Asia is driving early signs of a revival in diamond prices amid an unstable global market affected by the Covid-19 crisis and protests.
Rapaport, which monitors diamond trading trends, says the Hong Kong diamond market has regained traction as more demand comes from China, although there are concerns about tensions related to new Chinese security laws. Meanwhile, in the US, jewelry retailing is expected to remain subdued as the country experiences social unrest over police brutality and the on-going Covid-19 pandemic.
Polished diamond prices remained stable in May, mainly focusing on online trading. Despite a significant drop since January, the RapNet Diamond Index (RAPI) for 1-carat diamond recorded a 2-per-cent increase in May.
The industry has changed to adapt to new customer shopping behaviors, says the Rapaport report. More jewelry retailers have shifted their focus to online channels, predominantly offering classic models such as solitaire necklaces or tennis bracelets. Marketing strategies are changing to promoting diamonds as a symbol of values and emotional connection, the company says.
Meanwhile, mining companies are also shifting to digital platforms and targeting markets less affected by lockdowns.