We are deep into the holiday season and 2022 is rapidly coming to a close. Although the numbers are not yet in and we don’t know how the diamond market fared, I would like to share with you some of my thoughts on this year and the new one we will soon be welcoming.
All in all, 2022 was a very good year for the diamond industry. I believe that the holiday season will be a good one, even though we have seen a certain weakness in the market in recent months. But we need to remember that we had many months of very high demand for polished stones in all sizes, colors and clarities, and an accompanying rise in polished prices. The weakness in the market towards the end of the year is, I believe, a normal reaction after a boom that has lasted almost two years.
But what can we expect for 2023? While it is clear that the geopolitical situation in Europe does not help the economic situation worldwide, it seems that the markets are stabilizing. I hope to see inflation in the US cool down in the second or third quarter, and with that perhaps a lowering of interest rates. I believe that the US market for diamonds will continue to grow, but at a slower pace than before.
Looking east, I expect that 2023 will be a very good year. The Chinese market will open up and I expect that there will be a boom, just as there was in the US after the pandemic. The Chinese consumers will return, they’ll want to buy and there will likely be huge demand in China for diamond jewelry in the second quarter of the year. There are signs that the Chinese market is already coming back. Hong Kong is opening up and it is usually a sign that China is on the way. Also, when China forges ahead, its neighbors are also affected, so I believe that we can look forward to growth throughout Asia.
On that positive note, I would like to extend to all of you my warmest wishes for a joyful holiday with your family and friends, and a happy, healthy and prosperous New Year.
Regards, Yoram Dvash