The Weekly World Market Watch

United States: Traders are growing in confidence as prices have edged up, although they are hoping for additional increases. Most are still concerned about the economic recovery and that sustained high unemployment will further impact the jewelry market. There is good demand for 0.50-carat, SI goods, while demand for 1.00-carat goods in all categories continues to be strong. High-quality fancy shapes, mainly princess and cushions, are in demand. Retail sales continue to be dominated by bridal goods, with the engagement ring market maintaining a strong level of sales.

Belgium: Trading is stable but quiet, with much of the focus having shifted to Hong Kong in the past week. There were positive reports from the Hong Kong show, though there is some resistance from buyers toward sellers’ asking prices. There is a shortage of certain items, particularly 0.60- to 0.80-carat and 1.50-carat goods, and sales of 0.30- to 0.70-carat goods have slowed. There are also significant supply shortages in the nicer VG+ goods and especially in Triple-EX goods, while demand for larger goods above 3.00 carats has improved.

Israel: Trading quieted in Ramat Gan as is often the case during this time of year. Dealers and manufacturers who went to the Hong Kong show were satisfied with the event, but did not report extraordinary activity there. Some stayed longer to try to make additional sales. There is some expectation of a last-minute push to sell goods before the summer break in August. Overall demand for goods is stable, while demand for 1.50-carat stones has improved. Demand for pointer sizes of 50- to 70-carat stones has slowed in the past week.

India: Activity slowed slightly in polished and rough trading, with reports that prices at the BHP Billiton tender declined, resulting in more buyer resistance to sellers’ asking prices. Many buyers are expecting some correction to balance the high prices observed in the market, while continued instability in the dollar-rupee exchange rate is also contributing to their caution. There remains strong demand for 0.02-carat, J+, SI-pique good, while melee, J+, SI-pique is also a hot category. There is good demand for 1.00-carat goods in all categories, with severe shortages reported in pique goods.

China: The retail and wholesale markets are stable, although trading is subdued, as expected for this time of year. The mood has dropped slightly among retailers, particularly in the south of the country, where rainy weather is keeping consumers away. There is good demand for 0.30- to 1.10-carat, D-J, VVS-SI, GIA-certified and preferably EX-cut stones, while demand is stable for parcel goods in 0.20- to 0.30- carat, H-J, VS-SI categories.

Hong Kong: The market improved in the past week, with the influx of buyers for the June Hong Kong Jewellery & Gem Fair 2010. Buyers at the show eased their resistance to sellers’ asking prices, but there remains a notable gap between the two and there is still a price lag evident between the buying and cutting centers. There was good demand for high-color SI goods at the show and medium- to high-color, VS-SI stones. There is good demand for high-end goods.