Close Menu
Jewellery MonthlyJewellery Monthly
    Facebook X (Twitter) Instagram
    Jewellery MonthlyJewellery Monthly
    • News
      • Industry News
      • Celebrities
      • Launches
    • Events
    • Insights
    • Consumer Education
      • Diamond Prices
    • About Us
    • Contact
    Wednesday, May 21
    Jewellery MonthlyJewellery Monthly
    Home»Diamonds»Diamond Prices Decline in July: Implications for the UK Jewellery Industry
    round brilliant polished diamond in parcel 1280 used 080123
    Diamonds

    Diamond Prices Decline in July: Implications for the UK Jewellery Industry

    Hugo JeffryesBy Hugo Jeffryes01/08/20233 Mins Read
    Share
    Facebook Twitter LinkedIn Pinterest Email

    Diamond prices experienced a significant drop in July 2023, with a number of factors contributing to the decline.

    Diamond data firm Rapaport outlined key trends and developments in the diamond market, including the impact of De Beers’ price reductions, competition from synthetics, and market dynamics.

    Here’s what these trends mean for the UK jewellery industry.

    Key Trends in July

    Decline in Diamond Prices

    De Beers reduced many rough prices by 5% to 15%, contributing to the overall decline in diamond prices. The RapNet Diamond Index (RAPI™) for 1-carat diamonds slid 2.7% for the month, standing at 6,716 on 1 August, down 10.9% since 1 January. The index also declined in other sizes, with 0.50-carat diamonds being the weakest. Additionally, the price index for 1-carat, D-L, IF-SI2 items fell 3.7% in July.

    prs rapi table aug 2023 jf 080123 1024x288

    Weak Retail Demand

    High inflation and interest rates restricted spending in middle America, and China’s post-lockdown recovery did not extend to diamonds, further impacting demand. However, the high-end segment supported the market as consumers with savings bought branded jewellery.

    Competition from Synthetics

    The lab-grown diamond sector continued to gain market share, especially in 1- to 3-carat, SI1 goods. Wholesale synthetics prices have plummeted, but retail prices remain high, attracting jewellers to this segment.

    Inventory and Production

    Manufacturers and dealers accumulated inventories of less-desirable stones, while beautiful SIs were in demand and hard to find. Rough purchases remained low due to weak polished demand and uncertain manufacturing margins, reflecting lower production.

    Implications for the UK Jewellery Industry

    Opportunities in Synthetics

    The growing market share of lab-grown diamonds presents opportunities for UK jewellers to explore this segment. With strong margins and increasing consumer interest, synthetics could become a significant part of the UK jewellery market.

    Challenges in Pricing and Inventory Management

    The decline in diamond prices and the uncertainty surrounding future price levels pose challenges for UK jewellers in pricing and inventory management. The cautious approach of dealers and the accumulation of less-desirable stones may impact the supply chain and require strategic planning.

    Market Dynamics

    The UK jewellery industry must consider global trends, including the impact of inflation, interest rates, and regional demand fluctuations. The high-end segment’s resilience may offer insights into targeting specific consumer segments.

    Rough Market Impact

    De Beers’ price reductions and the overall decline in rough purchases may influence the UK’s rough diamond market. The July sight registered sales of $410 million, the lowest since December 2021, reflecting a cautious approach that may resonate with UK dealers and manufacturers.

    Final Thoughts

    The decline in diamond prices in July 2023 reflects complex market dynamics, with implications for the UK jewellery industry. From the growth in synthetics to the challenges in pricing and inventory management, UK jewellers must navigate these trends with strategic insight. The industry’s adaptability and responsiveness to these global developments will be key to sustaining growth and competitiveness in a rapidly evolving market.

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    Hugo Jeffryes

    An experienced jeweller and store owner, Hugo writes from a retailer’s point of view

    Related Posts

    De Beers Group to Wind Down Lightbox Lab-Grown Diamond Business

    09/05/2025

    WFDB Aligns with Global Diamond Industry in Appeal for U.S. Tariff Exemption

    08/05/2025

    What the UK–India Trade Deal Means for the Jewellery Industry

    08/05/2025

    JVC Launches Online Tariff Tracker for Jewellery Sector

    08/05/2025

    Leadership Change at CMJ as Emmet Cummins Steps Down

    03/05/2025

    De Beers Resumes Auctions in Botswana Following Relocation of Sales Hub

    02/05/2025

    Jewellery industry news & insights delivered straight to your inbox

    Get the free 5-minute newsletter read by Jewellery Industry professionals who want to get ahead

    Your subscription could not be saved. Please try again.
    Your subscription has been successful.

    Explore

    • About
    • Contact

    Reach Our Audience

    • Advertise
    • Submit a press release
    • Submit an opinion piece

    Consumer Education

    • 4Cs of Diamonds
    • Diamond Price Chart

    Jewellery Monthly is part of Loupe Media Network

    Privacy policy | Terms of use | Cookie Policy

    Type above and press Enter to search. Press Esc to cancel.

    We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
    Cookie SettingsAccept All
    Manage consent

    Privacy Overview

    This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
    Necessary
    Always Enabled
    Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
    CookieDurationDescription
    cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
    cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
    cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
    cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
    cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
    viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
    Functional
    Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
    Performance
    Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
    Analytics
    Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
    Advertisement
    Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
    Others
    Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
    SAVE & ACCEPT