United States: Wholesalers are hoping to build on the momentum gained from the Christmas holiday season, which was positive for many. However, they are expecting retailers to be conservative in their buying in the first few months of the year, hedging risk by keeping inventories low. Wholesalers are feeling increased difficulty to find diamonds as they compete for goods with the growing Far East and Indian markets. Retail activity has slowed following Christmas/New Year with store owners hoping to benefit from gift card buying in January.
Belgium: Trading remains slow with many businesses still closed for the Christmas - New Year vacation period. Activity is expected to start returning to normal from next week. There are indications of a slump in confidence at the start of 2012 as concerns remain about Europe’s economic prospects. Transactions are very price sensitive and there is very little buying for inventory.
Israel: Polished trading is steady but relatively quiet as partners in the U.S. and Belgium are slowly returning from vacation. Suppliers are focused on the Far East trying to capitalize on last-minute demand for the Chinese New year. In addition, a contingent of buyers and sellers has traveled to India for the IIJS Signature show this weekend hoping to boost ties with the Indian market. Dealer trading in the bourse is stable with good demand for dossier certificates, 0.30-carat to 0.90-carat goods and goods above 1.00-carat and a strong focus on SI clarity stones.
India: Polished trading remains subdued as cautious buyers are uncertain about prices. Local buyers are purchasing according to their immediate order requirements. There is some demand from Antwerp-based Indian buyers visiting Mumbai during the New Year vacation, especially for small-size goods. However, their buying has fallen below previous year levels. Polished supply has marginally improved but overall shortages continue. There is sufficient rough supply in the market but manufacturing has lagged during the ongoing wedding season. Local rough trading also remains quiet with few transactions taking place among dealers due to the widening price differentials.
China: Confidence in the trade improved as reports indicate strong general retail and growing jewelry sales during Christmas and New Year holidays. Heavy discounting was evident as retailers sought to attract new customers. The trend is expected to continue as wholesalers are preparing for steady last-minute orders before the Chinese New Year begins on January 23. Still, jewelry retailers are hesitant to significantly raise their inventory levels and are monitoring their purchases carefully.
Hong Kong: There were steady retail sales over the Christmas-New Year selling season driven by tourists from Mainland China. However, diamond wholesalers were relatively disappointed at the season as prices have softened in the second half of the year. There has been a shift towards lower quality goods as consumers continue to tighten their budgets with SI clarity goods becoming the most popular category of diamonds. There is good demand for 1-carat, G-H, VS-SI goods.
