Price hike a Hype?

G-color

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H-Color

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average increase 5.0% since January 2004 for F, G, H; 1.0-1.49 ct; GIA; VG/VG, VG/G, G/G; 57-62.5% Dpt; 53-58% Tbl

2.0 - 2.99 ct range. F color. Average increase since January 2004 for VVS2, VS1, VS2 and SI1 is 7.3%. Note, price increase is higher for high clarity goods.

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2.0 - 2.99 ct range. G color. Average increase since January 2004 for VVS2, VS1, VS2 and SI1 is 5.8%.

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2.0 - 2.99 ct range. H color. Average increase since January 2004 for VVS2, VS1, VS2 and SI1 is 6.5%

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For comparison - major stock indexes

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Metals. Comparing to platinum, diamonds prices look steady...

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Wow Leonid, THANKS!!!

Though from the charts it seems that diamonds in '04 were playing catch up as they dipped in price in May '03.

Also, seems the greatest gains were in larger stones.

Is this because of demand? i.e. more people wanting this size.

Or, is the demand the same & supply tighter?

The simple answer would be both. But, in this case I want the *definitive* answer.

Average 1, 2, and 3 ct (for you, F&I )

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Interesting. Partly the reason for the thread is that the vendors have been talking in geeky diamond bespeak. Several mentions have been about the shortage of rough for larger stones & higher clarity/color stones. Your chart shows some concrete examples of how this is translating into the consumer's world.

I understand about the shortage of rough. But, I wondered about demand. Granted this is a diamond board; but, I'm seeing quite a few larger stones being traded, as noted in many posts/pics. MUCH more than a few years ago. Just an observation.

There is a price hike for one simple reason....I am buying a stone. If you'd like a prediction of any other price hikes, natural disasters, blackouts, locusts, plagues, etc., pls email me and I will give you my schedule and a list of important dates coming up for me! :0

By the way...Rapaport raised his list price again today. The areas affected were:

Rounds

2ct. D-M, IF-VS2

3,4,5ct. D-M, IF-SI2

Rap also states, "2ct. and larger goods scarce, encouraging dealer demand and firm pricing."

More, that is hysterical! I wonder if we're related? LOL I too see to have that kind of luck. BTW, Leonid, great info. Love the charts. They make it much easier to "see" what's happening. Thank you so much.

Shay

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On 5/14/2004 10:09:05 AM moremoremore wrote:

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There is a price hike for one simple reason....I am buying a stone. If you'd like a prediction of any other price hikes, natural disasters, blackouts, locusts, plagues, etc., pls email me and I will give you my schedule and a list of important dates coming up for me! :0----------------

This is freaking great! Truly funny...

Diamond prices aren't really going up any faster now than they did in all the years preceeding the events of 9/11 it is just more apparent now because there hadn't been any real price increases following 9/11 until recently so it is coming as a bit of a shock. The reality is that from a historical perspective, diamonds have had an average increase of about 15% per year...

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... The reality is that from a historical perspective, diamonds have had an average increase of about 15% per year...
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NiceIce, I'm affraid that a little steep. According to Rapaport Diamond Report, January 2003, 10-year price increase for 1 ct rounds in 1992-2002 was about:

D IF..... 6%
F VVS2.. 23%
G VS1... 31%
I SI1....13%
K SI2....11%

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On 5/18/2004 7:58:00 AM leonid wrote:

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... The reality is that from a historical perspective, diamonds have had an average increase of about 15% per year...
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NiceIce, I'm affraid that a little steep. According to Rapaport Diamond Report, January 2003, 10-year price increase for 1 ct rounds in 1992-2002 was about:

D IF..... 6%
F VVS2.. 23%
G VS1... 31%
I SI1....13%
K SI2....11%

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Okay, we should have said "on average"... Do the math:

6%
+23%
+31%
+13%
+11%
~~~~~
= 84%
/ 5 years
~~~~~
= 16.8%

So we actually recalled the average a bit low...

No. Wrong math. The numbers above are for TEN years. You should say: less than 3% a year.

Leonid

Are those persents off the Rap sheet or are your numbers prices to the consumer?

Rank Amateur:

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Are those persents off the Rap sheet or are your numbers prices to the consumer?
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% on the plots are real prices, not Rapaport.

Cannot say about charts published by Rapaport.

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On 5/18/2004 12:45:53 PM leonid wrote:

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No. Wrong math. The numbers above are for TEN years. You should say: less than 3% a year.
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Ha! We're stupid

Update for June 2004. Average prices for 2ct and higher increased.

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Diamond prices are definitely increasing, anybody that buys diamonds on a regular basis will confirm that fact. We have been advised by ALL of our suppliers who are direct sight holders for the three primary distribution pipelines: DTC (London) Rio Tinto (Canada) and Alrosa (Russia) that we might very well be paying "list" price and possibly higher than list prices for the dimaonds which we often sell below list by the end of the year! Let's hope that the market doesn't increase that much in such a short period of time, but it seems like the companies which are in control of the distribution of diamond rough are set on implimenting some pretty substantial price increases over the next six months or so. As we understand it, this is an attempt to "strengthen the market" by reducing the number of middlemen in the distribution chain between the DTC, Rio Tinto and Alrosa and the retail counter. Many of the polished re-sellers who we have known for years aren't able to negotiate prices any better than we are as we are all now on direct status with the cutters... So where five or six years ago it was common for a diamond to pass through the hands of several "wholesalers" or "brokers" before entering our level of the market, the distribution chain now goes from the DTC, Rio Tinto or Alrosa direct to the cutters and direct to sellers like ourselves... Relatively speaking, a "few" polished middlemen still exist, but their number is dwindling every day... Many are trying to enter the internet in an attempt to stay in business, but most of them lack the customer service qualities required to make it with the general public because they are used to working directly with the trade and their attitude tends to rub the public the wrong way... Others try to get jobs as sales people for the very same cutters who they used to purchase diamonds from... Beyond the confusion that the rapid implimentation of these price increases is causing with the public as they try to figure out whether prices are actually increasing or whether they are simply being paying more profit, there is a lot of confusion being felt within the industry as to what the true intentions of the mining companies is... Only time will tell, we're glad that we're positioned on the internet / retail side of the distribution chain because we considered going to the middle of the pipeline about ten years ago and we'd be paying dearly for it now if we had

Interesting how the 1.00 - 1.49 goods are actually down a bit. How much of this is internet sales pressure?

Rank Amateur:

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Interesting how the 1.00 - 1.49 goods are actually down a bit. How much of this is internet sales pressure?
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I think it's a fluctuation. Here is an update for today.

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August update

September '04 trends' update: http://www.pricescope.com/forum/rockytalky/september-price-trends-t19528.html

November update. (details are here)

another opinion on prices
http://www.polishedprices.com/columns/default.asp?id=1000001204&newstypeid=6
not very flattering for Mr Rap.

Guess we should all be buying before Rap Van Winkle wakes up!