Diamond market seasonally slow. US and China retail recovery driving demand. Multi-channel offerings stimulating growth as consumers return to stores. Polished inventory declining due to India supply constraints. Shortages supporting prices. Rough market stable after smaller De Beers May sight valued at $380M. Alrosa 1Q revenue +44% to $1.2B, profit up nearly eightfold to $326M. Hong Kong 1Q polished imports +47% to $3.4B, polished exports +56% to $3.3B. GIA notes rise in lab-grown stones with counterfeit inscriptions passing as natural. Chow Tai Fook and Natural Diamond Council launch campaign to reach young Chinese consumers.
Fancies: Market robust. Upturn in prices for 0.30 to 0.99 ct. goods of various shapes. Oversizes trading at higher prices than usual. Shortages of 1.25 to 3.99 ct., F-J, VVS2-SI2 fancies. Retailers offering wider product ranges as consumers seek alternative shapes at more affordable prices than
US Retail Sales Sluggish Without Stimulus Spark
RAPAPORT. US retail sales were flat in April as consumer spending slowed following stimulus-driven purchasing the previous month, the National Retail Federation (NRF) said.
Revenue was unchanged over March’s figure and rose 51% year on year, reflecting coronavirus-related store closures during April 2020, according to data the US Census Bureau reported last week. By contrast, March saw a 10% month-on-month increase.
“In March, we saw a surge in spending as stimulus checks came in, and that spending declined slightly in April,” said NRF CEO Matthew Shay.
Sales fell versus the previous month in six of the nine categories the US Census Bureau monitors. The clothing and accessories segment which includes jewelry dropped 5%, while online sales slipped 1%.
Macy’s Says Jewelry Attracting Younger Customers
RAPAPORT. Jewelry was one of the top-selling categories at Macy’s during the first fiscal quarter amid an influx of new, younger customers seeking luxury products.
“We had very strong results with new customers,” Macy’s CEO Jeff Gennette said Wednesday in an earnings call transcribed by Seeking Alpha. “Fragrances, women’s shoes, big ticket, fine jewelry [and] men’s clothing are all kind of on-ramp categories for us that a lot of these younger customers transact with us on. These new customers are spending at much better rates than they have in the past.”
8ct. Diamond Ring Beats Estimate at Bonhams
RAPAPORT. An 8.21-carat diamond ring was the top seller at the Bonhams New York Jewels sale, garnering $500,313, nearly double its high estimate.
The piece, set with an oval-shaped modified brilliant-cut, D-color, VS1-clarity diamond, was designed in 1910. It was the star of the May 19 auction, which brought in a total of $3.7 million, Bonhams said Wednesday.
“[The ring] was the final lot in today’s sale and the excitement in the room was palpable as several eager phone bidders could not let this important piece go,” said Caroline Morrissey, head of jewels for Bonhams New York.
Lab Spots Synthetic Ruby Necklace Sold as Natural
RAPAPORT. GGTL Laboratories has identified a necklace containing 50 large synthetic rubies, which a client submitted after being told the stones were natural.
The buyer sent the piece to the Liechtenstein-based lab with a request to identify the country of origin, as well as any treatments to the stones, GGTL said last week. The rubies appeared to be of high quality, with a deep, saturated color, but contained fingerprints and clouds, as well as other small, atypical inclusions.
“At first glance under the microscope, we noted that most of the stones resembled what one would normally call heat-treated, with some glassy residues, but that none of the inclusion scenarios gave away any possible country of origin, something highly unusual when an experienced analyst observes such stones,” GGTL noted. “This fact led immediately to the suspicion that the rubies were flux-grown synthetics.”