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For the diamond industry, the end of 2018 was an uncertain counterpoint to the year’s strong start.
Rapaport’s latest diamond index indicates the year’s second half brought with it a softening of diamond prices, driven by factors including the U.S./China trade war, tighter credit in India, and growing consumer demand for lab-grown diamonds.
All four size categories included in the index (0.30 carats, 0.50 carats, one carat, and three carats) experienced price declines in December and in the year’s second half. The largest drops affected 0.30-carat stones, whose prices slid 9.9 per cent for the half and 3.9 per cent for the month.
Despite its declines for the month and second half, the one-carat category grew in price year-over-year, with a 0.7 per cent rise supported by strong trading in the first half. A year-to-year increase was also observed in 0.50-carat diamonds, with prices spiking 2.6 per cent.
For those looking to achieve improved results in 2019, the company points to a number of suggestions from its latest Rapaport Research Report, “The Next Diamond Decade.” These include strategies aimed at modernizing the trade and adapting its approach to consumers.
Rapaport recommends suppliers improve their ability to satisfy selective demand and shorter delivery turnaround times. It also indicates industry-wide compliance with banking and reporting standards, efforts to shift toward traceability, and improved customer engagement (e.g. through implementing omnichannel platforms) will help stimulate growth.
