Market Trends & Commodity Prices - Average ticket price increased by 15%, driven by a 50% rise in underlying commodity costs over the last year [1] - Silver and platinum prices have increased by 70% in the last year [1] - Natural diamond prices are down roughly 45% from their peak in March 2022 [7] - Gold has appreciated by 11% per annum over the last ten years [3] Lab-Grown Diamonds - Lab-grown diamonds are driving down the price of natural diamonds [2][6] - Approximately 60% of engagement rings sold in the U S this quarter will have a lab-grown center, compared to 2% in 2018 [8] - Industry anticipates 80% adoption of lab-grown diamonds in the next ten years [9] - On the diamond side, 60% plus is lab-grown, 40% is natural [10] Consumer Behavior & Sales - Jewelry industry is up over 10% this year, outperforming other luxury categories [13] - Current sales are up over 30% [12] - 75% of colored gemstone sales are natural, while 25% are lab-grown [10] - Customers prefer perfect diamonds but unique imperfections in colored gemstones [11] Gold Market Dynamics - Central banks are buying roughly 25% of the gold that's out there [5] - Financial investors are a significant part of the gold market [5] - Political and economic uncertainty are driving demand for gold [3]

Federal Reserve and Economic Outlook - Markets are anticipating a 25 basis point cut in interest rates at the upcoming Federal Reserve meeting, although there are divisions among Fed officials regarding future policy direction [4][6][15] - The labor market shows signs of softening, with job openings increasing but hiring rates declining, leading to uncertainty about the economic outlook [5][9][22] - Analysts suggest that the Fed may need to adopt a more restrictive monetary policy to manage inflation effectively, which is currently above the 2% target [7][24][29] Chinese Economic Indicators - Chinese consumer prices rose by 0.7% year-on-year, marking the highest increase in nearly two years, driven by higher food prices and government stimulus [38][39] - Despite rising consumer prices, factory gate prices have been in deflation for 38 consecutive months, indicating ongoing challenges in the manufacturing sector [41][42] - The mixed inflation data reflects the complexities of China's economic recovery and the impact of government policies aimed at combating deflation [41][42] Market Reactions and Future Expectations - U.S. markets showed mixed performance ahead of the Fed's decision, with the Dow down by 0.4% and the NASDAQ gaining 0.1% [10][11] - European futures are cautious, reflecting uncertainty surrounding the Fed's upcoming rate decision, with major indices showing slight declines [13][14] - Analysts predict a rotation in market performance towards sectors that have underperformed, suggesting potential investment opportunities in the near future [8][10]

Diamond Market Segmentation - The market distinguishes between natural and lab-grown diamonds, with demand for both [1] - Natural diamonds are favored above $5,000, appealing to customers seeking asset value [2] - Lab-grown diamonds dominate below $2,000, focusing on emotional value, particularly in engagement rings [2] Lab-Grown Diamonds Strategy - Lab-grown diamonds are crucial for extending the fashion jewelry category [3] - Lab-grown diamonds make diamond fashion jewelry more affordable and accessible for everyday wear [3] Growth Strategy - Fashion jewelry is critical to the company's growth strategy [3]