Slow polished trading as economic uncertainty fuels caution in diamond markets. Weak rough market with buyers asking for deep discounts. Cutters expected to increase manufacturing as rough availability improves due to decline in speculation. De Beers keeps prices stable as Sept. sight closes with estimated value of $500M. Russia’s 1H diamond exports -25% to 18.12M Cts. Belgium’s Aug. polished exports +49% to $528M, rough imports +54% to $1.2B.

United States: Wholesalers report mixed market conditions as some are still able to capitalize on the high prices seen this year while others are more affected by diminished demand and weak economic sentiment. Wholesale inventories are relatively large as retailers continue to keep their inventories low with cautious buying. There is stable demand for round, 0.75-carat to 2.00-carat, F-H, SI goods. There is increasing demand for fancy shapes, in particular ovals and cushions, with fine-cut high-end fancies in short supply. Retailers are looking for bargains while price uncertainties prevail.

Belgium: Trading in Antwerp remains quiet as several dealers only returned from the Hong Kong Jewellery & Gem Fair this week, while many businesses enjoyed a shorter working week due to the Jewish New Year. Polished demand remains weak due to the cautious economic environment and dealers are uncertain whether current prices are sustainable. Similarly, rough trading is slow as prices continue to decline.

Israel: A shorter working weak due to the Jewish New Year meant very little trading in Ramat Gan. Diamond cutters and dealers who attended the Hong Kong fair returned still cautious of the current market environment as price uncertainties prevailed at the show. They expressed mixed expectations for the coming fourth quarter.

India: Local polished trading is slow as dealers remain uncertain about prices following the Hong Kong show. Polished buyers are cautious and feel that some smaller local suppliers might be willing to reduce prices further in an effort to improve cash flows. There is good demand for star and melee goods and fair demand for certified 0.50-carat and 1.00-carat stones in better colors and VS-SI clarities. Rough trading remains slow due to the weakening Indian rupee and tight liquidity.

China: Retail jewelers are expecting sales to rise over the next week as the National Day Golden Week holiday begins on Saturday (October 1), even if the same double-digit growth experienced in recent years is not forecasted. Retail buyers held back from making large inventory purchases in the past months, and at the Hong Kong show, and have focused on what they needed. They have been very price sensitive and cautious that prices may decline further.

Hong Kong: Buying at last week’s show was slower than usual at the September Fair as buyers focused on meeting immediate demand conscious that further price declines might be pending. Slow economic growth in the U.S. and Europe and volatility in equity markets fueled caution at the show and continues to impact trading. Still, Far East demand remains steady with strong demand for large goods above 3 carats in better colors and VS-SI clarities. Retail activity is expected to rise in the coming week as tourists from Mainland China travel to Hong Kong over the Golden Week holiday.