10/13/2024|news
Table des Matières
Welcome to our monthly column dedicated to updates on the diamond market. In this space, we will analyze the main trends and the most relevant events that characterized the month of September. The information provided is sourced from reliable outlets, such as Rapaport News and IDEX.
In September 2024, the diamond market continued to experience a decline in prices, reflecting the persistent weakness in global demand and excess supply.
Specifically, the RapNet Diamond Index (RAPI™) reported a price reduction of 1.6% for one-carat diamonds during the month. Diamonds of other carat weights also saw price declines: 0.30-carat and 0.50-carat diamonds decreased by 3.1% and 2.5%, respectively, while three-carat diamonds experienced a more modest decline of 1.3%. This trend reflects the challenges faced by key markets such as the United States and China, where demand for natural diamonds continues to be impacted by competition from synthetic diamonds and global economic uncertainties.
© Copyright 2024, Rapaport USA Inc.
The renowned auction house Sotheby's will soon auction an extraordinary collection of jewelry belonging to the Bulgarian royals, consisting of over 100 unique pieces, including necklaces, rings, brooches, and tiaras, with a total estimated value between 1.2 and 1.8 million dollars.
The auction, which presents a unique opportunity to acquire exquisite antique pieces, will be an event closely followed by collectors and enthusiasts of vintage jewelry.
One of the most coveted pieces is the tie pin belonging to Tsar Ferdinand, which features a 2.08-carat gray-blue drop diamond and four other colored diamonds forming a lily. The pin is expected to sell for a price between 500,000 and 700,000 dollars.
Another notable piece is the bracelet that belonged to Tsar Ferdinand's eldest daughter, Princess Eudoxia, made up of rubies, sapphires, emeralds, and diamonds.
This auction, which will take place in Geneva, represents a unique opportunity for collectors and enthusiasts of antique jewelry to acquire one-of-a-kind pieces of significant historical value.
Hublot has launched a new luxury case for the Apple Watch, priced at 20,000 dollars, as part of a limited edition that includes only ten pieces. Each case is adorned with 155 hand-set diamonds, one by one. This accessory transforms the classic Apple Watch into a true jewel, creating a unique combination of cutting-edge technology and high-end jewelry craftsmanship.
The price of gold has reached new historic highs, continuing an unstoppable growth trend. In recent months, the value of gold has reached $2,685.42 per ounce, marking an increase of over 30% since the beginning of 2024. Currently, the price stands at $2,661.60 per ounce, equivalent to €76.89 per gram. This positive trend is generally affecting the luxury goods market, a sector where sales remain strong.
(Source: https://tradingeconomics.com/commodity/gold)
Gold has always been considered a safe investment and a "safe haven" asset for various reasons related to both its intrinsic characteristics and its historical role in financial markets. A "safe haven" refers to an asset deemed secure and stable that investors tend to choose during periods of economic uncertainty, political instability, or market turbulence, in order to protect capital and minimize the risk of losses.
The unstoppable rise in gold prices is the result of a series of factors, including:
As we have seen, gold continues to increase in value, while diamonds are experiencing a steady decline in prices.
The prices of gold and diamonds are influenced by different factors, resulting in distinct market trends for each asset. The value of gold is closely linked to its role as a "safe haven," making it highly sensitive to macroeconomic factors such as inflation, currency fluctuations, and geopolitical tensions. The price of gold is affected by factors like central bank reserves, demand in the jewelry sector, and overall economic stability. In times of financial uncertainty, investors tend to choose gold, driving up its price due to the perception of stability and liquidity it offers.
Diamonds, on the other hand, follow a more complex pricing logic, primarily determined by the balance between supply and demand in the luxury goods market. Factors such as quality, size, and rarity significantly impact their value. Unlike gold, diamonds are not standardized as a global commodity, making their prices less transparent and more variable depending on certifications and market conditions. Additionally, the emergence of synthetic diamonds has introduced a new form of competition, affecting the demand for natural diamonds. While high-quality diamonds may see price increases due to their rarity and market appeal, their trends are generally more influenced by consumer preferences and luxury goods demand rather than macroeconomic factors.
This difference in pricing dynamics means that gold tends to fluctuate in response to global economic events, while diamond prices are more closely tied to specific industry trends and consumer preferences.
Overall, the diamond market continues to undergo a phase of adaptation and transformation, driven by an uncertain global economic environment and increasing competition from synthetic diamonds. At the same time, gold has reaffirmed its role as a safe haven, benefiting from geopolitical tensions and economic fluctuations. While natural diamonds retain strong symbolic and cultural value, their market performance is affected by greater volatility and sector dynamics. Looking to the future, it will be interesting to see how these two markets evolve in response to economic changes and consumer preferences.
Stay tuned for more updates and insights into the fascinating world of diamonds!