The Diamond Market Moving Into December 2010

Posted on | November 6, 2010 | 2 Comments

It’s been a while since I’ve written about the state of the diamond industry as we prepare for the Holiday Season. I am in the unique position of looking at the market from both a wholesale and retail perspective. We buy so many diamonds from the public that we are regular traders in the market, dealing with wholesalers and manufacturers. We also are jewelry retailers (although I consider myself a dealer) so I see consumer trends as well.

On the inside (in the dealer to dealer world) I see caution from buyers. With the economy still in bad shape, some diamond brokers are only willing to buy larger fine goods. In my mind, diamonds are a commodity (sorry all you “Romance Retailers”) and if I see an opportunity, I will buy anything at the right price.

Looking at the average US retail market (white diamonds 1-2 carats) we are seeing a nice flow of engagement ring customers and that’s good news. However, I believe what drives our diamond business is the fact that we educate and sell diamonds for what they are. Sure they are a thing of beauty, but they are also a commodity with real value and demand in the market. That’s what we teach our customers and that’s why we’re not seeing a drop off in retail diamond sales.

24.78 Fancy Intense Pink

It’s also interesting to look at rare colored diamonds. It seems that this market has not taken a hit at all. In fact, the “Bulgari Blue” diamond just hit a record price of $15.7 million, and there’s a 24.78 fancy intense pink diamond coming up for sale that is expecting to reach $38 million.

Only time will tell what happens this season. I will say that if you’re in the market for a diamond, now is a GREAT time to buy. The market is still strong, even with the economy so uncertain. Happy trading!