As a result of the third quarter of 2014, the index of prices for small diamonds (Rapaport Melee Index, RMI) fell by 6.8% to 129.32 points, Rapaport said in a press release. At the same time, the current value of the index is 2.6% higher than the corresponding figure in September 2013 (125.99 points).
Diamond trade in the third quarter, as expected, slowed, and prices fell against the backdrop of a deterioration in the liquidity situation among producers, caused by a slowdown in sales and a reduction in the volume of bank lending.
The suppliers of diamonds were ready to reduce prices in order to improve the flow of funds and reduce the amount of stocks. Suppliers hope that in the fourth quarter the situation will improve during the holiday season, which will reduce concerns about liquidity problems. However, there are still no indications of a drastic change in the situation in the trading environment. Buyers understand that suppliers are in a difficult situation, in which they need to increase cash inflows, so they are trying to get higher discounts. After a weak third quarter, trade in diamonds enters the holiday season in an environment that clearly encourages buyers.
"Against the backdrop of recent diamond and jewelery exhibitions in Hong Kong, the results of which were above the pessimistic expectations, the market momentum and prices have slightly increased compared to the slow summer, despite the fact that the levels of trade and liquidity are still not high because of the new year, we expect a surge in sales in November, when the wholesale market will reopen after the Jewish and Indian holidays.The demand in the Far East is relatively sluggish, while at the same time it remains stable in the US and we expect good in terms of trade Christmas holiday season, "- said director of international trade transactions Rapaport Group Eyzies Rapaport (Ezi Rapaport).