Demand in the high end of the polished diamond market remains remarkably strong. Christie’s New York reported strong sales this week with diamonds stealing the show. In the dealer market traders are also reporting continued strong demand. By contrast, virtually no sales are being reported from the diamond centres in bread and butter goods for the US market. Although this has not resulted in alarming reports about the level of returns to the cutting centre from the US retail market. Some traders have suggested that goods have not been sent back because a large amount of the jewellery has been melted to sell off Gold. If the case, and there is a build up of polished in the US wholesale market, there could be further price pressure, especially because Commercial American type goods are difficult to shift to other consumer markets. On the other hand, many manufacturers in India have reportedly shifted production towards better quality type goods and less is being produced in this segment. Concerns however remain about the impact that the weak demand situation in the main US market will have on the overall price trend for polished. So far, better qualities have stayed clear of any substantial price pressure. On the PolishedPrices index, Fine quality one carat surged 10.2% at Monday’s opening compared to the previous week. The overall index is currently 5.2% above its level of a year ago, and 1.0% above its value at the start of the year.

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