Diamond trading through the month of September could go one of two ways according to new data released by The Rapaport Group.

The diamond industry analyst showed that diamond prices were “stable” during the month of August, according to its research.

Its trademarked RapNet Diamond Index showed that diamonds below one carat in size decreased in price slightly, while those above one carat increased by a similarly marginal amount.

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The numbers look much stronger when compared not month-on-month but year-on-year or in a year-to-date side-by-side.

However, the industry will be hoping that the plateauing of prices in August does not signal another downward spiral for diamond prices.

Discussing the landscape in the US, which is not dissimilar to the UK, Rapaport’s press release said: “Diamond trading slowed in early August when dealers in Belgium and Israel took vacations.

“The spread of the Covid-19 Delta variant brought new restrictions and injected some caution into the market.

“Activity picked up during the Las Vegas shows even though visitor traffic and exhibitor numbers were lighter than usual.

“Many major suppliers and buyers did not attend, but those who did reported good business.”

It continued: “High rough prices are squeezing profit margins, though premiums softened on the secondary market during August. De Beers kept its prices unchanged following several hikes in previous months.

“Supply shortages will likely remain an issue at least until then as jewelers and dealers prepare for the holiday season.

“Expectations are rising for the important fourth-quarter selling period, especially since the Las Vegas shows signaled that jewelers need goods.”