Diamond price rises average 16 percent in 2008

"So far during 2008 DTC has seen strong and continuing consumer demand for most categories of polished diamonds, especially in the larger goods,” said Mahiar Borhanjoo, DTC’s executive director of sales and client services.

He stressed that DTC’s pricing decisions are influenced primarily by the demand for polished in the long term.

According to Rapaport Research records,  DTC increased prices by 13.9 percent from January through July, the largest hike came out of the July sight where prices rose between 5 percent and 15 percent. Previous hikes of 6.4 percent were passed-on in April after a 2 percent increase in March.

Rapaport records also show that DTC price hikes this year have far exceeded those of previous growth years of 2003, 2004, and 2005 when prices rose an average 12.5 percent, 13.6 percent, and 8.2 percent respectively. Prices subsequently fell in 2006 and the start of 2007 after the market could not sustain those price levels and sightholders started sending goods back.

DTC prices are currently more than 70 percent higher than they were in 2000.

The sight this week is DTC’s seventh of the year out of 10 scheduled, and Tuesday’s announcement was the final cumulative price notification planned.

The company adopted policy this year to inform the public of its cumulative price adjustments at three points during the year: Before the JCK Las Vegas show in May, the Hong Kong show in September, and at its annual review around February.