suppliers faced tight liquidity, the Rapaport Group said in a statement.
While trading is generally quiet during the summer months, dealers and retailers also delayed making large purchases while prices declined.
The RapNet Diamond Index (RAPI™) for 1.00 ct. diamonds fell 4 percent in August to 103.91. The 0.50 ct. category declined by 2.2 percent to 38.24 and 3.00 ct. dropped 5.4 percent to 371.58.
Rough trading in the dealer market was slow as Indian diamond cutters face liquidity issues, Rapaport said.
Premiums on mining company prices fell to near-zero with some goods selling at a discount.
De Beers increased prices for some items, while BHP Billiton’s spot tender prices fell by 15 to 20 percent, according to Rapaport.
According to the just released Rapaport Research Report, “Tentative Trading, Seeking Stability,” diamond trading was weak in August following the strong growth period of the first half of 2011.
Unease during the month was largely caused by rising concern about prospects for the global economic recovery — lingering apprehension about U.S. debt, slow U.S. and European economic growth,