Rapaport: Diamond Prices Rose 10% Last Year

Polished diamond prices have returned to prerecession
levels, the Rapaport Group, publisher of the Rapaport Diamond Report price sheet, announced in a statement.

Certified polished diamonds prices increased 10.3 percent
throughout the year on the RapNet trading network, the group said, with half
carats up 4.1 percent, 1 carats up 12.3 percent, and 3 carats up 24.6 percent.   

The group also reported: 

– Large, high quality diamonds did well in 2010, as did
small, inexpensive diamonds.

– With more than 600,000 cutters, India now dominates diamond
production, assisted by easy banking credit and a powerful local jewelry market
that is growing at about 25 percent a year.

– Diamond producers’ stockpiling and cuts in production
created shortages that resulted in speculative pricing and reduced manufacturer
profits.

“While the U.S. recovery will take time, the global diamond markets are well positioned for growth in 2011,” said Martin Rapaport, chairman of the Rapaport Group. “The trade is advised to enjoy the ride as long as interest rates remain low, avoid speculation and maintain liquidity.”

JCK News Director