Diamond prices boosted by shortages, holiday demand

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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

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