Monthly Diamond Market Update - July 2024

Welcome to our blog section dedicated to monthly updates on the diamond market. This space is designed to provide our readers with up-to-date information on the current state of the market and highlight the most important news and significant trends. All the information presented comes from qualified sources (Rapaport.com, Idexonline.com).

General Market Overview

In July 2024, natural diamond prices experienced a significant decline due to decreased retail sales and an oversupply in the market. Additionally, the usual summer downturn further contributed to the reduction in sales.

The RapNet Diamond Index (RAPI™) for one-carat diamonds, referring to round diamonds from D to H color and IF to VS2 clarity, dropped by 7.3% in July, marking the most significant monthly decline for this size category since December 2008. Diamonds of 0.30 and 0.50 carats also saw respective declines of 8.9% and 7.9%, while prices for 3-carat stones decreased by 5.8%. Despite a more moderate decline of 3.2% for round diamonds of one carat, D to H color, SI clarity, the market generally showed signs of weakness, with an increase in polished diamond inventory and a reduction in production by Indian manufacturers to realign supply with the current level of demand.

Highlights Of July 2024

• Rough diamond sales remained weak, estimated to be below $200 million.
• Luxury brands purchased fewer diamonds compared to previous years, with a 5% decline in sales of high-end jewelry and watches in the first half of 2024.
• The IDEX report of August 1, 2024, highlights that while prices for smaller diamonds continued to decrease, some larger stones registered price increases.
• Round diamonds continue to dominate the market, accounting for 85.78% of demand, with a 3.34% increase compared to June 2024.
• The lab-grown diamond market experienced a dramatic price drop: from $300 per carat to just $78 per carat.

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Two Fascinating Diamond Tidbits

• During the Paris 2024 Olympics, legendary American gymnast Simone Biles showcased a truly special piece of jewelry: a custom-made goat-shaped pendant. While “goat” means a farm animal, for Biles, it refers to the acronym "GOAT" (Greatest of All Time). This extraordinary piece, made of white gold and adorned with 546 diamonds, was handcrafted by Californian jeweler Janet Heller to celebrate Biles' incredible career. With two additional Olympic golds this year, she has become the most decorated gymnast of all time. Each of the 546 diamonds symbolizes the athlete’s extraordinary dedication and perseverance. Alongside this precious pendant, Simone also wore a necklace with five Olympic rings, symbolizing her exceptional journey through various editions of the Olympic Games.

• A study published in July 2024 confirmed that it rains diamonds on Neptune and Uranus, two planets in our solar system! The extreme pressure and temperature conditions on these planets cause carbon atoms to crystallize, forming solid diamond rain. This cosmic phenomenon adds an even more extraordinary dimension to the allure of diamonds, demonstrating that these precious gems are not only found on Earth but are scattered throughout the universe.

Feature Of The Month: Pomellato, A Truly Italian Success

The prestigious jewelry company Pomellato was founded in Milan in 1967 by Pino Rabolini, the visionary heir to a family of jewelers, driven by the desire to revolutionize the world of jewelry. With a philosophy aimed at combining Italian craftsmanship with fashion trends, Pomellato introduced the concept of "prêt-à-porter" in jewelry, making each piece a style accessory to be worn daily, not just on special occasions.

Over the years, Pomellato has become an international luxury icon, winning over celebrities and discerning clients worldwide with its unique and bold creations. The brand has maintained a strong and distinctive identity, thanks also to the use of vibrant colored gemstones, often set in innovative and contemporary designs.

A key milestone in the brand's growth was the acquisition of the company by luxury giant Kering in 2013, which allowed Pomellato to expand its global presence while maintaining its deeply Italian roots.

In 2020, Pomellato further consolidated its position in the high-end jewelry market with the acquisition of the historic Valenza jewelry company, renowned for its artisanal tradition. This strategic move further strengthened the brand’s production capabilities, ensuring direct control over the entire creative and manufacturing process, from stone selection to jewelry creation. Valenza, located in the heart of the Italian goldsmith district, is famous for its mastery and precision in working with gold and precious stones, making it an ideal partner for Pomellato.

Today, Pomellato continues to grow, exploring new frontiers of design and luxury while keeping alive the innovative and creative spirit that has characterized its history since the beginning.

Conclusion

July 2024 has provided interesting insights and market dynamics that deserve careful consideration. From the decline in natural diamond prices to the growing popularity of lab-grown diamonds, the sector continues to evolve unpredictably. We will continue to monitor these developments in the coming months, providing our readers with in-depth and timely market analysis.

Stay tuned for further updates and insights into the fascinating world of diamonds.