According to the reports from IDEX Online the Worldwide polished diamond prices have risen significantly in November. At the beginning of the month, it was at 117.1. By the end of this month, it was at 118.5, an increase of 1.2 percent. This would link to an annualized 14 percent price increase.
Many factors led to higher prices, some are as follows:
• For the month of October diamond jewelry sales in the U.S. proved a solid rise from uninspiring demand in the late summer period. An improving stock market was possible only because bottoming real estate market were responsible for a rising consumer wealth factor. When consumers feel wealthy, they increase their discretionary spending.
• Earlier this year U.S. consumers began shopping for their holiday. While the economic recovery has been slow, the economy is clearly improving.
• The holidays in the Indian market are over, and traders are buying goods.
• The overall mood has improved in the diamond industry throughout the entire distribution pipeline. Emboldened diamantine have begun to raise polished diamond prices.
According to the The IDEX Online Global Polished Price Index averaged 117.9 for the month of November, barely up from an average of 117.8 for October. However, the “average” obscured daily trends, as the graph below illustrates. Its Index had reached 118.5 in early September (peak at left on graph below), then fell for the balance of September and October, and began rising in early November, as this three-month daily price summary shows.
Last month, IDEX Online Research was bearish on diamond prices, especially after weak jewelry sales during September in the U.S. market.
It is for sure that diamond jewelry is on consumers’ shopping lists.
Private enterprise sets prices based on supply and demand. Now that demand for jewelry – and perhaps diamond jewelry – is strengthening, diamond prices will likely trend higher.
However, it is clear that we are still in the recovery phase of the current economic cycle. As a result, demand will be choppy for the next several months. Thus, we could see short-term swings in demand that might obscure the long term potential for higher diamond prices affecting purchase of diamond studs
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