Demand is slow, but India’s import freeze is still having an impact.
Retail restocking is slow after a decent but not record-breaking holiday. The diamond market is uncertain about the rest of the year, and while inflation has eased, interest rates remain high. Yet despite the sluggishness on the demand side, New York dealers are reporting firm pricing on the local and Indian markets. This is mostly because there aren’t enough diamonds coming out of India; the inventory surplus that froze the market in 2023 has abated.
The market is soft in general, but particularly in round, D to Z goods, said Nilesh Sheth, president of New York-based polished supplier Nice Diamonds. Fancy shapes and colors are still moving well, he noted. In this context, “we are only adding items available at attractive prices,” Sheth revealed.
Preference for memo
Last year’s heavy price declines are deterring retailers from buying outright, according to another New York-based polished supplier, who preferred to remain anonymous. Instead, these jewelers are taking goods on memo, giving them the flexibility of having the diamonds without the risk involved — although this comes at a higher cost.
When they are replacing inventory, he said, it’s in core categories such as VS2 to SI1 clarities and F to H colors. However, New York dealers are showing more optimism than they were in the fall, the anonymous supplier observed.