At IIJS Visitor Numbers Up, But Loose Diamond Sales Flat

(IDEX Online News) –Today (Sunday) marks the fourth day of the Indian International Jewellery Show (IIJS) at the Bombay Exhibition Center, with loose diamond sales largely flat over the course of the show.

Visitors to IIJS come with very specific and in the opinion of Rikin Shah, assistant vice president of polished sales at Jewelex, too specific ideas of which diamonds they wish to purchase. He explained, as did other diamantaires, that there were regional differences in what interested buyers. Those from the north of India were more attracted by IJK / VS, whereas those from the south bought more E-F / VVS goods.

Anshul Mehta from Rosy Blue said that people were now more knowledgeable because of the Internet and that prospective buyers were “coming to the booths armed with the latest price lists.” If customers bought, they did so at or near the listprice.

Due to the falling price of gold, manufacturers of the precious metal saw a flurry of activity with crowds thronging the stalls all day andhad to replenish their stocks of gold jewelry to cope with the demand.

Jewelry manufacturers also experienced strong interest and sales, although that was not the feeling among loose diamond manufacturers who came to the show with reduced expectations, which seem to have been fulfilled.

Several diamond manufacturing owners and other company representatives including those from Rosy Blue, Laxmi and Blue Star, said that business was a bit down on previous years; volume was reduced, but people were still buying loose diamonds. Many suggested that there is a bearish buyers market in India at the moment, but that manufacturers have to balance the need for customers with trying to maximize their profits.

There was across-the-board agreement that the upcoming festival season (which includes Diwali, Christmas and Chinese NewYear in February), would see a pick-up in diamond sales. Many manufacturers are cautiously optimistic that things will improve in the second half of the year and hoped that the IIJS would prove to be the catalyst for this change.

Diamond manufacturers also expressed some concern over lab-grown or CVD diamonds. Exhibitors spoke about how it was the smaller sizes of stones that were most affected, but all agreed about the need for transparency in the market. Others were less concerned and even suggested that the lab-grown diamond variety could be a healthy opportunity for the industry as a whole.

The issue of liquidity also came up several times in conversations with diamantaires. Some said that it would act as a corrective element to the market, including those who had not over-borrowed from banks and had their own internal liquidity measures. Others said that liquidity was an issue across the industry and was an element that requires close attention.

The watchwords that came out of the fourth day were “discipline” and “stability.” Several diamond manufacturers said that there was still potential in the diamond market, but that it would require a sensible and responsible course being steered for sustained and sustainable growth to return.