The R&M “Lettre”

The Hong Kong Jewellery & Gem Fair set an improved tone for the diamond market despite challenging conditions in the Far East.

The release in August by Tiffany & Co. of its sixth annual Sustainability Report outlining the company’s corporate social responsibility work, commitment to the environment, and contributions to the communities

Summer is the most boring time for a diamond journalist. There is virtually no news in our market at this time of the year. Especially now, as all major players have already said that they do not expect changes in the market before the end of the year.

Rough diamond trading was surprisingly buoyant in April given that polished demand is restrained and inventory levels continue to rise.

Trading on the world diamond market is slowing down after a very successful first quarter. However, this slowdown is not a reason for pessimism.

“We maintain a cautious view of this year. Although the first two months of 2016 were stronger, this was primarily due to the marketing policy pursued by the company, which we carried out in relation to customers and the market in the 2nd half of 2016.”

The Hong Kong show that ended March 7 revealed a diamond industry that is focused on the very short term. Dealers who spoke with Rapaport News were relatively upbeat about the exhibition, but uncertain of market developments in two-to-three months.

Fine jewelry sales in the US posted a rise in November, and there are signs that December was alright too. In the last couple of weeks of December, Mumbai diamond traders had a sudden rise in sales, both from the US and China, leading to a burst of optimism that drove demand for Sight goods.

The diamond industry has a lot riding on the Chinese New Year season and recent events in Shanghai have done little to inspire confidence. As stocks plummeted and the Renminbi depreciated against the dollar, fresh concerns rose about China’s growth prospects, its impact on the global economy and on the diamond and jewelry trade.

The European jewellery industry has been waiting for this winter season with a mixture of expectations and fear. 2015 is, according to consumer forecasts, a key year. The European Union is now out of the crisis, and bound to a low and steady growth in the long term.

Rapaport’s widely read Rapaport Weekly Market Comment is a carefully considered statement reflecting the Rapaport Group’s view on the market and important trends influencing the diamond trade during the previous week.

What a horrible year it was. Miners, traders and retailers will remember 2015 as the year of lost capital, walking on the cusp of bankruptcies, lost opportunities and diminishing value of diamonds. How did it happen, could it been avoided and what lessons can be drawn from it – short term and long?