September Hong Kong Show sets some optimistic momentum

The September Hong Kong Gem and Jewellery Show 2013 began on a note that showed better than expected results. The show is scheduled across two venues – beginning with the Asia World Expo (AWE) slated between September 11 - 15 and later extending to the Hong Kong Convention and Exhibition Centre between September 13-17. The show at the AWE is featuring raw materials including diamonds, loose gemstones, pearls and equipment and packaging, while the HKCEC houses exhibitors of finished fine jewellery.

So far, there has been good demand for 30 to 90 points in all colors, while diamonds of 2 to 2.5 carats are also moving well. The category of 3 carats up is moving slow.

The prelude to the Fair has been one of economic strain, the Rupee devaluation and the high prices of gold and rough diamonds. Yet, Chinese buyers are showing some interest lending to optimism, although the price factor has been looming over the buying decisions. This year, participation by Indian buyers has been lower than usual. Indian buyers who usually constitute around 30-35 percent of diamond buyers at the show, had dropped less than 10 percent. The weak sentiments have been propelled by the currency fluctuation and increased gold prices which have impacted their sales and buying decisions. Also, Indian diamond manufacturers although have a weak rupee advantage at the show, but owing to liquidity issues they are softening their prices to sell more.

With the rough diamond prices rising since the last 3-5 months, had made replacing the polished goods at same prices little tough for all.

The Israel diamond industry is not moved by the current market situation and is remaining tough on prices, which is interesting to note, as the show preludes the festive season sales. The Israel diamond companies are closed on Friday and Saturday because of Yom Kippur.

Apart from diamonds, the gemstone category seems to be moving well including those of ruby, sapphire, emerald, tourmaline, rubellite, blue topaz.