Certified polished diamond prices ‎continued to soften in September as buyers remain cautious ahead of the fourth-quarter ‎holiday season. The Hong Kong Jewellery & Gem Fair reflected mediocre Far East ‎demand as buyers concentrated on inexpensive lower-quality diamonds. ‎

Jewelry retailers are buying diamonds to meet their short-term needs but are maintaining ‎low inventories. The prevailing diminished demand has influenced diamond ‎manufacturers to reduce their output, and mining companies to lower their production ‎levels. Both sectors have adjusted their forecasts for the rest of 2012 accordingly.‎

In September, the RapNet Diamond Index (RAPI™) for 1 ct. certified diamonds fell 0.7 ‎percent. RAPI for 0.3 ct. stones decreased 0.6 percent and RAPI for 0.5 ct. diamonds ‎declined 0.6 percent. RAPI for 3 ct. diamonds fell 0.3 percent during the month.‎

During the third quarter of 2012, RAPI for 1 ct. diamonds fell 6.9 percent. RAPI for 1 ct. ‎diamonds dropped 10.2 percent during the first nine months of the year and is down 14.6 ‎percent from one year ago.