The sentiment on the diamond market improved in February, and diamond prices rose, while rough diamond prices remained stable, Rapaport said in a press release. Diamond trade has intensified due to demand in the US and China, as jewelers began to replenish stocks of goods after the Christmas sales season and the celebration of the Chinese New Year. As a result, diamond dealers prepared with great hopes for the Hong Kong Jewelery Fair, which opened on March 3.
In February 2014, the price index RapNet Diamond Index (RAPI ™) for diamonds weighing 1 carat grew by 0.3%, while RAPI for smaller diamonds followed the growth trend established in 2013. There is a high demand for diamonds weighing 0.3-0.5 carats, accompanied by a GIA dossier, and the Gemological Institute of America (GIA) because of the extraordinary demand for services and the resulting delays in maintenance accumulate large reserves of stones.
Rapaport's monthly report, March 2014, entitled "Growing Confidence" (Rising Confidence) notes that positive sentiment prevails among the polished diamond producers, as polished prices have strengthened and profit margins have risen. The reserves of diamantaires are depleted, and liquidity has increased in the market, but market participants are concerned that banks will exert pressure on liquidity in the coming months.
Improved liquidity provided an increase in the volume of diamond trade in early 2014. As part of the February website, De Beers kept prices at the same level, and on the secondary market the boxes were sold with stable premiums. Particularly in demand diamonds were used, from which diamonds up to 1 carat of SI purity and below are produced.
Despite the optimistic sentiments of the market participants, all eyes are directed to the Hong Kong Jewelry Fair, which will assess how stable the positive trends will be and demonstrate the level of demand in the Far Eastern markets.