prices for certified diamonds fell, while the volume of trade was noticeably lower than usual at this time of year, Rapaport reported.
The US holds a dominant position among consumers of diamonds on the eve of the Christmas season.
Indian demand for diamonds on the eve of the Diwali holiday was rather weak, and demand in China declined after the Golden Week, which was celebrated from October 1. The turnover of diamonds differed depending on the category, in particular, the demand for stones of 0.3-0.5 carats of commercial quality (HK color, SI-I1 purity) was quite stable.
The price index RapNet Diamond Index (RAPI ™) for diamonds weighing 1 carat in October fell by 1.7%. RAPI for diamonds weighing 0.30 carats increased by 0.4%, and diamonds weighing 0.50 carats went up by 0.2%. With respect to diamonds weighing 3 carats, the index fell by 0.7%.
The monthly Rapaport report for October 2013, titled "Price Uncertainty," notes that diamond prices fell in October due to weakening global demand and limiting liquidity in the market.
American retailers are dragging out with purchases for the holiday season amid continued uncertainty about prices and consumer sentiment.
The October deadlock around the increase in the debt ceiling forced retailers to lower their forecasts for the Christmas season.
Indian diamond traders faced uncertainty just before the Diwali holiday, which began on November 1 - reports of the government's intention to increase the duty on polished imports from 2% to 5% were reported on the market.
The first responses from retailers since the commencement of Diwali celebrations indicate a decline in demand for gold and diamond jewelry. The Indian polished diamond sector continues to suffer from a lack of liquidity caused by a low margin of profit and high commodity prices amid weakening domestic demand throughout 2013.