According to the Rapaport monthly report for October 2014 "Buyer's Market", the prices for diamonds were influenced both by demand and by supply.
There was a noticeable growth in the supply of products on the market, primarily due to the fact that the Gemological Institute of America (GIA) continues to complete the work that has not been completed and is releasing more and more goods by the beginning of the holiday season. RapNet, Rapaport's diamond trading network, in September noted an 11 percent increase in the volume of diamonds registered on its trading floor.
At the Hong Kong jewelry and precious stones fair in September, there were many visitors, but buyers were looking for specific products to fulfill their orders, and avoided large purchases to replenish inventory. Suppliers, who reduced their prices, achieved good sales. The exhibition signaled that there is a good demand for stones weighing 0.5-0.9 carats certified by the GIA, but their profitability is low, while demand for stones weighing from 0.3 carats to 0.49 carats has decreased. Large diamonds from the expensive segment were sold poorly, and there was a general shift from stones with the characteristics of DF, IF-VVS towards stones of the worst color and purity of all sizes.
The rough diamond trade slowed in September after its active purchases in July and August. Manufacturers of diamonds increased output to prepare inventory for the Diwali season, which begins on October 23. In the secondary market, raw materials were sold at discounts from De Beers prices on the eve of the October site, which runs from 6 to 10 October. As expected, the October site will be relatively small, as De Beers, apparently, will maintain relatively stable prices before the end of the year, as prices in the secondary market are softening.
Suppliers of diamonds hope that the holiday season in the fourth quarter will improve the trade in diamonds and help alleviate concerns about liquidity. Nevertheless, at the moment there are no signs of a turnaround in the trading environment. Buyers feel that suppliers are under pressure, seeking to improve their financial flows, and, accordingly, require them to large discounts. After a weak third quarter, trade enters the season of holiday shopping in an environment that definitely plays into the hands of buyers.