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Diamond Sales Slowed Down - Prognosis Ahead

Posted by: Editor
Date: 7/13/2017

We started the year 2017 optimistic with a clear increase in the sales of diamonds. All our vendors reported optimism with the trade that after a two year dull has finally picked up.

But since June, the USA markets seem to be stagnating, and sales are not as one hoped they would be. We all know that the diamond markets are volatile and hard to predict. But are we standing at the edge of another market fall? 

What are the factors?

Diamonds are a luxury item, mostly used in jewelry, and some are being kept by investors. and collectors. The latter category is relatively small and deals mostly with extraordinary rare and precious items. Most of the market is bridal jewelry, either engagement rings, or bridal rings.   

When a young couple wants to buy a diamond ring, they will have a budget. When the average buying power (budget) goes down, these couples can buy something less expensive, e.g. a smaller diamond or slightly lesser quality.  But when the economy is in recess, most couples postpone their wedding, creating a wedding boom a year or two later. 

But our beloved next generation will also look to alternatives. Colored gemstones became very popular because of this, and so are synthetic diamonds.  People even buy moissanite or another substitute if that is what they can afford. If diamonds are over-priced,  some people will buy alternatives. 

Usually the summer months' trading is quite slow as is in Europe and the USA. We will only find out towards August - September when the retail stores finish stocking up their inventory for the Chrismas season what the real state of our industry is. 

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