Luxury jewelers in the United States have performed well, but the mid market has excess inventory and slow sales. Signet's stock price has fallen 17% in the past week due to market slowdown warnings. In May, the inflation rate in the United States dropped to 4%, and the Federal Reserve decided to freeze interest rates, which eased market concerns about the economy.
Key brands in Hong Kong are recovering, but overall demand in the Chinese market is slow. With the return of tourists, Chow Tai Fook's sales increased by 38% in April and May. Okavango sold $101 million of raw stones at a lower price in June, a transaction after withdrawing the goods in May. At Sotheby's New York auction, a 10.57 carat pad shaped, fancy vivo purple red, and IF clarity diamond was sold for $34.8 million ($3.3 million per carat).
Alien diamond: The diamond market has slowed down after a difficult start. The irregular diamond market is better than the circular diamond market. Long oval, Emerald and Raytheon are the most popular styles. Products with a length to width ratio of short to medium perform weaker. The market's demand for cushion diamonds has decreased. Diamond sales of 0.30 carats are good, while diamond orders of 0.70 to 1.20 carats are relatively low. The performance of VS-SI grade diamonds has weakened, except for diamonds ranging from 1.20 to 1.49 carats. There is a shortage of well cut diamonds in supply. High quality irregular diamonds need to be sold at a premium. Retailers offer a wider range of products as consumers seek alternative shapes. The transaction price of oversized diamonds is higher than usual. Low quality irregular diamonds have poor liquidity and are difficult to sell.
The jewelry market in the United States has shown mixed performance. Economic uncertainty affects the purchasing power of low-income to middle-income groups. The luxury goods sector has shown strong performance due to the increase in discretionary spending among wealthy Americans. Signet stated that the decrease in wedding ring orders may affect products with higher prices. The growing demand for Synthetic diamond in the wedding ring market has seriously damaged the sales of natural diamonds in the United States. The market still maintains stable interest in irregular diamonds with a color rating of H-I and clarity of SI, which are over 3 carats.
Belgium: Dealers returning from Las Vegas reported good sales of high-end products, but a weak market for commercial goods. Customers only purchase products on demand. The price decline has not yet stimulated market activity; The demand in the United States and China is weak. There is expected to be a recovery in September. The rough diamond industry is evaluating the impact of supply decline after the recent De Beers auction and the cancellation of Petra Diamonds bidding.
Israel: With prices falling, market sentiment is sluggish. The exhibition in Las Vegas has limited market impact. Dealers only make purchases when customers confirm their needs.
India: International demand is declining. The local market supports trade. Buyers from the United States and China did not place large orders. Sales of diamonds ranging from 0.50 to 3 carats are slow, especially for diamonds with low color and clarity. Products with a purity of SI have lost market momentum. The sales performance of well cut irregular diamonds is better than that of circular diamonds. The manufacturer has reduced production.
Hong Kong, China: Despite the sluggish mainland economy, market activity remains sluggish. The recovery effect of travel is limited. Smaller dealers are preparing to start their summer vacation ahead of schedule. The local and mainland markets maintain stable demand for 1-carat, D-J color, and VS clarity diamonds. Chinese suppliers increased their inventory before the summer sales season. The industry is optimistic that the market situation will improve before the September International Exhibition.
