Hazoorilal celebrates its partnership with Forevermark

Premier jewellery house Hazoorilal celebrated the launch of the Forevermark brand in their flagship store in New Delhi

Post By : IJ News Service On 09 April 2011 6:43 PM
Mumbai:
Activity in the diamond market remains relatively a low-key affair for the ensuing Christmas season, when September is already half-way through. In the past overseas buyers used to arrive in India by mid-July to make on the spot selection for the busy season ahead. That trend has undergone a considerable change. Very few overseas buyers except some from Israel are seen in the market at present. Of course their number is expected to grow now.
Business Pattern Changing:
The reasons are not far to seek. One, most leading manufacturers have set up their own offices in the leading centres like New York, Antwerp, Hong Kong, Tokyo etc. Foreign buyers are thus able to make purchases from them without coming to Mumbai. Secondly, retailers in some important markets like the USA are nursing substantial unsold stocks for want of sufficient actual offtake by the consumers. It may be worth recalling that during the last Christmas season most stockists abroad were able to effect substantial sales, by offering discounts and other inducements. Therefore they started replenishing their inventories almost right from the start of 2005. Likewise, retailers also filled up their showcases. However, the actual offtake by the consumers particularly in the most important market for diamond jewellery, viz. the USA, has not picked up so far as they have been keeping on the sidelines so far. This is because the US economy is facing uncertainty and the US consumer is not sure of retaining his job. Already the number of jobless in the US remains high. Thus the demand for diamond jewellery in the US which accounts for nearly half of its global consumption remains sluggish. This continues to cause concern to exporters.
Defaults & Delays Cause Difficulties
To add to their concern, there have been reports of defaults abroad in the past few months. This has adversely affected business sentiment. Even when sales are made, payments are delayed beyond the credit period. Quite a few small and medium scale diamond manufacturers who are unable to receive payments from their customers even after the credit period is over, have to face problems in meeting their own liabilities. This explains why several of them are driven to the wall during the recent months. All such developments have considerably shaken business sentiment at present.
Increased Attention to Stock-markets:
As the overall business has slowed down, many diamond manufacturers and dealers as well as brokers are paying these days, equal or even more attention to the buoyant stock markets where even some third and fourth grade shares have risen amazingly, particularly in view of excessive global liquidity and diversion of such funds by overseas financial institutions and hedge-funds to the emerging markets including India.
Europe, Hong Kong, Japan Better:
The markets for diamonds in Europe and Hong Kong remain good. The offtake by Japan has also improved. The internal market in India remains quite good.
Hurricane- Hit USA in Doldrums:
However the sluggish US market continues to adversely affect business sentiment. The recent Katrina hurricane in the USA has left traders wondering when the US demand for the Christmas season will pick up.
Huge Sight - Softer Prices:
In view of the all-time large last DTC Sight prices for rough diamonds have softened by about 3 per cent in the first half of September. Earlier rough prices had risen by about 10 per cent in the last three months and by about 20-25 per cent over the past one year. Manufacturers who were worried on account of this sharp rise in prices, naturally heaved a sigh of relief though the reduction in prices is not very significant. The sense of relief experienced by them, however stems from their assumption that there might not be any further rise in rough prices for some time now.
Moscow Visit Draws a Blank:
A delegation sponsored by the Gem & Jewellery Export Promotion Council (GJEPC) which proceeded to Moscow, around mid-August, apparently to procure some rough diamonds has returned without making any purchases. While no official explanation is available for this, some sources feel that Moscow is now more interested in effecting sales of its rough stones through the tender system, which fetches maximum prices.
Problem of Small Manufacturers:
While DTC Sightholders as well as those who have access to direct sources of supply of rough are quite comfortable as they are able to get such supplies at somewhat lower than international prices, others who are forced to turn to uncertain open markets for their requirements always have to pay higher prices for their raw material, while they are unsure about getting corresponding higher prices for polished goods. No solution to their problem is in sight.
Gold Jewellery Downturn:
Shipments of global jewellery during the period are down by 3.69 per cent at US$ 1,442.14 million compared with US$ 1,185.84 million for the same period a year ago.
Bharat Diamond Bourse Starts Allotments:
The Bharat Diamond Bourse is preparing to hand over possessions to about 52 allottees of office space of over 3000 sq. ft. Though who have been allotted office space ranging between 1000 sq. ft. - 3000 sq. ft. may be given possession of there offices about two months later. This is intended to enable them to start flooring, tiling, wiring and interior decoration according to their own likings .
Diamonds Exports Up:
Actual shipments of cut and polished diamonds from the country in the first five months (April-August) of 2005-06 have according to provisional figures available now, risen by 21.39 per cent to US$ 5,017.47 million, compared with US$ 4,133.33 million in the same period of the earlier year.
Bullion Buoyant:
The market for bullion has turned buoyant abroad in view weak dollar and rising oil prices. The domestic market is closely following this trend. The yellow metal was placed abroad around US$ 448.50 per ounce and silver around US$ 7.01 per oz. on September 13, 2005. In the domestic market, standard gold was priced at Rs. 6,435 per 10 grammes and silver at Rs. 10,715 per kg. on that day. The undertone seemed firm.
Main Trends:
{[Business Pattern Changing ][Defaults & Delays Cause Difficulties ][Increased Attention to Stock-markets ][Europe, Hong Kong, Japan Better ][Hurricane- hit USA in Doldrums ][Huge Sight - Softer Prices A ][Moscow Visit Draws a Blank ][Problem of Small Manufacturers ][Gold Jewellery Downturn ][Bharat Diamond Bourse Starts Allotments ][Diamonds Exports Up ][Bullion Buoyant]}

Be the first to comment

Leave a comment

Email Alerts

WhatsApp Alerts