Morning Bites (part 1)

💍China’s jewellery and watch retail sales jumped 18% YoY in August, reversing from the 12% YoY drop in July. However, according to Rapaport, China’s demand for diamond jewellery remains soft, as shoppers switched to buying gold, given the lack of purchasing power amid concerns over local economic growth. At the same time, China’s jewellery sales hit historical highs last month (+6% vs. August 2021), which might be a favourable cross-read for local diamond demand in the long term, were this trend to persist

We reiterate our view that the solid sales recovery in the world's key US downstream market (~53% of global retail gem-set jewellery trade) could accelerate the ongoing destocking in 2H24, supporting sentiment in the stressed diamond market

#diamonds 
https://metals-wire.com/sector/Diamonds