The Diamond Trading Company’s October sight pulled in an estimated $750 million, making it the largest this year, but not everyone raved about the event. Some sales were attributed to allotments deferred earlier in the year. Furthermore, some considered this large sale a flood of unneeded supply in a rough market that continues to be weak. Not to mention that for some traders the diamonds reportedly brought in very low to no premiums on the secondary market.
The diamond market continues to be price sensitive. High-quality and large diamonds are not in high demand right now. Lower prices for rounds drove a shift to manufacturing fancies. The diamonds that seem to be getting the most play right now are VS and SI clarities under two carats.
2012 may prove to be a year when holidays fail to boost the markets. Sales in Hong Kong and China for Golden Week were considered disappointing. India is already in the midst of a festive and wedding season and local demand for polished diamonds has not risen to the occasion. And though the industry is looking forward to the US Christmas shopping season, at which time healthy demand is projected, expectations are lower than normal. Shopping is expected to be put off until later in the season and there are suspicions that lower prices may be needed to attract buyers.