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Cautious Approach Prevails at IIJS on Friday
Aug 24, 2012 8:21 AM
By Dilipp S. Nag, Avi Krawitz
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RAPAPORT... Visitor traffic improved on the second day of the India International Jewellery Show (IIJS) but price uncertainty continued as buyers have not yet placed orders in a significant way. Suppliers are expecting their busiest days over the weekend, as is traditionally the case at IIJS.
Diamond suppliers and jewelry wholesalers held the following impressions and observations in discussions with Rapaport News on Friday:
• There are continuous inquiries for lower-quality goods in the range of G-, SI-, clean makes.
• Demand for better-clarity VVS stones is weak.
• While Indian buyers are primarily focused on rounds, there is good demand for lower-quality heart shape diamonds, while strong local and international demand for cushions is prompting manufacturers to make more of these stones.
• Buyers remain conservative as they focus on just filling immediate orders without making any large inventory purchases.
• Some feel that buyers could continue holding off purchases until the Hong Kong show, where they may be able to get more affordable goods, despite having to pay India's 2 percent duty on polished diamond imports.
• There is a feeling that De Beers Diamond Trading Company (DTC) may reduce prices at next week’s sight, and that this might prompt a trickle-down affect for polished prices after IIJS.
• Wholesalers are more concerned about the impact of high gold prices are having on their sales as the metal advanced to a new high in rupee terms above INR 31,000 per 10 grams this week, or $1,670.20 per ounce.
• Retailers note a small improvement in consumer demand in the past few weeks as India's festive season already started with Raksha Bandhan in August. Buyers looking for goods in time for Diwali have a little leeway since that festival takes place in November, or a month later than in 2011.
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Tags:
diamonds, Dilipp S. Nag, Avi Krawitz, IIJS, India International Jewellery Show, jewellery, Jewelry, Rapaport
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