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GJEPC Rejects Reports of Widespread Diamond Inventory Discounting
Oct 12, 2014 3:42 AM
By GJEPC
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Press Release: News articles stating that diamantaires are offering discounts of between 5 percent to 20 percent are not only false but baseless, as reports lack understanding of the functional guidelines of bank’s trade with the diamond industry.
The closure of Antwerp Diamond Bank (ADB) does not have any immediate, direct impact on the trade neither has it created an overnight liquidity crunch as stated in news reports. Any international bank that plans to close still provides adequate time for their clients to repay loans and does not demand an overnight settlement. In the case of ADB, it provides a minimum period of one year to their clients in India and similar if not more time to clients in Antwerp and other centers, which is adequate for the trade and gives no reason to create havoc.
For the diamond jewelry industry, the mood is upbeat with the coming festive season, with sales progressing as the season approaches. The industry witnesses its largest sales during the period of October through December for Diwali, the wedding season and the Thanksgiving and Christmas period. India consumes diamonds worth $2 billion annually and exported cut and polished diamonds worth $19.635 billion in fiscal 2014. With U.S. markets on the rebound and European markets steady after some turbulent times, in no circumstances has the trade offered a discount of even 5 percent to 10 percent and neither is a discount expected in near future.
“The long term fundamentals of the diamond industry remain strong and robust as there are no new major (rough) finds, and the sale of diamonds are growing in emerging markets of China and India. The rough diamond prices by De Beers have gone up by 3 percent to 5 percent, while the Russian goods have witnessed an increase of 2 percent to 5 percent in the recent past. This only adds up to the diamond and diamond jewelry prices, due to which they witness an upward trend in the coming festive season and in the future,” said GJEPC's chairman, Vipul Shah.
India is the largest consumer of gold and is emerging as the largest consumer
of diamonds globally. Both domestic and global markets show a positive sign in
the coming festive, wedding and Thanksgiving season. Diamond traders in India
are upbeat and look forward to robust business in this quarter.
About GJEPC
Set up in 1966, the GJEPC has, over the years, effectively molded the scattered efforts of individual exporters to make the gem and jewelry sector a powerful engine that is driving India's export-led growth. This apex body of the gem and jewelry industry has played a significant role in the evolution of the Indian gem and jewelry industry to its present state. GJEPC is continuously working toward creating a pool of artisans and designers trained to international standards so as to consolidate the Indian jewelry industry and establish it as a prominent global player in the jewelry segment.
With strength of 5,200 members across the country, the council is primarily involved in introducing Indian gem and jewelry products to the international market and promotes their exports. To achieve this, the council provides market information to its members regarding foreign trade inquiries, trade and tariff regulations, rates of import duties and information about jewelry fairs and exhibitions. www.gjepc.org
Rapaport News is not responsible for, and does not endorse, the content of any third-party press release. This is not a Rapaport Press Release. It has been provided as additional information for our clients.
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GJEPC
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