The latest market situation of Indian jewelry
By www.jewellerynetasia.com
The Diwali vacation of at least 15 to 20 days has begun in world’s biggest diamond cutting & polishing centre in Surat. Activities of over 4,00,000 people including traders and artisans who represent at least 4000 diamond cutting and polishing units here have come to a stand still for the Festival of Lights in India. Industry sources say that the units will resume activities well before the buying season of Christmas to complete the pending orders. Demand from Asian countries like Japan, China jewelry and India is said to be increasing.
Although slow market conditions world-wide have more or less adversely affected markets here also but success of Hong Kong International Jewellery Show has boosted morals of Indian diamantaires. Now they have set their eyes on the upcoming international events like a Jewellery and Gem Show in Mumbai by UBM in December 2011 and India International Jewellery Show Signature in February 2012. Traders and dealers in colour gemstones are also expecting some great outcome from the world’s first-ever ‘Mines to Markets’ Conference of colour gemstones being organized in Jaipur (India) in November 2011 by Gem & Jewellery Export Promotion Council (GJEPC).
All these International gem & jewellery events are expected to put the dull markets in a vibrant condition. Rough and polished diamond prices, after seeing a drop of 15 per cent and 8 per cent respectively in September have now become steady.
On the other hand, in spite of the beginning of festive season, local jewellery demand in India’s markets is not as encouraging as it was last year due to the high gold prices. Normally Diwali is considered to be an auspicious to buy the gold and gold jewellery, consumers this year have become watchful and cautious by adopting ‘wait and watch’ approach.
Industry experts here say that gold demand this year is likely to be moderate as India’s middle-class people are already under heavy pressure to adjust their budget due to high inflation and rising food and fuel prices. Along with rising costs, Indian consumers have become price conscious and are now looking to buy gold when price falls instead of buying it during a religious festival or wedding. As a result, jewellery showrooms here have wore a deserted look by remaining half-empty even during this festive season.
While International gold prices had at one stage reached a record $1,920 per ounce in September but since then they have slipped now and have still remained up 15 percent from the level of early 2011. Gold, whose key drivers are investment and jewellery, is widely considered as a safe haven in difficult times, but experts say a combination of factors is keeping demand weak.
Indian consumers have bought 540 tonnes of gold in the first half of the year 2011 which is up by 21% in compare with the same period last year, according to data provided by the World Gold Council (WGC). But buying has been slow since then, even though prices have fallen, with some buyers adopting ‘wait & watch’ approach in expectation of further drops in gold price.
