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. Jewelers are feeling the pinch, with Tiffany & Co.’s second-quarter earnings and sales coming in below expectations.
Diamond prices softened in August, as the global stock market slump hit discretionary spending and jewelry demand in China thanks to a clampdown on luxury gift-giving and the slowdown in the world’s second-biggest economy.
Prices for benchmark 1-carat (0.2 gram) diamonds fell by 0.9 percent last month, while cheaper 0.30-carat diamonds fell by a 1.7 percent, according to data out on Wednesday from the Rapaport Group, a body supporting the international diamond trade.
“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. Diamond prices hit by stock market slump, China