Diamond Prices Declined in October Due to Rising Stocks
In October, diamond prices fell after two months of growth, reported the Rapaport agency. The RAPI index for one-carat stones decreased by 0.9%, and since the beginning of the year, it has dropped by 6.5%.
The smallest diamonds saw the sharpest decline: 0.3-carat stones fell by 5.5%, and 0.5-carat stones by 2.3%. Only three-carat stones increased in price (+0.9%).
The main reason for the decline is the growth in supply. From June to November, the number of 0.3-carat diamonds on the Rapaport Trade platform increased by 165%. Producers ramped up output amid market recovery, and cutters resumed certifying small stones.
Demand for rough diamonds has also weakened: Indian cutting enterprises are preparing to close for 15–30 days due to Diwali, which falls on November 8 this year. As a result, De Beers' October sales were modest. Meanwhile, luxury brands, including LVMH and Kering, reported strong results from their jewelry divisions in the third quarter.
