RAPAPORT PRESS RELEASE, July 2, 2024, Las Vegas… Diamond prices declined in June as sales dropped and inventories grew. Indian manufacturers reduced production, but sales fell at a sharper rate due to weak demand. This led to an oversupply and pressure to sell.
Synthetics continued to take market share from natural diamonds and will likely do so throughout 2024. Chinese diamond demand remains very weak as consumers turn to gold jewelry as a store of value. US retail sales were mixed in June. Indian jewelry demand, while healthy, saw a seasonal lull.
The RapNet Diamond Index (RAPI™) for 1-carat goods — reflecting round, D to H, IF to VS2 diamonds — fell 3.6% in June. This was a slightly gentler decline than in May. However, the drop in the 0.30-carat RAPI accelerated to 6% in June. The index for 0.50-carat diamonds fell 4.8%, and prices of 3-carat stones went down 2%. Prices for round, 1-carat, D to H, SI diamonds slid 0.5%.
The number of diamonds on RapNet rose 6% between April 1 and July 1, and now stands at 1.67 million. Indian manufacturers have continued producing polished to keep workers employed and maintain access to rough supply and credit lines.
The secondary rough market was quiet due to sluggish polished demand. De Beers’ 2024 rough sales through June fell 20% year on year to $1.95 billion. Some sightholders refused boxes that would result in losses. Rapaport expects De Beers’ revenue to continue to decline in 2024 due to competition from synthetics.
Rapaport believes synthetics will dominate the US bridal segment in 2024, accounting for over 50% of engagement-ring purchases. However, the synthetic bridal market will collapse in 2025 as their very low prices will make them unsuitable for engagement rings. Natural diamond demand will come back strong as consumers return to traditional engagement rings whose value is appropriate for the gift of marital commitment.
Media Contacts: [email protected]
US: Sherri Hendricks +1-702-893-9400
International: Avital Engelberg +1-718-521-4976
About the RapNet Diamond Index (RAPI™): The RAPI is the average asking price, in hundred dollars per carat, of the 10% lowest-priced round diamonds in each of the top 25 quality categories (D-H, IF-VS2, GIA-graded, RapSpec-A3 and better) offered for sale on RapNet® (www.rapnet.com). Additional information is available at www.rapaport.com.
About the Rapaport Group: The Rapaport Group is an international network of companies providing added-value services that support the development of ethical, transparent, competitive and efficient diamond and jewelry markets. Established in 1976, the group has more than 20,000 clients in over 120 countries. Group activities include Rapaport Information Services, providing the Rapaport benchmark Price List for diamonds, as well as research, analysis and news; RapNet, the world’s largest diamond trading network, with daily listings of over $8 billion; and Rapaport Trading and Auction Services, the world’s largest recycler of diamonds. Additional information is available at www.rapaport.com.