This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Diamond Market Update (January 10, 2013)

As the diamond market returns to normal following the post-Christmas lull, attention is turning to the outcome of the holiday season.

December began with US retailers continuing to express a finicky appetite for inventory ahead of the holiday. That apprehension appeared warranted as the outcome of holiday diamond buying was generally lackluster, especially considering the markdowns that many retailers made to encourage purchases.

Thus, the holiday season fell in line with the rest of the year, which was characterized by weakness.

According to the RapNet Index, polished prices closed the year in the red, with 1-carat diamonds being the biggest loser, down over 12.5 percent. 3-carat diamonds were down 11.6 percent, 0.5-carat diamonds were down 11.1 percent and 0.3-carat diamonds declined 7.4 percent for the year.

Bloomberg reported a 16-percent decline in rough diamond prices for 2012.

The rough diamond market remains weak globally and manufacturing in India is still below capacity.

In the polished market, demand remains steady for fancy diamonds, especially smaller sizes. There continues to be a healthy appetite for lower-quality goods, with tight supply being reported for SI and lower-quality diamonds.

China shows signs of economic improvement ahead of Chinese New Year, and that is boosting optimism about demand in that market. Though focus has started to shift to that event, retailers in that market are showing a reluctance to build inventory.

There were concerns that automatic tax increases related to the fiscal cliff could negatively impact diamond demand. Though the US government managed a deal, it still involves tax increases, most notably on higher-income households. Therefore, concerns remain about the impact on luxury spending in 2013.

Diamond Market Update (January 10, 2013) from Diamond Investing News

null

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,678.70 +6.10 0.03%
S&P 500 2,057.09 +5.27 0.26%
NASDAQ 4,771.7630 +13.8840 0.29%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs