How’s the Market?

Written by: Andrew Fabrikant

Oftentimes I am asked how the market for diamonds is faring.  The diamond market is similar to every market place in the world.  Diamonds go up and down in price.  They do not reflect the stock market or the gold market, but are directed by supply and demand.
When there are shortages of particular diamonds in the market, diamond cutting houses may direct their efforts to fill these deficiencies.  Until these vacuums are filled, prices for diamonds with those particulars often go up. Prices stabilize as soon as a few more diamonds become available in the niche market.
As global financial markets experience unpredictable swings, so can the diamond market.  Dealers at recent shows were reluctant to aggressively buy inventory.  In trying to extract better prices buyers were asking for better price points or better payment terms.
Now that the shows are over and the retailers are back to their selling season around the world, diamonds have stabilized at very strong levels.
With the exception of some of the shapes and sizes, diamonds are back to their previous levels. The trick is knowing which markets enjoy which stones and what those prices should be.
Notable exceptions are 1 carat stones, which are off their historic highs by only 10%, but are up overall by over 20% year to year.
Bigger stones have held up well in the time of global uncertainties.  Perhaps the struggles of the world are why diamonds have done so well. They are transportable wealth that has the potential to offer a return to those desperate to relocate at a moments notice.
To sum up our position diamonds have done exceptionally well over the last year.  Every market has its own demands in which we are nimble enough to help you participate in. Even in those segments of the market that have retraced their progress a little you are still within 10% of the all time highs.
I hope this was a helpful discussion for those of you considering selling your diamonds. If you have questions about your particular diamond and its value on today’s market place, I will be happy to assist you.