In an interview with Reuters, Varda Shine, CEO of DeBeer’s Diamond Trading Co. announced their expectations for high demand in rough diamonds for the coming year – particularly from the avid buyers of luxury good from China and India.
“In the next few years we won’t see as aggressive price growth as we have seen in the last two years, but we still believe that prices are going to continue growing over the next 5-10 years,” says Shine.
And while industry insiders are predicting long term value, the short term price fluctuations of diamonds are proving troublesome.
“At the loose diamond show, I was told by numerous diamond dealers that this is not the best time to sell diamonds because many dealers believe the high premiums for diamonds are artificially elevated at the moment. Many are worried that there will be a price correction sometime soon,” says Lee Josephson, Vice President of Raymond Lee Jewelers.
This uncertainty poses a paralyzing catch-22 for both the buyers and sellers at the Hong Kong Jewellery & Gem Fair. Buyers, fearing a decrease in price, don’t want to part with their diamonds, should they lose any of their worth. Buyers don’t want to buy a diamond at a premium now, only to see diamond prices decrease significantly in the short term.
According to Josephson, “A show as large as this one – the largest in the world – that has enough negative feedback about diamond prices could cause a price correction…Still, high quality triple excellent made diamonds are hard to find and continue to sell well. We will see how hungry the buyers are at our show for jewelry, watches and diamonds.”
The Hong Kong Jewellery & Gem Fair is currently ongoing and runs through the end of this week.
According to IDEX, via National Jeweler, diamond sales have been mostly middling this week in Hong Kong:
“Prices were and still are the biggest issue. Some buyers clearly had open orders to fulfill and were willing to pay to meet those demands. Otherwise, prices are a major obstacle, with manufacturers holding onto their high prices to protect their margins, which have been hurt by rising rough prices. Buyers, on the other hand, understand that some manufacturers have liquidity issues and are therefore more willing to be flexible with prices.”
Liz for Raymond Lee Jewelers, your source for jewelry industry news.
- September Hong Kong Jewellery & Gem Fair: Rapid Reporting from Raymond Lee Jewelers (raymondleejewelersblog.com)
- Rapid Reporting: Raymond Lee Jewelers at the September Hong Kong Jewellery & Gem Fair (raymondleejewelersblog.com)
- DeBeers is Moving Diamond Trading from London to Botswana (raymondleejewelersblog.com)