In the just released Rapaport Research Report entitled "March Madness," average asking prices on RapNet increased 6.6 percent during March 2011. Half caraters were up 7.3 percent, one carats up 7.7 percent and three carats up 6.9 percent. Prices of small, inexpensive diamonds at Rapaport Auctions continued to strengthen during the month.
During the first quarter, average prices rose 11.5 percent, with half caraters up 11.8 percent, one carats up 15.1 percent, and three carats up 11.8 percent. Average prices on RapNet were 17.2 percent above levels seen at the end of March 2010.
Rough prices continued to rise with De Beers Diamond Trading Company (DTC) hiking prices by an estimated average 10 percent. Spot tender prices also continued to increase supported by strong demand from manufacturers and dealers. There is growing concern about speculation as rough inventories are expanding while manufacturing lags, which has resulted in polished shortages.
The devastation caused by the earthquake and tsunami in Japan will have an impact on diamond jewelry sales and diminish the country's global market share. Political risk in the Middle East and financial uncertainties in Europe are expected to increase demand for top quality large goods. At the same time, inflation and a declining dollar may have a negative impact on diamond demand and pricing as governments are expected to raise interest rates to maintain stability.
Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints.
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