Have Diamond prices gone up?

[triple]

Hi Everyone,

I have heard that diamond prices have gone up a lot in the last 3 to 4 weeks. Can anyone verify this and if so what kind of price jump has there been. Also, is there a specific reason for recent price increases? I am also wondering if prices for D vvs RB are expected to increase? I have been searching all the online sites and they are not easy to find, the BM stores don''t even know what they are, so trying to compare prices on them is very difficult. Is there any reason to believe that prices will shoot up soon for RB or do you think it is safe to shop a while longer?

Thanks

 

[Deelight]

I had a diamond shipped in which about 2 weeks ago at an agreed price in that time the diamond rose just over $1000 but I was lucky I got in before the latest price rise

Certain clarities and colours have jumped others I think stayed the same

 

[WinkHPD]

The rough has been going up for some time according to my cutting friend and supplier Paul Slegers. The jump last week in the Rap sheet was just Rap finally acknowledging the price increases in the rough.

Prices will go up further, especially in the higher colors and clarities in gems over 1 ct.

Wink

 

[Allison D.]

Yes, there was a tremendous jump at the end of last week that affects most weight brackets......increased ranged up at high as 10% in some brackets!

 

[kcoursolle]

Date: 3/21/2008 1:44:49 PM
Author: Allison D.
Yes, there was a tremendous jump at the end of last week that affects most weight brackets......increased ranged up at high as 10% in some brackets!

all I can say is...BUMMER!!!!

 

[Paul-Antwerp]

It even looks more bleak for the future.

Just yesterday, in a deal between cutters in Antwerp, I saw them trading a GIA EX-EX-EX (nothing special, not even checking H&A) at a price that is 8% higher than what we charge our retailers.

If this trend continues, these people will either outcompete us when buying the rough, or we will have to raise our pricing again.

Just FYI,

 

[diagem]

Date: 3/21/2008 10:20:00 AM
Author:triple
Hi Everyone,

I have heard that diamond prices have gone up a lot in the last 3 to 4 weeks. Can anyone verify this and if so what kind of price jump has there been. Also, is there a specific reason for recent price increases? I am also wondering if prices for D vvs RB are expected to increase? I have been searching all the online sites and they are not easy to find, the BM stores don''t even know what they are, so trying to compare prices on them is very difficult. Is there any reason to believe that prices will shoot up soon for RB or do you think it is safe to shop a while longer?

Thanks

D-E-F/VVS quality RB''s are extremely sought after in the (Far) East...

Apparently consumers from the east are paying "crazy" premiums for these type of Diamonds!

Avoiding VVS clarity (in high colored RB''s) will get you into a high but sane category!!!

 

[moderatelypoorstudent]

When should we expect the next price jump?

Or would it ever go back down? Especially since... diamonds are not technically rare, right? It''s all about suppliers holding onto diamonds to keep them from flooding the market?

I''m not entirely informed on this subject so please feel free to enlighten me.

 

[diagem]

Date: 3/21/2008 5:33:58 PM
Author: moderatelypoorstudent
When should we expect the next price jump?

Or would it ever go back down? Especially since... diamonds are not technically rare, right? It''s all about suppliers holding onto diamonds to keep them from flooding the market?

I''m not entirely informed on this subject so please feel free to enlighten me.

What gave you that idea??

 

[moderatelypoorstudent]

This may just be something from several years back, but I thought diamonds were hoarded (probably not cut ones, just rough ones) by large companies such as DeBeers to create the illusion of rarity and therefore value.

If all the rough diamonds in the world today were available to cutters to buy at anytime and at a competitive market price, cut the diamonds and sell them... wouldn''t prices go down on the rough AND the finished product?

So if the price of rough is going up, and causing cutters to charge consumers more... it''s either that there is less rough or just that those who hold it... want more money in their pocket.

Perhaps the info I have is just outdated?

 

[cujo1]

yes that is what I heard as well, you ever see the movie blood diamond?

 

[moderatelypoorstudent]

LOL that movie made me think: CZ ain''t half bad, at least no one died for it.

I heavily looked into man made ones but was turned off by the fact that most of them are yellow and cost quite a bit.

I asked for a price range on one that actually made white/colorless diamonds... I forget the name of the company and don''t know if I''m allowed to advertise it: and it cost pretty much the same as a real diamond except I''d have to get on a waiting list.

I think if it weren''t for the waiting list, I might have said sign me up!

 

[strmrdr]

Date: 3/21/2008 6:18:33 PM
Author: DiaGem

Date: 3/21/2008 5:33:58 PM
Author: moderatelypoorstudent
When should we expect the next price jump?

Or would it ever go back down? Especially since... diamonds are not technically rare, right? It''s all about suppliers holding onto diamonds to keep them from flooding the market?

I''m not entirely informed on this subject so please feel free to enlighten me.

What gave you that idea??

its actually the truth for a long time DeBeers had a stockpile of diamonds.
They supposedly don''t do that any more HA!

100+ million carats a year of gem grade diamond and growing every year that''s not rare, untreated natural clean top red ruby now that''s rare. The yearly production wouldn''t fill your hat.

 

[Ali]

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[DiamondExpert]

In general, at present supply is outstripping demand, and there just ain''t no secret stockpiles (as far as I know - of course, if I knew, then they wouldn''t be secret)...however, there is some speculation in the market - especially in specials (10ct. up) and I fear it''s creeping into the lower sizes (3ct.+) of colorless/VVS-VS.

If world markets like India/China/Oil-rich far East/Russia falter, we may see some short term pullback - but don''t count on it for the long term.

 

[jaguarnation]

I feel very fortunate that I bought my diamond in mid-February if they are escalating now!

 

[The Mole]

Sorry to burst your bubble, there are no secret stockpiles....


Actually ever since DeBeers has decreased market share from apx 70% to less than 50% the prices started going UP! Kinda shoots a hole in the "artificially inflated" diamond prices theory.

I know no one likes to hear it, however the DeBeers stockpiles where kinda good for the industry. Kept the prices stable, not the rollercoasters that you see now when there are shortages of cetain sizes causing the prices to spike.

Yep, if DeBeers still has large stockpiles of diamonds, I''m sure they would not be cutting sightholders left and right because they do not have enough rough to go around.

 

[diagem]

Date: 3/22/2008 1:19:17 AM
Author: The Mole
Sorry to burst your bubble, there are no secret stockpiles....


Actually ever since DeBeers has decreased market share from apx 70% to less than 50% the prices started going UP! Kinda shoots a hole in the ''artificially inflated'' diamond prices theory.

I know no one likes to hear it, however the DeBeers stockpiles where kinda good for the industry. Kept the prices stable, not the rollercoasters that you see now when there are shortages of cetain sizes causing the prices to spike.

Yep, if DeBeers still has large stockpiles of diamonds, I''m sure they would not be cutting sightholders left and right because they do not have enough rough to go around.

True..., plus one tiny correction...

"....however the DeBeers stockpiles where kinda good for the industry and consumers as well ."

The only stockpile today is..., the Russian claim!
But they claim to have a stockpile under the ground....

, not above

 

[diagem]

Date: 3/21/2008 8:09:00 PM
Author: strmrdr

Date: 3/21/2008 6:18:33 PM
Author: DiaGem

Date: 3/21/2008 5:33:58 PM
Author: moderatelypoorstudent
When should we expect the next price jump?

Or would it ever go back down? Especially since... diamonds are not technically rare, right? It''s all about suppliers holding onto diamonds to keep them from flooding the market?

I''m not entirely informed on this subject so please feel free to enlighten me.

What gave you that idea??

its actually the truth for a long time DeBeers had a stockpile of diamonds.
They supposedly don''t do that any more HA!

The only stockpile''s are claimed today is by the Russians..., but they claim it''s in the ground..., and not in the safes...

100+ million carats a year of gem grade diamond and growing every year that''s not rare, untreated natural clean top red ruby now that''s rare. The yearly production wouldn''t fill your hat.

At least as rare as a clean red or green Diamond..., or as rare as a clean as a Top colored green Emerald...., but what about the rest of the Diamonds, Rubies or Emeralds..., how many hats can you fill with them?

 

[Garry H (Cut Nut)]

Date: 3/21/2008 5:33:58 PM
Author: moderatelypoorstudent
When should we expect the next price jump?

Or would it ever go back down? Especially since... diamonds are not technically rare, right? It''s all about suppliers holding onto diamonds to keep them from flooding the market?

I''m not entirely informed on this subject so please feel free to enlighten me.

Rapaport recently wrote an article warning all dealers not to speculate (mainly probably been happening in 4ct better quality plus goods).
But the real reason for the last big jump will be the fall in the US $.
Diamonds are mined and processed in countires with vastly stronger currencies.
And now the lions share of sales are no longer happening in USA, so we might even see a decoupling of diamonds and dollars.

On top of that the word in HK recently was why bother selling or memo''ing diamonds to USA when the tradee and retail buyers pay overseas companies last, and since many US firms are going to the wall, that means the alien firms believe they will never get paid.
Add to that many US firms are now turning to export markets for the same reasons.

 

[diagem]

Date: 3/21/2008 2:18:23 PM
Author: Paul-Antwerp
It even looks more bleak for the future.

Just yesterday, in a deal between cutters in Antwerp, I saw them trading a GIA EX-EX-EX (nothing special, not even checking H&A) at a price that is 8% higher than what we charge our retailers.

If this trend continues, these people will either outcompete us when buying the rough, or we will have to raise our pricing again.

Just FYI,

Yes..., just came back from Antwerp!!!

Saw it..., felt it too...

I hear in some instances (far east ones...)... RB four-grainers are surpassing every imaginable # (specifically if they are D-E-F/VVS's and triple X)...

Let see how this is going to play..., in the near future...
You can call it speculation..., but I am not to sure (anymore...)

 

[Garry H (Cut Nut)]

Guys I really think you are not getting the fall of the dollar effect.

from Rap news
"---Graff Sells 70ct Diamond for $11M
Laurence Graff sold a 70.12ct yellow diamond for $11 million (EUR 7
million) or $156,874p/ct. The sale was made to an undisclosed European buyer at the Tefaf arts & antiques fair in Maastricht, Netherlands.
Graff described the diamond as an emerald cut fancy intense yellow diamond set in a platinum ring with two white diamonds weighing 1.8 carats."

A few years ago that was EUR11 million, now it is only (cough cough) EUR 7 million.
Diamonds have become much more affordable everywhere but America, and america is not going to be as big a market because of the subprime and the heightened payment risks dealing in America. your prices will keep going up and we will and are already seeing a partial decoupling of dollars and diamonds.

So get used to it or find some diamond mines and polish more diamonds in USA

 

[Pandora II]

The Rap news has been very interesting for the last month or so.

The thing I''ve been really intrigued by is the marquise demand.

You so rarely see anyone here with a marquis or even asking about them - but according to their demand lists, it sems to be much more in demand than princess.

Is there some specific marquise market in another country??

I don''t know what to think about the dollar right now - it''s working in my favour in one respect, but if it''s driving metal and stone prices up, how good is that really. Okay, you still make the same saving versus the high-street here as they are affected by the rise in material costs, but in the long-run no-one benefits...

What''s the situation like in Australia Gary?

Here there is a lot of talk and predictions of doom and gloom in the papers and the banks are getting angsty; but your average man in the street is thinking they should be a bit more frugal perhaps, but I haven''t seen any real sign that hard-times have actually arrived yet.

 

[arjunajane]

Date: 3/22/2008 9:00:43 PM
Author: Garry H (Cut Nut)


Guys I really think you are not getting the fall of the dollar effect.

from Rap news
'---Graff Sells 70ct Diamond for $11M


Laurence Graff sold a 70.12ct yellow diamond for $11 million (EUR 7
million) or $156,874p/ct. The sale was made to an undisclosed European buyer at the Tefaf arts & antiques fair in Maastricht, Netherlands.
Graff described the diamond as an emerald cut fancy intense yellow diamond set in a platinum ring with two white diamonds weighing 1.8 carats.'

A few years ago that was EUR11 million, now it is only (cough cough) EUR 7 million.
Diamonds have become much more affordable everywhere but America, and america is not going to be as big a market because of the subprime and the heightened payment risks dealing in America. your prices will keep going up and we will and are already seeing a partial decoupling of dollars and diamonds.

So get used to it or find some diamond mines and polish more diamonds in USA

In that case garry, would u mind to take a min to explain to a layperson like me how come diamonds continue to be Soooo expensive in Australia? I live in WA, and no matter what international market I look at (US, Asia) they are Always cheaper than anything i could find here, even after taxes and duty.. Considering how our dollar keeps getting stronger, and not to mention we Do have natural diamond resources here, based on ur argument does that mean we can expect to see prices improving here?
thanks!