2017 is already here, alive and kicking, and it’s high time to see how diamond and jewelry stocks performed on 2016 – not an easy year for the global diamond industry. In a piece dedicated to the subject, Rapaport News analyses the performance of diamond, jewelry and diamond mining stocks, coming to one encouraging conclusion: the last two months of the year enabled these markets to shine, brining jewelry and diamond mining stocks to gain in 2016.
According to the piece, these stocks’ strong performance “mirrored the Dow Jones Industrial Average, which leapt 13% for the year”.
In the US, jewelry-related stocks rose as consumer confidence improved toward the end of the year. The Birks Group, Sotheby’s and J.C. Penney showed the biggest gains among the retailers, and shares of Blue Nile were lifted. According to the piece, “Signet Jewelers bucked the trend, as its shares plummeted after allegations of diamond swapping surfaced in May”.
Far East jewelry stocks outperformed the local market with double-digit increases for the year, including Hong Kong-based Chow Tai Fook, Chow Sang Sang and Luk Fook.
European retail, however, was mixed “amid political upheaval, the negative impact of terror threats and weaker demand for Swiss watches”. According to Rapaport, “shares in Damiani, Richemont and Swatch Group declined, while those in LVMH Moët Hennessy Louis Vuitton and Kering gained”.
Shareholders in India, however, “saw little positivity as the government’s demonetization policy damaged liquidity, sending most gem and jewelry stocks tumbling”.
As for the mining sector, it was “arguably the biggest winner in 2016, as sales rose significantly amid a recovery in rough demand”. Alrosa, Lucara Diamond Corp, Petra, Mountain Province, Stornoway Diamond and Firestone Diamonds all did well, both in production volume and attracting investors.