How quickly things can change. Just a few short months ago we were celebrating a record year and a terrific fourth quarter. Now there is a lot more uncertainty around, diamond prices are off their peak and the US is potentially heading into recession.
It remains a very interesting time in the diamond industry. Having seen many years of fairly stable prices before COVID we are now seeing volatility that we haven’t seen for a long time. Prices rose substantially over the course of the last year and as in any rising price environment, this creates a natural decline in demand, at least in carat terms, as consumers adjust their desires to their budgets.
The macro environment is also very uncertain with geo-politics in play and local politics around the world affecting our industry in uncertain ways. It is likely that these effects will be in-play for a long time, measured over years, so we will have to get used to navigating the uncertainty it comes with.
Recycled diamonds are more important than ever, both as an important source of diamond supply, that can potentially satiate some demand during these supply shocks and also environmentally as the country and world look to preserve the resources of our planet.
We hope that you enjoy the Q1, 2022 Quarterly Market Report and remember to get in touch with us if you would like to discuss any aspect of the industry.
The Q4, 2021 report. View here.
The Q3, 2021 report. View here.