Diamond prices rebound amid pre-holiday demand in November

In November 2024, diamond prices saw an upward trend due to pre-holiday demand and a decline in polished production. This shift halted the negative trajectory that had persisted for the previous eight months. The RapNet Diamond Index (RAPI) reflected these changes where 1-carat diamonds experienced a slight increase of 0.1%. In contrast, smaller diamonds, specifically 0.30-carat and 0.50-carat stones, observed more substantial rises of 1.6% and 1.4% respectively. However, larger diamonds, like 3-carat stones, faced a decrease of 0.3%, indicating a mixed performance across different sizes. This price movement was significantly influenced by inventory levels, with a noticeable drop in the availability of round, D, and internally flawless diamonds in smaller sizes, which contributed to the price increase. The US market witnessed stable holiday demand from wholesalers, although sales for VS2 to SI2 diamonds were mixed, conveying a sense of caution in the industry. The demand was particularly buoyed by the Indian market, where retail preferences showed strength, especially for smaller diamonds. The recent reopening of Indian polishing factories post-Diwali also aided in stabilizing the market. Additionally, De Beers took strategic measures by reducing rough diamond prices by 10% to 15% at its December sight to stimulate demand, though sightholders noted that profitability remained a concern. The prices at tenders were reportedly around 10% lower than De Beers', indicating a competitive market landscape. Traders expressed uncertainty regarding the sustainability of the trend beyond the holiday season, particularly with India’s polished production levels still on the path to normalization. The overall trade sentiment improved following a rally in the US stock market, fueled by the election of Donald Trump as president and rising expectations for luxury spending. On another note, industry players in major diamond trade centers like Antwerp, Dubai, and India initiated discussions to establish a $65 million fund to support the Natural Diamond Council. Meanwhile, De Beers launched a holiday marketing campaign emphasizing their long-standing diamond slogan, shifting focus towards category marketing to navigate the cyclical nature of the market. This combination of factors has set a cautiously optimistic tone within the diamond industry moving into the holiday season.