Is it time to splash on some investment jewelery? The answer may be yes if you fancy a diamond ring, with prices for the gemstone down as much as 29 percent since last year.
This year, jewelry investors may be less lucky, with precious metals prices falling across the board as part of a broad-based decline in commodities. Spot gold prices have fallen 11 percent over the last 12 months, while the price of silver is down a sharp 24 percent and platinum is down 29 percent.
“Polished diamond prices continued to slide in August. Fewer dealers bought inventory and those with money waited for lower prices. A slump in global stock markets further dampened sentiment as the outlook for luxury spending diminished along with shareholder wealth,” said Rapaport in its monthly report.
Jewelers are feeling the pinch, with Tiffany & Co.’s second-quarter earnings and sales coming in below expectations.
Meanwhile, De Beers, the world-leading diamond producer, posted revenue of $3.0 billion for the first six months of 2015, down 21 percent from the $3.8 billion posted in the same period a year before.