Diamond prices boosted by shortages, holiday demand


According to the Rapaport Group, shortages in certain categories helped to boost polished diamond prices in the month of December.

The RapNet Diamond Index (RAPI) for 1-carat, Gemological Institute of America-graded diamonds was up nearly 2 per cent in December. The RAPI for 0.30-carat and 0.50-carat stones also increased by 5 per cent and 3 per cent respectively, while the RAPI for 3-carat diamonds fell by 0.1 per cent.

Even with the end-of-year recovery in diamond prices, the RAPI for 2015 is down across the board. This rings especially true for half-carat and 3-carat diamonds, which fell by 15 per cent this year.

In its report for January, Rapaport noted that shortages inhibited orders for certain goods, particularly those of higher-quality diamonds up to 2 carats. In 2016, the shortage remains—suppliers have sold off higher-quality stock, and manufacturers in India have had limited polished production in the past year due to an over-supply of diamonds in the middle of the pipeline and high rough diamond prices. CJ